GAS F I L E D OF - Utah Division of Oil · Exhibit A - Affidavit of Publication from Newspaper...

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BEFORE THE BOARD OF OIL, GAS AND MINING F I L E D sEP 2 3 2016 SEORETAAT BOARD OF OIL, GAS & MINING DEPARTMENT OF NATURAL RESOURCES STATE OF UTAH IN THE MATTER OF THE REQUEST FOR AGENCY ACTION OF AXIA ENERGY II, LLC. FOR AN ORDER POOLING ALL INTERESTS, INCLUDING THE COMPULSORY POOLING OF CERTAIN NON-CONSENTING OR UNLOCATABLE owNERS, IN TV/O 1,280-ACRE (OR SUBSTANTIAL EQUIVALENT) DRILLING LINITS ESTABLISHED BY THE BOARD'S ORDER IN CAUSE NO. 139-138 IN SECTIONS 29 AND 32, AND 28 AND 33, TOWNSHIP 2 SOUTH, RANGE 1 V/EST, USM, DUCHESNE COLINTY, UTAH. NOTICE OF FILING AFFIDAVITS OF PUBLICATION Docket No. 2016-017 Cause No. 139-139 Petitioner Axia Energy II, LLC ("Axia"), by and through its counsel of record, Fabian VanCott, hereby respectfully gives notice to the Board of Oil, Gas and Mining, and all interested parties to the above-captioned matter of the filing of the two attached Affidavits of Publication, of the "Second Revised Notice of Opportunity to Lease or Participate in Oil and Gas V/ell(s) and of Filing of Request for Agency Action and Hearing thereon." The two attachments are as follows: Exhibit A - Affidavit of Publication from Newspaper Agency Company, LLC dlbla Utah Media Group Legal Booker, the agent for the Deseret News and the Salt Lake Tribune, dated September 14,2016; and Exhibit B - Affidavit of Publication from the Uintah Basin Standard, dated September 19,2016.

Transcript of GAS F I L E D OF - Utah Division of Oil · Exhibit A - Affidavit of Publication from Newspaper...

BEFORE THE BOARD OF OIL, GAS AND MINING F I L E DsEP 2 3 2016

SEORETAAT BOARD OFOIL, GAS & MINING

DEPARTMENT OF NATURAL RESOURCES

STATE OF UTAH

IN THE MATTER OF THE REQUEST FORAGENCY ACTION OF AXIA ENERGY II,LLC. FOR AN ORDER POOLING ALLINTERESTS, INCLUDING THECOMPULSORY POOLING OF CERTAINNON-CONSENTING OR UNLOCATABLEowNERS, IN TV/O 1,280-ACRE (ORSUBSTANTIAL EQUIVALENT)DRILLING LINITS ESTABLISHED BYTHE BOARD'S ORDER IN CAUSE NO.139-138 IN SECTIONS 29 AND 32, AND 28AND 33, TOWNSHIP 2 SOUTH, RANGE 1

V/EST, USM, DUCHESNE COLINTY,UTAH.

NOTICE OF FILINGAFFIDAVITS OF PUBLICATION

Docket No. 2016-017

Cause No. 139-139

Petitioner Axia Energy II, LLC ("Axia"), by and through its counsel of record, Fabian

VanCott, hereby respectfully gives notice to the Board of Oil, Gas and Mining, and all interested

parties to the above-captioned matter of the filing of the two attached Affidavits of Publication, of

the "Second Revised Notice of Opportunity to Lease or Participate in Oil and Gas V/ell(s) and of

Filing of Request for Agency Action and Hearing thereon." The two attachments are as follows:

Exhibit A - Affidavit of Publication from Newspaper Agency Company, LLC dlbla

Utah Media Group Legal Booker, the agent for the Deseret News and the

Salt Lake Tribune, dated September 14,2016; and

Exhibit B - Affidavit of Publication from the Uintah Basin Standard, dated September

19,2016.

Dated this 23rd day of September,2016.

