WELL FILE - ANDERSON NO. LL-3 WELL (SWDW)(API # 23-089-00068)(COMPRESSED).pdf

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Proposed Well Coordinates Latitude: 32.57299432 Longitude: -90,26244289

Actual Well Coordinates Latitude: Longitude:

Well Type: SWDW Well Status: Appears P&A/No Records

!Target Pro,,erty Description:

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Well Head in Place

Well Piping in Place

Storage Tanks (cfescr., size, etc.)

Description, size, oil present, etc.

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Evidence of Leaks lOdors. Visual, Audible)

Other (l'l?_n--gas) Odors Soil or Pavement Staining

Slres!iied _V~etation Leaks/Failures at Pits/Tanks biscolored Drains or Sumps

Downstream Ditch/Stream Staining/Sheen

Direction of Surface Drainage

Trash/Debris Present

Potentially Contaminated Seepage Areas

Adjoining Properties (Well,Residentlal,Agricultural,etc.)

1iieommon1'E~

Is the site in a coastal county?

Is the site near fresh or salt water habitats?

Evidence of Gopher Tortoise

Evidence of Black Pinesnake

Evidence of Dusl<}'_Gopher Frog Evidence of Red-cokaded Wood.e_ecker Evidence of .Yellow-blotched map turtle

Evidence of Least Tern(interior)

Evidence of Northern Long-eared or other Bal Species

Evidence of Louisiana Quillwort

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Bulldln.9._s or other structures on site Vilf so, approximtlte age:

Mounds or geographically, anomalous hills V"" Evidence of cemetaries or graves ~ Other observations of historical or cultural importance to consider for future work on site:

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l. B, GOIDMAN rR., JACl'-SOH

W. H, TATUM SR., lllPl.BY

April 6, 1994

Mr. J. R. Anderson, Jr.

Ansonia Farms Route 1 Box 10 Flora, Mississippi 39071

Re: Plugging of Orphan Well J. R. Anderson No. LL·3 Flora Field

Dear Mr. Anderson:

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500 GAEVMONT AVENUE SUITE E

JACKSON, MISSISSIPPI 3!l202

TELEPHONE 354-7142

A. RICKARD HENDERSON

STATE O!~ • ClA.S SUPEll\lISOR

TIM WA'l'C.ot.STER ATmRNEY fOlt ntE Ba.RD

We have determined that you may have an interest in certain property in Madison County, Mississippi, on which the above described abandoned oil and/or gas well is located. The owners/operators of this well have defaulted on their regulatory responsibility for the proper plugging of this well. The Mississippi State Oil and Gas Board has determined that this well, in its current condition, constitutes an imminent threat to the environment, and that the health, safety and welfare of the general public require that said well be properly plugged and abandoned. Therefore, the Board has declared this well as "orphan" and ordered the well to be plugged and abandoned according to the Oil and Gas Board's Statewide Rule 63(10).

Pursuant to Section 53-1·33 of the Mississippi Code of 1972, as amended, the Supervisor of the Mississippi State Oil and Gas Board can authorize others to go upon property on which such wells are located to carry out such operations. To that end, the Board has been or will soon be soliciting bids for the plugging of the well referred to above. Once a proper bid has been accepted, the Supervisor will authorize the best responsible and proper bidder to carry out the plugging of this well. It is possible that any equipment abandoned at the well site by the former operator will be removed as a result of the plugging operation.

Mr. Anderson April 6, 1994 Page Two

Should you have any questions concerning this matter, please contact Mr. Fred Hille at the Mississippi State Oil and Gas Board.

Sincer', /J , ;/ , a~~ Supervisorof the Mississippi State Oil and Gas Board

FIELD: FLORA

ANDERSON #l..L-3

::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::1

FORMULAS & CALCULATIONS FOR THE

ZONE OF ENDANGERING INFLUENCE

:==~:::::::==========::=:=:=:=:::::::=:::::::::::::::::::::::=:::/:=:::::::::::::::::::::=:=:=:=l:=:::=:=:=:::=:=:::::::=:=:=:=:::::::=:=:=::::I Version 20 JWM 02/19/00 u = depth of LJ.S.D.W. = 2€0)

W= water level In deep water well = 2CO s = ln]ecilon zone Huld density, gm/cc = 1.00

F = lnlectlon well fluid level = 9'.XJ

I= deplh disposal zone = 3000 q = inJectlon rate , bbls./day = !1XJJ u = formation fluid viscosity = 1 k = permeabitty , md = 1CXXJ h = thickness of disposal formation = 24 t = time of Injection , days = 3352.5

□ = p□rnslty, decimal = 0.3

C = formadon compressibility = 5E.ffi r = distance from lnlection well = 100

BHP= Bottom Hole Pressure = 1003 p = P ressurc om eren tial = 57.156

Potential for migration If P is negltive migration will occur If Pis positive amount= additional pressure which can be added before ther e Is any dan gar of mi gration

