6068`-6920`
Transcription
6068`-6920`
DIVISION UTAH REMARKS: DATE WELL. FILED LAND: LOG-- ) - DRILLING APPROVED: SPUDDED IN: COMPLETED: WATER GAS AND SANDS MINING LOCATION CTED It SUB. - REPORT/Aso STATE LEASE PUBLIC NO. LEASE NO. UTAH 0144869 INDIAN 1-27-78 - - - ... TO PRODUCING: PUT 5863' PRODUCTION: GRAVITY ILES LOGS OIL 8 - & PATENTED FEE INITIAL ELECTRIC OF 4-5-78 MCF/D A.P.I. GOR: PRODUCING TOTAL ZONES: DEPTH: WELL ELEVATION: DATE ABANDONED: Natural Natural FIELD: UNIT: COUNTY: WELL NO. 6068'-6920' 7025' 4785' Wasatch KB Buttes Buttes Uintah Natural 1037' LOCATION 20E Buttes 21-20B Unit FT. FROM (N) g LINE API 1033' FT. FROM (E) LINE. NO: 43-047-30359 NE NE I/4-l/4 SEc- 20 GEOLOGIC reen River 1704 ' wasateh 5210' chapita Weil a BucK Canyon TOPS: 57|4' 6224 muconomme P.O.Box250 Big Piney. Wyoming 83113 Tel€phone (307) 276-3331 Belco Petroleum Corporation District Engineer W. Guynn, Edgar Mr. Geological States Survey United Federal Building 8440 Utah 84138 Lake Citý, Salt RE: Natural NE NE / Buttes Uintah Section County, Natural SW NE Buttes Section Uintah Natural c NE JAN 261978 NE Uintah County, Buttes Section County, Natural Buttes SW NW Section Uintah Natural SE SE Uintah Dear Plans 21-20B Unit 20, T9S, R20E Utah 22-27B Unit R21E T10S, 27, Utah 24-32B Unit R20E 32, T9S, Utah 25-20B Unit 20 T9S, , Utah Unit R21E 26-13B 13, T10S, Utah R20E Guynn: Mr. Attached BOP Plats, Survey County, Buttes Section County, 1978 24, January for the for Surface Applications are Diagrams and Permit Use and to Drill, Operating wells. referenced truly Very BELCO Leo R. District yours, PETROLEUM CORPORATION Schueler Manager RAS/rgt Attachments cc: Division Utah Gas Producing Houston Denver of Oil, Enterprises, Gas, & Mining Mr. Inc., Wendell C e CATE* SUBMIT IN T. 9-3310 Forrn (May 1963) (Other UNITED STATES DEPARTMENT OF THE INTERIOR GEOLOGICAL ou instructions reverse side) G. OF WORK TYPE b. DESIGNATION 6. IF INDIAN, 7. MUNLTIPLE NGLE WAELL AND SERIAL ALLOTTEE OR TRIBE NAME UNIT 67 NAME AGREEMENT 8. FARM OR LEASE 9. WELL NO. NAME OF OPERATOR 2. NAME 3. ADDRESS 4. LOCATION BELCO DEVELOPMENT CORPORATION ••• OF OPERATOR At surface PNL & 1033' 1037' prod. proposed ' (NE NE) PEL IN FIELD DIRECTION AND NEAREST FROM TOWN OR WILDCAT POOL, 11. YM zone MILES AND ORAREL . DSB SAME DISTANCE 10. ents.*) with any State require clearly and in accordance location (Report OF WELL WTOMING 83113 BIG PINET, P. O. BOX 250, OR POST BC. 20, JAN 130 1978 OFFICE* . COUNTY R20E TSS, 13. OR PARISH INTAR LOCATION PROPERTY (Also 16. PROM PROPOSED* TO NEAREST OB LEASE LINE, 15. DISTANCE to nearest gaang FT. unit line, drlg. LOCATION* FROM PROPOSED DISTANCE COMPLETED, DRILLING, WELL, TO NEAREST FOR, ON THIS LEASE, R. OR APPLIED 2L ELEVATIONs (Show whether 4770' NAT. 7 19. CJES 17. LEASE IN NO T V PROPOSED ARY OR CABLE DEl'TÏg SIZE CASING WEIGHT OF CASING 9-5/8" 4½• 12¾" 7-7/8" TOOLS DATE APPROI. WORK WILL START* I 2/78 GL HOLE UTAN ACRES ASSIGNED WELL yi 22. PROPOSED OF OF RT, GR, etc.) DF, 23. SIZE NO, STATE AwaA 1 mO if any) 18. PER FOOT x-44 x-44 36.06 AND CEMENTING SETTING PROGRAM QUAN DEPTH TY OF EMENT ne ey 266 Tann* 6. 11.46 600 gy Uinnah Surf ace For mation 5180 ' Est. Log Tops a Green R Lver 1440 ' , Wasatch a 6525'. at 5180', Anticipate gas in the Wasatch 5760', New cahing as above. Desighs Casing double gate BOP. Test to 1000 poi prior Min. 80P: 8" 3000 pai hydraulic Test surface daily a on each trip for bit. to drilling plag. med weighted to 10 . 5 ppg will Mud Programs A water base gel-chemical be used to eentrol 7. Auxiliary Equips 1. 2. 3. 4. 5. - . stabbing 9. anticipated. No abnormal IN ABOVE zone. If DESCRIBE SPACE proposal or problems approx 2/78 pressures begin PROPOSED is to drill PROGRAM or deepen logs. w/Caliper will Operations . ohoke manifo14 mud monitoring. Visual CNL-FDC-GR Run DIL, the well. 2" 3000 psî and Valve 8. 10 N OTHER LL 14. LEASE 42-R1425. No. OF WELL TYPE OW At Bureau UTE (somrAes) PLUG BACK O DEEPEN O DRILL approved. $7AR Ô144ggg SURVEY APPLICATIONFOR PERMITTO DRILL,DEEPEN,OR PLUG BACK 1a. Form Budget : If proposal directionally, give Poesible and kill line, 2 DST's. No are anticipated. and end approx 3/78 oock, kelly oores are . productive zone and proposed or plug back, give data on present is to deepen and true vertical depths. locations and measured pertinent data on subsurface new productive Give blowout SIGNEDprO DATE TITLE (This PERMIT space for Federal NO 4 or State office use 047- 3 APPROVAL DATE TITTF APPROVEDBY CONDITIONS APPROVED BYTHE DIVISIONOF 9 OF APPROVAL, IF ANY : *See InstructionsOn Reverse DATE: . 7. Hva Bra //jaanunc. 8"- 3000 Grr ßoP DousŒ r' 3000 Û/is;N6 ÑANGC ininun B STATE OF UTAH DIVISION OF OIL, GAS ANDMÏNING FILE ** Date: y NOTATIONS ** . Operator: Location: Sec. File Prepared: card Indexed: T. () County: R. / / ered / on N.I.D.: co pletion 1 sheet: API NUMBER: CHECKED BY: Administrative Assistant Remarks: Petroleum Engineer rl marks: Di Remarks: INCLUDEWITHIN APPROVALLETTE Bond Order Required: : Survey / No. / / Surface Plat Required: Casing Change to Rule C-3feb Topographic exception/company owns or controle a 660' radius proposed of site / within 0.K. Rule C-3 / / 0.R. In /L acreage / Unit / 9-8810 Forrn 'JCATE• BUBMIT IN S • 1963) (May UNITED STATES DEPARTMENT OF THE INTERIOR on Instruertons (Other reverse 5. OF WORK TrPE b, GAS WELL 2. DESIGNATION OTHER ALLOTTEE OB TRIBE NAME AGREEMENT NATURAL BUTTES UNIT tr 8. FARM OR LEASE 9. WELL NO. NAME 21-208 OF OPERATOR ADDRESS P. BOX 250, O. 4. LOCATION prod. At proposed FEL 10. -- FIELD zone WILDCAT OR POOL, AND NBU WASATCH - eser 11. (NE NE) oa.ca. a / SAME 14. DISTANCE IN 10. DISTANCE LOCATION PROPERTT TROM PROPOSED* AND MILES 976 v equi any S with in accordance and clearly FNL & 1033' 1037' WYOMING 8 BIG PINEY, location (Report WELI. Or At surface FROM DIRECTION OR POST TOWN NEAREST SEC. 20, p OFFICE* 12. COUNTY R20E T98, 13. OE PARISH TO NEAREST OR LEASE LINE, (Also to neareet maam FT. drlg. unit line, (Show whether 21. ELEVATIONS 19. PEOPOSED ACRES OF IN LEASE COMPLETED, R. NO. OF ACRES ASSIGNED WELL TO THIS 2Û. ROTARY 7200 , DEPTH ' 4770 ' NAT. GL CASING PROPOSED OF 12¼" 7-7/8" WEIGHT OF CASING BIZE HOLE w.n# 9-5/8" 44" Fornation Surface DATE 11.6# AND CEMENTING SETTING PER FOOT «-4 «-ss PROGRAM WILL START* , OF CEMENT QUANTITY DEPTH 200 ex 600 ax 700' 7706' Uin-:ah - 5180 ' Green River 1440 ' , Wasatch Est. Log Tops: at 5180 ' , 5760 ' , & 6525' Anticipate gas in the Wasatch Desigh: New cahing Casing as above. double BOP. Test to 1000 hydraulic gate BOP: 8 " 3000 psi Min. daily & on each trip for bit. to drilling surface plug. Test gel-chemical to 10.5 mud weighted Mud Program: base A water 2. WORK I 2/78 23. BIEE TOOLS OR CABLE ROTARY 22. APPROI. RT, GR, etc.) DF, 17. U LOCATION* PROPOSED DISTANCE FROM DRILLING, WELL, TO NEAREST OR APPLIED FOR, ON THIS LEASE, NO. g Lo I if any) 16. STATE UTAH UINTAH 1. NAME UTE (SURFACE) L I SINGLE ZONE BELCO DEVELOPMENT CORPORATION 18. NO. AND SERIAL OF OPERATOR NAME 3. LEASE 7. UNIT PLUG BACK O or war,r. Trra OIL WELL No. 42-R1425. UTAH 0144869 DEEPENO DRILL Œ Bureau 6. IF INDIAN, APPLICATION FOR PERMITTO DRILL,DEEPEN,OR PLUG BACK la. approved. side) SURVEY GEOLOGICAL Form Budget . 3. 4. 5. . 6. to control be used 7. well. Equip: 2 " 30 00 ps i choke manifold valve and visual mud monitoring. Auxiliary stabbing 8. Run CNL-FDC-GR DIL, anticipated. No abnormal 9. 10. IN ABOVE It eventNED proposal or problems 2/78 approx pressures begin DESCRIBE SPACE PROPOSED is to drill or PROGRAM deepen logs. w/Caliper will Operations zone. the : If proposal directionally, give 2 DST's. are anticipated. and end approx line No , ENGINEERING TECHNIÇIAN DATE RMOVEl(ORIG. CONDITIONS OF APPROVAL, cock kelly ,,,,..Dis CF IF ANY: NOTICEOF APPROVAL *See InstructionsOn Reverse , are 3/78. or State oflice une SGD.) E. W. GUYNN ppy will cores -O space for Federal . prior productive zone and proposed or plug back, give data on present is to deepen depths. and true vertical and measured data on subsurface locations pertinent TITLE (This Possible and kill psi were ... new productive Give blowout PROJECT BELCO PETROLEUM CORPORATION T 9 S, R 20 E, S.L.B.8 M. weil NE - NE I/4 Uintah N 8 9°4 7 W If 82 2/ I 42 warosat surres location, 20 8, Section County usir located as shown in the NE \/4 20, T 9S, R 20E, S.L.B.SM. Utah , . I I NOTE Elev o 1033 NATURAL BUTTES UN/T N-°2/-20B e Elev Ungraded Ground - Pt o a - a a East 200' 250' 200 20d 250 (Comp) - °o Ref .. 4770' West South 200 North 4771 4772 4768 4770 477I 4769 = u = = = = 90 60 20 70 10 96 20 OO o o ME 2454 40 5I 40 42 N 89°23 ENG NEEMNG UN . N 89°46'W W BOX Q U - VERNAL, I X = Section Corners " = 1000 Located a EAST UTAN F RST 84078 I / 19 ¯¯ S LAND / 78 NE R.K WEAT R Cold JB GLO Plot BFW F LE RVE S NG UTH -- -- - -- -- o --- --- -•- - - -- - , - in - > - . c m a m c Fkro 1Fauno •Phy.Ão'oci. r o rn o cz - o ro o = en oc - Land Use -- - me ·o -- - > - -- - G - - ., - - -. , mm en r- e g = o - r- etc o pills and leaks Trucks Well drilling Fluidremoval(Prod.wells facilities) Socondary Recovery Noise or obstruction of scenic views Mineral processing(ext.facilities) Others e Burning,noise, junk disposal Liquid effluent dischorge Transmission lines pipelines Doms o impoundments Others (pump stations comprossor stations - om -.. o o - o r:c m r- 44 -. , - o -1 9 - m o --; > a 2 - LEASF D E . WEU.NO. LOCATION E SEC. i ,T. FIELD ,R. COUNTY STATF ENVIRONMENTAL IMPACTANALYSIS ATTACHENT 2-B - I. PROPOSED ACTION // /// GASTEST WELLWITHROTARY TOOLSTO DRILL PAD.,N FT.X 3) TO CONSTRUCT / FT. WIDEX UT d FT. TD, FT. ANDA RE ERVE PIT FT. WIDEX /ÂÛ 2) TO CONSTRUCT A FT. X /ËÜ FT. MILESACCESSROADAND_UPGRADE MILESACCESSROADFROMAN EXISTINGANDIMPROVED ROAD. TO CONSTRUCT GAS 2. ÑO PROPOSESTO DRILL PRODUCTIONFACILITIES ONTHE DISTURBED AREAFORTHE DRILL PAD LOCATION AND NATURALSETTING (EXISTING ENVIRONMENTAL SITUATION). (D TOPOGRAPHY:' OR PLAINS IN AREA ROLLINGHILLS STEEPCANYON SIDES DISSECTEDTOPOGRAPHY NARROW CANYON FLOORS DESERT DEEPDRAINAGE SURFACEWATER (2) VEGETATION: (cULTIVATED) SAGEBRUSH NATIVEGRASSES PINION-JUNIPER ONER PINE/FIR FARMLAND 6) ) LANDUSE: MINING RESIDENTIAL AGRICULTURE OIL & GAS OPERATIONS Effects on Environment by Proposed Action (potential 3. SMALL OTHER LIVESTOCKGRAZING RECREATION INDUSTRIAL BEAR ELK ANTELOPE SPECIES ENDANGERED BIRDS MAMM L DEER WIll)LIFE: impact) EMISSIONSFROMTHE DRILLING RIG POWERUNITS ANDSUPPORTTRAFFIC EXHAUST IN THE LOCALVICINITY, ADDMINORPOLLUTIONTO THE ATMOSPHERE ENGINESWOULD .l.) ?) MINORINDUCEDAND ACCELERATEDEROSIONPOTENTIALDUETO SüRFACE AND SUPPORTTRAFFIC USE. I)ISTURBANCE . 3) EQUIPMENTAND MINORVISUAL IMPACTSFOR A SHORTTERMDUETO OPERATIONAL SURFACEDISTURBANCE. 4) OF WILDLIFEANDLIVESTOCK. DISTURBANCE IEMPORARY 5) MINORDISTRACTION FROMAESTHETICSFOR SHORTTERM. 6) 2 . 1) 3POSEDPERMIT NOTAPPROVINGTH( THE OIL AND -- ¿LEASEGRANTSTHE ' LESSEEEXCLUSIVERIGHTTO DRILL FORT MINE,EXTRACT, ANDDISPoss nF RFMOVF OIL ANDGAS DEPOSITS, Al I 2) DENYTHE PROPOSEDPERMITANDSUGGESTAN ALTERNATE TO MINIMI7F I OCATION ENVIRONMENTAL IMPACTS. NOALTERNATE LOCATION ONTHIS LEASEWOULDJUSTIFY THIS ACTION. O 3) NTION TO AVOID WASMOVED BRGE SIDEHILL CUTS NATURAL DRAINAGE OTHER 4) ... 5. Adverse 1) Environmental Effects Which Cannot Be Avoided EMISSIONS FROMRIG ENGINES ANDSUPPORT DUETO EXHAUST MINORAIR POLLUTION TRAFFIC ENGINES. DISTURBANCE POTEÑTIALDUE TO SURFACE 2) MINOR IMnurFn 5) DISTURBANCEOF WILDLIFE, MINORAND TEMPORARY TPAFFIC ANDSIIPPORT AND ACCFIFRATFn FROSTON USF. DF IIVFSTOCK, DISTORBANCF 4) TMPORARY VISUALIMPACTS, ANDSHORT-TERM b) MINOR 6. DETERMINATION: ACTIONOOES) (DOESNOT).CONSTITUTE A MAJOR. (THIS REQUESTED IN THE FEDERALACTIONSIGNIFICAlfTLYAFFgCTINGTHE ENVIRONMENT SENSEOF NEPA, SECTION102(2) (C). DATEINSPECTED INSPECTOR / SURVEY U. S. GEOLOGICAL DIVISION.- OIL a GASOPERATION CONSERVATION SALT LAKECITY February 10, 1978 MEMO TO FILE: Re: Belco Petroleum Natural Buttes NE NE Sec. 20, Grand-County, Belco spudded-in TWT is Petroleum on February the drilling Company informed this Dividion 9, 1978 at 3:00 p.m. contractor and their Rig Company 21-20 T. 9S., R. Utah that the #6 is being Unit above used. PÁTÁICK L. DRISCOLL CHIEF PETROLEUM ENGINEER GAS, 8 MINING DIVISION OF OIL, well 20E. was Form 9-330 ·°C UNI DEPARTMEN INTERIOR OF THE GEOLOGICAL IN DUPLICA'PE* in(See SUBMIT STATES Form approved. Budget Bureau No. 43-R355.5. ••;;e,s; 6. LEASE DESIGNATION SURVEY AESI.L 6. IF INDIAN, L NAME VF OF 4. PMENT DEVET. ADDRESS BUTTES NATURAL 8. OR FARai UNIT NAME I.EABE BIG (R€port WELL OF 21-20B - BOX 250. LOCATION NO. WEI,t, - 7Ñ CORPORM'TON OPERATOR OF O. P. TRIBE NAME OR 7. UNIT AGREEMENT NAME Other ".'Isa.O Other O ALLOTTRE OPERATOR BELCO . O EP EE 2. O DRY OF COMPLETION: b. TYPE NO. UTAH 0144869 WELL COMPLETION OR RECOMPLETIONREPORTAND LOG * la. TYPË OF WELL: AND SERIAL At surface 10 37 ' FNL WYOMTNG and in location¢legrill GCcordanCO 10fth NINs A311 ang Ñ$8tt g ' " O. (NE reported AND POOL, OR WILDCAT FIELD NBU fuen‡&) 11. ' FEL 10 33below & At top prod. interval PTNEY, WASATCH - NE) AND SCRVET OR BLOCK BEC., T., R., M., OR AREA SAME total At depth 14. SAME PER311T NO. DATE ED CO3IPL. (R€Gdy prod.) ‡O 18. T.D•• 22. MD A TVD (DF, REB, 4785' IF MULTIPLE 3IANT* HOW 23. COMPL., RT, to 6920' ELECTRIC TTPE AND CO31PLETION--TOP, NA31E BOTTO3f, AND (MD \ TVD)* SIZE LB./FT. 9-5/8" 4¼" DEPTH LINER 29. (MD) TOP all strings (Report (MD) HOLE 196' 7025' 36.0# 11.6# SIZE SET CEifENTING SIZE 12¼" 200 7-7/8" 2100 sx sx Class 50-50 SCREEN (MD) PzarORATION (Interval, RECOED ' 6092-94 6111-13' 6118-20 6128-30' afze and number) 6592-94 6907-09' 6914-16' ' ' 32. . AMOUNT 6092-6916' (MD) CEMENT SQUEEZE, AND OF EI2(D ETC. MATERIAL USED MY-T-GEL III, 100 mesh & 160 sand. 82,317 52 ,000# gal 20/40 33.* SET PACEER 6936' SHOT, FRACTURE, (MD) INTERVAL -- RECORD BET (MD) DEPTH PULLED NONE NONE PO7mix TUBING SIZE ACID, DEPTH . AMOUNT "G" 2-3/8" 31. NO RECORD 30. SACKS CEMENT* (MD) COBED WELL set in toen} RECORD BOTTOM DInscTro-MAL NO WAS I WEIGHT, WAs BURVET MADE CASING RECORD CASING CABLE TOOLS 27. 28. STATE CASINGHEAD ELEV. 25. RUN LOGS R?0E 4769' AT.T. CNL-FDC-GR DIL, 19. WASATCH OTHER 13. lUTAH 1 ROTARY TOOLS INTERVALS DRILLED BT 6982' THIS OF ËTC.)e OR, KB T48 UNSHT OR UTNTAH ELEVATIONS 4/5/78 21. PLUG, BACK INTERVAL(S), PRODUCING 6068' 26. DATE 3/3/78 & TVD 7025' 24. 17. REACHED T.D. DATE I L7DLH. O 16. SPCDDED DATE 12, \ 1/27/78 30359 15. SFC 20, ISSUED PRODUCTION DATE FIRST PRODUCTION PRODUCTION 4./5./18 DATE OF FLOWING TEST .l_O .4. FLOW. TUSING HOURS 18 TESTED 24 CASING PRESS. DIsPosrTroN 35. List or oAs (ßold, gas (Flotoing, SI CHOKE3I2E lift, pumping--size awaiting 3 CALCULATED 24-Houa RATE i OIL-BBL. I | -- Í 36. I hereby SIGNED GRAVITI-API -- -- TEST WITNESSED BT AL MAXFIELD ATTACHMENTS certit tha he fo:'egoing Ad attached information is complete TITLE and correct as determined ENGINEERING from all available TECHNICIAN *(See Instructionsand Spaces for Additional Data on ReverseSide) RATIO -- OIL I or IN GAS-QIL WATER--BBL. 5863 för fuel,vented, etc.) SHUT WATER-BBL. 5863 GAS---MCF. or sAut-in) GAS---MCF. -- (Producing stArca wmLL connection pipeline -- used and type of pump) OIL-BBL. PROD'N. FOR TEST PERIOD 32/64" PRESSURE 1350 800 34. METHOD records DATE 4/24/78 (CORR.) ,000# FORMATION SiloW DEPTH 37. SUMMARY ZONES: TOP ZONES UF POROSITT ALL IaiPORTANT CUBIIION USED, INTERVAL TESTED, OF POROUS BUTTOM ik DESCRIPTION, ETC. ALL D21LL-STEM AND RECOVERIES CONTENTS, AND CORED INTERVALS; PRESSUREB, AND SHUT•IN PRINTING OFFICE: 1974 U.S. GOVERNMENT THEREOF; AND CONTENTS Pl.OWING TIME TOOL OPEN, TESTS, INCLUDING NAME 1704' MEAS. DEPTR MARKERS 5210 ' 5774' 6224' GEOLOGIC RIVER GREEN WASATCH Wella Chapita Canyon Buck 38. TOP VERT. DEPTH -1639 - - 425 990 +3081' TRUS either a Federal agency or a State agency, a complete and correct well completion report anti log on all types of lands and leasesto for submitting General: This form is designed special instructions concerning the use of this form and the number of copies to be Any necessary to applicable Federal and/or State laws and regulations. or both, pursuant are shown below or will be issued by, or may be obtained from, the local Federal either to local, aren, or regional procedures and practices, with regard subulitted, particularly completions. reports for separate separate on items 22 and Œl, and 33, below regarding and/or State ot11ee. See instructions sample and core analysis, all types electric, etc.), formalogs (drillers, geologists, available record is subanitted, copies of all currently If not filed prior to the time this summary All attachments by applicable Federal and/or State laws and regulations. surveys, should be attached hereto, to the extent required tests, and directional tion and pressure be listed on this form, see item 35. should Consult local State locations on Federal or Indian land should be described in accordance with Federal requirements. Item 4: If there are no applicable State re(prirements, office for specific instructions. or Federäl given in other spaces on this form and in any attachments. shown) for depth measurements item 18: Indicate which elevation is used as reference (where not otherwise from more thou one interval zone (multiple completion), so state in item 22, and in item 24 show the producing for separate production Items 22 and 24: If this well is corupleted (page) on this form, adequately identified, (if any) for only the interval reported in item 33. Submit a separate report and name(s) interval, or intervals, top(s), bottom(s) to such interval. produced, showing the additional data pertinent interval to be separatelÿ for each udditional records for this well should show the details of any multiple stage cementing and the location of the cementing tool. supplemental Item 29: "Backs Cement": Attached (See instruction for items 22 and 24 above.) to be separately produced. report on this form for each interval Item 33: Submit a separate completion INSTRUCTIONS Connoission N.E. ederal Energy Regulatory 25 North Capitol Street, 20426 ashington, D.C. ' TINAL DET£RMINATIONBY THE OIL AND CAS SUTERV150R forth A final.category determination is set leans gas as requested in application the For onshore: Name Well see., 7. Lease Final the State: Section Approved 2. A statement of on of final including participants Li.st any st.te: . ( ) (p) (p) as Old Sun #2 Well with .Sands are which the 18 CFR 27A.104, determination:* the determinatio. Negative requested Correltes Well with the requirements this the TERC with 1. No.: y, y, by the Lower be provided reservoir. is new this a accordance submitted to well Uteli determination: In Federal Enterprises,Inc. . and ..rby requested: Application ne.arks: OC5: certaia Producing Reservoir: Uintadt, . by NGPA for • U-0144869 and as alock: Wasatch category Could proof For þe of .and_filed R20E T9S, 43-047-30359 . provisions the Lease 20, Sec. x.: .no determination Category to a NBU 21-2903 Wo.: Wo.: County y re on . AFI Wo.. Reservoir: below received NATUAALCAS POLICY ACT OT 1978 (NCPA) UNDER 7HE - and UC 484-9B no,aet no. and Not enough reference 21-2.OB in Well convincing be vill materials . and applicant information fo11eving Pressure Virgin new sands. definitely . the and ° X parties all comments submitting on the application. , opposed. matter & 3. A copy together Also° al.« application. of with any a copy information inconsistent under in the 18 CTR 274, determination òf any other (or possibly in inconsistent) materials determination in the used record determination, the with the which includes: 5 4. required All materials materials)used record 5. An explanatory-statement 6. For A final does/does ance a New Onshore of the necessity jurisdictional person determination Any qualify not the with applicabic may Production well is Well 3, process determination and all other are enclosed. record 18 CFR 27l.305(b) involving portions (and materials of : is-enclosed.--- the-determination basis-for summarizing-the or as a finding (c), to the enclosed. is hereby determination agency from a produced gas as natural provisions of the NGPA. determination final to this by the TERC in the is published object C. J. Name: Subpart made that the federal with a protest by filing in accordance Register Federal lease the to abort in accerd- referred 15 days FERC vithin 18 CFR Part 275. after this with Title:Aven CurtiS gas natural Oil & Gac c yppysyggny Signature: rf Date: -- hone number: ( 7) %5-555 pyy 5605 Address: p n Casper, any 9RRq Int 82602 and a copy of Form TERC 1:1 determination a copy of the negative only determination, a negative such a within 15 days of .aking requests so aggrieved party applicant or any the FIRC. If to be forwarded will the following days 20 within forwarded be vill in 1 through 6 referenced information all determination, 18 CTR 274.101(bl. with to the FERC in accordance determination *1n cc: the case of Applicant Purchaser(s) NGPA File Public Info. Lease File File Oemmaanteme•. .. Co-lessees New Reservoir file State APR3 0 1980· DIVISIC)NC)F , GAS & . . • FORM CIG 881-2/68 JOLORADO INTERSTATEGAS COMPANY .. ONE-POINT BACK PRESSURETESTFOR NATURALGAS WELLS /- cOMPANY: LEASE SECTION: PRODUCING FORMATION: WARATCH TOWNSHIP: 20 WELLNUMBER: NAÌURAL BUTTES BELCO PETAOLEUM CORP. FIELD: ' NATURAL BUTTES AREA RANGE: 98 COUNTY SA UINTAN COUNTY PIPELINECONNECTION: COLORADO INTERSTATE 20E GAS Cû¾PANY CASING (O.D.): WT./FT.: I.D.: SETAT: PERF.: TO: TUBING (O.D.): WT./FT.: I.D.: SET AT: PERF.: TO: PAY FROM: TO: L: G(RAW GAS): .630 GL: de G (SEPALA Ce): MET RRN PRO C NNGcTHRU: 7000 PACKER(S) SET@: STATIC O UMN: 21•20 4410.000 E: 1.9950 ATTRIBUTABLE ACREAGE: " (FLANGE) DATEOF 5-78 OBSERVEDDATA METER PRESSURE DIFFERENTIAL ROOTS FLOWING TEMPERATURE † 504.0 4.15 82 ?-78 4- 9- FLOW TEST: ORIFICE SIZE INCHES METER DIFFERENTIAL RANGE (00 1.250 CASING WELLHEADPRESSURE p.s.i.g. TUBINGWELLHEADPRESSURE p.s.i.o. 770.0 p.s.i.o. p.s.i.g. 783.0 590.0 603.0 RATEOF FLOW CALCULATIONS METER PRESSURE 24 HOUR COEFFICIENT P, FACTOR Pmhw 8-18 1050.0 P,' p.s.i.a. FLOWING F9 FACTOR Fpy F† 1.260 94.363 DEVIATION TEMP.FACTOR 1.0431 .9795 RATEOF FLOW R MCFD 1 11.80 PRESSURECALCULATIONS p.s.i.g. TUBING: 783.0 8904.291 17.22 517.0 DATEOF 9SHUT-INTEST: SHUT-IN PRESSURE: CASING: Pmhw p.s.i.o. 8329.0 GRAVITY EXTENSION hw 823.0 13.000 p.s.l. . P.S-l.9. BAR. 14.4 P, T, Pc 1063.0 p.s.i.a. . Pc 1129969.0 2 Z 613089.0 POTENTIAL CALCULATIONS ¯ 2.1861 Pc'- Pa (1) S'- Pa' (2) Pc-Pw - Ec -Pw " - 1962¾ ¯ ¯ Pc'- Pa' (3) R Pc-Pw - " 1648 - CALCULATEDWELLHEADOPEN FLOW 1648 MCFD @ 14.65 APPROVED BYCOMMISSION: BASISOF ALLOCATION: SLOPEn: CONDUCTED BY: CHECKEDBY: I, .624 BEING FIRST DULY SWORN ON OATH, STATETHAT I AM FAMILIARWITH FACTS AND FIGURES SET FORTH IN THIS REPORT,AND THATTHE REPORTIS TRUEAND CORRECT. SIGNATUREAND TITLEOF AFFIANT SUBSCRIBEDAND SWORN TO BEFORE ME THIS MYCOMMISSION EXPIRES COMPANY DAYOF 19 NOTARY cordaise uWaaWrma FORM CIG 4000-7/73 comemar eAs WakL TEST OATA POlyg FIELD CODE FIELDNAME 1 1 SECT AL "^TL XN TW 98 UTTE> RGE/SUR- SEO NU 20tT EFLCD ER AiàTCÑ SA TOR PETRJLTUS FLaw - - xx ¯xx¯_xx - xx xx CJ OREGE IMFER HUN SizE W.) 27 28 xxixxx 3E 39 32 33 xx WTER PRESSURE GAAVifY , xxx x xxxxx RAF E 44 13 --• 4( to - xxx x|xxx TER L 51 52 55 50 xxxxx xx DATE MW RIVE ROPE xxx MO. ÓAY Y4 15-16 MD. DAY 13 14 17 18 XX XX XX XX 1 20 KX YR. 21.22 23 XX 34 35 2 XXXX X XX XX X X XXX 624 3E 10 XX 1 (9 50 45 XXXX XXXXX 0 - xxx , et 4GWM X $$ AN 54 E 56 E STAWC 07 $$ 32 xxxxx:x 70 RE BEST0 MY DATA IS CORRECT EFFECT E E 1M2 NMR 4g $$ - SHUT¾ TEST WE W (SHUT-IN) 21 FLow TMT - xx ' WELLNAME ATURAL SUTÌES TEST watem (0IWA DATE MIMP) MO. DÁY Ya MD. DAy yg 11 12 13 14 16 W 17 W $ $0 21 29 23 STATECOPY , OPEWATOR NAME xxxxx PLOW $UON W 74 x x WLEDGETit AGOVE S ONS COLORADO SIG 896-7/73 FD' WELL TEST DATA FORM ) CODE flELO WELLCODE 3-----7 . FIELDNAME LOCATION TWNSHPIBLKRGE/SUR SECT. OPERATOR PANHANOLElflEDCAVE ORIFICE OATEICOMP.) METERRUN SIZE SIZE MO- DAY YR. MO. DAY YR. 27 28 11 12 13 14 15 16 17 18 19 20 21 22 23 XX XX XX XX XX XXX XX XX XX XXX - - - - 32 33 (SEP.) 38 39 XXXXX MDEEF GRAVITY COEFFICIENT - OPERATORNAME WELLNAME FORMATION K-FACTOR SEG.NUMBER WELLON (OPEN) - STATE COPY GAS COMPANY INTERSTATE X RANGE 43 -42 X XXX FLOWTEST METER PRESSURE XXX XXX×X XX X XX XXX E TEMP 59 -61 XXX SHUT-INTEST PREASUNRE MO. DAY YR. 11 -12 13 14 15 16 xx xx - - xx MO. DAY 17 -18 19 -20 xx xx DATE YR. CAsiNG PRESSURE TUBING 07 68 62 X XXXXX 28 xxxxx x 34 35 29 xxxxx x 38 39 x XXX XX LENGTH 14 XXXX GAS) 19 45 XXXXX 50-53 X XXX PRESS PRESS 54 55 E E ClG: OPMOR COMMISSlnN 0 750 REMARKS: 73 XXXXX X FLOWINGSTRING TUBING CASING 74 75 X I I TOTHEBESTOF MYKNOWLEDGE THEABOVE DATA IS CORRECT. EFFECTIVE (PSIG) (PSIG) 21 22 23 xx EFFECTIVE DIAMETER SLOPE PRESSURE PRESSURE PRESSURE I I WELL-OFF (SHUT-IN) SSGACSCg BOGSNG METER TEMP 55 56-58 51 52 46 -45 DIFFERENTIAL ROOTS X COLORADO INTERSTATE FORM ClG 4896-7/73 CUDb SECT. PANH:.NDLE/REDCAVE LOCATION TWNSHP/BLK RGE/SUR SEQ. NUMBER K·FACTOR 11 - DATE (COMP.) YR. DAY 12 13 xx - 14 15 - MO. 16 17 xx xx FORMATION - 18 xx DAY 19 - YR 2021 xx ORIFICE SIZE 2223 xx METER RUN SIZE COEFFICIENT 32 33 2728 xx xxx xx GRAVITY (SEP) xxx 38 39 x xxxxx RDA GE 4546 4243 - xxx 55 56 51 52 - x xxx DIFFERENTIAL ROOTS METER PRESSURE xxxxx xx x xx PREASSEUNREDATE 11-12 DAY 13-14 YR 15-16 MO 17-18 DAY 19-20 YR. 21-22 23 xx xx xx xx xx xx PREASUGRE PREUSUGRE 58 59 - xxx GS GS - 34 35 28 29 x xxxxx x | ‡4 38 39 X XXX XX XXXX 45 49 50 XXXXX 53 X XXX --- 54 55 E E PLOWING TREGSSC 61 62 xxx 67 68 xxxxx TO THE BEST OF DATA IS CORRECT (PSIG) (PSIG) xxxxx Y EFLFEENCGTWEG AV ED EMCERE SLOPE WELL yHE PD METER TEMP. SHUT-IN TEST WELL-OFF (SHUT-IN) MO. WELL NAME OPERATOR NAME FLOW TEST WELL ON (OPEN) MO. OPERAÌÒR CODE FIELD NAME PIELD CODE 3--7 GAS COMPANY WELL TEST DATA FORM CIA COMMISSinN RIAllt FLOWING STRING S/SCUSRGE TUBING CASING 75 73 74 x xxxxx x LEDGE THE ABOVE x x COLORADO INTERSTATE FORM CIG 4896 7/73 WELL TEST DATA FORM 3 7 SECT. LOCAllUN TWNSHP/BLK 9S 20 WELL ON (OPEN) DATE (COMP.) DAY YR. DAY YR MO. 12 13 14 15 16 17 18 19 2C21 2223 XX XX XX XX XX XX XX - - 7Ÿ O - - ORIFICE SIZE gg ou O2 ) XXX 25D COEFFICIENT XXX FLOW TEST A FLOWING STRING DIFFERENTIAL METER METER B FF E ROOTS TEMP. PRESSURE TUBINO CASING PRESSURE TEMP. PRESSURE RANGE 73 74 75 67 68 55 56 61 82 51 52 58 59 38 39 4243 4546 X X X XXXXX X XXXXX XX XX XXX XXX XXX XXXXX X X X XXX GRAVITY (SEP.) --- XXXXX 2 067 Od27790 ----- --- 0 lo2) - Ñ?T 100.045 SHUT-IN TEST WELL-OFF (SHUT-IN) PREASSEURE DATE PREU NUGRE PREASUGRE E EMCETNRE SLOPE EFLFEENCGT E GRAV Y GS GS 0,0 11-12 DAY 13-14 YR. 15-16 MO 17-18 DAY 19-20 XX XX XX XX XX y to ? O 3 YR. 21-22 23 XX (PSIG) (PSIG) 34 35 28 29 XXXXX X 00MD P XXXXX Og35 X X XXX 835 REMARKS: 000 38 39 XX 1 14 XXXX eso 45 53 X XXX 49 50 XXXXX 6509 --- a 27 54 55 E E av,¶Ð TO THE BEST OF MY KNOWLEDGE THE ABOVE DATA IS CORRECT P MO. 21-20 WASATCH SA FLOW TEST 32 33 XX NATURAL BUTTES CORP FORMATION METER RUN SIZE 27 28 - OEVELCPMENT SELCO 0828 20E MO. - UT PANH..NDLE/kkbcAVb RGE/SUR. SEQ. NUMBER K-FACTOR WELL NAME OPERATOR NAME CODE NATURAL BUTTES. 3000 11 ÖAÊAATÖA FIELD NAME FIELD CODE 60-01-11 WELLCubb STATE COPY GAS COMPANY 010 I IAN COLORADO INTERSTATE FORM CIG 4896-7/73 Î LOCATION TWNSHP/BLK PANHAÑOLE/ItEDCAVE DATE (COMP) YR. DAY MO YR DAY 11 12 13 14 15 16 17 18 19 2021 2223 X X X X X - - XX FORMATION K-FACTOR - - ORIFICE SIZE METER RUN SIZE 27 28 - X X 32 33 XX GRAVITY (SEP.) COEFFICIENT XXX 38 39 X XXXXX 4243 - XX -- DIFFERENTIAL ROOTS METER PRESSURE RDA GE 4546 XXX 51 52 55 56 XX X PREASSEUNRE DATE 13-14 YR. 15-16 XX XX MO. 17-18 DAY 19-20 YR. 21-22 23 XX XX XX TUBING PRESSURE (PSIG) CASING PRESSURE (PSIG) GAS) 34 35 28 29 XXXXX X XXXXX EFLFEENCGTWEGRAA ED EMCETNRE SLOPE X 38 39 X XXX XX 14 XXXX 45 19 50 XXXXX X -- 53 XXX WILL LOWIN pHE PREGSS P 58 59 61 62 XXX X METER TEMP - XX SHUT-IN TEST WELL-OFF (SHUT IN) DAY WELL NAME OPERATOR NAME 4 RGE/SUR SEO. NUMBER MO MO 11-12 STATE WY FLOW TEST WELL ON (OPEN) - OPERATOR CODE FIELDNAME IELD CODE WELL CÒDE 3 7 SECT GAS COMPANY WELL TEST DATA FORM - 67 68 XXX S AllC FLOWING STRING SCUSRGE TUBING CASING 73 74 75 TO THE BEST OF MY KNOWLEDGETHE ABOVE SG G PRESS PRESS 54 55 E E DATA IS CORRECT cin X X CNE 4890-7/TK FO MTealt. Te'* o'o §'89 11 - 12 18 - YA 14 15 18 17 W A • • x-x xx ×× xx • as 20 11 23 23 ×× x×\××× 27 28 41 10 AISSW 32 x×!×x× x× (BMUT-IN) E * MO DAY YR 11•12 13•14 15-16 XX XK XX M OAY 17•W 10-80 XX XX I O &M DATE 4 21-20 L BUTTES yrsv x!××¾. x×¾xxix Ìi 2| 067 i ! 4E46 × A × A X RI 407 p 73000 34 30 28 | XXXXK X 7¢ g 00756 * X XXX 627 73 , »××××1××××××1× Ì i YO THESEST OF MYKNOWLEDGE THEÁ0098 DATA10 CONNECT SLOFS A YN 21-22 23 XX XXXXX ( àl' 100 i Of M i $2 61 St x×× SHUT-1N TEST WELL•00F ' e sa'etei WEkk NAM ¢on. Atl¾ OFE |\ t)& /3 F ATOli NAtÀ BELCo PETR*Lion BUTTES WDAACOMP MO N (IP IMD NA FSLD 000E 560-01-11 t i 46 30 30 KX XXXX 1 56 9 KNXXX 7000 50 44 X $ $$ 4. CIA , 74 94 x x BELCO DEVELOPMENT DAILY DRILLING FRIDAY, JANUARY VERNAL DISTRICT DEVELOPMENT 3-3 Ex'U Wila at Garfi TD 73 Chan er Be o WI WC-G) County, Morrison R #7 9-3 Co. 5% WELLS 6806'(614') 614' 15·- 19. Drilling, Morrison. 6404'-5° 6615'-5¼°. in 17¼ hrs. Dev: 5 sec. 6615'-D. SILT 7/8",FP-51,Jet 6,7 open,614' in 17¼ hrs. RPM-90 Press: 190#, Wt.3, Prop: Dusting, SCFM 2750 dry-3 Survey-2 & blow hole brs. brs. down to let helicopter on location & PU peopleinjured l¼ hrs. AFE (csg pt) $446,000 Drld Flare Bit Air Mud TIH Shut $445,068 CUM COST (DW-GAS) NDC 60-29 North Duck Creek Uintah County,Utah TD 7545' Nasatch AllWestern Rig #3 Belco WI 0% (0') 249' RU, AFE (csg CUM COST OUTSIDE B-94 LISBON UNIT Lisbon Unit Field San Juan County,Utah Loffland Bros Rig Union Oil Company TD 9200' Mississippian Belco WI 15.04722% CORPORATION REPORT 29,1982 Uintah. $333,000 $ 74,141 pt) OPERATED ' " MßR$2 19 - DIVISl0NOF DiL GAS& MINING 1-28-82 9150'(O') #5 42. PU BHA. Mud Prop: MW-10.3, WL-7.2 VIS-54, Finished displacing diesel. Circ & Cond mud while working stuck DP. RU Brand X and run freepoint with collars 25% free and @8807', 100% free @8777'. Backed off leaving @8777', fish in hole. Chained and strapped out of hole in 6 brs. Rec'd 8 DCs,X-over,and DP. Laid down shot collar, PU fishing assembly,inc. WORKOVERS (DW-GAS) NBU 21-20B Natural Buttes Uintah County,Utah PBTD 6982' Wasatch Utah Rental Belco WI 100% # 3 w/2 & Howco 3/8"tbg 4½ BP-Set @6200', Set 1 sack sand,1and tbg @6111. Remove BOP, Install well head. Swab 30 min,Rec 12 BW, Well kicked off, Flowed to pit 2¼ hrs. blowing med vpr, SI well overnight. SDFN. Report TIH This / A.M. TUBING SI, CP-900 DETAIL: 194 Howco Set CUM TP-850, COST Jts @ 2 3/8"Tbg Retreaving head 6109.20 1.80 6111.00 Form Noo UA i STATES DEPARTMENT ÒF THE INTERIOR 5983) e be (Formerly 9-331) s IP sp,n,,1,N verse A on side) Ep 5. LEASE to drill FOR or to deepen or plug back to PERMIT-" for such proposals.) O. IP INDIAN, GAS WELL 2. NAME 3. ADDRESS OF reservoir. 7. UNIT 8. FARM 9. WELL OTH.. OPERATOR OF APR 2 9 1985 PLVELOPfGlT CORPOPATIDM O FEL NE/NE FNL 6 1033' ALLOTTRE A0BEEMENT rzaMIT No. 15. ELEVATIONs 43-047-30359 tCÑÀppropriate 16 NOTICE TEST INTENTION SHUT-OFF WATER FRACTURE OF PULL OR IO NO. T., R., x, 05 BLE. BURVET OR ARMA whether Dr. RT 4785' CHANGE WELL an, etc.) C.tSING PLANs l'ROPOSED work. to this work.) OPERATIONS OR CONIPLETED well is directionally If - I hereby y WELL CAalNG SHOOTING OR ACIDIZING ABANDONMENT* state all pertinent (Clearly details, and give subsurface locations drilled, give and measured : (' (This spac for Federal APPROVED BY CONDITIONS Report results of multiple or Recolapletion Report pertinent and true dates, vertical near 2. The pit farther 3. The pit near is true completion on Well and Log form.) estimated date of starting any for all markers and sones perti- includin depths to include OF APPROVAL, water 3 pits from the at this .t.ank. away is used to blow down the well. the dehydrator is for and correct District or State produced the tank is to drain The pit O V~ 07: REPAIRING that NTL 2B pit approval be extended to request The use of the 3 pits are as follows: foregoing a (Other) 1. that the AI SIGNE BMPORT ALTERING Pits 1 4 2 could be done with Pit Possibly this pit or connect the two together would be is remote and the well hazard and the location constructed. be allowed as they are 18. T ÛfherÛafa * This is location. 18. Amtsa TREATHENT (NoTz proposed nent on FRACTURE Completion DESCRIBE WT SHDT-OFF WATER COMPLETE co AND 20, T9S, R20E inta Indicate Nature of Notice, Report, or (Other) 17. 12. IN SUBBMQUENT OR ALTER NAME 11. Bac., ABANDON* OR ACIDIZE SHOOT REPAIR BOx Enttes LEASE 29.202 TO: lIULTIPLE TREAT (Show NAME OR TRIBM NAME Natural Sec. 14. NO. BERIAL GAS & MINING also sepace 17 below.) 1037' AND ' Î. OIL WELI. DESIGNATION 11-0144869 ON WELLS SUNDRYNOTKESAND REPORTS a different not use this form for proposals Use "APPLICATION CIG to dump their #2. However, fluids. the expense to cover up there is no safety that the pits it is requested $500-$1500. Since is marginal April Engineer TITLE DATE TITLE DATE 26, 1985 ofBee use) IF ANY: *See Instructionson ReverseSide Title 18 U.S.C. Section United States any false, 1001, makes it a crime fictitious or fraudulent yÔ - BUREAU OF LAND MANAGEMENT (Do approved. rees uren1 tN3ol, 11090845-0135 for any person and willfully to make knoWingly statements or representations as to any matter to any department within its or agency of the gggre UNITE" 4TATES < ..... NTERIOR THE I RTMENT DEPA 49,"",,'g*fma, ( Formerly 9 G 3 1) - I z.ta- a. ..... ouO & Û BUREAUOF LANDMANAGEMENT zoo ',i"|,", -osas a .......... ..BB AL 8 0 ... . U-0144869 a ON WELLS SUNDRYNOTICESAND REPORTS difereat steervoir. ........ OB Hms ALIOUWB WARE to deepen er plag back to a (I>o not ape this form for pronomale te irtil er Um "APPLICATION FOR PERMIT--" ter auch proposals.) 4. omar senaansar 1. M OIL WELL . SAS WELL - NATURAL BUTTES STSBB WARE OF OPBBATOR BELCO DEVELOPMENT CORPORATION er ormasson sanassa 4. (Report See also speer 3T below.) BOX 1815 P.O. OP SOCATION at 6. NATURAL BUTTES was.t. so. NBU 21-20 UTAH 84078 VERNAL. location ettarly and in accordamer with any State requirements.* WELL 10. PiaLD AND POOL, 08 WILDCAT Natural Buttes 11. mac.,9., a., x, en as.x. Ago ansvar en amma surface 20, Sec T9S, R20E en maassa ÈÉ.stars UTAH UINTAH NE NE (Show whether ar. ar. AB. BRETATIONs 34. PREMET NO. 43-047- WARM OS ESABB MAMS . 8. aans 15. m. ete) 30359 eoDWrx G..eleAppropneteBoxTo indicateNatureof Notice,Report,or OdserData anasseemst maront er: morsca er sursarsom so: TEST WATSB BRUT·Orr PRACTURE 27. TREAT NULTIPLE ACIDIES ABANDON* anoor ob REPAIR WELL (Other) DESCRIBE PCLL OR ALTER filANCE RESUMPTION PROPOSED work. proposed ment to this work.) OPERATsome OR COMPLETED PRACTURE COMPI.ETE BBPARINO TBBATMENT ALTERING WELL CA-ING ABANDONMBWT* BROOTWO OR ACIDIBING (Other) (Nors: PLAus OF PRODUCTION If well in directionaHy WATER SBUT4þrr CABINO ¯ Report resulta et multiple esm¢etion en Wel or Recompienon Report and Log term.) estimated date et starting any state all pertinent details, and give perttaent dates, laciading inestions and measured and true vertient depths for all markers and genes pertisubmrface tompledon (Clearly drlUed, give • THIS IS TO ADVISE YOU THAT THE ABOVE MENTIONED WELL HAS BEEN RETURNED TO PRODUCTION AFTER ORAL NOTICE WAS CALLED IN TO THE B.L.M. FRIDAY OCT. 17, 1986. BEING SI FOR 90 OR MORE DAYS. RESUMPTION OF PRODUCTION BEGAN OCT. 12, 1986. OCT DMSIONOE OIL GAS& MINING gghereb eer y t th oregoing is true and correct TITLE (This space for Pederal or State APPROVED BT CONDITIONS OF APPROVAL, DISTRICT og.g., 10-20-86 SUPERINTENDENT oSce ase) DATE TITLE IF ANT: *See instructionson ReverseSide to make and willfully Title 18 U.S.C. Section 1001, makes it a crime for any person knowingly as to any matter or representations United States any false, fictitious or fraudulent statements to any within department its or agency of the (Formerly ggrr, graaer,· UNITED STATES II°."".,¾°ina, THE INTERIOR •••••.se.» DEPARTMENT 9---331> BUREAUOF LAND MANAGEMENT 4-osas a. ................. U-0144869 , , ""'"''"°"" WELLS AND REPORTSON SUNDRYNOTICES to deepea er plag back to a difereat reserroir. drill (Do not ase et form for propenals to Use "APrl.xCATION FOR PERMIT-' this for omsk propenis.) T. sure seassusar 1. "LO 8. Wenn BEI£O DEVELOPMENTCORPORATTON . P. O. Box 1815, - 4. 0. or orsaatoa Annassa WELL (Report OF SAþCATION See also space 27 below.) at surf•* location Vernal, Utah AWD POOL, OB WN.BCAT NBUWasatch FNL & 1033' 15. 4785' 20, 12. 000527 (Show whether er, or, en, etc.) a!XTATIONs 43-047-30359 sac. 9, a., m. es al.a. enavar en Amas Sec FEL (NE/NE) no. 14. Psaurr WELL NO. 10. FIN II. 1037' Unit om s.mass maus 21-20B 84078 with any State requirements.* clearly and in accordance maus Buttes Natural OTESS ".'t.L sama or orsmatom . 'f,'',"¿",*|',", g KB R20E T9S, rantaa 08 Axo 18. Uintah BrATE Utah CheckAppropriateBoxTo in$icote Nature of Notice, Report,or OtherData motsca or saranraox to TEST PULL BRUT<þFF WATBB SHOOT OR ACIDIEE ABANDON* REPAIR WELL CHANGE orsnATaowr on couPLETao If well is directionaBy • ment to this work.) raorosED Descatar proposed work This well WATER CASING amponT ALTERIMC WELL CAalNo ABANDONNENT* OR ACIDiz!NG SBOOTING : BSPAIRING --UTOFF FRACTURE TREATHENT COMPI.ETE er (Other) (Nors : Report resulta et multiple oompletion en Wel Completion or Recosapletion Report and Log form.) date of starting any dates, including estimated details, and give pertinent (Clearly state all pertinent pertidrilled. give subsurface locations and measured and true vertical depths for all markers and genes FLANs ¯¯ (Other) 17. 08 ALTER NULTIPLE TBEAT PRACTURE sussageant : was turned back to production on 11-10-86 DEC051986 DIVISIONOF OIL, GAS & MINiNG 38. I hereb that the foregoing is true and correct TITLE BIGNE (This space for Federal er State APPROVED ST CONDITIONS OF APPROVAL, District Superintendent para 12-02-86 omee ase) DATE TITLE IF ANT: •See instructions on Revers.Sd. Title 18 U.S.C. Section 1001, makes it a crime United States any false, fictitious or fraudulent to make for any person knowingly and willfully as to any matter statements or representations to any department within its or agency of the RPp.41- o 20 d 'TAS RLos udh i A olxzdw amaq SR P* I Í89 (CÀ svaurr am warew UNITED STATES F DEPARTMENT THE INTERIOR WA""" ,,, 9-330 FOTTnerl> -a• " MANAGEME ' BURE AU OF ase this act for propeaals Uer "APPLICATION fx •• ELI $ WELL or hems of AÞDREBF at •urf•e• • ---a i ..es.wn......... Paam OB WEL.L 90 IAABB Boestiot and it, accordauer clearly with any State requirements' 30 FNl & 1033' ano root, WIBLD gaC. E, mm FEL (NE/NE) 16 ML (Show whether BLX¾ArloNs | 43 047 30359 4785' Dr. rl. er NOTICE PAA WATER TURE SHOOT OF IWTEWTaoN SECT<Þrr CARING B. M. OR BLE. ARL um CHAWCE om.sraint on R20E T9S, razÑË IT STATE UTAH mgPOxy SBUT4)rr Or; BBPAIRING WELL FRACTCBE TREATMEWT ALTERING CAREWC BBOOTING OR ACIDIIINC ABANDOMMEWT* (Other) FLAht (NoTE IOther) 11 wlLocat Notice, Report, or Other Dato WATER COMPl.ETE ABANDON* WELL of gDamagggWT OR ALTER MULTIPLE OL ACIDIZE REPAIR os UINTAH TO: PCLL TELAT 12. Cocary A) KB CheckAppropnote Box To Indicate Nature TEET RANS NBU WASATCH SEC 20, PEr-Aff¾ a. .. ..... 21-208 VERNAL, UTAH 84078 1L 14 °36 NATURALBUTTES UNIT OPahaTOh 1037' ...... *,°,°' ° & GAS COMPANY or *LLL (Report spare IT below ) kwarlos See als saaan O¶RSE P. O. BOX 1815 4 e 'i' ILerest p e orstaTom ENRON OIL $ er ping ie: each te grL er to 6•eper FOF PERM:1- form ,, U 0144869 SUNDRY NOTKESAND REPORTS IIN g Steport resnits of anttiple eompleUom on Well or Recorapletioll Report and Log form.) pertinent dates. toeloding estimated gate of starung and ITUP Vffilfal ÔfPthi ÊOr &Ïl Etiktf6 BDÔ 400 i : Completiot r•aorosto propok work nent to this work) om coMPLETEI oPERArioNr If well in dirretionalb (Clearly state all pertinesit details. tDcatioDN drilled. give subsudaer and and give EPABured * THIS WELL WAS TURNED BACK TO PRODUCTION 11-5-89 AFTER BEING SHUT IN OVER NINETY any PEfti DAYS. OIL M DON GLrl J33 SLS MICROF LM 16. I hereby that certify BIGNED (Tbte space APPROTED CONDITIONS the foregoing .47 for Federal BT is trar and correct TITLE A or State ofBee ADMTN. CTERK »Ars TITLE APPROTAL, 11-9--89 use) _ OT SR. DATE IF ANT: See Înstwelionson Reverse Side Title Uniteò 18 U.S.C. Section Sta:es any false, 1001, makes it a crime fictitious or fraudulent for any person statements knostingly or representations and to make willfully as to any rr.atter to any within department er its jurisdiction. agency of the BUREAU Or att a»• tht• form fr yte "'" * '' " Tusisw• e--wt e• s, 04 e Plur 09 AWS Oil Enron O. P. gaveTwa ger ete at surr•" Box Ok 1815, (4 Utah Vernal, 84078 etd to afteriet toestiot citarly þ© WBL.L Witt Atate requirraptatt ar) 30 W156r SWL 586Þ(ht POOL.OB NBU-Wasatch si sec.. s. a. as, on am FNL & 1033' passig, Babi haaph (St.99 wbrthe• Baavarwms IL pc aar. (NE/NE) FEL Sec. g4 Unit Buttes Natural 21-20B (Arport or valt spare 31 belos ) 1037' AME OF Co. & Gas OPageTOB OF Statingp? Wapa OPass?Ob SDÞbab9 4 ' MAR27 1990 ..... .','a °"' b IT D ..- was......t U-0144869 ' '""''"''' AND REPORTS 0 ~••1• " ND MANAGEMI Ni SUNDRY NOTIŒs il• às DEPARTMENTOF THE INTERIOR h sai 43-047-30359 ' 4785 of.m et etc ) 12 T9S, 20, 95 cocWit 38 Postas Uintah KB R20E etats Utah Check Appropriote Boxlo inclicoleNoture of Notice, Report, or OtherDato BOTICE WATER TLET gprymprio> 90 PrLL 05 BRTT4WI OMAWCI Wau tOther) 3Î f•BUPUBLU SpLLi blLI OTLaaTi Om COh!FLETL1 well is directsonall> If wori proposed ment to this work)• This this (ABI%L ALTEP WATBE OMia.YTE AbsWych* OB Af!DIII BEran SOBBBQUBWT : MtLTIPLE TELAT BACTURI RDOT Oy is to OF : BBrAIETWG Est1<>FF PAAPTLht StìATMEWT BBOOTlWL OP WELL ALTEtiBIL CABING SSAWDOhygpr* Af3DillWL XX Removal Tank COnd. eomÞletiot om Well Report resulta of moltiple vanpletiot or Recomapletion Report and Log fora ) SL) $$ÊtEttPÔ Ê$19 OŸ BÊAfting $Plailw. þtfÊÊDPDI $$$PS. $$tiBAIBg State gli µ*rtirmnt 80Ô g!TP \f (Citally Gepths for all markere and sones prrti tocatwas and erasured and true vertical gave subsurtare drined (Other) (Nors FLas: inform location. BBPORT Attached that you please the find tank cond. a revised has been wellsite removed diagram. from LS FILE 36 3 be LJ certif e ore correct TITLE (This spart oEct for Federa3 er State ST APPROTED CONDITIONS OF APPEOTAL, / AA DATE < ame) DATE TITLE IF ANT: *Sce instruct¡onson ReverseSi<fe Tatir 16 U.S.C. Section Unittò States any f.1st, 1001, rankes isctiinous it a crime or fraudulent to rnake for any person knoteingly and willfully as to any tratter statements or representations to any deps.:tment within its or agency of the NATURAL BUTTES 21-20 SEC. 21, T9S, R20E UINTAH COUNTY, UTAH LEASE NO. U-0144869 CASINGVALVES WELL HEAD 100' PRODUCTIONLINE ENRON SEP. UNDERGROUND 50' DUMPLINE BLOW LINE TUBIN VALVE BLOWVALVE 3RODUCTION VALVE uJ N CIG 3EHY METER 8'X 10' FENCED DUMP&ŒBLOW SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 Form 10-K ANNUAL REPORT PURSUANT TO SECTION SECURITIES EXCHANGE ACT OF 1934 For 0 13 OR 15(d) OF THE the fiscal year ended December 31, 1991 REPORT PURSUANT TO SECTION SECURITIES EXCHANGE ACT OF 1934 TRANSITION Commission nle number: 13 or 15(d) OF THE 1-9743 ENRON OIL & GAS COMPANY (Exact name of registrant as specified in its charter) 47-0684736 Delaware (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1400 Smith Street, Houston, Texas 77002-7369 (Address of principal executive offices) (zip code) Registrant's telephone number, including area code: 713-853-6161 Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered Common Stock, without par value New York Stock Exchange Securities registered pursuant ' to Section 12(g) of the Act: None Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No O. Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not bf contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Aggregate market value of the voting stock held by non-affiliates of the registrant, based on the closing sale price in the daily composite list for transactions on the New York Stock Exchange on March 2, 1992 was $205,008,858.As of March 2, 1992, there were 75,900,000 shares of registrant's Common Stock, without par value, outstanding. Documents incorporated by reference. Certain portions of the registrant's defmitive Proxy Statement for the May 5, 1992 Annual Meeting of Stockholders ("Proxy Statement") are incorporated in Part III by TABLE OF CONTENTS PART I Page Item 1. Business............ ....... General............ Business Segments ....... . . . . . . . . . . . Exploration and Production Marketing.................... Wellhead Volumes and Prices, and Lease and Well Expenses Other Natural Gas Marketing Volumes and Prices . . . . . . . . . . ........ .... . . ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....... .................... ............. ........ Between the Company and Enron Corp. Other Matters Current Executive Officers of the Registrant .............. .. .. . . . . . . . . . . . . . . . . . . . . . . Item Item Item 5. 6. 7. Item Item Operations..................... 8. Financial Statements and Supplementary Data 9. Disagreements on Accounting and Financial Disclosure . ......... . ............ ... . . . . . . ....... Item Item ........... . . 2. Properties Oil and Gas Exploration and Production Properties and Reserves 3. Legal Proceedings 4. Submission of Matters to a Vote of Security Holders Item . . ....... . Competition........... Regulation Relationship . . . .. . . . . . . . . . ......... . . . . . . . . . . . . ........... . . . . . . . . . . ........ . . . . . . . . . I 1 1 3 4 5 5 5 8 9 11 12 12 14 15 PART II Market for the Registrant's Common Equity and Related Stockholder Matters SelectedFinancialData............ Management's Discussion and Analysis of Financial Condition and Results of .......... ........ .......... Item Item Item Item ........ . 10. 11. 12. 13. Item 14. .............. . . . . .............. . . . . . . . . . . . . . . PART III Directors and Executive Officers of the Registrant Executive Compensation Security Ownership of Certain Beneficial Owners and Management Certain Relationships and Related Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART IV Exhibits, Financial Statement Schedules, and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 16 17 24 24 24 24 24 24 25 PART I Item 1. Business General Enron Oil & Gas Company (the "Company"), a Delaware corporation, is engaged in the exploration for, and the development and production of, natural gas and crude oil primarily in major producing basins in the United States and, to a lesser extent, in Canada and selected other international areas. At December 31, 1991, the Company's estimated net proved natural gas reserves were 1,585 billion cubic feet ("Bef") and estimated net proved crude oil, condensate and natural gas liquids reserves were 20.3 million barrels ("MMBbl"). At such date, approximately 90% of the Company's reserves (on a natural gas equivalent basis) was located in the United States and 10% in Canada. As of December 31, 1991, the Company employed approximately 630 persons. The Company's core areas are the Big Piney area in Wyoming, the Matagorda Trend area located in federal waters offshore Texas and South Texas primarily centered in the Lobo Trend area. The Company's other domestic natural gas and crude oil producing properties are located primarily in other areas of Texas, Utah, New Mexico, Oklahoma and California. At December 31, 1991, 93% of the Company's proved domestic reserves (on a natural gas equivalent basis) was natural gas and 7% was crude oil, condensate and natural gas liquids. A substantial portion of the Company's natural gas reserves is in long-lived fields with well established production histories. Enron Corp. currently owns approximately 84% of the outstanding Company. (See "Relationship Between the Company and Enron Corp."). common stock of the Unless the context otherwise requires, all references herein to the Company include Enron Oil & Gas Company, its predecessors and subsidiaries, including their interests in certain partnerships. Unless the context otherwise requires, all references herein to Enron Corp. include Enron Corp., its predecessors and affiliates, other than the Company and its subsidiaries. With respect to information on the Company's working interest in wells or acreage, "net" oil and gas wells or acreage are determined by multiplying "gross" oil and gas wells or acreage by the Company's working interest in the wells or acreage. Unless otherwise defined, all references to wells are gross. Business Segments The Company's operations are all natural gas and crude oil exploration and production Accordingly, such operations are classified as one business segment. related. Exploration and Production The Company's five principal U.S. producing areas are the Big Piney area, the Matagorda Trend area, the Lobo Trend area, the Vernal area and the Pitchfork Ranch field. These properties comprised approximately 70% of the Company's domestic reserves and 75% of the Company's maximum net gas deliverability as of December 31, 1991 and are all operated by the Company, with the exception of a portion of the Matagorda Trend area. The Company also has operations in Canada and is conducting exploration in selected other international areas. Big Piney Area. The Company's largest reserve accumulation is located in the Big Piney area in Sublette and Lincoln counties in southwestern Wyoming. The Company is the holder of the largest productive acreage base in this area, with approximately 165,000 net acres under lease directly within field limits. A portion of the natural gas production from new wells drilled on the Company's leases in the Big Piney area can be classified as tight formation gas. (See "Other Matters Tight Gas Sand Tax Credits (Section 29) and Severance Tax Exemption"). The Company operates approximately 400 natural gas wells with a 91% average working interest. Production net to the Company averaged - 1 i 97 million cubic feet ("MMcf") per day of natural gas and 1.3 thousand barrels ("MBbl") per day of crude oil, condensate, and natural gas liquids in 1991. At December 31, 1991, maximum natural gas deliverability net to the Company was approximately 137 MMcf per day. The current principal producing intervals are the Frontier and Mesaverde formations. The Frontier formation, which occurs at 6,500-10,000 feet, contains approximately 75% of the Company's current Big Piney reserves. The Comparty drilled 31 wells in the Big Piney area in 1991 and anticipates an active drilling program will continue for several years. Matagorda Trend Area. The Company has an interest in several fields in the Matagorda Trend area, located 20 miles south of Port O'Connor, Texas in federal waters. The Company has a 33% working interest in Matagorda Block 604, which commenced production in August 1989. Additionally, the Company has a 78.4% working interest in Block 638 and a 91.9% working interest in Block 620, both of which are operated by the Company and commenced sales in November 1989. The Company also has working interests in Matagorda Blocks 555 and 556 fields. Natural gas sales from these areas net to the Company averaged 98 MMcf per day in 1991. At December 31, 1991, maximum natural gas deliverability net to the Company from these blocks was approximately 120 MMcf per day. South Texas Area. The Company's activities in South Texas are focused in the Wilcox, Expanded Wilcox, Frio, Edwards Reef and Lobo producing horizons. The primary area of activity is in the Lobo Trend which occurs primarily in Webb and Zapata counties· The Company operates approximately 400 wells in the South Texas area. Production is primarily from the Lobo sand of the Wilcox formation at depths ranging from 7,000 to l 1,000 feet. The Company has approximately 135,000 acres under lease in this trend and a majority of the natural gas production from new wells drilled on the Company's leases in the South Texas Lobo area can be classified as tight formation gas. (See "Other Matters Tight Gas Sand Tax Credits (Section 29) and Severance Tax Exemption"). Natural gas sales net to the Company averaged 136 MMcf per day in 1991. At December 31, 1991, maximum natural gas deliverability net to the Company was approximately 195 MMcf per day. - Vernal Area. In the Vernal area, located primarily in Uintah County, Utah, the Company operates approximately 150 producing wells and presently controls approximately 64,000 net acres. A majority of the natural gas production from new wells drilled on the Company's leases in the Vernal area can be classified as tight formation gas. (See "Other Matters Tight Gas Sand Tax Credits (Section 29) and Severance Tax Exemption"). In 1991, natural gas sales from the Vernal area averaged 15 MMcf per day compared with approximately 17 MMcf per day maximum deliverability, both net to the Company. Production is from the Green River and Wasatch formations located at depths between 4,500-8,000 feet, and the Company has an average working interest of approximately 60%. - Pitchfork Ranch Field. The Pitchfork Ranch field located in Lea County, New Mexico, produces primarily from the Atoka and Morrow formations. In 1991, natural gas sales net to the Company averaged 17 MMcf per day. At December 31, 1991, maximum natural gas deliverability net to the Company was approximately 35 MMcf per day. During 1991, the Company significantly increased reserves and deliverability through drilling and workovers, a portion of which can be classified as tight formation gas. Canada. The Company is engaged in the exploration for and the development and production of natural gas and crude oil and the operation of natural gas processing plants in western Canada, principally in the provinces of Alberta, Saskatchewan, and Manitoba. The Company has been active in western Canada since 1968 and conducts operations from offices in Calgary. As of December 31, 1991, the Company held approximately 213,000 net undeveloped acres in Canada. 2 Other International. The Company continues to pursue selected opportunities outside North America with activities at year end in Egypt, Indonesia, the United Kingdom North Sea, Syria, and offshore Malaysia. In 1991 and 1992, three unsuccessful wells were drilled in Syria, and efforts under that agreement are being terminated. The Company has not budgeted significant capital and exploration expense expenditures in these areas for 1992. Marketing Wellhead Marketing. The Company's wellhead natural gas production is currently being sold on the spot market and under long-term natural gas contracts at market responsive prices. In many instances, the long-term contract prices closely approximate the prices received for natural gas being sold on the spot market. Approximately one-half of the Company's wellhead natural gas production is currently being sold to pipeline and marketing subsidiaries of Enron Corp. Substantially all of the Company's wellhead crude oil and condensate is sold under short-term contracts at posted prices Other Marketing. Enron Oil & Gas Marketing, Inc. ("EOGM"), a wholly-owned subsidiary of the Company, is a natural gas and crude oil marketing company engaging in various marketing activities. These include contracting to provide, under long-term agreements, natural gas to various purchasers and then aggregating the necessary supplies for the sales with purchases from various sources including third-party producers, marketing companies, pipelines or from the Company's own production. EOGM also utilizes shorter term hedging mechanisms including sales and purchases in the futures market as well as other longer term arrangements such as price swap agreements. EOGM's portfolio of marketing activities has provided an effective balance in managing the Company's exposure to price risks in the energy market. . . The Company has four long-term natural gas sales contracts, some for as long as 10 years with an Enron Corp. subsidiary. It expects to sell up to 125 MMcf of natural gas per day in 1992 under the four agreements. Actual physicial volumes to supply these commitments may be secured from various sources such as third-party producers, marketing companies, and pipelines or from the Company's own production. Over the life of two of the contracts, which became effective November 1, 1989, the Company will sell up to 219 Bcf of natural gas. Under a third contract, which became effective November 1, 1990, it will sell up to 54 Bcf of natural gas. Approximately 90 MMcf of natural gas per day are currently being sold under the three contracts. Under two of the contracts, all the natural gas is sold under fixed schedules of prices for the entire terms of the contracts. Under the other contract which became effective November 1, 1989, all of the natural gas is sold under a fixed schedule of prices through October 31, 1994. Beginning November 1, 1994 through the remaining term of the contract, a portion of the natural gas will be sold at market responsive prices. Under a fourth long-term contract, which became effective January 1, 1991, the Company will sell approximately 40 MMcf of natural gas per day over a ten-year period or up to 146 Bcf. The contract provides for an indexed pricing mechanism based upon spot market prices. The Company simultaneously entered into a tenyear price swap agreement with another Enron Corp. subsidiary that has the effect of fixing the price for an equivalent volume of gas at a level substantially above current spot market prices through the year 2000. Subsequently, the Company entered into another price swap agreement that has the effect of converting the price to the equivalent of a market responsive index plus a small fixed premium for the years 1996 through 1999. The Company currently anticipates that it will supply a major part of the natural gas for these sales through purchases at market responsive prices. The Company also has contracted to supply natural gas to a cogeneration facility 50% owned by Enron Corp. The primary contract provides for the sale of natural gas under a fixed schedule of prices substantially above current spot market prices. Current deliveries of approximately 45 MMcf of natural gas per day are being supplied primarily by purchases from an Enron Corp. subsidiary under a 3 long-term agreement with a majority of the purchases at market responsive prices and a small portion under a fixed schedule of prices. The Company has entered into a price swap agreement with a third party that has the effect of fixing the price for a volume of natural gas essentially equivalent to the volume of natural gas being purchased at market responsive prices to a fixed schedule of prices. The resulting fixed schedule of prices under this combination of purchase and price swap agreements are substantially below the fixed schedule of prices in the sales contract. The arrangements are designed, as to the volumes involved, to provide the' Company a margin of profit under its agreement with Cogenron Inc. The Company's commitments to deliver substantial volumes of natural gas under certain of the contracts containing schedules of predetermined prices discussed above would be disadvantageous to the Company during any time spot market prices exceed the applicable contract prices for natural gas. The Company may enter into similar arrangements in the future. Wellhead Volumes and Prices, and Lease and Well Expenses ,, - 1991Year Ended December 31,1989 SalesN to ame s Total 465.8 24.8 490.6 437.5 17.6 455.1 5.9 2.3 5.8 2.4 8.2 8.2 Crude Oil and Condensate (MBbl) United States Canada Total Natural Gas Liquids (MBbl) United States Canada 0.3 0.3 Total 0.6 Average Prices Natural Gas ($/Mcf) United States $ Canada Composite Crude Oil and Condensate ($/Bbl) United States Canada Composite Natural Gas Liquids ($/Bbl) United States Canada Composite Lease and Well Expenses ($/Mcfe) United States Canada Composite 1.38 1.32 1.37 328.0 16.4 344.4 5.7 2.6 8.3 0.4 0.5 _ _ 0.4 0.5 $ 1.51 $ 1.61 1.47 1.51 1.61 1.61 $19.24 $21.95 $17.82 17.58 18.78 21.01 21.67 15.32 17.04 $10.79 $10.59 $ 9.87 12.48 l1.64 $ 4 The following table sets forth certain information regarding the Company's volumes of other natural gas sales and purchases, and resulting average sales prices and purchase costs during each of the three years in the period ended December 31, 1991. (See "Marketing" for a discussion of other natural gas marketing arrangements and agreements). Year Ended December 31, 1989 1990 1991 Volumes (MMcf per day) Average Sales Prices ($/Mcf) Average Purchase Costs ($/Mcf)0) Margin ($/Mcf) 237.2 153.9 67.1 $ 2.63 $ 2.90 $ 3.30 1.75 1.99 2.07 $ .88 $ . 91 $ 1.23 (1) Including transportation. The following table sets forth certain information regarding the Company's wellhead volumes of and average wellhead sales prices received for natural gas per thousand cubic feet ("Mcf"), crude oil and condensate, and natural gas liquids per barrel ("Bbl"), and average lease and well expenses per thousand cubic feet equivalent ("Mcfe natural gas equivalents are determined using the ratio of 6.0 Mcf of natural gas to 1.0 barrel of crude oil, condensate or natural gas liquids) sold during each of the three years m the period ended December 31, 1991: United States Canada Other Natural Gas Marketing Volumes and Prices .23 - _ 10.59 $ .21 9.87 $ .25 .57 .57 .58 .25 .24 .28 Competition The Company actively competes for reserve acquisitions and exploration leases, licenses and concessions, frequently against companies with substantially larger financial and other resources. To the extent the Company's exploration budget is lower than that of certain of its competitors, the Company may be disadvantaged in effectively competing for certain reserves, leases, licenses and concessions. Competitive factors include price, contract terms, and quality of service, including pipeline connection times and distribution efficiencies. In addition, the Company faces competition from other producers and suppliers, including increased competition from Canadian natural gas. Regulation Domestic Regulation of Natural Gas and Crude Oil Production. Natural gas and crude oil production operations are subject to various types of regulation, including regulation in the United States by state and federal agencies. Domestic legislation affecting the oil and gas industry is under constant review for amendment or expansion. Also, numerous departments and agencies, both federal and state, are authorized by statute to issue and have issued rules and regulations which, among other things, require permits for the drilling of wells, regulate the spacing of wells, prevent the waste of natural gas and crude oil resources through proration, require drilling bonds and regulate environmental and safety matters. The regulatory burden on the oil and gas industry increases its cost of doing business and, consequently, affects its profitability. A substantial portion of the Company's oil and gas leases in the Big Piney area and in the Gulf of Mexico, as well as some in other areas, are granted by the federal government and administered by the Bureau of Land Management (the "BLM") and the Minerals Management Service (the "MMS") federal agencies. Operations conducted by the Company on federal oil and gas leases must comply with numerous statutory and regulatory restrictions. Certain operations must be conducted pursuant to appropriate permits issued by the BLM and the MMS. Sales of crude oil, condensate and natural gas liquids by the Company can be made at uncontrolled market prices. The transportation and sale for resale of natural gas in interstate commerce are regulated pursuant to the Natural Gas Act of 1938 (the "NGA") and the Natural Gas Policy Act of 1978 (the "NGPA"). These statutes are administered by the Federal Energy Regulatory Commission (the "FERC"). The NGPA established various categories of natural gas and provides for graduated deregulation of price controls of several categories of natural gas and the deregulation of sales of certain categories of natural gas. Under the Natural Gas Wellhead Decontrol Act of 1989 (the I "Decontrol Act"), certain natural gas previously subject to NGPA and NGA price and non-price controls became decontrolled. Pursuant to the Decontrol Act, all NGPA and NGA price and nonprice controls affecting wellhead sales of natural gas will be removed by January 1, 1993. The Company is unable to predict the consequences of the Decontrol Act on its operations. terminate certain of their existing purchase contracts, but ultimately may enhance the Company's ability to market and transport its gas production. Regulation of natural gas importation is administered primarily by the Department of Energy's Economic Regulatory Administration (the."ERA"), pursuant to the NGA. The NGA provides that any party seeking to import natural gas must first seek ERA authorization, which authorization may be granted, modified or denied in accordance with the public interest. pany's release from Big Piney long-term natural gas purchase contracts with Northwest Pipeline Corporation was obtained pursuant to Order No. 490. Appeals of Order No. 490 and related orders are currently pending. The Company cannot predict the outcome of these proceedings, but Supreme Court precedent sustaining portions of another generic abandonment order arguably applies as well to Order No. 490 and therefore may strengthen its chances of being sustained on appeal. In the event Order No. 490 is vacated, the Company would be required to use or obtain, if possible, other abandonment authority to implement this settlement. The Company believes that such authorities either exist or could be obtained. Commencing in late 1985 and early 1986, the FERC issued a series of orders (Order No. 436, Order No. 500, Order No. 528 and related orders), which significantly altered the marketing and pricing of natural gas. The general applicability of several of these orders has been contested in the Federal courts. Among other things, the new regulations (i) require interstate pipelines that elect to transport gas for others under self-implementing authority to provide transportation services to all shippers on a non-discriminatory basis; (ii) permit each existing firm sales customer of such pipelines to modify over at least a five-year period its existing purchase obligations; (iii) establish guidelines that permit pipelines to recover from customers a portion of payments made to producers in settlement of take-or-pay contract disputesMost of the major interstate pipelines have accepted authorizations from the FERC to perform transportation under these rules, while others have settlement proceedings pending before the FERC to permit them to operate under the new regulations. The "spot" market for natural gas has been greatly enlarged by, among other things, the availability of transportation services under Order No. 436 and related orders. Additionally, the National Energy Board of Canada has dramatically revised its gas export policies to permit large volumes of Canadian gas to compete with gas produced in the U.S. for the U.S. spot market. Additional natural gas pipeline capacity from Canada to the U.S. has been built and other such construction proposals are pending approval· Certain policies of the Department of Energy encourage importation of such Canadian gas. Canadian gas competes directly with gas produced from the Company's Big Piney area for customers located in the Pacific Northwest region of the United States. non-discriminatory The effect of Order No. 500 and Order No. 528 is to suggest several permissible alternative proposals for passthrough of take-or-pay costs, including allocation and direct billing based on current firm customers' contract rights, allocation and direct billing based on current throughput volumes or collection through a surcharge applied to actual volumes sold and transported. Some pipelines have passthrough agreements with their customers that are unaffected by court decisions and Order No. 528. Those pipelines that do not will be forced to apply to collect past take-or-pay costs from current and future sales and transportation customers in accordance with Order No. 528. Pipelines required to make refunds or unable to make such collection may be able to invoke "FERC out" type clauses in producer natural gas contracts and settlements. The most likely effect upon the Company, if any, would be an increase in the take-or-pay surcharge components of the transportation tariffs pursuant to which it and all other shippers similarly situated have natural gas transported. Management does not believe that any such increase in transportation rates would have a material adverse effect on the financial condition or results of operations of the Company. In July 1991 the FERC issued a proposed rule that, if promulgated, would significantly restructure the gas pipeline industry by requiring gas pipelines to "unbundle" or segregate the sales, transportation, and other components of their existing city-gate sales service. The purpose of the proposed rule is to further enhance competition in the gas industry. The proposed rule would not directly regulate the Company's activities, but may have an indirect effect because of its broad scope. Since the FERC's final rule has not yet been issued, the precise form of the rule is not known at this time. While the Company cannot predict the effects of the rule, if issued, the Company believes it may create initial confusion and uncertainty, and may cause pipelines to seek to renegotiate or In February 1988, the FERC approved new abandonment rules (Order No. 490) for expired, cancelled, or modified contracts. The abandonment authorization required to effectuate the Com- In December, 1991, the FERC extended for another year its Order No. 497 regulations, which establish standards of conduct, record keeping and reporting requirements and other measures to govern relationships between interstate pipelines and their marketing affiliates. These regulations are subject to pending appeals. The regulations under the Order do not directly regulate the Company's activities, although a substantial portion of the Company's natural gas production is sold to or transported by interstate pipeline affiliates which are subject to the order. The Company's activities may therefore be indirectly affected by these regulations. The Company cannot predict the effect that any of the aforementioned orders or the challenges to such orders will ultimately have on the Company's operations. Additional proposals and proceedings that might affect the natural gas industry are pending before Congress, the FERC and the courts. These include several energy bills and executive branch initiatives that seek to decrease reliance by the United States on foreign crude oil and propose, among other things, to streamline or eliminate the certification process for certain types of natural gas pipelines. The Company cannot predict when or whether any such proposals or proceedings may become effective. Environmental Regulation. Various federal, state and local laws and regulations covering the discharge of materials into the environment, or otherwise relating to the protection of the environment, may affect the Company's operations and costs as a result of their effect on natural gas and crude oil exploration, development and production operations. It is not anticipated that the Company will be required in the near future to expend amounts that are material in relation to its total capital and exploration expense expenditure program by reason of environmental laws and regulations, but inasmuch as such laws and regulations are frequently changed, the Company is unable to predict the ultimate cost of compliance. The Company has been named as a potentially responsible party in certain Comprehensive Environmental Response Compensation and Liability Act proceedings. However, management does not believe that any potential assessments resulting from such proceedings will individually or in the aggregate have a materially adverse effect on the financial condition or results of operations of the Company. Canadian Regulation. In Canada, the petroleum industry operates under Federal, provincial and municipal legislation and regulations governing land tenure, royalties, production rates, pricing, environmental protection, exports and other matters. The price of natural gas and crude oil in Canada has been deregulated and is now determined by market conditions and negotiations between buyers and sellers. Various matters relating to the transportation and export of natural gas continue to be subject to regulation by both provincial and Federal agencies; however, the Canada U.S. Free Trade Agreement has reduced the risk of altering cross-border commercial transactions. Ben B. Boyd has been Vice President and Controller since March 1991. Mr. Boyd joined the Company in March 1989 as Director of Accounting and was named Controller in May 1990. Prior to joining the Company, Mr. Boyd held financial management positions with DeNovo Oil & Gas, Inc., Scurlock Oil Company and Coopers & Lybrand. J. Chris Bryan has been Vice President-Administration & Human Resources since May 1986. From December 1984 to March 1986 Mr. Bryan served as Vice President-Human Resources of Houston Natural Gas Corporation. Prior to joining Houston Natural Gas Corporation, Mr. Bryan held management positions in Human Resources with Natomas North America, Inc. and Diamond Shamrock. Ralph C. Lamb, Jr. has been Vice President-Exploration since joining the Company in March 1988. Prior to that time, Mr. Lamb was employed for over 25 years with Chevron Corp. in various technical and managerial positions. After leaving Chevron Corp., Mr. Lamb held management positions with Ratliff Exploration Company and TXO for four years· Dennis M. Ulak has been Vice President and General Counsel since March 1992. Mr. Ulak joined the Company in March 1987 as Senior Counsel and was named Assistant General Counsel in August 1990. Prior to joining the Company, Mr. Ulak held various legal positions with Enron Corp. and Northern Natural Gas Company. Item 2. Properties Oil and Gas Exploration and Production Properties and Reserves Reserve Information. For estimates of the Company's net proved and proved developed reserves of natural gas and liquids, including crude oil, condensate and natural gas liquids, see "Supplemental Information to Consolidated Financial Statements." There are numerous uncertainties inherent in estimating quantities of proved reserves and in projecting future rates of production and timing of development expenditures, including many factors beyond the control of the producer. The reserve data set forth m Supplemental Information to Consolidated Financial Statements represent only estimates. Reserve engmeermg is a subjective process of estimating underground accumulations of natural gas and liquids, including crude oil, condensate and natural gas liquids, that cannot be measured in an exact manner. The accuracy of any reserve estimate is a function of the amount and quality of available data and of engineering and geological interpretation and judgment. As a result, estimates of different engineers normally vary. In addition, results of drilling, testing and production subsequent to the date of an estimate may justify revision of such estimate. Accordingly, reserve estimates are often different from the quantities ultimately recovered. The meaningfulness of such estimates is highly dependent upon the accuracy of the assumptions upon which they were based. In general, the volume of production from oil and gas properties owned by the Company declines as reserves are depleted. Except to the extent the Company acquires additional properties containing proved reserves or conducts successful exploration and development activities, or both, the proved reserves of the Company will decline as reserves are produced. Volumes generated from future activities of the Company are therefore highly dependent upon the level of success in acquiring or finding additional reserves and the costs incurred in doing so. The Company's estimates of reserves filed with other federal agencies agree with the information set forth in Supplemental Information to Consolidated Financial Statements. 12 Acreage. The following table summarizes the Company's developed and undeveloped acreage at December 31, 1991. Excluded is acreage in which the Company's interest is limited to owned royalty, overriding royalty and other similar interests. Undeveloped Gross Net Developed Gross United States Texas Federal Offshore Net 409,973 214,481 Wyoming New Mexico Utah Oklahoma California Colorado Kansas Nevada Montana . 246,863 86,155 148,238 112,115 75,212 116,193 16,389 103,183 46,304 29,034 3,519 3,955 4,545 1,761 1,262,041 381,884 7,672 12,785 Manitoba British Columbia Total Canada Other International 656 402,997 Malaysia Egypt Syria Indonesia United Kingdom Total Other International Total 65,933 55,467 27,732 22,127 84,804 1,169 18,826 19,594 34,951 10,269 8,631 6,319 24,971 2,824 - 556,007 371,099 446,096 284,657 320,447 221,861 89,951 178,048 130,679 143,925 38,516 113,838 16,265 41,153 147,505 9,166 - Net 74,539 77,783 33,756 38,470 14,224 8,631 7,488 - 987 5,206 1,180 7,415 1,186 406 2,694 6,292 1,294 4,001 618,072 3,277 2,240 897,312 612,134 2,159,353 1,700 1,230,206 173,174 7,672 262,471 65,164 132,360 644,355 305,534 62,724 72,836 8,469 17,678 17,531 30,463 656 70,396 26,000 164 402,094 164 189,479 - - - - - - - - - - - - 1,665,038 23,313 11,720 41,153 - 6,342 2,209 3,015 North Dakota Other Total U.S. Canada Alberta Saskatchewan 172,209 51,226 122,534 124,236 198,502 118,678 43,647 231,615 58,957 14,162 - Arkansas Louisiana 146,034 Total Gross - - 345,313 212,615 748,310 2,283,204 624,300 970,362 642,460 374,580 527,213 199,855 206,613 49,964 527,213 199,855 4,919,492 2,243,979 3,068,728 4,919,492 7,827,155 2,283,204 1,284,920 807,551 6,162,117 1,284,920 624,300 2,167 3,880 970,362 642,460 374,580 206,613 49,964 2,243,979 3,876,279 Producing Well Summary. The following table reflects the Company's ownership in gas wells in 324 fields and oil wells in 119 fields located in Texas, offshore Texas and Louisiana in the Gulf of Mexico, Oklahoma, New Mexico, Utah, Wyoming and various other states and Canada at December 31, 1991. Gross oil and gas wells include 111 with multiple completions. Productive WeHs Net Gross Gas Oil . . . . . . . . . . . . . - - - - - . . - - . Total -------..... . . . . . . . . ......... 13 . . . . . . . . . . . . . . . . 2,542 1,209 1,462 589 3,751 2,051 Drilling and Acquisition Activities. During the years ended December 31, 1991, 1990 and 1989 the Company spent approximately $254.8,$300.3 and $230.0 million, respectively, for exploratory and development drilling and acquisition of leases and producing properties. The Company drilled, participated in the drilling of or acquired wells as set out in the table below for the periods indicated: 1991 Gross Net 193 165.25 6 29 228 3.89 Year Ended December 31, 1989 1990 Net Gross Gross Net Development Wells Completed Domestic Gas Oil Dry Total International Gas Oil Dry Total Total Development 8 9 21.43 190.57 124 19 23 166 18 29 6 21 249 5.33 8.50 2.86 16.69 207.26 219 14 1 13 10.54 1.00 10.38 12 2 28 3 4 93.79 8.86 18.45 121.10 109 9 14 132 16 19 86.43 4.76 10.21 101.40 7.31 14.36 1.11 11.73 27.15 4.71 43.59 164.69 3 38 22.78 170 124.18 6.98 8 5.24 1 14 0.35 10.42 21.92 22 36 1.40 17.20 25.58 23 16.01 1.83 13 6.70 17 6 8 5.50 3 5.70 23 43 10.58 1.65 14.94 27.17 43.18 53 Exploratory Wells Completed Domestic Gas Oil Dry Total International Gas Oil Dry Total Total Exploratory Total Wells in Progress at end of period Total 1 9 Total * 5.48 7.70 13 41 29.62 290 32 322 236.88 21.60 258.48 Wells Acquired Gas Oil .39 100 5 105 27 17.90 43.48 63 282 26 208.17 66 236 15.04 43 167.36 25.73 308 223.21 279 193.09 70.10* 4.10* 262 182.68* 74.20 262 - - 182.68 78 15.54* - - 78 15.54 Includes the acquisition of additional interests in wells in which the Company previously held an mterest. All of the Company's drilling activities are conducted on a contract basis with independent drilling contractors. The Company owns no drilling equipment. Item 3. Legal Proceedings The Company and its subsidiaries and related companies are named defendants in numerous lawsuits and named parties in numerous governmental proceedings arising in the ordinary course of business. While the outcome of lawsuits or other proceedings against the Company cannot be 14 predicted with certainty, management and counsel do not expect these matters to have a material adverse effect on the fmancial condition or results of operations of the Company. Two lawsuits currently pending in South Texas question the manner in which the Company calculates royalty payments under oil and gas leases requiring payment of royalty based upon the market value of natural gas at the well. Plaintiffs in these lawsuits have asserted that market value at the well should be based upon prices received by affiliates of the Company who purchase the natural gas from the Company and resell it to non-afliliated third parties. The Company takes the position that market value at the well should be determined based upon the prevailing price being paid for comparable sales of natural gas in the field where the natural gas is produced. If the courts were to finally determine that market value at the well should be based upon the price received by an affiliate when such natural gas is resold to a non-affiliated third party, less a deduction for transportation, the Company might be required to change its method of calculating royalty payments in those instances where the Company's natural gas is sold to an affiliate. While the Company cannot predict the outcome of this litigation or its subsequent application, it does not believe the courts will require the Company to make royalty payments on a value in excess of current market value at the well. Therefore, management does not believe the outcome of these cases will materially affect the Company. - Item 4. Submission of Matters to a Vote of Security Holders There were no matters submitted to a vote of security holders during the fourth quarter of 1991. PART II for the Registrant's Common Equity and Related Stockholder Matters The following table sets forth, for the periods indicated, the high and low sale prices per share for the common stock, as reported on the New York Stock Exchange Composite Tape, and the amount of cash dividends paid per share. Item 5. Market Price Range Low 1989 Fourth Quarter(beginning October 4, 19,89) 1990 First Quarter . . . . Second Quarter urtdh . . . . . . . . . . . . . . . . . . . . Cash Dividends High . . . . . . . . . . . . . . . . . . . . . . . . . . . $25.25 _ 20.63 25.00 24.75 .................................... $19.00 $ 20.75 .05 .05 u 1991First uarter Secon Quarter Third Quarter Fourth Quarter . 22.25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.25 18.00 17.63 19.25 21.50 24.63 25.13 05 05 .05 .05 As of March 9, 1992, there were approximately 3,500 holders of the Company's common stock· Since the Company's initial public offering of its common stock in October 1989, the Company has paid quarterly dividends of $0.05 per share beginning with an initial dividend paid in January 1990 with respect to the fourth quarter of 1989. The Company currently intends to continue to pay quarterly cash dividends on its outstanding shares of common stock. However, the determination of the amount of future cash dividends, if any, to be declared and paid will depend upon, among other things, the Company's financial condition, funds from operations, the level of its capital and exploration expense expenditures and its future business prospects. A certain financing agreement of the Company contains provisions hmiting cash dividends or other distributions to stockholders if aegateborrowiSneesundeer3 iandebted ss of the Company exceeds a tuchCagreemenedaFndmenerLain Year Ended December 31, 1990 1989 1988 (In Thousands, Except Per Share Amounts) 1991 Statement of Income (Loss) Operating expenses Lease and well EDxplrateion oil and . . . . . . . . . . . . . . 49,922 43,806 . . . . . . OLerating income (loss). ecopmeense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . net - . . . . . . . . . . . . . . . . . . . $ 277,587 39,889 . . . . . . . . $ 268,415 46,345 47,965 21,364 11,109 . . . . . . . . . $ $ 40,240 23,760 (117) 283,117 140,512 159,704 39,087 11,344 28,953 17,441 42,619 27,918 11,000 328,216 (50,629) 60,750 29,076 36,183 33,225 34,419 34,759 45,669 (9,265) 54,934 34,614 (9,485) (24,298) (8,581) (69,315) (28,696) - 324,204 63,401 . 134,313 38,254 22,966 - . . 10,832 155,877 18,222 . . 20,571 36,216 . . 1988 1987 $1,339,666 $1,305,136 $1,249,657 $1,222,768 $1,464,421 1,455,608 1,417,939 1,365,819 132,836 289,556 650,203 277,918 140,442 401,092 610,042 582,321 . 3) 1,308,051 1,570,874 538,397 538,018 - - 3) - 377,155 (2) 560,041 (1) Includes a benefit of approximately $17 million in 1991 relatin to tight gas sand tax credits and $7 million and $25 million associated with the utilization of a net operating loss carryforward in 1991 and 1990, respectively. (2) The reduction in 1988 versus 1987 principally reflects the effect of a series of equity transactions resulting in a net return of capital and dividend of $175 million paid by the Company to Enron Corp. which was funded by a portion of proceeds from sales of oil and gas property interests. (3) The Company completed an initial public offering of 11,500,000 shares of common stock in October 1989 resulting in aggregate net proceeds to the Company of approximately $202 million which were used to repay advances from affiliates. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Qperations The following review of operations for each of the three years in the period ended December 31, 1991 should be read in conjunction with the consolidated financial statements of the Company and notes thereto beginning with page F-1. Volume and price statistics for the specified years were as follows: . 1987 .72 329,491 6,299 41,844 $ $ (10,854) 45,468 .60 $ $ (3,384) (6,101) $ (15,717) (.09) $ 21,415 - Year Ended December 31, 1991 1990 1989 Wellhead Sales Volumes Natural Gas (MMcf per day) Crude Oil and Condensate (MBbl per day) Natural Gas Liquids (MBbl per day) Wellhead Sales Average Prices Natural Gas ($/Mcf) Crude Oil and Condensate ($/Bbl) Natural Gas Liquids ($/Bbl) Other Natural Gas Marketing Volumes (MMcf per day) Average Sales Prices ($/Mcf) Average Purchase Costs ($/Mcf) 0) 321,351 (52,936) 18,380 $ (40,619) (.25) $ 75,900 75,900 66,838 64,000 (Table continued on . . . . . . . . (.63) 64,000 following page) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Margin ($/Mcf) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Average number of common shares . . . 160,885 . s et of interest capitahzed) Income (loss) before income taxes Income tax benefit 01 Net income (loss) Earnings (loss) per share of common stock . . . . nte . . . Net Operating Revenues. 