B09_RVSD_AMD1_Attach_1-_Utah_OW_PA_SOW_-_FINAL_0001.pdf

United States Department of the Interior

Bureau of Land Management

Utah Orphan Wells Statement of Work

Location: Green River District, Price Field Office

Emery County, Utah

Canyon Country District, Moab Field Office

Grand County, Utah

West Desert District, Salt Lake Field Office

Summit County, Utah

Address: U.S. Department of the Interior

Bureau of Land Management

Utah State Office

440 West 200 South, Suite 500

Salt Lake City, Utah 84145-0155

August Amendment 1 – Revised 9/02/2021

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 1

TABLE OF CONTENTS

Summary of Work…………………………………………………………………………………………………………………….2

Wells

Federal 21-20 & Federal 12-17………………………………………………………………………………………………….3

Rath 1-A, Rath 1-X & Bucket Well………………………………………………………………………………………………9

Book Cliffs 1…………………………………………………………………………………………………………………………….13

Book Cliffs 3………………………………………………………………………………………………………………………….…18

Megadon Federal 1-15………………………………………………………………………………………………….…………24

TXO Springs 9-1………………………………………………………………………………………………………………….……30

Alice 29-3…………………………………………………………………………………………………………………………….….34

Table Top 1……………………………………………………………………………………………………………………….……..38

Appendix A……………………………………………………………………………………………………………………….……..43

Appendix B……………………………………………………………………………………………………………………….……..63

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 2

SUMMARY OF WORK:

Eleven wells, one in Summit County, five in Emery County and five in Grand County in the past several years were put into an orphan status because the operators went insolvent. In accordance with the requirement of 43 CFR 3162.3-4 (a) (b) and per Section XII of the Bureau of Land Management Onshore Oil and Gas Order No.

1, III., XII., A., B., these wells must be plugged and abandoned (P&A), the equipment must be salvaged, and the surface must be reclaimed.

This report contains general lease information of each well, the geological formations, the location of the wells, wellbore structure, list of production equipment that was left by the operator, the recommended plug sizes and setting depths to P&A the wells, and the government cost estimate to plug and reclaim the wells.

Well Information:

Plugging and abandonment for these wells will be carried out according to Onshore Oil and Gas Order No. 2.

III., G. taking into consideration of the targeted formations and other usable minerals and water as listed with each well in this action plan. Below is a map of Northeast Utah showing the location of all 11 wells.

H2S is not known to be present in the wells listed but if encountered follow Onshore Oil and Gas Order No. 6.

III., C. and API RP 49 should also be followed.

PRE-WORK REQUIREMENTS

The Contractor shall develop and follow a Site Safety and Health Plan (SSHP) for all field activities associated with this contract and for all persons performing work under this contract. This shall be submitted within 5 days of awarding the contract. The SSHP shall be developed and maintained in compliance with the most recent requirements OSHA standard 29 Code of Federal Regulations (CFR) 1910 and all applicable Federal, State, and local safety and occupational health laws and regulations. Where the requirements of applicable laws, criteria, ordinances, regulations, and referenced documents vary, the most stringent requirements shall apply.

All abandonment procedures must meet Federal requirements as identified under the Bureau of Land Management’s Onshore Oil and Gas Order #2.

Well control equipment such as BOPE will be required in accordance with Onshore Oil and Gas Order #2 as if we were drilling due to unknow pressures and nature of some wells.

Mishap Notification and Investigation: In the instance where Government personnel are injured and become incapacitated to the point where they cannot report a mishap themselves, the Contractor shall initially respond

Lease US Well Number Well Name Number TWP RGE Section QTR` Sfc Owner Lse Type County State Field Office

UTU38352 4301530036 FEDERAL 21-20 26S 7E 20 NENW BLM FED EMERY UT Price

UTU38352 4301530062 FEDERAL 12--17 26S 7E 17 SWNW BLM FED EMERY UT Price

UTSL042322 4301515105 RATH 1-A 26S 7E 18 NENE BLM FED EMERY UT Price

UTSL042322 4301515104 RATH 1-X 26S 7E 17 NESW BLM FED EMERY UT Price

Unknown Unknown Bucket 26S 7E 17 SESW BLM FED EMERY UT Price

UTU82596 4301931343 ALICE 29-3 18S 25E 29 NWNW BLM FED GRAND UT Moab

UTU37005 4301915410 BOOKCLIFFS 1 18S 22E 32 SESE BLM FED GRAND UT Moab

UTU36905 4301915411 BOOKCLIFFS 3 18S 22E 33 SWNE BLM FED GRAND UT Moab

UTU75539 4301930713 TXO 9--1 20S 23E 9 NENW BLM FED GRAND UT Moab

UTU31805 4301930752 MEGADON FED 1--15 23S 17E 15 NWSW BLM FED GRAND UT Moab

UTU24446 4304330324 TABLE TOP 1 1N 10E 16 SWSW USFS FED SUMMIT UT Salt Lake

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 3 to the life and safety needs of such an incapacitated individual and then shall promptly report pertinent facts regarding mishaps by notifying the CO, COR and/or other applicable individuals as soon as feasibly possible. The Contractor and its Subcontractors (as applicable) shall cooperate fully in any resulting safety investigation.

General Public: Where the instances exist, the Contractor shall be diligent in providing safety measures for keeping the general public from access to the work site and protecting them from harm in the general vicinity.

Weather: The Contractor shall remain vigilant regarding weather conditions that can be harmful to life and safety of the employees and shall take the appropriate precautionary actions to assure that life and safety are preserved. The Contractor shall also assure that equipment failure due to weather conditions is mitigated;

equipment vital to the success of the requirements is of special concern.

When weather conditions are forecasted that will cause harm to life, safety, and equipment which will affect work operations, the Contractor shall communicate such issues to the COR and CO at the earliest possibility.