P=posttve number therefore migration will not occur untll pressure Is exceeded

FROM FORMULA IN FEDERAL REGISTER (VOL 45, NO. 123, P. 43504, JUNE 24, 1980)

CALCULATED PRESSURES AT VARIOUS RADII FROM INJECTION WELL

SET RADIUS= 100

PRESSURE DIFFERENCE = 221,50613

1 ' = 357.0C612863 PSI

5' = :nl.65001004 PSI

20' = 268.86134642 PSI

50' = 241.0CU31004 PSI

100' = 221.50612863 PSI

2X)' = 201.11134642 PSI

3CO' = 189,18116362 PSI

400' = 1 BO 71656422 PSI

500' = 174.15J91084 PSI

e:JO' = 168. 70638142 PSI

700' = 164.2507.3642 PSI

BCXJ' = 10032178201 PSI

90.J' = 156.85619862 PSI

1CXXl' = 153. 75612863 PSI

1100' = 150.95'177 421 PSI

12Xl' = 148.39159921 PSI

1320' = 145.58724479 PSI

MAXIMUM VERTICAL MIGRATION CALCULATION

@ SUBJECT AADUIS FROM WELL BORE

Ha= Hydrostatic head , disposal zone = 1554.2625

Hb = Hydrostatic head , Base of USDW = 1125.0541

Ht = Maximum head , disposal zone = 511.9CXJ66

Hr= feet of water@ 65 degrees/psi = 2311

Pr= disposal zone pressure at raduls = 221,5061::1 t = time of Investigation , days = 36525

K = hydrallc conductivity, ft/day = 0.0458

L = length between USOW & zone = 480

V = Velocity of fluid , ft/day = Q049911X'!

Hvm= Max vertical migration, ft @ set raduis = 18229742

MAXlMUM VERTICAL MIGRATlON CALCULATION

@ 1' RADUIS FROM WELL BORE

Ha= Hydrostatlc head , disposal zone = 1689.7625

Hb = Hydrostatic head , Base of USDW = 1125.0541

Ht= Maximum head, disposal zone = 825.04116

Hr= feet of water @ 65 degrees/psi = 2.311

Pr = disposal zone pressure @ perforations = 357.Clll1 a t = time of lnvestigadon , days = 3652.5

K = hydralic conductivity, ft/day = 0.0468

L = length between USDW & zone = 480

V = Velocity of fluid , ft/day = O.CID4415

Hvm= Max vertlcal migration, ft @ 1' raduis = 293.81263

ENEKGY PRODUCTION SERVICE, INC.

TELEPHONE

(601 J 353-3055

Amax Oil and Gas, Inc.

P. Q. Box 42806 Houston, Texas 77042

POST OFFICE eox 12787

JACKSON. MISSISSIPPI 39236-2787

November 12, 1991

LEASE OPERATIONS

RESERVOIR STUDIES

Re: Change of Operator and/or Plug and Abandonment of Three Flora Field Wells

Gentlemen:

In December, 1983, Energy Production Service, Inc. (EPS) was employed as the contract operator of all wells in the Flora Field, nadison County, Mississippi, which had previously been operated by Edwards Producing Company (EPCO). Energy Production Service filed with the State Oil and Gas Board (SO&GB) change of operator forms for all of these wells. Energy Production Service remained the operator of record of these wells until May 26, 1986, at which time Energy Production Service was removed as operator by the working interest owners. At the working interest owners request, Energy Production Service turned over alY well files to Flora Field Company, who was appointed operator by the working interest owners. Flora Field Company filed change of operator forms on all wells. However, three wells were mistakenly overlooked and change of operator forms were not filed, thus leaving EPS on record as the operator of the following wells:

Anderson LL-3 NE/4 of NE/4 Section 2-TBN-RlW R. F. Keys AA-1 SE/4 of SE/4 Section 35-T9N-RlW Keys-Middleton #3 NW/4 of SW/4 Section 36-T9N-RlW

Subsequently, Belden & Blake (BBE) became the owner of most wells in the Flora Field including the wells listed above. This can be confirmed by the assignment recorded in Deed Book 602, Pages 355 through 362 in the Chancery Clerk's office, Madison County, Mississippi, and numerous other assignments from working interest owners. In these assignments Belden & Blake, as assignee, agreed to assume all liability for plugging and abandonment of all wells covered by the assignment and for restoration of the surface premises.

After purchasing most of the working interest ownership in the Flora Field, Belden & Blake petitioned the State Oil and Gas Board to unitize Flora Field and this petition was granted. The Unit Operating Agreement, dated February 16, 198 7, and recorded in Deed Book 621, Pages 604 through 637, designated Belden & Blake as the initial Unit Operator (see Article 4.1). The 3 wells in question are within the Unit boundaries and are within tracts 15, 18 and 36.

Belden & Blake, therefore, became both the working interest owner and the operator of the 3 wells in question. However, change of operator forms were still not filed with the State Oil and Gas Board, and Energy Production Service ii still listed as the operator of record.

