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IN THE STATE OIL AND GAS BOARD OF MISSISSIPPI
FILED FOR RECORD
NOV 15 1999 RE: PETITION OF COHO RESOURCES, INC.
TO AMEND THE SPECIAL FIELD RULES S$5LSLL«ftBP f.(« FOR THE LAUREL FIELD, JONES WALTER B00NE'SUPE COUNTY, MISSISSIPPI
DOCKET NO. 219-99-139
ORDER NO.
ORDER
This matter came on for hearing before the State Oil and Gas Board of Mississippi
on the 20th day of October, 1999, on the Petition of Coho Resources, Inc. to amend the
Special Field Rules for the Laurel Field, Jones County, Mississippi, to authorize the
Operator of the Laurel Rodessa Field Unit, Rodessa Sand Oil Pool, Laurel Field, Jones
County, Mississippi, to implement tertiary enhanced oil recovery methods within the
unitized intervals of said fieldwide unit, including but not limited to microbial enhanced oil
recovery methods, and for related relief, said hearing being called for such purpose; and
WHEREAS, the Board finds that due, proper and legal notice of the meeting of the
Mississippi State Oil and Gas Board for the purpose of considering and taking action with
respect to such matter was given in the manner and way provided by law and the Rules
and Regulations of this Board; that due, legal and sufficient Proofs of Publication are on
file with the Board in said matter; and that the Board has full jurisdiction of the subject-
matter to hear and determine same; and
WHEREAS, pursuant to said notice a public hearing was held by the said Board in
the Hearing Room of the Mississippi State Oil and Gas Board located at 500 Greymont
Avenue, Suite E, Jackson, Mississippi, commencing at 9:30 o'clock, A. M. on October 20,
1999, at which hearing all persons present who desired to be heard in said matter were
heard and all testimony and documentary evidence duly considered by those present at
said meeting; and
WHEREAS, the Board having considered the Petition and the evidence, and being
fully advised in the premises, is of the opinion and finds that the relief requested by the
Petitioner should be and the same is hereby granted. The Board further finds and
determines as follows:
1.
The Board finds that the Mississippi State Oil and Gas Board has previously
approved the establishment of Special Field Rules for the Laurel Field, Jones County,
Mississippi. Those Special Field Rules establish the geographic limits of the Laurel Field
and define various oil and gas pools within the field and prescribe spacing requirements
applicable to wells drilled and completed in said pools. Those Special Field Rules were
last amended by the Mississippi State Oil and Gas Board on January 21,1998 (Order No.
12-98, Docket No. 1-98-139).
2.
The Board finds that on March 16,1994 (Order No. 86-94, Docket No. 61-94-139),
the Mississippi State Oil and Gas Board approved the establishment and formation of the
Laurel Rodessa Field Unit. Rodessa Sand Oil Pool. Laurel Field. Jones County.
Mississippi. The Laurel Rodessa Field Unit is a compulsory fieldwide unit for the Rodessa
Sand Oil Pool underlying twenty-four (24) separate drilling and production units and/or
tracts of land within the Laurel Field comprising 626.75 acres, more or less.
3.
The Board finds that the Laurel Rodessa Field Unit (the "Unit Area") is comprised
of the following described lands within the Laurel Field, Jones County, Mississippi,
underlain by unitized intervals of the Rodessa Sand Oil Pool, to-wit:
Township 9 North. Range 11 West
Section 31: SW 1/4 of NE 1/4 of SW 1/4 and
S 1/2 of SE 1/4 of NE 1/4 of SW 1/4;
E 1/2 of SE 1/4 of NW 1/4 of SW 1/4 and
SW 1/4 of SE 1/4 of NW 1/4 of SW 1/4;
SW1/4ofSW1/4;
SE1/4ofSW1/4;
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W 1/2 of SW 1/4 of SW 1/4 of SE 1/4.
Township 8 North. Range 11 West
Section 6: W 1/2 of W 1/2 of NW 1/4 of NE 1/4;
NE1/4ofNW1/4;
NW1/4ofNW1/4;
SW1/4ofNW1/4;
SE1/4ofNW1/4;
W 1/2 of NW 1/4 of SW 1/4 of NE 1/4;
NE1/4ofSW1/4;
NW1/4ofSW1/4;
N 1/2 of N 1/2 of SW 1/4 of SW 1/4 and
S 1/2 of NW 1/4 of SW 1/4 of SW 1/4 and
NW 1/4 of SW 1/4 of SW 1/4 of SW 1/4 and
W 1/2 of SW 1/4 of SW 1/4 of SW 1/4 of SW 1/4.
Township 8 North. Range 12 West
Section 1: SE 1 /4 of SE 114;
N 1/2 of SW 1/4 of SE 1/4 and
SE1/4ofSW1/4ofSE1/4;
NE 1/4 of NE 1/4 of SE 1/4 of SW 1/4;
NE1/4ofSE1/4;
E1/2ofNW1/4ofSE1/4and
SW 1/4 of NW 1/4 of SE 1/4 and
E 1 /2 of NW 1 /4 of NW 1/4 of SE 1/4 and
SW 1/4 of NW 1/4 of NW 1/4 of SE 1/4;
E 1/2 of SE 1/4 of NE 1/4 of SW 1/4;
SE1/4ofNE1/4;
E 1/2 of SE 1/4 of SW 1/4 of NE 1/4 and
SW 1/4 of SE 1/4 of SW 1/4 of NE 1/4;
E 1/2 of NE 1/4 of NE 1/4 and
SW 1/4 of NE 1/4 of NE 1/4 and
E 1/2 of NW 1/4 of NE 1/4 of NE 1/4.
Tnwnship 9 North Range 12 West
Section 36: All that part of the SE 1 /4 of SE 1/4 of SE 1/4 lying South of Railroad Right-of-
Way
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All the above described lands situated in the Second Judicial District,
Jones County, Mississippi.
4.
The Board finds that the unitized Rodessa Sand Oil Pool (the "Unitized Formation")
underlying the Laurel Rodessa Field Unit is defined as follows:
Unitized Formation is the subsurface portion of the Unit Area
described as those strata of the Rodessa Sand Oil Pool
productive of Unitized Substances in the interval between the
measured depths of 11,947 feet to 12,450 feet as indicated on
the Dual Induction Focus Log of the Coho Resources, Inc.
(formerly Mosbacher Energy Company) - City of Laurel 6-13
Well located in Section 6, Township 8 North, Range 11 West,
Second Judicial District, Jones County, Mississippi, and
including those strata productive of Unitized Substances which
can be correlated with and/or in communication therewith. The
Unitized Formation for the Laurel Rodessa Field Unit is
correlative to and within the defined interval for the Rodessa
Sand Oil Pool in the Laurel Field as stated in the Special Field
Rules for the Laurel Field.
5.
The Board finds that the Petitioner is the duly designated Operator of the Laurel
Rodessa Field Unit and is authorized to carry out and to conduct unit operations within the
unitized intervals of the Rodessa Sand Oil Pool underlying said fieldwide unit. In this
connection, the Board finds that the Petitioner, as Operator, is specifically authorized to
carry out and to conduct secondary recovery and/or pressure maintenance operations
within the unitized intervals of the Laurel Rodessa Field Unit, including waterflooding,
repressuring, cycling and combinations thereof.
6.
The Board finds that secondary recovery and/or pressure maintenance operations
on the Laurel Rodessa Field Unit were commenced on or about March 1994 and have
continued on an uninterrupted basis since that date. The Board finds that these secondary
recovery and/or pressure maintenance operations have consisted exclusively of the
underground injection of saltwater and other produced fluids into the unitized intervals of
the Rodessa Sand Oil Pool underlying the Laurel Rodessa Field Unit. These secondary
recovery and/or pressure maintenance operations have been conducted on a fieldwide unit
basis. The Board finds that the Petitioner presently operates various active Class II
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enhanced oil recovery injection wells on the Laurel Rodessa Field Unit. These Class II
enhanced oil recovery injection wells are presently being actively utilized in connection with
waterflooding and pressure maintenance operations on the Laurel Rodessa Field Unit.
7.
The Board finds that the production of oil and other hydrocarbons ("Unitized
Substances") from the Laurel Rodessa Field Unit is declining. The Board further finds that
studies undertaken by the Petitioner indicate that the implementation of tertiary enhanced
oil recovery methods on the Laurel Rodessa Field Unit will substantially increase the
production of oil and other Unitized Substances and will significantly extend the economic
life of the fieldwide unit.
In this connection, the Board finds that the Special Field Rules for the Laurel Field,
Jones County, Mississippi, should be amended to specifically authorize the Operator of the
Laurel Rodessa Field Unit to implement tertiary enhanced oil recovery methods on said
fieldwide unit, including but not limited to the utilization of microbial enhanced oil recovery
methods.
9.
The Board further finds that the Special Field Rules should be amended to authorize
the Operator of the Laurel Rodessa Field Unit, in the implementation of the proposed
tertiary enhanced oil recovery program, to drill and/or to convert wells for use as Class II
enhanced oil recovery injection wells on said fieldwide unit, upon administrative permit,
without hearing, upon the publication of not less than twenty (20) days notice.
10.
The Board finds that Rule 6 ["LAUREL RODESSA FIELD UNIT'1 of the Special Field
Rules presently establishes spacing and production allocation requirements applicable to
the Laurel Rodessa Field Unit and prescribes rules governing the operation of said
fieldwide unit for secondary recovery and/or pressure maintenance operations on said unit.