Well Plugging Priority

Priority Well Name Well # TWN RNG Sec QTR/QTR County Field Office Depth

1 Federal 21-20 26S 7E 20 NENW Emery Price 3,091

2 Rath 1-X 26S 7E 17 NESW Emery Price 2,735

3 Bucket 26S 7E 17 NWSW Emery Price 2,400

4 Federal 12-17 26S 7E 17 SWNW Emery Price 2,730

5 Rath 1-A 26S 7E 18 NENE Emery Price 2,706

6 Alice 29-3 18S 25E 29 NWNW Grand Moab 1,224

7 TXO Springs 9-1 20S 23E 15 NWSW Grand Moab 2,370

8 Book Cliffs 1 18S 22E 32 SESE Grand Moab 5,220

9 Book Cliffs 3 18S 22E 33 SWNE Grand Moab 5,351

10 Megadon Federal 1-15 23S 17E 15 NWSW Grand Moab 8,830

11 Table Top 1 1N 10E 16 SWSW Summit Salt Lake 11,285

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 4

FEDERAL 21-20 AND FEDERAL 12-17 WELLS, EMERY COUNTY, UTAH

BACKGROUND:

The Federal 21-20 was drilled and cased in October 1974 and shut in. The well tested 700 MFCF during drill stem testing but was never completed. The Federal 12-17 was drilled, cased and completed in November 1978 and then it was shut in. The well tested 1.7 MMCFD in 1989 and 2.2 MCFD in 2001. A pipeline was never installed to take gas away from these wells and they changed hands several times until operations were assumed by Walden

Energy Ventures, LLC in February 2006. Walden Energy Ventures, LLC became insolvent in 2015 and the wells were subsequently classified as orphaned. These wells now fall within the Lower Last Chance Wilderness by virtue of the Dingle Act which was signed into law on March 12, 2019. A Minimum Requirements Decision Guide

(MRDG) must be completed and approved prior to plugging these wells.

GEOLOGY:

Onshore Oil and Gas Order No. 2 Section III., G. states that “all formations bearing usable-quality water, oil, gas, or geothermal resources, and/or a prospectively valuable deposit of minerals shall be protected.”

Utah Geological Survey, Bulletin 132, Energy, Mineral, and Ground-Water Resources of Carbon and Emery Counties, Utah published by Utah Geological Survey in 2003 lists the hydrostratigraphic units in Carbon and Emery counties that need to be protected. Table 2 below lists the formations that were penetrated by these two orphaned wells. Per Onshore Oil and Gas Order No. 2, these formations will need to be isolated.

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 5

Table 1 - Formations above the targeted zones:

Well Name Num Carmel Navajo Kayenta Wingate Chinle Moenkopi Sinbad Kaibab

Federal 12-17 Surface 250 1299 1373 1730 2140 Not Reported

Federal 21-20 Surface 200 1240 1380 1728 2115 2763 2988

FMS NWBNavajo Aquifer Target FMS: Fresh to Moderately Saline NWB: Non-water bearing Navajo Aquifer produces fresh water in some areas, TDS ranges from 239 to 8,839 mg/L

Formations listed in Table 2 were provided by Energetics, Inc. from the UDOGM Completion Report. They can be found under the well files from the Utah State website, Utah Division of Oil, Gas and Mining (UDOGM), https://oilgas.ogm.utah.gov/oilgasweb/.

Table 2 – Targeted Zones:

US Well Number Well Name Num Ground Elev Completion Formation1 Perf Top Perf Btm

4301530062 Federal 12-17 6123 Cased Veritcal Moenkopi 2580 2597

4301530036 Federal 21-20 6121 Cased Veritcal Moenkopi DST'd but not perf'd

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 6

WELL LOCATIONS:

The locations of the orphaned wells are shown below in figure 1. They are located in Emery County about 26 miles south of Emery, Utah.

Figure 1 – Map of the orphaned Wells:

Locations of the orphaned wells can be found on Google Map at the latitudes and longitudes listed in Table 3 below.

Table 3- Location of Wells:

Lease US Well Number Well Name Num County Field TWP RGE Sec QTR Latitude Longitude

UTU38352 4301530062 Federal 12-17 Emery Last Chance 26S 7E 17 SWNW 38.550613 -111.191185

UTU38352 4301530036 Federal 21-20 Emery Last Chance 26S 7E 20 NENW 38.541225 -111.185616

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 7

WELLBORE:

Table 4 below details the casing used for each well

Table 4 - Casing Designs:

N ame N um Elev Hole Size W t

Set t ing

D ept h Hole Size W t

Set t ing

D ept h Hole Size W t Top

Set t ing

D ept h

Federal 12-17 6123 12 1/4 9 5/8 36 218 8 3/4 7 20 2250 6 1/8 4 1/2 10.5 Surf 2730

Federal 21-20 6121 15 1/2 10 3/4 40.5 185 9 7/8 7 5/8 40.5 2227 6 3/4 5 1/2 17 2091 3091

Surface Intermediate Production/Liner

Casing

EQUIPMENT THAT WILL BE REMOVED:

No production equipment remains on these locations. Remove wellheads, any tubulars and trash from the locations and road areas.

PLUGGING RECOMMENDATION:

The wells will be plugged according to Onshore Orders #1 and #2. Table 6 outlines the recommended placement of plugs in the two wells. Plugging procedures and wellbore schematics are presented in Section IV and Appendix A respectively. Operator is required to supply a work string to complete the work. In order to reduce possible surface impacts, “T” Seals and or Base Beams can be used in place of anchors.