Change of Operator anu,or Plug and Abandonment of Three Flora Field Wells November 12, 1991 Page #2

By an assignment executed December 27, 1989, Belden & Blake conveyed all right, title and interest in the Flora Field Wide Unit to Ladd Petroleum Corporation (See Deed Book 702, Pages 499 through 538). Ladd Petroleum Corporation, therefore, assumed Belden & Blake's position as working interest owner and operator of the Flora Field Unit and the 3 wells in question.

Amax Oil and Gas Company acquired Ladd Petroleum Corporation's interest in the Flora Field Unit and filed change of operator forms as of June 1, 1991. No assignment from Ladd to Amax had been recorded in the Chancery Clerk's office in Madison County as of October 7, 1991.

On August 9, 1991 a letter from Energy Production Service s attorney to Amax requested that Amax sign and file change of operator forms for the 3 wells in question. Amax has refused this request.

The State Oil and Gas Board has made demand on Energy Production Service to plug and abandon the Anderson LL-3 which is a salt water disposal well. (See attached SO&GB Order). The State Oil and Gas Board rules require that the other two wells also be plugged and abandoned.

Energy Production Service prefers that you sign the enclosed change of operator forms, naming whomever you prefer as the new operator of the 3 wells in question. Then you could comply with the State Oil and Gas Board demands as you wish.

If you elect to leave Energy Production Service as the operator of these 3 wells, Energy Production Service requests that you sign the attached AFE's, and advance the total amount of $75,000.00 for the cost of plugging and abandoning these wells. As you will note in the letter from the State Oil and Gas Board, failure to comply with their order could result in fines and suspension of ALL of Energy Production Service's operations in the State of Mississippi. Energy Production Service calls upon Am.ax as the majority working interest owner of the wells in question and as operator of the Flora Field wide unit to take the appropriate action as requested herein to accomplish the State Oil and Gas Board's order (Order #358-91, see enclosure).

ruly yours, E. Youn'12 r DEY/ss Attachments:

Change of Operator Form for 3 Subject Wells AFE (3) to Plug and Abandon 3 Subject Wells SO&GB Order cc -Belden & Blake .,Br-; Richard Henderson, Supervisor

Mississippi State Oil and Gas Board Mr. Tim Waycaster, Attorney

Mississippi State Oil and Gas Board m fl 1n

-~,rNoV 11199~11 ij LJ , ~· ~ ''H"i nrH'ii • -i;_.~•Hl3 t1

JOSEPHS,ZUCC/\RO,NATCIIEZ

CHJ,.lllMAN

11. B. MA YllS McGBHBI!, Ml!ADVILLP.

VlCB-OIAJ.RMAN

JOHN B. BURNETT, CIIARLESTON

1. B, <lOLOMAN JR., lACKllON

W. H. TA1UM SR., RIPLEY

[,. .te Ql}il anb @as j'jnarb jtate of J«iHi,stppi

500 GREYMONT AVENUE SUITE E

JACKSON, MISSISSIPPI 39202

TELEPHONE 354-7142

October 18, 1991

CERTIFIED MAIL, RETURN RECEIPT REQUESTED

tt:P 675 210 112

ENERGY PRODUCTION SERVICE, INC.

P. 0. BOX 12787

JACKSON, MS

Re: FLORA FIELD

ANDERSON ET AL "A" LL-3

Dear Sir:

A. RICHARD HENDERSON

STAT£ OIL & OA.'l SUPERVISOR

TIM WAYCASTER

ATroRNEV FOR TIIE BMRD

This is to advise you that the permit for the referenced Class II Enha~ced Recovery Injection or Produced Fluid Disposal We11(s) for which you are the listed operator was revoked by State Oil & Ga§,Board Order No. 358-91 effective the 18th day of September, 1991. Pursuant to that same order, the Board has ordered that that well be properly plugged and abandoned.

Therefore, all injection or disposal into the referenced well must cease immediately, and the well must be properly plugged and abandoned after Board approval of a plugging plan. You must submit a plugging plan for approval within thirty (30) days of the date of this letter. Failure to submit such a plan within the specified time period or any continued injection or disposal into the referenced well will result in the Board taking enforcement action against you and the possible imposition of fines and/or suspension of your other operations in the State.

If you have questions or comments, you may contact the undersigned at (601) 355-3910.

Sincerely, Tim Waycasfer, Attorney for Mississippi State Oil & Gas Board

MAR.Tlt"\W ~i1HAll1 IAC~ ~· l'l\.-\.St1

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GERALD & BRAND

ATTPRNEY~ AT I.AW

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May 7, 1991

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VIA HAND DELIVERY

Mississippi State Oil & Gas Board 500 Greymont Avenue Suite E Jackson, MS 39202

Attention: Dr. A. Richard Henderson, supervisor

Dear Dr. Henderson:

RE: Docket No. 150-91 Order No. 178-91 Statewide Rules Show Cause Order Energy Production Service, Inc.