11.
The Board finds that the Special Field Rules for the Laurel Field, Jones County,
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Mississippi, should be amended for the hereinabove specified purposes by adding thereto
a new RULE 6.5 ["TERTIARY ENHANCED OIL RECOVERY METHODS"], all as more fully
set forth on the attached Exhibit "A." which is incorporated herein and made a part hereof
by reference.
12.
Specifically, the Board finds that the Special Field Rules should be amended by
adding thereto a new RULE 6.5 to read as follows:
RULE 6.5 - TERTIARY ENHANCED OIL RECOVERY METHODS
The Operator of the Laurel Rodessa Field Unit is further authorized
to implement tertiary enhanced oil recovery methods and/or pressure
maintenance operations within the unitized intervals of the Laurel Rodessa
Field Unit (the "Unitized Formation"), including microbial enhanced oil
recovery methods and such other tertiary enhanced oil recovery methods as
may be approved and permitted by the Mississippi State Oil and Gas Board.
In conjunction with such tertiary enhanced oil recovery operations, the
Operator may use for injection purposes existing wells located on the Laurel
Rodessa Field Unit which mav be converted to injection wells or wells mav
be drilled on said fieldwide unit for such purposes. Any such wells drilled as
injection wells or converted to injection wells by the Operator on the fieldwide
unit, as a part of tertiary enhanced oil recovery operations, may be approved
by the Mississippi State Oil and Gas Board upon administrative permit,
without hearing, upon the Operator filing with the Board a duly executed
FORM 2. the required permit fee for each such well, and all evidence and
information reouired bv Statewide Rule 63 and upon not less than twenty
(201 davs publication notice. In addition, existing fieldwide unit injection wells
mav be converted to fieldwide unit producing wells on administrative permit.
without notice and hearing, upon the Operator filing with the Board a duly
executed FORM 2. the reouired permit fee for each such well, and all other
evidence and information the Board mav reouire.
13.
The Board further finds that the existing Rule 6.5 ["ALLOCATION OF
PRODUCTION"! and the existing Rule 6.6 ["SURFACE STORAGE. MEASUREMENT AND
TRANSFER SYSTEMS'1 of the Special Field Rules should be redesionated as a new Rule
6.6 and Rule 6.7, respectively.
14.
The Board finds that the amendment of the Special Field Rules for the Laurel Field,
Jones County, Mississippi, all as hereinafter more fully set forth on the attached Exhibit "£,"
will promote conservation, will prevent waste, will avoid the drilling of unnecessary wells,
and will fully protect the co-equal and correlative rights of all parties in interest. In addition,
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the Board finds that the adoption of the proposed amendments to the Special Field Rules
will facilitate the more efficient and economical operation of the Laurel Rodessa Field Unit,
Rodessa Sand Oil Pool, Laurel Field, Jones County, Mississippi, and will result in the
ultimate recovery of oil and/or other hydrocarbon reserves from the said fieldwide unit
which would not otherwise be recovered.
15.
A copy of the Special Field Rules, as amended for the hereinabove specified
purposes, is attached hereto as Exhibit "A." and is made a part hereof by reference for all
purposes.
IT IS, THEREFORE, ORDERED AND ADJUDGED by the State Oil and Gas Board
^ of Mississippi that the Special Field Rules for the Laurel Field, Jones County, Mississippi,
should be and the same are hereby amended to authorize the Operator of the Laurel
Rodessa Field Unit, Rodessa Sand Oil Pool, Laurel Field, Jones County, Mississippi, to
implement tertiary enhanced oil recovery methods within the unitized intervals of said
fieldwide unit, including but not limited to microbial enhanced oil recovery methods, all as
more fully set forth on the attached Exhibit "A." which is incorporated herein and made a
part hereof by reference for all purposes.
IT IS FURTHER ORDERED AND ADJUDGED that Coho Resources, Inc. shall
acquire all other permits, if any, required by any other permitting authority.
i " IT IS FURTHER ORDERED AND ADJUDGED that this Order shall be in force and
effect from and after October 20,1999. .
w ORDERED AND ADJUDGED this the AQ "~ day of October, 1999.
MISSISSIPPI STATE OILAND GAS BOARD
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ORDER PREPARED BY:
Howard O. Leach
MB-No. 1119
Armstrong, Thomas, Leach & Lampton
Attorneys-at-Law
246 West Gallatin Street
P. O. Box 190
Hazlehurst, Mississippi 39083
Telephone: (601)894-4061
Telecopier: (601)894-4792
\SssX
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EXHIBIT "A'
SPECIAL FIELD RULES FOR THE LAUREL FIELD
JONES COUNTY. MISSISSIPPI
A. FIELDAREA:
The Laurel Field, as used herein, is that geographical area consisting of the
following described lands, to-wit:
Township 8 North. Range 12 West
Section 1: All
Section 2: East Half (E 1/2)
Section 12: North Half (N 1/2)
Township 8 North. Range 11 West
Section 6: All
Section 7: Northwest Quarter (NW 1/4)
Township 9 North. Range 11 West
Section 31: All
Township 9 North. Range 12 West
Section 36: All
and all lands covered by productive extensions of the hereinafter defined pools.
B. POOL DEFINITIONS:
1.1 The Eutaw-Stanlev Sand Oil Pool in the Laurel Field shall be construed to mean
those strata of the Eutaw Formation productive of hydrocarbons occurring between the
measured depths of 6668 feet to 6793 feet on the Dual Induction Focus Log of the
Mississippi Investments 1-11 Well No. 3 located in Section 1, Township 8 North, Range 12
West, Jones County, Mississippi, and all strata productive of hydrocarbons which can be
correlated therewith and are in communication therewith.
1.2 The Eutaw-Christmas Sand Oil Pool in the Laurel Field shall be construed to
mean those strata of the Eutaw Formation productive of hydrocarbons occurring between
the measured depths of 6903 feet to 7091 feet on the Dual Induction Log of the Mississippi
Investments 1-11 No. 3 Well located in Section 1, Township 8 North, Range 12 West,
Jones County, Mississippi, and including those strata productive of hydrocarbons which
can be correlated therewith and are in communication therewith.
2.1 The 7550' Upper Tuscaloosa Sand Oil Pool in the Laurel Field shall be
construed to mean those strata of the Upper Tuscaloosa Formation productive of
hydrocarbons occurring between the measured depths of 7,558 feet to 7,891 feet on the
Dual Induction Focus Log of the Coho Resources, Inc. - Amax-Britoil Ventures, Inc. 1-7 No.
1 Well located in Section 1, Township 8 North, Range 12 West, Jones County, Mississippi,
and including those strata productive of hydrocarbons which can be correlated therewith
and are in communication therewith.
2.2 The 7900* Upper Tuscaloosa Sand Oil Pool in the Laurel Field shall be
construed to mean those strata of the Upper Tuscaloosa Formation productive of
hydrocarbons occurring between the measured depths of 7,907 feet to 7,995 feet on the
Dual Induction Focus Log of the Coho Resources, Inc. - Amax-Britoil Ventures, Inc. 1-7 No.
1 Well located in Section 1, Township 8 North, Range 12 West, Jones County, Mississippi,
and including those strata productive of hydrocarbons which can be correlated therewith
and are in communication therewith.
2.3 The 8000' Upper Tuscaloosa Sand Oil Pool in the Laurel Field shall be
construed to mean those strata of the Upper Tuscaloosa Formation productive of
hydrocarbons occurring between the measured depths of 8001 feet to 8074 feet on the
Dual Induction Focus Log of the Amax-Britoil Ventures, Inc. 1-7 Well No. 1 located in
Section 1, Township 8 North, Range 12 West, Jones County, Mississippi, and including
those strata productive of hydrocarbons which can be correlated therewith and are in
communication therewith.
2.4 The 8110' Upper Tuscaloosa Sand Oil Pool in the Laurel Field shall be
construed to mean those strata of the Upper Tuscaloosa Formation productive of
hydrocarbons occurring between the measured depths of 8,110 feet to 8,132 feet on the
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Dual Induction Focus Log of the Coho Resources, Inc. - Amax-Britoil Ventures, Inc. 1-7 No.
1 Well located in Section 1, Township 8 North, Range 12 West, Jones County, Mississippi,
and including those strata productive of hydrocarbons which can be correlated therewith
and are in communication therewith.
2.5 The Lower Tuscaloosa Stringer Sand Oil Pool in the Laurel Field shall be
construed to mean those strata of the Lower Tuscaloosa Formation productive of
hydrocarbons occurring between the measured depths of 7725 feet to 7932 feet on the
Dual Induction - SFL Log of the Pan Canadian Petroleum Company - City of Laurel 6-6 No.
1 Well located in Section 6, Township 8 North, Range 11 West, Jones County, Mississippi,
and including those strata productive of hydrocarbons which can be correlated therewith
and are in communication therewith.
2.6 The Lower Tuscaloosa Massive Sand Oil Pool in the Laurel Field shall be
construed to mean those strata of the Lower Tuscaloosa Formation productive of
hydrocarbons occurring between the measured depths of 7932 feet to 8223 feet on the
Dual Induction - SFL Log of the Pan Canadian Petroleum Company - City of Laurel 6-6 No.
1 Well located in Section 6, Township 8 North, Range 11 West, Jones County, Mississippi,
and including those strata productive of hydrocarbons which can be correlated therewith
and are in communication therewith.