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 8

Table 1 – Cement Plug Program:

Well Name Plug 1 Plug 2* Plug 3*

Federal 12-17 Moenkopi Wingate Surface

Casing Size 4 1/2 4 1/2 X 7" X 8 3/4" 4 1/2

Casing Wt 10.5 10.5# X 20.0# X OH 10.5

Casing ID 4.052 4.052 X 6.456 X 8.75 4.052

Perforations 2579-2597 850 -

CIBP or CR 2530 800 -

Bottom 2530 850 50

Top 2430 750 Surface

Length 100 100 50

Cu-Ft Cmt* 8.95 236.07 4.48

Sacks of Cmt** 10 250 10

Well Total Sacks 270

Plug 2* perforations require 18" min penetration

Plug 2* cement annuli from 850' to surface

Plug 3* after placing plug, top off cement in annuli and inside casing

Well Name Plug 1 Plug 2* Plug 3*

Federal 21-20 Moenkopi/Wingate Wingate Surface

Casing Size 7-5/8 X 5-1/2 7 5/8 7-5/8 X 10-3/4

Casing Wt 26.4# X 17# 26.4# 26.4# X 40.5#

Casing ID 6.969 X 4.892 6.969 6.969 X

Perforations None 1400 200

Cmt Retainer None 1350 -

Bottom 2300 1400 200

Top 2000 1300 Surface

Length 300 100 200

Cu-Ft Cmt* 52.59 47.90 154.90

Sacks of Cmt** 50 50 150

Well Total Sacks 250

Plug 2* 100' inside and outside

Plug 3* inside and outside from 200' to surface. Top off casing and annulus.

*All volumes are calculted based on tubular dimensions and may change depending on downhole conditions.

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 9

H2S SAFETY HAZARD

MINIMUM REQUIREMENTS REQUIRED BY REGULATION: Onshore Order No.6 – H2S Operations

1. General

a. A specific H2S operations plan for plugging operation will not be required for approval prior to starting work.

b. If H2S is encountered in excess of 100 ppm in the gas stream, the following measures shall be taken:

i. the contractor shall immediately ensure control of the well, suspend plugging operations and obtain materials and safety equipment necessary to bring the operations into compliance with all applicable provisions of Onshore Order No. 6.

ii. The contractor shall notify the authorized officer of the event and the mitigating steps that have or are being taken as soon as possible, but no later than the next business day. If said notification is subsequent to actual resumption of operations, the contractor, shall notify the authorized officer of the date and time that operations were resumed no later than the next business day.

iii. It is the contractor's responsibility to ensure that the applicable requirements of this Order have been met prior to the resumption of operations. Operations will not be suspended pending receipt of a written H2S Drilling Operations Plan(s) and, if necessary, Public Protection Plan(s) provided that complete copies of the applicable Plan(s) are filed with the authorized officer for approval within 5 business days following resumption of operations.

a. Warning System Response. When H2S is detected in excess of 10 ppm at any detection point, all non-essential personnel shall be moved to a safe area and essential personnel (i.e., those necessary to maintain control of the well) shall wear pressure-demand type protective breathing apparatus until the H2S is controlled. Once accomplished, operations may proceed normally.

RECLAMATION

The well pads have filled in with native vegetation and the roads have filled in to two-tracks, therefore, all operations shall be done with high levels of caution to prevent disturbance of the surface that is more than what is necessary. Reclamation will require the removal of all equipment and trash. Depending on damage done during plugging operations, roads may be reclaimed by dragging and roughening the surface to allow the native vegetation to grow in.

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 10

RATH 1-A, RATH 1-X & BUCKET WELL EMERY COUNTY, UTAH

These wells were drilled in the early 1950’s by Byrd-Frost, Inc. The Rath 1-X tested 5.2 MMCFD low Btu gas and the Rath 1-A tested 750 MCFD. No pipeline was installed and the wells never produced except for production testing to the atmosphere. Standard Energy Corporation subsequently purchased the leases and assumed operatorship. In 1989 Standard Energy placed cast iron bridge plugs in the well bores of the Rath 1-A and Rath 1-X above the producing horizons and temporarily abandoned the wells. In 2004 lease UTSL 042322 expired and a Written Order to plug the wells was issued on September 24, 2015. Standard Energy filed for a State Director Review and the Written Order to plug and abandon the wells was found to be justified, however in subsequent years no progress was made on plugging the wells. In June 2019 Mr. Dean Rowell, the president and owner of Standard Energy Corporation, passed away. On December 12, 2019, the Utah State Office of the BLM pulled Standard’s $25,000 plugging bond. Subsequent efforts to contact Standard Energy Corporation have determined that the company is no longer in business. The Bucket Well is in the same section as the Rath 1-X well. All we know is that there is 9 5/8” casing sticking out of what appears to be 12 ¼” surface pipe or an old school swedge. A stone was dropped and it fell for approximately 16 to 22 seconds. The well is open to the atmosphere with just a bucket as cover.

GEOLOGY:

Onshore Oil and Gas Order No. 2 Section III., G. states that “all formations bearing usable-quality water, oil, gas, or geothermal resources, and/or a prospectively valuable deposit of minerals shall be protected.”

Utah Geological Survey, Bulletin 132, Energy, Mineral, and Groundwater Resources of Carbon and Emery Counties, Utah published by the Utah Geological Survey in 2003 lists the hydrostratigraphic units in Carbon and Emery counties that need to be protected. Table 2 below lists the formation that were penetrated by these two orphaned wells. Per onshore Oil and Gas Order No. 2, these formations will need to be isolated.

Table 2 - Formations above the targeted zones:

Well Name Number Caramel Navajo Kayenta Wingate Chinle Moenkopi Sinbad

Rath 1-A Surface 230 1309 1416 1734 1922 2780

Rath 1-X Surface 220 1240 1310 1710 1910 2738

Bucket Well (Unknown) Surface

FMS Navajo Aquifer NWB Target

FMS: Fresh to Moderately Saline NWB: Non-water Bearing Navajo Aquifer produces fresh water in some areas, TDS Ranges from 239 to 8,839 mg/L

Formations for the Rath 1-A and Rath 1-X wells listed in Table 2 were provided by Byrd-Frost, Inc. from the UDOGM Completion Report. They can be found under the well files from the Utah State website, Utah Division of Oil, Gas and Mining (UDOGM), https://oilgas.ogm.utah.gov/oilgasweb/.

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 11

Table 3 – Targeted Zones:

Well Name Number GL Elevation Completion Top Bottom

Rath 1-A 6064 Cased Vertical 2580 2706

Rath 1-X 6121 Cased Vertical 2550 2735

Bucket Well (Unidentified) Surface Cased Vertical Unknown Unknown

WELL LOCATIONS:

The locations of the orphaned wells are shown below in Figure 1. They are located in the Emery County just southeast of Wellington, Utah off highway 191 between UT-123 and County Road 125.

