B08_Attach_6_Revised_SOW_0001.docx

STATEMENT OF WORK

Witmer Lease Orphan Well Abandonment Project Federal Lease CACA 45619 Kern Front Oilfield T28S, 27E, Section 2 Kern County, CA

Bureau of Land Management (BLM), Bakersfield Field Office

1.0 BACKGROUND

This project entails the abandonment of 5 federal orphan wells on federal lease CACA 45619. CACA 45619 has 5 orphan oil wells: Witmer A 2-8 (API No. 0402952100), Witmer B West 1-1 (API 0402949344), Witmer B West 2-4 (API 0402952105), Witmer B West 8-6 (API 0402963351), and Witmer A West 8-7 (0402940950). On August 26, 2016, the BLM issued a 60 Day Written Order to the operator/lessee to either return the wells back into production or to plug and abandon the idle wells. The Written Order was returned as unclaimed and on January 19, 2017, the lease was terminated due to production cessation. The wells on CACA 045619 subsequently became federal orphan wells.

2.0 OBJECTIVE

The purpose of the proposed action is to plug and abandon 5 orphan wells and clean up around the well heads. The Bureau of Land Management, Bakersfield Field Office is seeking qualified contractors for the 5 well abandonments and associated clean-up on lease CACA 45619. Abandonment procedures will be conducted in compliance with federal and state regulations. The Contractor shall complete the Description of Work as outlined in Section 3.0

3.0 DESCRIPTION OF WORK

The Contractor will complete the following work as described below. For details on specific tasks, refer to Section 4.0 and the well abandonment programs attached in the appendices.

1. Well Abandonment:

a. Remove all concrete, cut casing/pipe, scrap metal, solid/liquid waste, oily soil and trash from each well pad for proper disposal at a BLM approved disposal location.

b. Place and test cement plugs across any open hydrocarbon-bearing formations, casing shoes, and freshwater aquifers.

c. Cover wellbore with a steel plate, a minimum 1/4” thick, containing the last five digits of the API number, well name, and well number.

d. Clean and grade well site.

4.0 TASKS TO BE ACCOMPLISHED

1. Well Abandonment, reference Appendices below:

a. The abandonment tasks for the five federal wells will conform to the requirements outlined by federal and state guidelines. Additionally, the abandonment procedures shall comply with all conditions of approval outlined by the BLM Petroleum Engineer.

b. A report describing the abandonment procedure will be prepared and signed by the Contractor.

c. A Notice of Intention to Abandon/Re-Abandon Well form (Form 3160-5) shall be completed and submitted to California Geologic Energy Management Division (CalGem) by the Contractor.

d. The surface casing shall be equipped with a minimum of 2M BOPE, lubricator, or other device capable of complete shut-in and control of the well.

e. All formations bearing usable-quality water, oil, gas, or geothermal resources are to be protected.

f. Appropriate cement quantity and type will be used for the cement plugs.

g. Casing shall be cut off 5 feet below the final restored ground level.

h. The wellbore shall be covered with a steel plate containing the last five digits of the API number, well name, and well number.

i. The pad will be graded and leveled as much as feasible.

j. Remove all oily soil, spills, scrap metal, concrete, solid/liquid waste (circulated fluids) and trash from each well pad for disposal at an approved disposal location.

k. A 24-hour notification shall be given to the BLM prior to commencing operations.

l. The well pad will be graded and leveled as much as feasible.

m. All applicable federal, state, county, and city safety regulations and practices shall be strictly adhered to at all times. These regulations and practices shall include, but not limited to, the wearing of approved safety hats, shoes, glasses, etc. No unauthorized personnel will be allowed in the project area. At the start of every shift, there will be a health and safety meeting.

n. The Contractor will submit a Well Abandonment History to the BLM outlining abandonment activities as well as submit a History of Oil or Gas Well – form OG103 to California Geologic Energy Management Division (CalGem) within 30 days of completion of plugging operations.

o. A BLM Oil & Gas Inspector (PET) will be onsite to witness each plug, top of cement and will witness the tag. If a BLM inspector is not available to witness this phase of the Abandonment (ABD) operation, The California Geological Energy Management Division (CalGEM) will be notified, and an Oil & Gas Inspector will be requested to witness the tag. The BLM inspector and COR will determine if the contractor is following the ABD program/construction plan.

p. If any downhole issues are encountered the onsite contractor will notify the BLM Petroleum Engineer (PE) and will document any changes to the ABD program. Any variance with the ABD program must be approved by the PE.

5.0 LAND OWNERSHIP

Lease CACA 45619 is split estate. The subsurface of the lease is owned by the United States of America (Bureau of Land Management) and the surface is privately owned.