3.1 The 9.200' Paluxv Sand Oil Pool in the Laurel Field shall be construed to mean
those strata of the Paluxy Formation productive of hydrocarbons occurring between the
measured depths of 9210 feet to 9300 feet on the Dual Induction Focus Log of the Central
Oil Company and Zach Brooks Drilling Company - Mississippi Investments 1-11 Well
located in Section 1, Township 8 North, Range 12 West, Jones County, Mississippi, and
including those strata productive of hydrocarbons which can be correlated therewith and
are in communication therewith.
3 2 The 9560' Paluxv Sand Oil Pool in the Laurel Field shall be construed to mean
those strata of the Paluxy Formation productive of hydrocarbons occurring between the
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measured depths of 9560 feet to 9614 feet on the Dual Induction Log of the Mississippi
Investments 1-11 Well No. 2 located in Section 1, Township 8 North, Range 12 West,
Jones County, Mississippi, and all strata productive of hydrocarbons which can be
correlated therewith and are in communication therewith.
3.3 The 9700' Paluxv Sand Oil Pool in the Laurel Field shall be construed to mean
those strata of the Paluxy Formation productive of hydrocarbons occurring between the
measured depths of 9660 feet to 9908 feet on the Dual Induction Focus Log of the Central
Oil Company and Zach Brooks Drilling Company-Mississippi Investments 1-11 Well located
in Section 1, Township 8 North, Range 12 West, Jones County, Mississippi, and including
those strata productive of hydrocarbons which can be correlated therewith and are in
communication therewith.
3.4 The Southwest 9700' Paluxv Sand Oil Pool in the Laurel Field shall be
construed to mean those strata of the Paluxy Formation productive of hydrocarbons
occurring between the measured depths of 9716 feet to 9753 feet on the Dual Induction
Focus Log of the Mississippi Investments 1-11 Well No. 2 located in Section 1, Township
8 North, Range 12 West, Jones County, Mississippi, and including those strata productive
of hydrocarbons which can be correlated therewith and are in communication therewith.
3.5 The Upper Paluxv Sand Oil Pool in the Laurel Field shall be construed to mean
those strata of the Paluxy Formation productive of hydrocarbons occurring between the
measured depths of 9820 feet to 10,030 feet on the Dual Induction Log of the Coho
Resources, Inc. - Laurel Field Unit 1-1 Well No. 2 located in Section 1, Township 8 North,
Range 12 West, Jones County, Mississippi, and including those strata productive of
hydrocarbons which can be correlated therewith and are in communication therewith.
3.6 The Lower Paluxv Sand Oil Pool in the Laurel Field shall be construed to
mean those strata of the Paluxy Formation productive of hydrocarbons occurring between
the measured depths of 10,030 feet to 10,455 feet on the Dual Induction Log of the Coho
Resources, Inc. - Laurel Field Unit 1-1 Well No. 2 located in Section 1, Township 8 North,
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Range 12 West, Jones County, Mississippi, and including those strata productive of
hydrocarbons which can be correlated therewith and are in communication therewith.
3.7 The 10.375' Lower Paluxv Sand Oil Pool in the Laurel Field shall be
construed to mean those strata of the Paluxy Formation productive of hydrocarbons
occurring between the measured depths of 10,455 feet to 10,780 feet on the Dual
Induction Log of the Coho Resources, Inc. - Laurel Field Unit 1-1 No. 2 Well located in
Section 1, Township 8 North, Range 12 West, Jones County, Mississippi, and including
those strata which can be correlated therewith and are in communication therewith.
4.1 The Rodessa Sand Oil Pool in the Laurel Field shall be construed to mean
those strata of the Rodessa Formation productive of hydrocarbons occurring between the
measured depths of 11,947 feet to 12,450 feet (11,877 feet to 12,347 feet true vertical
depth) on the Dual Induction Focus Log of the Mosbacher Energy Company City of Laurel
6-13 Well located in Section 6, Township 8 North, Range 11 West, Jones County,
Mississippi, and including those strata productive of hydrocarbons which can be correlated
therewith.
5.1 The Sliao Sand Oil Pool in the Laurel Field shall be construed to mean those
strata of the Sligo Formation productive of hydrocarbons occurring between the measured
depths of 12,370 feet and 12,770 feet (12,220 feet and 12,620 feet true vertical depth) on
the Dual Induction Focus Log of the Pan Canadian Petroleum Company - City of Laurel
6-4 No. 1 Well located in Section 6, Township 8 North, Range 11 West, Jones County,
Mississippi, and including those strata productive of hydrocarbons which can be correlated
therewith.
6.1 The Upper Hosston Sand Oil Pool in the Laurel Field shall be construed to
mean those strata of the Hosston Formation productive of oil and hydrocarbons
encountered between the measured depths of 12,582 feet to 13,092 feet on the Dual
Induction Log of the Coho Resources, Inc. - Laurel Field Unit 1-1 No. 1 Well (true vertical
depth of 12,450 feet to 12,934 feet) located on the reformed 80-acre unit consisting of the
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N 1/2 of NE 1/4 of Section 1, Township 8 North, Range 12 West, Jones County,
Mississippi, and all horizons correlative therewith.
6.2 The Middle Hosston Sand Oil Pool in the Laurel Field shall be construed to
mean those strata of the Hosston Formation productive of oil and hydrocarbons
encountered between the measured depths of 13,092 feet to 13,508 feet on the Dual
Induction Log of the Coho Resources, Inc. - Laurel Field Unit 1-1 No. 1 Well (true vertical
depth of 12,934 feet to 13,336 feet) located on the reformed 80-acre unit consisting of the
N 1/2 of the NE 1/4 of Section 1, Township 8 North, Range 12 West, Jones County,
Mississippi, and all horizons correlative therewith.
7.1 The Moorinasport Sand Oil Pool in the Laurel Field shall be construed to
mean those strata of the Mooringsport Formation productive of hydrocarbons occurring
between the measured depths of 10,780 feet to 11,598 feet on the Dual Induction Log of
the Coho Resources, Inc. - Laurel Field 1-1 Well No. 2 located in Section 1, Township 8
North, Range 12 West, Jones County, Mississippi, and including those strata productive
of hydrocarbons which can be correlated therewith and are in communication therewith.
8.1 The Washita-Fredericksburg Sand Oil Pool in the Laurel Field shall be
construed to mean those strata of the Washita-Fredericksburg Formation productive of
hydrocarbons occurring between the measured depths of 8,453 feet to 9,134 feet on the
Dual Induction Focus Log of the Coho Resources, Inc. - Laurel Field Unit 1-7 No. 4 Well
(now redesignated as the Laurel Field Unit 1-1 No. 6 Well) located in Section 1, Township
8 North, Range 12 West, Jones County, Mississippi, and including those strata productive
of hydrocarbons which can be correlated therewith and are in communication therewith.
9.1 The Southwest Fault Block Lower Tuscaloosa Stringer Sand Oil Pool in the
Laurel Field shall be construed to mean those strata of the Lower Tuscaloosa Formation
productive of hydrocarbons occurring between the measured depths of 7732 feet to 7912
feet on the Dual Induction Long-Spaced Sonic Log of the Coho Resources, Inc. - Laurel
Field Unit 1-9 No. 2 Well located in Section 1, Township 8 North, Range 12 West, Jones
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County, Mississippi, and including those strata productive of hydrocarbons which can be
correlated therewith and are in communication therewith.
10.1 The Productive Sands in the Laurel Field are located within the City of Laurel,
Mississippi, in a developed area where residential houses, streets, highways, businesses,
and commercial structures are located. Most of the wells to be drilled hereafter in the
Laurel Field must be drilled as intentionally deviated wells from a surface location where
sites are available to the desired bottomhole location in order to encounter the productive
formations under the field. In the interest of conservation and for the protection of the
coequal and correlative rights of all parties in interest, these Special Field Rules provide
for the spacing of oil wells and authorize the directional drilling of wells to the formations
defined above.
C. RULES:
RULE 1 - SPACING OF OIL WELLS:
1.1 As to each well drilled to and productive from the Eutaw-Stanley Sand Oil Pool,
the Eutaw-Christmas Sand Oil Pool, the 7550* Upper Tuscaloosa Sand Oil Pool, the 7900'
Upper Tuscaloosa Sand Oil Pool, the 8,000' Upper Tuscaloosa Sand Oil Pool, the 8110'
Upper Tuscaloosa Sand Oil Pool, the Lower Tuscaloosa Stringer Sand Oil Pool, the Lower
Tuscaloosa Massive Sand Oil Pool, the Washita-Fredericksburg Sand Oil Pool, the 9,200'
Paluxy Sand Oil Pool, the 9560' Paluxy Sand Oil Pool, the 9700' Paluxy Sand Oil Pool, the
Southwest 9700' Paluxy Sand Oil Pool, the Upper Paluxy Sand Oil Pool, the Lower Paluxy
Sand Oil Pool, the 10,375' Lower Paluxy Sand Oil Pool, the Mooringsport Sand Oil Pool,
the Rodessa Sand Oil Pool and the Southwest Fault Block Lower Tuscaloosa Stringer
Sand Oil Pool:
(a) The well shall be located on a drilling unit consisting of 40
contiguous surface acres, or a governmental quarter-quarter
section containing not less than 36 acres or more than 44
acres, upon which no other drilling or producible well is
located.