FABIAN VANCOTT

KellerMatthew S. Brahana215 South State Street, Suite 1200Salt Lake City, Utah 84020Phone: 801.531.8900Fax: 801.596,2814mkeller@fabianvancott. commbr ahana@fabianvancott. comAttorneys for Axia Energy II, LLC

CERTIFICATE OF MAILING

I hereby certify that on this 23rd day of September ,2016,I caused a true and

correct copy of the foregoing Notice of Filing Affidavits of Publication to be served viae-mail to the following:

Steven F. Alder, Esq.Melissa Reynolds, Esq.Assistant Attomeys GeneralAttorneys for the Division of Oil, Gas

And Mining1594 V/est North Temple, Suite 300P.O. Box 145801Salt Lake City, UT [email protected]@utah.gov

Michael S. Johnson, Esq.Assistant Attorney GeneralAttorney for the Board of Oil, Gas

and Mining1594 V/estNorth Temple, Suite 300P.O. Box 145801

Salt Lake City, UT [email protected]

Exhibit A - Affidavit of Publication from Newspaper Agency Company, LLC dlbla

Utah Media Group Legal Booker, the agent for the Deseret News and the

Salt Lake Tribune, dated September 14,2016

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N ftE A{ATTR OFÌHÉ RK¡LESÍ FOR AGE{CY ACÍIO{ OF AXIA E\¡RGY II, LLc" FORAN ORQB P9OUI.¡G ALL rNrRESfS, hn'UDÛ.G nf @torpursoRy pooLÎ.¡ö oF cR-TA|N I.¡Oò|-CONSENIhIG OR II{LOCÀTABI.E OW¡RS. tN TWO t 28GAcnE {OR SJB-sfA¡.{IIAt EQIJIVAIF'¡I) DRIITII.IG I.A.IITS ESÍABLISHÉD BY lHE dOARD'S CiiÐR iNCAUSE Ì.rO. r39-t38 rN SECflONS 29 Atù 32, A¡.¡D 28 At$ 33. TOWt\SHtp 2SOUIH, RAÀ|GE I wESf, US^, DUGI€S|\|E COt 'lTY;t lAH.

BEFORE T}IE BOARD OF OIL GAS AI9 MINhlG

DEPARÍMB.{T OF NA'TIJRAL RESOTNCES

STA1E OF TÍAH

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Exhibit B - Affidavit of Publication from the Uintah Basin Standard, dated September

19,2016.

AFFIDAVIT OF PUBLICATIOI{

County of Duchesne,STA|E OF UTAH

I, CYNTHIA KLEINFELTER on oath, say that I amthe LEGALS MANAGER of the Uintah Basin Standard,a weekly newspaper of general circulation, published atRoosevelt, State and County aforesaid, and that a certainnotice, a true copy of which is hereto attached, was publishedin the full issue of such newspaper for J- consecutiveissues, and that the *ur ott th. / au,of that the last publicatronof such notice was in the issue of dated the

11 auv of that saidnotice was publ on Utahlegals.com on the same day as

the first newspaper publication and the notice remained onUtahlegals.com until the end of the scheduled run.

/'o*/u ?ú*,¿¿/õo,

SECONDREVISED

NOTICE OFOPPORTU.NITY TO

LEASE ORPARTICIPATE

IN OILANDGAS WELL(S)

AND OFFILING OFREQUEST

FORAGENCYAC-

TION ANDHEARINGTHEREON

rÉlcnls MANAGER

Subscribed and sworn to before me on this

14 d^v /"\ tb

Notary Public

BEFORE THEBOARD OF OIL, '

GASAND MININGDEPARTMENT

OF NAIURALRESOURCES

STAIE OF UTAHDocket No.

2016-017Cause No.

139-139. IN THE

MATTER OF THEREQUEST FORAGENCYACTIONOFAXIAENERGYII, LLC. FORANORDER POOLINGALL INTERESTS,INCLUDINGTHECOMPULSORYPOOLING OFCERTAINNON-CONSENTING ORUNLOCATABLEOWNERS, IN TV/O

i 1,280-ACRE (ORSUBSTANTIALEQUIVALENT)

lDRILLING TINITS

issrasLrsrlsoBY THE BOARD'SORDER IN CAUSENO. 139-138INSECTIONS 29 AND32, AND 28 AND33, TOWNSHIP 2

SOUTH, RANGE1 WEST, USM,

of

by Cynthia Kleinfelter

20

ERs0llKvÚlLHCODYümrl0iPUEUC'SNTEilonßY t58C9BoilttlsSlcon

ÉxP.coillH.