Flora Field Anderson, et al "A" LL-3 Well

-p1ease accept this as the response of Energy Production Service, Inc. to the Board's Show Cause Order with regard to failure to submit proof of financial responsibility in connection with the captioned well. Energy Production Service, Inc. is no longer the operator of the captioned well and has not been the operator of this well for several years. Enclosed herewith are copies of letters dated October 10, 1988 and August 17, 1990, from Donn E. Young, on behalf of Energy Production Service, Inc., explaining the situation with regard to this well.

Energy Production Service, Inc. ( "EPS") has never owned a working interest in the captioned well or other wells in the Flora Field. It served as a contract operator for the working interest owners in Flora Field. On May 26, 1986, the working interest owners removed EPS as operator of all wells in the Flora Field and appointed Flora Field Company as operator. All well files were turned over to Flora Field Company at that time. There are approximately 50 wells in the Flora Field, and the captioned well, along with the R. F. Keys AA-1 and Keys-Middleton No. 3, were inadvertently overlooked and no change of operator forms were filed in connection with those wells. However, Flora Field Company

GERALD & RRAN[)

Mississippi State Oil & Gas Board May 7, 1991 assumed operation of those wells, and EPS has had no connection with the operation of any well in Flora Field since that time.

Subsequently, effective July 1, 1987, the Flora Fieldwide Unit was formed for operation of the Flora Field as a unitized Fieldwide Unit pursuant to the terms of §§53-3-101, ll• seq., Miss. Code Ann.

1972. The Unit Agreement and the Unit Operating Agreement were approved by the Board, and Belden & Blake Corporation was designated as the initial Unit Operator. The Unit Agreement and Unit Operating Agreement provide that the Unit Operator shall have the exclusive right to conduct unit operations. The captioned well, along with the other two wells listed above, are designated on Exhibit "C" as wells within the Unit Area. The Unit Operating Agreement by Article 3.2 provides that the working interest owner shall make all decisions with regard to the recompletion, abandonment or change of status of any well or the use of any well for injection or other purposes. Section 7 .1 provides that subject to the provisions of the Unit Operating Agreement and to instructions from the working interest owners, the Unit Operator shall have the exclusive right and be obligated to conduct unit operations. Section 10.1 of the Unit Operating Agreement provides that the working interest owner shall deliver to the Unit Operator all wells completed in the unitized formation and all equipment and leases used in the operation of such wells.

Section 18. 1 of the Unit Operating Agreement provides as follows:

If working interest owners determine to permanently abandon any well within the Unit Area prior to termination of the Unit Agreement, Unit Operator shall give written notice thereof to the working interest owners of the tract on which the well is located, and they have the option for a period of thirty

(30) after the sending of such notice to notify Unit Operator in writing of their election to take over and own the well. . . . The working interest owners of the tract, by taking over the well, agree to seal off the unitized formation, to thereafter assume full responsibility for the well, and upon abandonment to plug the well in compliance with applicable laws and regulations.

Section 18.2 of the Agreement provides "if the working interest owners of a tract do not elect to take over a well located within the Unit Area that is proposed for abandonment, Unit

GERALl1 & BRAND

Mississippi State Oil & Gas Board May 7, 1991

Operator shall plug and abandon the well at unit expense in compliance with applicable laws and regulations."

EPS has had no connection with the operation of any wells in the Flora Field since 1986. Belden, Blake Corporation sold all of its interest in Flora Field to Ladd Petroleum Corporation, who became the Unit Operator of the Flora Fieldwide Unit. It is my understanding that Ladd has now sold all of its interest in Flora Field to Amax, who I assume has become the new Unit Operator. In any event, the operator of the Flora Fieldwide Unit is the party charged with the responsibility for operating the captioned well and assuming any obligations to plug the well at such time as the well is abandoned and no longer utilized in unit operations. EPS has no knowledge of whether the captioned well is currently being utilized as an injection well, as a disposal well or otherwise.

It would appear that the appropriate action for the Board would be to have the current Unit Operator for the Flora Fieldwide Unit post the required proof of financial responsibility in connection with the captioned well and all other wells in the Flora Fieldwide Unit.

In fact, proof of financial responsibility may already be posted by the Unit Operator. Only the Unit Operator knows the utility of this well and how the well is or plans to be used in connection with the unit operations. The Board's records should be administratively changed to reflect the true operator of this well, i.e., the Unit Operator for the Flora Fieldwide Unit.

If the BoarQ desires, Mr. Young will be present at the May 15, 1991 hearing to present testimony to establish the facts that are set out in this letter or an Affidavit can be drafted that will establish these facts. If the Board desires testimony or an Affidavit in this matter, please advise. We respectfully request that the Board withdraw its Show Cause Order insofar as it requests action on behalf of Energy Production Service, Inc.

SMB/pkb

Enclosures cc: Tim Waycaster Donn E. Young

Sincerely yours, GERALD & BRAND

BY: &1.· /)]. £U= Si M. Bondurant

MAY 7 1991 j .. ,._,.. .