6.0 LOCATION

The 279.03 acres lease is located northeast of Bakersfield within Kern Front oilfield. See Figure 1 for a map of the project area. The project site lies directly east of U.S. Highway 65. Local accommodation and commercial services are available within 5 to 10 miles from the project area in the city of Bakersfield. See figure 2 to 23 for worksite project photos.

7.0 HAZARDS

1. Worksite Hazard

a. Known hazards on this worksite are spiders, snakes, trip and fall hazards.

b. H2S may be present in this field.

2. Road Access

a. The lease has been inactive for many years, therefore much of the roads now contain overgrown weeds and plants that cover the roads to the idle wells. Site preparation will be required at wellsite to provide a level area and path for the rig which will be the responsibility of the Contractor.

8.0 ACCESS

Ground access to the worksite traveling north on U.S. Highway 65 is to turn right onto James Road. For 1.7 miles, turn left onto Oilfields Road and travel for 4.4 miles to the entrance of the federal lease.

9.0 CONTRACTOR FURNISHED PROPERTY AND SERVICES

The Contractor shall furnish all permits, labor, supervision, vehicles, equipment, materials, supplies, and incidentals necessary to perform the wells and facility abandonment.

10.0 DELIVERABLES

The general period of performance for this contract shall be from the date of the award for a period of one calendar year. This is estimated to be from October 1, 2021 through September 31, 2022.

1. Final Project Summary Report

a. For work required under Sections 3.0 and 4.0, the Contractor shall deliver the documents to the COR. The Contractor will provide a Final Project Summary document to BLM within 30 days of completion of work. This report will contain a summary description of all materials removed from the lease including the following: the weights, volumes, and final disposal or recycling locations of all steel, soil, concrete, wood, pipelines, plastic, wire, conduit, demolition debris, junk, and trash removed from BLM and private land.

11.0 BLM CONTACT INFORMATION – Contracting Officer Representative (COR)

The BLM Contracting Officer (CO) is the designated individual who has the authority to commit or obligate funds of the Government. Contracting officers have the authority to enter into, administer, or terminate contracts and make related determinations and findings. The BLM Contracting Officer’s Representative (COR) is the point of contact with technical responsibility for implementation, compliance, and administration of the contract.

12.0 NOTICE REGARDING LATE DELIVERY

In the event the Contractor encounters difficulty in meeting performance requirements, contract delivery schedule or date, or anticipates difficulty in complying with the established work schedule, the Contractor shall immediately notify the COR thereof in writing, giving pertinent details, including the date expected to complete performance or make delivery. Provided, however, that this data shall be informational only in character and that receipt thereof shall not be construed as a waiver by the government of any contract delivery schedule or date, or any rights or remedies provided by law under this contract.

13.0 SPECIAL CONTRACT REQUIREMENTS

1. Pre-work Conference

a. Immediately following award of the contract and prior to initiating abandonment operations, a pre-work conference shall be held between the Contractor and COR for the purpose of familiarizing the Contractor with the project area, BLM facilities, means for accessing the area locations, and specific responsibilities of each party. The Contractor and the COR in consultation shall determine the date, time, and location of the meeting. The Contractor shall ensure that any and all persons responsible for supervision, as well as field crew leaders for the contract work are present at this meeting.

14.0 REDIRECTION OF EFFORT

Notwithstanding any other provision of the contract, the Contracting Officer (CO) shall be the only individual authorized to redirect the effort or in any way amend any of the terms of the contract.

15.0 TECHNICAL DIRECTION

The performance of work hereunder shall be subject to the technical direction of the COR appointed in writing by the Contracting Office. The COR and the Contractor shall work together closely to ensure that all contractual requirements are being met. The term “technical direction” is defined to include, without limitation, the following:

1. Contractor shall provide weekly or as needed verbal progress report to the COR until the final deliverables are received by BLM.

2. Providing of information to the Contractor which assists in the interpretation of drawings, specification, or technical portions of the work description.

3. Review, and where required by the contract, approval of technical reports, drawing, specifications, and technical information delivered by the Contractor to the government under contract.

4. Technical direction must be within the general scope of work stated in the contract. The COR does not have the authority to issue any technical direction which:

a. Constitutes an assignment of additional work outside the general scope of the contract

b. Constitutes a change as defined in the contract clause entitled, “Changes”

c. In any manner causes an increase or decrease in the total contract price or the time required for contract performance

d. Changes any of the expressed terms, conditions, or specifications of the contract. The COR shall notify the Contracting Officer well in advance of the anticipated issuance of any technical directions which the COR feels may fall within categories (a) through (d) preceding.

5. All technical directions shall be issued in writing by the COR or shall be confirmed by him/her in writing within five (5) working days after issuance.