DUCHESNECOU{TY, UTAH.

AXIAENERGYII, LLC("AXIA") TO:

l,CHARLENEDANIELS,NEDV.ADAMS, DJADAMS, REBECCASMITH, PATzuCETAYLOR, MARYJANE SHRIBER,SUSAN CHAPPELL,KAREN HEATON,PAUL ORMONSULLIVAN,KIRK LEONSULLIVAN, RALPHO. SULLIVAN,KENT SULLIVAN,OWEN SULLIVAN,TOMMYJ.PETERSON,DAVID RANDALLSULLIVAN, JOHNK. CHIPMAN,JESSICA BEHTJNIN,CHARLESBEHLTNIN, FAWNMCNEAL, FRANKO.ADAMS, RHEAS. RICHENS F/K/ARHEACONRAD,DAWNA. COFFEE,BLAIRWADEWALKER; LAURAJANE LAYTON;ALIBEHUNÏN;RYANC. FORGY; WYATTENERGT LLC;DEREK BEHI.ININ;

2.THEESTATES, THEIRPERSONALREPRESENT-AIIVES,ALLHEIRS ORDEVISEES, ANDANYANDALLOTHER PARTIESCLAIMINGANYRIGHT, TITLE, ORINTERESTIN THEOILAND GAS INTHE CAPTIONEDDUCHESNECOUNTY, UTAHLANDS BYTHROUGH ORI.INDERANY OFTHE FOLLOMNGESTAÏES: THEESTATE OF JACKYOTING MCLEA;THE ESTATE OFJ. V. MCLEA;THE ESTATE OFFAYEN. JENSENA/K/AFAYEN. HULL; THEESTATE OF OMNIO. WINTERTON;THE ESTATEOF H. CARMAWINTERTON;THE ESTATEOF HORACE L.ALLREDA/K/AH. L. ALLRED;THE ESTATE OFCHARLOTTEA. DAVIS; THEESTATE OFMELVIN B.

--ALLRED; THEESTATE OFJOHNALVINANDERSON;THE ESTATE

THE ESTATE (2)toOF RICHARD S. declare you as aJOHNSON; THE "non-consentingESTATE OF LYNN owner" in any of theDAVID GOODRICH; following wells onTHE ESTATE OF the captioned landsCAROL JEAN (the "Subject Wells")HOLLENBECK in which you own anNKIA interest: (a) ButcherCAROL JEAN BVItE32-144H-21;HOLLENBACK; and (b) Butcher ButteTHE ESTATE OF 33.34H-21;RAMONAHOLMES (3)toMCCALL; THE establish the acreage-ESTATE OF BERTA weighted averageCURTIS VITTIER; royalty payments toTHE ESTATE OF such non-consentingJAY D. LAMBERT; owners and the costsTHE ESTATE OF ofpluggingand aban-MARY W. BARNES; doning the SubjectTHE ESTAIE Wells;OF LUCILE W. (4) toBRANAGAN; impose a non-THE ESTATE consent penaltyOF GREGORY not less than 150%BRANAGAN; and not in excessTHE ESTATE of 400Yo - Axia isOF CHARLES requesting a300o/oRAY WINEGAR; penalty - of yourTHE ESTAIE share of the costs ofOF CHARLENE staking the location,WINEGAR wellsite prepara-STOKES; THE tion, rights-of-way,ESTAIE OF JETTA rigging up, drilling,W. WALKER; reworking, recom'-THE ESTATE pleting, deepening orOF CLARENCE plugging back, test-KAYWALKER; ing and completingTHE ESTATE OF the Subject Wells,MARGO MULLER including the costF/K/A MARGO of equipment in theRICHARDS; well to and includingTHE ESTATE OF the wellhead con-DORIS POTTER; nections, as jirst andTHE ESTATE OF reasonable compensa-MARY HALLETT; tion to the consentingTHE ESTATE OF owners, subject to theMARY DULEN; payment of the aver-THE ESTATE OF age weighted fee roy-RICHARD POTTER alty to be determinedAiKlA RICHARD by the Board duringLEE POTTER, the recovery period,SR.; THE ESTATE among other relief;OFLEONARD andPOTTER, JR.; AND (5) to.THE ESTAIE OF establish that for anyEDNAWHITE; additional well(s)

