r BEFORE THE CORPORATION COMMISSION OF THE STATE OF OKLAHOM A APPLICANT : PENN VIRGINIA MC ENERGY, LLC CAUSE CD 200804482- T RELIEF SOUGHT : WELL LOCATION EXCEPTIO N LEGAL DESCRIPTION : SECTION 8, TOWNSHIP 16 NORTH, RANGE 3 WEST, LOGAN COUNTY, OKLAHOMA 558250 ORDER NO . FI NDINGS AND INTERIM ORDER Hearing Dat e an d Pl a ce : 1 . Eastern Regional Ser v ice O ff ice of Oklahoma . 8 : 30 a .m ., 15t h day of Ju ly, 2008 , t he Co rp oration Commiss i on , Tuls a, 2 . Appea r anc e s : Mi c hae l D . St a c k, A t t orne y fo r Pe nn V irgin i a M C Energy , L LC ; and Sal ly Sh ip ley, Dep ut y Gen er a l Counse l fo r Co n servation for the Comm i ssion , fi l ed n otice o f a pp ea r a n c e . 3 . Notice a nd Ju ri s di ctio n : N o t ic e h as b e e n g i v e n as r equ i r ed a nd T h e te s ti m o ny the Commission has j urisd ic ti o n o f t he s u bj e ct and p er so ns . presented established that the Applicant owned the right to drill in the captioned unit . 4 . Amendm ent : N one . Applicant requests that a well be permitted 5 . Relief Requested : in Section 8, Township 16 North, Range 3 West, Logan County, Oklahoma . 6. Relief Gra nted : The request e d re lief i s granted, P en n Vi r ginia r ati n g , L L C , is designa t e d op erat or of t he we ll a u th o r i zed b y this MC Ope The well to be located as follows : order . Surface Location : Entry Point to each common source o f supply : Bottom Hole Loc terminus point : no closer than 1320 feet to the south line and no closer than 330 feet to the west line of Section 8 ; no closer than 1320 feet to the south line and no closer than 330 feet to the west line of Section 8 ; No closer than 1320 feet to the south line, no closer than 330 feet to the west line and no closer than 330 feet to the east line of Section 8, Township 16 North, Range 3 West, Logan County, Oklahoma . 7. T h e wel l wi l l be f o r t he 6 4 0 -a c re unit in the cap t i o n, and f o r the follo w ing commo n s o u rc es o f s u pply : Common Source of Supply Order No . Cottage Grove, Layton, Checkerboard, 55758 1 Skinner, Mississippian and Woodfor d 8 . Reason for Relief : The well should be located at the location set out in Paragraph 6 above for the following reason : A) To allow for a longer lateral i n th e W oodford common sou r c e of supply . The witness testified this h o r i z o ntal late r a l co uld b e as long as 4 00 0 fee t and the l o ng e r the l ate r al t he b ett e r op p o r tunit y t h e we l l h as t o p r o du ce hydroc arb ons . Repo r ts : Oper a t or wil l be r e sp o nsi bl e f o r fi lin g 9. Reports requi r ed by th e R ul es o f th e Co rpo r a ti o n Comm is s i o n . al l the PENN VIRGINIA MC ENERGY , CAUSE CD NO . 200804482-T PAGE 2 LLC 10 . Allowable : T he allo w able fo r t he w ell shall be 10 0 % of th e regularly assigned al l o w abl e for the common sources o f s uppl y, i f the w el l is drilled at the locatio n defined in t h is order . 11 . Comp anion Cause : N o ne . 12 . T h at the we ll location e x ce p tio n, in accor da nce w it h t he foregoing , is n ecess a ry t o p r event w as t e a n d to p ro te c t co r r e lat i ve ri g ht s and the operator sha l l d rill , co mp let e an d p r o du c e t he w ell as set o ut herein and IT IS SO O RDERED . 13 . The Operator must commenced operations within one year from the date of this order and then continue to diligently operate the well covered hereby in a reasonably prudent manner and within the rules of the Commission, or this order shall be of no force and effect . The cause to be reopened at 8 : 30 a . m ., on the 19th day of August , 2008 , Eastern Regional Service Office of the Corporation Commission , 440 South Houston, Room 114 , Tulsa , Oklahoma , for the presentation of a directional survey . C P T ON OMMISS ON OF OKLAHOMA j,CLbfJ D, _ CHAI J N j Y, VICE CHAIRMAN 1 ~1411~z M ROTH, COMMISSIONE R DONE AND PERFORMED THIS ~ 2 ES Y OF AUGUST, 2008 . : P GGY tjV I LL, SECRETARY OF THE COMMISSION REPORT OF THE ADMINISTRATIVE LAW JUDG E The foregoing findings and order are the report and recommendations of the Administrative Law Judge . Approved : L0e Ka y McKeown, Administrative Law Judg e ~• Technical ~ ~ Date F Date // 7 /aE
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