(b) Any drilling unit not composed of a governmental
quarter-quarter section must be completely encompassed by
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the perimeter of a rectangle 1,810 feet by 1,445 feet.
Provided, however, no unit shall be permitted which will create
island acreage.
(c) The well shall be located at least 230 feet from every other
drilling well or well completed in or producing from the same
pool located in conformity with the Rule.
(d) The well shall be located not less than 165 feet from every
exterior boundary of the unit.
(e) On all wells drilled closer than 200 feet to an exterior
boundary of the unit, a directional survey shall be made prior
to setting of production casing and a certified copy thereof filed
with the Board no later than thirty (30) days) thereafter.
1.2 As to each well drilled to and productive from the Sligo Sand Oil Pool, the Upper
Hosston Sand Oil Pool, and the Middle Hosston Sand Oil Pool:
(a) The well shall be located on a drilling unit consisting of
eighty (80) contiguous surface acres, or two (2) governmental
quarter-quarter sections containing not less than seventy-two
(72) acres or more than eighty-eight (88) acres, upon which
no other drilling or producible well is located.
(b) Any drilling unit not composed of two (2) governmental
quarter-quarter sections must be completely encompassed by
the perimeter of a rectangle 1600 feet by 2725 feet. Provided,
however, no unit shall be permitted which will create island
acreage.
(c) The well shall be located at least 500 feet from every other
drilling well or well completed in or producing from the same
pool located in conformity with this Rule.
(d) The well shall be located at least 250 feet from every
exterior boundary of the drilling unit.
(e) On all wells drilled closer than 200 feet to an exterior
boundary of the unit, a directional survey shall be made prior
to setting of production casing and a certified copy thereof filed
with the Board no later than thirty (30) days thereafter.
RIM F 9 - DIRECTIONS DRILLING WELLS:
2.1 Wells may be permitted by the supervisor of the State Oil and Gas Board
within the Laurel Field Area.
2.2 The"Supervisor is authorized to issue permits approving the directional drilling
of wells from available sites within the City of Laurel or from developed areas within the
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Laurel Field outside the City of Laurel to a bottomhole location to penetrate any of the
productive formations in the Laurel Field, including approval of the crossing of unit lines,
if the location of the well bore at the producing horizons of those pools defined in
Paragraph B, Sections 1.1 through 4.1 and 7.1 through 9.1, is at least 165 feet from any
exterior unit boundary, and if the location of the well bore at the producing horizon of the
pool defined in Paragraph B, Section 5.1, 6.1 and 6.2 is at least 250 feet from any exterior
unit boundary.
2.3 The application for permit for directionally drilling well shall be accompanied by
a survey plat showing the surface location, the bottomhole location, and the drilling unit
assigned to the well.
2.4 A directional survey shall be conducted on each deviated hole prior to setting
of production casing and a certified copy thereof furnished to the State Oil and Gas Board
within 30 days thereof.
RULE 3 - LAUREL MOORINGSPORT FIELD UNIT
3.1 The Laurel Mooringsport Field Unit is that portion of the following described
lands lying within the Laurel Field underlain by the unitized portion of the Mooringsport
Sand Oil Pool (Unitized Formation") and described as follows:
Township 9 North. Range 12 West
Section 36: All that part of the SE 1/4 of SE 1/4 lying South of
the Railroad Right-of-Way.
Township 8 North. Range 12 West
Section 1: W 3/4 of NE 1/4 of NE 1/4;
E 1/2 of NW 1/4 of NE 1/4;
SE1/4ofSE1/4ofNW1/4;
SW1/4ofNE1/4;
W3/4ofSE1/4ofNE1/4;
NW1/4ofNE1/4ofSE1/4;
NW1/4ofSE1/4;
E1/2ofNE1/4ofSW1/4;
NE 1/4 of SE 1/4 of SW 1/4; and
NW1/4ofSW1/4ofSE1/4.
All the above described lands situated in the Second Judicial
District, Jones County, Mississippi.
-9-
3.2 Unitized Formation is the subsurface portion of the Unit Area described as
those strata of the Mooringsport Sand Oil Pool productive of Unitized Substances in the
interval between the measured depths of 11,182 feet to 11,276 feet as indicated on the
Dual Induction Log of the Coho Resources, Inc. - Laurel Field 1-7 Well No. 4 located in
Section 1, Township 8 North, Range 12 West, Second Judicial District, Jones County,
Mississippi, and including those strata productive of Unitized Substances which can be
correlated with and/or In communication therewith. The Unitized Formation for the Laurel
Mooringsport Field Unit is within the defined interval for the Mooringsport Sand Oil Pool in
the Laurel Field as stated in the Special Field Rules for the Laurel Field.
3.3 SPACING OF WELLS IN LAUREL MOORINGSPORT FIELD UNIT
(A) Notwithstanding any other provisions contained in these Special Field Rules,
the location of injection and production wells in the Laurel Mooringsport Field Unit shall be
selected by the operator and shall be governed by the standards of geology and petroleum
engineering designed to promote the greatest ultimate recovery of hydrocarbons contained
in the pool. However, no well may be drilled, injected into or produced from said pool
nearer than 165 feet from any exterior boundary of the fieldwide unit, except upon permit
issued by the Mississippi State Oil and Gas Board, after notice and hearing.
(B) The operator may drill either injection or producing wells utilizing directional or
horizontal drilling techniques designed to increase the ultimate recovery of hydrocarbons
contained in the pool without notice and hearing; provided, however, that (1) no portion of
the well bore located within the unitized interval or horizon of any such well so drilled shall
be nearer than 165 feet from any exterior boundary of the Laurel Mooringsport Field Unit,
except upon permit issued by the Mississippi State Oil and Gas Board, after notice and
hearing, and (2) the operator shall file a directional survey and other information required
by rule or written policy of the Board after completion.
(C) Furthermore, the operator may drill either injection or producing wells on the
Laurel Mooringsport Field Unit utilizing directional or horizontal drilling techniques as
-10-
hereinabove described regardless of whether the surface location of such wells is within
or outside the unit boundaries of the fieldwide unit.
3.4 PRESSURE MAINTENANCE AND SECONDARY RECOVERY PROGRAM
AUTHORIZED
Coho Resources, Inc., as operator of the Laurel Mooringsport Field Unit, is hereby
authorized to conduct and carry out secondary recovery, pressure maintenance,
repressuring operations, cycling operations, water flooding operations, and the injection
of extraneous substances in the Laurel Mooringsport Field Unit, and any combination
thereof, or any other form of joint effort calculated to substantially increase the ultimate
recovery of oil or gas, or both, from the fieldwide unit as is authorized by the Plan of
Unitization placed into effect by the Mississippi State Oil and Gas Board. The operator
may use for injection purposes existing wells located in said Laurel Mooringsport Field Unit
which may be converted to injection wells or wells may be drilled on said fieldwide unit for
such purposes. Any such wells drilled as injection wells or converted to injection wells by
operator on the fieldwide unit as a part of pressure maintenance and/or secondary
recovery operations may be approved by the Mississippi State Oil and Gas Board on
administrative permit, without notice and hearing, upon the operator filing with the Board
a duly executed FORM 2, the required permit fee for each such well, and all evidence and
information required under Statewide Rule 63. In addition, existing fieldwide unit injection
wells may be converted to fieldwide unit producing wells on administrative permit, without
notice and hearing, upon the operator filing with the Board a duly executed FORM 2, the
required permit fee for each such well, and all other evidence and information the Board
may require.
3.5 ALLOCATION OF PRODUCTION
The allowable for the Laurel Mooringsport Field Unit shall be established by the
Mississippi State Oil and Gas Board. The allowable production of the said fieldwide unit
may be produced from any well or wells on said fieldwide units provided, however, that no
well shall be operated in such a manner as to cause waste as defined by the Laws of the
-ll-
State of Mississippi.
3.6 SURFACE STORAGE. MEASUREMENT AND TRANSFER SYSTEMS
(A) The Operator of the Laurel Mooringsport Field Unit may maintain such
separators, stock tanks, metering devices, connections and storage facilities as it deems
necessary to accurately measure the total production from the fieldwide unit. Separate
measurement or storage for the wells and leases within the fieldwide unit shall not be
required.
(B) Automatic custody transfer systems which automatically test, sample, measure
and transfer the production from the Operator to the purchaser are hereby authorized in
said fieldwide unit. Such systems will be equipped with a sampling device which will take
a representative sample of the total production passing through the system in order that
the specific gravity and basic sediment and water content can be determined. Each
custody transfer system will be equipped with a volume displacement type metering device
which registers the volume of oil passed through it in barrels or multiples thereof.
RULE 4 - MAXIMUM EFFICIENT RATE OF PRODUCTION/OIL
ALLOWABLE FOR PRODUCTION FROM LOWER
TUSCALOOSA STRINGER SAND OIL POOL
The maximum efficient rate of production for wells producing from the Lower
Tuscaloosa Stringer Sand Oil Pool is such that any well completed or recompleted in and
producing therefrom shall be granted a maximum daily production allowable not to exceed
500 barrels of oil per day (BOPD) for each such well, subject to the adjustments pursuant
to Statewide Rule 35-A.