6. The Contractor shall proceed promptly with the performance of technical directions duly issued by the COR in the manner prescribed by this provision.

7. If, in the opinion of the Contractor, any instruction or direction issued by the COR is within one of the categories as defined in (a) through (d) preceding, the Contractor shall not proceed but shall notify the Contracting Officer in writing within five (5) working days after the receipt of any such instruction or direction. Upon receiving such notification from the Contractor, the Contracting Officer shall issue an appropriate contract modification or advise the Contractor in writing that, in his/her opinion, the technical direction is within the scope of this article and does not constitute a change under the “Changes” clause of the contract. The Contractor shall thereupon proceed immediately with the directions given. A failure of the parties to agree upon the nature of the instruction or direction or upon the contract action to be taken with respect thereto shall be subject to the contract clause entitled “Disputes”.

16.0 FIGURES

Figure 1. Map of project site

Figure 2. Well Witmer B West 8-7 (missing well sign). Figure 3. Well Witmer B West 1-1

Figure 4. Well Witmer A 2-8

Figure 5. Well Witmer B West 2-4 (incorrect well sign).

Figure 6. Witmer B West 8-6

APPENDIX 1:

Bureau of Land Management

SPECIFIC CONDITIONS OF APPROVAL

Lease: CACA 45619 Well: “Witmer A USL” #8-7

1. A 2M BOP system with hydraulic controls shall be installed on the surface casing and a 2M lubricator shall be used for wireline operations.

2. Hole fluid of a quality and in sufficient quantity shall be used to control all sub surface conditions in order to prevent blowouts.

3. Prior to commencing operations, the contractor shall instruct all rig personnel on the potential hazard and control of wells which operate in active steam zones.

4. All portions of the hole not plugged with cement shall be filled with inert mud fluid having a minimum gel-shear strength of 26 lb/100 sq. ft.

5. A diligent effort shall be made to clean out to 1632' (ED) so the well can be plugged with cement from that depth. If unable to clean out to 1632', notify the BLM Petroleum Engineer, Silvet Holcomb at 661-619-0113 or email at sholcomb@blm.gov for a revised abandonment program.

6. Cement Plugs:

Cement Plug No. 1: 1632’ - 1010' or higher. This plug shall be tagged.

Surface Plug: Mix and pump cement from top of cement (TOC) to surface. Down squeeze until an adequate pressure is obtained. Leave pressure on well overnight. Fill all annular spaces with cement ensuring a minimum of 50’ cement at surface inside and outside the casings.

Please Note: While reviewing the approved plug and abandonment permits from the BLM and CalGem, operators/contractors on federal oil and gas leases shall use the most stringent requirements of the two agencies for all downhole operations.

Bureau of Land Management

Lease: CACA 45619 Well: “USL Witmer B West” #8-7

1. All lease operations are subject to the lease terms and stipulations, the regulations of 43 CFR Part 3100, and any written instructions or orders of the Authorized Officer. Contractors have the responsibility to see that their construction operations are conducted in manner which also conforms with the State and local laws. The General Contractor are held fully accountable for their subcontractors’ compliance with the requirements of the approved permit.

2. No change shall be made in the approved program and/or BLM requirements without receiving prior approval from the BLM Petroleum Engineer (Silvet Holcomb @ 661-619-0113 or email at sholcomb@blm.gov.

3. A 24-hour notification shall be given to the BLM AT (661) 391-6151 (24-hour message line) during all hours (office hours, after hours, weekends, and holidays) prior to commencing completion/recompletion/abandonment operations. Please make sure to have the following information handy before you call:

Contractor name, field name, federal lease number, well name and number, API number, type of well (oil well, injection well/disposal well), Section, Township, Range; Rig number, Type of operation such as plug and abandonment of well, your POC name and phone number.

4. Cement used for abandonment plugs may be either API grade "neat" cement or 1:1 pozzolan cement. Extenders, such as bentonite may be added to the cement but shall not exceed 3%.

Silica flour or silica sand shall be added to cement exposed to static bottom hole temperatures above 230 degrees Fahrenheit to prevent heat degradation of the cement.

5. No cement plug, except the surface plug, shall be less than 25 sacks without the approval of the BLM. All cement plugs, except the surface plug, will have sufficient slurry volume to fill a minimum of 100' of hole/casing, plus an additional 10% of slurry for each 1000' of depth.

6. Long sections of open hole shall be plugged with cement every 3000 ft.

7. A cement plug, a minimum of 50' in length, shall be placed in all casing annuli which extends to the surface. Surface pours may be used to place annuli plugs provided the annuli contain only water. A 2:1 sand cement mixture is acceptable for annuli plugs.