STATE OIL & GAS BOARD

LADD PETROLEUM CORPORATION

Mr. Fred Hille

2100 Ona Riverway

Hcuetcn. Texas 77056

Telephone (713] 622-6911

September 5, 1990

Mississippi State Oil and Gas Board 500 Greymont Avenue, Suite E Jackson, Mississippi 39202

RE: Anderson A

' Well No. LL-3 SWD

Permit No. 71 SWDW Section 2 T8N RlW-Madison County Flora Field

Dear Mr. Hille:

,..,_("0~ ', ft

:i st-? \. \) ,~ ~ ~-..J,,.~o •. ' .., ,,;, \),. ti-...,.,..

,,,. ·,"i:-v'1,.

5,1>-

Attached is a copy of the most recent approved document filed with the Mississippi Oil and Gas Board on the referenced well that we have found. It is a change of operator Form No. 2 from EPCO, Inc. to Energy Production Service, Inc. effective 12-1-83. This form shows the well name as Anderson but the location (800' FNL & 330' FEL of NEl/4 of NEl/41 and the permit number 71 SWDW correspond to the Ander son ''A•• Well No •

LL-3 SWD.

Please advise if we can be of further assistance in this matter.

DRC:dc

Attachment

Yours truly, LADD PETROLEUM CORPORATION

D«~ Production Records Supervisor

An Affiliate of General Electric Company

ENERGY PRODUCTION SERVICE, INC.

POST OFFICE BOX 12787

JACKSON, MISSISSIPPI 39236-2787

TELEPHONE

(601} 353-305ii

August 17, 1990 LEASE OPERATIONS

RESERVOIR STUDIES

State Oil and Gas Board 500 Greymont Avenue Suite E Jackson, Mississippi 39202

Attention: br. A. Richard Henderson State Oil and Gas Board Supervisor

Dear Dr. Henderson:

Re: Anderson No. 11-3 SWDW (formerly Anderson LL-3)

R. F. Keys AA-1 Keys Middleton #3 Flora Field Madison County, MS

Energy Production Service, Inc. (EPS) was on record as being the operator of wells in the Flora Field which included the 3 wells referenced above. EPS was hired as a contract operator effective December 1, 1983, and continued as operator until May 25, 1986, at which time the working interest owners removed EPS as operator of all wells and appointed Flora Field Company as operator. EPS has never owned any working interest in the Flora Field. When Flora Field Company became operator, EPS turned over all well files and records to the Flora Field company. Flora Field Company pre pared change operator forms and evidently the 3 referenced wells were mistakenly overlooked and no change of operator forms were prepared for these wells, although Flora Field Company in fact became operator of all wells in the field.

Subsequently, Belden & Blake Corporation (BBC) purchased approxi mately 100% of the working interest in the Flora Field and unitized the field forming the Flora Field Unit. The 3 referenced wells are included within the unitized area (see Exhibit C to the Unit Agreement). At some later date Ladd Petroleum Corporation acquired all interest of BBC and became operator of the Flora Field Unit.

Mr. Bob Womish with Ladd was contacted by phone August 14, 1990, and asked if Ladd would file change of operator forms for the referenced wells. Mr. Womish indicated that Ladd would not be willing to file these forms.

".-r.:, r:,t;JMM}il~,n ~\D_,\) fi 1,'.-~ 1---l \ \\. ' \\ \f(' ~\ l\l\ G. 2 O \990 ~~,:: ,. , .. ...,,., ... r{O STA"! c:.v!L&.~:-.....> i,.;

August 17, 1990 Page #2

Since EPS has no records pertaining to the referenced wells, we have no way of answering the questions contained in your letter of May 10, 1990. Ladd is currently the operator of all wells in the Flora Fieldwide Unit Area and has all records concerning these wells. Since they are in fact the operator of the captioned wells, we request that the Board contact them directly for any information on the current status of these wells.

ruly yours, E.Y9~

DEY/ss fL;-;1 -· ~m1 •• o , i990 Ji -.. ., ----~"":.;,raOARD

~.I.□ \G}]@rugiz~ 1 n, :) \ AUG 2 o 1sso 1)-ul l

!'I 'I

Section 2: E 1/2 of SE 1/4, NW 1/4 of SE 1/4 and NE 1/4.

The Board finds that the proposed unitized formation should be and is hereby defined in the same manner as defined in Article

1.2 of the Unit Agreement, Exhibit "l", which definition is as follows:

Unitized Formation is the Selma Gas Rock Oil Pool which is under the Unit Area which is defined as those strata productive or formerly productive of oil and gas in the interval between the depth of 4,336 and 4,396 feet as indicated on the Dual Induction Log for the former J. R. Anderson No. 3-A, Now FFU No. 1- 11 Well, located in the NE 1/4 of SW 1/4 of Section 1, Township 8 North, Range 1 West, Madison County, Mississippi, and any formation or formations correlative thereto and interconnected therewith in and under the Unit Area which can be correlated therewith.