3 12,791 . . Total $ 289,416 6 _gas . $ 371,335 . General and administrative Taxes other than income Other . . . . . properties n11ortnÌz eipoletion. . $ 387,605 of unproved Impairment Deapnrd . . Balance Sheet Data: Oil and gas properties Total assets. Long-term debt Afäliate Other................... Stockholders' equity. At December 31 1989 (In Thousands) 1990 Results of Operations Item 6. Selected Financial Data Ne o erating revenues 1991 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455.1 8.2 0.6 8.2 0.4 344.4 8.3 0.5 $ 1.37 $ 1.51 $ 1.61 18.78 11.64 21.67 17.04 10.59 9.87 . . . 490.6 . . 237.2 2.63 1.75 $ $ .88 153.9 67.1 $ 2.90 $ 3.30 1.99 2.07 $ .91 $ 1.23 (1) Including transportation. During 1991, net operating revenues increased $16 million as compared to 1990 to $388 million. Average wellhead natural gas sales volumes increased 8% compared to 1990 reflecting the effects of exploration and development activities, as well as the acquisition of properties in the South Texas Lobo Trend and Matagorda Trend areas. Although exploration and development efforts have resulted in significant deliverability increases in the Lobo Trend, Sawyer Canyon and Big Piney areas, these focused toward optimizing the development of natural gas reserves that are qualified for the tight formation natural gas federal income tax credit, acquisitions of proved reserves in core areas, and an increased emphasis on developing oil reserves. The level of capital and exploration expense expenditures may vary in 1992 and will vary in future periods depending on energy market conditions and other related economic factors. Based upon existing economic and market conditions, the Company believes net operating cash flow and available fmancing alternatives in 1992 will be sufficient to fund its net investing cash requirements for the year. However, the Company has significant flexibility with respect to its financing alternatives and adjustment of its capital and exploration expense expenditure plans as circumstances warrant. There are no material continuing commitments associated with expenditure plans. Item 8. Financial Statements and Supplementary Data The information required hereunder is included in this report as set forth in the "Index to Financial Statements" on page F-1. Item 9. Disagreements on Accounting and Financial Disclosure None. PART III Item 10. Directors and Executive O.§icers of the Registrant The information required by this Item regarding directors is set forth in the Proxy Statement under the caption entitled "Election of Directors", and is incorporated herein by reference. See list of "Current Executive Ofäcers of the Registrant" in Part I located elsewhere herein. There are no family relationships among the ofBcers listed, and there are no arrangements or understandings pursuant to which any of them were elected as ofBcers. Officers are appointed or elected annually by the Board of Directors at its first meeting following the Annual Meeting of Stockholders, each to hold ofäce until the corresponding meeting of the Board in the next year or until a successor shall have been elected, appointed or shall have qualified. Item 11. Executive Compensation The information required by this Item is set forth in the Proxy Statement under the caption "Compensation of Directors and Executive Officers", and is incorporated herein by reference. Item 12. Security Ownership of Certain Beneficial Owners and Management The information required by this Item is set forth in the Proxy Statement under the captions "Election of Directors" and "Compensation of Directors and Executive Officers", and is incorporated herein by reference. Item 13. Certain Relationships and Related Transactions The information required by this Item is set forth in the Proxy Statement under the caption "Certain Transactions", and is incorporated herein by reference. 24 P A RT IV Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K (a)(1) and (2) Financial Statements and Financial Statement Schedules See "Index to Financial Statements" set forth on page F-1. (a)(3) Exhibits See pages E-1 through E-2 for a listing of the exhibits. (b) Reports on Form 8-K No reports on Form 8-K were filed by the Company during the last quarter of 1991. INDEX TO FINANCIAL STATEMENTS ENRON OIL & GAS COMPANY Page Consolidated Financial Statements: Report of Independent Public Accountants Management's Responsibility for Financial Reporting Consolidated Statements of Income (Loss) for Each of the Three Years in the Period Ended December 31, 1991 Consolidated Balance Sheets December 31, 1991 and 1990 Consolidated Statements of Stockholders' Equity for Each of the Three Years in the Period Ended December 31, 1991 Consolidated Statements of Cash Flows for Each of the Three Years in the Period Ended December 31, 1991 Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supplemental Information to Consolidated Financial Statements . Financial Statement Schedules: Schedule V -Property, Plant and Equipment Schedule VI -Accumulated Depreciation, Depletion and Amortization of Property, Plant and Equipment Schedule VIII -Valuation and Qualifying Accounts and Reserves. Schedule X -Supplemental Income Statement Information . . . . . . . . . . . . . Other financial statement schedules have been omitted because they are inapplicable or the information required therein is included elsewhere in the consolidated financial statements or notes thereto. F-1 . . . . . . . . . F-2 F-3 F-4 F-5 F-6 F-7 F-8 F-18 S-1 . S-2 S-3 . S-4 ENRON OIL & GAS COMPANY ENRON OIL & GAS COMPANY CONSOLIDATED STATEMENTS OF INCOME (LOSS) (In Thousands Except Per Share Amounts) CONSOLIDATED BALANCE SHEETS (In Thousands) 4 1991 NET OPERATING REVENUES Natural Gas Associated Companies Trade............... Crude Oil, Condensate and Natural Gas Liquids Associated Companies Trade. . . . . . . . . . ...... . . Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $275,362 $209,361 46,241 92,284 . . $141,287 90,906 . . . . . . . . . . . . . . . . 41,237 21,599 43,693 22,472 29,757 22,916 4,550 3,525 3,166 387,605 . . . . . . . . . . . . . . . . . . . . . . . . . . ... ................... . Taxes Other Than Income Other . . . . . . . . . . . . . . . . . . . . . . . ............. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289,416 371,335 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Interest Expense INCOME (LOSS) BEFORE INCOME TAXES INCOME TAX BENEFIT NET INCOME (LOSS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EARNINGS (LOSS) PER SHARE OF COMMON STOCK . . 35,031 14,698 12,791 160,885 12,986 39,889 36,216 155,877 38,254 23,988 10,212 10,832 134,313 40,240 18,222 22,966 23,760 20,571 (117) - 63,401 11,344 74,745 Other . . 283,117 6,299 17,441 23,740 36,614 24,325 (4,482) 28,332 12,294 (4,443) 29,076 36,183 33,225 45,669 34,614 (10,854) $ 45,468 (9,485) (3,384) $ (6,101) $ $ (9,265) 54,934 . . . . . . . . . . . . . . . . . . . . 1,179 (4,568) . . . . . . . . . . . $ .72 75,900 .60 75,900 The accompanying notes are an integral part of these consolidated financial statements. F-4 (.09) 66,838 . . . . . . . . . . . 3,799 $ 56,070 ..... . . 33,468 13,221 3,148 . Total OIL AND GAS PROPERTIES (Successful Efforts Method). Less: Accumulated Depreciation, Depletion and Amortization Net Oil and Gas Properties OTHER ASSETS TOTAL ASSETS ..... ....... . . . . . . . . . . . . . . . . . . . . . 109,706 2,228,634 ...... . . . . . . . . . ........... .. . . . . . . . . . . . . . . . 888,968 1,339,666 6,236 $1,455,608 ........ $ 3,595 50,576 40,741 13,202 2,868 110,982 2,065,999 760,863 1,305,136 1,821 $1,417,939 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts Payable Associated Companies Trade Accrued Taxes Payable Dividends Payable . Other . . . . . . . . . . . . . . . . . . . . . . . . . . ........... . . . . . . . . ..... Total LONG-TERM DEBT Afüliate . $ . . . . . . . . . . . . . . . . . . Other........... . . . . DEFERRED INCOME TAXES OTHER LIABILITIES STOCKHOLDERS' EQUITY Preferred Stock, $1 Par, 10,000,000 Shares Authorized, No Shares Issued and Outstanding Common Stock, No Par, 100,000,000 Shares Authorized, 75,900,000 Shares Issued and Outstandmg Additional Paid In Capital Cumulative Foreign Currency Translation Adjustment Retained Earnings Total Stockholders' Equity TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . . . . . . . . . . . . . . . . . . . ....... ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,610 73,647 9,664 $ 19,911 3,795 64,361 8,653 3,795 15,595 113,311 13,264 109,984 132,836 289,556 260,294 277,918 140,442 276,070 9,408 3,483 - - . 200,759 . . . AVERAGE NUMBER OF COMMON SHARES. 329,491 41,844 28,953 70,797 9,233 . . 31,470 324,204 ...... . 43,806 - ................................ Other Capitalized 49,922 . Total. OPERATING INCOME. OTHER INCOME INCOME BEFORE INTEREST EXPENSE AND TAXES INTEREST EXPENSE Incurred Afüliate........... . . ...................... OPERATING EXPENSES Lease and Well Exploration Dry Hole Impairment of Unproved Oil and Gas Properties Depreciation, Depletion and Amortization General and Administrative CURRENT ASSETS Cash and Cash Equivalents Accounts Receivable Associated Companies........... Trade Inventories . ...... . 1989 ASSETS ............ Total At December 31, 1990 1991 ! ........... ... . . Year Ended December 31, 1990 . . . . . . . . . . . . . . . . . . . . . . . . . . 310,504 6,947 131,993 650,203 . . . The accompanying notes are an integral part of these consolidated $1,455,608 200,759 310,504 6,540 92,239 610,042 $1,417,939 financial statements. ENRON OIL & GAS COMPANY ENRON OIL & GAS COMPANY CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (In Thousands Except Per Share Amounts) STATEMENTS OF CASH FLOWS CONSOLIDATED EQUITY (In Thousands) Cumulative 1991 Foreign TCrn common I Stock Balance at December 31, 1988 Net Loss . . . . . . . . . . . . . . . . . . . . . . . 640 - . Contribution from Stockholder Shares Issued to Ofncer Shares Issued by Public Offering. Transfer of Capital Dividend Declared, $.05 Per Share Translation Adjustment . $ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Capital Adjustment 298,973 $ 5,695 Muity $ 71,847 $ 377,155 (6,101) - 5,000 - 200,000 ders, Stoc Earnings 4,396 202,135 (200,000) - - - - - - (6,101) 5,000 4,400 202,250 Operating Cash Inflows: Net Income (Loss) Items Not Requiring (Providing) Cash Depreciation, Depletion and Amortization Impairment of Unproved Oil and Gas Properties Deferred Income Taxes Other, Net Exploration Expenses. Dry Hole Expenses Gains On Sales of Oil and Gas Properties Other, Net Changes in Components of Working Capital and O uLn c e eivable. - - - . . · · . . . . . . . (3,795) 3,412 - (3,795) 3,412 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Balance at December 31, 1990. Net Income. Dividends Paid/Declared, . . . . . . . . . Per Share. Translation Adjustment . . . . . . . . . . . . . . . . . . . 200,759 - . . - - - - - . . . . . . . . . - 200,759 310,504 - 61,951 582,321 45,468 45,468 (15,180) - . . . 9,107 . . 310,504 (2,567) 6,540 - - (15,180) (2,567) 92,239 610,042 54,934 54,934 (15,180) (15,180) 407 $.20 - . . . . . - . . . . - . . . . - . 407 - Inventories . . . . $200,759 $ 310,504 $ 6,947 $131,993 $ 650,203 The accompanying notes are an integral part of these consolidated financial statements. . . . . . . . . . Taxes . . . . . . . . . . . . . . . . Accrued Taxes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,096 123 707 3,839 3,163 (7,976) 241,876 1,251 239,613 (211,673) (31,470) (260,860) .............. (35,031) 22,827 (12,986) 56,706 7,976 (3,549) (230,587) (1,251) 195 (253,227) (145,082) 149,114 (123,174) 140,442 . . . . . . . .............. . . ............... CASH AND CASH EQUIVALENTS AT BEGINNING OFYEAR CASH AND CASH EQUIVALENTS AT END OF YEAR . 381 1,011 (1,006) - - - - (442) (11,507) 4,468 (8,379) 117,185 (199,354) (23,988) (10,212) 35,110 8,379 324 (189,741) (137,305) - 5,000 . . . ................... EQUIVALENTS . ........ Dividends Paid Other,Net NET FINANCING CASH INFLOWS (OUTFLOWS) INCREASE (DECREASE) IN CASH AND CASH . (25,889) (4,003) (14,698) . . . (12,562) 2,022 . . Other.................. Contribution from Stockholder Common Stock Issued . (821) (19) . . ................... 614 10,212 (12,656) (13,056) . . . . . . . . . 23,988 12,986 (31,802) (5,187) - Associated with Investing Activities NET OPERATING CASH INFLOWS INVESTING CASH FLOWS Additions to Oil and Gas Properties Exploration Expenses. Dry Hole Expenses Proceeds.from Property Sales Changes m Components of Working Capital Associated with Investing Activities Other, Net NET INVESTING CASH OUTFLOWS FINANCING CASH FLOWS Long-Term Debt Affiliate . 35,031 14,698 (14,983) . Other Liabilities Other, Net Changes in Components of Working Capital . . . Leceivabslehfor . . Balance at December 31, 1991. 31,470 . . Balance at December 31, 1989. Net Income. Dividends Paid/Declared, $.20 Per Share. Translation Adjustment 134,313 10,832 12,727 (1,950) . . $ (6,101) 155,877 20,571 (21,728) 10,597 . . $ 45,468 160,885 12,791 (19,015) 5,073 . . . . - . $ 54,934 . . . . - . . · 1989 CASH FLOWS FROM OPERATING ACTIVITIES Reconciliation of Net Income (Loss) to Net . - 4 115 lantÅnRetained Year Ended December 31, 1990 ............... . $ 206,650 (15,180) 63 (11,085) (15,180) (205) 1,883 87,619 204 (11,731) 15,063 3,595 15,326 263 3,595 $ 15,326 3,799 $ - 13,274 The accompanying notes are an integral part of these consolidated financial statements. F-6 Capitalized Interest Costs. Certain interest costs have been capitalized as a part of the historical cost of unproved oil and gas properties. Interest costs capitalized during each of the three years in the period ended December 31, 1991 are set out in the Consolidated Statements of Income (Loss). ENRON OIL & GAS COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (In Thousands Unless Otherwise Indicated) 1. Summary of Significant Accounting Policies Principles of Consolidation. The consolidated financial statements of Enron Oil & Gas Company (the "Company"), 84.3% of the outstanding common stock of which is owned by Enron Corp include the accounts of all domestic and foreign subsidiaries. All material intercompany accounts an transactions have been eliminated. Certain reclassifications have been made to prior years' consolidated financial statements to conform with the current presentation. Cash Equivalents. The Company records as cash equivalents all highly liquid short-term investments with maturities of three months or less. Oil and Gas Operations. The Company accounts for its natural gas and crude oil exploration and production activities under the successful efforts method of accounting. Oil and gas lease acquisition costs are capitalized when incurred. Unproved properties with significant acquisition costs are assessed quarterly on a property-by-property basis and any impairment in value is recognized. Unproved properties with acquisition costs that are not individually significant are aggregated, and the portion of such costs estimated to be nonproductive, based on historical experience, is amortized over the average holding period. If the unproved properties are determined to be productive, the appropriate related costs are transferred to proved oil and gas properties. Lease rentals are expensed as incurred. Oil and gas exploration costs, other than the costs of drilling exploratory wells, are charged to expense as incurred. The costs of drilling exploratory wells are capitalized pending determination of whether they have discovered proved commercial reserves. If proved commercial reserves are not discovered, such drilling costs are expensed. The costs of all development wells and related equipment used in the production of crude oil and natural gas are capitalized. Depreciation, depletion and amortization of the cost of proved oil and gas properties is calculated using the unit-of-production method. Estimated future dismantlement, restoration and abandonment costs, net of salvage values, are taken into account. Certain other assets are depreciated on a straight-line basis· Inventories, Income Taxes. Taxable income of the Company, excluding that of any foreign subsidiaries, is included in the consolidated federal income tax return filed by Enron Corp. Pursuant to a tax allocation agreement with Enron Corp., the provision for (benefit from) income taxes is calculated as if the Company filed a separate federal income tax return but may include benefits from deductions and tax credits that are realizable only on a consolidated basis. In 1991, the Company and Enron Corp. modified the tax allocation agreement to provide that through 1992, the Company will realize the benefit of certain tight gas sand tax credits available to the Company on a stand alone basis. The Company has also entered into an agreement with Enron Corp. providing for the Company to be paid for all realizable benefits associated with tight gas sand tax credits concurrent with tax reporting and settlement for the periods in which they are generated. Taxes for any foreign subsidiaries of the Company are calculated on a separate return basis. The Company accounts for income taxes under the provisions of Statement of Financial Accounting Standards (SFAS) No. 96 "Accounting for Income Taxes". Deferred income taxes have been provided for all differences in the bases of assets and liabilities for tax and financial reporting purposes. - Presently, Canadian operations represent substantially all foreign activities of the Company and the Canadian dollar is considered the functional currency. The functional currency financial statements are translated into U.S. dollars using current exchange rates, and resulting translation gains and losses, which do not impact cash flows, are accumulated as a separate component of Stockholders' Equity. Foreign Currency Translation. Earnings Per Share. Earnings per share is computed on the basis of the average number of common shares outstanding during the periods. 2. Natural Gas and Crude Oil, Condensate and Natural Gas Liquids Net Operating Revenues Natural Gas Net Operating Revenues are comprised of the following: Wellhead Natural Gas Sales Associated Companies(1) Trade consisting primarily of tubular goods and well equipment held for use in the exploration for, and development and production of crude oil and natural gas reserves, are carried at cost with selected adjustments made from time to time to recognize changes in condition valueNatural gas revenues are recorded to recognize that during the course of normal production operations joint interest owners will,irom time to time, take more or less than their share of natural gas volumes from jointly owned reservoirs. These volumetric imbalances are monitored over the life of the reservoir to achieve balancing, or minimize imbalances, by the time reserves are depleted. Final cash settlements are made, generally at the time a property is depleted, under one of a variety of arrangements generally accepted by the industry depending on the specific circumstances involved. The Company accrues values associated with undertakes and defers values associated with overtakes to recognize these imbalances· . . . . Total F-8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Natural Gas Marketing Activities Sales to: Associated Companies . . . . . . Trade Total . . . . . . . . . . . . Purchase Costs from: Associated Companies(1) Trade . . . . . . . . . . . . . . . . . . . Total Net Commodity Price Hedging Loss(4) Total . . . for Futures Contracts. Futures transactions are entered into primarily to hedge contracts to buy and sell crude oil and natural gas, in order to minimize the risk of market fluctuations. Changes in the market value of futures transactions entered into as hedges are deferred until the gain or loss is recognized on the hedged transactions. Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1990 $171,056 $146,901 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1989 $111,853 90,178 75,037 103,506 $246,093 $250,407 $202,031 $220,1a52(2) $157,627 $ 77,610 7,415 227,367 . . . . 1991 115,601(3) 5,546 163,173 95,167(3) 36,011 16,768 151,612 75,755 (245) 75,510 $ 111,935 51,238 - $ 51,238 (Footnotes on 3,166 80,776 48,176 2,438 50,614 30,162 - $ 30,162 following page) Crude Oil, Condensate and Natural Gas Liquids Net Operating Revenues are comprised of the following: Wellhead Crude Oil, Condensate and Natural Gas Liquid Sales Associated Companies Trade . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . Other Crude Oil Marketing Activities Commodity Price Hedging Gain (Loss)(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1990 $37,029 $43,913 21,599 22,472 22,916 $58,628 $66,385 $53,089 $ 4,208 $ (220) $ (416) . . . 1991 . . 1989 $30,173 (1) Wellhead Natural Gas Sales in 1991, 1990 and 1989 include $69,175,$49,332 and $7,030, respectively, of sales by Enron Oil & Gas Company to Enron Oil & Gas Marketing, Inc. ("EOGM"), a wholly-owned subsidiary, reflected as a cost in Natural Gas Purchase Costs· (2) Includes the effect of a price swap agreement with an Enron Corp. affiliated company which effectively fixes the price of certam sales· (3) Includes the effect of a price swap agreement with a third party which fixes the price of certain purchases. (4) Represents futures transactions with Enron Corp. affiliated compames. . 3. Long-Term Debt Credit Agreement. The Company is a party to a Credit Agreement dated as of December 4, 1990, among the Company and the banks named therein (the "Credit Agreement"). As of December 31, 1991, the Credit Agreement provided for aggregate borrowings of up to $300million, subject to certain borrowing base limitations relating to the value of interests in certain oil and gas properties of the Company and its subsidiaries. The borrowing availability under the Credit Agreement is subject to reduction at the option of the Company and to mandatory quarterly reductions beginning in March 1994. At December 31, 1991 the borrowing base was $600million. Loans under the Credit Agreement bear interest, at the option of the Company, based on a base rate, an adjusted CD rate or a Eurodollar rate, plus a varying amount of up to In addition, loans may bear interest at a rate determined pursuant to an auction bidding procedure. Each advance under the Credit Agreement matures on a date selected by the Company at the time of the advance, but in no event after December 31, 1994· rate of 10%, with nine annual principal repayments commenciitg on October 12, 1992. All previous advances not refinanced with the new senior note were repaid with the net proceeds from the offering. Prepayments of $285 million were subsequently made on the senior note and, in May 1991, the $75 million remaining balance was refinanced by the Company with the execution of a promissory note payable to Enron Corp. with a variable rate of interest based on the London Interbank Offered Rate with a rate at December 31, 1991 of 4.6% and with three annual principal repayments of $25million each commencing on May 1, 1994. Interest expense recorded in 1991, 1990 and 1989 for the senior note totaled $6.4, $27.6 and $7.8 million, respectively. Interest expense recorded in 1991 for the promissory note totaled $2.9 million. The Company also entered into an agreement with Enron Corp. effective October 12, 1989 under which the Company may borrow funds from Enron Corp. at a representative market rate of mterest on a revolving basis with a rate at December 31, 1991 of 4.3%. Daily outstanding balances of funds borrowed by the Company under this agreement averaged $2.9million during 1991 with a balance of $57.8million at December 31, 1991. Any loan balance that may be outstanding from time to time is payable on demand but no later than October 12, 1992, the maturity date of this agreement. The liability is classified as long-term based on the Company's intent and ability to refinance such amount using available borrowing capacity. Interest expense recorded in 1991, 1990 and 1989 under the terms of this agreement totaled $172,000,$952,000and $244,000, respectively. The Company also entered into an agreement with Enron Corp. effective October 12, 1989 which provides the Company the option of advancing any excess funds that may be available from time to time to Enron Corp. Enron Corp., under the terms of the agreement, will pay the Company interest at a representative market rate during the periods the funds are held by Enron Corp. The interest rate to be paid the Company is determined using a mechanism identical to that which determmes the interest to be paid on funds borrowed from Enron Corp. on a revolving basis. Daily outstanding balances of funds advanced to Enron Corp. under this agreement averaged $4.3million during 1991 with no advances outstanding at December 31, 1991. Interest income recorded in 1991, 1990 and 1989 under the terms of this agreement totaled $270,000, $187,000and $21,000, respectively. Long-Term Debt, Other. Long-Term Debt, Other at December 31 consisted of the following: .45%. 1991 CommeracialbPeaper Senior Notes Bank Borrowings Total . The Credit Agreement contains affirmative and negative covenants, including maintenance of certain financial ratios and, subject to certain exceptions, prohibitions of liens on, or sales, leases or other dispositions of properties, and of cash dividends or other distributions to stockholders if the aggregate borrowings under the Credit Agreement and certain indebtedness of the Company and its subsidiaries (excluding intercompany indebtedness and certain subordinated debt) exceed the borrowing base under the Credit Agreement. There were no advances outstanding under the Credit Agreement at December 31, 1991. g Financing Arrangements with Enron Corp. The Company engages in various transactions with Enron Corp. that are characteristic of a consolidated group under common control. Activities of the Company not internally funded from operations have been and may be funded by advances from Enron Corp. Prior to the closing of an initial public offering of 11,500,000 shares of common stock of the Company on October 12, 1989, interest expense was charged by Enron Corp. on a portion of the advances covered by a long-term note, which note was converted to a subordinated note effective December 31, 1988, at an interest rate of 10%. Interest charged by Enron Corp. for the subordinated note totaled $28.6 million in 1989. The portion of the advances which were interest bearing averaged $365.0million in 1989, as compared to total advances which averaged $554.0 million for the same period. Concurrent with the closing of the initial public offering, the Company entered into a new senior note agreement with Enron Corp. in the amount of $360 million and bearing interest at the F-10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1 1990 % 100,000 10,000 $ W - - $289,556 $140,442 Commercial Paper and Bank Borrowings were issued at prevailing market interest rates. These liabilities are classified as long-term based on the Company's intent and ability to refinance such amounts using available borrowing capacity. Proceeds from the commercial paper program and bank borrowings are used to fund current transactions. The weighted average interest rate for these obligations at December 31, 1991 was 5.6%. a The Loans Payable are due in 1995 and bear interest at a variable rate based on the London Interbank Offered Rate which has, in effect, been converted to fixed interest rates ranging from 8.48% to 8.98% through maturity using interest rate swap agreements in equivalent dollar amounts. The proceeds from this debt were used to prepay a portion of long-term debt due Enron Corp. The Senior Notes bear interest at 9.1% with principal repayments of $30 million due in 1994 and 1996 and $20 million due in 1997 and 1998. The proceeds of these notes were used to prepay a portion of long-term debt due Enron Corp. Certain of the borrowings described above contain covenants requiring the maintenance certain fmancial ratios and limitations on liens, debt issuance and dispositions of assets. of In September 1991, the Company filed with the Securities and Exchange Commission a registration statement providing for the issuance from time to time of up to $250 million of debt securities to the public. As of March 1, 1992, no debt securities had been issued under this registration statement- In December 1991 and Janurary 1992 and effective in January 1992, the Company entered into interest rate swap agreements with third parties in notional amounts totaling $225 million which had the effect of fixingthe interest rates on an equivblent dollar amount of floating rate obligations for one to two years. The fixed rates average approximately 4.9%. 4. Stockholders' Equity In July 1989, the Company issued to an officer 400,000 shares of its common stock valued at $11.00per share at the time of grant. (See Note 7 "Commitments and Contingencies Enron Oil & Gas Company Executive Compensation Plan"). - During October 1989, the Company completed an initial public offering of 11.5 million shares of common stock. The shares were priced to the public at $18.75 per share. Net proceeds after underwriting commissions and expenses totaled approximately $202 million and were used primarily to repay advances from affiliates. Enron Corp. retained ownership of approximately 84.3% of the Company. In October 1989, the Board of Directors of the Company approved the transfer of from Additional Paid In Capital to Common Stock. $200 million 5. Transactions with Enron Corp. and Related Parties Natural Gas, Crude Oil and Condensate, and Natural Gas Liquids Net Operating Revenues. Wellhead Natural Gas and Crude Oil, Condensate and Natural Gas Liquids Sales and Other Natural Gas and Crude Oil Marketing Activities include sales to and purchases from various subsidiaries and affiliates of Enron Corp. pursuant to contracts which, in the opinion of management, are no less favorable than could be obtained from third parties. Other Natural Gas and Crude Oil Marketing Activities also include certain price swap and futures transactions with Enron Corp. afilliate companies. See Note 2 "Natural Gas and Crude Oil, Condensate and Natural Gas Liquids Net Operating Revenues"• 6. Income Taxes The components of income (loss) before income taxes were as follows: 1991 United States Foreign . . . . . Total . . . . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Current: Federal State . . . . . . . . . . . . . . . . . . . . . . See Note 3 "Long-Term Debt" for a discussion of financing arrangements F-12 $ 49,187 $ 45,669 . (3,518) . . . Foreign Total . . . . . . . . . 1990 1989 $ 33,008 $ (11,439) 1,606 1,954 $ 34,614 $ (9,485) 1991 1990 1989 $ 9,226 $ 10,588 $ (16,798) - 396 291 - . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,750 286 10,874 (16,111) (20,301) (24,457) 13,116 524 . . . . . . . . . . . . Deferred: Federal State . . Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Income Tax Benefit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,328 (42) (19,015) . $ (9,265) . 1,600 1,129 (21,728) $ (10,854) - (389) 12,727 $ (3,384) The differences between the U.S. Federal income tax rate and the Company's effective income tax rate were caused primarily by permanent book and federal income tax differences as follows: 1990 1989 15,528 $ 11,768 $ (3,225) 2,554 1,836 (558) 1991 Statutory Federal Income Tax (Benefit) State and Foreign Income Tax (Benefit) Amortization of Permanent Differences Resulting from Acquisitions Tight Gas Sand Tax Credits Foreign Tax Credit Net Operating Loss Utilization Tax Audit Settlement Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298 - - . . . . . . . . . . . . (16,926) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Income Tax Benefit $ . . . . . Additionally, certain administrative costs not directly charged to any Enron Corp. operations or business segments are allocated to the entities of the consolidated group. Allocation percentages are generally determined utilizing weighted average factors derived from property gross book value, revenue less certain operating expenses and payroll costs. Effective January 1, 1989, the Company entered into an agreement with Enron Corp., with an initial term of five years, providing for, among other things, an annual cap of $8.0 million to be applied to indirect allocated charges subject to adjustment for inflation and certain changes in the allocation bases of the Company. Approximately $9.4million, $8.6 million and $8.0 million were charged to the Company for indirect general and administrative expenses for the years ended December 31, 1991, 1990 and 1989, respectively. Management believes the indirect allocated charges for the numerous types of support services provided by the corporate staff are reasonable. Financing. Enron Corp. . Total income taxes (benefits) were as follows: . General and Administrative Expenses. The Company is charged by Enron Corp. for all direct costs associated with its operations. Such direct charges, excluding benefit plan charges (See Note 7 "Commitments and Contingencies Employee Benefit Plans"), totaled $7.4 million, $8.1 million and $8.0 million for the years ended December 31, 1991, 1990 and 1989, respectively. Management believes that these charges are reasonable. . . . (339) (6,656) (3,466) 40 $ (9,265) * with F-13 - - - - (24,498) - - - 40 $ (10,854) 101 $ (3,384) Deferred taxes result from changes in differences in the bases of assets and liabilities for tax and fmancial reporting purposes as follows: Exploration and Development Costs. Depreciation, Dépletion and Amortization Surrendered and Expired Leases Capitalized Interest Financial Reserves Property Sales Net Operating Loss Carryforward Tax Audit Settlement Other . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .'. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1990 1989 $ 1,107 $ 7,074 $ 24,447 (27,300) 245 1,186 (396) . . . . . 1991 . . . . . . . (104) 10,218 (3,466) (30,206) 2,381 1,170 4,563 (3,567) (2,792) - (25,379) 15,669 1,534 2,095 1,362 (7,412) - (505) (351) 411 $ (19,015) $ (21,728) $ 12,727 Current income tax (payable to) receivable from Enron Corp. at December 31, 1991, 1990 and $(4,522),$(2,310)and $10,467,respectively. In 1991, the Company utilized a net operating loss carryforward for federal mcome tax purposes of approximately $32million that had been included in the Enron Corp. consolidated net operating loss carryforward. The benefits of this net operating loss have been recognized for financial reporting purposes as a reduction of deferred income taxes payable in the period in which they were generated. In 1991 and 1990, the Company recognized for financial reporting purposes the benefits attributable to the utilization of an approximate $109.5 million previously unrecognized separate company net operating loss carryforward. Of the resulting tax benefits, approximately $7 million and 1989 amounted to . $25 million are reflected in 1991 and 1990 7. net income, respectively. method of adoption. Based upon an evaluation of the Company's current postretirement benefit plans and assuming delayed recognition of the transition obligation (estimated to be approximately $2.9 million at January 1, 1993), beginning in 1993 the estimated annual expense to be accrued under the provisions of the Standard would total approximately $.5 million as compared to approximately the same amount on a pay-as-you-go basis. Enron Oil & Gas Company Executive Compensation Plan. The Company has adopted an executive compensation plan under which grants of full value share ("FVS") and/or share appreciation right ("SAR") units may be granted to individuals who are key employees and to non-employee directors (the "Plan"). The Plan is administered by the Compensation Committee of the Board of Directors of Enron Oil & Gas Company, which consists of designated non-employee directors who do not participate in the Plan. The Plan provides for the issuance of an aggregate of 3 million SAR units and 750,000 FVS units (subject to adjustment in the event of stock dividends, stock splits, and other contingencies). SAR and FVS units are granted at the fair market value (as defined in the Plan) of Company common stock at the time of grant. Upon exercise of FVS units, the grantee receives cash in an amount equal to the fair market value of common stock at the time of exercise. Upon exercise of SAR units, the grantee receives cash in an amount equal to the excess, if any, of the fair market value of common stock at the time of exercise over the fair market value at time of grant. Grants under the Plan vest in accordance with the vesting schedule outlined in each participant's agreement but in no event will vesting occur in less than one year. In the event of dissolution of the Company or certain mergers, consolidations, sales of assets, changes in stock ownership or changes in members of the Company's board of directors, which events are not approved, recommended or supported by a majority of the board of directors of the Company prior to the occurrence of such events, then all outstanding grants of SAR and FVS units will be surrendered to the Company (whether or not then otherwise exercisable)in exchange for a cash payment by the Company for each such surrendered unit in an amount equal to the per share price offered to stockholders in connection with such events or the fair market value of the common stock, less, in the discretion of the Company, the grant price per surrendered unit. Dividends accrue on FVS units only. However, no FVS units were outstanding at December 31, 1991. The following table sets forth SAR transactions for the years ended December 31: Commitments and Contingencies Employee Benefit Plans. Employees of the Company are covered by various retirement, stock purchase and other benefit plans of Enron Corp. During each of the years ended December 31, 1991, 1990 and 1989, the Company was charged $3.6 million, $3.5 million and $1.4 million, respectively, for all such benefits, including pension expense (credit) totaling $.4 million, $.4 million and $(.3) million, respectively, by Enron Corp· As of September 30, 1991, the most recent valuation date, the actuarial present value of projected plan benefit obligations for the Enron Corp. defined benefit plan in which the employees of the Company participate exceeded the plan net assets by approximately $6.8 million. The assumed discount rate, rate of return on plan assets and rate of increases in wages used in determining the actuarial present value of projected plan benefits were 9.0%, 10.5%, and 5.0%, respectively. The Company also has in effect alpension and a savings plan related to its Canadian subsidiary. Activity related to these plans is notsignificant to the Company's operations. During December 1990, the Financial Accounting Standards Board issued SFAS No. 106 "Accounting for Postretirement Benefits Other Than Pensions" (the "Standard"). The Standard is effective for fiscal years beginning after December 15, 1992 and requires that employers providing health, life insurance and other postretirement benefits (other than pension benefits) accrue the cost of those benefits over the service lives of the employees expected to be eligible to receive such benefits. Such costs are currently recognized on a pay-as-you-go basis. The liability for such benefits existing as of the date of adoption of the Standard (the transition obligation) may be immediately charged to earnings or may be amortized over a period not to exceed 20 years. The Company anticipates that it will adopt the provisions of the Standard during 1993 but has not determined the F-14 1991 Outstanding at January 1 Granted Exercised (Grant Price of $11.00 per Share) Cancelled Outstanding at December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exercisable at December 31 (Grant Prices of $11.00,$21.50and $22.625per Share) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Number of Shares 1990 1989 1,538,750 193,000 (114,125) (25,000) 1,410,000 140,500 (9,750) (2,000) 1,592,625 1,538,750 1,410,000 507,750 220,000 723,500 - 1,410,000 - - In December 1991, the Board of Directors of the Company adopted the Enron Oil & Gas Company 1992 Stock Plan (the "Stock Plan"). Subsequent to year end, all outstanding SAR units are being cancelled and replaced with options under the Stock Plan, contingent upon stockholder approval of the Stock Plan. Such cancellations and issuances may result in adjustment of previously accrued obligations. Other Current Liabilities at December 31, 1991 and 1990 includes approximately $5.8 million and $8.0 million, respectively, of accrued obligations relating to exercisable SAR units. In connection with an employment agreement, as amended, between the Company and the Chairman of the Board, President and Chief Executive Officer of the Company, the Chairman of the Board, President and Chief Executive Officer received from the Company during 1989, a one-time cash payment of $2,250,000, a one-time grant of 400,000 shares of common stock of the Company F-15 $11.00per share at time of grant, and a grant of 1,100,000 SAR units under the Company's Executive Compensation Plan· valued at Contingencies. There are various suits and claims against the Company having arisen in the ordinary course of business. However, management does not believe these suits and claims will individually or in the aggregate have a material adverse effect on the Company's financial condition or results of operations. The Company has been named as a potentially responsible party in certain Comprehensive Environmental Response Compensation and Liability Act proceedings. However, management does not believe that any potential assessments resulting from such proceedings will individually or in the aggregate have a material adverse effect on the financial condition or results of operations of the Company. In connection with determining Net Operating Cash Inflows, significant gains on sales of certain oil and gas properties in the amount of $14,983,000,$31,802,000and $12,656,000 are required to be classifiedas investing cash flows for the years ended December 31, 1991, 1990 and 1989, respectively. However, current accounting guidelines will not permit the relevant federal income tax impact of these transactions to be similarly classified. The current federal income tax impact of these sales transactions was calculated by the Company to be $5,124,000,$15,165,000and $6,775,000for the years ended December 31, 1991, 1990 and 1989, respectively, which entered into the overall calculation of current federal income tax. The Company believes that this federal income tax impact should be considered in analyzing the elements of the cash flow statement· Cash paid for interest and paid (received) for income taxes was as follows for the years ended December 31: 1991 Interest (net of amount capitalized) . . . . . . . . . . . . . . . . . . . . . . . . $ 35,449 6,618 1990 $ 1989 42,817 $ (8,293) 28,221 (15,897) 9. Business Segment Information The Company's operations are all natural gas and crude oil exploration and production related. Accordingly, such operations are classified as one business segment. Financial information by geographic area is presented below for the years ended December 31, or at December 31: 1991 Gross Operating Revenues United States . Foreign Total. . . . . . . . . . . . . . . ............ . . . . . . $ . . . . . . . . . . . . . . . . . . . . Operating Income (Loss) United States ..................... Foreign Total............ ............ 436,856 1990 1989 $ 400,218 $ 302,094 33,186 ....... . 