Figure 1 – Map of the orphaned Wells:

Locations of the orphaned wells can be found on Google Map at the latitudes and longitudes listed in Table 3

Table 4 - Location of Wells:

Well Name Number Section Latitude Longitude

Rath 1-A 18 38.55429 -111.19600

Rath 1-X 17 38.54050 -111.18632

Bucket Well (Unidentified) 17 38.54545 -111.18936

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 12

WELLBORES:

Wellbore Diagrams for each of the wells are found in Appendix A.

EQUIPMENT TO BE REMOVED:

No production equipment remains on these locations. Remove wellheads, any tubulars and trash from the locations and road areas.

RECOMMENDED PLUGGING PROCEDURES:

RATH 1-A:

1. MIRU workover rig. Kill well if necessary.

2. ND wellhead. NU and test BOP.

3. Trip out and lay down 90 joints of 1” tubing.

4. PU bit & scraper for 7” 20# casing on work string. Run to CIBP at 2000’ and circulate well clean.

5. POOH with tubing. LD BHA and rig up perforators.

6. Perforate well at 1975’

7. Spot a 200’ cement plug on top of bridge plug. Pull up, reverse circulate tubing clean and squeeze cement into perforations. WOC

8. RIH, tag plug and test casing to 500 psi. Contact Contracting Officer Representative (COR) before proceeding.

9. Circulate well and fill with inhibited water.

10. Pull tubing and rig up wireline to perforate at 900’.

11. Perforate at 900’.

12. Rig down wireline and circulate to surface with all casing annulus valves open.

13. Pick up a cement retainer on tubing and set at 850’.

14. Circulate casing through cement retainer to surface up 7” X 13 3/8” casing annulus.

15. Close annulus valve, sting out of retainer and place a 100’ cement top on top of retainer.

16. Pull up, reverse out and fill wellbore to surface with inhibited water.

17. Place a 50’ cement plug at surface inside of 7” casing. Top of cement in casing and annuli.

18. Cut off casing at the base of the cellar or 3 feet below ground level. Weld on 1/4" thick dry hole plate.

Dry hole plate is to include the following:

a. Well Name

b. Operator Name

c. Lease Number

d. Location

19. Release plugging equipment and clean up location.

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 13

RATH 1-X:

1. MIRU workover rig. Kill well if necessary.

2. ND wellhead. NU and test BOP.

3. PU bit & scraper for 7” 20# casing on work string. Run to CIBP at 2300’ and circulate well clean.

4. POOH. Lay down bit and scraper.

5. Perforate well at 2275’

6. Spot a 200’ cement plug on top of bridge plug. Pull up, reverse circulate tubing clean and squeeze cement into perforations.

7. Test casing to 500 psi. Contact COR before proceeding.

8. Circulate well and fill with inhibited water.

9. Pull tubing and rig up wireline to perforate at 1200’.

10. Pick up a cement retainer on tubing and set at 1150’.

11. Circulate cement to surface.

12. Close annulus valve, sting out of retainer and place a 100’ cement top on top of retainer.

13. Pull up, reverse out and fill wellbore to surface with inhibited water.

14. Place a 100’ cement plug at surface. Top off cement in casing and annuli.

15. Cut off casing at the base of the cellar or 3 feet below ground level. Weld on 1/4" thick dry hole plate.

Dry hole plate is to include the following:

a. Well Name

b. Operator Name

c. Lease Number

d. Location

16. Release plugging equipment and clean up location.

BUCKET WELL (UNIDENTIFIED SURFACE CASING)

1. Fill surface casing with 35 cubic yards of material, then cap with 5 yds of ready-mix cement.

2. Cut off casing 3 feet below ground level. Weld on 1/4" thick dry hole plate with ¼” weep hole.

3. Back fill well head and clean up location.

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 14

BOOK CLIFFS UNIT 1, GRAND COUNTY, UTAH

The Book Cliffs Unit 1 well was drilled by Great Yellowstone Corporation in the Book Cliffs Field in May 1961 and completed by Gulf Oil in the Dakota formation in July 1961. Operatorship of the well changed several times before Celtic Resources LLC assumed operatorship in February 1991. The operator became insolvent in 2020 and the well became an orphan. In accordance with the requirement of 43 CFR 3162.3-4 (a) (b) and per Section XII of the Bureau of Land Management Onshore Oil and Gas Order No. 1, III.,XII., A., B., this well must be plugged and abandoned (P&A), the equipment must be salvaged, and the wellsite (including the mud pit) location must be reclaimed.

A review of offset wells in the Book Cliffs Unit 1 area does not indicate the presence of H2S in the Book Cliffs Field. Although no H2S has been reported, as a precaution H2S safety measures should be readily available if H2S is encountered, to support well shut in and allow for re-planning of operations to meet requirements as stipulated in Onshore Order No.6 – H2S Operations.

GEOLOGY:

Onshore Oil and Gas Order No. 2 Section III., G. states, “all formations bearing usable-quality water, oil, gas, or geothermal resources, and/or a prospectively valuable deposit of minerals shall be protected.”

Figure 1. below identifies the Stratigraphic units in the Book Cliffs Field and the hydrocarbon and water bearing formations that will need protected, it is taken from Circular 99 May 1999 “A Summary of the Groundwater Resources and Geohydrology of Grand County, Utah” by Chris Eisinger and Mike Lowe published by Utah Geological Survey, a division of Department of Natural Resources. The stratigraphic information in Figure 1. is taken from “Geologic Map of the Moab and Eastern Part of the San Rafael Desert 30' X 60' Quadrangles, Grand and Emery Counties, Utah, and Mesa County, Colorado” by Hellmut H. Doelling published by Utah Geological Survey, a division of Department of Natural Resources, in 2002. Table 2. below lists the formations that were encountered during Well Operations for the Book Cliffs Unit 1, per Onshore Oil and Gas Order No. 2, these formations will need to be isolated.