The Board finds that the Selma Gas Rock Oil Pool is the commori source of supply of oil and gas for the unit area. The

Selma Gas Rock Oil Pool included within the bound4~ies of the proposed unit area has been defined by a sufficient number of wells to a sufficient depth and at such locations as may be necessary to determine the boundaries of the unit and to determine that said Pool has been reasonably developed according to a spacing pattern approved by the Board. The Board now finds that there is no need for the drilling of further units or tracts within the unit in order to define or further develop the unit area prior to the establishment of the Flora Fieldwide Unit.

4.

The Board hereby finds that Belden and Blake Corporation, Petitioner herein, should be and is hereby approved as the

Operator for all of the working interest owners within the Flora

Field Unit. The Petitioner has acquired the execution and approval of a minimum of seventy-five percent (75%) of the working interest owners of the Plan of Unitization set forth in

Exhibits 1" and "2". The approval of seventy-five percent (75%)

-3-

~tate c@il anb ~as }ioarb

H. 8. MAYES MCGEHEE. MEAJ:lll1u,E

C><.AIAMAN

JOSEPH S. ZUCCARO, NATO<EZ

VICE-C><.AIR MAN

JOHN 8. BURNETT, 04AAL.fSTOH W. H. TATUM, SR., Rlf'LEY

• &tatt of ,JiliUiUippi

500 GREYMONT AVENUE SUITE E

JACKSON, MISSISSIPPI 39202

TELEPHONE 354-71~

August 3, 1990

CERTIFIED MAIL -RETURN RECEIPT REQUESTED

Energy Production Service, Inc.

P. O. Box 12787 Jackson, MS 39236-2787

Re: Anderson No. 11-3 SVDW Flora Field Madison county, MS

Dea~ Sir:

A. RIQ-IARO HENDERSON

STATE OIL I G"5 9.JPEIW\SO~

TIM WAYCASTER

An0RNEY -THE l!oAAO

This is to notify you that all requests for action in our letter of May 10, 1990 have/has not been complianced with, nor has a compliance schedule been agreed upon.

Please submit the requested material to us within 30 days from receipt of this letter or I must present this to the Board and request the Board to order you to show cause, if any you can why this permit should not be revoked and the well properly plugged and abandoned, along with the dssessment of monetary penalties as advocated by the representative of Region IV EPA during their mid-year review of our program in June of 1990.

Sincerely, a A. Richard Henderson State Oil and Gas Board Supervisor

ARH/FH/LI/WS:sc

~tate ®il anb ~as ~oarb

H, B MAYES MCGEHEE. MEMWILLf CllAlnMAN

.IOSEPH S ZUCCARO. NAIO<tz VICE CfU.IRMAN

.IOHN B, BURNETT CHA11LESTON

W, H. TATUM. SR, RIPLEY

r .. • '.'"""f"' :.

6ta:tr of Jlliu(uippi

SOO GREYMONT AVENUE SUITE E

JACKSON, MISSISSIPPI 39202

TELEPHONE 354, 7142

May 10, 1990

CERTIFIED MAIL -RETURN RECEIPT REQUESTED

Energy Production Service, Inc.

P. O. Box 12787 Jackson, MS 39236-2787

Re: Anderson No. 11-3 SWDW Flora Field Madison county, MS

Dear Sir:

A. RICHARD HEN~RSON

ST,lll OIL L G-.s su,mvison

Tlt.1 WAYCASTER SPECIAL /\SSISI t.N T ... , TOIW< EY Q£11EI\A L

On May 10, 1990, a file review on the referenced well was conducted by our UIC staff. It was determined that:

(1) The well has never been tested for mechanical integrity. Please contact the area field inspector to make arrangements to have the well tested.

(2) The disposal zone in this well is in communication witr1 the USDW. Therefore, according to Rule 63, Part 14, this well must ce completed to a deeper zone, or pluggea. The configuration ot the well must be changed.

(3) The proof of financial responsibility has not been filea with this office. This must be in a form acceptable by the Board's Supervisor. After researching the costs involved 1n plugging Class II wells. the Board generally requires a minimum of $7,500.00 (in the form of a bond or letter of credit) for wells injecting into zones 0-5000 feet deep. Deeper wells may require more. If you have proof of financial responsibility with the EPA, covering the minimum amount, please send us a copy., If not, Proof of financial Responsibility must be submitted to tne Mississippi State Oil and Gas Board.

(4) The Monthly Fluid Injection Report(s) (form 14) have not been filed with this office.

(~) The status of this well is unclear. Please submit to thl~ otfice the status ot the above welt.

(6) A corrected Completion Report (form 3) on conversion showing packer setting depth and squeeze 1ntormation has not been t1led with this office.