RULE 5 - MAXIMUM EFFICIENT RATE OF PRODUCTION/OIL
ALLOWABLE FOR PRODUCTION FROM LOWER
TUSCALOOSA MASSIVE SAND OIL POOL
The maximum efficient rate of production for wells producing from the Lower
Tuscaloosa Massive Sand Oil Pool is such that any well completed or recompleted in and
producing therefrom shall be granted a maximum daily production allowable not to exceed
500 barrels of oil per day (BOPD) for each such well, subject to the adjustments pursuant
-12-
to Statewide Rule 35-A.
RULE 6 - LAUREL RODESSA FIELD UNIT
6.1 The Laurel Rodessa Field Unit is that portion of the following described lands
lying within the Laurel Field underlain by the unitized Rodessa Sand Oil Pool ("Unitized
Formation") and described as follows:
Township 9 North. Range 11 West
Section 31; SW 1/4 of NE 1/4 of SW 1/4 and
S 1/2 of SE 1/4 of NE 1/4 of SW 1/4;
E 1/2 of SE 1/4 of NW 1/4 of SW 1/4 and
SW 1/4 of SE 1/4 of NW 1/4 of SW 1/4;
SW1/4ofSW1/4;
SE1/4ofSW1/4;
W 1/2 of SW 1/4 of SW 1/4 of SE 1/4.
Township 8 North. Range 11 West
Section 6: W 1/2 of W 1/2 of NW 1/4 of NE 1/4;
NE1/4ofNW1/4;
NW1/4ofNW1/4;
SW1/4ofNW1/4;
SE1/4ofNW1/4;
W 1/2 of NW 1/4 of SW 1/4 of NE 1/4;
NE1/4ofSW1/4;
NW1/4ofSW1/4;
. N 1/2 of N 1/2 of SW 1/4 of SW 1/4 and
S 1/2 of NW 1/4 of SW 1/4 of SW 1/4 and
NW 1/4 of SW 1/4 of SW 1/4 of SW 1/4 and
W 1/2 of SW 1/4 of SW 1/4 of SW 1/4 of SW 1/4
Township 8 North. Range 12 West
Section 1: SE 1/4 of SE 1/4;
N 1/2 of SW 1/4 of SE 1/4 and
SE1/4ofSW1/4ofSE1/4;
-13-
NE 1/4 of NE 1/4 of SE 1/4 of SW 1/4;
• NE1/4ofSE1/4;
E 1/2 of NW 1/4 of SE 1/4 and
SW 1/4 of NW 1/4 of SE 1/4 and
E 1/2 of NW 1/4 of NW 1/4 of SE 1/4 and
SW 1/4 of NW 1/4 of NW 1/4 of SE 1/4;
E 1/2 of SE 1/4 of NE 1/4 of SW 1/4;
SE 1/4 of NE 1/4;
E 1/2 of SE 1/4 of SW 1/4 of NE 1/4 and
SW 1/4 of SE 1/4 of SW 1/4 of NE 1/4;
E 1/2 of NE 1/4 of NE 1/4 and
SW 1/4 of NE 1/4 of NE 1/4 and
E 1/2 of NW 1/4 of NE 1/4 of NE 1/4.
Township 9 North. Range 12 West
Section 36: All that part of the SE 1/4 of SE 1/4 of SE 1/4 lying South of the
Railroad Right of Way.
All the above described lands situated in the Second Judicial District, Jones
County, Mississippi.
6.2 Unitized Formation is the subsurface portion of the Unitized Area described
as those strata of the Rodessa Sand Oil Pool productive of Unitized Substances in the
interval between the measured depths of 11,947 feet to 12,450 feet as indicated on the
Dual Induction Focus Log of the Coho Resources, Inc. (formerly Mosbacher Energy
Company) - City of Laurel 6-13 Well located in Section 6, Township 8 North, Range 11
West, Second Judicial District, Jones County, Mississippi, and including those strata
productive of Unitized Substances which can be correlated with and/or in communication
therewith. The Unitized Formation for the Laurel Rodessa Field Unit is correlative to and
within the defined interval for the Rodessa Sand Oil Pool in the Laurel Field as stated in
the Special Field Rules for the Laurel Field.
6.3 SPACING OF WELLS IN LAUREL RODESSA FIELD UNIT
(A) Notwithstanding any other provisions contained in these Special Field Rules,
the location of injection and production wells in the Laurel Rodessa Field Unit shall be
-14-
selected by the operator and shall be governed by the standards of geology and petroleum
engineering designed to promote the greatest ultimate recovery of hydrocarbons contained
in the pool. However, no well may be drilled, injected into or produced from said pool
nearer than 165 feet from any exterior boundary of the fieldwide unit, except upon permit
issued by the Mississippi State Oil and Gas Board, after notice and hearing.
(B) The operator may drill either injection or producing wells utilizing directional
or horizontal drilling techniques designed to increase the ultimate recovery of hydrocarbons
contained in the pool without notice and hearing; provided, however, that (1) no portion of
the wellbore located within the unitized interval or horizon of any such well so drilled shall
be nearer than 165 feet from any exterior boundary of the Laurel Rodessa Field Unit,
except upon permit issued by the Mississippi State Oil and Gas Board, after notice and
hearing, and (2) the operator shall file a directional survey and other information required
by rule or written policy of the Board after completion.
(C) Furthermore, the operator may drill either injection or producing wells on the
Laurel Rodessa Field Unit utilizing directional or horizonal drilling techniques as
hereinabove described regardless of whether the surface location of such wells is within
or outside the unit boundaries of the fieldwide unit.
6.4 PRESSURE MAINTENANCE AND SECONDARY RECOVERY PROGRAM
AUTHORIZED
Coho Resources, Inc., as operator of the Laurel Rodessa Field Unit, is hereby
authorized to conduct and carry out secondary recovery, pressure maintenance,
repressuring operations, cycling operations, water flooding operations, and the injection
of extraneous substances in the Laurel Rodessa Field Unit, and any combination thereof,
or any other form of joint effort calculated to substantially increase the ultimate recovery
of oil or gas, or both, from the fieldwide unit as is authorized by the Plan of Unitization
placed into effect by the Mississippi State Oil and Gas Board. The operator may use for
injection purposes existing wells located in said Laurel Rodessa Field Unit which may be
converted to injection wells or wells may be drilled on said fieldwide unit for such purposes.
-15-
Any such wells drilled as injection wells or converted to injection wells by the operator on
the fieldwide unit as a part of pressure maintenance and/or secondary recovery operations
may be approved by the Mississippi State Oil and Gas Board on administrative permit,
without notice and hearing, upon the operator filing with the Board a duly executed FORM
2, the required permit fee for each such well, and all evidence and information required
under Statewide Rule 63. In addition, existing fieldwide unit injection wells may be
converted to fieldwide unit producing wells on administrative permit, without notice and
hearing, upon the operator filing with the Board a duly executed FORM 2, the required
permit fee for each such well, and all other evidence and information the Board may
require.
6.5 - TERTIARY ENHANCED OIL RECOVERY METHODS
The Operator of the Laurel Rodessa Field Unit is further authorized to implement
tertiary enhanced oil recovery methods and/or pressure maintenance operations within the
unitized intervals of the Laurel Rodessa Field Unit (the "Unitized Formation"), including
microbial enhanced oil recovery methods and such other tertiary enhanced oil recovery
methods as may be approved and permitted by the Mississippi State Oil and Gas Board.
In conjunction with such tertiary enhanced oil recovery operations, the Operator may use
for injection purposes existing wells located on the Laurel Rodessa Field Unit which may
be converted to injection wells or wells may be drilled on said fieldwide unit for such
purposes. Any such wells drilled as injection wells or converted to injection wells by the
Operator on the fieldwide unit, as a part of tertiary enhanced oil recovery operations, may
be approved by the Mississippi State Oil and Gas Board upon administrative permit,
without hearing, upon the Operator filing with the Board a duly executed FORM 2, the
required permit fee for each such well, and all evidence and information required by
Statewide Rule 63 and upon not less than twenty (20) days publication notice. In addition,
existing fieldwide unit injection wells may be converted to fieldwide unit producing wells on
administrative permit, without notice and hearing, upon the Operator filing with the Board
-16-
a duly executed FORM 2, the required permit fee for each such well, and all other evidence
and information the Board may require.
6.6 ALLOCATION OF PRODUCTION
The allowable for the Laurel Rodessa Field Unit shall be established by the
Mississippi State Oil and Gas Board. The allowable production of the said fieldwide unit
may be produced from any well or wells on said fieldwide unit; provided, however, that no
well shall be operated in such a manner as to cause waste as defined by the Laws of the
State of Mississippi.
6.7 SURFACE STORAGE. MEASUREMENT AND TRANSFER SYSTEMS
(A) The operator of the Laurel Rodessa Field Unit may maintain such separators,
stock tanks, metering devices, connections and storage facilities as it deems necessary
to accurately measure the total production from the fieldwide unit. Separate measurement
or storage for the wells and leases within the fieldwide unit shall not be required.
(B) Automatic custody transfer systems which automatically test, sample,
measure and transfer the production from the operator to the purchaser are hereby
authorized in said fieldwide unit. Such systems will be equipped with a sampling device
which will take a representative sample of the total production passing through the system
in order that the specific gravity and basic sediment and water content can be determined.
Each custody transfer system will be equipped with a volume displacement type metering
device which registers the volume of oil passed through it in barrels or multiples thereof.