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 15

Figure 1 – Geologic Stratigraphic Units

Formations listed in Table 1. below were provided by Great Yellowstone Corporation (initial lease holder) completion report from Well Completion Report dated May 29, 1961. You can find them under the well files from the Utah State website, Utah Division of Oil, Gas and Mining (UDOGM), https://oilgas.ogm.utah.gov/oilgasweb/.

Table 2 – Targeted Zones:

Water Bearing Formation

Oil/Gas Bearing Formation https://oilgas.ogm.utah.gov/oilgasweb/

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 16

WELL LOCATION:

Form Moab take US-191 for 32.4miles to Crescent Junction, turn right on I-70 and travel East for 32 miles to Exit 214. The Book Cliffs Unit 1 well is located in Grand County northwest of the I-70 Exit 214 (UT-128 Exit) approximately 20.1 miles. Take I-70 East from Exit 182 thirty-two miles to Exit 214, turn left on UT-128 and crossover I-70 for 0.2 miles, continue straight on BLM 181/Cottonwood Canyon Rd for 14.9 miles, turn right onto BLM 185/Cottonwood Canyon Rd 5 miles to the Book Cliffs Unit 1, the well site right side of the road (Lat/Long coordinates 39.19224 / -109.5019). See Figure 2 below.

Figure 2 – Map of the orphaned Wells:

Table 3 - Location of Well:

Below are tables that details the casing and tubing used for the well. Intervals of the open-hole and casing/tubing specifications are also listed in the below tables.

Table 4 – Casing Details:

Table 5 – Tubing Details:

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 17

Table 6 - Casing and Tubing Technical Specifications:

For current and planned P&A Wellbore Diagrams for the Book Cliffs Unit 1 well, refer to Appendix A.

EQUIPMENT REMOVAL AND PAD ACCESS REMEDIATION:

Below is the inventory list of the production equipment that was left behind by the operator. The equipment will need to be removed from the location, along with any extra plugging equipment, materials, and trash left after P&A operations, before the reclamation can take place.

Lease U-31805:

Book Cliffs Unit 1:

Items to be removed/reclaimed include, but are not limited to:

• Separator

• Storage Tank 400 bbl

• Flow/transfer lines o Wellhead o Separator/treater to storage o Miscellaneous lines

• Guy wire/Rig anchors

• Miscellaneous site debris

The well site is overgrown due to lack of proper site management. There are two small pits on sight (approx.

2030’ x 2030’ x 58’), associated site operations facilities equipment and miscellaneous debris. The site is reasonably level but may require some compaction to firm up the well site soil for remediation access by heavy vehicles. Full site remediation will be performed in accordance with appropriate guidelines and COA’s as stipulated in the APD, lease agreement and applicable Federal Guidelines.

PLUGGING RECOMMENDATION:

The contractor will be responsible for determining the cement plugs for the Book Cliffs Unit 1 well listed in Table 7 below. Per Onshore Oil and Gas Order No. 2., III., G. all the known formations listed in Table 2 will need to be isolated.

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 18

Table 7 Recommended Cement Plug Program:

The target section of the well should be plugged by spotting 226’, from 5220’- 4994’, of cement and squeezing (22 ft3/20 sx) additional cement. The plug should be tested by either tagging the plug with the work string or testing the plug to a minimum pump pressure of 500 psi, with no more than a 10 percent drop during a 15-minute period. If the pressure drop exceeds 10% during the observation period, the COR shall be contacted.

The 8-5/8” shoe and water bearing Castlegate formation will be addressed next. The 5-1/2” by 8-5/8” casing annular space should be isolated by perforating the 5-1/2” casing at 1771’, then placing a cement retainer at 1716’ and squeezing 403’ of cement below the retainer and spotting 348’ of cement on top of the retainer. The contractor should cement 403’ of the annulus area, 50’ below the retainer and 348’ on top of the retainer to ensure the formations are isolated. This plug should be tested by either tagging the plug with the work string, or pressuring to a minimum pump pressure of 500 psi, with no more than a 10 percent drop during a 15-minute period.

The 5-1/2” and 8-5/8” casing should be perforated at 172’ and a surface cement plug of at least 169’ shall be placed in the production casing as well as across all other annuli. The top of this plug should be placed as near to the eventual casing cutoff point as possible. All casing shall be cut-off at the base of the cellar or 3 feet below final restored ground level (whichever is deeper). The well bore shall then be covered with a metal plate at least 1/4-inch-thick and welded in place. The well location and identity shall be permanently inscribed. A weep hole shall be left if a metal plate is welded in place.

RECLAMATION

No reclamation is required beyond closing the two pits and hauling off all production equipment and trash.

The access road may need a little work on a few corners to get the rig through. This should be minimal and only done to get the rig into the area where the pad is located. The well sites must be recontoured to blend with the surrounding landform. All excavations and pits must be dry and free of waste and graded to conform to the surrounding terrain. Salvaged topsoil must be respread evenly over the surfaces to be revegetated. The topsoil site should be prepared to provide a seedbed for reestablishment of desirable vegetation. Site preparation may include gouging, scarifying, dozer track-walking, mulching, fertilizing, seeding, and planting.

Access roads must be reclaimed. Final reclamation includes recontouring the road back to the original contour, seeding, controlling noxious weeds, and may also include other techniques to improve reclamation success, such as ripping, scarifying, replacing topsoil, constructing water bars, pitting, mulching, redistributing woody debris, and barricading.

Seeds of native, perennial species or other plant materials specified by the surface management agency must be used if seeding is required.

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 19

BOOK CLIFFS UNIT 3, GRAND COUNTY, UTAH

The Book Cliffs Unit 3 well was drilled by Gulf Oil in the Book Cliffs Field in July 1962 and completed by Gulf Oil in the Dakota formation in August 1962. Operatorship of the well changed several times before Celtic Resources LLC assumed operatorship in May 2001. The operator became insolvent in 2020 and the well became an orphan. In accordance with the requirement of 43 CFR 3162.3-4 (a) (b) and per Section XII of the Bureau of Land Management Onshore Oil and Gas Order No. 1, III.,XII., A., B., this well must be plugged and abandoned (P&A), the equipment must be salvaged, and the wellsite (including the mud pit) location must be reclaimed.