8. All casings shall be cut off at the base of the cellar or 5' below the final restored ground level, whichever is deeper. The wellbore shall be covered with a steel plate, a minimum of 1/4" thick, and welded in place. A weep hole shall be left in the plate. No dry hole marker needs to be erected.

9. Fluids circulated from the well will be placed in portable tank(s) and properly disposed of upon completion of the plugging operations. Any significant volume of oil recovered from the portable tanks shall be reclaimed and sold. Any reclaimed oil from these wells can be credited towards their contract (if possible).

10. SUBSEQUENT REPORT OF ABANDONMENT (Form 3160-5) of the downhole plugging operations must be filed as a paper copy at (35126 McMurtrey Ave. Bakersfield, CA 93308) or electronically via email to Diana Cruz at dcruz@blm.gov, within thirty (30) days of completion of the downhole operations.

11. HOT WORK:

The following precautions are to be observed while conducting any hot work:

This area may contain historic items related to the development of the Kern County oil industry. All historic artifacts, features, and historic trash piles are to be avoided during the drilling/plugging operations, including items that are often deemed “junk” by non-cultural resource personnel. If ground disturbing activities unearth any of the above mentioned items, all work at the location must cease and the Bakersfield Field Office BLM archaeologist must be contacted in order to determine the age and significance and to identify proper mitigation procedures.

Within five (5) business days, the Authorized Officer will evaluate the discovery and inform the operator of actions that will be necessary to prevent loss of significant cultural or scientific values.

The contractor shall be responsible for the cost of any mitigation required by the Authorized Officer. The Authorized Officer will provide technical and procedural guidelines for the conduct of mitigation. Upon verification from the Authorized Officer that the required mitigation has been completed, the operator shall be allowed to resume operations. For any questions regarding this COA, contact the BLM at 661-391-6000 and ask to speak to an archaeologist.

In the event of inadvertent discovery of paleontological resources during project implementation, the BLM Field Office Paleontological Staff and the BLM Field Manager (661-391-6000) shall be immediately notified by personnel responsible for the project. All work at the site of discovery, and in any other locations where damage to the discovery could occur, shall cease until written approval by the BLM.

SURFACE RECLAMATION:

1. Clean well site and remove all solid/liquid waste, concrete, cut pipe, oily soil and trash and dispose of off lease at an appropriate disposal facility.

2. Take care to minimize impacts to existing saltbush. Remove only enough vegetation to access the well head and provide a fire safe work site. Avoid adjacent vegetation/habitat/burrows (if any).

3. No off-road vehicle travel outside the approved project area unless authorized by BLM Natural Resource Specialist or COR.

4. All vehicles, equipment, and materials shall be restricted to roads and facilities or previously cleared/disturbed areas unless authorized by BLM Natural Resource Specialist.

5. Site Restoration: The well pad will be graded and leveled as much as feasible.

6. If you have any questions concerning rehabilitation of the well site, please contact Danny Ojeda – BLM COR at (661) 391-6152 (office), or (661) 336-8460 (work cell).

APPENDIX 2:

SPECIFIC CONDITIONS OF APPROVAL

Lease: CACA 45619 Well: “USL Witmer A” #2-8

1. A 2M BOP system with hydraulic controls shall be installed on the surface casing and a 2M lubricator shall be used for wireline operations.

2. Hole fluid of a quality and in sufficient quantity shall be used to control all sub surface conditions in order to prevent blowouts.

3. Prior to commencing operations, the contractor shall instruct all rig personnel on the potential hazard and control of wells which operate in active steam zones.

4. A diligent effort shall be made to clean out to 1675' (ED) so the well can be plugged with cement from that depth. If unable to clean out to 1675', notify the BLM Petroleum Engineer, Silvet Holcomb at 661-619-0113 or email at sholcomb@blm.gov for a revised abandonment program.

5. Cement Plugs:

Plug No. 1: 1675’ - 1438' or higher (top of liner @ 1538’). This plug shall be tagged.

Surface Plug: Mix and pump cement from top of cement (TOC) to surface. Down squeeze until an adequate pressure is obtained. Leave pressure on well overnight. Fill all annular spaces with cement ensuring a minimum of 50’ cement at surface inside and outside the casings.

Please Note: While reviewing the approved plug and abandonment permits from the BLM and CalGem, operators/contractors on federal oil and gas leases shall use the most stringent requirements of the two agencies for all downhole operations.

GENERAL REQUIREMENTS

WELL ABANDONMENT

Lease: CACA 45619 Well: “USL Witmer A” #2-8

1. All lease operations are subject to the lease terms and stipulations, the regulations of 43 CFR Part 3100, and any written instructions or orders of the Authorized Officer. Contractors have the responsibility to see that their construction operations are conducted in manner which also conforms with the State and local laws. The General Contractor are held fully accountable for their subcontractors’ compliance with the requirements of the approved permit.