1991 Gains on Sales of Oil and Gas Properties Settlement/Reformation of Natural Gas Sales and Other Contracts Litigation Reserves Other, Net Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreign Total............ . . . . . . .......... 33,720 30,906 $ 470,042 (1) $ 433,938 (1) $ 333,000 (1) $ 77,333 (13,932) $ $ 63,401 $ ........ . . . . . . . . . . . . . . $14,983 - $31,802 - . . . . . (1,200) (2,439) (1,200) (1,649) $11,344 $28,953 1989 $12,656 6,401 (1,750) 134 $17,441 Substantially all of the Company's accounts receivable at December 31, 1991 result from crude oil and natural gas sales and/or joint interest billings to affiliate and third party companies in the oil and µs industry. This concentration of customers and joint interest owners may impact the Company's overall credit risk, either positively or negatively, in that these entities may be similarly affected by changes in economic or other conditions. In determining whether or not to require collateral from a customer or joint interest owner, the Company analyzes the entity's net worth, cash flows,earnings, and credit ratings. Receivables are generally not collateralized. Historical credit losses incurred on receivables by the Company have not been significant. During 1990 and 1991, the Company entered into certain price swap agreements to, in effect, hedge the market risk caused by fluctuations in the price of natural gas. The agreements call for the Company to make payments to (or receive payments from) the other party based upon the differential between a fixed and a variable price for natural gas as specified by the contract. The current swap agreements run for periods of ten years and have a notional contract amount of approximately $705million at December 31, 1991. Interest rate swap agreements in effect at year-end 1991 run for periods of approximately two to four years and have a notional contract amount of approximately $50 million at December 31, 1991. In December 1991 and January 1992 and effective in January 1992, the Company entered into additional interest rate swap agreements with notional amounts totaling $225 million fixing interest rate obligations for one to two years. While notional contract amounts are used to express the magnitude of price and interest rate swap agreements, the amounts potentially subject to credit risk, in the event of nonperformance by the third parties, are substantially smaller. The Company does not anticipate nonperformance by the third parties. 46,930 (5,086) 41,844 $ 10,373 (4,074) $ 6,299 Identifiable Assets United States . . 1990 11. Concentrations of Credit Risk and Other Financial Instruments 8. Cash Flow Information Income taxes 10. Other Income Other income consists of the following for the years ended December 31: . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,309,967 145,641 $1,455,608 ........... (1) Not deducted are natural gas, crude oil and condensate purchase $43,584in 1991, 1990 and 1989, respectively. F-16 $1,276,955 140,984 $1,417,939 costs of $1,237,831 127,988 $1,365,819 $82,437,$62,603and F-17 ENRON OIL & GAS COMPM SUPPLEMENTAL INFORMATION TO CONSOLIDATED FINANCIAL STATEMENTS (In Thousands Except Per Share Amounts Unless Otherwise Indicated) (Unaudited Except for Results of Operations for Oil and Gas Producing Activities) The following table sets forth the Company's net proved and proved developed reserves at December 31 for each of the four years in the period ended December 31, 1991, and the changes in the net proved reserves for each of the three years in the period then ended as estimated by the Company's engineering staŒ. NET PROVED AND PROVED DEVELOPED RESERVE SUMMARY United States Oil and Gas Producing Activities The following disclosures are made in accordance with SFAS No. 69 and Gas Producing Activities": Natural Gas (MMcf) Proved reserves at December 31, 1988 Revisions of previous estimates Purchases in place Extensions, discoveries and other additions Sales in place Production Proved reserves at December 31, 1989 Revisions of previous estimates Purchases in place . - "Disclosures about Oil Oil and Gas Reserves. Users of this information should be aware that the process of estimating quantities of "proved" and "proved developed" crude oil and natural gas reserves is very complex, requiring significant subjective decisions in the evaluation of all available geological, engineering and economic data for each reservoir. The data for a given reservoir may also change substantially over time as a result of numerous factors including, but not limited to, additional development activity, evolving production history, and continual reassessment of the viability of production under varying economic conditions. Consequently, material revisions to existing reserve estimates occur from time to time. Although every reasonable effort is made to ensure that reserve estimates reported represent the most accurate assessments possible, the significance of the subjective decisions required and variances in available data for various reservoirs make these estimates generally less precise than other estimates presented in connection with financial statement disclosures. Proved reserves represent estimated quantities of crude oil, condensate, natural gas and natural gas liquids that geological and engineering data demonstrate, with reasonable certainty, to be recoverable in future years from known reservoirs under economic and operating conditions existing at the time the estimates were made. Proved developed reserves are proved reserves expected to be recovered, through wells and equipment in place and under operating methods being utilized at the time the estimates were made. Canadian provincial royalties are determined based on a graduated percentage scale which varies with prices and production volumes. Canadian reserves, as presented on a net basis, assume prices and royalty rates in existence at the time the estimates were made, and the Company's estimate of future production volumes. Future fluctuations in prices, production rates, or changes in political or regulatory environments could cause the Company's share of future production from Canadian reserves to be materially different from that presented. Estimates of proved and proved developed reserves at December 31, 1989, 1990 and 1991 were based on studies performed by the Company's engineering staff for reserves in both the United States and Canada. Opinions by DeGolyer and MacNaughton, independent petroleum consultants, for the years ended December 31, 1989, 1990 and 1991 covering producing areas containing 75%, 72% and 73%, respectively, of proved reserves of the Company on a net-equivalent-cubic-feet-of-gas basis, indicate that the estimates of proved reserves prepared by the Company's engineering staff for the properties reviewed by DeGolyer and MacNaughton, when compared in total on a net-equivalentcubic-feet-of-gas basis, do not differ materially from the estimates prepared by DeGolyer and MacNaughton. Such estimates by DeGolyer and MacNaughton in the aggregate varied by not more than 5% from those prepared by the Company's engineering staff. All reports by DeGolyer and MacNaughton were developed utilizing geological and engineering data provided by the Company· . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Production.............. Proved reserves at December 31, 1991 .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..; .C .- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,574 33,927 223,896 (27,680) (123,319) 1,311,578 (35,851) 73,981 184,225 (25,988) (164,478) 1,343,467 48,371 45,030 199,410 (173,460) 1,455,885 . . . . . . 1,199,180 (6,933) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......... . Liquids (MBbl)(1) Proved reserves at December 31, 1988 Revisions of previous estimates Purchases in place Extensions, discoveries and other additions Sales in place Production Proved reserves at December 31, 1989 Revisions of previous estimates Purchases in place Extensions, discoveries and other additions Sales in place Production Proved reserves at December 31, 1990 Revisions of previous estimates Purchases in place Extensions, discoveries and other additions Sales in place Production Proved reserves at December 31 1991 . . . . . . . . . . . . . . . . . . . . . Proved reserves at December 31, 1990 Revisions of previous estimates Purchases in place Extensions, discoveries and other additions Sales in place . . . . . . . . Extensions, discoveries and other additions Sales in place Production . 23,896 (513) 300 1,091 (4,875) (2,247) 17,652 1,615 1,495 1,238 (3,473) (2,255) 16,272 (86) 173 983 (1,248) (2,272) 13,822 Canada Total 83,573 (747) 289 27,046 1,282,753 4,827 34,216 250,942 (27,680) - (6,145) 104,016 (108) 3,729 30,534 (64) (6,599) 131,508 35 2,885 6,193 (2,477) (9,237) 128,907 6,230 317 53 858 (129,464) 1,415,594 (35,959) 77,710 214,759 (26,052) (171,077) 1,474,975 48,406 47,915 205,603 (9,410) (182,697) 1,584,792 30,126 (196) 353 (4) (943) 6,511 424 115 1,257 1,949 (4,879) (3,190) 24,163 2,039 1,610 2,495 (574) (877) 6,856 256 42 310 (25) (927) 6,512 (4,047) (3,132) 23,128 170 215 1,293 (1,273) (3,199) 20,334 No major discovery or other favorable or adverse event subsequent to December 31, 1991 is believed to have caused a material change in the estimates of proved or proved developed reserves as of that date. F-18 F-19 (Table continued on following page) United States Proved developed reserves at Natural Gas (MMcf) December 31, 1988 December 31, 1989 December 31, 1990 December 31, 1991 Liquids (MBbl)(1) December 31, 1988 December 31, 1989 December 31, 1990 December 31, 1991 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 849,820 942,118 1,023,711 1,138,530 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total 918,674 68,854 91,840 114,045 112,975 20,573 15,743 15,269 13,002 . . . Canada 1,033,958 1,137,756 1,251,505 26,663 6,090 6,459 6,804 22,202 22,073 19,486 6,484 Capitalized Costs Relating to Oil and Gas Producing Activities. The following table sets forth the capitalized costs relating to the Company's natural gas and crude oil producing activities at December 31, 1991 and 1990: 1991 . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . depreciation, depletion and amortization..................... Net capitalized costs . . . . . . . . . . . . . . . . . 1990 $2,162,013 $1,997,176 66,621 2,228,634 68,823 2,065,999 . . . . . . . . . . . . (888,968) . . . . . . . . . Unproved . . . . . . Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,305,136 Canada Other ToW 1991 Acquisition Costs of Properties . . . . . Proved Total. Exploration Costs Development Costs Total............. . . . . . . . . . ........ . . . . . . . . . . . . . . . . . . Total. . . . . . . . . . Exploration Costs Development Costs . Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-20 . . 40,039 52,195 39,916 132,200 $224,311 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223 2,362 2,585 5,369 10,338 $ 176 176 15,062 - $ 12,555 42,401 - 54,956 60,347 142,538 $18,292 $15,238 $257,841 (Table continued on $ 2,099 59,119 106,271 53,633 105,834 788 2,887 9,644 20,152 351 $ 49,602 351 9,842 59,907 109,509 73,119 126,249 $ - 263 $265,738 $32,683 $10,456 $308,877 $ 27,031 $ 3,833 31,016 191 4,024 . . 58,047 . . . . . 34,717 $203,710 $ 250 $ 31,114 250 62,321 50,956 120,277 31,207 - 6,691 9,548 9,331 110,946 .......... - $22,903 $ 6,941 $233,554 Canada Other Total Operating Revenues Associated Companies Trade Total. Exploration Expenses, including Dry Hole Production Costs................. Impairment of Unproved Oil and Gas Properties Depreciation, Depletion and Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $197,841 . . . . . . . . . . . . . . . . . . . . . . . . 78,964 276,805 28,107 Income (Loss) before Income Taxes Income Tax Provision (Benefit) Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,244 $ 19,004 29,248 1,337 455 (12,094) $ 45,882 $ 882 97,968 306,053 46,168 - 14,402 65,585 - 2,449 12,385 33,788 $208,085 - - 3,659 9,418 56,167 10,342 148,401 ........... - 99 (14,501) (4,930) $ (9,571) 12,791 160,885 20,624 (16,569) $ 37,193 1990 Operating Revenues Associated Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... $179,521 $11,293 $ . . Trade Total............... Exploration Expenses, including Dry Hole Production Costs................. Impairment of Unproved Oil and Gas Properties Depreciation, Depletion and Amortization Income (Loss) before Income Taxes Income Tax Provision (Benefit) Results of Operations ....... . $ . . ....... ... $ 12,156 . . 1989 Acquisition Costs of Properties . ........ . . 1991 Foreign ........... . . Foreign - Unproved Proved. . . United States Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Activities. The acquisition, exploration and development costs disclosed in the following tables are in accordance with definitions in SFAS No. 19 "Financial Accounting and Reporting by Oil and Gas Producing Companies"Acquisition costs include costs incurred to purchase, lease, or otherwise acquire property. Exploration costs include exploration expenses, additions to exploration wells in progress, and depreciation of support equipment used in exploration activities. Development costs include additions to production facilities and equipment, additions to development wells in progress and related facilities, and depreciation of support equipment and related facilities used in development activities. The following tables set forth costs incurred related to the Company's oil and gas activities for the years ended December 31: United States . Proved Total. Exploration Costs Development Costs (760,863) $1,339,666 $ 47,152 Total Other Results of Operations for Oil and Gas Producing Activities(1). The following tables set forth results of operations for oil and gas producing activities for the years ended December 31: Accumulated ....... Canada 1990 Acquisition Costs of Properties Unproved (1) Includes crude oil, condensate and natural gas liquids. Proved properties. Unproved properties Foreign United States . 109,538 289,059 33,086 57,520 18,653 145,647 ........... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . following page) F-21 34,153 . $ (8,926) 43,079 18,123 29,416 5,089 7,168 1,918 10,169 5,072 1,724 3,348 $ $190,814 - 127,661 - 318,475 - 9,842 - - 61 (9,903) (3,367) 48,017 64,688 20,571 155,877 29,322 (10,569) $ (6,536) $ 39,891 (Table continued on following page) Foreign United States Other Canada Total 1989 United States Operating Revenues Associated Companies Trade . . . Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exploration Expenses, including Dry Hole Production Costs Impairment of Unproved Oil and Gas Properties Depreciation, Depletion and Amortization Income (Loss) before Income Taxes Income Tax Provision (Benefit) Results of Operations . . . . . . . . . . . . . . . . . . $134,033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,347 26,340 4,763 7,174 1,656 11,847 231,803 22,708 54,034 9,176 122,420 . . $ 7,993 97,770 . . The following table sets forth the standardized measure of discounted future net cash flows from projected production of the Company's crude oil and natural gas reserves at December 31, for the years ended December 31: 23,465 8,276 . $ 15,189 900 306 $ 594 $ $142,026 - - - 6,729 - - 46 (6,775) (2,304) $ (4,471) Future revenues(1). 258,143 34,200 61,208 Future production costs Future development costs Future net cash flows before income taxes Discount to present value at 10% annual rate Present value of future net cash flows before income taxes Future income taxes discounted at 10% annual rate(2) Standardized measure of discounted future net cash flows relating to proved oil and gas reserves(1) 10,832 134,313 17,590 6,278 $ 11,312 (1) Excludes net revenues associated with other marketing activities, interest charges, general corporate expenses and certain gathering and handling fees for each of the three years in the period ended December 31, 1991. The gathering and handlmg fees and other marketing net revenues are directly associated with oil and gas operations with regard to segment reporting as defmed in SFAS No. 14 "Financial Reporting for Segments of a Business Enterprise", but are not part of Disclosures about Oil and Gas Producing Activities as defined in SFAS No. 69· Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves. The following information has been developed utilizing procedures prescribed by SFAS No. 69 and based on crude oil and natural gas reserve and production volumes estimated by the engineering staff of the Company. It may be useful for certain comparison purposes, but should not be solely relied upon in evaluating the Company or its performance. Further, information contained in the following table should not be considered as representative of realistic assessments of future cash flows, nor should the Standardized Measure of Discounted Future Net Cash Flows be viewed as representative of the current value of the Company. - The future cash flows presented below are based on sales prices, cost rates, and statutory income tax rates in existence as of the date of the projections. It is expected that material revisions to some estimates of crude oil and natural gas reserves may occur in the future, development and production of the reserves may occur in periods other than those assumed, and actual prices realized and costs incurred may vary significantly from those used. Management does not rely upon the following information in making investment and operating decisions. Such decisions are based upon a wide range of factors, including estimates of probable as well as proved reserves, and varying price and cost assumptions considered more representative of a range of possible economic conditions that may be anticipated. F-22 1991 116,117 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1990 Future revenues(1). Future production costs Future devel opment costs . . . . . . . . . . . . . . . . . . . . . . . . . . . (504,420) (189,091) 1,807,928 (618,919) 1,189,009 (127,188) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,843,945 (678,352) 1,165,593 (237,009) $ 928,584 1989 Future revenues(1). . . . . . . . . . . . . . Future production costs Future development costs Future net cash flows before income taxes Discount to present value at 10% annual rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Present value of future net cash flows before income taxes Future income taxes discounted at 10% annual rate(2) Standardized measure of discounted future net cash flows relating to proved oil and gas reserves(1) . . . . . . (6,132) 184,372 (62,137) 122,235 (27,979) (583,833) (195,223) 1,992,300 (681,056) 1,311,244 (155,167) $2,550,360 $349,811 $2,900,171 . . (79,413) $1,061,821 $ 94,256 $1,156,077 (525,907) (180,508) Future net cash flows before income taxes Discount to present value at 10% annual rate Present value of future net cash flows before income taxes Future income taxes discounted at 10% annual rate(2) Standardizedmeasure of discounted future net cash flows relating to proved oil and gas reserves(1) Total $2,501,439 $269,917 $2,771,356 . . . Canada . . . . . . (74,236) (7,515) 268,060 (89,827) 178,233 (47,491) (600,143) (188,023) 2,112,005 (768,179) 1,343,826 (284,500) $130,742 $1,059,326 $2,769,Ž96 $271,426 $3,040,722 (612,391) (208,715) 1,948,190 (767,342) 1,180,848 (292,261) $ 888,587 (49,106) (4,338) (661,497) 217,982 2,166,172 (846,230) (78,888) 139,094 (32,428) (213,053) 1,319,942 (324,689) $106,666 $ 995,253 (1) Based on year-end market prices determined at the point of delively from the producing unit. (2) Future income taxes before discount were $279.4 million U.S., $53.0 million Canada and $332.4million total; $455.1million U.S., $80.6 million Canada and $535.7million total; and $559.7million U.S., $61.1 million Canada and $6208 million total for the years ended December 31, 1991, 1990 and 1989, respectively. F-23 Changes in Standardized Measure of Discounted Future Net Cash Flows. The following table sets forth the changes in the standardized measure of discounted future net cash flows at December 31, for each of the three years in the period ended December 31, 1991. United States December 31, 1988 Sales and transfers of oil and gas produced, net of production costs Net changes in prices and production costs Extensions, discoveries, additions and improved recovery net of related costs Development costs incurred Revisions of estimated development costs Revisions of previous quantity estimates Accretion of discount. Net change in income taxes Purchases of reserves in place. Sales of reserves in place Changes in timing and other. December 31, 1989 Sales and transfers of oil and gas produced, net of production costs Net changes in prices and production costs Extensions, discoveries, additions and improved recovery net of related costs Development costs incurred Revisions of estimated development costs Revisions of previous quantity estimates Accretion of discount. Net change in income taxes Purchases of reserves in place. Sales of reserves in place. Changes in timing and other. December 31, 1990 Sales and transfers of oil and gas produced, net of production costs Net changes in prices and production costs. Extensions, discoveries, additions and improved recovery net of related costs Development costs incurred Revisions of estimated development costs Revisions of previous quantity estimates Accretion of discount. Net change in income taxes Purchases of reserves in place. Sales of reserves in place. Changes in timing and other. December 31, 1991.............. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........... F-24 . . . . . . . . . . . . . . . . . . . $ 759,539 (177,769) 93,203 230,925 28,849 1,798 2,185 95,585 (95,953) 23,951 (50,983) (22,743) 888,587 Total $ 84,647 $ 844,186 (19,166) 13,220 (196,935) 106,423 29,354 260,279 28,849 - 256 2,054 1,170 10,740 3,355 (9,672) 555 (58) (4,380) 106,666 106,325 (105,625) 24,506 (51,041) (27,123) 995,253 (231,539) (117,213) (22,248) 7,412 (253,787) (109,801) 179,831 62,194 8,397 38,483 535 218,314 62,729 8,580 (21,481) 118,085 55,252 84,874 (97,910) (493) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Canada 928,584 183 2,484 13,910 (15,063) . . . . . . . . . . . . Income before Income Taxes Income Tax Benefit Net Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2,833 1,178 17,823 19,512 (558) 1,059,326 (240,468) (201,670) 216,899 36,730 4,473 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Earnings Per Share of Common Stock Average Number of Common Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Operating Income (Loss) . . . . . . . . . . Income before Income Taxes Income Tax Provision (Benefit) . Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,792 (2,328) (19,649) (39,784) (8,320) $1,061,821 $ 94,256 $1,156,077 Dec. 31 Sept. 30 $95,894 $ 87,971 $83,956 $119,784 $19,139 $ 12,899 $ 6,050 $ 25,313 $11,182 $ 3,562 $11,265 $ 19,660 (705) (3,690) $11,887 $ 7,252 $ .16 $ 75,900 .10 75,900 . . . . . . . . . . . . . . . . . 1989 Net Operating Revenues Operating Income (Loss) . . . . . . . . . . . . . . . . . . . . . . . . Income (Loss) before Income Taxes Income Tax Provision (Benefit) Net Income (Loss) . . . . . . . . . . . . . . . (2,708) (2,162) $13,427 $ $ .18 $ 75,900 22,368 .29 75,900 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Earnings (Loss) Per Share of Common Stock Average Number of Common Shares . . . . . . . $ 3,058 391 (5,417) $ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 $ 75,900 5,595 .07 75,900 $ 13,270 (6,905) $ 8,475 $ $ .11 $ 75,900 20,175 .27 75,900 $74,568 $ 65,247 $64,443 $ 85,158 . . $78,454 $118,036 $12,300 $ 5,986 $11,223 $ . . 78,585 $21,524 $ 3,406 $ (6,712) $ 23,626 . . . $96,260 $ 1,077 38,713 134,382 129,333 June 30 1990 Net Operating Revenues Average Number of Common Shares (918) . . 88,675 4,802 (31,464) . . (102,906) 212,097 36,719 38,350 . . 3,801 (19,830) (17,321) Operating Income. . (4,996) (425) 130,742 (51,609) 116,559 109,821 1991 Net Operating Revenues Earnings Per Share of Common Stock (220,638) 1,640 Quarter Ended March 31 (18,997) 131,995 40,189 (150,061) 37,535 Unaudited QuarterlyFinancial Information $ 6,247 $ (14,183) $ 1,411 $ 12,824 $ (1,233) $ (6,302) $ (5,113) $ 3,163 (515) $ (718) (2,173) 1,100 $ (4,129) $ (3,317) $ 2,063 $ (.01) $ 64,000 (1,796) (.06) $ (.05) $ 64,000 64,300 .03 73,025 SCHEDULE V ENRON OIL & GAS COMPANY SCHEDULE V PROPERTY, PLANT AND EQUIPMENT For the Years Ended December 31, 1991, 1990 and 1989 - (In Thousands) Column A Column B Classification Balance at Beninnino of Year Column C Additions At Cost Column D Retirements Column E Column F Other Changes Balance at End of Year Add (DeductXa) 1991 Oil and Gas Properties 1990 Oil and Gas Properties . . . . . . . . . . . . . . . . . . . . . $2,065,999 $211,673 $ 38,339 $(10,699) $2,228,634 $1,893,357 $260,860 $ 70,945 $(17,273) $2,065,999 $1,794,494 $199,354 $ 97,063 $ (3,428) $1,893,357 1989 Oil and Gas Properties (a) Includes, among other things, amortized impairments of unproved oil and gas properties and foreign currency translation adjustments. S-1 SCHEDULE VI SCHEDULE ENRON OIL & GAS COMPANY ENRON OIL & GAS COMPANY SCHEDULE VI--ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION OF PROPERTY, PLANT AND EQUIPMENT For the Years Ended December 31, 1991, 1990 and 1989 (In 'Ì'housands) SCHEDULE VIII VALUATION AND QUALIFYING ACCOUNTS AND RESERVES For the Years Ended December 31, 1991, 1990 and 1989 (In Thousands) - Column A Column A Column B inat n of Year Classification Column C Column D Column E Additi ons dand C Expenses C es Add (Deduct) of Year $ (1,978) $888,968 1991 Oil and Gas Properties . . . . . . . . . . . . $760,863 $160,885 $ 30,802 . . . . . . . . . . . . . . . . . . . . . . . . Column C Column D Column E Balance at Beginning of Year Additions Charged to Costs and Expenses Deductions For Purpose For Which Reserves Were Created Balance at End of Year 199) Reserves deducted from assets to which they apply - of Accounts Receivable . . . $643,700 $155,877 $ 36,204 $ (2,510) $760,863 Litigation Reserve(a) $571,726 $134,313 $ 65,939 $ 3,600 $643,700 Reserves deducted from assets to which they apply Revaluation of Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . $ $ 1,400 $ 2,600 $ 1,200 $ $ $ $ $ 4,796 1,740 $ 1,518 $ 1,082 $ 600 $ $ 1,200 $ 576 $ 204 $ 1,525 $ 4,796 $ $ $ $ 120 $ 162 $ 8,025 $ 4,772 $ 204 $ 1,725 5,656 1990 1989 Oil and Gas Properties Description Revaluation Im Oil and Gas Properties Column B Column F BalEancdeat Retirements VIII - . Revaluation of Inventories Litigation Reserve(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,772 204 1,725 - - 1,400 1989 Reserves deducted from assets to which they apply - Revaluation of Accounts Receivable Revaluation of Inventories Litigation Reserve(a) . . . . . . Property Sale Loss Reserve(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,692 $ 366 $ 8,000 $15,000 200 - $ 1,750 - (a) Included in Other Liabilities on the consolidated balance sheets. S-2 $15,000 - SCHEDULE X ENRON OIL & GAS COMPM EXHIBITS Exhibits not incorporated herein by reference to a prior filing are designated by an asterisk (*) and are filed herewith; all exhibits not so designated are incorporated herein by reference to the Company's Form S-1 Registration Statement, Registration No. 33-30678, filed on August 24, 1989 ("Form S-1"), or as otherwise indicated. INCOME STATEMENT INFORMATION SUPPLEMENTAL SCHEDULE X For the Years Ended December 31, 1991, 1990 and 1989 (In Thousands) - 3.1 Column A . . . . . . . . . . . . . . . Taxes, other than payroll and income taxes Property Production/Severance Windfall Profits Franchise Other . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2 1990 3.3 1991 Item Maintenance and repairs Column B Charged to Costs and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ . . . . . . . . . . . . . . . . . . . . 7,107 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,429 $ 4,159 $ 6,401 $ 6,866 $ 6,994 9,262 14,016 14,496 (175) - - . $ 1989 575 124 $16,362 4.1* 4.2 297 95 871 (20) 10.1 $21,274 $22,166 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 S-4 -Restated Certificate of Incorporation of Enron Oil & Gas Company (Exhibit 3.1 to Form S-1). -Bylaws of Enron Oil & Gas Company (Exhibit 3.2 to the Company's Annual Report on Form 10-K for the year ended December 31, 1990). -Specimen of Certificate evidencing the Common Stock (Exhibit 3.3 to Form S-1). -Promissory Note due May 1, 1996, dated May 1, 1991. -There have not been filed as exhibits to this Form 10-K debt instruments defining the rights of holders of long-term debt of the Company, none of which relates to authorized indebtedness that exceeds 10% of the consolidated assets of the Company and its subsidiaries. The Company hereby agrees to furnish a copy of any such mstrument to the Commission upon request. -Services Agreement, dated as of January 1, 1989, between Enron Oil & Gas Company and Enron Corp. (Exhibit 10.1 to Form S-1). -Stock Restriction and Registration Agreement dated as of August 23, 1989 (Exhibit 10.2 to Form S-1). -Tax Allocation Agreement dated as of August 23, 1989 (Exhibit 10.3 to Form S-1). -Enron Corp. Deferral Plan dated December 10, 1985 (Exhibit 10.12 to Form S-1). -Enron Corp. 1988 Stock Plan (Exhibit 10.13 to Form S-1). -Enron Oil & Gas Company Key Contributor Incentive Plan (Exhibit 10.6 to the Company's Annual Report on Form 10-K for the year ended December 31, 1990). -Enron Corp. 1984 Stock Option Plan (Exhibit 10.15 to Form S-1). -Enron Corp. 1986 Stock Option Plan (Exhibit 10.16 to Form S-1). -Enron Corp. Restricted Stock Plan dated April 10, 1986 (Exhibit 10.17 to Form S-1). -Employment Agreement between Enron Oil & Gas Company and Forrest Hoglund, dated as of September 1, 1987, as amended (Exhibit 10.19 to Form S-1). -Enron Oil & Gas Company Executive Compensation Plan (Exhibit 10.20 to Form S-1). -Fuel Supply Contract, dated as of June 30, 1986, as amended, by and between Enron Oil & Gas Company, HNG Oil Company, BelNorth Petroleum Corporation and Enron Cogenration One Company, as amended (Exhibit 10.23 to Form S-1). -Gas Sales Contract dated September 2, 1987 between Enron Oil & Gas Company and Cogenron Inc., as amended (Exhibit 10.24 to Form S-1). -Letter Agreement dated August 20, 1987 between Enron Oil & Gas Company and Panhandle Gas Company (Exhibit 10.25 to Form S-1). -Pension Program for Enron Corp. Deferral Plan Participants, effective January 1, 1985, as amended (Exhibit 10.29 to Form S-1). -Credit Agreement, dated as of December 4, 1990, among Enron Oil & Gas Company, the Banks named therein and CitiBank, N.A., as Agent (Exhibit 10.16 to the Company's Annual Report on Form 10-K for the year ended December 31, 1990). 10.17* 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 10.34 10.35 10.36 10.37 10.38* -Interest Rate and Currency Exchange Agreement, dated as of June 1, 1991, between Enron Risk Management Services Corp. and Enron Oil & Gas Marketing, Inc. -Letter Agreement between Colorado Interstate Gas Company and Enron Oil & Gas Marketing, Inc. dated November 1, 1990 (Exhibit 10.18 to the Company's Annual Report on Form 10-K for the year ended December 31, 1990). -Gathering Agreement be'tween Enron Oil & Gas Company and Northwest Pipeline Corporation dated March 30, 1989, as amended (Exhibit 10.36 to Form S-1) -Processing Agreement between Enron Oil & Gas Company and Northwest Pipeline Corporation dated March 30, 1989 (Exhibit 10.37 to Form S-1). -Gas Sales Agreement between Enron Gas Marketing, Inc. and Enron Oil & Gas Marketing, Inc. dated August 22, 1989 (Exhibit 10.38 to Form S-1). -Gas Purchase Agreement between Enron Gas Marketing, Inc. and Enron Oil & Gas Marketing, Inc. dated August 22, 1989 (Exhibit 10.39 to Form S-1). -Gas Purchase Agreement between Enron Gas Marketing, Inc. and Enron Oil & Gas Marketing, Inc. dated August 22, 1989 (Exhibit 10.40 to Form S-1). -Gas Purchase Agreement between Enron Oil & Gas Company and Enron Oil & Gas Marketing, Inc. dated August 22, 1989 (Exhibit 10.41 to Form S-1). -Gas Purchase Agreement between Enron Oil & Gas Company and Enron Oil & Gas Marketing, Inc. dated August 22, 1989 (Exhibit 10.42 to Form S-1). -Seasonal Gas Purchase Contract dated July 21, 1989 between Enron Oil & Gas Marketing, Inc. and Northern Natural Gas Company (Exhibit 10.43 to Form S-1). -Enron Corp. 1988 Deferral Plan (Exhibit 10.49 to Form S-1). -Form of Enron Corp. Long-Term Incentive Plan Effective as of January 1, 1987 (Exhibit 10.50 to Form S-1). -Enron Executive Supplemental Survivor Benefits Plan Effective January 1, 1987 (Exhibit 10.51 to Form S-1). FlexPerq Program Summary (Exhibit 10.52 to Form S-1). -Enron Corp. 1988 Key Employee Annual Incentive Plan (Exhibit 10.55 to Form S-1). -Enron Corp. 1988 Executive Annual Incentive Plan (Exhibit 10.56 to Form S-1). -Gas Purchase Agreement between Enron Oil & Gas Company and Enron Gas Marketing, Inc. dated October 30, 1990 (Exhibit 10.33 to the Company's Annual Report on Form 10-K for the year ended December 31, 1990). -Credit Agreement between Enron Corp. and Enron Oil & Gas Company dated October 12, 1989 (Exhibit 10.34 to the Company's Annual Report on Form 10-K for the year ended December 31, 1990). -Credit Agreement between Enron Oil & Gas Company and Enron Corp. dated October 12, 1989 (Exhibit 10.35 to the Company's Annual Report on Form 10-K for the year ended December 31, 1990). -First Amendment to Gas Sales Agreement between Enron Gas Marketing, Inc. and Enron Oil & Gas Company, dated as of November 1, 1990 (Exhibit 10.36 to the Company's Annual Report on Form 10-K for the year ended December 31, 1990). -Swap Agreement between Banque Paribas and Enron Oil & Gas Company, dated as of December 5, 1990 (Exhibit 10.37 to the Company's Annual Report on Form 10-K for the year ended December 31, 1990). -Interest Rate and Currency Exchange Agreement dated as of March 25, 1991, between Enron Oil & Gas Marketing, Inc. and Enron Finance Corp. -1988 E-2 10.39* 10.40* 10.41* 22* 24.1* 24.2* 25* Gas Purchase Contract between Enron Gas Marketing, Inc. and Enron Oil & Gas Marketing, Inc. dated March 25, 1991, as amended. -Enron Oil & Gas Company 1992 Stock Plan. -Enron Corp. 1992 Deferral Plan. -List of subsidiaries. -Consent of DeGolyer and MacNaughton. -Opinion of DeGolyer and MacNaughton dated January 23, 1992. -Powers of Attorney. -Warranty SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 20th day of March, 1992. ENRON OIL & GAS COMPANY (Registrant) By /s/ WALTER C. WILSON (Walter C. Wilson) Senior Vice President and Chief Financial Oilicer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of registrant and in the capacities with Enron Oil & Gas Company indicated and on the 20th day of March, 1992. Signature /s/ Ti e Chairman of the Board, President and Chief Executive Officer and Director (Principal Executive Officer) FORREST E. HOGLUND (Forrest E. Hoglund) (s/ WALTER C. WILSON Senior Vice President and Chief Financial Officer (Principal Financial Officer) (walterC. wilson) /s/ BEN B. BOYD Vice President and Controller (Principal Accounting Officer) (Ben B. Boyd) FRED C. ACKMAN * Director * Director * Director * Director (Fred C. Ackman) RICHARD D. KINDER (Richard D. Kinder) KENNETH L. LAY (Kenneth L. Lay) EDWARD RANDALL, III (Edward Randall, III) * s| PEGGY B. MENCHACA (Peggy B. Menchaca) (Attorney-in-fact for persons indicated) UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT aio-s Font (Decembe1r 1989) FORM MPROVED Budget Bureau No. 1004-0135 ExpimSeptember30,1990 5. Lease Designation SUNDRY NOTICE AND REPORTS ON WELLS Do not use this form for proposals to drill or to deepen or reentry Use "APPLICATION U 0144869 to a different reservoir. for such proposals SUBMIT IN TRIPLICATE FOR PERMIT and Serial No. 6. If Indian, Allottee or Tribe Name 7. If Unit or C.A., Agreement --" Designation 1. Type of Well oil Gas Well Well NATURAL BUTTES UNIT 8. Well Name and No. Other NATURAL BUTTES UNIT20-EtB 2. Name of Operator OIL & GAS COMPANY ENRON 9. API Well No. No. 3. Address and Telephone Sec., T., R., M., or Survey 4. Location of Well (Footage, 43-047-30359 (307) 276-3331 P.O. BOX 250, BIG PINEY, WY 83113 10. Field and Pool or Exploratory Area Description) NATURAL 1037 FNL SECTION 1033' FEL 20, TPS, R20E - 12. CHECK APPROPRIATE (NFJNE) U1NTAli BOX(s) TO INDICATE TYPE REPORT ABANDONMENT NEW CONSTRUCTION PLUGGING NON-ROUTINE ALTERING NOTICE X CHANGE OF PLANS RECOMPLETION CASING FINAL OF ACTION ARANDONMENT OF INTENT SUBSEQUENT WYUMANG NATURE OF NOTICE, REPORT, OR OTHER DATA TYPE OF SUBMISSION NOTICE BUTTES/WASA'ICH 11. County or Parrish, State ORIER BACK REPAIR WATER CONVERSION CASING TEST FOR WATER FRACTURING SHUT--OFF TO INJECTION DISPOSAL POTENTIAL (Note: Report sesmits of mabipic mmpletion on Wei Compictions Report and IAS Porm.) or Recompiction date of starting any proposed work if well (Clearly state aB pertiment details and give pertinent dates, incinding estimated 13. Describe Proposed or Compicted Operations is directiomaRy driMed give subsurfam loations and measured and true vertical depths for aD markers and somes pertiment to this work). in the subject well Enron Oil & Gas Company proposes to set a CIBP above existing Wasatch perforations for the purpose of testing the Green River "H" sand for water disposal potential. The "H" sand will be perforated from 3802-25' w/2 SPF and the formation water analyzed for total dissolved solids. A step rate test will then be obtained to determine formation injectivity data. If the sand appears to be an acceptable candidate for disposal, Enron will then proceed with the necessary permitting to allow final conversion of the well to disposal status. by the State of Utah Division of Oil, Gas and Mining Accepted JAN2 7 1992 Date: OIL GAS&MIN!NG 14. I hereby certify that t foregoing is true a d correct TITLE SIGNED (Thb space for Federalor Tkle Unked OF APPROVAL, TFILE IF ANY: Federal roval of this Action is Necessary 1001, makes k a crime for any person knowingly and willfally to make to any department or agency of the or representations as to any matter withis as false, fictitious or frauduloat statements 18 U.S.C. Section States any Analyst DATE State office use) APPROVED BY CONDIT1ONS Regulatory DATE 1-23-92 ENRON Oil & Gas Company P.O. Box 250 (307) 276-3331 Big Piney, Wyoming 83113 1992 23, January Mr. Ed Forsman Management Of Land Bureau District Vernal East 500 170 South 84078 Utah Vernal, RE: Dear Gas Mr. NATURAL BUTTES UNIT 21-20B U 0144869 LEASE: R20E T9S, 20, NENE, SEC. UINTAH COUNTY, UTAH Forsman: Please Company's attached to proposal find a Sundry test the Notice subject Enron describing well Oil & disposal water for potential. If please any questions you have office. this contact or need Very additional information, truly ENRO Da rell Di trict yours, & GAS C MP OIL om . M Y a r kc cc: Board Utah D. Weaver T. Miller al of Oil, Gas and Mining Office 'JAN2 7 1992 DMSION OF OIL GAS& MINeX Part of the Enron Group of Energy FormOCC-10 1\ THIPlKATF' SIW T OF UTAH DEPARTMENT NATURAL G RESOURCES DPs'ISIDA OF O:L. GAS ANE: MININ © ""' """ U 0144869 'Dt SUNDPY NOTICES AND REPORTS ON WELLS euse thu Do' fore i i si i¯¯WNI Or deepts e fe p ur bacr to ed ereL: averass If Î. L MIT AGRELME El AL INEWN. OL Talbl NAWE restrecu cmposta su:L NAME NATURAL BUTTES UNIT Ä FARM 08 LEtai NAMI OFEkiTOR & GAS COMP or orsuro. P. 4 t' FI.E over, ENRON OIL s dri Tr t, UT:.pen.a ATIUCATION LV 6 BOX 1815 O. LocaTich or RELL (Iteport Bee als: space 17 below.) surface ar,d fra accordatee clear;I locatíoL VERNAL, with any State 21-20B UT 84078 requirements• 1 11 1037' IELL AND FNL & 1033' FEL NE/NE SEC.. T., svarar R., M., OK WILDCAT NC. 16. ELƾATIONS 43 047 30359 (ShoW Wh&tht? 4785' DF, RT, Ok OR BLE. T9S, etc.) R20E 18. OK ÄRISE KB AN& on ama, SEC 20, PEaur: POOL, NBU WASATCH At UINTAH TATE UTAH CheckAppropnote BoxTo Indicate Nature of Notice, Report, or Other Date NOTICE TEST OF INTENTION EBUT-OTT WATER TO: PULL SUBBBQUENT OR ALTER FRACTLEE TREAT MULTIFLE BHOOT 08 ACil*IEE ABANDON' EEPAIR WELL CHANGE CASING BBOUTING OR state 80 pertinent (Clearly details give drilled. subsurface locanons and SI 18. I hereby - certify BEING MADE INTO A SALT WATER DISPOSAL t t the foregoing TITLE or State APPROVED BY CONDITIONS OF APPROVAL, ABANDONMENT* ANNUAL STATUS REPORT Report or pertinent and true lX results of multiple completion on Well Report and Log form ) dates. tneluding estimated date of starting any depths vertîcal for all markers and zones pertl- Recompletion WELL, APPLICATION WILL BE SUBMITTED PRODUCTION ANALYST vars ofBee use) TITLE IF ANY WELL CAalNO e and correct is BIGNED space for Federal and give measured ALTERING ACIDIZING tNOTE: ruarnsEn nu voMPLETro oPERATioNs proposed work If well is directionally nent to this work) * (This TREATMENT Colupletion DEacaint BETAIRING FRACTURE (Ôther) PLANS (Other) 17. SHUT-OFT WATEE COMPLETE REPORT 07: : *S.. Instructionson Revers. DATE 2-3-92 ENRON - Oil & Gas Company P.O. Box 250 Big Piney, Wyoming April P.E. Jr., Protection Stolz, Gustav Environmental U.S. Place Denver Street, 999 18th Colorado Denver, Mr. 83113 276-33 (307) 1992 10, APR1 3 Agency 0;"y;g OILGAS.1 500 Suite 80202-2405 RE: 2 UNDERGROUND CONTROL INJECTION PERMIT APPLICATION NATURAL BUTTES UNIT SEC. 20, T9S, NE/NE, UTAE UINTAH, 21-20B R20E 'Ä0]S~9 Dear Mr. Stolz: the enclosed, find Please and associated Application 21-20B Unit Buttes Natural Notice to the Bureau Sundry conversion for authorization attached. If Schaefer is required, Very truly please contact office. ENRON OIL yours, & GAS COMPANY Parsons C.C. Manager District kc Attachments cc: Control , Division of Utah State D. Weaver 2043 Tigner J. Office Vernal File - Permit of the conversion attachments for of disposal. A copy to water well requesting of Land Management disposal is to water of the well information additional of this Injection Underground of Oil, Gy, - Part of the Enron Group of Energy & Mining \ Jim the ENRON Oil & Gas Company P.O. Box 250 (307) 276-3331 Big Piney, Wyoming 83113 1992 10, April Ed Forsman Management Of Land Bureau District Vernal 500 East 170 South 84078 Utah Vernal, Mr. PERMIT WATER DISPOSAL NATURAL BUTTES UNIT 21-20B R20E T9S, 20, SECTION UINTAH COUNTY, UTAE RE: Dear Forsman: Mr. requesting 1992, 23, on January submitted Notice disposal water for well of the subject testing for authorization on February office your by approved was subsequently potential, be a the well will that indicated tests Injection 1992. 