RULE 7 - LAUREL SLIGO FIELD UNIT
7.1 The Laurel Sligo Field Unit is that portion of the following described lands
lying within the Laurel Field underlain by the unitized Sligo Sand Oil Pool ("Unitized
Formation") and described as follows:
Township 9 North. Range 11 West
Section 31: SW 1/4 of NE 1/4 of SW 1/4 and
S 1/2 of SE 1/4 of NE 1/4 of SW 1/4;
E 1/2 of SE 1/4 of NW 1/4 of SW 1/4 and
-17-
SW 1/4 of SE 1/4 of NW 1/4 of SW 1/4;
SW1/4ofSW1/4;
SE1/4ofSW1/4;
W 1/2 of SW 1/4 of SW 1/4 of SE 1/4.
Township 8 North. Range 11 West
Section 6: W 1/2 of W 112 of NW 1/4 of NE 1 /4;
NE1/4ofNW1/4;
NW1/4ofNW1/4;
SW1/4ofNW1/4;
SE1/4ofNW1/4;
• W1/2ofNW1/4ofSW1/4ofNE1/4;
NE1/4ofSW1/4;
NW1/4ofSW1/4;
N 1/2 of N 1/2 of SW 1/4 of SW 1/4 and
S 1/2 of NW 1/4 of SW 1/4 of SW 1/4 and
NW 1/4 of SW 1/4 of SW 1/4 of SW 1/4 and
W 1/2 of SW 1/4 of SW 1/4 of SW 1/4 of SW 1/4
Township 8 North. Range 12 West
Section 1: SE 1/4 of SE 1/4;
■ N 1/2 of SW 1/4 of SE 1/4 and
SE1/4ofSW1/4ofSE1/4;
NE 1/4 of NE 1/4 of SE 1/4 of SW 1/4;
NE1/4ofSE1/4;
E 1/2 of NW 1/4 of SE 1/4 and
SW 1/4 of NW 1/4 of SE 1/4 and
E 1/2 of NW 1/4 of NW 1/4 of SE 1/4 and
SW 1/4 of NW 1/4 of NW 1/4 of SE 1/4;
E 1/2 of SE 1/4 of NE 1/4 of SW 1/4;
SE1/4ofNE1/4;
E 1/2 of SE 1/4 of SW 1/4 of NE 1/4 and
SW 1/4 of SE 1/4 of SW 1/4 of NE 1/4;
-18-
E 1/2 of NE 1/4 of NE 1/4 and
SW 1/4 of NE 1/4 of NE 1/4 and
E 1/2 of NW 1/4 of NE 1/4 of NE 1/4.
Township 9 North. Range 12 West
Section 36: All that part of the SE 1/4 of SE 1/4 of SE 1/4 lying South of the
Railroad Right of Way.
All the above described lands situated in the Second Judicial District, Jones
County, Mississippi.
7.2 Unitized Formation is the subsurface portion of the Unit Area described as
those strata of the Sligo Sand Oil Pool productive of Unitized Substances in the interval
between the measured depths of 12,370 feet to 12,770 feet as indicated on the Dual
Induction Focus Log of the Coho Resources, Inc. (formerly Pan Canadian Petroleum
Company) - City of Laurel 6-4 No. 1 Well located in Section 6, Township 8 North, Range
11 West, Second Judicial District, Jones County, Mississippi, and including those strata
productive of Unitized Substances which can be correlated with and/or in communication
therewith. The Unitized Formation for the Laurel Sligo Field Unit is correlative to and within
the defined interval of the Sligo Sand Oil Pool in the Laurel Field as stated in the Special
Field Rules for the Laurel Field.
7.3 SPACING OF WELLS IN LAUREL SLIGO FIELD UNIT
(A) Notwithstanding any other provisions contained in these Special Field Rules,
the location of injection and production wells in the Laurel Sligo Field Unit shall be selected
by the operator and shall be governed by the standards of geology and petroleum
engineering designed to promote the greatest ultimate recovery of hydrocarbons contained
in the pool. However, no well may be drilled, injected into or produced from said pool
nearer than 250 feet from any exterior boundary of the fieldwide unit, except upon permit
issued by the Mississippi State Oil and Gas Board, after notice and hearing.
(B) The operator may drill either injection or producing wells utilizing directional
or horizontal drilling techniques designed to increase the ultimate recovery of hydrocarbons
contained in the pool without notice and hearing; provided, however, that (1) no portion of
-19-
the wellbore located within the unitized interval or horizon of any such well so drilled shall
be nearer than 250 feet from any exterior boundary of the Laurel Sligo Field Unit, except
upon permit issued by the Mississippi State Oil and Gas Board, after notice and hearing,
and (2) the operator shall file a directional survey and other information required by rule or
written policy of the Board after completion.
(C) Furthermore, the operator may drill either injection or producing wells on the
Laurel Sligo Field Unit utilizing directional or horizonal drilling techniques as hereinabove
described regardless of whether the surface location of such wells is within or outside the
unit boundaries of the fieldwide unit.
7.4 PRESSURE MAINTENANCE AND SECONDARY RECOVERY PROGRAM
AUTHORIZED
Coho Resources, Inc., as operator of the Laurel Sligo Field Unit, is hereby
authorized to conduct and carry out secondary recovery, pressure maintenance,
repressuring operations, cycling operations, water flooding operations, and the injection
of extraneous substances in the Laurel Sligo Field Unit, and any combination thereof, or
any other form of joint effort calculated to substantially increase the ultimate recovery of
oil or gas, or both, from the fieldwide unit as is authorized by the Plan of Unitization placed
into effect by the Mississippi State Oil and Gas Board. The operator may use for injection
purposes existing wells located in said Laurel Sligo Field Unit which may be converted to
injection wells or wells may be drilled on said fieldwide unit for such purposes. Any such
wells drilled as injection wells or converted to injection wells by the operator on the
fieldwide unit as a part of pressure maintenance and/or secondary recovery operations
may be approved by the Mississippi State Oil and Gas Board on administrative permit,
without notice and hearing, upon the operator filing with the Board a duly executed FORM
2, the required permit fee for each such well, and all evidence and information required
under Statewide Rule 63. In addition, existing fieldwide unit injection wells may be
converted to fieldwide unit producing wells on administrative permit, without notice and
hearing, upon the operator filing with the Board a duly executed FORM 2, the required
-20-
permit fee for each such well, and all other evidence and information the Board may
require.
7 5 ALLOCATION OF PRODUCTION
The allowable for the Laurel Sligo Field Unit shall be established by the Mississippi
State Oil and Gas Board. The allowable production of the said fieldwide unit may be
produced from any well or wells on said fieldwide unit; provided, however, that no well shall
be operated in such a manner as to cause waste as defined by the Laws of the State of
Mississippi.
7 fi SURFACE STORAGE. MEASURFMENT AND TRANSFER SYSTEMS
(A) The. operator of the Laurel Sligo Field Unit may maintain such separators,
stock tanks, metering devices, connections and storage facilities as it deems necessary
to accurately measure the total production from the fieldwide unit. Separate measurement
or storage for the wells and leases within the fieldwide unit shall not be required.
(B) Automatic custody transfer systems which automatically test, sample,
measure and transfer the production from the operator to the purchaser are hereby
authorized in said fieldwide unit. Such systems will be equipped with a sampling device
which will take a representative sample of the total production passing through the system
in order that the specific gravity and basic sediment and water content can be determined.
Each custody transfer system will be equipped with a volume displacement type metering
device which registers the volume of oil passed through it in barrels or multiples thereof.
RUI F 8 - LAUREL 9700' PAI UXY FIELD UNIT
8.1 The Laurel 9700' Paluxy Field Unit is that portion of the following described
lands lying within the Laurel Field underlain by the unitized 9700' Paluxy Sand Oil Pool
("Unitized Formation") and described as follows:
Township 9 North. Range 12 West
Section 36: All that part of the SE 1/4 of SE 1/4 lying South of the Railroad
Right-of-Way.
-21-
Township 8 North. Range 12 West
Section 1: NE 1/4 of NE 1/4;
E 1/2 of NW 1/4 of NE 1/4 and E 1/2 of W 1/2 of NW 1/4 of NE
1/4;
W1/2ofSE1/4ofNE1/4;
SW1/4ofNE1/4;
E 1/2 of E 1/2 of SE 1/4 of NW 1/4 and S 1/2 of W 1/2 of E 1/2
of SE 1/4 of NW 1/4 and S 1/2 of E 1/2 of W 1/2 of SE 1/4 of
NW 1/4;
NE1/4ofSW1/4;and
N1/2ofNW1/4ofSE1/4;
All the above described lands are situated in the Second Judicial District,
Jones County, Mississippi.
8.2 Unitized Formation is the subsurface portion of the Unitized Area described
as those strata of the 9700* Paluxy Sand Oil Pool productive of Unitized Substances in the
interval between the measured depths of 9660 feet to 9908 feet as indicated on the Dual
Induction Focus Log of the Central Oil Company and Zach Brooks Drilling Company -
Mississippi Investments 1-11 Well located in Section 1, Township 8 North, Range 12 West,
Second Judicial District, Jones County, Mississippi, and including those strata productive
of Unitized Substances which can be correlated with and/or in communication therewith.
The Unitized Formation for the Laurel 9700' Paluxy Field Unit is correlative to and within
the defined interval for the 9700' Paluxy Sand Oil Pool in the Laurel Field as stated in the
Special Field Rules for the Laurel Field.