2. No change shall be made in the approved program and/or BLM requirements without receiving prior approval from the BLM Petroleum Engineer (Silvet Holcomb @ 661-619-0113 or email at sholcomb@blm.gov.

9. Fluids circulated from the well will be placed in portable tank(s) and properly disposed of upon completion of the plugging operations. Any significant volume of oil recovered from the portable tanks shall be reclaimed and sold. Any reclaimed oil from these wells can be credited towards their contract (if possible).

10. SUBSEQUENT REPORT OF ABANDONMENT (Form 3160-5) of the downhole plugging operations must be filed as a paper copy at (35126 McMurtrey Ave. Bakersfield, CA 93308) or electronically via email to Diana Cruz at dcruz@blm.gov, within thirty (30) days of completion of the downhole operations.

11. HOT WORK:

The following precautions are to be observed while conducting any hot work:

This area may contain historic items related to the development of the Kern County oil industry. All historic artifacts, features, and historic trash piles are to be avoided during the drilling/plugging operations, including items that are often deemed “junk” by non-cultural resource personnel. If ground disturbing activities unearth any of the above-mentioned items, all work at the location must cease and the Bakersfield Field Office BLM archaeologist must be contacted in order to determine the age and significance and to identify proper mitigation procedures.

Within five (5) business days, the Authorized Officer will evaluate the discovery and inform the operator of actions that will be necessary to prevent loss of significant cultural or scientific values.

The contractor shall be responsible for the cost of any mitigation required by the Authorized Officer. The Authorized Officer will provide technical and procedural guidelines for the conduct of mitigation. Upon verification from the Authorized Officer that the required mitigation has been completed, the operator shall be allowed to resume operations. For any questions regarding this COA, contact the BLM at 661-391-6000 and ask to speak to an archaeologist.

In the event of inadvertent discovery of paleontological resources during project implementation, the BLM Field Office Paleontological Staff and the BLM Field Manager (661-391-6000) shall be immediately notified by personnel responsible for the project. All work at the site of discovery, and in any other locations where damage to the discovery could occur, shall cease until written approval by the BLM.

SURFACE RECLAMATION:

1. Clean well site and remove all solid/liquid waste, concrete, cut pipe, oily soil and trash and dispose of off lease at an appropriate disposal facility.

2. Take care to minimize impacts to existing saltbush. Remove only enough vegetation to access the well head and provide a fire safe work site. Avoid adjacent vegetation/habitat/burrows (if any).

3. No off-road vehicle travel outside the approved project area unless authorized by BLM Natural Resource Specialist or COR.

4. All vehicles, equipment, and materials shall be restricted to roads and facilities or previously cleared/disturbed areas unless authorized by BLM Natural Resource Specialist.

5. Site Restoration: The well pad will be graded and leveled as much as feasible.

6. If you have any questions concerning rehabilitation of the well site, please contact Danny Ojeda – BLM COR at (661) 391-6152 (office), or (661) 336-8460 (work cell).

APPENDIX 3:

SPECIFIC CONDITIONS OF APPROVAL

Lease: CACA 45619 Well: “USL Witmer B West” # 1-1

1. A 2M BOP system with hydraulic controls shall be installed on the surface casing and a 2M lubricator shall be used for wireline operations.

2. Hole fluid of a quality and in sufficient quantity shall be used to control all sub surface conditions in order to prevent blowouts.

3. Prior to commencing operations, the contractor shall instruct all rig personnel on the potential hazard and control of wells which operate in active steam zones.

4. All portions of the hole not plugged with cement shall be filled with inert mud fluid having a minimum gel-shear strength of 26 lb/100 sq. ft.

5. A diligent effort shall be made to clean out to 1583' so the well can be plugged with cement from that depth. If unable to clean out to 1583', notify the BLM Petroleum Engineer, Silvet Holcomb at 661-619-0113 for a revised abandonment program.

6. Cement Plugs:

Plug No. 1: 1583’ - 1356' or higher (top of liner @ 1456’). This plug shall be tagged.

Surface Plug: Mix and pump cement from top of cement to surface. Down squeeze until an adequate pressure is obtained. Leave pressure on well overnight. Fill all annular spaces with cement ensuring a minimum of 50’ cement at surface inside and outside the casings.

Please Note: While reviewing the approved plug and abandonment permits from the BLM and CalGem, operators/contractors on federal oil and gas leases shall use the most stringent requirements of the two agencies for all downhole operations.