27th, Enron therefore produced water, of disposal for candidate suitable Injection Underground necessary the submitted has & Gas Company Oil Protection to the Environmental forms Application Permit Control to submitted been also has A copy and approval. review for Agency Mining. and Gas, of Oil, Division of Utah, the State A Sundry Please Management shut-in gas authorization well to water of the Underground submitted been If please Injection to the Notice a Sundry attached find for conversion well. disposal Permit Control Bureau requesting well subject attached find Also of the Application which EPA. any questions you have of Schaefer Jim contact require or this Very E additional office. truly ON yours L & GA Parsons C.C. Manager District JRS/kc cc: of Land from a copy D. Weaver T. Miller Office Vernal Tignar-2043 J. File Part of the Enron Group of Energy COMPANY information, has UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT ORM 316o-s ommor1989) 3DRM Empiresseptember30,1990 Lease Designation 6. If Indian, Use "APPLICATION FOR PERMIT --" 7. If Unit or C.A., Agreement 1. Type of Well \X4| Designation NATURAL BUTTES UNIT Gas Well Allottee or Tribe Name for such proposals SUBMIT IN TRIPLICA7E oil No. U 0144869 to a different reservoir. to drill or to deepen or reentry and Serial 5. SUNDRY NOTICE AND REPORTS ON WELLS Do not use this form for proposals APPROVED BudgetBureauNo.1004-0135 8. Well Name and No. Other Well NATURAL BUTTES UNIT 21-20B 2. Name of Operator ENRON OIL & GAS COMPANY 3. Address 9. API Well No. No. and Telephone P.O. BOX 250, BIG PINEY, WY 83113 4. Location of Well (Footage, 43-047-30959 (307) 276 3331 - 10. Pield and Pool or Exploratory Area NATURAL BUTrBS/WASATCH Soc., T., R., M., or Survey Description) 11. County or Parri.h, 1033' FEL (NFJNE) 1037 FNL SECTION 20, 79S, R20E state - 12. CHECK APPROPRIATE BOX(s) TO INDICATE TYPE OF SUBMISSION UINTAE1, NATURE OF NOTICE, REPORT, OR OllIER TYPE OP ACTION CHANGE OP PLANS ABANDONMENT NOTICE OF INTENT NEW CONSTRUCITON RECOMPLETION SUBSEQUENT PLUGGING REPORT NON-ROUTINB BACK ALTERING CASING NOTICE FRACTURING WATER SHUT-OPP CASING REPAIR FMAL ABANDONMENT UTAH DATA X CONVERSION TO INJECITON OTHER (Nete: Report sesmismof mmhipio on-pladam om Wei Campisaiems er Remmpission Report and Ing Porm.) inciading endmated data of starting any propamed work if weH perdnent dates, give details and (C3early state as pertiment Operadoms 13. Describe Froposed or Co-pisted anmes partiment to this werk). and markus tomtiam and measmed and true wrdcal depths for ai is directionany driBed give subsurfam shut-in gas well to water convert the subject well from Enron Oil & Gas Company proposes to for your attached Control Permit Application is disposal well. The Underground Injection information and review. (Elis space for Federal or State offke ase) TITLE APPROVED BY CONDITIONS Title 18 U.S.C. OF APPROVAL, IF ANY: knowingly aad willfully to make to say departamat or agency of Secties 1001. makes it a crims for any persom DATE ENRON Oil & Gas Company P.O. Box 250 (307) 276-3331 Big Piney, Wyoming 83113 3, April Lease well Operators/owner per Exhibit within one radius mile (1) 1992 of the subject I. FOR PERMIT APPLICATION WATER DISPOSAL NATURAL BUTTES UNIT 21-20B R20E SECTION 20, T9S, UTAH UINTAH COUNTY, RE: Gentlemen: intent to Oil & Gas Company's of Enron Enron well. subject the in disposal for and River from Green water produced associated to inject an South and 10 9, Townships 8, in and gas wells oil "H" sand at a River into the Green and 22 East 21, 20, 19, maximum Anticipated well. subject in the of 3802'-3825' injection maximum a with psig be 1400 will pressure of 1200 BWPD. Notice apply proposes Wasatch Ranges depth injection volume Because the application permit Environmental application 500, given hereby water for a permit is Denver, comment announced subject will the surface, the through this for on Tribal processed EPA contact is located well and be reviewed Agency. Protection Stolz, is Mr. Gustav 80202-2405 Colorado application on the permit EPA preparation following The P.E., JR., (303-293-1416). will of 999 Street, 18th Opportunity by the be provided permit. a draft Sincerely, ENRON O Parsons C.C. Manager District JRS/kc cc: File Part of the Enron Group of Energy WANY Suite for EPA and ENRON Oil & Gas Company Walter C. "Dub" r o. Box iiss Houston, Texas 77251-1188 (713) 853-5012 Wilson Senior Vice President and Chief Financial Officer March 25, 1992 Regional Administrator ENVIRONMENTAL PROTECTION AGENCY, REGION VIII 999 18th Street, Suite 500 Denver, CO 80202-2405 Gentlemen: of financial responsibility. We are electing the financial statement demonstration Accordingly, we are enclosing the required "Chief Financial Officer's Letter" and a copy of the Enron Oil & Gas Company 1991 Annual Report on Form 10-K which was filed with the Securities and Exchange Commission on March 23, 1992. Sincerely, BBB/ps Enclosures (2) 34860 Part of the Enron Group of Energy Companies F I N A NC I EF CH I A L 0 FF ' S I CER LETTER U.S. Environmental Protection Agency Underground Injection Control Class II Injection Well Operators This contains information responsibility for the Environmental control requirements. submitted letter Submitted to: Regional Administrator Environmental Protection Suite 999 18th Street, Denver Submitted for: evidence as of Agency's underground Protection VIII Agency Region 500 Cn 80?n?-7405 (Address of EPA Regional financial injection Office) Enron Oil & Gas Company (Legal name of owner or operating company) 1400 Smith Street Houston, Texas 77002 (Business address of owner or operator) Corporation (Individual, Type of organization: joint venture, partnership, or corporation) June 12, 1985 Date of incorporation: State of incorporation: Submitted by: Walter Delaware C. Wilson (Name of Chief . Financial Officer) Enron Oil & Gas Company (Name of firm) 1400 Smith Street Houston, Texas 77002 (Business address) information that the financial on the following certify contained I hereby year-end and derived from this firm's financial statements pages is correct prepared for the latest completed in the normal course of business fiscal year 1991 December 31, ended , (Signature'of Financial Officer) (Date) I. (Firm name) is the owner within states State II. This Enron Oil-& Gas Company or operator of Class II injection VIII : EPA Region names: firm Subsidiary the plugging by the following IV. This firm Securities and abandonment subsidiaries: name: N/A III. the in following Wyoming guarantees owned or operated wells Subsidiary of wells injection address: - ( ) not is ( ) required and Exchange Commission required to file a Form 10-K with year. fiscal (SEC) for the latest the The December 31 year of this finn ends on (month/day) The fiscal from this contained in this letter is derived information financial year-end of course statements financial prepared in the normal firm's ended year latest completed fiscal the for business December 31, 1991 (date) • . The name and address of the accounting firm these examining financial statements: Andersen & Co. firm) (Name of accounting Arthur 711 Louisiana, (Address of Suite 1300, accounting Houston, firm) TX 77002 V. The dollar amounts are below stated in of dollars. Financíal Balance Sheet ( ) actual (4) thousands Information Information: 1. Current 2. Total 3. Current 4. Total 5. Net Worth or Stockholders' Assets 109,706 Assets 1,455,608 Liabilities 113,311 805,405 Liabilities Income Statement 6. Depreciation, 7. Net Income Equity 650,203 Information: Depletion, and Amortization 160,885 54,934 Calculations: 8. 9. Total Liabilities (Item 4 - Depreciation, Item less Liabilities 692,094 3) Depletion' and Amortization plus (Item 6 + Item 7) 10. Current Net Income Current Assets less Current Liabilities (Item 1 Item 3; indicate negative numbers with parentheses) 215,819 (3,605) - 11. Current Liabilities divided (Item 3 + Item 5; round to two decimal places) 12. Total Liabilities less Current all divided by Liabilities, Net Worth (Item 8 + Item 5; places) round to two decimal 13. Depreciation, and Depletion, Amortization plus Net Income, all divided by Total Liabilities (Item 9 + Item 4; round to three decimal places) by Net Worth .17 1.06 .268 Liabilities, less Current Current Assets Assets by.Total all divided (Item 10 + Item 2; round to two decimal places, negative numbers with parentheses) indicate 14. VI. in Part on the information ratio requirements, the financial V, Based ( qqqs) the company meets or does as indicated. Yes 1. + Net Worth less Liabilities V-11 than 1.0) less than 1.0 (Item Current 2. less + Net Worth Long-Term Liabilities V-12 than 2.0) less than 2.0 (Item 3. than zero. Net Income greater than 0) V-7 greater 4. Net Income 5. No )L X (Item X depletion depreciation, total + total than 0.10 (Item greater liabilities 0.10) than Ereater V-13 is and amortization Working than VII. + not meet -0.10 Capital (Item + Total This firm ( ) has or Moody's. Poor's greater Assets 14 greater than -0.10) (-) has not received The current bond rating of this recent issuance The name of the rating The date of issuance The date of expiration of most firm _g a rating by either Standard RRR/Raa? (Preliminary) S & P/Moodv's service of bond X rating of bond rating 1991 N/A Not Available VIII. by bond rating firm's AAA, is and Poor's Standard AA, A, or BBB This bond rating by This firm's Moody's is Aaa, Aa, A, or . and EXHIBIT XII forrnApr i PROTECTION ArNCi UNITED STATES ENV1RONMENTAL WASHINGTON, DC 20460 oE PA PLUGGING AND ABANDONMENT NAME AND ADORESt NAME AND ADDRESS OF FACILITY NATURAL BUTTES UNIT 21-20B SECTION 2'), T9S, R20E NE/NE, UINTAH COUNTY, WYOMING OF OWNER ossso ¿040-0042 Aoprovatexorress-Jo-se PLAN OPERATOR ENRON OIL & GAS COMPANY P.O. BOX 250 BIG PINEY, NYOMING 83113 PERMIT NUMBEA COUNTY STATE LOCATE WELL AND OUTLINEUNIT ON 640 ACAES PLAT SECTION UINTAH UTAH - SURFACE LOCATION DESCRIPTION NE ¼ OF NE ¼ OF RANGE gQg TOWNSHIP 9S NE ¼ SECTION 20 DRILLINGUNIT LOCATE WELL IN TWO DIRECTIONS FROM NEAAEST LINES OF QUARTER SECTION AND N Surface ft. from Location anNft Line of quarter - NATURAL BUTTES UNIT Name Lease SIZE 9-5/8 4-1/2 ' ' 1% ' CEMENTING TO PLUG AND ABANDON The Two-Plug Method 7-7/8" SOther PLUG #3 PLUG #2 PLUG #1 OATA: 4-1/2" 3 IQÛ ? Û 30 ] QQ 7• 5 i Î $ 4-1/2" SizeofHoleorPipelnwhichPlugWiliBePlaced(inches) Cepth to Bottom of Tubing or Drill Pipe (ft.) 17-1 /A" 7025' 11.6# The Balance Method The Dump Bailer Method HOLE SIZE TOBE PUT IN WELL(FT) TO BE LEFT IN WELL (FT) 36.0# Omt . Yetain€l) Sacks of Cement To se Used teach plug) Siurry volume To Be Pumped (cu. ftd NBU 21-20B Weil Number METHOD OF EMPLACEMENT OF CEMENT PLUGS CASING AND TUBINGRECORD AFTER PLUGGING WT(LB/FT) WELL ACTIVITY O CLASS I Ð CLASS II 10 Brine Disposal O Enhanced Recovery O Hydrocarbon Storage O CLASS III _.À.. Number of Wells S section Line of quarter section from (E¾ AUTHORIZATION TYPE OF £3tindividual Permit O Area Permit O Rui E W (N/Ë- i CEMENT RETAINER PLUG #4 9-5/R"'Pprforro,l PLUG #5 (à 7An' PLUG #6 /,- (g Calculated Top of Plug (ft.) 2 Measured Top of Plug (if tagged ft] i Slurry Wt. (Lb./Gald , 6 ) 6 O 01aSS O ClaSS Typ Cement or Other Matenal (Class III) WHERE CASING WILL BE VARIED(Hany) INTERVALS INTERVALSAND PERFORATED LIST ALL OPEN HOLE AND/OR From To From 3802' 6092' 6311' 6128' To 3825' 6592' 6594' 6094' 6007' 6900' 6113' 6130' 6914' 6916' Estimated Cost to Plug Wells CERTIFICATION examined and am familiar with the information / certify under the penalty of law that I have personal/y of those individuals submitted in this document and all attachments and that, based on my inquiry information is true, accurate, immediately responsible for obtaining the information, / believe that the information, including and comp/ete. l am aware that there are significant penalties for submitting false the possibility of fine and imprisonment. (Ref. 40 CFR 144.32) NAME AND OFFIC1ALTITLE(Please type or print) SIGNATURE DATE PLUG #7 /2" CSE- Form Approved Form UNITEDSTATES ENVIRONMENTAL PROTECTION AGENCY UNDERGROUND oE PA 4 PERMIT INJECTION CONTROL day Permit/Well year Number Comments 111.OWNER/OPERATOR AND ADDRESS Owner/Operator NA¶IRAJ, BUTTES UNIT 21-208 Street Address NENE, SECTION City T9S, R20E P.O. State ZIP Code O 8. Stat. U E. Other (Exp/sin) Ute Date Started ,, ,,, trust ,,, U 8. State BIG PINEY O c. r,¡,,,, BL 1 in BOY 250 City UT O A. Name ENRON OIL & GAS COMPANY Street Address 20, ZIP Code I NY R3113 1311 for Indian Tribe Modification/Conversion C. Proposed Operating 6 A. Individual 8. Area Number of Existing wells Number of Prowells A. Class(es) (enter code/s)) CLASS 8. Type(s} (enter code(s)) II Name(s) of field(s) or project(s) posed 1 C. If class is "other" NATURAL BUTTES UNIT 21-20B/NATURAL or type is code x,' explain D. Number of wells per type BUTTES area permit) (if D IX. LOCATION OF WELUS) OR APPAOX1MATE CENTER OF FIELD OR PROJECT A. Latitude B. Longitude Townshio and Range Dog Min Sec Dag Min Sec Twsp Sange See A Sec Feet from X. INDIAN LANDS /Mark d 49 20E I 20 NE 1037 Line N Feet from i 1033 Line Ë Yes x ) Ü No E (Complete the following questions on a separate sheet(s) and number accordingly; see instructions) FOR CLASSES I, ll, III(and other classes) complete and submit on separate sheet(s) Attachments A appropriate. Attach maps where required. List attachments by letter which are applicable and are your application: - U (pp 2-6) as included with / certify under the penalty of law that I have personally examined and am familiar with the information submitted in this document and all attachrnents and that, based on my inquiry of those individuals immediately responsible for obtaining the information, I believe that the information is true, accurate, and complete. I am aware that there are significant submitting false information, including the possibility of fine and imprisonment. penalties for (Ref. 40 CFR 144.32) C. Signature . PA Form 7Š20-6 c 1 Date Received mo Facility Name O o. ruelic VA APPUCATION 11. FACILITYNAME AND ADDRESS O A. Federal Exoires 9-30-8€ (Collected under the authority of the Safe Drinking U Water Act. Sections 1421. 1422. 40 CFR 144) READ ATTACHED INSTRUCTIONSBEFORE STARTING FOR OFFICIAL USE ONLY UIC Application approved mo day year OMB No 2040-0042. I. EPA 10 NUMBER D. Date Signed (2-84) Page 1 of ATTACHMENTS TO FORM 4 (UIC PERMIT APPLICATION) NATURAL BUTTES UNIT 21-20B R20E T9S, 20, SECTION NE/NE UINTAH COUNTY, UTAH Attachment A: Attachment B: Attachment C: is well injection for the proposed Surface radius of one (1) mile. by the Bureau is controlled within the area of review Tribe. for the Ute Indian in trust of Land Management b), (Part Rule 40 CFR 147.1355 with In accordance lease of a list I and IA are attached as Exhibits of the within a one (1) mile radius operators/owners verifying affidavit well and an injection proposed and Gas Oil of Enron each has been notified that permit. injection for an to apply intent Company's an are and IIB IIA, II, as Exhibits Attached map topographic of review, map of the area ownership facility and a disposal of review, of the area of review The area on a fixed based diagram. Attached pertinent area of Attachment E: Within as Exhibit III is Data a Well located on wells information review. the area of review Sheet within proposed is 800' of USDW's attached to refer of the listing the injection in the the maximum depth Exhibit Please formation. Uintah Water Ground Saline Generalized Map of Moderately IV, Utah. Uintah Basin, In The Southern well disposal in the proposed interval The injection of The top sand. formation "H" River is in the Green subject the in 3798'KB of the "H" sand is at a depth V (Mud Exhibit See attached thick. well and is 30' test was rate step A VI (Densilog). and Exhibit Log) formation indicated a and conducted on 1/25/92 Exhibit See attached pressure of 1680 psi. fracture uncontaminated An Report). Well Treatment (Dowell VII to prior was obtained zone fluid of injection sample is fluid this of and the analysis test rate the step VIII. as Exhibit attached is as well the injection for data operating Proposed follows: BPD) 50 BPH (1200 and volume: rate daily 1. Maximum BPD) 360 15 BPH ( and volume: rate daily Average psi 1400 pressure: injection 2. Maximum 800 psi pressure: injection Average water fresh Inhibited fluid: 3. Annulus See attached characteristics: fluid 4. Injection well, Attachment G: Attachment H: Attachment waters analyses of formation water representative be will water which from wells in the areas from IX). (Exhibit disposal for gathered of the diagram X is a wellbore as Exhibit M: Attached mechanical the downhole including subject well for injection. be utilized which will configuration log for the bond XI is the cement as Exhibit Attached subject Attachment as Q: Attached Attachment R: Attachment U: for Attached as Exhibit and Form 10-K for the demonstrating and plugging Oil and Gas well for disposal formation oil wells gas and Ranges 19, 20, the and plugging is a proposed well. subject statement is the financial XIII Oil Enron Company's and Gas Company, means for well. of the subject to use the subject proposes Company and River Green of associated from numerous produced water being 8, 9, & 10 South, in Townships financial abandonment Enron Wasatch XII Exhibit plan abandonment 21, & 22 East, Uintah Co., Utah. The via vacuum truck be transported will produced water at the tanks located to storage wells from the source be then will water disposal site. The produced into below a packer down tubing filtered and injected formation below "H" sand at pressures the Green River be will pressures Annulus pressure. fracture above the and the annulus injection monitored during to verify periodically tested pressure the packer of An API TDS level integrity. packer formation on uncontaminated was measured of the "H" sand samples taken from swab tests water well on in the subject casing and 42000+ mg/l EXHIBITI WITHIN LEASE OPERATORS/OWNERS 21-20B NBU OF RADIUS 1 MILE & Gas Corporation, 80201-0749. Colorado 1. Oil Coastal Denver, 749, 2. Uinta/Taylor Roswell, 2366, 3. Bar 4. Equitable Box 21017, 5. Resources Transfuel Texas Houston, 300, Moore, Derry 88201. New Mexico 7. Franzheim Houston, 8. JDH City, 9. Charles 10. W.G. 77002. 11. Texaco Colorado 12. Atkinson, J.V. M.D., Mallis, c/o Redding, Texas Oil D. Barkers Company, Suite Landing, 2700 2222 North Box 1021 Attention: Inc., 80201. Niels Post Esperson Wayne Suite 314, Oak Blvd., Suite 2370, Fountain Texas Houston, 22145, Freeway, N.W. 13405 Company, Inc., Fitch, DeArman, Oil Balcron 77079. Investment 77065. Texas Company, 77459. Texas N. 15995 Company, Company, 77040. Exploration Texas Lomax Houston, c/o 84066. Utah Roosevelt, 213, Company, Energy 59104. Montana Resources Billings, 6. Box Inc., Resources, Mesa Box Partner, Managing c/o Fund, Box Nelson, R. Jon Attention: Valley, 77227-2145. Houston, Building, Ziemianski, Missouri Box 2100, Gora, Paul Inc., Farms, Nix Doug Gene Rahll, III, C. Peverley George Box 3634, Inc., Company, JVA Operating Texas Denver, Nicholas H. Daniel Midland, EXHIBIT OF WYOMING STATE ) ) ) COUNTY OF SUBLETTE IA ss AFFIDAVIT C.C. of Parsons, says age, lawful being first sworn duly upon oath, that: and deposes of Big & Gas Company, Oil of Enron Manager He is the District Oil & Enron knowledge, of his and that to the best Wyoming, Piney, Exhibit I on attached operators/owners and the lease Gas Company of the radius operators/owners within a one-mile are the only lease well: subject NATURAL BUTTES UNIT 21-20B R20E SECTION 20, T9S, NE/NE, UINTAH COUNTY, UTAE in the United he placed 1992, of April letter of attached prepaid, a copy of the postage States Exhibit on listed operators/owners lease eleven intent to the first with Mail he placed in the U.S. on April 8, 1992, I and that the to intent of letter prepaid, a copy of the attached postage I. Exhibit twelfth on attached operators/owners listed lease That on the with Mail, 3rd day these envelope which contained operators/owners on attached lease Said to the Further this affiant saith was addressed instruments I. Exhibit not. Parsons C.C. Manager District Subscribed and sworn to before me this 8th day Notary MY COMMISSION EXPIRES JANUARY 23, 1993. GEORGIA of April Public 1992. EXHIBITIIB PROPOSED DISPOSAL FACILITYDIAGRAM J100 TRIPLEXPUMP FILTERS UNE HEATERWTTRACEUNES 400 BBL W/FIRE TUBE 400 BBL WIFIRE TUBE 3' X 25' X 80' DIKI NBU LOADLINES .SENT3.Y: XEROX Te l ecopier 7017: : -½-49 VERNAl.-TAri- 3:299M os.nu ËR AND NU WE DOWELL SCHLUMBERGERINCORPORATED IN u sA MNTeo FOA POOt./FIELD #fd 08 L -1g- L AGE OF WELL RK NEW R AI.60WAALEPRESSUAE 5TATE 780: PRIMARY TA YPE OF SERVICE MATRIX TREATMENT FRACTURING SA g; TWBINGBIZE TO BOTTOM OP } ÛÊÛ FPig NT ( INJ. g O O PEREGRATED INTARVAL . L DEPTH WT g|} (2 CONTROL OTMER ClL CSS CABING SizS FLUID TYPEOF WELI. GAS WATER I ] \ El O 0DUNTÝ/PAAISH T NUMBER TAEA N 90TTOM HÔLE TEMPERATURE N i 'a = WELL TREATMENT REPORT 0&G00, iNRON TO DEPTM TUSNG votuME ANN CL PERF. DIAMETER• OPEN MOLE I CAAING VOL IN. PERFORATED INTERVAL TOTALlŠPLACEMENT FOA CONVERSioN PURPOSES 24 BBLS EOUALS1000 GALI.ONS ARRIVEDON LOCATION: $ FT. Ow -N2 AATEBPM PRES lUNE CBG. PROP TYP NOTATIONB TBG ' Pre-Job Safety Meetmg Ô Pressure Test To r,7758) 1 .2p âgoo t/ dBot // ogpz it Oppy Il QW Lt -.2,¶ /f og† (( 07/0 // laf ,.2¶ ,2f .2f ,2fi 27 ii ,ir diti y -¾ .2F .,tr ,xy I( .¥ .If -2f ag; yk/E ,«-K Ñntf 3 ) 7 Bo - - - @0 - - -- - - g,to - ¯ - -- V70 ff ~ - -- -- 'NO 460 · -- - .7* ---- 22r --- .y.so liis - -- WDI pro - - -- WT /40 - -- ¥o ¡no - - -- 9¢o - -- -2.0.7-7f ·2f It N 2.19 i 4// #0 km fm m.tswe 770 - - 22f g .2r ,2f Mo - -- ,2.0 -2f ,25 \ - - I /.7¶ -2f .25 - t.yo .2ri -2T Il psty own -Z ,2f -- -7 .27 (( ditt4 -50 /.0 - i( -2¾ «2f ,2f driz dae -2¾ ;2f -2f dM/ .2f -AF .2f I a 2-3 - ,2¶ oppe i l yo(, /< pfll BOTH NNULua LEFT LOCATION: INJECTION RECOND TIME C. 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NJECTION RECOAD ; ( POO FIEL ) LOCATION(LEGAL) 8 30 ENRON 0&(i00. ia 4/ 7 UTAH vERNAL DOWELL SCHLUMBERGERINCORPO ATED UOTOMER WELLNAME AND NUMBEA A Û 3:23PM i /Lho - - - /¢f/d ere*Äf (ku , « A E 44 -EM 3 SENT BY: 1-¿D-n i SlTi Telecopier XEROX elynvis vou wo.se at ve.nisAL wiAn- i 4.¿wM WELLTREATMENT REPORT SUPPLEMENTALLOG DATE DOWELL SCHLUMBERGER INCORPORATED DB494-LA PRINTEDIN U 5.A. 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IWIII sisvis ii vv. vos v, REPORT WELLTAEATMENT SUPPLEMENTAL LOG OS4944A ^75 DOWELL SCHLUMBERGERINCORPORATED PRINTEDIN U.S.A GUSTOMER WELL NAMÊAND NUMBEA 2 \) LOCATION (LEGAL) POO -20 INJECTidN RECORD TYPE OF WLUID RATE BPM 093b mm Ë2e 2- si .2F -- -2¾ ,2T y aa ogg .2r ·° .25 gy A E gg ,.2F qv, ogs; om I est I on y en eer'A om -- -2f ..2K « -- -25 m¾ 5 95 - /-5 |-r i \ \ \ /-O |-T /-T ;-r - 3-r -· /« -- Af /.g - - - /.T /T /-F -- - Af' |-5~ -- W - ~ - - ( ,f¶0 £40 -- .py0 ,ggQ -- - - - - .5¶o - - † |-i 12 /-f Af¯ ST /T |-.5· //T /.T 78 - -- -- -- - - -- - -- £ý0 - 1929 /go -- ·- - ·~ IWo ¡WC -24 -- - -- ~¯¯ - -- ~¯ - -- ~¯¯ - -- ~¯ - -- - --- - - -- ·¯¯ - -- -- /Wo (9¥0 ·¯¯)Wo /Wo - -- /WQ /Wo -- - -- |-i 2.7- /-T y(0 ·~¯ -- AT /9-5' / - / sf'f0 /-T /st - à Syy A/o - ~15 - |-T /-5¯ -- --- /F ¥f AT 4 /-5 - -- ·--- 1-¶ 3 - - ----~¯ /-T /-T -- - --- - ----- go 3.ar sw # .590 --- 2.pr - 7E - -- -- 2.ar 2-5 See ,SO - ---· "--¯ 2-o - - - /-7T - -¢¾0 --- |-27 /-5 ~¯ -- - AD - 40 -.tgo -75 ,.25 04Y o i - PAGES /MG -- -- -- OF NOTATIONS TOG 90 -- ,5 - di PAGE - .2r ..2¶ 043þ W3 | -- - -27 -2T M& em 2 - ) ‡¶WM. - .,25 spr og 2 f TREATMENT NUMBER 080 2 0934 4950 PROP TYPE c • FIEL1 PRES3URE yo ¯ j ¡ -- jgg /†yc /Wo f¥ / ¯¯¯ -- §.sso fr- &·rc M•z: 5 X 5 TO - KEUFFEL THE INCH & ESSER CO • 7 X 10 1NCHES anot mus A 46 04 10 I i I IX EXHIBIT SOONER SOONEK CAL CHEMI Box O. P. Natural OURCE 47-27-B & AN 8-11-80 4 'Meqlt Mg/L 6.5 i. PM 2. H25 (Qualitativel Neg. 3. Specific Gravity 1.010 4. Dissolved Solids 5. Suspended 6. Phenolphthalain 7. Methyl 8. Bicarbonate 10. 382-2000 (405) 8-13-80 DATE. ¯ DATE SAMPLED T-9S,R2ÛÊa eÈ.27,(SW-SE) 9. Phone REPORT ADDRESS Buttes 74868 OKLAHOMA SEMINOLE, ANALYSIS Petroleum Eelco 711 INC. * WATER OMPANY S,tECIALTIES, CHEMICAL 22,050 Solids (CaCO,) Alkolinity Orang. Alkolinity 580 (CaCO,) 708 HCO, (HCOa! Chlorides (CI) CI Sulfates SO. (504) Br381 675 11. Calcium (Co¡ Ca 12. Mognesium Mg A 13. Total Hardness 14. Total tron (Fe) 15. Borium (Qualitative1 HCO, 264 -35.5 296 (Mg) 12 -61 Ci so. ÷48 15 -20 Ca Mg ÷12.2 1,043 (CoCO,) 10 0 16. 'Milli per equivalents liter PROBABLE MINERAL COMPOSITION Equiv. Wi. Compound 15 _ co 6 Mg 269 Na HCO: 4 SO* Values Co CQa Saturotion Co SO. Mg RFMAR¥5 CI þ • 2H O COs Sample taken 6,923-6,925 Distilled Water 12 Co (HCOsl2 81.04 14 Co SO4 68.07 Co Cl2 55.50 264 20°C Mg (HCOsig 73.17 Mg SO. 60.19 13 Mg/L Mg/L 2,090 103 Mg/L from the following perf's: Mg CI: 47.62 No MCOs $4.00 Nog SO, 71.03 Na Ci 58.46 Holes per 2 6,456-6,458 4 6,469-6,471 4 A-958-6.260 foot X Meq/L = Mg/L 12 972 3 204 6 361 5 355 - 264 15,433 SOONER Roosevelt, Post Office Box 1436 ) INC. SPECIALTIES, CHEMICAL Utah Phone (801) 722-3386 84066 WATER ANALYSIS REPORT DATE. ADDRESS COMPANY DATE SAMPLED y/ SOURCE - Mg/I Armiysts 1. PH 2. H2S (Qualitative) 3. Specific Gravity 4. Dissolved Solids 5. Suspended 6. Anaerobic 7. Methyl Orange Alkalinity (CaCOs) 8. Bicarbonate *Mogli (ppm) C/Mi Bacterial Count (HCO2) Calcium (Ca) (Mg) 12. Magnesium 13. Total Hardness (CaCO2) 14. Total Iron (Fe) 15. Barium (Qualitative) 16. Phosphate HCOa HCO2 2 ÷61 CI 1 ÷35.5 SO4 i ÷48 Cl 1 SO4 Ca ÷20 Ca MO ÷12.2 Mg ' • Residuals sienta per u.. MINERALCOMPOSITION PROBABLE Compound 18 - Solids Sulfates (SO.) ·Min e 4 'A'3 9. Chlorides (CI) 10. ANALYSIS NO - HCOs Ca a Mg i Na Saturation Values Ca SO. - Mg CO2 2H2O Cl Distilled Water 20°C 13 Mg/I Ca CO2 SO• 2.090 Mg/I 103 Mg/I Equiv. Wt- Ca (HCO2)2 81.04 Ca SO• 68.07 Ca Cla 55.50 Mg (HCO2): 73.17 Mg SO• 60.19 Mg Cla 47.62 NaHCOs 84.00 Na:SO4 71.03 Na Ci 58.46 X Meq/I = g/I l jó N SOONER CHEMICAL SPEL:IALTIES. P O. Box 711 SENUNOLE. PO Bo, H36 ROOSE' OKL ELT. HOMA ETAH 005: 382-2000 Phone 7 WS 84066 INC. Phone 722-5386 1801 WATER ANALYSIS REPORT DATE: ADDRESS COMFANY ANALYSIS NO DATE SAMPLED SOURCE 'Meq/I Mg/1(ppm) Analysis 1. PH 2. H2S (Qualitative) 3. Specific Gravity 4. Dissolved Solids 5. Suspended 6. Anaerobic 7. Methyl Orange Alkalinity (CaCOa) 8. Bicarbonate 9. Chlorides (CI) Cl 10. Sulfates (SO.) SO4 ÷48 SO. Calcium (Ca) Ca ÷20 Ca Mg ÷12.2 Mg . Solids HCO2 (HCO2) (Mg) 12. Magnesium 13. Total Hardness 14. Total Iron (Fe) 15. Barium (Qualitative) 16. Phosphate *Milli equivalents C/MI Bacterial Count HCO2 ÷61 Cl ÷35.5 (CaCOs) Residuals per liter PROBABLEMINERALCOMPOSITION Compound Ca (HCOa)2 HCO: Ca a Mg a Na Saturation Values Ca SO. Mg CO2 - 2H2O CI Distilled Water 20 C 13Mg/\ CaCOs SO4 2,090 Mg/\ 103 , , Equiv. Wt. X Meq/I 81.04 Ca SO. 68.07 Ca Cl2 55.50 Mg (HCO2)2 73.17 Mg SO. 60.19 Mg Cl2 47.62 Na HCO: 84.00 Na2SO. 71.03 Na Ci 58.46 - = Mg/I CORE 01-08-149gtern LABORATORIES LAB Atlas 912965-1 #: International COMPANY & GAS ENRON OIL 1-34 WELL #: [.7 COUNTY: FORMATION: SAMPŒD // DNA FIELD: ÑË .J¢ yad LOCATION:f d2>2 INTERVAL: OLD SQUAWS CROSSING SAMPLE ORIGIN: STATE: -ff MG/L MEQ/L CALCIUM MAGNESIUM 8300 361 570 88 361.05 9.24 28.44 7.23 TOTAL CATIONS SODIUM POTASSIUM SULFATE CHLORIDE CARBONATE BICARBONATE HYDROXIDE TOTAL 405.97 MG/L SPECIFIC --------- 8287 23420 25454 25721 CALC. SODIUM NACL EQUIVALENT CALC TDS* @356 F @221 F API TDS* * 60 includes tw Des oi gas aos or om . (OHM-M) : AT 68F 0.35 OBSERVED 7.5 pH milligrams per liter MEC/L = milligram equivalent per liter 6 Ca 6 Ng HCO3 = SO4 Chloride equivalent by Dunlap & Hawthorne calculation from couponents - oo,«s .sas 405.42 ANIONS Sodium APPROVED BY: ana O 525 O Cl Na o age,r ernnera CO3 Fe 6 Ine 143.10 253.72 0.00 8.60 O.OO OBSERVED in graph Na and K) represr 6880 8997 NOTE: NG/L WATERANALYSISPATTERN Scale MER per Unit (Na value MEQ/L SOLIDS DISSOLVED TOTAL RESISTANCE MG/L (? ( / k </ teoretanons o' opmes exo'esseo for wocse a> T,e exc as ce ana cochose a use:ns recort nas or are casea uoom ooservators anc matena suomed by tne ce ins conta nec o' a,v o' oroMaueness r. D'ace operates as 't I,e proca rowever anc mares no wa-rart; a reo esentano,s exoress av opæc assynes no umorarones Go e warones reoart snah not oe reorococeo exeec: in its esteet, vemou tne watien approvaof Core craperty.web or sano r conneenon wrtnwhicn such reoort is asec or rehea uoon for any reason wha soeve Tnis eraretatos a Go e recon responsty , 12-21 SOURCE DATE SAMPLED /s An PH 8.4 2. H25 (Qualitative) 2.5 3. Specific Gravity 1.025 4. Dissolved Solids 5. Suspended 6. Phenolphthalein 7. Methyl Orang. Alkalinity 8. Bicarbonate 9. 8-5-61 DATE. AN 8-3-81 YSIS 015 'Meq/L Solids (CaCO,) Alkolinity 400 (caco,) Chlo.-ides (CI) Cl so. (so.) Sulfates 11. Colcium (Col Ca 12. Mognesium Mg (Mg) 13. Total Mordness 14. Total tron (Fe) 15. Barium (Qualitotive1 HCO, 61 HCO (HCOa) 10. 22,302 -35.5 3,750 660 628 cl N so, 33 Co 21 M 4e -20 255 ;2.2 2,700 (CoCO,) 1.8 0 25.83 16- Phosphate 'Milii Utah Mg/L 1. 382-2004 (405) REPORT ADDRESS Vernal, Development Belco Phone 74868 OKLAHOMA SEMINOLE. ANALYSIS WATER COMPANy 711 Box O. P. INC SPECIALTIES, CHEMICAL SOONER equivolents per liter PROBABLE MINERAL COMPOSITION Compound 21 A Equiv. Wi. Co (HCOsla 81.04 Mg þ SO* 78 Co 504 68.07 Na þ CI 628 ca a2 ss.so Mg (HCOalz 73.17 SO4 60.19 Mg C12 47.62 Na MCOs $4.00 Nog 504 71.03 No CI 58.46 Solurotion Volues Ce CO2 Co 504 Mg COs • 2H2O ater Distilled 13 Mg/L 2,090 103 20°C Mg/L Mg/L Mg X Meq/L = Mg/L - 25 1,702 21 1,264 32 628 2,273 U.S... 800/527-2510 TX. 800/442-6261 WATER ANALYSIS REPORT ANALYSIS NO DATE SAMPLED SOURCE Mg/I Anatysm PH 2. H2S (Qualitative) 3. Specific 4. Dissolved 5. Suspended Solids 6. Anaerobic Bacterial 7. Methyt Orange Alkallnity (CaCO2) 8. Bicarbonate 9. Chlorides 1.048 Gravity Sulfates . •Meg/1 (ppn4 6.4 1. "3 5-13-87 DATE. ADDRESS COMPANY Sollds C/MI Count 360 430 HCO2 (HCO2) 40,710 Cl (Cl) Ca Calcium (Ca) Magnesium 13. Total Hardness 14. Total 15. Barium (Qualitative) 16. Phosphate per 2 1, 221 1220.2 2 120 Residuals mer MINERALCOMPOSITION PROBABLE Compound Ca (HCO2)2 6 S 6 390 (CaCO2) tron (Fe) ·Mim eauNalents CI 75 22 Mg (Mg) 12. - ÷48 120 HCO: 1 '47 ÷35.5 3, 600 SO4 (SO*) ' ÷61 HCO: Ca a Mg a Na Saturation Values CaSO.Mg CO2 2H2O Cl 1, 147 Distilled Water 20°C 13 Mgil Ca Coa SO. 2.090 Mg/I 103 Equiv. Wt- Meqlt 81.04 Ca SO. 68.07 Ca Cla 55.50 Mg (HCO2)2 73.17 Mg SO. 60.19 Mg Cla 47.62 Na HCO: 84.00 Na:SO. 71.03 NaCI X 58.46 6 1 1 73 60 74 1,147 Mg/\ = 6 5 UNE 67,054 , P. Developent 3eloo ' 5-16 Utah DATE SAMPLED / / A Phone 74868 382-2000 (405) REPORT ADDRESg/ernal, - DATE: 5-3-81 AN 8-5-81 YSIS 014 'Meq/L Mgtt ' L PH 2. H25 IQualitativ•l 3. Specific Grovity 4. Dissolved Solids 5. Suspended 6. Phenolphthalein 7. Methyl 8. Bicorbonate 9. Chlorides 4.0 1, 020 Solids Alkolinity Orang. Alkolinity (CaCO,) (CaCO,) (HCO3) HCO, (CI) CI Sulfotos (SO4) SO. 11. Calcium Ca 12. Mognesium 10. OKLAHOMA SEMINOLE. ANALYSIS WATER SOURCE 711 Box O INC SPECIALTIES, CHEMICAL SOONER (Co) (Mg) 500 610 10 16,992 4,500 W 4, 120 6 -20 Mg CI so ca Mg -12.2 600 13. Totol Hordness 14. Total tron (Fel 15. Barium (Qualitative) 0 16. Phosphate 3.35 'Milli equivalents per 9 35.5 (CaCO2) 0.1 liter PROBABLE MINERAL COMPOSITION Compound HCO2 Co 4 6 "9 571 Na Saturotion 10 6°* þ Values Co CO2 Co SO4 Mg COs • 2H O CI Distilled Water 13 Mg/L 2,090 103 Mg/L Mg/L 479 20 C Equiv. Wi. Ca (HCOal2 61.04 ce so, os.o7 Ca Cl2 55.50 Mg (HCOal 73.17 Mg 504 60.19 Mg C12 47.62 No MCOs $4.00 Nog SO, 71.03 No Cl 58.46 X Meg/L = Mg/L 86 - 293 2 92 479 120 6, 535 EXHIBIT XI e COMPRESSIVE (p.s.. Curing TemoJ FI F F Fi FI hrs. Liner Produchon rotectme Surface e Elapsed 24 hrs. 48 hrs. 72 STRENGTH F Hour rted pumpinq Equipment Hours from start of operation date rt :sh ¯¯ cement Cortridge pressure No. Spocing Cement Bond Log Cement Bond Log fiu.d ceding Fu¡¡ urns Data Type standoff Loqqing speed Bios: Max. a on bottom ease F F F i PRIMARY CEMENTING PROCEDURE - . _ Partial bbis. Volume None Pipe Pipe BOND reciprocateo reciprocated during ofter LOG 5"= 1OC BONDING INCREASES 50 AT SE plug down: Yes Yes No min., No SPECTRUM SEISMIC FT10 VO ÝS GAMMA RAY Pumpmg: CASI NG COLLARS I l I . PEAT SEC- N 1200 tSOO ......... i t' I 1400 | AFTER 2000# 1200 1400 IL 11 1500 si 1600 -- 1700 e fg i p 1800 1 1900 es. I 2200 2400 2600 2700 2800 2900 3100 3200 3300 . a 3400 3500 4600 i in i . I 4700 a , y L 4800 4900 L r la 5000 - a 5500 -+- 5400 5500 w- o o 12 5800 5900 -- (I ----- - - 6100 tgi 1 en at 6300 I li 6400 em rm 6800 6900 _r ti9 10 -69-76- BEFORE ) UU « 2 me 6900 L t. ACIN H MruTuot UBRANG ATED L. U % Bond ne Bond ng EXHIBIT <gc o - =I I ozz imm gomo 4 to x - oI $ Þ o • 3 API No 2 o a 'mr io mooorer V , 2 (x m c , o c C¯ c m r- .. --- • z o .a z T tisHeadmg O and Log Cor orm To API RP 3f m 40 4•¶$ AR INTED IN U.S.A. CHLORIDEst 3aroid TCL TRIP 'etroleum Services NB NEW BIT NCB NEW COltE BIT DST DRILL STEM TEST 21-20 R BUTTES NATURAL CORP PETROI EUM BELCO / N UINTAH CO , UTAH NG RATE TG O ppm O GAs a RETURNS toG- - - - ' ' ' Q OM REMARKS - % DATE O UNITS - T AÑÛ|Û LOGGING SYSTEMS LOG-HYDROCARBON5 CL LITHOLOGY 7.5 5.0 ELECTRIC LOG CO CIRCULATEOUTRETURNS CKF CHECK FOR FLOW EL TRIP GAs - 4 PER FT NNO IN MUD (M=1000) ANALYSIS MUD AIR/GAS % GAS IN GAS LOG -UNITS OF 3AS IN AIR _E G5T ERHR. EG -T4 7 G - --i 100 200 ITF WAi & 1 I &84 F --- I S I T-MBRN,VF-SL XLNVARGSLSLTY SFT- . CG-35 - - .! | - - SII LT-DKGY ScrY I. ÀC FRM-HD geg. VF SSWH,LTGY,CONS W FRM,FRI 11 I pm.pm ...- LS TMBRNM-DKGY, XLN,CH SFT AI.E Li JIAI HaltK - . . I . SH I .4 K ain ss ww,lTyr Tmig $Ùl $1 L.!-DKGY,WH, CALC, ARG,MHD SH M-DKGY CALC SLTY, MHÔ o IDO 2 LS LT-DKBRN,WH c Bo CHKY-SLXLN,V SLTY, SNDY,SFT- G HD SS LTGY,WH,VFGRN, I -- \ - - - MW SRT, WCEMhtC"i I - 1¯ H 45M Lw Si INT I T-DKGY,WH, ----- CALC,ARG,MHO L'S 26 Gil A/A .... - - .-- - LS A/A - - I N I - \ -· r. I LS LT-DKBRN CHKYSL XLN,VAR SFTHD,YELFLR, STR MLKYCUT © DV PRN-BLK,DK GY,CALC,SLTY,MHO SS WH,DKBRN,VFGR, MWSRT,WCEM-CAL( MHD,OILSTN,YEL FLR, FR-GD STRM MLKY CUT LS A/A,SL FOSS·OS --- •• ......... i e we,F-MGRN,ANG -SUBRND,M-wSRT, M-WCEM-CALCSL FRI-MHD,NFL'R • o ...••••••• SH M-DKGY, MGYGN CALC,SLTY,MHD TRT LT-DKGY,LT GYHDN,CALC,ABS, h_MB SS WH,LT CONS, SBRDMWSRTTROIL CALC,'SFT-FRM,' FRI TO LS 1 .-.....--. . SH M-DKGyGYGN,SLKY FRMSLTYI.P,CALÇ HD LT-DKGySOY, ARG,CALC,Fml -- - - -+- --- HD I LS T-DK M T dLËAIN,1EII. FLOR SLi CUT SS WH,LTGyFGR,CONS SBRD-RD,M-WSRT, CALC,ARG LR,SFT-FRM, FRI KIJ -- d SLTSTA/A TR LS AIA SHM-OKGY,G TRRE SS WH,LTGyFGR,CONS SBRD-RD,M-WSRT ARG,SFTRI TR ANHY 2. 77- SLTST LT-DKGY,ARG Cal..o, MHD I S IT-DKBRN,WH,G) CHKY,-SLXLN,VARG SF T- HD .... ... cu ist SH 90itM $28190 ----- · natum · , 501 -- ) -- - . . . . . . 20 i 42 TL Q uni -. I i i COMPEN$ATED · BELOO PETROLEUM CORP. STATE 20E UTAH *F 'F *F *F cc other services 4769 DLL/GR F LOG KR GL *F 'F *F *F cc Datum OF . NATURAL BUTTES 21-208 NE RGE _ 47 69 . @ @ Ft. Above Permanent ,,,, NATURAL BUTTES 16 NE UINTAH SW WP , *F @ cc ® *F . 'F 'F @ $ @ . , MEASIMEAS 42*F 10 HR 'F . 68 FLOWLI NE *F 1 1 ® $Û 'F §4 10 6 BRI NE/DR I SPAC 7 7/8 8 3/ 19Ô § 9 @ 196 7 O2 6 I 400 7028 7025 ONE 3/1/78 . G L K B B SEc LOCATION: COUNTY FIELD WFLL COMPANY OresserMas 9 FILENo. Parmanant from Log Measured from nrilling Mansured oate Run No. Depth-Driller Bottom Logged Interval Depth-Logger Top Logged interval Casing-Driller Casing-Logger Type Fluid in Hole enssa. Density and Viscosity pH and Fluid Loss Source of Sample Rm(a)Meas.Temp. @Meas. Temp. Amc@Meas.TemÞ· Rmf SourceofRmfandRmc Rm@BHT Time Since Circ ] - 'o - - - o ao e g----- es - 4 c c x cc .. E 8 ty · . -- - -- -- - - . ; -- D ----- à o -in mm -- -- en U Lu in -- , c ¯¯ 3500 ¯¯¯¯Î t 94 ht ¯ 3600 3700 r I I I li I a 't I I I I I I I I ar- .L.. I I I II il I III il I Illi I 00WELL SCNLUMBERGER INCORPORATED OBÔAMO Y 60 '" API WATER ANALYSIS REPORT FORBf MION \503-004-58 Sample Company N9• tion Well Water (P duced, Supply, etc.) L CATIONS Sodium, Na 5 (calc.) d Sa By PROPERTIES pE 0010 sp.esseoravity,eoisor. Resistivity Calcium, Ca Magnesium, Mg me L Il R415 Water. B/D Sampting OTiiER DISSQLVED SOLIDS A (ohm·meters)-F. - Barium, Ba WATER PATTERNS-me/L ANIONS Chloride, Cl Sulfate, 304 Carbonate, CO:s Bicarbonate, HCOs STANDARD n mfo ,o, , # to , ,m ,,, , HC0s . Mg gg flit Total DissolvedSolids (cale. No 54. Iron, Fe (total) Sutnde, as E23 a C p REMARKS& RECOMMENDATIONS: ANALYSIS BASED ON API RECOMMENDED ifit Illt 111: elit sitt till LOGARITHMic list irti lift gi Nco EXHIBITX WELLBORE DIAGRAM NATURAL BUTTES UNIT 21-20 B NENE, SECTION 20, T9S, R20E UINTAHCOUNTY, UTAH ELEVATIONS ASINGHEAD: 11" 3000# FUBINGHEAD: 11" 3000# x 6' 3000# TREE: 2 1/16" X 3000# MASTERVALVES GL: 4769' KB: 4785 , FORMATIONS 9-5/8', 36.0#, K-55 @ 196' w/200 SX CLASS 'G" CEMENTTOP @ 1180' KB GREEN RIVER(+3081) 2-3/8', 4.7#, J-55 TUBING 4-1/2" LOK-SET PACKER @ 3750' 3825. WASATCH(-425) CHAPITAWEU.S (-990) 6092' BRIDGEPLUG@6200 BUCK CANYON (-1639) 6130' 6916° TD: 7025' (DRILLEDW/7-7/8" BE 'H' SAND EXhdBIT IV Prepared in cooperation with the JIVISION OF OIL, GAS, AND MINING a a 4786 150 a 4.574 a 4 531 4.500 3.051 g 4,591 225.1 2 2,885 C 4 ht-Mile 0 2,963 2 586 01.678 08 38 613 1.5 356 00. 1,567 2.348 e 2,012e 2,091 C UN T CO 2.113 3,000 3.154 3 332 O 2,800 3 500 a 5.180 000 04,198 3,610 4,500 00 4,58 2,925 2 328 3,414 1.681 -- cc e .684 O EXHIBIT VIII CORE 02-12A LittentDresser ENRON OIL WELL AND GAS Uintah Green FORMATION: STATE: COUNTY: Natural FIELD: Sec. LOCATION: 3802 INTERVAL: SAMPLE ORIGIN: Utah River 1/24/92 DATE SAMPLED: PERFS 3802'-3825' REMARKS: Buttes 20, T9S, SODIUM POTASSIUM CALCIUM MAGNESIUM MG|L MEQ/L 14400 121 471 145 626.40 3.10 23.50 11.92 sample Swab CHLORIDE CARBONATE BICARBONATE TOTAL 664.92 MG/L SPECIFIC --------- 13882 37399 42072 42623 CALC. SODIUM NACL EQUIVALENT CALC TDS* @356 F 0221 F API TDS* * TOTAL 16200 10200 DISSOLVED 1¾ WATERANALYSISPATTERN Scale MEG per Unit RESISTANCE 336.96 287.64 0.00 17.81 0.00 O 1086 BYDROXIDE CATIONS MEQ/L MG/L SULFATE R20E 25' - NBU #21-20-8 GREEN RIVER TOTAL 920203-1 Cornparar #21-20-8 #: LABORATORIES LAB #: O 642.41 ANIONS AT 68F (OHM-M): 0.25 OBSERVED OBSERVED 7.6 pH SOLIDS Ct Na NOTE: MG/L = milligram titer per 13 MEGIL = milligram equivalent HCO3 Ca per liter 13 ¾¾ Mg Sodium Chloride equivalent Damtap & Hauthorne (Na value in graph includes Na and K) ty 13 APPROVED BY: CO3 Fe calculation - from components pf this recort are based UDon ODeefvatorts gxi rTisierim supolled by the chant 90r wr100s suciusiveanG Confidentia use the reCOrt fas Dean rnaos. 1110Int&Dr9tSD0ns or opiniorm contain-O anmees. Cormons or OtercretatlOns 85 to IFie DroCMCirvity groDM ODerations. Or DrofriableneBS exproSB or WToled. arto FT1axes (10 warrarity or representatlOns. nOwever assurnesno raaDonenkly Core LaDoratones of Core tagoratores the Dest y rids entrely. Withoul th0 WFWienapprDFR OICore orcoerty. wol or sena rt CofWWCIIOnwilft WhlCft suCh reDort is useC0r remoduDon10r any reason witatsoever Tlmsromort shali not 0B reprOGuCed. exCept ou gas. coal or other fruneral reDresent Of any EXHIBIT III WELL DATASHEET (WELLS WITHINAREA OF REVIEW) WËLL ÑAME DUCK CREEK 4-17GR 2050' FSL 1970' FEL WSE, SEC. 17, US, R20E CURRËNT STATUS PRODUCING-GAS - DUCK CREEK 5-16GR 539' FSL 2000' FEL SWSE, SEC. 16, US, R20E DUCK CREEK 6-16GR SI-OIL - 2082' FSL 1925' FWL NESW, SEC. 16, US, R20E DUCK CREEK 10-16GR 714' FWL 1984' FNL SWNW, SEC. 16, BS, R20E DUCK CREEK 11-16GR 864' FWL 968' FSL SWSW, SEC. 16, BS, R20E SI-OIL - SI-OIL - PRODUCING-OIL - UCK CREEK 15-16GR Î970'FWL 465' FSL SESW, SEC. 16, US, R20E DUCK CREEK 16-16GR SI-OIL - 1658' FSL 1931' FEL NWSE, SEC. 16, ISS, R20E DUCK CREEK 18-16GR 1945' FWL 2210' FNL SENE, SEC. 16, TSS, R20E SI-OIL - - PRODUCING-GAS Sl*UD/TD CASING TOP ÔIÑÉMËNT CËMËRT PERFORATIOÑS 7047-49' 6660-62' & 6653-55' 6365-67' 6130-32' 4913-17' 4839-43' FÖRMATIÒÑ 9-5/8", 36#, K-55 @ 189' 7", 20 & 23#, K-55 @ 5176' 4-1/2", 11.6#, K-55 @ 7339' 1750' 200 SX CLASS"G" CEMENT 996 SX 50-50 POZMIX 500 SX 50-50 POZMIX 7/79 5095' 9-5/8", 36#, K-55 @ 210' 5-1/2", 15.5#, NKK @ 5093' 1530' 200 SX CLASS"H" CEMENT 960 SX 50-50 POZMIX 8/79 5054' 9-5/8", 36#, K-55 215' 5-1/2, 15.5#, NKK @ 5054' 4870-74' & 4862-64' 1515' 200 SX CLASS"H" CEMENT 1161 SX 50-50 POZMIX 11/80 5072' 9-5/8", 36#, K-55 5-1/2", 17#, K-55 1460' 200 SX CLASS"G" CEMENT 930 SX 50-50 POZMIX 4921-23' 4893-95' M-STRAY M-8 10/80 5007' 9-5/8", 36#, K-55 5-1/2", 17#, NKK 1648' 200 SX CLASS"G" CEMENT 820 SX 50-50 POZMIX 4953-55' & 4936-38' 4852-54' & 4845-47' 4092-4102'& 4/80 5090' 9-5/8", 36#, K-55 208' 5-1/2", 17#, NKK @ 5090' M-STRAY M-8 J-ZONE J-ZONE M-STRAY M-4 4/80 5064' 9-5/8", 36#, K-55 5-1/2", 17#, NKK 7/80 7270' 9-5/8", 36#, K-55 5-1/2", 17#, K-55 3/81 7331' @ 194' @ 5070' @204' @ 5001' @ 208' @ 5063' @ 192' @ 7265' KB B-11 B-7 C-STRAY C-11 M-8 M-4 M-8 2020' 200 SX CIASS"G" CEMENT 1060 SX 50-50 POZMIX 4109-12' (CIBP @ 4100') 4917-21' & 4909-13' 4840-43' 1650' 200 SX CLASS"G" CEMENT 1105 SX 50-50 POZMIX 4856-64' 4778-89' M-8 M-4 1780' 200 SX CLASS"G" CEMENT 2175 SX 50-50 POZMIX 6985-87' 7014-16' 7071-73' B-11 B-11 EXHIBITIII WELL DATASHEET (WELLSWITHINAREA OF REVIEW) WELL NAME DUCK CREEK 35-17GR P&A PLUGS 306' FSL 767' FEL ?ESE, SEC. 17, TSS, R20E CURRENT STATUS P&A'D 6-11-81 SPUD/TD CASING 5/81 5006' 9-5/8", 36#, K-55 SI-OIL 12/79 7206' 9-5/8", 43.5#, K-55 4-1/2", 11.6#, N-80 PRODUCING-OIL 12/80 5078' 9-5/8", 36#, K-55 5-1/2", 17#, K-55 @ 195' @ 5078' 2/81 5070' 9-5/8", 36#, K-55 5-1/2", 17#, K-55 5/81 4993' 9-5/8", 36#, K-55 5-1/2", 17#, K-55 P&A'D 280' 9-5/8" TA 7332' 4-1/2" P&A'D P&A'D 10,498 6407 @ 184' TOP OF CEMENT SURFACE - NBU 34Y 1690' FNL 1702' FWL SENW, SEC. 21, TSS, R20E NATURAL DUCK 10-21GR 913' FNL 2017' FEL SWNE, SEC. 21, TSS, R20E - - NATURAL DUCK 11-21GR 542' FNL 1976' FWL NENW, SEC. 21, TSS, R20E ATURAL DUCK 12-21GR 66' FWL 824' FNL NWNW, SEC. 21, TSS, R20E SI-OIL - SI-OIL - IGÈ32-30 NESW, SEC. 20, TSS, R20E CIGE 32A-20 NESW, SEC. 20, TSS, R20E U TRAIL 2 UT RE-ENTRY SWNE, SEC. 20, TSS, R20E @ 280' @ 203' @ 7200' KB CEMENT 200 SX CIASS"G" CEMENT 80 SX CLASS"G" CEMENT 80 SX CLASS "G" CEMENT 100 SX CLASS"G" CEMENT 100 SX CLASS"G" CEMENT 100 SX CLASS"G" CEMENT 50 SX CLASS"G" CEMENT 120 SX CLASS"H" CEMENT 2355 SX 50-50 POZMIX 1900' 200 SX CLASS"G" CEMENT 700 SX 50-50 POZMIX @ 190' @ 5070' 1350' 200 SX CLASS"G" CEMENT 1011 SX 50-50 POZMIX @ 208' @ 4992' 1350' 200 SX CIASS"G" CEMENT 905 SX 50-50 POZMIX M-4 M-2 J-2 M-STRAY M-8 M-4 M-2 M-4 4796-98' & 4790-92' 4730-32' M-6 M-STRAY 6421-23' 6918-30' 350 SX CEMENT FORMATIÖN 4688-4488' 4205-4000' 3722-3522' 2190-1990' 1102-992' 267-167' 4824-26' 4733-35' 4056-66' CIBP @ 4200' 5012-14' 4882-84' 4812-14' & 4805-07' 4778-80' 4845-47'& 4850-52' SURFACE 1500' 5-1/2" PERFORATIONS 6075-85 Nf TED STATES ENVlWONMENTALPROTECTION AGENCY FermAspreweg WASNINGTON. OC 20480 EPA OMB#a 2040·0042 ^'''"***'''*·3 COMPLETION REPORT FOR BRINE DISPOSAL. HYDROCARBON STORAGE. OR ENHANCED RECOVERY WELL NAMEAND ADORESSOF SURFACEOWNER PERMfTTEE NAME AND A00AESS OF EXIST1NG ENRON DIL & GAS COMPANY P.O. BOX 250 PI BIG EY WYOMING 83113 UTE TRIBE Ft. DUCHESNE, PERMif | UINTAH UTAH A UTAH couni Y «Iwit ON TANDO ** NUMBEA UT2623-03708 SURFACELOCATION OSSCRIPTION TowWsNip '40F 9S moF NE usECnoN 20 NE manos 20E NE LOCATEWELL IN TWOOinECT10NSFROM NEARESTLINES OF QUARTER SECil0N ANO ORII.UNGUNIT a,,J0 3 one of quaner seenen fr. from tag TYPEOF PERMif WELLACT1VITY E I I Ë Û srineoleneses O Enhenced Recovery 0 sve...re..s..r... Antigigeles Gaely infecnon Aree su....«w.n....L Annesgesse intecnon oessy Average E 0m O om., Date Ordung Complessa 5-18-78 SED "H" md SAND zone (estimated) @oreeny et inpecnon Jone . 3-3-7 8 14 5 oo sia. 9-5/8" 4-1/2" 2-3/8" wvst - Grene - New or 36#, K-55 J-55 11.64, J-55 4.7#, usee ( sacks oneen Remy i 196' New I 7075' Nesy I 3798' 700 3802-25' 50/50 3500 gals Wmi UNŒ t.OGS. UST EACH TYPE Comnensated "V" nensiing Tog Il11Al TATPTolo R-Bon<1 To Comolete Attachments A - 7-7/A" *nzwis intervees Types HCl.. 2000# 16/30 sand. 7078-T AAA' 707 7098- 106' 698 -1100' -11/15' E listed on tne reverse. CERTIFICATION information I certHy under the penalty of law that I have personeHy examined and am familiar with the individuals those of inquiry on my based and aH attachments that, submkred in this document and accurate. is information true. the believe that I the information. immediately responsible for obtaining and complete. I am aware that there are significant penalties for submitting 32). the possibility of fine and imprisonment. (Ref. 40 CFR 1 NAMEANO OFFICIAL TITuit?teese C,C, Parsons. type er prmr; District Manager me..« 17-1 /^" "G" 7100 Malertels and Amount Used 15°' an o os..n class UECWON 20NŒ SUMUMHON T.-assag NOLE CEMENT CASINGANO TUSING Interval 21-208 zon. in- 10-20 Formanen Weil Number GREEN RIVER 2-9-78 Í 200' Permeensuey of Ingeenen Oste Wen Comgessee Oete Oninng gegen Foss 3825' A NATURAL BUTTES UNIT n....