TO AMEND THE SPECIAL FIELD RULES S$5LSLL«ftBP f.(« … 1999-11-15.pdfin the state oil and gas...

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.


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.


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:


Section 1: All

Section 2: East Half (E 1/2)

Section 12: North Half (N 1/2)


Section 6: All

Section 7: Northwest Quarter (NW 1/4)


Section 31: All


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









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.




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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


Dual Induction - SFL Log of the Pan Canadian Petroleum Company - City of Laurel 6-6 No.




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


Dual Induction - SFL Log of the Pan Canadian Petroleum Company - City of Laurel 6-6 No.




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


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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


3.3 The 9700' Paluxv Sand Oil Pool in the Laurel Field shall be construed to mean


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


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


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


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


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


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:


Section 36: All that part of the SE 1/4 of SE 1/4 lying South of

the Railroad Right-of-Way.


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.

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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.


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:


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;


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.


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



W 1/2 of SW 1/4 of SW 1/4 of SW 1/4 of SW 1/4


Section 1: SE 1/4 of SE 1/4;

N 1/2 of SW 1/4 of SE 1/4 and


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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


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;


SW 1/4 of SE 1/4 of SW 1/4 of NE 1/4;



E 1/2 of NW 1/4 of NE 1/4 of NE 1/4.


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


the location of injection and production wells in the Laurel Rodessa Field Unit shall be

-14-






(B) The operator may drill either injection or producing wells utilizing directional

or horizontal drilling techniques designed to increase the ultimate recovery of hydrocarbons


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,





Laurel Rodessa Field Unit utilizing directional or horizonal drilling techniques as




AUTHORIZED

Coho Resources, Inc., as operator of the Laurel Rodessa Field Unit, is hereby



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.


The allowable for the Laurel Rodessa Field Unit shall be established by the


may be produced from any well or wells on said fieldwide unit; provided, however, that no




(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:


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;


-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.


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



W 1/2 of SW 1/4 of SW 1/4 of SW 1/4 of SW 1/4


Section 1: SE 1/4 of SE 1/4;

■ N 1/2 of SW 1/4 of SE 1/4 and


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


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;


SW 1/4 of SE 1/4 of SW 1/4 of NE 1/4;

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E 1/2 of NW 1/4 of NE 1/4 of NE 1/4.


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



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


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








-19-


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.


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.


AUTHORIZED

Coho Resources, Inc., as operator of the Laurel Sligo Field Unit, is hereby



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

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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.








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:


Section 36: All that part of the SE 1/4 of SE 1/4 lying South of the Railroad

Right-of-Way.

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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,



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


the location of injection and production wells in the Laurel 9700* Paluxy Field Unit shall be




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be nearer than 165 feet from any exterior, boundary of the Laurel 9700' Paluxy Field Unit,



. by rule or written policy of the Board after completion.


Laurel 9700' Paluxy Field Unit utilizing directional or horizonal drilling techniques as




AUTHORIZED

Coho Resources, Inc., as operator of the Laurel 9700' Paluxy Field Unit, is hereby



W of extraneous substances in the Laurel 9700' Paluxy Field Unit, and any combination




may use for injection purposes existing wells located in said Laurel 9700' Paluxy Field Unit



the operator on the fieldwide unit as a part of pressure maintenance and/or secondary


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may require.


The allowable for the Laurel 9700' Paluxy Field Unit shall be established by the






(A) The operator of the Laurel 9700' Paluxy Field Unit may maintain such




required.








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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:


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,



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


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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.





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.


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.


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


a duly executed FORM 2, the required permit fee for each such well, and all other evidence

and information the Board may require.


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.


(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.




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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;


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;


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



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

-28-

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


the location of injection and production wells in the Laurel Upper Paluxy Field Unit shall be






(B) The-operator may drill either injection or producing wells utilizing directional




be nearer than 165 feet from any exterior boundary of the Laurel Upper Paluxy Field Unit,





Laurel Upper Paluxy Field Unit utilizing directional or horizonal drilling techniques as




AUTHORIZED

Coho Resources, Inc., as operator of the Laurel Upper Paluxy Field Unit, is hereby


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of extraneous substances in the Laurel Upper Paluxy Field Unit, and any combination




may use for injection purposes existing wells located in said Laurel Upper Paluxy Field Unit



the operator on the fieldwide unit as a part of pressure maintenance and/or secondary








may require.


The allowable for the Laurel Upper Paluxy Field Unit shall be established by the






(A) The operator of the Laurel Upper Paluxy Field Unit may maintain such



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required.








RULE 11 - PRESSURE MAINTENANCE AND SECONDARY RECOVERY

OPERATIONS/MULTIPLE UNITIZED POOLS


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.


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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TO AMEND THE SPECIAL FIELD RULES S$5LSLL«ftBP f.(« … 1999-11-15.pdfin the state oil and gas...

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