3. drilled pursuant to theANYAND ALL 139-138 Order andOTHER PERSONS located inthe29l32CLAIMINGANY DU orthe 28l33DURIGHT, TITLE, ("Future Wells"), allOR INTEREST interests are and willIN OR TO THE be bound to the termsOILAND GAS and conditions of thePRODUCED FROM Board's Order in thisANY RESERVOIRS Cause, upon the satis-BENEATH THE faction of the follow-PROPERTY ing by Axia or anyDESCzuBED subsequent operatorHEREIN AND IN (the "Operator"):THE REQUEST (a) before drilling,FORAGENCY the Operator shallACTION FILED provide notice of itsIN THE ABOVE- intent to drill a FutureCAPTIONED Well, estimatedMAITER, OR costs, and invite eachTO THE RIGHT interest owner toTO DRILL INTO, lease or participatePRODUCE FROM, (the "Invitation")ORAPPROPRIATE in each Future WellSUCH OIL OR GAS Operator intends to

drill, subject to the(COLLECTIVELY terms ofthis Order;"NOTICED (b) Operator shallPARTIES") provide each interest

Notice is owner at least thirtyhereby given that (30) days to respondAxia filed a Request to the Invitation;for Agency Actþn _ e¡fd (c) !f any irrlçr-

rules to completenotice to the unlocat-able parties listedherein, whose where-abouts cannot be

ascertained throughreasonable diligence.

Youshould contact RickMadison, conûactlandman forAxia, at1430 Larimer Street,Suite 400, Denver,Colorado 80202,Telephone: (720)746-5200, regardingthe opportunity: (1) tolease your interest inthe Captioned Lands

. ifyou are currently anunleased oil and gas

owner; (2) to consentto pool your interestifyou have executedan oil and gas leaseofyour interest andyour lease does notauthorize the lesseeto pool your interestwithout your consent;or (3) to participate,as a working interestowner by enteringinto ajoint operat-ing agreement andby paying your pro-portionate share ofthe costs ofdrillingand completing theSubject Well. Failureto respond to theRequest or to par-ticipate in the SubjectWells by entering intoa lease, consenting tothe pooling ofyourleased interest (ifyouare leased and yourlease does not containa pooling provision),or by paying yourshare ofthe .irillingand completing costsfor each Subject Wellin which you own aninterest, will resultin you being deemeda non-consentingowner, and therefore,subject to force pool-ing and a possiblenon-consent penaltyofbetween l50Yoand400Yo thaf may beimposed by the Boardat the September 28,2016 hearing.

Objectionsto the Request shallbe filed with theSecretary oftheBoa¡d at the addressindicated above andserved upon Axia'scounsel identifiedbelow no later thanSeptember 9,2016.Untimely receivedobjections may beconsidered by theBoard at or before theregularly scheduledhearing for goodcause shown. A partymust hle a timelywritten objection orother response inorder to participate as

a parly at the Board, hearine- NaturaLner-

call Julie Ann Carterat(801) 538-5277,atleast three workingdays prior to the hear-ing date.

Please gov-em yourselfaccord-ingly.

Publishedin the Uintah BasinStandard September 6and 13,2016.

ESTATE OFMELVIN B.