A review of offset wells in the Book Cliffs Unit 3 area does not indicate the presence of H2S in the Book Cliffs Field. Although no H2S has been reported, as a precaution H2S safety measures should be readily available if H2S is encountered, to support well shut in and allow for re-planning of operations to meet requirements as stipulated in Onshore Order No.6 – H2S Operations.

GEOLOGY:

Onshore Oil and Gas Order No. 2 Section III., G. states, “all formations bearing usable-quality water, oil, gas, or geothermal resources, and/or a prospectively valuable deposit of minerals shall be protected.” Figure 1. below identifies the Stratigraphic units in the Book Cliffs Field and the hydrocarbon and water bearing formations that will need protected, it is taken from Circular 99 May 1999 “A Summary of the Groundwater Resources and Geohydrology of Grand County, Utah” by Chris Eisinger and Mike Lowe published by Utah Geological Survey, a division of Department of Natural Resources. The stratigraphic information in Figure 1. is taken from “Geologic Map of the Moab and Eastern Part of the San Rafael Desert 30' X 60' Quadrangles, Grand and Emery Counties, Utah, and Mesa County, Colorado” by Hellmut H. Doelling published by Utah Geological Survey, a division of Department of Natural Resources, in 2002. Table 2. below lists the formations that were encountered during Well Operations for the Book Cliffs 3, per Onshore Oil and Gas Order No. 2, these formations will need to be isolated.

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 20

Figure 2 – Geologic Stratigraphic Units

Formations listed in Table 1. below were provided by Gulf Oil (initial lease holder) completion report from Well Completion Report dated September 14, 1962. You can find them under the well files from the Utah State website, Utah Division of Oil, Gas and Mining (UDOGM), https://oilgas.ogm.utah.gov/oilgasweb/.

Oil/Gas Bearing Formation

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 21

Form Moab take US-191 for 32.4 miles to Crescent Junction, turn right on I-70 and travel East for 32 miles to Exit 214. The Book Cliffs 3 well is located in Grand County northwest of the I-70 Exit 214 (UT-128 Exit) approximately 20.1 miles. Take I-70 East from Exit 182 thirty two miles to Exit 214, turn left on UT-128 and crossover I-70 for 0.2 miles, continue straight on BLM 181/Cottonwood Canyon Rd for 14.9 miles, turn right onto BLM 185/Cottonwood Canyon Rd 5 miles to the Book Cliffs 3, the well site right side of the road (Lat/Long coordinates 39.19224 / -109.5019). See Figure 2 below. The final 2000 feet of access road from the BLM 185 Cottonwood Canyon RD will need to be improved to get equipment to the wellsite up the dry creek.

Figure 3 – Map of the orphaned Wells:

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 22

Below are tables that details the casing and tubing used for the well. Intervals of the open-hole and

Table 4 – Casing Details:

Table 5 – Tubing Details:

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 23

For current and planned P&A Wellbore Diagrams for the Book Cliffs 3 well, refer to Appendix A.

EQUIPMENT REMOVAL AND PAD ACCESS REMED IATION:

Below is the inventory list of the production equipment that was left behind by the operator. The equipment will need to be removed from the location, along with any extra plugging equipment, materials, and trash left after P&A operations, before the reclamation can take place.

Lease U-036905:

Book Cliffs Unit 3:

Items to be removed/reclaimed include, but are not limited to:

• Separator

• Storage Tank 400 bbl

• Flow/transfer lines o Wellhead o Separator/treater to storage o Miscellaneous lines – Buried lines will be cut and capped 2 ft below grade.

• Guy wire/Rig anchors

• Miscellaneous site debris

The well site is overgrown due to lack of proper site management. There is a small pit (approx. 20’ x 20’ x 5’) and a larger mud/flow pit, associated site operations facilities equipment and miscellaneous debris. Access to the well site is via a lease road that has decayed over time and will need to be completely rebuilt and restored for the rig and vehicle travel. The well site is reasonably level but may require some compaction to firm up the well site soil for remediation access and vehicle traffic. Full site remediation will be performed in accordance with appropriate guidelines and COA’s as stipulated in the APD, lease agreement and applicable Federal Guidelines. Details of construction and reclamation are as follows:

1. The road is 3219 ft long and is completely overgrown and washed out. The existing gas pipeline will have to be removed prior to starting dirt work on the road. Road construction will include a culvert over the stream to fill in the wash right off the main road. This culvert will be removed after work is completed. There is not a lot of available soils for filing in the washes, but there should be sufficient as long as the road is constructed as temporary and just to allow for access of plugging equipment to plug the well. There are a couple of boulders that will probably need to be blasted and broken up. Additional fill material may be required in order to compete road construction. The remains can be used to fill in some of the washes in the road path. Dirt work is extensive and if fill dirt is needed, price per yard of fill dirt is how it needs to be bid. All vegetation shall be pushed to the side of the road and re-spread upon exit from the well pad. This work is extensive and will

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 24 require a very large amount of work to be done to get to the well pad. At the well pad, the road will access the pad on the east side of the location behind the tank.

2. The location will need to be cleared of vegetation in order to access the well head. This vegetation shall be stored on location and then respread over the location upon exit from the well pad. No recontouring is needed for reclamation.

PLUGGING RECOMMENDATION:

The contractor will be responsible for determining the cement plugs for the Book Cliffs 3 well listed in Table 7 below. Per Onshore Oil and Gas Order No. 2., III., G. all the known formations listed in Table 1 will need to be isolated.

Table 7 – Minimum Allowable Cement Plug Program:

The target section of the well should be plugged by spotting 195’ (18 ft3/16 sx) of cement and squeezing (22 ft3/20 sx) additional cement. The plug should be tested by either tagging the plug with the work string or testing the plug to a minimum pump pressure of 500 psi, with no more than a 10 percent drop during a 15-minute period. If the pressure drop exceeds 10% during the observation period, the COR shall be contacted.