8.3 SPACING OF WELLS IN LAUREL 9700' PALUXY FIELD UNIT
(A) Notwithstanding any other provisions contained in these Special Field Rules,
the location of injection and production wells in the Laurel 9700* Paluxy Field Unit shall be
selected by the operator and shall be governed by the standards of geology and petroleum
engineering designed to promote the greatest ultimate recovery of hydrocarbons contained
in the pool. However, no well may be drilled, injected into or produced from said pool
-22-
nearer than 165 feet from any exterior boundary of the fieldwide unit, except upon permit
issued by the Mississippi State Oil and Gas Board, after notice and hearing.
(B) The operator may drill either injection or producing wells utilizing directional
or horizontal drilling techniques designed to increase the ultimate recovery of hydrocarbons
contained in the pool without notice and hearing; provided, however, that (1) no portion of
the wellbore located within the unitized interval or horizon of any such well so drilled shall
be nearer than 165 feet from any exterior, boundary of the Laurel 9700' Paluxy Field Unit,
except upon permit issued by the Mississippi State Oil and Gas Board, after notice and
hearing, and (2) the operator shall file a directional survey and other information required
. by rule or written policy of the Board after completion.
(C) Furthermore, the operator may drill either injection or producing wells on the
Laurel 9700' Paluxy Field Unit utilizing directional or horizonal drilling techniques as
hereinabove described regardless of whether the surface location of such wells is within
or outside the unit boundaries of the fieldwide unit.
8.4 PRESSURE MAINTENANCE AND SECONDARY RECOVERY PROGRAM
AUTHORIZED
Coho Resources, Inc., as operator of the Laurel 9700' Paluxy Field Unit, is hereby
authorized to conduct and carry out secondary recovery, pressure maintenance,
repressuring operations, cycling operations, water flooding operations, and the injection
W of extraneous substances in the Laurel 9700' Paluxy Field Unit, and any combination
thereof, or any other form of joint effort calculated to substantially increase the ultimate
recovery of oil or gas, or both, from the fieldwide unit as is authorized by the Plan of
Unitization placed into effect by the Mississippi State Oil and Gas Board. The operator
may use for injection purposes existing wells located in said Laurel 9700' Paluxy Field Unit
which may be converted to injection wells or wells may be drilled on said fieldwide unit for
such purposes. Any such wells drilled as injection wells or converted to injection wells by
the operator on the fieldwide unit as a part of pressure maintenance and/or secondary
recovery operations may be approved by the Mississippi State Oil and Gas Board on
-23-
administrative permit, without notice and hearing, upon the operator filing with the Board
a duly executed FORM 2, the required permit fee for each such well, and all evidence and
information required under Statewide Rule 63. In addition, existing fieldwide unit injection
wells may be converted to fieldwide unit producing wells on administrative permit, without
notice and hearing, upon the operator filing with the Board a duly executed FORM 2, the
required permit fee for each such well, and all other evidence and information the Board
may require.
8.5 ALLOCATION OF PRODUCTION
The allowable for the Laurel 9700' Paluxy Field Unit shall be established by the
Mississippi State Oil and Gas Board. The allowable production of the said fieldwide unit
may be produced from any well or wells on said fieldwide unit; provided, however, that no
well shall be operated in such a manner as to cause waste as defined by the Laws of the
State of Mississippi.
8.6 SURFACE STORAGE. MEASUREMENT AND TRANSFER SYSTEMS
(A) The operator of the Laurel 9700' Paluxy Field Unit may maintain such
separators, stock tanks, metering devices, connections and storage facilities as it deems
necessary to accurately measure the total production from the fieldwide unit. Separate
measurement or storage for the wells and leases within the fieldwide unit shall not be
required.
(B) Automatic custody transfer systems which automatically test, sample,
measure and transfer the production from the operator to the purchaser are hereby
authorized in said fieldwide unit. Such systems will be equipped with a sampling device
which will take a representative sample of the total production passing through the system
in order that the specific gravity and basic sediment and water content can be determined.
Each custody transfer system will be equipped with a volume displacement type metering
device which registers the volume of oil passed through it in barrels or multiples thereof.
-24-
RULE 9 - LAUREL LOWER TUSCALOOSA STRINGER FIELD UNIT
9.1 The Laurel Lower Tuscaloosa Stringer Field Unit is that portion of the
following described lands lying within the Laurel Field underlain by the unitized Lower
Tuscaloosa Stringer Sand Oil Pool ("Unitized Formation") and described as follows:
Township 8 North. Range 11 West
Section 6: NW 1/4 of SW 1/4;
SW1/4ofNW1/4;
SE 1/4 of SE 1/4 of NW 1/4 of NW 1/4;
NE1/4ofNW1/4;
W1/2ofNW1/4ofNE1/4;
SE1/4ofNW1/4;
SW1/4ofNE1/4;and
NE1/4ofSW1/4.
All the above described lands are situated in the Second Judicial District,
Jones County, Mississippi.
9.2 Unitized Formation is the subsurface portion of the Unitized Area described
as those strata of the Lower Tuscaloosa Stringer Sand Oil Pool productive of Unitized
Substances in the interval between the measured depths of 7725 feet to 7932 feet as
indicated on the Dual Induction SFL Log of the Pan Canadian Petroleum Company - City
of Laurel 6-6 No. 1 Well located in Section 6, Township 8 North, Range 11 West, Second
Judicial District, Jones County, Mississippi, and including those strata productive of
Unitized Substances which can be correlated with and/or in communication therewith. The
Unitized Formation for the Laurel Lower Tuscaloosa Stringer Field Unit is correlative to and
within the defined interval for the Lower Tuscaloosa Stringer Sand Oil Pool in the Laurel
Field as stated in the Special Field Rules for the Laurel Field.
9.3 SPACING OF WELLS IN LAUREL LOWER TUSCALOOSA STRINGER FIELD
UNIT
(A) Notwithstanding any other provisions contained in these Special Field Rules,
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the location of injection and production wells in the Laurel Lower Tuscaloosa Stringer Field
Unit shall be selected by the operator and shall be governed by the standards of geology
and petroleum engineering designed to promote the greatest ultimate recovery of
hydrocarbons contained in the pool. However, no well may be drilled, injected into or
produced from said pool nearer than 165 feet from any exterior boundary of the fieldwide
unit, except upon permit issued by the Mississippi State Oil and Gas Board, after notice
and hearing.
(B) The operator may drill either injection or producing wells utilizing directional
or horizontal drilling techniques designed to increase the ultimate recovery of hydrocarbons
contained in the pool without notice and hearing; provided, however, that (1) no portion of
the wellbore located within the unitized interval or horizon of any such well so drilled shall
be nearer than 165 feet from any exterior boundary of the Laurel Lower Tuscaloosa
Stringer Field Unit, except upon permit issued by the Mississippi State Oil and Gas Board,
after notice and hearing, and (2) the operator shall file a directional survey and other
information required by rule or written policy of the Board after completion.
(C) Furthermore, the operator may drill either injection or producing wells on the
Laurel Lower Tuscaloosa Stringer Field Unit utilizing directional or horizonal drilling
techniques as hereinabove described regardless of whether the surface location of such
wells is within or outside the unit boundaries of the fieldwide unit.
9.4 PRESSURE MAINTENANCE AND SECONDARY RECOVERY PROGRAM
AUTHORIZED
Coho Resources, Inc., as operator of the Laurel Lower Tuscaloosa Stringer Field
Unit, is hereby authorized to conduct and carry out secondary recovery, pressure
maintenance, repressuring operations, cycling operations, water flooding operations, and
the injection of extraneous substances in the Laurel Lower Tuscaloosa Stringer Field Unit,
and any combination thereof, or any other form of joint effort calculated to substantially
increase the ultimate recovery of oil or gas, or both, from the fieldwide unit as is authorized
by the Plan of Unitization placed into effect by the Mississippi State Oil and Gas Board.
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The operator may use for injection purposes existing wells located in said Laurel Lower
Tuscaloosa Stringer Field Unit which may be converted to injection wells or wells may be
drilled on said fieldwide unit for such purposes. Any such wells drilled as injection wells
or converted to injection wells by the operator on the fieldwide unit as a part of pressure
maintenance and/or secondary recovery operations may be approved by the Mississippi
State Oil and Gas Board on administrative permit, without notice and hearing, upon the
operator filing with the Board a duly executed FORM 2, the required permit fee for each
such well, and all evidence and information required under Statewide Rule 63. In addition,
existing fieldwide unit injection wells may be converted to fieldwide unit producing wells on
administrative permit, without notice and hearing, upon the operator filing with the Board
a duly executed FORM 2, the required permit fee for each such well, and all other evidence
and information the Board may require.
9.5 ALLOCATION OF PRODUCTION
The allowable for the Laurel Lower Tuscaloosa Stringer Field Unit shall be
established by the Mississippi State Oil and Gas Board. The allowable production of the
said fieldwide unit may be produced from any well or wells on said fieldwide unit; provided,
however, that no well shall be operated in such a manner as to cause waste as defined by
the Laws of the State of Mississippi.
9.6 SURFACE STORAGE. MEASUREMENT AND TRANSFER SYSTEMS
(A) The operator of the Laurel Lower Tuscaloosa Stringer Field Unit may
maintain such separators, stock tanks, metering devices, connections and storage facilities
as it deems necessary to accurately measure the total production from the fieldwide unit.
Separate measurement or storage for the wells and leases within the fieldwide unit shall
not be required.