Bureau of Land Management

GENERAL REQUIREMENTS

WELL ABANDONMENT

Lease: CACA 45619 Well: “USL Witmer B West” # 1-1

1. All lease operations are subject to the lease terms and stipulations, the regulations of 43 CFR Part 3100, and any written instructions or orders of the Authorized Officer. Contractors have the responsibility to see that their construction operations are conducted in manner which also conforms with the State and local laws. The General Contractor are held fully accountable for their subcontractors’ compliance with the requirements of the approved permit.

2. No change shall be made in the approved program and/or BLM requirements without receiving prior approval from the BLM Petroleum Engineer (Silvet Holcomb @ 661-619-0113 or email at sholcomb@blm.gov.

3. A 24-hour notification shall be given to the BLM AT (661) 391-6151 (24-hour message line) during all hours (office hours, after hours, weekends, and holidays) prior to commencing completion/recompletion/abandonment operations. Please make sure to have the following information handy before you call:

Contractor name, field name, federal lease number, well name and number, API number, type of well (oil well, injection well/disposal well), Section, Township, Range; Rig number, Type of operation such as plug and abandonment of well, your POC name and phone number.

4. Cement used for abandonment plugs may be either API grade "neat" cement or 1:1 pozzolan cement. Extenders, such as bentonite may be added to the cement but shall not exceed 3%. Silica flour or silica sand shall be added to cement exposed to static bottom hole temperatures above 230 degrees Fahrenheit to prevent heat degradation of the cement.

5. No cement plug, except the surface plug, shall be less than 25 sacks without the approval of the BLM. All cement plugs, except the surface plug, will have sufficient slurry volume to fill a minimum of 100' of hole/casing, plus an additional 10% of slurry for each 1000' of depth.

6. Long sections of open hole shall be plugged with cement every 3000 ft.

9. Fluids circulated from the well will be placed in portable tank(s) and properly disposed of upon completion of the plugging operations. Any significant volume of oil recovered from the portable tanks shall be reclaimed and sold. Any reclaimed oil from these wells can be credited towards their contract (if possible).

10. SUBSEQUENT REPORT OF ABANDONMENT (Form 3160-5) of the downhole plugging operations must be filed as a paper copy at (35126 McMurtrey Ave. Bakersfield, CA 93308) or electronically via email to Diana Cruz at dcruz@blm.gov, within thirty (30) days of completion of the downhole operations.

11. HOT WORK:

The following precautions are to be observed while conducting any hot work:

12. HISTORIC, CULTURAL, and PALEONTOLOGICAL RESOURCES:

The contractor shall be responsible for informing all persons associated with this project that they shall be subject to prosecution for damaging, altering, excavating or removing any archaeological, historical (see below), or vertebrate fossil objects or site (ARPA 1979. (as amended) Sec. 6, Sec. 7). If archaeological, historical, or vertebrate fossil materials are discovered, the operator shall suspend all operations that further disturb such materials and immediately contact the Authorized Officer.

This area may contain historic items related to the development of the Kern County oil industry. All historic artifacts, features, and historic trash piles are to be avoided during the drilling/plugging operations, including items that are often deemed “junk” by non-cultural resource personnel. If ground disturbing activities unearth any of the above mentioned items, all work at the location must cease and the Bakersfield Field Office BLM archaeologist must be contacted in order to determine the age and significance and to identify proper mitigation procedures.

Within five (5) business days, the Authorized Officer will evaluate the discovery and inform the operator of actions that will be necessary to prevent loss of significant cultural or scientific values.

The contractor shall be responsible for the cost of any mitigation required by the Authorized Officer. The Authorized Officer will provide technical and procedural guidelines for the conduct of mitigation. Upon verification from the Authorized Officer that the required mitigation has been completed, the operator shall be allowed to resume operations. For any questions regarding this COA, contact the BLM at 661-391-6000 and ask to speak to an archaeologist.

In the event of inadvertent discovery of paleontological resources during project implementation, the BLM Field Office Paleontological Staff and the BLM Field Manager (661-391-6000) shall be immediately notified by personnel responsible for the project. All work at the site of discovery, and in any other locations where damage to the discovery could occur, shall cease until written approval by the BLM.

1. Clean well site and remove all solid/liquid waste, concrete, cut pipe, oily soil and trash and dispose of off lease at an appropriate disposal facility.

2. Take care to minimize impacts to existing saltbush. Remove only enough vegetation to access the well head and provide a fire safe work site. Avoid adjacent vegetation/habitat/burrows (if any).

3. No off-road vehicle travel outside the approved project area unless authorized by BLM Natural Resource Specialist or COR.

4. All vehicles, equipment, and materials shall be restricted to roads and facilities or previously cleared/disturbed areas unless authorized by BLM Natural Resource Specialist.