The 8-5/8” shoe and water bearing Castlegate formation will be addressed next. The 4-1/2” by 8-5/8” casing annular space should be isolated by perforating the 4-1/2” casing at 1840’, then placing a cement retainer at 1785’ and squeezing 322’ (78 sx) of cement below the retainer and spotting 267’ (22 sx) of cement on top of the retainer. The contractor should cement 322’ of the annulus area, 55’ below the retainer and 267’ on top of the retainer to ensure the formations are isolated. This plug should be tested by either tagging the plug with the work string, or pressuring to a minimum pump pressure of 500 psi, with no more than a 10 percent drop during a 15-minute period.

The 4-1/2” and 8-5/8” casing should be perforated at 230’ and a surface cement plug of at least 225’ should be placed in the production casing as well as across all other annuli. The top of this plug should be placed as near to the eventual casing cutoff point as possible. All casing shall be cut-off at the base of the cellar or 5 feet below final restored ground level (whichever is deeper). The well bore shall then be covered with a metal plate at least 1/4-inch-thick and welded in place. The well location and identity shall be permanently inscribed. A weep hole shall be left if a metal plate is welded in place.

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 25

MEGADON FEDERAL 1-15, GRAND COUNTY, UTAH

The Megadon Federal 1-15 well was drilled by Megadon Energy Corporation in the Salt Wash Field in February 1981 and originally completed in the Mississippian formation in May of 1981. The original Mississippian completion was abandoned in April 1993 to prepare for a horizontal recompletion in the Mississippian formation. Megadon Enterprises and Saranan Land Company initiated directional drilling operations in May 1993 but were unable to achieve necessary build rates to achieve horizontal well placement and the well was re-completed in Mississippian/Leadville formation in August 1993. The operator became insolvent in 2018 and the well became an orphan. In accordance with the requirement of 43 CFR 3162.3-4 (a) (b) and per Section XII of the Bureau of Land Management Onshore Oil and Gas Order No. 1, III.,XII., A., B., this well must be plugged and abandoned (P&A), the equipment must be salvaged, and the wellsite (including the mud pit) location must be reclaimed.

A review of offset wells in the Megadon Federal 1-15 area does not indicate the presence of H2S in the Salt Wash Field. The Federal 1-15 experienced “Hole making lots of water” while drilling in/near the Wolfcamp Formation Top at 2980’ as reported during drilling operations. Water flows are common in the Salt Wash Field, as offset wells have experienced water flows at varying depths from 50’ to 3500’ and flow intensity documented as high as 50 BPH. Most of the wells in the field were drilled between 1960 and 1985 and have changed ownership multiple times. A recent nearby P&A project located within 1.5 miles of the Megadon 1-15 experienced water flows and substantial casing and tubing corrosion, with heavy scaling present that ultimately resulted in suspension of fishing operations. Tubular corrosion is common for wells in this area and thought to be exacerbated by underground CO2 influxes.

The well makes very little gas production (0.5 MCFPD or less, estimate from DST1 in 1981), with no indication of H2S in the past operations reports, this can be taken as a baseline of what to expect in the well. This was based on a daily drilling and daily completion histories received from Megadon Enterprises Inc in a Well Completion Report dated June 30, 1981 and a review of offset wells with a 1.5-mile radius of the Federal 1-15.

Although no H2S has been reported, as a precaution H2S safety measures should be readily available if H2S is encountered, to support well shut in and allow for re-planning of operations to meet requirements as stipulated in Onshore Order No.6 – H2S Operations.

GEOLOGY:

Onshore Oil and Gas Order No. 2 Section III., G. states, “all formations bearing usable-quality water, oil, gas, or geothermal resources, and/or a prospectively valuable deposit of minerals shall be protected.”

Figure 1 below identifies all the Geologic stratigraphic units in Grand County with the water bearing formations that will need to be protected. It is taken from “Geologic Map of the Moab and Eastern Part of the San Rafael Desert 30' X 60' Quadrangles, Grand and Emery Counties, Utah, and Mesa County, Colorado” by Hellmut H. Doelling published by Utah Geological Survey, a division of Department of Natural Resources, in 2002.

Table 2 below lists all the formations that were encountered for the Federal 1-15 well. Per Onshore Oil and Gas Order No. 2, these formations will need to be isolated.

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 26

Figure 4 – Geologic Stratigraphic Units

Oil Bearing Formation

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 27

Formations listed in Table 1 below were provided by Megadon Enterprises Inc completion and re-completion reports from Well Completion Report dated June 30, 1981 and a recompletion Sundry Notice dated April 14, 1993. You can find them under the well files from the Utah State website, Utah Division of Oil, Gas and Mining (UDOGM), https://oilgas.ogm.utah.gov/oilgasweb/.

The Megadon Federal 1-15 well is located in Grand County southwest of the I-70 Exit 175 (Floy Exit) approximately 12.6 miles. Take I-70 West from Exit 182 seven miles to Exit 175, turn left on Old US-50 and crossover I-70 for 0.4 miles, take Ruby Ranch Rd for 7.4 miles, turn left onto BLM 147/Ruby Ranch Rd 0.5, turn right to stay on BLM 147/Ruby Ranch Rd 3.9 miles, turn left 0.6 miles, slight left 0.3 miles to Megadon 1-15 (GPS coordinates N 38.80693o W 110.04034o). The wellsite is just Northeast of the White Wash Sands Dunes Recreation Area. See Figure 2 below. There is a washout of the access road just prior to entering the well pad that will need to be improved before equipment can be moved onto the well pad.

Figure 5 – Map of the orphaned Wells:

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 28

Below are tables that details the casing and tubing used for the well. Intervals of the open-hole and

Table 4 – Casing and Open Hole Details:

Table 5 – Open Hole Sections and Tubing Details:

For current and planned P&A Wellbore Diagrams for the Megadon Federal 1-15 well, refer to Appendix A.