« to ossento eenomet t.swarmens Freanneser I.sese Name O Freen weier www....... 3802' 600 psig Type of Injecnon Giusd ¢Chest @se approprsete Macitag interval Fees Pressure (Psq Mammum 500 psig weser ersemen ; Inçocuen 1400 Shls 700 Eb1s sanwater IBbist Volume Mammum Average s Estimated Fracture Pressure onngon Zone ladividuas false information, including DATESIGNED 9-17-92 Page 26 :: 'orm UNsTED STATES ENVIRONMENTAL PROTECTION OMB No 20004042. Aa Anoroved erosrer 9-30-86 AGENCY REæCORD GE PA O WELL RE NAME AND ADDRESS OF CONTRACTOR NAME ANO AOORESS OF PERMtTTEE ENRON OIL & GAS COMPANY BOX 250 P.O. BIG PINEY, WYOMING 83113 TINPLES nIL HELL SERVICE, INC. BOX 765 P.O. VFPN^T HT1H */039 RERMITNUMBER . COUN1f STATE LOCATEWELL ANO OUTUNE UNff DN 640 ACRES SECTION PtAT UTAH I U UINTAH I . 2623-03708 - SURFACELOCATION DESCRIPTION RANGE 20E 9S 'OWNSHIP 20 'AsECTioN NE mop NE SECTION ANO ORILUNG UNIT QUAATER OF NEAREST UNES OtRECTIONS FROM TWO IN LOCATE WELL NE \ l l \ ,sop Surface , Location lik of quarter from (N/ŠË-Line anela. TYPEOF PERMIT Olndividual C Ares Totsi Deptn Before Rewora WELL ACTIVITY U Brine Disposai O Enhanced Recoverv O Hydrocaroon Storage E secnon from (E/993L..-... Line et quarter section 7025 ' Total Deptn After Rewon Numoer of Wells (CTRP (à 5100 Date Aeworn Commenced Lease Name Well Numoer Date Aeworm Corrtotetea 1 | I 9-11-92 NATURAL BUTTES UNIT | L 7125' 21-20B SW S WELL CASING RECOBO Coment Casing Size i 9-5/8" 4-1/2" I Tves Sacks Deoth 200 12100 196' i 7025' 50/50 I Í Deotn Sacks i Sundry attached Notice "nTm Acad or Fracture i ! Tvos Trearment Record To i | I 186.817 I;91r,' From 3¾ KC1 NV-T-Gel vals anci Changes Additions I 'o i 3R?5' TTT Only/ Acse or Fracture 1 Porterarsons ! 3807' Treatment Record 3500 15°' HCI & 20004 16/30 san WIRE UNE LOGS. UST EACH TYPE Logged Intervals l DESCRIBE REWORK OPERATIONSIN OETAIL NECESSARY USE A00mONAL SHEETSIF See SEFORE REWORK AFTER REWORK //ndicare i I SAME AS IABOVE - Coment \ Casmq From 609.?' Pazi - Perforations I "G" WELL CASING RECORD size i i Log Tvoes 3T60-5 f ICompensated-Densilog · | 7028-1400' I 707A-110A' i 7078106 !"F" Lov IDual Laterolov "GR-ßonri lov i 6099-11/15' CERTIFICATION the information of law that I have personally examined and am familiar with individuals those based on my inquiry of submitted in this document and aH attachments and that. accurate. the information. I believe that the information is true, i certily under the penalty immediately responsible for obtaining significant penalties /or submitting falso information, including and complete. I am aware that there are (Ref. 40 CFR 144 32). the possibility of fine and imprisonment. OATES90N1E7D-92 St C Pars ns, stric Man ger Page 4 Final Permit No. 28 :: 32 UNITED STAlcS . ENVIRONMENTAL PROTECTION AGENCY REGION VIII SUITE 500 80202-2466 999 18th STREET DENVER,COLORADO - ggg JUL15 1992 Ref 8WM-DW : CERTIFIED RETURN NAIL RECEIPT DNISiONOF OlLGAS&MINING REQUESTED Mr. C. C. Parsons Manager District Company ENRON Oil & Gas P. O. Box 250 WY 83113 Big Piney, RE: Dear Mr. CONTROL UNDERGROUND INJECTION for the Permit Draft No. 21-20B Unit Natural Buttes No. UT2623-03708 EPA Permit Utah Uintah County, Parsons: Injection Underground is a Draft Enclosed Buttes Natural disposal well, salt water proposed development discusses which of Basis, A Statement is also (UIC) Permit No. the for 21-20B of the SWD. permit, included. VERNAL soon in the Vernal, Utah, appear should A notice opportunity to comment. of their notifying the public EXPRESS, to has also been sent a permit of our intent to issue A notice of Land Management, Agency, the Bureau Indian the Uintah & Ouray interested lease and other and Mining, Division of Oil, Gas, Utah action will on this comment period The public operators/owners. You may of publication. from the date days (30) run for thirty to obtain the exact Thigpen, at (303) 293-1421, call Ms. Daniela deadline for public comments. will not be decision permit Please that a final be aware Before a comment period closes. after the public until will be comments public all permit decision will be made, final comments are consideration. If any substantial taken into are to be made from the or if any substantial changes received to delay be necessary permit, it will permit draft to the final for an additional action permit of the final date the effective 124.15(b) in by Section is required This delay (30) days. thirty decision. appeal of the final for a potential order to allow made Printed on Recycled Mr. C. C. UT2623-03708 Two Page Parsons of the permit is only a "DRAFT" version permit permit. It is a "sample" of what the final contains. Although the text on page four paragraph two (4), (2), injection permit to begin of the "Draft" says you are authorized of the permit is N_O_1official. It is operations, this version to comment. being sent to you so that you may have a chance The proposed If Emmett to enclosed final the you have Schmitz at ATTENTION: on the any questions 293-1436. (303) draft Please EMMETT SCBMITE citing permit, written please send MAIL 8WM-DW very CODE: prominently. S Max H. Dodson, Management Water Enclosures: cc: w/enclosures: Draft Draft Public Director Division Permit Statement of Basis Notice Secakuku Mr. Ferron Resource Dep't. & Mineral Energy Indian Agency Uintah & Ouray P. O. Box 70 UT 84026 Fort Duchesne, Mr. Gil Hunt and Utah Division of Oil, Gas, Center, #350 3 Triad Temple North 355 West 84180-1203 UT Salt Lake City, Mr. Jerry Kenzka Vernal District of Land Management Bureau 170 South 300 East 84078 UT Vernal, Mr. Charles Cameron Liinta and Indian Agency Bureau of Indian Affairs Ft. Duchesne, UT call comments Mining PROTECTKIN ENVIRONMENTAL UNITED STATES AGENCY REGION VIII STREET SUITE 500 80202-2466 DENVER,COLORADO 999 18th - . FJUL1 7 1992 DMSIONOF OILGAS&MINING PURPOSE proposal purpose of this by the Region Agency Protection underground CONTROL PERMIT NOTICE OF PUBLIC The the PUBLIC NOTICE AN UNDERGROUND INJECTION TO ENRON OIL & GAS COMPANY TO ISSUE INTENT (EPA) via a Class No. 21-20B SWD, Utah. County, NE 1/4 comment on public solicit of the U. S. Environmental fluids to inject issue a permit Unit Buttes the Natural disposal well, to notice is VIII Office to II NE 1/4 Section 20 - T9S - R20E, Uintah BACKGROUND for an application reviewing VIII is currently EPA Region from ENRON Oil & Gas Permit Control Underground Injection water Formations salt River and Green Wasatch Company, regarding water produced fluid is salt operations. The injection disposal gas from ENRON Oil of natural with the extraction in conjunction Buttes in the Natural wells Company owned and operated & Gas Unit. an The Therefore, for permit data prepared All available 5:00 made Company. COMMENTS permit record to has sources & Gas ENRON Oil PUBLIC all determination that a preliminary (USDW) will be protected. water of drinking a of intent to issue notice serving EPA is hereby injection to activities, underground the proposed EPA underground for submitted by ENRON Oil public for p.m., or by EPA, the applicant, contained in by are & Gas Company. inspection contacting at the as the well as the administrative information locations office: following is This these draft from 9:00 a.m. Agency Protection Environmental 8WM-DW Region VIII, Section UIC Implementation Emmett R. Schmitz Attn: Suite 500 Street, 999 18th 80202-2466 Colorado Denver, 293-1436 (303) Telephone Printed on Recycled in and will be accepted, comments are encouraged Public of thirty (30) days for a period Office writing, at the Denver for a public hearing notice. A request publication of this after of the state the nature and should should be made in writing A PUBLIC HEARING at the hearing. proposed issues to be raised INTEREST IS SHOWN. WILL BE HELD ONLY IF SIGNIFICANT FINAL PERMIT DECISION AND APPEAL PROCESS EPA will comment period, of the public After the close commenters all notify and will permit decision, issue a final decision issue; may be to: decision. The final regarding this permit. The final the draft or revoke and reissue deny; modify; the final (30) days after effective thirty shall become decision in requested a change no commenters is issued, unless decision effective become shall the permit in which case permit, the draft upon issuance. immediately has decision permit a final days after Within (30) thirty permit or comments on the draft who filed been issued, any person the Administrator hearing, may petition participated in a public to 40 CFR are referred Commenters decision. the permit to review of the requirements 124.20 for procedural 124.15 through Sections process. appeal JUL \5 l992 Date of Publication Max H. Dodson, Management Water Director DRAFT STATEMENT OF BASIS (NBU) 21-20B NATURAL BUTTES UNIT UINTAH COUNTY, UTAH EPA Emmett R. Schmitz U. S. Environmental UIC Implementation 999 18th Street, Colorado Denver, Telephone: (303) CONTACT: DESCRIPTION DiVISiONOF OILGAS&MINING NO. UT2623-03708 PERMIT Protection JUL17 1992 SWD Agency SWM-DW Section, 500 Suite 80202-2466 293-1436 AND BACKGROUND INFORMATION: OF FACILITY ENRON Oil made application 10, 1992, & Gas CO:mpany On April of injection control permit for the disposal for an underground "numerous waters from Green River Formations and Wasatch produced 21 20, in Townships Ranges 19, 8, 9 & 10 South, gas and oil wells are sources of water Uintah Utah." All Co., and 22 East, SWD wells. The NBU 21-20B operated reported to be from permittee water salt 20 T9S is not a commercial R20E) UNE NE Section in the permit included well. A water analysis, disposal disposal water Formation describes the Green River application, (TDS). The TDS of the mg/1 total dissolved solids as 42,623 The mg/l. produced at 25,721 Formation water is analyzed Wasatch River "H" sand content of the Green dissolved solids (TDS) total mg/l. by analysis, 20,500 disposal zone is, - ENRON Oil injection The only - Company & Gas pressure Environmental of 1400 Protection a maximum surface ENRON Oil & Gas a maximum surface square inch gauge requested per pounds Agency injection Company (EPA) pressure all submitted has (psig). allow will initially of 600 psig. required permit issuance in accordance permit has been and a draft 144, 146 and 147, with 40 CFR Parts life of for the operating will be issued prepared. The permit for is terminated the permit disposal unless water well, the salt However, 144.40 and 144.41). (40 CFR 144.39, reasonable cause years. will be reviewed every five the permit information and data ENRON Oil integrity as one test condition This site-specific referenced conditions conditions site-specific 147), are necessary for has not conducted a mechanical An MIT shall SWD. the NBU 21-20B permit. of the Final issuance & Gas (MIT) fqr Company on be run permit sections gives the derivation of the of Basis The for them. conditions and reasons and correspond and conditions to the sections in Permit Draft Statement Draft for which not differences included UT2623-03708. content (based the in the is The mandatory on 40 CFR Parts general and not 144, permit subject 146 and to of Statement Draft Page 2 PART II, Çasing Section and WELL CONSTRUCTION A and For construction is (Condition diameter (KB). A 4-1/2 submitted details were cementing the proposed disposal as follows: well, the with 1) permit existing (9-5/8 casing Surface inch is set in a 12-1/4 inch) of 196 feet kelly bushing a depth is cemented to the surface. casing hole to The surface longstring KB. of 7025 feet a depth Top of cement (TOC), by 1180 feet KB. However, have been cement should (2) REQUIREMENTS Cementing Casing application. (1) Basis inch is set Total in a 7-7/8 depth is inch a Cement Bond by calculation, circulated to the long the surface. Wasatch perforated the gross Originally, the permittee 6130 feet. 6592 6916 feet and 6092 Formation intervals, of Green River "H" sand Prior to natural gas evaluation plug" was set at (3802 3825 perforations a "bridge feet), 5100 feet. plug was set at and a cast iron bridge feet, - to hole 7025 feet Log (CBL), KB. is string - - 6200 of interbedded is composed and thinner confining sequences of porouswith intercalated limestone and siltstone, interval disposal River "H" sand permeable sand. The Green enclosed i.e., KB) is effectively by shale, (3802 3825 feet A Compensated Densilog and 3826 3754 3798 feet 3850 feet. thick. The proposed River "H" sand to be 28 feet shows the Green below is located feet 3802 3825 feet) 3,600 disposal interval, saline of moderately waters, the base of the mapped interval GROUND mg/1 (BASE OF MODERATELY SALINE 3,000 to 10,000 i.e., USDW of the last The base WATER IN THE UINTA BASIN, UTAH). total dissolved of Utah reported Formation with State (Uinta and from the surface, than 10,000 mg/1) is 200 feet solids less surface casing. The below the of the feet base four (4) mg/1 for the proposed "swab sample" TDS of 42,623 analyzed River Exemption for the Green zone precludes an Aquifer disposal constructed will adequately disposal be "H" sand. This facility "H" migration out of the authorized no disposal fluid to ensure interval. sand entire impervious The thick Green River Formation shales, confining - - - - The 1704 5210 Total Uinta feet. feet. depth The The is from the surface Formation extends extends Formation from Green River Formation occurs top of the Wasatch 7025 feet in the Wasatch to a depth feet at 5210 1704 of to feet. of Basis Statement Draft Page 4 PART II, Prior Section to the to commence until be allowed (EPA Form 7520-12); Rework Record a Well has the well has been determined; zone pore pressure in guidelines discussed test an MIT following passed (Condition Integrity 2) tubing/casing (Condition Interval Iniection disposal Fluid Iniection not will must be repeated at annulus pressure test demonstrate continued tubing, five years to once every (5) integrity. and casing A interval 1) submitted the disposal successfully the permit. Mechanical (Condition Iniection Commencing Injection has permittee least packer, WELL OPERATION C 3802 - 3825 will feet be to limited the Green River sand KB. (Condition Limitation Pressure "H" 3) 4) iniection surface shall limit the maximum The permittee provisions have been made that Permit pressure to 600 psig. in the injection an increase allow the operator to request pressure. step-rate test 1992 submitted a January 25, shut-in of 600 pressure an instantaneous (SRT) pressure injection necessary maximum surface psig. injection, before creating for water to hold open any fractures gradient of 0.5973 A fracture any new fractures-out-of-zone. psi/ft can be calculated: The permittee which identifies This is the Pmax Fg Emax d 0.433 Sg Fg Green obtained = = = = - + 0.433 Sg injection pressure: surface 3802 feet top perforation: as psi/ft of fresh water, water: gravity of injected 600 Maximum Depth to = weight = Specific = 600/3802 fracture A calculated Formation is River recently 0.433Sg)d (Fg Pmax/d from + (0.433)(1.015) gradient consistent other Green = 0.5973 1.015 psi/ft psi/ft for of 0.5973 gradients fracture with River step-rate the psig Statement Draft Page Iniection Volume The no of Basis 5 II, Section the (Condition C, that PART Section rate pressure above. 4), volume on the be no limit may be injected into MONITORING, D 5) (Condition shall There of water II, iniection injection daily shall case Limitation will exceed not be limited, listed in that in but Part cumulative number of barrels the Green River "H" sand. KEEPING, RECORD AND REPORTING OF RESULTS Iniection Well Monitoring Program (Condition 1) water quality of the permittee is required to monitor fluids on an annual basis. A water sample of injected specific dissolved pH, fluids shall for total solids, be analyzed is a change gravity. Any time there conductivity, and specific analysis is quality a new water in the source of injection fluid, analysis is required to be reported to EPA also required. This observations of flow In addition, rate, annually. weekly pressure will injection pressure, and annulus cumulative volume, injection each for flow At least one observation rate, be made. volume will and cumulative be pressure, annulus pressure, record is required to be basis. This recorded on a monthly reported to EPA annually. The injected The pertinent shall the at maintain office of copies (or ENRON Oil of originals) & Gas all Company, Big Wyoming. Piney, PART permittee records II, E Section PLUGGING and Abandonment Pluqqing AND ABANDONMENT (Condition Plan plan (Appendix C of the abandonment the following (2) plugs with by This plan has been reviewed and approved specifications. 1 by the EPA. EPA, with modification of Plug No. a slight The Permit) plugging Plug and of consists #1 - two Set a cement plug off squeezing feet perforations 3802 Plug #2 2) - from 3700 feet to 3850 Green River "H" sand 3825 feet. - inside of a cement plug longstring, and the annulus 1/2 longstring X 9-5/8 inch from surface to 200 Set the the 4-1/2 inch between the surface casing 4- of Basis Statement Draft Page 6 PART II, Demonstration Section F of FINANCIAL Financial RESPONSIBILITY (Condition Responsibility has ENRON Oil & Gas Company been that has December 31, 1991, submitted reviewed a Form and 10 -K, approved dated by the 1) "%. UNITED STATES PROTECTION ENVIRONMENTAL AGENCY REGM)N VIII SSUO20E2-5204066 DE9N9V9ER,ChOSLORREAEDO FJUL1 7 1992 UNDERGROUND II Salt Permit Well Name: Field County UT2623-03708 Unit (NBU) Natural Buttes Buttes Name: ENRON Oil Big Piney, Prepared: 21-20B SWD Utah to: issued Date County, Uintah & State: Well Disposal Water No. Natural PROGRAM Permit Draft Class CONTROL INJECTION DíVISiONOF OILGAS&MINING & Gas Co:mpany Wyoming May EPA 1992 Draft Permit No. 1 of Page MT2623-03708 32 Printed on Recycled OF CONTENTS TABLE TITLE SHEET TABLE OF CONTENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART I. AUTHORIZATION PART II. SPECIFIC A. WELL 1. 2. 3. 4. 5. 6. REQUIREMENTS WELL 1. 2. 3. 4. 5. ACTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Abandonment Plan Activities Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page EPA Draft Permit 11 11 12 12 13 . RESPONSIBILITY FINANCIAL Responsibility. Demonstration of Financial 1. Institution of Financial 2. Insolvency by Financial Cancellation of Demonstration 3. Institution . 8 8 9 10 10 10 11 11 . PLUGGING AND ABANDONMENT and Notice of Pluqqinq 1. and Abandonment Pluqqinq 2. Cessation of Iniection 3. Pluqqing and Abandonment 4. . 8 . . . . 6 7 7 8 8 . . . 6 6 . AND REPORTING RECORDKEEPING, MONITORING, RESULTS Program Iniection Well Monitoring 1. Information 2. Monitoring Recordkeeping 3. of Results Reporting 4. . 6 . . . 4 . . . 2 . . . . F. . . OPERATION Iniection. to Commencing Prior Mechanical Integrity Interval Iniection Limitation Pressure Iniection Limitation Volume Iniection Limitation Fluid Iniection Annular Fluid . E. . and Cementing Specifications and Packer Tubing Devices Monitoring and Workovers Changes Proposed Formation Testing. of Conversion Postponement C. D. CONDITIONS CONVERSION Casing CORRECTIVE 7. TO INJECT PERMIT B. 6. 1 . No. 2 of 13 13 13 13 14 14 14 14 15 32 PART CONDITIONS PERMIT III. GENERAL A. EFFECT B. PERMIT ACTIONS Reissuance, 1. Modification, Conversions. 2. Transfers 3. of Address Operator Change 4. OF PERMIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E. AND REQUIREMENTS GENERAL DUTIES to Comply 1. Duty of Penalties for Violations 2. 17 17 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DETAILS) . . not 18 a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 18 18 18 19 19 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . APPENDIX A (CONVERSION APPENDIX B (REPORTING APPENDIX C (PLUGGING & ABANDONMENT PLAN) . 18 18 Permit . . FORMS) 17 . or Reduce Activity to Halt Need Defense to Mitigate Duty Operation and Maintenance Proper Information to Provide Duty and Entry Inspection Application of Permit Records Requirements Signatory Reporting of Noncompliance . 16 16 16 . CONFIDENTIALITY 4. 5. 6. 7. 8. 9. 10. . . . D. 3. . . . SEVERABILITY Conditions Termination 16 . C. . 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page EPA Draft Permit No. 3 of 19 22 24 30 32 PART the 40 147, TO INJECT AUTHORIZATION I. of Regulations Control Injection Pursuant to the Underground codified at Agency (EPA) Protection U. S. Environmental 144, 146, Parts Regulations, 124, of the Code of Federal Title and ENRON Oil & Gas Company P. O. Box 250 83113 Wyoming Big Piney, shut-in Formation gas a Wasatch will be which well water disposal well, II salt well to a Class 21-20B SWD (NBU 21-20B Buttes Unit SWD), known as the Natural (1037 from the north feet located in the NE 1/4 of the NE 1/4 20, of Section from the east line) line and 1033 feet Utah. County, in Uintah Range 20 East, Township 9 South, of ENRON produced of disposing Injection shall be for the purpose Buttes Natural Formations, River and Wasatch water from the Green Produced herein. with set forth conditions in accordance Unit, "H" sand. Formation into the Green River water will be injected the from within one (1) year is not converted If the well and shall be pluqqed permit, the well of this effective date Section A. 6. Part II, Condition to permit abandoned according is hereby This authorized to document serves serves activities and also Commencing Injection" 1. of Section-C. 144, All 146, and are regulations effective. becomes as authorization for as a permit requirements permit. this conditions convert are set to begin the well. forth in refer to Title herein forth Regulations Code of Federal that on the date are in effect set 147 of that the injection "Prior Part II, 40 to 124, Parts (CFR) and this permit and includes of 32 pages consists of a total This permit it is based Further, of Contents. listed in the Table items information and on other representations made by the permittee record. in the administrative contained all upon for are issued to inject and the authorization permit The terminated. unless of the well, life the operating five to (5) years every will by EPA at least be reviewed (a) is warranted. action under 40 CFR 144.36 whether determine enforcement of primary upon delegation expire will The permit Indian and Ouray to the Uintah for the UIC Progræm responsibility and authority, adequate has both unless that Agency Agency, permit. permit this as an Agency and enforce to adopt chooses, This permit Page EPA Draft Permit No. 4 of 32 Issued This this permit day shall of , 1992 . effective become . DRAFT * Max H. Water NOTE: The person the "Director" this throughout holding Dodson, Management Director Division to is referred title permit. this Page EPA Draft Permit No. as 5 of 32 PART A. WELL CONVERSION 1. submitted permit as CONDITIONS PERMIT REQUIREMENTS and Cementing. Casing with the application Appendix A, and shall cement Existing SPECIFIC II. between bonds details this into on the permittee. are as and casing conversion The proposed incorporated hereby are be the binding wellbore follows: (1) 9-5/8 inch diameter surface casing hole to a depth is casing Surface (KB). is set of 196 cemented inch a 12-1/4 kelly bushing to the surface. in feet inch hole to in a 7-7/8 KB. Total depth is 7025 feet KB. of a depth is bond log (CBL), (TOC), by a cement Top of cement cement this feet KB. However, by calculation, 1180 have been circulated to the surface. should (2) A 4-1/2 (3) Originally Formation inch set is longstring 7025 feet perforated the Wasatch permittee 6907 6909 6914 6916 feet, intervals 6113 6111 6130 feet, 6128 6592 6594 feet, feet, evaluation. natural for gas 6094 feet and 6092 feet, "H" sand River the Green Prior to perforating ENRON gas evaluation, for natural (3802 3825 feet) and a cast plug at 6200 feet, bridge set a retrievable at 5100 feet. plug iron bridge (CIBP) the - - - - - - - River "H" sand Green proposed several hundred of KB) is composed perforations (3802 3825 feet thick Similar and siltstone. limestone of impervious shale, feet below the proposed is present River Formation lithology Green "H" River shows the Green zone. A Compensated Densilog disposal interval occurs thick. The disposal (30) feet sand to be thirty of moderately below the base of the mapped interval 3,600 feet "swab The analyzed mg/l. to 10,000 i.e., 3,000 saline waters, for mg/1, content of 42,623 (TDS) dissolved solids sample" total for Exemption precludes an Aquifer disposal the proposed zone, River "H" sand. the Green The-confining zone above the - Specifications. A tubing and Packer (2-3/8) three-eighths diameter will be utilized. inches LOK-SET 4-1/2 packer will be set at an approximate inch above the than 100 feet which is less of 3750 feet, perforation (3802 feet). 2. Tubing of Permit No. and A depth top Page EPA Draft two 6 of 32 3. maintain Devices. Monitoring in operating good (a) on the a tap obtaining fluids; provide suction line representative one-half of for the purpose samples of the injection Pipe Iron inch Female valves, or globe isolated by plug (FIP) fittings, the tubing; wellhead on 1) at the and located: and annulus, and 2) on the tubing/casing inch Male of 1/2 positioned to allow attachment gauges; (MIP) Iron Pipe (c) of to the FIP fittings for allow to and tubing annulus the tubing/casing fluid injection and of the annulus monitoring due to extreme not be required shall pressures The freeze the gauges. temperatures that winter possession shall always have in his operator field the use of their for gauges calibrated and pressure injection tubing personnel to monitor calibrated pressure. The annulus tubing/casing at a to operate shall be designed gauges five approximately of deviation accuracy certified anticipated of the range throughout (5) percent, two (2), pressure (d) - Proposed Changes (1/2) attached gauges pressures; a non-resettable that recorder ninety-five of range is (95) injection and volume cumulative with flow meter for at least certified the throughout percent accuracy, allowed by the permit. rates Workovers. as Director, and The soon to permittee as possible, the permitted notice to the give advance alterations or additions physical planned shall well of the permitted alterations or workovers Major major A permit. in this conditions as set forth all any work performed, alteration/workover shall be considered or tubing. packer(s), affects casing, integrity of mechanical completion of any of (30) days within thirty injection to resuming and prior alterations, Section C. 2. with accordance A demonstration The logging, completion appropriate and (b) injection 4. shall operator The condition: shall be workover activities of records provide all shall permittee EPA within sixty data to test or other Appendix B contains of the activity. forms. reporting well Permit well. meet which performed and/or in workovers, (60) days of of the samples Page EPA Draft shall of any No. 7 of 32 to Prior Formation Testing. river "H" sand pore 5. injection, the determined by be the tubing/casing level; commencing pressure fluid the static and reporting integrity at a pressure for mechanical will annulus be tested test of the mechanical integrity Results 300 psig. at least on the reported will be procedures and the recompletion (MIT) 7520-12 Additional Appendix B). in Record (EPA Form Rework Well authorization to after within a six (6) month period testing step-rate determine (SRT) to test include a valid will inject pressure. fracture River "H" sand formation Green will Green measuring of the is not If the well from within (1) year one service disposal converted/completed for and will pluqqed be permit, well the date of this the effective Plan and Abandonment with the Plugging abandoned in accordance The extension. an permittee requests (Appendix unless the C), shall state and to the made Director, request shall be written The for in conversion/construction. the delay the reasons year. one (1) exceed may not under this section extension 6. B. of Conversion. Postponement CORRECTIVE ACTION Wasatch former and abandoned is one (1) plugged There NE/4 SW/4 Trail No. 2, the Ute Formation gas well, radius mile (1/4) a one-quarter within R20E, Section 20 T9S well. disposal salt water proposed (AOR) of the Area of Review Formation "H" River below the Green depth well has a total This is No. 2 Trail but the Ute 3825 (3802 disposal zone feet), - - - effectively source of action is C. plugged drinking required. and abandoned water (USDW) to preclude endangerment. any No underground corrective WELL OPERATION 1. to Prior until not commence (lb), as follows: (a) Iniection. Commencing has permittee the Disposal with complied may operations both (a) and logging conversion/construction is complete; have been requirements fulfilled, and/or testing a Well Rework has submitted and the permittee All (EPA Record (i) Form 7520-12 in B) Appendix or otherwise Director has inspected well disposal converted reviewed the newly the operator that the notified he has and with the conditions well is in compliance or the permit; The Page EPA Draft Permit No. 8 of of 32 (ii) The has Permittee not received notice from to inspect of his or her intent the Director well review the new disposal or otherwise the of the date within thirteen (1,3) days Record, the Well Rework Director has received in which case prior paragraph (a) above, and the is waived inspection or review permittee (b) (a) injection. has that the well demonstrates The permittee with 40 CFR integrity in accordance mechanical and has Section C.2., below, II, 146.8 and Part that such a from notice the Director received The permittee is satisfactory. demonstration prior to conducting EPA two (2) weeks shall notify of the EPA may this test so that a representative of the Results the test. to observe be present as soon as to the Director shall test be submitted days after that thirty (30) possible, but no later the demonstration. Mechanical 2. may commence Integrity. Method of Demonstrating of A demonstration Mechanical Integrity. of significant the absence must be and/or packer tubing, leaks in the casing, annulus a tubing/casing made by performing shall be for a minimum This test pressure test. of (1) minutes at: a pressure (45) of forty-five measured (psig) inch gauge per square 300 pounds or (2) a is shut-in; if the well at the surface, the between of 200 psig differential pressure if injection annulus, and the tubing/casing tubing The the test. during activities are continued with a nonshall be filled tubing/casing annulus liquid or the (either corrosive fluid a non-toxic twenty-four hours (24) liquid) at least injection values shall be Pressure of the test. in advance passes intervals. A well recorded at five-minute if there is less integrity test the mechanical in or increase decrease than a ten (10) percent period. (45) minute over the forty-five pressure - (b) of Mechanical of mechanical no intervals, integrity shall be made at regular in (5) years, frequently than once every five less otherwise unless 40 CFR 146.8, accordance with a The Director may require modified. integrity, as demonstration of mechanical Schedule Integrity. for Demonstration A demonstration Page EPA Draft Permit No. 9 of 32 Section II, described in Part life the permitted time during (c) Green at any well. fails Integrity. If the well of loss integrity, or a mechanical to demonstrate CFR 146.8 defined 40 by integrity as mechanical the permittee operation, evident becomes during with Part accordance Director in the shall notify permit. this Furthermore, Section E. 10. of III, and activities shall be terminated, injection until the shall not be resumed operations integrity actions to restore has taken permittee approval to resume to the well and EPA gives injection. Interval. "H" sand InjeÇtion Ga) (c), 1. of the of Mechanical Loss Iniection 3. Formation River 4. C. shall Injection interval 3802 be - 3825 limited feet to the KB. Limitytion. Pregsure shall measured at the surface, pressure, Injection determines the Director an amount that not exceed injection does not that to ensure is appropriate propagate existing fractures or new initiate to the zone adjacent in the confining fractures USWD. Ob) or limit may be increased pressure the that to ensure by the Director In (a) are fulfilled. in paragraph requirements the limit, an exact pressure order to determine test injection conduct a step-rate shall permittee serve that will well test(s) authorized or other of the pressure the fracture to determine procedures shall be prezone. Test injection will The Director approved by the Director. any increase to the permittee, specify in writing, upon pressure based to the injection or decrease parameters other and/or results the test Until operations. injection actual reflecting is made, the this demonstration such time that pressure, measured at the iniection initial ehgll not exceed 600 peig. surface, The exact decreased 5. Iniection of the number injected into further limit Volume barrels the Green that in no case II, shown in Part per day River Formation shall injection Section C. 4. on is no limitation There shall (BWPD) that be provided "H" sand, Limitation. of water of pressure exceed permit. this Page EPA Draft Permit No. that 10 of 32 are connection limited to those and gas oil natural with gas storage from gas with waste waters commingled and production, may be operations, of production part which are an integral plants waste as hazardous at the classified a waters those are unless those further limited to shall Flyide be time of injection. The owned or pperated by the permit¢ee. generated þy sourçqs of the sources of an annual listing shall provide permittee requirements in with the reporting in accordance fluids injected permit. Section D. 4. of this Part II, Iniection 6. Limitation. Fluid are which fluids Injection to brought operations, in the surface or conventional and the between the tubing Fluid. The annulus corrosion with treated a fresh water filled with shall be casing or other scavenger; and an oxygen inhibitor, a scale inhibitor, Director. the approved, in writing, by fluid as Annulgr 7. D.. Inieggion 1. measurements The permittee described in CFR Part AND REPORTING RECORDKEEPING, MONITORING, of the monitored be representative analytical utilize the applicable or 1 of 40 CFR 136.3, or in certain circumstances, approved by the EPA Administrator. Table 261, have been consist of: (a) and activity. methods Samples Program. Monitoring Well shall shall OF RESULTS of Analysis (i) the disposed Specific for Total Conductivity, whenever there disposed analysis within injection fluids. annually in Appendix by other III Monitoring fluids, of 40 that shall methods performed: Dissolved pH, Solids, Specific Gravity if however, from the common facility; from more than one injection is maintained then only one from each common facility, well for that is required analysis annual facility. (ii) (b) shall thirty a change the in be submitted of (30) days to any of source A comprehensive the water Director change in fluids. pressure observations and annulus volume. Observation Weekly is and of injection flow rate, pressure, and cumulative of each shall be recorded monthly. Page EPA Draft Permit No. 11 of 32 2) Information. Monitoring under required activity (a) Ob) this shall field place, exact date, measurements; The name The sampling (c) The exact (d) The date(s) (e) The name analyses; (f) The The the of any include: monitoring time sampling of the individual(s) or measurements; sampling of analytical results the analyses techniques personnel; and the take samples; performed; were who or performed to used individual(s) of such of who method(s) laboratory laboratory (ig) Records permit the performed or methods used by analyses. Recordkeeping. 3. (a) The (i) - permittee shall retain records concerning: injected of all and composition nature the after three (3) years fluids until which and abandonment of plugging completion with the out in accordance has been carried shown in Plan and Abandonment Plugging 40 CFR with Appendix C, and is consistent the 146.10. (ii) information, all monitoring calibration and maintenance including records all and all for recordings chart original strip instrumentation and continuous monitoring permit required by this reports copies of all from five (5) years of at least for a period measurement or report the date of the sample, life of the well. the operating throughout (b) continue shall permittee after the retention records (i) and (a) paragraphs (a) to the Director the records approval from the Director The such to retain in specified period he delivers (ii) unless written or obtains the records. to discard Page EPA Draft Permit No. 12 of 32 (c) all of Oil 4. (or originals) copies of ENRON the office maintain shall records at pertinent Big Piney, Company, & Gas Permittee The Reporting of whether Report, iniecting or not, Annual the results of monitoring the summarizing permit. D. 1. (a) and (b) of this Section of of all sources include listing also a identifying source by the the year during the or facility the field name(s), name(s), submit shall permittee The Results. Wyoming. an to the Director required by Part II, shall permittee injected the fluids either the well name(s). The from the cover the period year. of that December 31 through effective date from January cover the period shall Annual Reports Subsequent by shall be submitted Annual Reports December 31. through collection. data year following the 15 of following February and used which may be copied Form 7520-11 Appendix B contains Report. submit the Annual The E . first of permit Notice the notify the well. 2. plug Report of the shall 1. to PLUGGING AND ABANDONMENT 1. shall Annual and and Abandonment. of Pluqqing forty-five (45) days Director Plan. and Abandonment in the well as provided Pluqqing abandon Appendix Plan, Abandonment C. This The before shall and information permittee The the permittee abandonment Plugging incorporates plan by the a clarification and may contain the permittee in which the manner to change the right EPA. The EPA reserves its during is modified if the well be plugged the well will supplied by with EPA is not made consistent or if the well The integrity. and mechanical for construction the estimated to update the permittee Director may require upon shall be based Such estimates periodically. plugging cost incur would to plug the well according party which a third costs to the plan. permitted life requirements Cessation of Iniection 3. of two (2) years, of operations in accordance abandon the well permittee: unless the Plan, (a) has provided Ob) has demonstrated future; with to notice that shall permittee the plug and Plugging the the a cessation and After Activities. the and Director; well will Abandonment be in used the and Page EPA Draft Permit No. 13 of 32 (c) has that of that water drinking satisfactory or procedures, to ensure will be taken sources underground not endanger of temporary the period during actions described to the Director, will the well abandonment. Within (60) sixty Report. Pluqqing and Abandonment 4. submit a report shall the permittee plugging the well, days after shall be certified The report to the Director. on Form 7520-13 operation, the plugging who performed by the person as accurate that the (1) a statement of either: shall consist and the report or (2) where actual the plan; with in accordance was plugged well specifies the that differed from the plan, a statement plugging followed. procedutes different F. RESPONSIBILITY FINANCIAL of Demonstration 1. permittee responsibility injection is well Company has ENRON Oil & Gas that December 1991, 31, dated and approved by the EPA. (a) Ob) - 2. events has been plan. a Form 10-K, reviewed and own initiative may, upon his permittee of method the request to EPA, change upon written such Any responsibility. financial demonstrating A minor by the Director. change must be approved reflect any modification will be made to permit further without mechanisms, change in financial comment. for public opportunity Insolvency within Director submitted the The of sixty of In Institution. Financial demonstration an alternate under (b) or (c), approved demonstration of alternate the The Rgsponsibility. Financial financial continuous to maintain and abandon plug, to close, and resources and abandonment in the plugging as provided required financial financial days (60) event that been has responsibility an must submit acceptable to responsibility of the following either after the above, the permittee occur: institution files instrument (a) The (b) The authority or trustee, the issuing revoked. the trust issuing for bankruptcy; or or financial institution to act as institution the or is suspended instrument, of the trustee of the authority financial Page EPA Draft Permit No. 14 of 32 Cancellation 3. of Demonstration by Institution. Financial demonstration must submit an alternative permittee within acceptable to the Director, responsibility or financial the trust issuing after the institution intent 120-day to the EPA of their notice serves instrument. or financial the trust The financial days (60) instrument cancel Page EPA Draft Permit No. 15 of sixty to of 32 PART A. EFFECT III. GENERAL PERMIT CONDITIONS OF PERMIT disposal to engage in underground is allowed The permittee The permittee, permit. of this with the conditions accordance operate, shall not construct, permit, by this as authorized disposal or conduct any other plug, abandon, convert, maintain, containing of fluid the movement that allows in a manner activity if water, sources of drinking underground into any contaminant of any contaminant may cause a violation of that the presence 142 or Part 40 CFR, regulation under water primary drinking Any of persons. the health affect otherwise adversely permit or in this not authorized disposal underground activity Issuance is prohibited. or rule authorized otherwise by permit or any rights of any sort property permit does not convey of this to persons any injury nor does it authorize exclusive privilege; or any rights, private of other any invasion or property, Compliance law or regulations. of State or local infringement to a defense permit does not constitute with the terms of this of Section brought under the provisions action any enforcement law (SDWA) or any other Act Water 1431 of the Safe Drinking for any health or the environment protection of public governing or the endangerment to human health, imminent and substantial to the permittee's it serve as a shield nor does environment, with all UIC regulations. obligation to comply independent in B. PERMIT ACTIONS The Director or Termination. modify, from the permittee, or upon a request may, for cause with in accordance permit this or terminate revoke and reissue, the Also, and 144.40. 144.39, 144.12, 124.5, 40 CFR Sections for cause as specified is subject to minor modifications permit for a permit of a request 144.41. The filing in 40 CFR Section or the or termination and reissuance, revocation modification, on noncompliance or anticipated notification of planned changes applicability or the does not stay the part of the permittee condition. of any permit enforceability 1. Modification, Reissuance, cause or upon a may, for Conversions. The Director from a conversion of the well allow from the permittee, request non-Class II well. disposal well to a water Class II salt to II status from its Class well the disposal Requests to convert must be made in well, such as, a production II well, a non-Class until Conversion may not proceed a to the Director. writing of the proposed the conditions modification indicating permit Conditions of the is received by the permittee. conversion 2. Page EPA Draft Permit No. 16 of 32 to, but is not limited items as, demonstration of follow up rework, reporting and specific monitoring such may include modification well approval of the proposed and well integrity, mechanical conversion. the following This Transfers. 