Please submit Number(s) l, 3, 4. 5, and 6 to th1s otfice w1th1n JO days dnd Number(s) 2 within 180 days from date ot receipt of this letter or the Board may call a show cause as to why th1s permit should not be revoked and the well plugged and abandoned. , ·rhe Milssissi ppi State Oi 1 and Gas Board's off ic ia l records list you as the operator of the referenced well. You are the party the Board considers responsible for this well, including the proper maintenance of all requirements of the Rules and Regulations pertaining to the well which also includes the proper plugging and abandonment. If you are able to deliver a properly executed form 2, Change of Operator, along with the new operator presenting proof of financial responsibility as required by Statewide Rule 63 within the next 90 days then you would no longer be listed as the official operator of record upon the approval of the change of operator. lf you can not or do not deliver a proper change of operator or meet the financial Responsibility for this well, then the Board would be so notified by the Supervisor and a show cause order may be issued to you tor this well as required in Statewide Rule 63.

Should you have any questions, please call.

Sincerely a, TL

A. Ricnard Henderson State Oil and Gas Board Supervisor

ARH/Ll/WB/Jf::sc

- ENERGY PRODUCTION SERVICE, INC.

POST OFFICE BOX l 2787

JACKSON, MISSISSIPPI 39236-2787

TEI..EPHONE

(601) 353-3055

October 10, 1988 LEASE OPERATIONS

RESERVOIR STUDIES

State Oil and Gas Board P.O. Box 1332 Jackson, Mississippi 39215-1332

Attention: Mr. Jeff Lundy

Dear Mr. Lundy:

Re: Anderson No. 11-3 SWDW Flora Field Madison County, Mississippi

Energy Production Service, Inc. was hired by the working interest owners in the Flora Field as an independent contract operator effective December 1, 1983. Energy Production Service, Inc.took over operations from Edwards Producing Company. At the time of the transfer of ownership, all wells which Edwards Producing Company was operating were transferred to Energy Production Service, Inc. Energy Production Service, Inc.

operated most wells in the Flora Field until May 25, 1986, at which time the working interest owners voted to discharge Energy Production Service, Inc. as operator. A group of working interest owners formed a company called Flora Field Company and transferred operations from Energy Production Service, Inc. to Flora Field company effective May 25, 1986. The change of operator forms were prepared by Flora Field Company. Evidently the subject well (Anderson No. 11-3 SWDW) was mistakenly overlooked and no change of operator form was filed. Since all well files are in the hands of Flora Field Company, and since Energy Pro duction Service, Inc. owns no interest in any wells in the Flora Field, it is suggested that you contact Flora Field Company for the information you need.

DEY/ss ruly yours, Younry

W r--"t rr -· -·-,.-r, r7 ~ ·1~1~1 1::Y,r•·,·-'1r]· ,:· . n j C::..::::t .f/('C..·,. ·,~I . . I I

L~lMAY.I -~:i}j ST ATE OIL & GAS BOARD

POST OFFICE eox 12787

JACKSON. MISSISSIPPI 39236-2787

TELEPHONE

(601) 353-3055

State Oil and Gas Board 500 Greymont Avenue Suite E

August 17, 1990

Jackson, Mississippi 39202

Attention: Dr. A. Richard Henderson State Oil and Gas Board Supervisor

LEASE OPERATIONS

RESERVOIR STUDIES

Re: Anderson No. 11-3 SWDW (formerly

Dear Dr. Henderson:

Anderson LL-3) R. F. Keys AA-1 Keys Middleton· #3 Flora Field Madison County, MS

Energy Production Service, Inc. (EPS) was on record as being the operator of wells in the Flora Field which included the 3 wells referenced above. EPS was hired as a contract operator effective December 1, 1983, and continued as operator until May 25, 1986, at which time the working interest owners removed EPS as operator of all wells and appointed Flora Field Company as operator. EPS has never owned any working interest in the Flora Field. When Flora Field Company became operator, EPS turned over all well files and records to the Flora Field Company. Flora Field Company pre pared change operator forms and evidently the 3 referenced wells were mistakenly overlooked and no change of operator forms were prepared for these wells, although Flora Field Company in fact became operator of all wells in the field.

Subsequently, Belden & Bloke Corporation (BBC) purchased approxi mately 100% of the working interest in the Flora Field and unitized the field fonning the Flora Field Unit. The 3 referenced wells are included within the unitized area (see Exhibit C to the Unit Agreement). At some later date Ladd Petroleum corporation acquired all interest of BBC and became operator of the Flora Field Unit.

Mr. Bob Womish with Ladd was contacted by phone August 14, 1990, and asked if Ladd would file change of operator forms for the referenced wells, Mr. Womish indicated that Ladd would not be willing to file these fonns.

August 17, 1990 Page #2

Since EPS has no records pertaining to the referenced wells, we have no way of answering the questions contained in your letter of May 10, 1990. Ladd is currently the operator of all wells in the Flora Fieldwide Unit Area and has all records concerning these wells. Since they are in fact the operator of the captioned wells, we request that the Board contact them directly for any information on the current status of these wells.