Below is the inventory list of the production equipment that was left behind by the operator. The equipment will need to be removed from the location, along with any extra plugging equipment, materials, and trash left after P&A operations, before the reclamation can take place.

Lease U-31805:

Federal 1-15:

Items to be removed/reclaimed include, but are not limited to:

• Eaton Separator (S/N 0-8440)

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 29

• Natco Storage Tank 400 bbl (S/N 375T12) – This will need to be cleaned prior to moving

• Natco Storage Tank 400 bbl (S/N B-400011) – This will need to be cleaned prior to moving

• Natco Storage Tank 400 bbl (S/N ???) – This will need to be cleaned prior to moving

• Natco Storage Tank 400 bbl (S/N ???) – This will need to be cleaned prior to moving

• Propane Tank

• Vertical Tank

• Broken plastic storage tank

• Flow/transfer lines o Wellhead o Separator/treater to storage o Miscellaneous lines

• Guy wire/Rig anchors

• Miscellaneous tubing and site debris

• There is some trash on the adjoining P&A location that needs cleaned up. There is also a rat hole that needs to be filled in.

The well site has several a deep wash outs/gulley’s/ditches due to erosion and lack of proper site management.

A large and deep wash out (estimated to be six 12 feet deep by five 8 feet wide) is present at the end of the lease road to the well site that limits access to the well site by vehicles. This will require a 48” culvert be installed and covered with existing material to allow access to the location. Pull the culvert, the gates and panels when work is complete. The road does not need to be reclaimed at this time. The site is reasonably level but may require some compaction to firm up the well site soil for remediation access by heavy vehicles.

Several smaller washouts are present and will require attention. Full site remediation will be performed in accordance with appropriate guidelines and COA’s as stipulated in the APD, lease agreement and applicable Federal Guidelines. After removing production equipment and trash, recontouring needs are minimal. Push the East edge of the location down the hill toward the pit at the bottom. Just enough to make the slope more gradual and less noticeable. Pull the berm surrounding the pit below the pad in to fill the pit a little and to eliminate the berm.

The contractor will be responsible for determining the cement plugs for the Megadon Federal 1-15 well listed in Table 7 below. Per Onshore Oil and Gas Order No. 2., III., G. all the known formations listed in Table 2 will need to be isolated.

Weight Grade OD ID Depth Plug Top Bottom CR Btm Perf Length Sx

Surface 36# K-55 9 5/8" 8.921" 1846' 1 - Production Zone 8000' 8714' 8200' 645' 79

17# K-55 5 1/2" 4.892" 5000' 2 - Pardaox Salt 4900' 5100' 200' 29

20# N-80 5 1/2" 4.778" 5000'-8250' 3 - Wolfcamp 2850' 3050' 3050' 200' 83

OH 4 1/2" 8250'-8830' 4 - Suface csg shoe 1696' 1896' 1841' 1896' 250' 83

5 - Surface Surface 100' 100' 100' 22

Total Sx 296

Federal 1-15 Well Data

Casing /OH Data

Prod Csg

Plug Data (Class G type Yield = 1.15ft3/Sx)

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 30

Table 7 – Recommended Cement Plug Program:

Given the well bore configuration and history, it is assumed the tubing packer will not release, therefore, cut tubing off at 8230’ and proceed with plugging the well.

The open hole target section of the well should be plugged by installing a cement retainer 50’ above the casing shoe/top of window at 8200’ and pumping 514’ (50 sx) of cement below the retainer. Another 200’ (29 sx) of cement should be placed above the cement retainer to properly isolate the target zone. The plug should be tested by either tagging the plug with the work string or testing the plug to a minimum pump pressure of 500 psi, with no more than a 10 percent drop during a 10-minute period. If the pressure drop exceeds 10% during the observation period, the COR shall be contacted.

The next plug should be set to isolate the Paradox salt zone top at 5100’. A 200’ (29 sx) balanced plug of cement should be placed from 5100’ to 4900’.

The next cement plug should be set in and out of the 5 ½” casing. Perforate at 3050’ and pump cement up to 2850’. Pump 83 sx of cement in the 5 ½” and up the annulus..

A water bearing zone was reported at 2980’ in the 5-1/2” casing by 8-3/4” annular space, it should be isolated by perforating the 5-1/2” casing at 3050’, then setting a CICR at 3000’. Then circulate cement through the CICR and up to 2850’ in the annulus and up to 2850’ in the 5 ½” casing.

The Kayenta, Navajo and the Wingate formations are isolated by the cement of the 9-5/8” casing. The 5-1/2” casing by 9-5/8” annular space should be isolated by perforating the 5-1/2” casing at 1896’, then placing a cement retainer at 1841’ (5’ above the 9-5/8” shoe) and squeezing 250’ (63 sx) of cement below the retainer and spotting 150’ (20 sx) of cement on top of the retainer. The contractor should cement 250’ of the annulus area, 100’ below the retainer and 150’ above the retainer to ensure the formations are isolated. This plug should be tested by either tagging the plug with the work string, or pressuring to a minimum pump pressure of 500 psi, with no more than a 10 percent drop during a 10-minute period.

The 5-1/2” casing should be perforated at +100’ and a surface cement plug of at least 100 feet shall be placed in the production casing as well as across all other annuli. The top of this plug should be placed as near to the eventual casing cutoff point as possible. All casing shall be cut-off at the base of the cellar or 3 feet below final restored ground level (whichever is deeper). The well bore shall then be covered with a metal plate at least 1/4-inch-thick and welded in place. The well location and identity shall be permanently inscribed. A weep hole shall be left if a metal plate is welded in place.

8/9/20219/2/2021 11 Orphan Wells P&A Statement of Work - Utah 2021 31

TXO SPRINGS 9-1, GRAND COUNTY, UTAH

The TXO Springs 9-1 well was drilled by Ambra Oil in the Cisco Field in September 1981 and was completed in the Brushy Basin Member of the Morrison Formation. The well was originally perforated from 1934 to 1944.

Later, additional perforations were added from the Dakota…