-ALLRED; THEESTATE OFJOHNALVTNANDERSON;THE ESTATEOF DANIELO'CONNOR;THE ESTATEOF KENTONB. SHRIBER;THE ESTATEOF MELVINMECHAM; THEESTATE OF FRANKBUCHANAN; THEESTATE OF BERYLBENNION; THEESTATE OF NELLIECHIPMAN;THEESTATE OF MARYLOUISEADAMSSASSIN; THEESTATE OF VELOYOLSONADAMS;THE ESTAIE OFLYDIAPETERSON;THE ESTATE OFRICHARD W.BUCHANAN;THE ESTATE OFNEVAPRESCOTT;THE ESTATE OFVERNON DEEBUCHANAN; THEESTA|E OF JOHNR. BUCHANAN;THE ESTATEOF GEORGELEVERAINBUCHANAN;THE ESTATEOFANTHON B.CHRISTENSEN;THE ESTAIE OFKATE M. JEWKES;THE ESTATE OFROBERTDENNISSINGLETON;THE ESTATE OFALBERT DAVISMERKLEY; THEESTATE OF RONDOSULLIVAN;THE ESTATEOF ORMONSULLIVAN;THE ESTATEOF MERLINSULLIVAN;

(coLLECTtVELY"NOTICEDPARIIES")

Notice ishereby given thatAxia filed a Requestfor Agency ActiononAugust 10,2016(the "Request") withthe State of UtahBoard of Oil, Gas andMining (the "Board")seeking:

(1) thecompulsory'poolingofyour oil and gasinterest in some orall of the followinglands, all of which arelocated in DuchesneCounty, Utah:

Township 2South, Range 1 West,U.S.M

Sections28,29, 32, and,33

(the"Subject Lands").The Subject Landshave been estab-lished as two 1,280-acre (or substantialequivalent) stand-updrilling and spacingunits - one of whichcomprises Sections28 and 33 (the

' "28/33 DU"), andthe other of whichcomprises Sections29 and,32 (the'129132DU') - pursuant tothe Board's Orderentered on July I 8,2016 in Cause No.139-138 (the.,139-138 Order"), whichmodified the follow-ing Order previouslyentered by the Boardaffecting the SubjectLands: (a) OrderenteredAugust 11,1971 in Cause No.131-14; (b) Orderentered onApril 17,

- 1985 in Cause No.139-42; and (c) Orderentered on May 9,2012 in Cause No.139-90;

urrtr, suDJeo[ [o Ineterms ofthis Order;(b) Operator shallprovide each interestowner at least thirty(30) days to respondto the Invitation;and (c) ifany inter-est owner fails totimely respond to theInvitation or refusesto either lease orparticipate in theFuture Well, thenthat interest ownershall be considereda Non-ConsentingOwner for the noticedFuture Well, andshall subject the Non-Consenting Ownerand its interest in theFuture Well to theBoard's Order in thisCause, including thenon-consent penalt¡restablished by theBoard in this Cause.

Additionally, noticeis hereby giventhat the Board willconduct a hear-ing on the Requeston Wednesday,September 28,2016at 9:00 a.m., or assoon as practicablethereafter, in theAuditorium oftheDepartment ofNatural Resources,1594 West NorthTemple, Salt LakeCify, Utah. The hear-ing will be conductedas a formal admin-istrative adjudica-tion in accordancewith the rules of theBoard as set fonh inUtah AdminisfiativeCode R641 et seq. asprovided for by UtahCodeAnnotated gg

63G-4-101 through601. This Noticeis being publishedpursuant to an Orderof the Board and inaccordance with theBoard's procedural

hearlñg for goodcause shown. A partymust file a timelywritten objection orother response inorder to participate asapafty at the Boardhearing. Natural per-sons may appear andrepresent themselvesbefore the Board. Allother representationby parties before .

the Board will be byattomeys licensedto practice law inthe State of Utah, orattomeys licensedto practice law inanother jurisdictionwhich meets the rulesof the Utah State Barfor practicing beforeUtah courts. Attomeyrepresentation may bewaived by the Boardupon petition andgood cause shown.

Persons interestedin this matter mayparticipate pursuantto the proceduralrules ofthe Board.The Request and anysubsequent pleadingsmay be inspectedat the offrce of theSecretary to theBoard, 1594 WestNorth Temple, Suite1210, Salt Lake City,Utah 84116 ((801)538-5277), or copiesobtained by con-tacting Petitioner'scounsel H. MichaelKeller or MatthewS. Brahana at theaddress and telephonenumber listed below.A party who fails toattend or participatein the hearing may beheld in default.

Pursuant to .

the Americans withDisabilities Act, per-sons requiring auxil-iary communicativeaids and services toenable to participatein this hearing should