(B) Automatic custody transfer systems which automatically test, sample,
measure and transfer the production from the operator to the purchaser are hereby
authorized in said fieldwide unit. Such systems will be equipped with a sampling device
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which will take a representative sample of the total production passing through the system
in order that the specific gravity and basic sediment and water content can be determined.
Each custody transfer system will be equipped with a volume displacement type metering
device which registers the volume of oil passed through it in barrels or multiples thereof.
RULE 10 - LAUREL UPPER PALUXY FIELD UNIT
10.1 The Laurel Upper Paluxy Field Unit is that portion of the following described
lands lying within the Laurel Field underlain by the unitized Upper Paluxy Sand Oil Pool
("Unitized Formation") and described as follows:
Township 8 North. Range 11 West:
Section 6: NE 1/4 of NW 1/4;
• NW1/4ofNW1/4;
SW1/4ofNW1/4;
SE1/4ofNW1/4;
NW1/4ofSW1/4;
Township 8 North. Range 12 West:
Section 1: NE 1/4 of NE 1/4;
E 1/2 of E 1/2 of SW 1/4 of NE 1/4;
SE1/4ofNE1/4;
NE1/4ofSE1/4;
E 1/2 of NE 1/4 of NW 1/4 of SE 1/4;
N 1/2 of N 1/2 of SE 1/4 of SE 1/4;
Township 9 North. Range 11 West:
Section 31: SE 1/4 of SW 1/4; and
SW1/4ofSW1/4.
The above described lands are situated in the Second Judicial District, Jones
County, Mississippi.
10.2 Unitized Formation is the subsurface portion of the Unit Area described as
those strata of the Upper Paluxy Sand Oil Pool productive of Unitized Substances in the
interval between the measured depths of 9820 feet to 10,030 feet as indicated on the Dual
Induction Focus Log of the Coho Resources, Inc. - Laurel Field Unit 1-1 No. 2 Well located
in Section 1, Township 8 North, Range 12 West, Second Judicial District, Jones County,
Mississippi, and including those strata productive of Unitized Substances which can be
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r
correlated with and/or in communication therewith. The Unitized Formation for the Laurel
Upper Paluxy Field Unit is correlative to and within the defined interval for the Upper
Paluxy Sand Oil Pool in the Laurel Field as stated in the Special Field Rules for the Laurel
Field.
10.3 SPACING OF WELLS IN LAUREL UPPER PALUXY FIELD UNIT
(A) Notwithstanding any other provisions contained in these Special Field Rules,
the location of injection and production wells in the Laurel Upper Paluxy Field Unit shall be
selected by the operator and shall be governed by the standards of geology and petroleum
engineering designed to promote the greatest ultimate recovery of hydrocarbons contained
in the pool. However, no well may be drilled, injected into or produced from said pool
nearer than 165 feet from any exterior boundary of the fieldwide unit, except upon permit
issued by the Mississippi State Oil and Gas Board, after notice and hearing.
(B) The-operator may drill either injection or producing wells utilizing directional
or horizontal drilling techniques designed to increase the ultimate recovery of hydrocarbons
contained in the pool without notice and hearing; provided, however, that (1) no portion of
the wellbore located within the unitized interval or horizon of any such well so drilled shall
be nearer than 165 feet from any exterior boundary of the Laurel Upper Paluxy Field Unit,
except upon permit issued by the Mississippi State Oil and Gas Board, after notice and
hearing, and (2) the operator shall file a directional survey and other information required
by rule or written policy of the Board after completion.
(C) Furthermore, the operator may drill either injection or producing wells on the
Laurel Upper Paluxy Field Unit utilizing directional or horizonal drilling techniques as
hereinabove described regardless of whether the surface location of such wells is within
or outside the unit boundaries of the fieldwide unit.
10.4 PRESSURE MAINTENANCE AND SECONDARY RECOVERY PROGRAM
AUTHORIZED
Coho Resources, Inc., as operator of the Laurel Upper Paluxy Field Unit, is hereby
authorized to conduct and carry out secondary recovery, pressure maintenance,
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repressuring operations, cycling operations, water flooding operations, and the injection
of extraneous substances in the Laurel Upper Paluxy Field Unit, and any combination
thereof, or any other form of joint effort calculated to substantially increase the ultimate
recovery of oil or gas, or both, from the fieldwide unit as is authorized by the Plan of
Unitization placed into effect by the Mississippi State Oil and Gas Board. The operator
may use for injection purposes existing wells located in said Laurel Upper Paluxy Field Unit
which may be converted to injection wells or wells may be drilled on said fieldwide unit for
such purposes. Any such wells drilled as injection wells or converted to injection wells by
the operator on the fieldwide unit as a part of pressure maintenance and/or secondary
recovery operations may be approved by the Mississippi State Oil and Gas Board on
administrative permit, without notice and hearing, upon the operator filing with the Board
a duly executed FORM 2, the required permit fee for each such well, and all evidence and
information required under Statewide Rule 63. In addition, existing fieldwide unit injection
wells may be converted to fieldwide unit producing wells on administrative permit, without
notice and hearing, upon the operator filing with the Board a duly executed FORM 2, the
required permit fee for each such well, and all other evidence and information the Board
may require.
10.5 ALLOCATION OF PRODUCTION
The allowable for the Laurel Upper Paluxy Field Unit shall be established by the
Mississippi State Oil and Gas Board. The allowable production of the said fieldwide unit
may be produced from any well or wells on said fieldwide unit; provided, however, that no
well shall be operated in such a manner as to cause waste as defined by the Laws of the
State of Mississippi.
10.6 SURFACE STORAGE. MEASUREMENT AND TRANSFER SYSTEMS
(A) The operator of the Laurel Upper Paluxy Field Unit may maintain such
separators, stock tanks, metering devices, connections and storage facilities as it deems
necessary to accurately measure the total production from the fieldwide unit. Separate
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measurement or storage for the wells and leases within the fieldwide unit shall not be
required.
(B) Automatic custody transfer systems which automatically test, sample,
measure and transfer the production from the operator to the purchaser are hereby
authorized in said fieldwide unit. Such systems will be equipped with a sampling device
which will take a representative sample of the total production passing through the system
in order that the specific gravity and basic sediment and water content can be determined.
Each custody transfer system will be equipped with a volume displacement type metering
device which registers the volume of oil passed through it in barrels or multiples thereof.
RULE 11 - PRESSURE MAINTENANCE AND SECONDARY RECOVERY
OPERATIONS/MULTIPLE UNITIZED POOLS
(A) Notwithstanding any other provisions contained in these Special Field Rules,
Coho Resources, Inc., as the Operator of the Laurel Mooringsport Field Unit, the Laurel
Rodessa Field Unit, the Laurel Sligo Field Unit, the Laurel 9700' Paluxy Field Unit, the
Laurel Lower Tuscaloosa Stringer Field Unit and the Laurel Upper Paluxy Field Unit, is
hereby authorized to conduct and carry out pressure maintenance and secondary recovery
operations on said fieldwide units utilizing Class II enhanced oil recovery injection wells
which simultaneously inject saltwater and other produced fluids into multiple unitized pools
utilizing a single string of injection tubing in such wells.
(B) Authority to drill and/or convert and to operate Class II enhanced oil recovery
injection wells for pressure maintenance and secondary recovery operations utilizing the
simultaneous injection of saltwater and other produced fluids into multiple unitized pools
through a single string of injection tubing on said fieldwide units may be approved by the
Mississippi State Oil and Gas Board upon administrative permit, without notice and
hearing, upon the Operator filing with the Board a duly executed FORM 2 and the required
permit application fee for each such well, and all evidence and information required under
Statewide Rule 63, and subject to the Operator monitoring the profile of injected fluids in
such wells on a periodic basis consisting of Radioactive Tracer Surveys (RTS's) and/or
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production logs.
(C) Class II enhanced oil recovery injection wells utilized for pressure
maintenance and secondary recovery purposes into multiple unitized pools on said
fieldwide units may be drilled and completed utilizing horizontal drilling techniques and
subject to the spacing requirements set forth in Rule 3.3, Rule 6.3, Rule 7.3, Rule 8.3, Rule
9.3 and Rule 10.3 of these Special Field Rules.
RULE 12 - MAXIMUM EFFICIENT RATE OF PRODUCTION/OIL
ALLOWABLE FOR PRODUCTION FROM HORIZONTALLY
DRILLED AND COMPLETED AND/OR RECOMPLETED
EUTAW-CHRISTMAS SAND OIL POOL WELLS
The maximum efficient rate of production for horizontally drilled and completed
and/or recompleted wells producing from the Eutaw-Christmas Sand Oil Pool is such that
any well horizontally drilled and completed and/or recompleted in and producing from the
Eutaw-Christmas Sand Oil Pool shall be granted a maximum daily production allowable not
to exceed 250 barrels of oil per day (BOPD) for each such well, subject to the adjustments
pursuant to Statewide Rule 35-A.
RULE 13 - APPLICABILITY OF STATEWIDE RULES
13.1 All rules and regulations contained in Statewide Order No. 201-51, and any
amendments thereto, not specifically covered in the foregoing Special Field Rules are
hereby adopted and shall apply to said field.
13.2 The Board expressly reserves the right, after notice and hearing, to alter,
amend or repeal any and all of the foregoing Special Field Rules, or to grant exceptions
to all or any part thereof.
- END OF SPECIAL FIELD RULES -
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