5. Site Restoration: The well pad will be graded and leveled as much as feasible.

6. If you have any questions concerning rehabilitation of the well site, please contact Danny Ojeda – BLM COR at (661) 391-6152 (office), or (661) 336-8460 (work cell).

APPENDIX 4:

SPECIFIC CONDITIONS OF APPROVAL

Lease: CACA 45619 Well: “USL Witmer B West” #2-4

1. A 2M BOP system with hydraulic controls shall be installed on the surface casing and a 2M lubricator shall be used for wireline operations.

2. Hole fluid of a quality and in sufficient quantity shall be used to control all sub surface conditions in order to prevent blowouts.

3. Prior to commencing operations, the contractor shall instruct all rig personnel on the potential hazard and control of wells which operate in active steam zones.

4. All portions of the hole not plugged with cement shall be filled with inert mud fluid having a minimum gel-shear strength of 26 lb/100 sq. ft.

5. A diligent effort shall be made to clean out to 1610' (ED) so the well can be plugged with cement from that depth. If unable to clean out to 1610', notify the BLM Petroleum Engineer, Silvet Holcomb at 661-619-0113 or email at sholcomb@blm.gov for a revised abandonment program.

6. Cement Plugs:

Cement Plug No. 1: 1610’ - 1225' or higher (top of liner @ 1325’). This plug shall be tagged.

Surface Plug: Mix and pump cement from top of cement (TOC) to surface. Down squeeze until an adequate pressure is obtained. Leave pressure on well overnight. Fill all annular spaces with cement ensuring a minimum of 50’ cement at surface inside and outside the casings.

Please Note: While reviewing the approved plug and abandonment permits from the BLM and CalGem, operators/contractors on federal oil and gas leases shall use the most stringent requirements of the two agencies for all downhole operations.

8. SURFACE RECLAMATION:

See last page of this approval.

Bureau of Land Management

Lease: CACA 45619 Well: “USL Witmer B West” #2-4

1. All lease operations are subject to the lease terms and stipulations, the regulations of 43 CFR Part 3100, and any written instructions or orders of the Authorized Officer. Contractors have the responsibility to see that their construction operations are conducted in manner which also conforms with the State and local laws. The General Contractor are held fully accountable for their subcontractors’ compliance with the requirements of the approved permit.

2. No change shall be made in the approved program and/or BLM requirements without receiving prior approval from the BLM Petroleum Engineer (Silvet Holcomb @ 661-619-0113 or email at sholcomb@blm.gov.

3. A 24-hour notification shall be given to the BLM AT (661) 391-6151 (24-hour message line) during all hours (office hours, after hours, weekends, and holidays) prior to commencing completion/recompletion/abandonment operations. Please make sure to have the following information handy before you call:

Contractor name, field name, federal lease number, well name and number, API number, type of well (oil well, injection well/disposal well), Section, Township, Range; Rig number, Type of operation such as plug and abandonment of well, your POC name and phone number.

4. Cement used for abandonment plugs may be either API grade "neat" cement or 1:1 pozzolan cement. Extenders, such as bentonite may be added to the cement but shall not exceed 3%.

Silica flour or silica sand shall be added to cement exposed to static bottom hole temperatures above 230 degrees Fahrenheit to prevent heat degradation of the cement.

5. No cement plug, except the surface plug, shall be less than 25 sacks without the approval of the BLM. All cement plugs, except the surface plug, will have sufficient slurry volume to fill a minimum of 100' of hole/casing, plus an additional 10% of slurry for each 1000' of depth.

6. Long sections of open hole shall be plugged with cement every 3000 ft.

9. Fluids circulated from the well will be placed in portable tank(s) and properly disposed of upon completion of the plugging operations. Any significant volume of oil recovered from the portable tanks shall be reclaimed and sold. Any reclaimed oil from these wells can be credited towards their contract (if possible).

10. SUBSEQUENT REPORT OF ABANDONMENT (Form 3160-5) of the downhole plugging operations must be filed as a paper copy at (35126 McMurtrey Ave. Bakersfield, CA 93308) or electronically via email to Diana Cruz at dcruz@blm.gov, within thirty (30) days of completion of the downhole operations.

11. HOT WORK:

The following precautions are to be observed while conducting any hot work:

12. HISTORIC, CULTURAL, and PALEONTOLOGICAL RESOURCES:

The contractor shall be responsible for informing all persons associated with this project that they shall be subject to prosecution for damaging, altering, excavating or removing any archaeological, historical (see below), or vertebrate fossil objects or site (ARPA 1979. (as amended) Sec. 6, Sec. 7). If archaeological, historical, or vertebrate fossil materials are discovered, the operator shall suspend all operations that further disturb such materials and immediately contact the Authorized Officer.