3. notice after except person of 40 CFR 144.38 requirements or modification, may require the name of permit to change requirements as may be other Operator 4. of address, fifteen least C. notice (15) transferrable to the Director The with. complied are to any and the not permit is is provided revocation Director the of and reissuance, and incorporate the permittee the SDWA. under necessary such change Upon the operator's of Address. Change office at EPA appropriate to the must be given effective date. to the days prior SEVERABILITY and if any are severable, permit provisions of this of of any provision permit or the application of this provision application the invalid, is held permit to any circumstance, this of and the remainder circumstances, to other of such provision thereby. not be affected shall this permit The D. CONFIDENTIALITY In accordance submitted information claimed any and 40 CFR 144.5, be may permit this to to must claim such submitter. Any by the words the stamping by of submission with confidential at the time as 40 CFR Part EPA pursuant 2 be asserted such information" on each page containing business "confidential EPA submission, time of the is made at If no claim information. further without public the available to may make the information of the claim will the validity is asserted, If a claim notice. 2 in 40 CFR Part the procedures with in accordance be assessed the for of confidentiality Claims Information). (Public be denied: will information following The - - name and address which Information absence water. or level of the permittee; with the deals contominants of and existence, in drinking Page EPA Draft Permit No. 17 of 32 GENERAL E. DUTIES AND REQUIREMENTS all with comply shall The permittee to Comply. and for the to the extent permit, except this permit. by an emergency is authorized such noncompliance duration and SDWA the violation of constitutes a noncompliance permit Any revocation permit termination, enforcement for action, grounds is be noncompliance may also Such or modification. and reissuance, Conservation Resource the under action enforcement for grounds Duty 1. conditions and of (RCRA) Act Recovery . Any Conditions. of Permit for Violations civil subject to is requirement permit a person the SDWA and under action enforcement and other fines, penalties, Any person RCRA. pursuant to the actions such to be subject may to conditions may be subject permit violates who willfully prosecution. criminal Penalties 2. who violates not that it activity this It not a Defense. Activity or Reduce action in an enforcement for a permittee the permitted or reduce to halt have been necessary would of the conditions with compliance to maintain in order Need 3. shall be to Halt a defense permit. 4. Duty steps reasonable environment to Mitigate. to minimize resulting from The or permittee correct noncompliance shall take all impact any adverse permit. with this on the shall The permittee and Maintenance. Operation and facilities all and maintain operate properly appurtenances) (and related and control of treatment to achieve or used by the pensittee are installed which operation Proper permit. of this the conditions with compliance adequate funding, performance, effective includes and maintenance laboratory and adequate and training, operator staffing adequate assurance quality appropriate including controls, and process or of back-up the operation requires provision This procedures. to systems only when necessary facilities or similar auxiliary permit. of this the conditions compliance with achieve 5. Proper times at all systems 6. furnish the The Information. to Provide Duty within a time specified, Director, to determine Director may request shall permittee any information whether cause exists the which this or terminating and reissuing, revoking for modifying, The with the permit. compliance permit, or to determine upon request, furnish to the Director, also shall permittee permit. to be kept by this required copies of records Page EPA Draft Permit No. 18 of 32 or Director, of and Inspection 7. credentials and representative, Da) documents other upon Enter regulated (c) as where premises permittee's is located or activity must be kept records where this permit; the or of 8. a or under records times, to and copy, at reasonable access the conditions that must be kept under this permit; Have times at reasonable (including practices, equipment), this under required Inspect or monitor, of assuring purpose authorized otherwise parameters at any Sample of Records the any of facilities, and control or regulated or operations and permit; for the times, at reasonable or as compliance permit by the SDWA any substances location. The Application. Permit any monitoring equipment (d) allow the presentation to: by law, upon the may be required facility conducted, conditions Ob) shall permittee The Entry. an authorized permittee or shall permit for a permit. this at any the required to complete data of all records submitted information and any supplemental maintain application (5) of five period may be period This from the effective years of by request extended of date Director the time. 9. information certified 10. Signatory requested according Requirements. Reporting of Noncompliance. (a) (lb) by to Anticipated 40 All the Director CFR 144.32. reports shall be Noncompliance. The notice to the Director advance give facility in the permitted changes in noncompliance which may result requirements. or other signed and shall permittee of any planned or activity permit with or of compliance Reports Schedules. Compliance reports on, or any progress noncompliance with, contained in any requirements and final interim shall be permit schedule of this compliance following days (30) than thirty no later submitted date. each schedule Page EPA Draft Permit No. 19 of 32 (c) Twenty-four (i) (ii) Hour Reporting. to the Director report shall permittee health which may endanger any noncompliance shall be Information or the environment. twenty-four hours (24) within provided orally of aware becomes permittee from the time the (303) EPA at telephoning by the circumstances 293-1436 or at business hours) normal (during 293-1788 other all reporting at (for (303) be shall information The following times). report: verbal the in included The (A) information or other that any contaminant endangerment to an undermay cause water. of drinking ground source (B) with a permit noncompliance of the or malfunction condition system which may cause fluid injection underground or between into migration water. of drinking sources Any monitoring which indicates Any A written within permittee stances. submission shall also be provided of the time the (5) days five of the circumaware becomes shall submission The written of the noncompliance of noncompliance, period and if the and dates times, exact including the not been corrected, has noncompliance to continue; time it is expected anticipated to reduce, taken or planned and steps of the recurrence prevent and eliminate, noncompliance. contain and its d) a description cause; the report shall The permittee Noncompliance. othernot noncompliance of instances other all reports at the time monitoring reported wise contain the shall reports The submitted. are 10. Section E. III, Part in listed information permit. this of (c) (ii) Other Page EPA Draft Permit No. 20 of 32 (e) becomes permittee were not submitted inforor incorrect application in a permit mation was submitted the permittee to the Director, or in any report facts or information such correct submit shall two (2) weeks of the time such information within known. becomes Other Information. the Where aware that any relevant application, in the permit facts Page EPA Draft Permit No. 21 of 32 APPENDIX A (CONVERSION DETAILS) Page EPA Draft Permit No. 22 of 32 PROPOSED WELL CONVERSION - DIAGRAM SCHEMATIC NATURAL BUTTES UNIT 21-20 B NENE, SECTION 20, T9S, R20E UINTAHCOUNTY,UTAH ELEVATIONS 3000# CASINGHEAO: 11' 11° 3000# x 6° 3000# TUBING HEAD: TREE:2 1/16'X 3000# MASTERVALVES GL: 4769 KB: 4785 O 9-5/8 36.0#, K-55 @ 19& . CE ENT TOP @ 1180 KB GREENRIVER(+3081) 2-3/0°, 4.7#, o 825. J-55 TUBING 'H' SANO NASATcCH (-425) 64Zg BUCK CANYON (-1639 W/7-7/8 BIT) TD: 7025' (ORILLED Page EPA Draft Permit No. 23 of 32 APPENDIX B (REPORTING FORMS) 1. EPA Form 7520- 2. EPA Form 7520-10: COMPLETION WELL 3. EPA Form 7520-11: ANNUAL DISPOSAL/INJECTION REPORT MONITORING EPA Form 7520 EPA Form 7520-13: 4 5. . APPLICATION 7: -12 : TO TRANSFER PERMIT FOR BRINE REPORT DISPOSAL WELL WELL REWORK RECORD PLUGGING RECORD Page EPA Draft Permit No. 24 of 32 Form Approved. OMB No. 2000-0042. Approval expires 9-30-86 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, DC 20460 oE PA APPUCATION NAME AND ADDRESSOF EXISTINGPERMITTEE TO TRANSFER PERMIT NAME AND ADDRESSOF SURFACE OWNER PEAMIT NUMBER COUNTY STATE LOCATEWELL AND OUTUNE UNIT ON SECTION PLAT - 640 ACRES SURFACE LOCATION DESCRIPTION N RANGE TOWNSHIP ¼ OF ¼ OF ¼ SECTION LOCATE WELL IN TWO DIRECTIONS FROM NEAREST UNES OF QUARTER SECTION AND DRILUNG UNIT lil lil Ill lll Su"•• Location and from (N/S) -ft. Line of quarter WELL ACTIVITY 1 .. I I l I I I I \ I I \ \ E O Class I O Class 11 OBrine Disposal O Enhanced Aecovery O Hydrocarbon Storage O Class III O Other section of quarter section WELL STATUS ft. from (E/W)-Line TYPE OF PERMIT O Individual O Operating 0 Modification/Conversion O Proposed 0 Area Number of Wells - Well Number Lease Name NAME AND ADDRESS OF NEW OPERATOR NAME(S) AND ADDRESS(ES) OF NEW OWNER(S) between the existing and new permittee to this application a written agreement specific date for transfer of permit responsibility, coverage, and liability between them. Attach a containing by the submission of surety bond, or The new permittee must show evidence of financial responsibility other adequate assurance, such as financial statements or other materials acceptable to the director. CERTIFICATION / certify under the penalty of law that / have personally examined and am familiar with the information submitted in this document and all attachments and that, based on my inquiry of those individuals immediately responsible for obtaining the information, I believe that the information is true, accurate, including and complete. l am aware that there are significant penalties for submitting false information, (Ref. 40 CFR 144.32) the possibility of fine and imprisonment. NAME ANO OFFICIAL TITLE(Please type or print) DATE SIGNED SIGNATURE EPAForm7520-7(2-Š4) Page EPA Draft Permit No. 25 of 32 UNITED STATES ENVIRONMENTALPROTECTION AGENCY WASHINGTON, DC 20460 GE PA COMPLETION REPORT FOR BRINE DISPOSAL, HYDROCARBON STORAGE, OR ENHANCED RECOVERY WELL NAME AND ADDRESS OF EXISTINGPERMITTEE Form Approved 0MB No. 2040-0042 Approvaiexpir..s-so.es NAMEAND ADORESSOF SURFACE OWNER STATE COUNTY PERMIT NUMBER LOCATEWELL ANO OUTUNE UNIT ON SECTION PLAT 640 ACRES - SURFACE LOCATION OESCRIPTION N ¼ OF ¼ OF ¼ SECTION TOWNSHIP RANGE LOCATE WELL IN TWODIRECTIONS FROMNEAREST UNES OF QUARTER SECTION AND DRILLING UNIT lil Ill Ill lil sure.c. Location and lii ft. from (E/MG WELL ACTIVITY Line of quarter section -...- Line of quarter section - TYPE OF PERMIT O Individual O ar.. Number of Wells Injection Intervat Average Feet Maximum Type of injection Fluid (Check the appropriate blocWI) Date Drilling Began O Pr..n O Other I Name of injection Zone Permeability of Injection 2one Porosity of injection Zone ~ Wt/Ft - Grade - New or Used Materiais and Amount Used A - Formation Well Number CEMENT Depth Sacks HOLE Class INJECTION ZONE STIMULATION Complete Attachments Feet Depth to Bottom of Lowermost Freshwater (Feet) Lease Name Date Well Completed Treated to w... CASING AND TUBING interval - Anticipated Daily injection Volume (Bbis) Anticipated Daily injection Pressure (PSI) Average Maximum O s.it w.t.« 0 BracMah Water O WquidHydrocarbon 00 Size Estimated Fracture Pressure of injection zon. i ili Date Orilling Completed ft. from (N/S) O aren.oi...... O Enhanced Recovery O Hydrocarbon Starage E .. ......... Depth Bit Diameter WIRE LINE LOGS LIST EACH TYPE Log Types Logged Intervals E listed on the reverse. CERTIFICATION I certify under the penalty of law that I have persons//y examined and am familiar with the information submitted in this document and aH attachments and that, based on my inquiry of those individuals immediately responsible for obtaining the information, I believe that the information is true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment. (Ref. 40 CFR 144.32). NAME AND OFFICIAL TITLE(Please type or print) DATE SIGNED Page 26 of Yom 2040-0042. Expires 9-30-93 ¿TATES ENVIRONMENTALPROTECTION AGENCY ASHINGTON. DC 20480 UND ANNUAL DISPOSAL/INJECTION = *B No. Approved. WELL MONITORING MÃMEFANEAODRESS.0F EXIST1NGPERMITTEE REPORT NAME ANO ADDRESS OF SURFACE OWNER STATE COUNTY PERMIT NUMBER LOCATESMELLANO QUTUNEUNIT ON SECTIONi PLAT 640 ACRES - SURFACE LOCATION DESCRIPTION 4 OF ¼ OF ¼ SECTION TOWNSHIR AANGE LOCATE WELL IN TWO DIRECTIONS FROM NEAREST LINES OF QUARTER SECTION ANO DRILLING UNIT Location tt. from iE/wl WELL ACTIVITY O Brine Disposal Enhanced Recoverv Hydrocaroon Storage and E I \ \ - - Lease ill from (N/S).........Une -ft. of quarter section Une of quarter section TYPE OF PERMIT O Individual G Area Number of Wells Name - Well Number lil 5 TUBING INJECT10N MONTR YEAA AVERAGE PSIG PAESSURE MAXIMUM TOTAL VOLUME INJECTED PSIG BBL MCF - CASING ANNULUS PRESSURE MONfTORING) (OPTIONAL l MINIMUM PSIG MAxlMUM PSIG CERTIFICATION / certifyvnder the penalty of law that / have personally examined and am familiar with the information submitted in thisdocument and all attachments and that, based on my inquiry of those individuals immediately responsible for obtaining the information, / believe that the information is true, accurate, and complete. I am aware that there are significant penalties for submitting false information. including the possibility of fine and imprisonment. (Ref. 40 CFRR144-32). iAME AMikOFFICIAL T1TLE(Pteese type or prmri SIGNATURE DATE SIGNED Page 27 of Form App, -d. Approval expires 9-30-86 OMB No. 2000-0042. UNITEDSTATES ENVIRONMENTALPROTECTION AGENCY WASHINGTON, DC 20460 oE PA WELL REWORK RECORD NAME AND ADDRESS OF CONTRACTOR NAME AND ADDRESS OF PERMITTEE PERMIT NUMBER COUNTY STATE LOCATE WELL AND OUTLINE UNIT ON SECTION PLAT 640 ACRES - SUAFACE LOCATION DESCRIPTION ¼ OF ¼ OF N ¼ SECTION RANGE TOWNSHIP DRILLINGUNIT LOCATE WELL IN TWO DIRECTIONS FROM NEAREST LINES OF QUAATER SECTION AND I \ \ Surface Location and from (E/W) -Li -ft. WELL ACTIVITY Ill lli lil ll! Lease of quarter section Total Depth Before Rework le Total Depth After Rework O Hydrocarbon Storage Ill lil Date Rework Commenced Name WELL CASING RECORD WE LL CASI NG R ECO RD Size - Depth Sacks Number of Wells - Well Number Acid or Fracture Treatment Record To AFTER REWORK findicate Additions and Changes Only) Acid or Fracture Perforations Cement Casing O Area BEFORE REWORK From Type Sacks - Perforations Cement Depth Size TYPE OF PERMIT Date Rework Completed --- Casing section O Individual O Brine Disposal O Enhanced Recovery E of quarter from (N/S)-Line -ft. Type From Treatment Record To WIRE LINE LOGS, LIST EACH TYPE DESCRIBE REWORK OPERATIONS IN DETAIL USE ADDITIONAL SHEETS IF NECESSARY Log Types Logged Intervals CERTIFICATION familiar with the information / certify under the penalty of law that I have personaHy examined and am individuals submitted in this document and a// attachments and that, based on my inquiry of those accurate, is information true, for obtaining the information, I believe that the immediately responsible including false information, and complete. l am aware that there are significant penalties for submitting 144.32). CFR 40 the possibility of fine and imprisonment. (Ref. NAME AND OFFICIALTITLE(Please type or print) SIGNATURE DATE SIGNED Page 28 of OS No. 2000-0042 Approval expires 9-30-91 form Appr UNITED STATES ENviAONMENTAL PROTECTION EPA PLUGGI AGENCi EC RD NAME AND ACORESS OF CIM£NTING c:MPut NAMEANO ADDRESS OF PERMITTEE i I PERMIT NUMBER COUNTY STATE LOCATE WELL AND OUTLINEUNIT ON 640 ACRES PLAT SECTION -- DESCRIPTION SURFACE LOCATION ¼ OF TOWNSHIP RANGE ¾ SECTION ¼ OF SECTION AND UNIT QUARTER ORit.lJNG OF NEAAEST UNES OtBECTIONS FROM TWO LOCATE WELL IN N Sudace Location ft. from (N/Sl-Line ft. from (E/W) and - of quarter Line of auarter section section DeSCftbt in detail the meanos uses in TYPEOF AUTHORIZATION ll! Ill E | l \ I Ill III lit til snareauetag in unict! 1: into tne fluid was Dioced and ene note O individual Permit O Area Permit \ I caur , i Number of Wells - ill ll! Ill II Lease Name S CASINGAND TualNG RECORO AFTER PLUGGING WEi.L ACTIVITY acass: SIZE ttle menner TO SE PUT IN WELL(FT) TO BELEFTIN WELL(FT) WTitS/FT) NOLE SIZE C cass u C Mvorecaroon Q CLASS in Pt.UG #1 CEMENTING TO PLUG ANO ASANOON DATA: Simot Mole or Pine Desm to Bottom af Plug WHI Se Placed wnien in Íubmg or PLUG#2 PLUG #3 METNOD OF EMPLACEMENT OF CIMEeff PI,UGS OYn.a...n..m.m.a The Ourno sauer Moused Otner Sawage | PLUG #4 PLUG #5 i PLUG PLUG 26 47 (incnest Orill Pios tft.) Sacas of Cement To Be Used teach olug) Siserv volume To se Pumoed (cu. tt.) Caisusated Too of Plug (ft.) Measured Too of Plug (if tagged ft.) Siurry WT. (LD./Gal.) Tvue Coment or Otner Matertat iClass 1111 LIST ALL OPEN HOLE ANO/OR PERFORATED INTERVALS angnature of Cementer or Authorized To From To Fram Representative Signature of EPA Representative CERTIFICATlON under my of law that this document and all attachments were prepared personqualified that assure designed to a system with accordance supervision in or direction person of the my inquiry on Based information submitted. gather and evaluate the nel properly the for gathering responsible or persons who manage the system, or those persons directly the inforotation submitted is, to the best of my knowledge and belief, true, infonnation, false for submitting penalties and complete. I am aware that there are significant accurate, for knowing violations. of fine and imprinsonment including the possibility information, (REF. 40 CFR 122.22) I certify under penalty NAME AND OFFICIAL TITt.E/Please type or prmt; DATE SIGNED SIGNATURE Page on , , normit No. 29 of 32 APPENDIX C ( PLUGGING & ABANDONMENT PLAN) Page EPA Draft Permit No. 30 of 32 and Abandonment Pluqqing and Abandonment Plugging (Plug has been revised applicant, UIC regulations. with consistent Plan The Plug #1 - Plug #2 - submitted Plan, 1) by the No. Set a cement plug 3700 at 3750 feet. retainer Set Perforate surface annulus 9-5/8 - 200 feet and 200 feet inch in the 4-1/2 the 4-1/2 between plug a cement at inch surface Plan 3850 feet, by the EPA to make with the a cement to the surface. cement to squeeze and in the casing and the inch casing casing. Page EPA Draft Permit No. 31 of 32 ABANDONMENT SCHEMATIC PLUGGING AND 21-20B SWD NATURAL BUTTES UNIT NATURAL BUTTES UNIT21-20 8 NENE, SECTION 20, TSS, R20E UINTAHCOUNTY,UTAH ELEVATIONS GL: 4769' KB: 4785' Urn/s fu eg aiFORMATlONS - CEMENT TOP @ 1180' KB GREEN RIVER(+3081)4 WASATCH (-425) 2 / cHAPITAWELLS (-990 BRIDGEPLUG@ 620(y 6 30 ) UCK CANYON (-1639 4 2 W/7-7/8° BIT) TD: 7025 (DRILLED Page EPA Draft Permit No. 32 of 32 WELL APPLICATION INJECTION BUMMARY REVIEW section Location: If township 20 #:43-047-30359 API NATURAL Field: UIC Logs Casing 20 by Log: the ? N_A Board INDIAN in Wells YES recov. enhanced disp.X_ EAST AOR: YES Country: 12P,3PAr1TA YES TO BE RUN AT CONVERSION Injection Fluid: H20 Geologic LIMESTON Information: CONFINING Analyses of YES Fluid: Information: Gradient ESTIMATED Affidavit of to Aquifers of Moderately Confining Interval: Reviewer: D. JARVIS H INJECTION ZONE, SHALE AND BEDS Injection Notice RIVER GREEN Fracture Pressure:1680 Base range SUFFICIENT Test: Depth SOUTH Ownership: Bond YES Integrity Water 21-20B Indian Plat: Program: Fresh BUTTES Unit: BUTTES Available: NATURAL approved been Surface NO 1: Form project FEDERAL Type: Lease has 09 Type: Well recovery enhanced Well: AND GAS ENRON OIL Applicant: YES Compat. in Area: NO Parting YES Owners: YES SUFACE Saline GREEN Fluid: Formation RIVER ALLUVIUM UINTA 800 Water: SHALES Date: AND UPPER AND LIMES 07-30-92 INTO GREEN RIVER H DISPOSAL PROPOSED Comments & Recommendation ZONES IN WELLS IN PRODUCING ABOVE TO BE ZONE APPEARS SAND, THIS REVIEWED AND BEING IS AND COUNTRY INDIAN WELL IS IN AREA OF REVIEW, BY EPA PERMITTED UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT FORM 3160-5 (December 1989) FORM MPROVED Budget Bureau No. 1004-0135 Ex¢resSeptember30,1990 5. SUNDRY NOTICE AND REPORTS ON WELLS Do not use this form for proposals Use "APPLICATION to drill or to deepen or reentry to a diferent FOR PERMIT for such proposals SUBMIT IN TRIPLICATE Lease Designation and Serial No. U 0144869 6. If Indian, Allottee or Tribe Name reservoir. UTE TRIBAL SURFACE --" 7. If Unit or C.A., Agreement Designation 1. Type of Well Oil Gas Well Well NATURAL BUTTES UNIT Other 8. Well Name and No. SEP2 1 1992 2. Name of Operator ENRON OLL & GAS COMPANY and Telephone 3. Address No. P.O. BOX 250, BIG PINEY, WY 83113 4. Location of Well (Footage, 1037' FNL SECTION20, - Sec., T., R., M., or Survey 1033' FEL T9S, R20E (307) NATURAL BUTIES DIVISION OF 276¾W &WMNG 9. API Well No. 4; Description) _og7-sossy 10. Field and Pool or Exploratory TYPE BOX(s) (NF/NE) TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER OF SUBMISSION REPORT ABANDONMENT CHANGE OP PLANS RECOMPLETION NEW CONSTRUCTION NON-ROUTINE FRACTURING WATER SHUT-OFF PLUGGING BACK CASING REPAIR FINAL UTAII DATA TYPE OF ACTION NOTICE OF INTENT SUBSEQUENT Area NATURAL BUTrBS/WASATCH 11. County or Parrish, State UINTAH, 12. CHECK APPROPRIATE UNIT21-20B ABANDONMENT NOTICE ALTERING CASING X CONVERSION TD INJECTION OTHER Report resmits of mmhiple completion om WeR Campistions or Recompletion Report and Log Porm.) 13. Dessibe Proposed or Completed Opensions (Clearly stain aB pertiment details and gin pertiment dates, inciading estimated date of starting any proposed work if weH is directiomaBy driBed gim subsesface locations and mensared and true wrtical depths for aB markers and somes partiment to this work). (Note: Enron Oil & Gas Company converted the subject well from shut-in gas well to water disposal well as follows: Set CIBP @ 5100' KB. Perforated the Green River "H" sand @ 3802-25' w/2 SPF. Stimulated with 3,500 gals 15% HCL and 2,000# 16/30 sand. Ran 4-1/2" Baker Model "D" packer on 2-3/8" tubing and set @ 3764' KB with 11,000# tension. Ran static BHP survey: 170 hrs. SIBHP @ 3815' KB, 1638 psig, steady. SITP 230 psig. Casing/tubing annulus pressure tested to 650 psig. Held steady 50 minutes. 6. Mechanical Integrity Test and Step Rate Test is scheduled to be witnessed by the EPA on September 22, 1992. 1. 2. 3. 4. 5. 14 hereby certify that th foregois 178 LE Regulatory Analyst DATE (Thh space for Federal or State offles use) APPROVED CONDITIONS Title United 18 BY OF APPROVAL, TITI.E U.S.C. Sectios 1001, makes it a crime for any persom knowingly and willfally to make to any depart-sat any falso, fictitions or frandsleat statements or representatious as to any matter withis its States DATE IP ANY: or agency of the 9-17-92 ENRON Oil & Gas Company P.O. Box 250 Big Piney, Wyoming September Mr. U.S. Gustav Jr., P.E. Protection Stolz, Environmental Place Denver 999 18th Denver, Record Buttes Please and Unit If Schaefer 1992 Agency RE: Mr. 17, Suite 500 80202-2405 Street, Colorado Dear (307) 276-3331 83113 UNDERGROUND INJECTION CONTROL COMPLETION REPORTS NATURAL BUTTES UNIT 21-208 NE/NE, SEC. 20, T9S, R20E UINTAH, UTAH Stolz: find attached, the Completion U.S. Department of Interior 21-20B SWD well. additional of this information office. is Report, 3160-5 Form required, Well for please Rework Natural contact Jim Sincerely, C.C. Parsons District Manager kc Attachments cc: State of Utah Division of Vernal District BLM Office D. Weaver J. Tigner 2043 Office Vernal File - Oil, Gas, & Mining - - SEP2 1 !!92 OMSION OF OILGAS& MINING Part of the Enron Group of Energy ENRON Oil & Gas Company P.O. Box 250 Big Piney, Wyoming January Mr. Chuck Williams U.S. Environmental Protection 8WM-DW Region VIII Suite 999 18th Street, 500 80202-2466 Colorado Denver, 83113 25, 276-3331 (307) 1993 Agency - RE: Dear Mr. If WELL Williams: Please find attached, and water Monitoring analysis 20B SWD well. Schaefer ANNUAL DISPOSAL/INJECTION MONITORING REPORT NATURAL BUTTES UNIT 21-20B NE/NE, SEC. R20E 20, T9S, UINTAH, UTAH additional of this information office. the Annual reports is Disposal/Injection for Natural required, Buttes contact please Well Unit 21- Jim Sincerely, C.C. Parsons District Manager kc Attachments cc: State of Utah Division of Vernal District Office BLM D. Weaver 2043 J. Tigner Office Vernal File - Oil, Gas, & Mining - - OILGAS& MINING Part of the Enron Group of Energy ANNUAL DISPoSAL/lNJE L MONITr'"lNG NERMME- ME ANO GRESS 3F i.I.SING A ENRON OÏL & GAS P.O. BOX 250 "YO'IÏNE 811 PINEY .:CA'I St.TCN wta a'ai MAMEANO ADDRésS °311 ¿TATE atmMIT I :ESCA:F"CN NE.ca .or .:CATE NEtSEC-CN LAEC°CNS FRCM MO WEi....N WMGiA ' 'IT2623-03709 UÏNTAH NE 2n-owess,9S NEAAEST -NES OF QUARTER ,,,4,2E SEC 'ON ANo ;RI NG »NJ Surface .acaneW'• 10 33 ene 'emm IN/E--.ne EN •nsm -•• NEu of osaner section et ..ee ra tioivicual mi Lasse Narne •KJEC••tcN awERAGl ÞSIG INJECTING 11- seenen -YPE CF PERMIT age \ :uar••« ACTNITY BrtrieOssoasal NELL STARTE :wNga .aterr UTAE SWMACE -CCAT10N vcNT REPORT 3 - -5,aa act CO'IPANY ANO CUT.NE UNIT ON 640 ACNEs ' OF L Nu or - À of Wens NATFRAL BUTTER UNIT won " atSSURE ':TAL MARIMUM PSIG VOLWME INJECTED ist. MCF 21-20B Numour BING - CASINGANNULug iCPTIONAL MsNIMUM PWESSWAg MONfTOntNGl ' PSIG *SC MAXIMUM 3-92 NOV. 1992 464 psig 490 psig 2151 BBL NA DEC. 1992 464 psig 490 psig 3736 BBL NA CERTIFICATION I certify under the genettyof law rnst I have norsonally exammea and am familiar worn the information suomstree and all attachments and that. Dessa on my mourry at those Indivlauais re500DS10|t immeC/BitiY ross document abraining the information. I believe that the entormation signrficant genalties for suomrrring falso information. CFR 144 32). LME ano GFiiC.A TJ.?'oeneevoserarents is ana comolete. I am aware tnar rnere are /Rei < oossioliity at fine ana imansanment. true. accurate. inctuaing :ne SiGNAfbaE LAli 5.Chi: JANUARY •¾ Norfu 7520-11 '2-841 o f:' 95, page EPA Final Peni: No. 1993 " 2 1-21-93 SENT SY: XEROX e ecopier 7019 5:2:a VERNALUTAH- , ENRON0&G::. 1 3 i WATER ANALYSIS REPORT Company Address Lease Well Sample Pt. OIL & GAS ENRON : : : : 21-208 : INJECTION Date Date Sampled Analysis No. 1. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 12-14-92 : 1 SWD PUMP DISCH ANALYSIS 2. 12-15-92 : : mg|L * meq/L 7.5 0.0 pH H28 Specific Gravity Total Dissolved solids 1.210 35188.9 - Bolids Oxygen Suspended Dissolved Dissolved CO2 Oil In Water Phenolphthalain orange Methyl Bicarbonate Chloride Sulfate (Caco3) Alkalinity Alkalinity (Cac03) HCO3 C1 ' 804 Ca Mg Na Calcium Magnesium Sodium (calculated) Iron Barium Strontium Hardness Total Fe Ba Sr HCO3 172.0 19566.0 Cl 1925.0 440.0 109.6 2.8 551.9 40.1 SO4 Ca Mg 12963.3 13.0 0.0 0.0 Na 22.0 9.0 563.9 1550.0 (CaCO3) PROBABLE MINERAL COMPOSITION equivalente *milli per Liter +------+ Compound +------+ 22 9 <----- *Ca |-------> ------ *Mg -----> *HCO3 564 *Na -----> +------+ saturation CaCO3 CaSO4 BaSO4 Values * 2H20 3 ------[ *so4 <---------/ ------ 40j ------ *Cl Equiv wt x meq/L mg/L = ------------------------------------ 552 +------+ Dist. Water 20 13 mg/L mg|L 2090 2.4 mg|L C Ca(HCO3)2 CaSO4 CaCl2 Mg(HCO3)2 81.0 68.1 228 1302 9.0 543 55.5 73.2 Mgso4 60.2 MgCl2 NaHCO3 Na2SO4 47.6 84.0 NaC1 2.8 19.1 71.0 58.4 11.9 551.9 848 32255 REMARKS: Petrolite Oilfield Chemicals Group Respectfully MARC submitted, SCALE TENDENCY REPORT Company : Address Lease : : : Well sample Pt. : ENRON OIL & GAS Date Date Sampled Analysis No. Analyst 21-208 SWD INJECTION PUMP DISCH 12-15-92 : : : : 12-14-92 1 MARC RosE STABILITY INDEX CALCULATIONS Method) CaCO3 scaling Tendency (Stiff-Davis S.I. S.I. S.I. S.I. S.I. = 0.1 - 0.1 0.2 0.4 0.5 - - at at 68 deg. 77 deg. 104 deg. 140 deg. 176 deg. at at at F or F F F F or or or or 20 deg. 25 deg. C C deg. deg. C C deg. C 40 60 80 ****************************************************************** CALCIUM SULFATE SCALING TENDENCY CALCULATIONS (Skillman-McDonald-Stiff Method) Calcium S S S S S Petrolite oilfield = = 4188 4266 4406 at 4421 at at = 4292 at Chemicals 68 deg. 77 deg. at - - Sulfate 104 140 176 Group deg. deg. deg. F F F F F or or or or or 20 deg 25 deg 40 dag 60 deg 80 deg C C C C C Respectfully MARC submitted, ENRON Oil & Gas Company P.O. Box 250 Big Piney, Wyoming 25, January Williams Mr. Chuck Protection Environmental U.S. 8WM-DW VIII Region 500 Suite Street, 999 18th 80202-2466 Colorado Denver, 83113 - 276-3331 (307) 1993 Agency - Dear Mr. Williams: find attached, Please analysis and water Monitoring 20B SWD well. If Schaefer WELL ANNUAL DISPOSAL/INJECTION MONITORING REPORT NATURAL BUTTES UNIT 21-20B R20E NE/NE, SEC. 20, T9S, UINTAH, UTAH RE: the Annual reports is information additional of this Disposal/Injection for Natural required, please Buttes contact Well Unit 21- Jim office. Sincerely, Parsons C.C. Manager District kc Attachments cc: Division State of Utah District Vernal BLM D. Weaver 2043 J. Tigner al Office - - of Oil, Gas, & Mining Office - ILGAS& MINING Part of the Enron Group of Energy AMCANO AININUAL ut,wt r, a--.a « Oggg,g A ;; U.s?NG MONITr' ING REPORT AL/lNJt-U¡;ON WELL »Egumi NAMEAND AOCRESS F ' aci ' 2WNER ENRON OÏL & GAS CO'IPANY P.O. BOX 250 °3113 "YOMÏNC BIG PINEY :CA"¿ si:•:s wta ANO CLT-NE UNIT ON »•.A: o - UTAE scats NE ! 'IT2623-03708 UÏNTAH 56MACE -CCATION . :Esca:F"CN ce .CCATE RE;,_ NE 2n s sEC-en NE .ca TRO :.AEC ONS;aCM .N NE.AREST -his % -owess. CF QUARTEA Si ':N 20E AND gnicNG ..NIT Surfacs .acatioS'• 1033 ene "sm INJE ••wEN -•• Lasse Name MONr.. avt WAGEPSIG -saa WELL STARTED INJECTING DEC. 1992 ' 464 Psig section teenen -usr••r ingsviaual Area Numoer CIAL VCLUME MAXIMUM PSIG - of weals A well alNG INJECTED BBL 21-20B Numoer - CAs;NG Aussutus PatSSWRg ' iCPTIONAL MONfTORING) MCF wiNIMuM PStG waxtMW •¶,0 11-0.3-92 490 psig 464 psig NOV. 1992 guaner NATFRAL BUTTES UNIT ESSURE iMJEC,CN 2 2 storage sverocaroon et ..re 43nne ossoosa: 2 i.9nancea Recoverv . of -ne I . 490 psig i | 2151 BBL NA 3736 BBL NA I \ CERT1RCAT10N / certify under the penetty of law that I have personally exammea and am familiar wtra rne information suomittec tr f:and all arrachments and that. basea on my incurry this document of those malviauais immeciatelyresponstole the information. I believe that the information aðtaining is true. accurate. ana comoiste. I am aware that there are for suomrtring false miormation. significant genalties /Rel --O inctuaing :ne of fine ana imonsanment. CFR 144 32). .cossierlity sémenoGFACA :J.?•••se¢yonerarssws SiGiaATURE LATE5.GNã3 JANUARY 95, Pacte A Form7520-11'2-8" -PA Fi al per.i- No. 1993 2 SENT SY° XEROX e ecopier Company Address Lease Well Pt. Sample ENRON : Tula in ,a o.m. , Date Date OIL & GAS Sampled No. Analysis : : : : 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. - pH H28 Specific Gravity Dissolved Total Solids Suspended Oxygen Dissolved CO2 Dissolved Oil In Water Phenolphthalain Orange Bicarbonate Chloride Sulfate Calcium Methyl Magnesium 17. Iron Barium Strontium Hardness Total 19. 20. 1 : 7.5 0.0 solida 1.210 35188.9 - (CaCO3) Alkalinity Alkalinity (CaCO3) HCO3 C1 804 Ca ' Mg Na (calculated) Sodium meq/L * mg/L 15. 16. 18. 12-14-92 21-208 SWD INJECTION PUMP DISCH ANALYSIS 1. 12-15-92 : : Fe Ba Sr HCO3 172.0 19566.0 1925.0 440.0 Cl 804 2.8 551.9 40.1 22.0 9.0 Ca Mg 109.6 Na 12963.3 13.0 563.9 0.0 0.0 1550.0 (CaCO3) PROBABLE MINERAL COMPOSITION C-omp-ound Li-t-er equivalents *milli Equiv per +------+ +------+ 22 |-------> ------ 9 <----- *Ca *Mg -----> *HCO3 3 ------ 40 *so4 <---------/ ------ 564] *Na -----> ------ *Cl 552 +------+ +------+ Values Saturation CaCO3 CaSO4 BaSO4 20 Water Dist. C 13 mg/L * 2H2O 2090 2.4 wt X meq/L = mg|L ------------------------------------ mg/L mg/L 2.8 19.1 228 1302 9.0 543 47.6 84.0 71.0 11.9 58.4 551.9 848 32255 Ca(HCO3)2 CaSO4 CaCl2 Mg(HCO3)2 81.0 68.1 Mg504 60.2 MgCl2 NaHCO3 Na2SO4 NaC1 55.5 73.2 REMARKS: Petrolite Oilfield Chemicals Group Respectfully MARC submitted, SCALE TENDENCY Company : Address : : : Lease Well Sample Pt. : REPORT ENRON OIL & GAS Data : : 21-208 Date Sampled Analysis No. Analyst 12-15-92 12-14-92 : : MARC RosE SWD INJECTION PUMP DISCH 1 STABILITY INDEX CALCULATIONS Method) CaCO3 Scaling Tendency (Stiff-Davis S.I. = S.I. S.I. S.I. - S.I. - - - 0.1 0.1 0.2 0.4 0.5 at at at at at 68 deg. 77 deg. 104 deg. 140 dag. 176 deg. F or F or F or F or F or 20 deg. 25 deg. 40 deg. 60 deg. 80 deg. C C C C C ************************************************************** CALCIUM SULFATE SCALING TENDENCY CALCULATIONS (Skillman-McDonald-Stiff Method) Calcium S S S S S Petrolite oilfield = = = = 4188 4266 4406 4421 at at 4292 at Chemicals at at Sulfate 68 deg. 77 deg. 104 deg. 140 deg. 176 deg. Group F or F or F or F or F or 20 deg 25 deg 40 deg 60 deg 80 deg C C C C C Respectfully RARC submitted =WITED STATES ENVIRONMENTAL Form Appr CMB No. 2040-0042. Expires ( AGENCY 9f PROTECTION WASHINGTON, DC 20460 EPA ANNUAL DISPOSAL/INJECTION WELL MONITORING REPORT NAME AND ADDRESS OF EXISTING PERMITTEE NAME AND ADDRESS OF SURFACEOWNER ENRON OIL & GAS COMPANY P.O. BOX 250, BIG PINEY, WYOMING 831 3 SAME STATE LOCATE WELL AND OUTLINE UNIT ON - N MT 2623- 189( 8 UINTAH UTAR SECTION PLAT 640 ACREs PERMIT NUMI EID COUNTY 5. SURFACE IDCATION DESCRIFilON NE 1/4 OF NE 1/4 OF NE 1/4, SECTION 20 TOWNSHIP 98 RANGE 1 IDCATE WELL IN TWO DIRECTIONS FROM NEAREST LINES OF QUARTER SECilON AND DRILUNG UNIT SURFACE LOCATION 1037 A.from Nasth Une of quarter section and 1033 it from East Une of cyarter sedion. TYPE OF PERMIT WEli ACI1VITY E W I INDIVIDUAL BRINE DISPOSAL AREA ENHANCED RECOVERY O s LEASE NAME MONTH YEAR INJECTION PRESSURE MAK PSIG AVG PSIO NUMBER OF WELLS I HYDROCARBON STORAGE NATURAL BUTTES WELL NUMBER 21-20B TUBING CASING ANNULUSPRESSURE (OFITONAI MONITORING) ARL PS102|| MIX PSIG TOTAL VOLUME INJECTED BBL VCF - Jan-95 408 3,862 0 Feb-95 339 3,800 0 Mar-95 394 5,700 0 Apr-95 438 4,910 0 May-95 508 6,650 0 Jun-95 527 6352 0 Jul-95 418 6,348 0 Aug-95 334 6,410 0 Sep-95 393 6,080 0 Oct-95 451 3,770 0 Nov-95 503 6,210 0 Dec-95 338 6,260 0 CERTIFICATION I certify under the penalty of law that I have personally examined and an familiar with the information submitted in this document and all attachments and that, based on my inquiry of those individuals immediately responsible for obtaining the information, I believe that the information is true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment. (Ref. 40 CFR 144.32). NAME AND OFFICIAL TITLE (Please type or print) C.C. PARSONS DIVISION OPERATIONS SIGNATURE ATE SIGNED 2-8-95 - SENT BY: XEROX Telecopier 7017î 2-8-95 -- - ww voorna. vinsi 8:33AM Witiivil VERNALUTAH·+ VL>M VVe 2000 SOUIN 1800 EAST VERNAL,UTAH84078 Telephone (801) 789-4327 WATER ANALYSIS REPORT * Company: ENRON Address: Field/t.ease: SWD 21-20 B Report Por: GEOAGEMCBRtDE ca. oc. oc. Service Engineer: Ed Schwars Chemical Component Chloride (mg!) Sulfate (mgli) Carbonate (mg/I) Bicarbonate (mg/l) Calclum(mg/t) Magneslum (mg/l) lion (mg/l) 940758 Date Sampled: 2-2•-SS Date Received: 2-2-05 Date Reported· 2-6-95 i i 400 1210 0 384 408 Barium(mg/l) n/d n/d $$ 34 7533 7.0 0.38 1.010 SpecificGravity Sl@20C ( 68F) Sl@25C { 77F) Sl@acc ( seF) -0.94 -0.22 -0.11 Sl©40C (1 . 0.15 0.30 0.66 0.88 Sl@500 (122F) Sl@eoc (140F) Sig70c (1 Sl@80C (176?) Sl@900 (194F) 1.24 1.58 TOS (mg/1) Temperature (P) DissolvedCO2 (ppm) Dissolved H28 (ppm) Dissolvg 02 (ppm) Project #: SWO Strontium (mqll) Sodium (mg/I) pH lonic Strength 21041 70 n/d 2 IW ENRON OGG00,:#1/ l 1 ENRON Oil & Gas Company P.O. Box 260 Big Pine t' (307) 276-3331 CERTIFIED 8, February Mr. Thomas J. Pike, Chief U.S. Environmental Protection 8WM-DW/UIC-I Region VIII 999 18th Street, Suite 500 80202-2466 Denver, Colorado 1995 Agency - RE: Dear ANNUAL DISPOBAL/INJECTION Mr. WELLS MONITORING REPORT Pike: Please find the Annual attached, Disposal/Injection Well Monitoring and water analysis reports for the Natural Buttes Unit 21-20B SWD well in the NE/NE of Section 20, T9S, R20E, Uintah County, Utah and the Annual Disposal/Injection Well Monitoring 11-22 report for the Stagecoach Unit SWD well in the NE/SE of section 22, Tas, R21E, Uintah County, Utah, for 1994. If Schaefer additional at this information office. is required, please contact Jim Sincerely, C.C. Parsons Division Operations kc cc: State of Utah Division of BLM Vernal District Office D. Weaver J. Tigner 2014 Vernal Office File - Oil, - - Part of the Enron Group of Energy Gas & Mining Manager UTAH DIVISION OF OIL, GAS AND MINING EQUIPMENT INVENTORY ENRON Operator: Well Name: OIL & GAs NBU 21-20B Township:_as_ Section: Well Status: co- API Number:43-047-30359 County: Range:m Well head Dehydrator(s) N Y n VRU w BOiler(S) N Shed(s) Heater Treater(s) Y PUMPS: x Triplex Compressor Line Heater(s) Chemical Centrifugal Hydraulic Submersible LIFTMETHOD: Pumpjack BUTTES CENTRAL BATTERY: PRODUCTION LEASE EQUIPMENT: YES Y N Field:NATURAT. UTNTAH Gas: Well Type: Oil: WIW Fee: Indian: Federal:X Lease: State: N N Separator(s) Heated Separator Flowing GAS EQUlPMENT: x Sales Meter x Purchase Meter Gas Meters SIZE TANKS: NUMBER y X Oil Storage Tank(s) Water Tank(s) Power Water Tank Condensate Tank(s) BBLS 2-400 BBLS W/annwvns RARRET. BBLS BBLS Propane Tank REMARKS: TRIPLEX FT.OW TOTAT.TZER SHOWTNG Location central battery: Inspector: PUMP W/SHED DENNIS 5041013. Qtr/Qtr: INGRAM RUNNING AT 475 TS T.OCATTON Section: 20 PSI. FRNCED Township: 9s Date: HALLIBURTON WTTH GATRR. Range: 20E STATEOF UTAH FORM9 OF NATURAL RESOURCES DEPARTMENT . DIVISION OF OlL, GAS AND MINING SUNDRY NOTICES Do not use 1. this forrn for proposals 10 drill new wells, significantly deepen existing wells below current bollom-hole depth, reenter drill horizontal laterals. Use APPLICATION FOR PERMIT TO DRILLform for such proposals. wells, or GAS WELL IE INO!AN. Production Oil & Gas "A" Company PHONE NUMBER: cny Vernal East NAME: WELL NAMEand NUMBER: Exhibir Paso AND SERIAL NUMBER: ALLOTTEE OR TRIBE NAME: 9. API NUMBER: El 1200 8. 8. OTHER OF OPERATOR: MR Soilth LEASE DESIGNATION 7. UNIT or CA AGREEMENT to NAMEOF OPERATOR: 3.iŠ¾RESS 4. plugged TYPE OF WELL OIL WELL 2. AND REPORTS ON WELLS 5. 10. FIELD AND POOL, OR WILDCAT: 435-789-4433 STATEUtahziP84078 LOCATION OF WELL FOOTAGES AT SURFACE: QTR/QTR, SECTION, COUNTY: . RANGE. MERIDIAN: TOWNSHIP, STATE: UTAH CHECK APPROPRIATE n. BOXES TO INDICATENATURE OF NOTICE, REPORT, OR OTHER DATA TYPE OF SUBMISSION TYPE OF ACTION ACIDIZE NOTICE OF INTENT (Submit in Duplicate) Approximate data work will start: SUBSEQUENT REPORT (Submit Original Form Only) Date of work completion: DEEPEN FRACTURETREAT CASING REPAIR NEW CHANGE TO PREVlOUS PLANS OPERATOR CHANGE TUBING PLUG AND ABANDON CHANGE WELL NAME PLUG BACK WATER DISPOSAL CHANGE WELL STATUS PRODUCTION (START/RESUME) WATER SHUT-OFF RECLAMATION OTHER: COMMINGLE PRODUCING FORMATIONS CONVERT WELL TYPE 12. SIDETRACK TO REPAIR WELL CONSTRUCTION TEMPORARILYABANDON CHANGE TUBING REPAIR VENT OR FLARE OF WELLSITE RECOMPLETE DIFFERENT - Name Chanee FORMATION DESCRIBE PROPOSED OR COMPLETED OPERATIONS. Clearly show all pertinent details including dates, depths, volumes, etc. of As a result subsidary has of been the merger Paso El between Energy to El Paso changed Coastal The the Corporation, Production See Coastal Ohn NAME(PLEASEPRINT & Gas Exhibit "A" of and Coastal Company a wholly Oil effective owned & Gas Corporation March 9, 2001. Oil & Gas Corporation T TITLE Vice President DATE NAME (PLEASE PRIf ) El Paso John T duction Oil Gas er Coãþäñy TITLE SIGNATURE for name Oil SIGNATURE space Corporation # 400JUO708 Bond (This REPERFORATE CURRENT FORMATION ALTER CASING DATE ate use only C€ TES ident ' RE EIVED JUN 19 2001 (5/2000) (See Instructions on Reverse Side) DIVISION OF GAS AND OIL, STATE OF UTAH ~ Ulc FORM 5 DEPARTMENTOF NATURALRESOURCES • , DIVISION OF OIL, GAS AND MINING TRANSFER OF AUTHORITY TO INJECT API Number Well Name and Number EXHTETT"A" Location of Well Footage Field or Unit Name County : State QQ, Section, Township, Range: EFFECTIVE DATE OF TRANSFER: : Lease Designation and Number UTAH 03-09-01 CURRENT OPERATOR Company: Çoastal Address: 1368 South & Gas Oil Name: 1200 East Jo n T. EL znpr Signature: state UT city Vernal Phone: Corporation zip 84078 Title: 435-789-4433 Date: ....--- Vic side Pr á t ~/5 owned and a wholly Corporation between The Coastal Comments: As a result of the merger Corporation has Oil & Gas the name of Coastal Corporation, of El Paso Energy subsidary 2001. March 9, Oil & Gas Company effective to El Paso Production been changed See EXHIBIT "A" NEW OPERATOR Paso El Address: 1368 South & Gas Company 1200 East city Vernal Phone: Oil Production Company: state ohn . 1zner Signature UT zip 84078 Title: 435-789-4433 Comments: Name: Date: V ce re ident -/ -of NAME CHANGE Bond Number 400JUO708 (This space for State use only) Transfer approved by: Comments: Approval Date: 4 y4 , ,, RECEIVED JUN 19 2001 ""°) DIVISION OF OIL, GAS AND EXHIBIT "A" NAME CHANGE FROM COASTAL OIL & GAS CORPORATION TO EL PASO PRODUCTION OIL & GAS COMPANY API Well No. 43-013-30361-00-00 43-013-30370-00-00 43-013-30362-00-00 43-013-30337-00-00 43-013-30038-00-00 43-013-30371-00-00 43-013-30121-00-00 43-013-30391-00-00 43-013-30340-00-00 43-013-30289-00-00 43-013-30056-00-00 43-047-33597-00-00 43-047-32344-00-00 43-047-15880-00-00 43-047-31822-00-00 Well Name ALLRED 2-16A3 UTE TRIBAL 1-25A3 BIRCH 2-35AS G HANSON 2-4B3 SWD LAKEFORK 2-23B4 LINDSAY RUSSELL 2-3284 TEW 1-9B5 EHRICH 2-11B5 LDS CHURCH 2-2785 RHOADESMOON 1-36B5 UTE 1-14C6 NBU SWD 2-16 NBU 205 SOUTHMAN CANYON U 3 UTE 26-1 43-047-32784-00-00 \STIRRUP STATE 32-6 43-047-30359-00-00 NBU 21-20B 43-047-33449-00-00 OURAY SWD 1 43-047-31996-00-00 NBU 159 Well Status Active Well Producing Well Active Well Active Well Active Well Active Well Active Weil Active Well Active Well Shut_In Active Well Spudded ( Shut in Active Welf pleted) Active Well Active Well Approved permit (APD); not yet spudded Active Well Page 1 of Well Type Water Disposal Oil Well Water Disposal Water Disposal Water Disposal Water Disposal Water Disposal Water Disposal Water Disposal Oil Well Water Disposal Water Disposal Gas Weil Water Disposal Water Disposal Water Injection Water Disposal Water Disposal ater Disposal Location(T-R) Section 1S-3W 16 1S-3W 25 1S-5W 35 2S-3W 4 2S-4W 23 2S-4W 32 2S-5W 9 2S-5W 11 2S-5W 27 2S-5W 36 3S-6W 14 10S-21E 16 ;10S-22E 9 |10S-23E 15 4S-1E 26 16S-21E 9S-20E 20 9S-21E 1 |9S-21E ' State of Delaware PAGE Office of the Secretary of State I, HARRIET DELAWARE, SMITH WINDSOR, DO HEREBY CERTIFY COPY OF THE CERTIFICATE CORPORATION", CORPORATION" THIS OFFICE OF STATE THE ATTACHED IS ITS NAME FROM "COASTAL PASO PRODUCTION ON THE NINTH OIL OF THE STATE OIL OIL & GAS & GAS & GAS COMPANY", DAY OF MARCH, A.D. OF A TRUE AND CORRECT OF ANENDMENT OF "COASTAL CHANGING TO "EL SECRETARY 1 2001, FILED IN AT 11 O'CLOCK A.M. RECEIVED JUN 19 2001 DIVISION OF OIL, GAS AND MINING . 0610204 010162788 8100 Harriet Smith Windsor, Secretary of State AUTEENTICATION: DATE: 1061007 03/09/01 10:14 PAX 713 420 4099 CORP. @003/003 LAW DEPT. CERTIFICATE OF AMENDMENT OF CERTIFICATE OF INCORPORATION COASTAL OIL & GAS CORPORATION (the "Company"), a corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware, DOES HEREBY CERTIFY: FIRST: That the Board of Dioctors of the Company, by the unanimous written consent of its members, filed with the minutes of the Board, adopted a resolution proposing and declaring advisable the foHowing amendment to the Certificate of Incorporation of the Company: RESOLVED that it is deemed advisable that the Certificate of Incorporation of this Company be amended, and that said Certificate of Incorporation be so amended, by changing the Article thereof numbered "FIRST." so that, as amended, said Article shall be and read as follows: "FIRST. The name of the corporation is El Paso Production Oil & Gas Company." SECOND: That in lieu of a meeting and vote of stockholders, the stockholders entitled to vote have given unanimous written consent to said amendment in accordance with the provisions of Section 228 of the General Corporation Law of the State of Delaware. THIRD: That the aforesaid amendment was duly adopted in accordance with of Sections 242 and 228 of the General Corporation Law of the State of Delaware. the applicable provisions IN WITNESS WHEREOF, said COASTAL OIL & GAS CORPORATION has caused this certificate to be signed on its behalf by a Vice President and attested by an Assistant Secretary, this 9th day of March 2001. COASTAL OIL & GAS CORPORATION David L. Siddall Vice President Attest: M ar et E. Roark, Assistant Secretary gg = w JtJN 19 2001 DIVISIONOF OIL, GAS AND STATE OF DELAWARE SECRZTARY OF STATE OF CORPORATIONS DIVISION rzzzo 11:00 AN 03/09/2001 0610204 Ol0118394 - State of Delaware - I, HARRIET DELAWARE, SMITH WINDSOR, DO HEREBY CERTIFY CORPORATION", FILED A.D. 2001, OF STATE THAT THE SAID A CERTIFICATE NAME TO "EL PASO PRODUCTION MARCE, SECRETARY OF THE STATE OF "COASTAL OIL & GAS OF AMENDMENT, CHANGING OIL & GAS COMPANY", AT 11 O'CLOCK 1 PAGE Office of the Secretary of State ITS THE NINTH DAY OF A.M. RECEIVED JUN i 9 2001 OIL, • . 0610204 010202983 8320 Harriet Smith Windsor, Secutary AUTHENTICATION: DATE: DIVISION OF GAS AND MINING of State 1103213 EL PASO PRODUCTION CERTIFICATE OIL & GAS COMPANY OF INCUMBENCY I, Margaret E. Roark, do hereby certify that I am a duly elected, qualified and acting Assistant Secretary of EL PASO PRODUCTION Delaware corporation OIL & GAS COMPANY, a (the "Company"), and that, as such, have the custody of the corporate records and seal of said Company; and I do hereby further certify that the persons listed on the attached Exhibit A have been elected, qualified and are now acting in the capacities indicated, as of the date of this Certificate. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of El Paso Production Oil & Gas Company this 18th day of April 2001. M aret E. Roark, Assistant Secretary RECElVED JUN 1 9 2001 DIVISION OF OIL, GAS AND Division of Oil, Gas and Mining - ROUTING OPERATOR / 4-KASA 1. GLH 2. CDW 3. JLT CHANGE WORKSHEET 5-LP/ 6-FILE g; Enter date after each listed item is completed Designation of Agent Change of Operator (Well Sold) X Operator Name Change (Only) The operator of the well(s) listed below has changed, effective: FROM: Merger 3-09-2001 TO: ( New Operator): EL PASO PRODUCTION OIL & GAS COMPANY Address: 9 GREENWAY PLAZA STE 2721 RM 2975B (oldOperator): COASTAL OIL & GAS CORPORATION Address: 9 GREENWAY PLAZA STE 2721 HOUSTON, TX 77046-0995 1-(832)-676-4721 Phone: Account N1845 HOUSTON, TX 77046-0995 Phone: 1-(713)-418-4635 Account NO230 Unit: CA No. WELL(S) API NAME ALLRED 2-16A3 BIRCH 2-35A5 G HANSON 2-4B3 SWD LAKE FORK 2-23B4 LINDSAY RUSSELL 2-32B4 TEW 1-9B5 EHRICH 2-11B5 LDS CHURCH 2-27B5 UTE 1-14C6 SOUTHMAN CANYON U 3 (HORSESHOE BEND UNIT) STIRRUP STATE 32-6 (NATURAL BUTTES UNIT) NBU 21-20B (NATURAL BUTTES UNIT) NBU 159 OPERATOR NO 43-013-30361 43-013-30362 43-013-30337 43-013-30038 43-013-30371 43-013-30121 43-013-30391 43-013-30340 43-013-30056 43-047-15880 43-047-32784 43-047-30359 43-047-31996 ENTITY NO 99996 99996 99990 1970 99996 1675 99990 99990 12354 99990 12323 2900 2900 SEC TWN LEASE WELL WELL RNG 16-01S-03W 35-01S-05W 04-02S-03W 23-02S-04W 32-02S-04W 09-02S-05W 11-02S-05W 27-02S-05W 14-03S-06W 15-10S-23E 32-06S-21E 20-09S-20E 35-09S-21E TYPE FEE FEE FEE FEE FEE FEE FEE FEE INDIAN FEDERAL STATE FEDERAL FEDERAL TYPE WD WD WD WD WD WD WD WD WD WD WIW WD WD STATUS A A A A A A A A A A A A A CHANGES DOCUMENTATION from the FORMER operator on: 06/19/2001 1. (R649-8-10) Sundry or legal documentation was received 2. 3. 06/19/2001 (R649-8-10) Sundry or legal documentation was received from the NEW operator on: Database Corporations Division of The new company has been checked through the Department of Commerce, 4. Is the new operator registered in the State of Utah: YES Business Number: on: 06/21/2001 5. 6. If NO, the operator was contacted contacted N/A on: Federal and Indian Lease Wells: The BLM and or the BIA has approved the (merger, name change, N/A or operator change for all wells listed on Federal or Indian leases on: 7. Federal and Indian Units: The BLM or BIA has approved the successor of unit operator 8. Federal and Indian Communization for wells listed on: N/A Agreements ("CA"): The BLM or the BIA has approved the operator change for all wells listed involved in a CA on: 9. Underground N/A The Division has approved UIC Form 5, Transfer of Authority N/A for the water disposal well(s) listed on: Injection Control ("UIC") for the enhanced/secondary recovery unit/project to Inject, DATA ENTRY: 06/21/2001 1. Changes entered in the Oil and Gas Database 2. Changes have been entered on the Monthly Operator 3. Bond information entered in RBDMS on: 06/20/2001 4. Fee wells attached to bond in RBDMS on: 06/21/2001 on: Change Spread Sheet on: 06/21/2001 STATE BOND VERIFICATION: 1. 400JUO705 State well(s) covered by Bond No.: FEE WELLS - BOND VERIFICATION/LEASE 1. (R649-3-1) The NEW operator of any fee well(s) INTEREST OWNER NOTIFICATION: listed has furnished a bond: 2. The FORMER operator has requested a release of liability from their bond on: N/A The Division sent response by letter on: 400JUO708 COMPLETION OF OPERATOR CHANGE 3. (R649-2-10) The FORMER operator of the Fee wells has been contacted and informed by a letter from the Division COMPLETION OF OPERATOR CHANGE to notify all interest owners of this change on: of their responsibility FILMING: 1. All attachments to this form have been MICROFILMED on: ),, • FILING: 1. ORIGINALS/COPIES of all attachments pertaining to each individual well have been filled in each well file on: COMMENTS: Master list of all wells involved in operator change from Coastal Oil & Gas Corporation Production Oil and Gas Company shall be retained in the "Operator Change to El Paso United States Department of the Interior RECEIVED BUREAU OF LAND MANAGEMENT T2 2 2 2ÛÛ2 Utah State Office DIVISION OF OIL, GAS AND MINING P.O. Box 45155 Salt Lake City, UT 84145-0155 In Reply Refer To: 3106 UTU-25566 et al (UT-924) FEB 2 1 2002 NOTICE Westport Oil and Gas Company L.P. 410 Seventeenth Street, #2300 Denver Colorado 80215-7093 : Oil and Gas Name Change Recognized Acceptable evidence has been received in this office concerning the name change of Westport Oil and Gas Company, Inc. into Westport Oil and Gas Company, L.P. with Westport Oil and Gas Company, L.P. being the surviving entity. For our purposes, the name change is recognized effective December 31, 2001. The oil and gas lease files identified have been noted as to the name change. The exhibit was compiled from a list of leases obtained from our computer program. We have not abstracted the lease files to determine if the entities affected by this name change hold an interest in the leases identified nor have we attempted to identify leases where the entities are the operator on the ground maintaining no vested recorded title or operating rights interests. We will be notifying the Minerals Management Service and all applicable Bureau of Land Management offices of the change by a copy of this notice. If additional documentation for changes of operator are required by our Field Offices, you will be contacted by them. If you identify additional leases in which the entities maintain an interest, please contact this office and we will appropriately document those files with a copy of this Due to the name change, the name of the principallobligor on the bond is required to be changed from Westport Oil and Gas Company, Inc. to Westport Oil and Gas Company, L.P.. You may accomplish this either by consent of surety rider on the original bond or a rider to the original bond. The bonds are held in Colorado. UTU-03405 UTU-20895 UTU-25566 UTU-43156 UTU-49518 UTU-49519 UTU-49522 UTU-49523 obert Lo e Chi f, Bra c of Minerals cc: j dication Moab Field Office Vernal Field Office MMS, Reference Data Branch, MS3130, PO Box 5860, Denver CO 80217 State of Utah, DOGM, Attn: Jim Thompson (Ste. 1210), Box 145801, SLC UT 84114 Teresa Thompson (UT-922) Joe Incardine UNITED STATES GOVERNMENT memorandum Branch of Real Estate Services Uintah & Ouray Agency Date: 5 December, 2002 Reply to Annor Supervisory Petroleum Engineer Subject: Modification of Utah Division of Oil, Gas and Mining Regulations To: Director, Utah Division of Oil, Gas and Mining Division: John Baza We have been advised of changes occurring with the operation of your database for Change of Operator. You will be modifying your records to reflect Change of Operator once you have received all necessary documentation from the companies involved, and perhaps in advance of our Notice of Concurrence/Approval of Change of Operator where Indian leases are involved. We have no objection. With further comment to Rulemaking, I wish to comment concerning the provision of Exhibits for upcoming Hearings. I would like to see the Uintah & Ouray Agency, BIA, and the Ute Indian Tribe, Energy & Mineral Resources Department added to the list of those parties that receive advance Exhibits so as to allow us to have research time prior to Hearing dates. We will be able to provide a more informed recommendation to the Oil, Gas and Mining Board. It would be best if we would receive only those Exhibits that concern Indian lands, specifically on or adjacent to Indian lands. This may be a difficult situation to attain, as it is not always clear where 'on or adjacent' occurs. I am aware that you have gone to extra effort to correct this matter already, and I fully appreciate it. My request is intended only to allow the addition of Uintah & Ouray Agency and Ute Indian Tribe to the official listing. We appreciate you concern, and hope that these comments are timely enough for consideration in the revision process. CC: Minerals & Mining Section of RES Ute Energy & Mineral Resources Department: Executive Director FEB-21-2003FRI 12:44 Pli EL PASOPRODUCTION FAXNO. 4357817094 P. 03 UnitedStates Department of the Interior BUREAU OF INDIANAFFAIRS .-...a» Real Estate Services wasano D.c.2cuo FEB1 0 2003 CarrollA. Wilson Principal Landman Westport Oil and Gas Company, L.P. 1368South 1200Bast Vernal, Utah 84078 Dear Mr. Wilson: This is in response to yourrequest for approvalof RLI Insurance Company's Nationwide Oil and GasLeaseBondNo.RLBOOOS239 executed offective December 17,2002, ($150,000 coverage) with WestportOil andGas Company,L P., as principal. Thisbondis herebyapprovedas of the date of this correspondence and will be retained in the Bureau ofIndianAffairs'Divisionof Rea1EstateServices, 1849CStreet,NW,MS-4512-MIB, Washington, D.C.20240. All Bureauoil and gas regional offices andthe suretyarebeinginformedof thisaction. In cases where you have existing individual and/orcollectivebonds on file with one ormoreof our regionbl offices,you may now request those offices,directly, to terminatein lieu of coverage under this NationwideBond. Enclosed is a copy of the approvedbond for your files. If we may be of further assistance in this maner,please advise. Director,Officeof Trust Responsibilities STATE OF UTAH FORM 9 DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL, GAS AND MINING 5. LEASE DESIGNATION 6. IF INDIAN,ALLOTTEEOR TRIBE NAME SUNDRY NOTICES AND REPORTS ON WELLS Do not use 1 to drill new wells, significantly deepen existing wells below current bottom-hole depth, reenter drill horizontal laterais Use APPLICATION FOR PERMIT TO DRILL form for such proposals. this form for proposals TYPE OF WELL OIL WELL D GAS WELL AND SERIAL NUMBER: or CA AGREEMENT NAME: 7. UNIT plugged wells, or to 8. WELL NAMEand NUMBER: OTHER ,, Exhibit "A 2. NAMEOF OPERATOR: 9. API NUMBER: El Paso Production Oil & Gas Company 3. ADDRESS OF OPERATOR: PHONE NUMBER: 9 Greenway Plaza Houston TX 10. FIELDAND POOL, OR W1LDCAT: (832) 676-5933 77064-0995 , 4. LOCATIONOF WELL FOOTAGES AT SURFACE: COUNTY: QTR/QTR, SECTION, TOWNSHIP, RANGE, MER1DIAN: STATE: UTAH CHECK APPROPRIATE BOXES TO INDICATENATUREOF NOTICE, REPORT, OR OTHER DATA ii. TYPE OF ACTION TYPE OF SUBMISSION O O NOTICE OF INTENT (Submit in Duplicate) Approximate date work will start O O SUBSEQUENT REPORT ^CIDIZE DEEPEN REPERFORATE CURRENT FORMATION ALTER CASING FRACTURETREAT SIDETRACKTO REPAIR WELL CASING REPAIR NEW CONSTRUCTION TEMPORARILYABANDON CHANGE TO PREVIOUS PLANS OPERATOR CHANGE TUBINGREPAIR CHANGETUBING PLUG ANDABANDON VENTOR FLARE CHANGE WELLNAME PLUG BACK WATER DISPOSAL . (Submit Original Form Only) WATER SHUT-OFF (START/RESUME) CHANGE WELLSTATUS PRODUCTION COMMINGLEPRODUCING FORMATIONS RECLAMATION coNVERT RECOMPLETE DIFFERENT Date of work completion: 12. DESCRIBE PROPOSED OR COMPLETED WELL TYPE OF - WELL SITE OTHER: FORMATION OPERATIONS. Clearly show all pertinent details including dates, depths, volumes, etc. Operator change to Westport Oil and Gas Company, L.P., 1670 Broadway, Suite 2800, Denver, CO. 80202-4800, effective December 17, 2002. BOND# State NAMF IPI FASF Bond Bond No. No. RLBOOOS236 RLBOOO5238 RECElVED DUCTION OIL & GAS COMPANY EL PASO Jon R Surety Fee FEB2 8 2003 sen, Attorney-in-Fact WESTPORT OIL AND GAS COMPANY,L.P. David R. Dix PRINT) TITLE DATE SIGNATURE (This space for State use only) (5/2000) (See instruchons on Reverse Agent and Attorney-in-Fact UIVISION OF OIL, GAS AND MINING TnANSFER OF AUTHORITY TO INJECT Well Name and Numoer Location of Wet! Footage API Number EXNTETT "A" Field or Unit Name County : QQ. Section. Township, Range: EFFECTIVE DATE OF TRANSFER: CURRENT State 12-17-0 : : Lease Designation and Numoer UTAH 2 OPERATOR JON R. NELSyy EL PASO PRODUCTION OIL & GAS COMPANYName: Company: signature: 1368 SOUTH 1200 EAST Address: citv VFRNAL state 435-789-4433 Phone: UT zio 84078 ORNEY-IN-FACT Title: 12-17-02 Date: - Comments: NEW OPERATOR Company: 1, Address: ply i gyp p 1670 BROADWAY SUITE 2800 Tp , citv DENVER 109-575-0177 Phone: state CO zio 80202-4800 DAVTD F Name: signature: Title: AGENT ATTORNEY- -FACT , 12-17-02 Date: Comments: (This sprace ferrap eu Approval Comments DY Oate: EXHIBIT "A" TRANSFER OF AUTHORITY TO INJECT STATE OF UTAH . WELL NAME API FOOTAGE DEPART OF NATURAL RESOURCES DIVISION OF OIL, GAS AND MINING COUNTY QUARTER QUARTER LOCATION SECTION TOWNSHIP RANGE STATE FIELD OF UNIT NAME SOUTHMAN CANYON U 3 4304715880 2180 FSL 400 FEL UINTAH NE/4NE/4SE/4 15 10S 23E UTAH SOUTHMAN CANYON NBU 241-20B 4304730359 1037 FNL 1033 FEL UINTAH SWlWNE/4NE/4 20 09S 20E UTAH NATURALBUTTES NBU 159 4304731996 1958 FSL 1945 FWL UINTAH SWl4NEl4SWl4 35 09S 21E UTAH NATURAL BUTTES 4304732784 850 FNL 800 FEL UINTAH NE/4NE/4 32 06S 21E UTAH HORSESHOE OURAY SWD 1 4304733449 561 FNL 899 FEL UINTAH NE/4NE/4 01 09S 21 E UTAH NATURAL BUTTES NBU SWD 2-16 4304733597 2486 FSL 1122 FEL UINTAH NW/4NE/4SE/4 16 10S 21E UTAH NATURAL BUTTES STRRUP ST 32-6 BEND Division of Oil, Gas and Mining OPERATOR ROUTING 1. GLH CHANGE WORKSHEET 3. FILE X Change of Operator Designation of Agent/Operator (Well Sold) Merger Operator Name Change The operator of the well(s) listed below has changed, effective: 12-17-02 FROM: (Old Operator): TO: ( New Operator): EL PASO PRODUCTION OIL & GAS COMPANY Address: 9 GREENWAY PLAZA WESTPORT OIL & GAS COMPANY LP Address: PO BOX 1148 HOUSTON, TX 77064-0995 VERNAL, UT 84078 Phone: 1-(435)-781-7023 Phone: 1-(832)-676-5933 Account No. N1845 Account No. N2115 Unit: CA No. WELL(S) SEC TWN NAME NBU 159 STIRRUP STATE 32-6 RNG NO 43-047-31996 43-047-32784 20-09S-20E 43-047-30359 01-09S-21E 43-047-33449 16-10S-21E 43-047-33597 15-10S-23E 43-047-15880 2900 12323 35-09S-21E 32-06S-21E NBU 21-20B OURAY SWD 1 NBU SWD 2-16 //4 SOUTHMAN CANYON 3 OPERATOR ENTITY API NO 2900 13274 13196 99990 LEASE TYPE FEDERAL STATE FEDERAL FEE WELL TYPE SWD SWD SWD STATE SWD SWD FEDERAL SWD WELL STATUS A A A I PA A CHANGES DOCUMENTATION Enter date after each listed item is completed 1. (R649-8-10) Sundry or legal documentation was received from the FORMER operator on: 2. (R649-8-10) Sundry or legal documentation was received from the NEW operator 3. The new company 4. Is the new operator registered 5. lf NO. the operator was contacted contacted has been checked through the Department in the State of Utah: of Commerce, YES on: 02/28/2003 03/04/2003 Division of Corporations Business Number: Database 1355743-0181 on: 03/06/2003 6. (R649-9-2)Waste 7. 8. Management Plan has been received on: IN PLACE Federal and Indian Lease Wells: The BLM and or the BIA or operator change for all wells listed on Federal or Indian leases on: has approved the merger, name change, 12/31/2003 Federal and Indian Units: The BLM or BIA has approved the successor of unit operator for wells listed on: 9. Federal and Indian Communization Agreements ("CA"): The BLM or BIA has approved the operator for all wells listed within a CA on: 10. Underground N/A N/A Injection Control ("UIC") for the enhanced/secondary The Division has approved UIC Form 5, Transfer of Authority recovery unit/project for the water disposal well(s) listed on: 03/06/2003 to Inject, DATA ENTRY: 1. Changes entered in the Oil and Gas Database 2. Changes have been entered on the Monthly Operator Change Spread Sheet on: 3. Bond information entered in RBDMS on: N/A 4. Fee wells attached to bond in RBDMS on: N/A on: 03/07/2003 03/07/2003 STATE WELL(S) BOND VERIFICATION: 1. State well(s) covered by Bond Number: RLB 0005236 FEDERAL WELL(S) BOND VERIFICATION: 1. Federal well(s) covered by Bond Number: 158626364 INDIAN WELL(S) BOND VERIFICATION: 1. Indian well(s) covered by Bond Number: RLB 0005239 FEE WELL(S) BOND VERIFICATION: 1. (R649-3-1) The NEW operator of any fee well(s) listed covered by Bond Number 2. The FORMER operator has requested a release of liability from their bond on: The Division sent response by letter on: N/A LEASE INTEREST RLB 0005238 N/A OWNER NOTIFICATION: 3. (R649-2-10) The FORMER operator of the fee wells has been contacted of their responsibility to notify all interest owners of this change on: and informed by a letter from the Division N/A COMMENTS: COMPLETE LIST OF WELLS INVOLVING OPERATOR CHANGE MAY BE FOUND IN THE OPERATOR CHANGE ROUTING 1. DJJ Division of Oil, Gas and Mining OPERATOR CHANGE WORKSHEET X Change of Operator Operator Name Change/Merger 1/6/2006 (Well Sold) The operator of the well(s) listed below has changed, effective: FROM: (oldoperator): N2115-Westport Oil & Gas Co., LP 1368 South 1200 East Vernal, UT 84078 TO: ( New Operator): N2995-Kerr-McGee Oil & Gas Onshore, LP 1368 South 1200 East Vernal, UT 84078 Phone: 1-(435) 781-7024 Phone: 1-(435) 781-7024 CA No. WELL NAME Unit: SEC TWN RNG API NO OPERATOR ENTITY NO LEASE TYPE The new company was checked on the Department of Commerce, Division of Corporations Is the new operator registered in the State of Utah: (R649-9-2)Waste 5a. Management Plan has been received on: 4. YES Business Number: n/a 5c. Reports current for Production/Disposition ok 5/10/2006 3/7/2006 Database on: 1355743-0181 & Sundries on: 3 LA wells & all PA wells transferred Federal and Indian Lease Wells: The BLM and or the BIA has approved the merger, name change, or operator 7. 5/10/2006 IN PLACE 5b. Inspections of LA PA state/fee well sites complete on: 6. change for all wells listed on Federal or Indian leases on: BLM 3/27/2006 BIA not yet Federal and Indian Units: The BLM or BIA has approved the successor of unit operator for wells listed on: Federal and Indian Communization 9. n/a The BLM or BIA has approved the operator for all wells listed within a CA on: has UIC 5, Transfer The Division approved Form Underground Injection Control ("UIC") Inject, for the enhanced/secondary Agreements 3/27/2006 8. ("CA"): recovery unit/project for the water disposal well(s) listed on: of Authority 12/15/2006 DATA ENTRY: 1. 2. 3. 4. 5. 6. WELL STATUS CHANGES DOCUMENTATION Enter date after each listed item is completed 1. (R649-8-10) Sundry or legal documentation was received from the FORMER operator on: 2. (R649-8-10) Sundry or legal documentation was received from the NEW operator on: 3. WELL TYPE 12/15/2006 Changes entered in the Oil and Gas Database on: Operator Spread Sheet on: Changes have been entered on the Monthly Change 12/15/2006 Bond information entered in RBDMS on: Fee/State wells attached to bond in RBDMS on: 12/16/2006 Injection Projects to new operator in RBDMS on: Receipt of Acceptance of Drilling Procedures for APD/New on: 12/15/2006 n/a Name Change Only BOND VERIFICATION: COl203 1. Federal well(s) covered by Bond Number: 2. Indian well(s) covered by Bond Number: RLB0005239 3. (R649-3-1) The NEW operator of any fee well(s) listed covered by Bond Number operator has requested a release of liability from their bond on: The Division sent response by letter on: a. The FORMER LEASE INTEREST RLBOOO5236 n/a rider added KMG OWNER NOTIFICATION: 4. (R649-2-10) The FORMER operator of the fee wells has been contacted and informed by a letter from the Division 5/16/2006 of their responsibility to notify all interest owners of this change on: COMMENTS: KMG Injection Wells to Westport Oil Gas Co LP (N2115) to Kerr-Mcgee Oil Gas Onshore, LP (N2995) sorted by Unit, Lease Type API well name WELLINGTON FED 44-6 SWD WELLINGTON FED 22-04 SWD SOUTHMAN CANYON U 3 OURAY SWD 1 NBU 21-20B CIGE 9 NBU 159 NBU 47N2 NBU 347 see 06 04 15 01 20 36 35 30 11 twsp 140S 140S 100S 090S 090S 090S 090S 100S 100S rng 110E 110E 230E 210E api 4300730912 4300730967 4304715880 4304733449 lease well 13919 14826 99990 13274 Federal Federal Federal Fee WD WD WD WD stat A A A A 200E 220E 210E 220E 220E NATURAL BUTTES UNIT 4304730359 2900 4304730419 2900 4304731996 2900 2900 4304730534 4304733709 2900 Federal State State Federal State WD WD WD WI WI A A A A A 1 entity STATE OF UTAH UIC FORM 5 DEPARTMENTOF NATURALRESOURCES DIVISIONOF OIL,GAS AND MINING TRANSFER OF AUTHORITYTO INJECT API Number Well Name and Number Several-See Attached Field or Unit Name Location of Well Footage Natural Buttes County : Uintah : State QQ, Section, Township, Range: EFFECTIVE DATE OF TRANSFER: : Lease Designation and Number UTAH 1/6/2006 CURRENT OPERATOR Company: Westport Oil and Gas Company Name: Address: 1368 South 1200 East Signature: state UT city Vernal Phone: zip 84078 (435) 789-4433 oil Estes A f Title: Principal Environmental Specialist Date: 12/14/2006 Comments: NEW OPERATOR ÑA995' Company: Kerr McGee Oil and Gas Company, LP Address: 1368 South 1200 East city Vernal signature: )]A state UT (435) 789-4433 Phone: rrollEstes Name: zip 84078 Title: Date: 12/14/2006 Comments: (This space for State use o Transfer approved bye Title: Co (5/2000) Approval Date: 19 Û () to v y Staff Environmental Specialist RECEIVED DECT5 Form 3 160-5 (August 1999) FORM APPROVED OMBNo. 1004-0135 EmpiresJnovember30,2000 UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT 5. Lease Serial No. MULTIPLE LEASES SUNDRY NOTICES AND REPORTS ON WELLS to drill or reenter an Do not use this form for proposals 3160-3 (APD) for such proposals. abandoned well. Use Form 6. If Indian, Allottee or Tribe Name 7. If Unit or CA/Agreement, Name and/or No. SUBMITIN TRIPLICATE- Other instructions on reverse side 1. Type of Well O on wen U oaswen O Other 8. Well Name and No. NameofOperator MUTIPLE WELLS 2. KERR-McGEE OIL & GAS ONSHORE LP 3a. 9. API Well No. 3b. Address 1368 SOUTH 1200 EAST VERNAL, UT 84078 Phone No. (include area code) (435) 781-7024 10. Field and Pool, or Exploratory Area Location of Well (Footage. Sec., T., R., M, or Survey Description) 4. 1l. County or Parish, State SEE ATTACHED UlNTAH COUNTY, UTAH 12. CHECK APPROPRIATE BOX(ES) TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATA TYPE OF SUBMISSION O Notice of Intent Subsequent Report O Final Abandonment Notice TYPE OF ACTION Q O Q O O Acidize Alter Casing Casing Repair Change Plans Convert to Injection O O Q O O Deepen Production Fracture Treat Reclamation (Start/Resume) Water Shut-Off Wen Integrity New Construction Recomplete Plug and Abandon Temporarily Plug Back Water Disposal Abandon Other CHANGE OF OPERATOR 13. Describe Proposedor CompletedOperations(clearly state all pertinentdetails,includingestimated staiting date of any proposed work and approximate durationthereof If the proposalis to deependirectionallyor recomplete horizontally, give subsurface locationsand measured andtrue vertical depths of all peltinent markets and zones. Attach the Bond under which the work will be performedor providethe Bond No. on file with BLM/BIA. Required subsequent reports shall be filed within 30 days followingcompletion of the involved operations. If the operation results in a multiple completion or recompletion in a new interval, a Form 3160-4shall be filed once testing has been completed. Final Abandonment Notices shall be filed only after all requirements, including reclamation, have been completed,and the opetator has determinedthat the site is ready for finalinspection. - PLEASE BE ADVISED THAT KERR-McGEE OIL & GAS ONSHORE LP, IS CONSIDERED TO BE THE OPERATOR OF THE ATTACHED WELL LOCATIONS. EFFECTIVE JANUARY 6, 2006. KERR-McGEE OIL & GAS ONSHORE LP, IS RESPONSIBLE UNDER TERMS AND CONDITIONS MAÏl Û2006 OF THE LEASE(S) FOR THE OPERATIONS CONDUCTED UPON LEASE LANDS. BOND COVERAGE MINING 1)lV.0FOIL,GAS& IS PROVIDED BY STATE OF UTAH NATIONWIDE BOND NO. RLBOOO5237. RECElVED Nat , DRILLING MANAGER ture gg d'/1/L6 Earlene Russell, EngmeeringTechnician Title Printed/Typed) DY AYN i APPROVED som a suas aCm Date A May 9, 2006 THIS SPACE FOR FEDERAL OR STATE USE Approved by Title Conditions of approval, ifany, are attached. Approval ofthis notice does not warrant or certify that the applicant holds legal or equitable title to those rights in the subject lease which would entitle the applicant to conduct operations thereon. Office Date Title 18 U.S.C. Section 1001,make it a crime for any personknowinglyand willfully to make to any departmentor agency of the UnitedStates any false, fictitiousor fraudulentstatements or representations as to any matter within its jurisdiction. (Instructions on « Form 3 160-5 (August 1999) FORM APPROVED OMBNo. 1004-0135 Expires Jnovember30,2000 UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT 5. Lease Serial No. MULTIPLE LEASES SUNDRY NOTICES AND REPORTS ON WELLS Do not use this form for proposals to drill or reenter an abandoned we/I. Use Form 3160-3 (APD) for such proposals. 6. If Indian, Allottee or Tribe Name 7. If Unit or CA/Agreement, Name and/or No. SUBMIT IN TRIPLICATE 1. 2. - Other instructions on reverse side Type of Well O oii wen U ossweii O Other 8. Well Name and No. NameofOperator MUTIPLE WELLS 9. API Well No. WESTPORT OIL & GAS COMPANY L.P. 3a. 3b. Address 1368 SOUTH 1200 EAST VERNAL, UT 84078 4. Phone No. (include area code) (435) 781-7024 10. Field and Pool, or Exploratory Area Location of Well (Footage, Sec., T, R., M., or Survey Description) 11. County or Parish, State SEE ATTACHED UINTAH COUNTY, UTAH 12. CHECK APPROPRIATE BOX(ES) TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATA TYPE OF ACTION TYPE OF SUBMISSION O Acidize Deepen Production (Start/Resume) O Alter Casing Fracture Treat Reclamation New Construction Recomplete O Casing Repair Change Plans Convert to Injection Plug and Abandon Temporarily Abandon Plug Back Water Disposal Notice of Intent Subsequent Report O Final Abandonment Notice Water Shut-Off Well Integrity Other CHANGE OF OPERATOR 13. DescribeProposedor CompletedOperations(clearly state all pertinentdetails,includingestimated startingdate of anyproposed work and approximate durationthereof If the proposalis to deepen directionallyor recomplete horizontally,give subsurface locationsand measured and true vertical depths of all pettinent markets and zones. Attach the Bond under which the work will be performedor providethe Bond No. on file with BLM/BIA Required subsequent reports shall be filed within30 days followingcompletion of the involved operations. If the operation results in a multiple completion or recompletion in a new interval, a Form 3160-4shall be filed once testing has been completed. Final AbandonmentNotices shall be filed only after all requirements, including teclamation, have been completed,and the operator has determinedthat the site is ready for fmalinspection. EFFECTlVE JANUARY 6, 2006, WESTPORT OlL & GAS COMPANY L.P., HAS RELINQUISHED THE OPERATORSHIP OF THE ATTACHED WELL LOCATIONS TO KERR-McGEE OIL & GAS ONSHORE LP APPROVEDJ /, fi RECEIVED MAY I 0 2006 Divisionof 011,GasandMining Earlene Russell,Engidag Mich 14. DIVDF Oll,,GAS&MIMNO I hereby certify that the foregoing is true and correct Name (Printed/Typed) Title ENGINEERING SPECIALIST BRAD LANEY Signature Date May 9, 2006 THIS SPACE FOR FEDERAL OR STATE USE A Title ved b Conditions of appio ifat Approval of this notice does not warrant or are equitable title to those rights in the subject lease certify that the applicant holds leg which would entitle the applicant to conduct operations thereon. , , Date Office Title 18 U.S.C. Section 1001,make it a crime for any personknowinglyand willfullyto make to any departtnentor agency of the UnitedStates any false, fictitiousor fraudulentstatements or representations as to any matter within its jurisdiction. (Instructions on United States Department of the Interior BUREAU OF LAND MANAGEMENT Colorado State Office 2850 Youngfield Street Lakewood, Colorado 80215-7076 IN REPLYREFER TO: CO922 (MM) 3106 COCO17387 et. al. March 23, 2006 NOTICE Kerr-McGee Oil & Gas Onshore L.P. 1999 Broadway, Suite 3700 Denver, CO 80202 : Oil & Gas Merger/Name Change - Recognized On February 28, 2006 this office received acceptable evidence of the following mergers and name conversion: Kerr-McGee Oil & Gas Onshore L.P., a Delaware Limited Partnership, and Kerr-McGee Oil & Gas Onshore LLC, a Delaware Limited Partnership merger with and into Westport Oil and Gas Company L.P., a Delaware Limited Partnership, and subsequent Westport Oil & Gas Company L.P. name conversion to Kerr-McGee Oil & Gas Onshore L.P. For our purposes the merger and name conversion was effective January 4, 2006, the date the Secretary of State of Delaware authenticated the mergers and name conversion. Oil & Gas Onshore L.P. provided a list of oil and gas leases held by the merging parties with the request that the Bureau of Land Management change all their lease records from the named entities to the new entity, Kerr-McGee Oil & Gas Onshore L.P. In response to this request each state is asked to retrieve their own list of leases in the names of these entities from the Bureau of Land Management's (BLM) automated LR2000 data base. Kerr-McGee The oil and gas lease files identified on the list provided by Kerr-McGee Oil & Gas Onshore L.P. have been updated as to the merger and name conversion. We have not abstracted the lease files to determine if the entities affected by the acceptance of these documents holds an interest in the lease, nor have we attempt to identify leases where the entity is the operator on the ground that maintains vested record title or operating rights interests. if additional documentation, for change of operator, is required you will be contacted directly by the appropriate Field Office. The Mineral Management Services (MMS) and other applicable BLM offices were notified of the merger with a copy of this notice Please contact this office if you identify additional leases where the merging party maintains an interest, under our jurisdiction,and we willdocument the case files with a copy ofthis notice. If the leases are under the jurisdiction of another State Office that information will be forwarded to them for their Three riders accompanied the merger/name conversion documents which will add Kerr-McGee Oil and Gas Onshore LLC as a principal to the 3 Kerr-McGee bonds maintained by the Wyoming State Office. These riders will be forward to them for their acceptance. The Nationwide. Oil & Gas Continental Casualty Company Bond #158626364 (BLM Bond #CO1203), maintained by the Colorado State Office, will remain in full force and effect until an assumption rider is accepted by the Wyoming State Office that conditions their Nationwide Safeco bond to accept all outstanding liability on the oil and gas leases attached to the Colorado bond. Ifyou have questions about this action you may call me at 303.239.3768. Is/Martha L Maxwell Martha L. Maxwell Land Law Examiner Fluid Minerals Adjudication Attachment: List of OG Leases to each of the following offices: MMS MRM, MS 3578-1 WY, UT, NMIOKITX,MTIND,WY State Offices CO Field Offices Wyoming State Office Rider #1 to Bond WY2357 Rider #2 to Bond WY1865 Rider #3 to Bond United States Department of the Interior BUREAU OF LAND MANAGEMENT UtahStateOffice P.O. Box 45155 Salt Lake City, UT 84145-0155 http://www.blm.gov y p *AMERICA IN REPLY REFER TO: 3106 (UT-922) March 27, 2006 Memorandum To: Vernal Field Office From: Chief, Branch of Fluid Minerals Subject: Merger Approval Attached is an approved copy of the merger recognized by the Bureau of Land Management, Colorado State Office. We have updated our records to reflect the merger from Westport Oil and Gas Company L.P. into Kerr-McGee Onshore Oil and Gas Company. The merger was approved effective January 4, 2006. Chief, Branch of Fluid Minerals Enclosure Approval letter from BLM COSO (2 pp) MMS, Reference Data Branch, James Sykes, PO Box 25165, Denver CO 80225 State of Utah, DOGM, Attn: Earlene Russell, PO Box 145801, SLC UT 84114 cc: Teresa Thompson Joe Incardine Connie Seare Dave Mascarenas ' Susan Bauman 2 8 2006 MAR DMOF01, GAS OOg feSOUTCOS EOG Resources, Inc. 1060 E Hwy 40 Vernal, Utah 84078 Certified Mail 70101670000122258651 February 14, 2011 United States Environmental Protection Agency Region 8 Attn: Nathan Wiser Mail Stop: 8ENF-UFO 1595 Wynkoop Street Denver, CO 80202 RE: Chapita Wells Unit 550-30N RECEIVED FEBl 7 2011 DIV.0FOiL,GAS&WNINQ EPA Permit No. UT20980-06509 Natural Buttes Unit 21-20B EPA Permit No. UT20623-03708 Chapita Wells Unit SWD 2-29 EPA Permit No. UT 21049-07108 Hoss SWD 901-36 EPA Permit No. UT21157-07865 Hoss SWD 903-36 EPA Permit No. UT21158-07866 Hoss SWD 904-36 EPA Permit No. UT21159-07867 Hoss SWD 905-31 EPA Permit No. UT21160-07868 Hoss SWD 906-31 EPA Permit No. UT21161-07869 Hoss SWD 907-31 EPA Permit No. UT21162-07870 Dear Mr. Wiser: Please find enclosed the Annual Disposal/Injection Well Monitoring Report (EPA Form 7520-11) for the above referenced wells. As requested, I have enclosed a copy of the water analysis for the water that we inject into each well. The water that is injected into the Chapita Wells Unit 550-30N and Chapita Wells Unit SWD 2-29 wells is pumped from the same facility located at the Chapita Wells 550-30N well site. All of the produced water that is injected into the six Hoss disposal wells is pumped from a single disposal facility (Hoss SWD Facility). We received the authorization to inject into the Hoss SWD 906-31 well on January 14, 2010. It was the last approval that we needed to operate the facility. We commenced injection from the Hoss SWD facility to all 6 Hoss SWD wells on that date. I have included a copy of the water analysis for that facility as well. The produced water that is injected into the NBU 21-20B comes from its own facility. I have also included a copy of the water analysis for that facility. energy opportunity 909 TOSOUTCOS EOG Resources, Inc 1060 E Hwy 40 Vernal, Utah 84078 We ran the required Temperature Logs on the Chapita Wells Unit 1125-29 (AOR well for the Chapita Wells Unit SWD 2-29 well), Chapita Wells Unit 47-30 (AOR well for the Chapita Wells Unit 550-30N SWD), and the Chapita 550-30N SWD and submitted logs in December. They are required on an annual basis. We are also required to run Temperature logs for the AOR wells associated with the six Hoss Disposal Wells and pressure surveys on the six disposal wells. I have included copies of the Temperature logs for the AOR wells listed below and the results of the pressure surveys for the disposal wells (see table). Well Fluid level Pore Pressure | Hoss 901 Hoss 903 Hoss 904 Hoss 905 Surface Surface Surface Surface Hoss 906 12 ft. Hoss 907 Surface 934 psig 1029 psig 1119 psig 936 psig 927 psig 912 psig AOR Well Hoss 1-36 Hoss 2-36 Hoss 6236 Hoss 8-31 Hoss 8-31 AOR Well Hoss 1031 Hoss 5-36 Federal 23-31 N. Chapita Federal 24-31 (psig) AOR Well N.Chapita Federal 44-36 Hoss 9-31 N.Chapita Federal 43-31 I ran pore pressure test on two wells per day for three days. I have digital Excel spreadsheet files of the pore pressure tests from Production Logging Services that I can forward to if you would like (350 pages each in hard copy). We have not started construction on the Coyote SWD 1-16 well (EPA Permit No. UT22165-08747) but we plan to do so soon. If you need any other information from me, I can be reached at (435) 781-9100 (office)or (435) 828-8236 (cell). Ed Forsman Production Engineering Advisor EOG Resources Vernal Operations - Attachments cc: State of Utah-Division of Oil, Gas & Mining BLM Vernal Field Office Jim Schaefer Denver Office Dave Long Big Piney Office - - - energy opportunity PAPERWORK REDUCTION ACT The public reporting and record keeping burden for this collection of infornation is estimated to average 25 hours annually for of Class I wells and 5 hours annually for operators of Class II wells. Burden means the total time, effort, or financial resource expended by persons to generate, maintain, retain, or disclose or provide information to or for a Federal Agency. This includes the time needed to review instructions; develop, acquire, install, and utilize technology and systems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any previously applicable instructions and requirements; train personnel to be able to respond to the collection of information; search data sources; complete and review the collection of information; and, transmit or otherwise disclose the information. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. Send comments on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including the use of automated collection techniques to Director, Collection Strategies Division, U.S. Environmental Protection Agency (2822), 1200 Pennsylvania Ave., NW, Washington, D.C. 20460. Include the OMB control number in any correspondence. Do not send the completed forms to this address. operators EPA Form 7520-11 1465 East 1650 south Vernal UT 84078 (435) 789-2069 www.nalco.com Wa1;er Analvsis Reoort Field EOG : County Sample Date Formation : Rock Type : : Location SWD 21-20 : Lab ID : Comments Depth m I 56.6 9 509.6 604.4 94.9 + Initial(BH) Total Dissolve Solid Total Hardness PH Total H2S a Man anese 19.2 1.4 Barium SUM Analysed Date: : 1/20|2011 : CATIONS Potassium Sodium Calcium Ma nesium Iron Strontium 1/20/2011 : 7.23 0.00 Calculated ANIONS 0.00 1900.21 0.00 0.00 PONResiduá 24.2 10,310.3 | 1.50 si --- Sulfate Chloride Carbonate Bicarbonate Bromide Or anic Acids H droxide ' SRBVials Turned ÁPB ŸÑsTurriei Final(WH) Saturation Index values Measured 32094.20 SUM . --- Delta - - m I 1 310.0 19 200.0 0.0 3 245.2 0.0 0.0 0.0 23,755.2 Barite s - 1.00 Calcite (CaCO3) 1.63 1.63 Barite (BaSO4) 1.42 77 77 77 77 77 L42 Halite (NaCl) -2.57 77 Temperature | 2.00 SI -e- ---A--- Delta St 77 77 77 77 77 77 77 77 (T) Calcite -2.57 1.50 Gypsum -0.57 1.00 -0.57 0.50 Hemihydrate 0.00 -1.33 -- 77 -1.33 77 77 77 -- -0.82 Celestite -0.34 77 Temperature Anhydrite -0.82 77 3.00 2.00 -FeCO3 (T) Iron carbonate - -0.34 1.00 Iron Sulfide 0.00 0.00 ; 0.00 15 Zinc Sulfide 0.00 0.00 1.50 15 15 15 " Pressure "" "" (Psia) 15 15 15 15 15 15 fron Sulfide ----FeS , Calcium fluoride 0.00 0.00 Iron Carbonate 2.01 1.00 0.50 2.01 Inhibitor needed (mg/L) Calcite NTMP 0.16 0.16 Barite BHPMP 0.31 0.31 0.00 15 15 15 15 15 15 15 Pressure (Psia) Lab Manager: Andrea Craig Analysis Division of Oil, Gas and Mining OPERATOR CHANGE WORKSHEET ROUTING CDW (for state use only) X Change of Operator (Well Sold) - The operator of the well(s) listed below has changed, effective: FROM: (oldOperator): Operator Name Change/Merger 12/31/1986 TO: ( New Operator): N9550-EOG Resources, Inc. N2995-Kerr-McGee Oil & Gas Onshore, LP 1368 South 1200 East Vernal, UT 84078 1060 E Hwy 40 Vernal, UT 84078 Phone: 1 (435) 781-7024 Phone: 1 (435) 781-9157 CA No. WELL NAME Unit: SEC TWN RNG API NO NBU 21-20B 20 090S 200E 4304730359 ENTITY NO 99998 LEASE TYPE WELL Federal TYPE WD WELL STATUS A OPERATOR CHANGES DOCUMENTATION Enter date after each listed item is completed 1. (R649-8-10) Sundry or legal documentation was received from the FORMER operator on: n/a 2. (R649-8-10) Sundry or legal documentation was received from the NEW operator on: 1/11/2012 3. The new company was checked on the Department of Commerce, Division of Corporations Database on: 4a. Is the new operator registered in the State of Utah: yes Business Number: 966901-0143 5a. (R649-9-2)Waste Management Plan has been received on: IN PLACE 5b. Inspections of LA PA state/fee well sites complete on: n/a 5c. Reports current for Production/Disposition & Sundries on: ok 6. Federal and Indian Lease Wells: The BLM and or the BIA has approved the merger, name change, or operator change for all wells listed on Federal or Indian leases on: BLM n/a BIA 7. Federal and Indian Units: The BLM or BIA has approved the successor of unit operator for wells listed on: n/a 8. Federal and Indian Communization Agreements ("CA"): The BLM or BIA has approved the operator for all wells listed within a CA on: n/a 9. Underground Injection Control ("UIC") Division has approved UIC Form 5 Transfer of Authority to Inject, for the enhanced/secondary recovery unit/project for the water disposal well(s) listed on: n/a DATA ENTRY: 1. Changes entered in the Oil and Gas Database on: 1/12/2012 Changes have been entered on the Monthly Operator Change Spread Sheet on: Bond information entered in RBDMS on: n/a Fee/State wells attached to bond in RBDMS on: n/a Injection Projects to new operator in RBDMS on: n/a 6. Receipt of Acceptance of Drilling Procedures for APD/New on: 2. 3. 4. 5. 1/12/2012 n/a BOND VERIFICATION: Federal well(s) covered by Bond Number: NM2308 Indianwell(s) covered by Bond Number: n/a 3a. (R649-3-1) The NEW operator of any state/fee well(s) listed covered by Bond Number 3b. The FORMER operator has requested a release of liability from their bond on: n/a 1. 2. LEASE INTEREST n/a OWNER NOTIFICATION: 4. (R649-2-10) The NEW operator of the fee wells has been contacted and informed by a letter from the Division of their responsibility to notify all interest owners of this change on: n/a COMMENTS: Correction to correct non-unit WD well out of unit (but within unit boundaries) not operated by unit operator. Confirmed with KMG's Land Manager. - EOG NBU 21-20B FORM A.xis 12/5/2011 n/a