This area may contain historic items related to the development of the Kern County oil industry. All historic artifacts, features, and historic trash piles are to be avoided during the drilling/plugging operations, including items that are often deemed “junk” by non-cultural resource personnel. If ground disturbing activities unearth any of the above mentioned items, all work at the location must cease and the Bakersfield Field Office BLM archaeologist must be contacted in order to determine the age and significance and to identify proper mitigation procedures.

Within five (5) business days, the Authorized Officer will evaluate the discovery and inform the operator of actions that will be necessary to prevent loss of significant cultural or scientific values.

The contractor shall be responsible for the cost of any mitigation required by the Authorized Officer. The Authorized Officer will provide technical and procedural guidelines for the conduct of mitigation. Upon verification from the Authorized Officer that the required mitigation has been completed, the operator shall be allowed to resume operations. For any questions regarding this COA, contact the BLM at 661-391-6000 and ask to speak to an archaeologist.

In the event of inadvertent discovery of paleontological resources during project implementation, the BLM Field Office Paleontological Staff and the BLM Field Manager (661-391-6000) shall be immediately notified by personnel responsible for the project. All work at the site of discovery, and in any other locations where damage to the discovery could occur, shall cease until written approval by the BLM.

1. Clean well site and remove all solid/liquid waste, concrete, cut pipe, oily soil and trash and dispose of off lease at an appropriate disposal facility.

6. If you have any questions concerning rehabilitation of the well site, please contact Danny Ojeda – BLM COR at (661) 391-6152 (office), or (661) 336-8460 (work cell).

APPENDIX 5:

SPECIFIC CONDITIONS OF APPROVAL

Lease: CACA 45619 Well: “USL Witmer B West” #8-6

1. A 2M BOP system with hydraulic controls shall be installed on the surface casing and a 2M lubricator shall be used for wireline operations.

2. Hole fluid of a quality and in sufficient quantity shall be used to control all sub surface conditions in order to prevent blowouts.

3. Prior to commencing operations, the contractor shall instruct all rig personnel on the potential hazard and control of wells which operate in active steam zones.

4. All portions of the hole not plugged with cement shall be filled with inert mud fluid having a minimum gel-shear strength of 26 lb/100 sq. ft.

5. A diligent effort shall be made to clean out to 1482' (PBTD) so the well can be plugged with cement from that depth. If unable to clean out to 1482', notify the BLM Petroleum Engineer, Silvet Holcomb at 661-619-0113 or email at sholcomb@blm.gov for a revised abandonment program.

6. Cement Plugs:

Cement Plug No. 1: 1482’ - 1096' or higher (top of liner @ 1196’). This plug shall be tagged.

Surface Plug: Mix and pump cement from top of cement (TOC) to surface. Down squeeze until an adequate pressure is obtained. Leave pressure on well overnight. Fill all annular spaces with cement ensuring a minimum of 50’ cement at surface inside and outside the casings.

Please Note: While reviewing the approved plug and abandonment permits from the BLM and CalGem, operators/contractors on federal oil and gas leases shall use the most stringent requirements of the two agencies for all downhole operations.

Bureau of Land Management

Lease: CACA 45619 Well: “USL Witmer B West” #8-6

1. All lease operations are subject to the lease terms and stipulations, the regulations of 43 CFR Part 3100, and any written instructions or orders of the Authorized Officer. Contractors have the responsibility to see that their construction operations are conducted in manner which also conforms with the State and local laws. The General Contractor are held fully accountable for their subcontractors’ compliance with the requirements of the approved permit.

2. No change shall be made in the approved program and/or BLM requirements without receiving prior approval from the BLM Petroleum Engineer (Silvet Holcomb @ 661-619-0113 or email at sholcomb@blm.gov.

3. A 24-hour notification shall be given to the BLM AT (661) 391-6151 (24-hour message line) during all hours (office hours, after hours, weekends, and holidays) prior to commencing completion/recompletion/abandonment operations. Please make sure to have the following information handy before you call:

Contractor name, field name, federal lease number, well name and number, API number, type of well (oil well, injection well/disposal well), Section, Township, Range; Rig number, Type of operation such as plug and abandonment of well, your POC name and phone number.

4. Cement used for abandonment plugs may be either API grade "neat" cement or 1:1 pozzolan cement. Extenders, such as bentonite may be added to the cement but shall not exceed 3%.

Silica flour or silica sand shall be added to cement exposed to static bottom hole temperatures above 230 degrees Fahrenheit to prevent heat degradation of the cement.

5. No cement plug, except the surface plug, shall be less than 25 sacks without the approval of the BLM.