DEY/ss

Very truly yours, Donn E. Young

.~.--'-",_-,-..-,-,--,hl ,.\. -.. --•·"'-~ • ,:,\)•, )~-1 --• ,\.

. I I • ' ' • • I \ I " \ • ·,' :-·,' : : ,".': • •. : ~)-.. .• • 'I ,/ '• • '

~I\.._M~~~1 199.~u Sf A 1F. OlL L G!'-.3 G:J;,F.D

POST OFFICE SOX 12787

JACKSON, MISSISSIPPI 39236-2787

TELEPHONE

(601 I 3S3-3055

State Oil and Gas Board P. o. Box 1332

October 10, 1988

Jackson, Mississippi 39215-1332

LEASE OPERATIONS

RESERVOIR STUDIES

Re: Anderson No. 11-3 SWDW Flora Field Madison County, Mississippi

Attention: Mr. Jeff Lundy

Dear Mr. Lundy:

Energy Production Service, Inc. was hired by the working interest owners in the Flora Field as an independent contract operator effective December 1, 1983. Energy Production Service, Inc.took over operations from Edwards Producing Company. At the time of the transfer of ownership, all wells which Edwards Producing Company was operating were transferred to Energy Production Service, Inc. Energy Production Service, Inc.

operated most wells in the Flora Field until May 25, 1986, at which time the working interest owners voted to discharge Energy Production Service, Inc. as operator. A group of working interest owners formed a company called Flora Field Company and transferred operations from Energy Production Service, Inc. to Flora Field Company effective May 25, 1986. The change of operator forms were prepared by Flora Field Company. Evidently the subject well (Anderson No. 11-3 SWDW) was mistakenly overlooked and no change of operator form was filed. Since all well files are in the hands of Flora Field Company, and since Energy Pro duction Service, Inc. owns no interest in any wells in the Flora Field, it is suggested that you contact Flora Field Company for the information you need.

DEY/ss

W~tc3~m~~~~rm !~ OCT 111988 j_\Jj ~~~~~-~'":1""'-ruly yours, 7-;' E .• Youn~

~tatc ®il anb ®a£' JGoatb

H. 8. MAYES MCGEHEE, Ml!A!J\11U.E

CHAIRMAN

µi)f~t .... ~.

~tate of .ffiiB'll'i.5»-ippi

LOUIS GUIROL.JI JR., PASCAOOULA

TELEPH~NE 359-3725 P. 0. Bo" 1332

VICE-CHAIRMAN , JACKSON 3921!>-1332

JOHN 8. BURNETT CHARLESTON

W. H. TATUM. S"I .. Rlf'LfV

W.W. Wt.TSON, S?. JACKSON Septern~er 30, 1988

Energy Production Service, Inc.

P. o. Box 12787 Jackson, MS 39211

Re: Anderson No. LL-3 SWDW Flora Field Madison County, MS

Dear Sir:

A RICHARD HENDERSON

ST .. TE o ..... GAS SuP ERv,oo~

TIM WAYCASTER

SPECIA, "5S1STAII I l'rrlORN!Y GENERAL

We are in the process of reviewing ana completing our salt water disposal well files. According to our Rule 63 Part 9 (D) after the well has been removed from service for a period of six months or more the well shall be plugged and abandoned as outlined in Part 10 of this Rule. Wells required for standby service, provided they pass a mechanical integrity test and meet all requirements for wells in active service, are exempt from the plugging requirements of ttis paragraph.

We shall appreciate your prompt attention to the above in order that we may complete our records.

a&~ /JJTLundy ~ UIC CoordinatU

JL:sc

~tate ®il anb ~as ~oatb

DONALD G. KRUGER, Pllemss

CHAIRMAN

1)~~

~tatt of ~(iS'iUippi

JOHN 8. BURNETT, CHMl!ZSTOH

VICE-CHAIRMAN

TELEPHONE 359-3725 P. 0. Box t332

LOUIS GVIAOLA. JR .. P..sc.oouui W. 1-1. TATUM, SA., R1Pl.£'r

W.W. WATSON, SR. JACKSON

JACKSON 39215-1332

June 28, 1988

Energy Production Service, Inc.

P.O. Box 12787 Jackson, MS 39211

Re: Anderson No. LL~3 SWDW Flora Field Madison County, MS

Gentlemen:

A. Fl!CHARO HENDERSON S1A.1E 01L l GAS &.IPERVISOI, TIM WAYCASTER

SPECA/L MSISTAHT lltlC AN EV GEN EA.I\L

In July of 1985 a letter was sent to you by certified mail pursuant to the Safe Drinking Water Act (Public Law 93-523).

According to our records, a reply was sent to this office but it does not appear in our files at this time. If possible, please send us a copy of your response to this letter. The letter pertained to injection into the lower Wilcox formation and is attached.

We would appreciate your response on this matter within thirty (30) days. Your help in this matter will assist us in our efforts to obtain primacy.

Very trul yours, J Lundy UIC Coordinator

Enclosure: copy of July, 1985 letter

'-, -~1

~tatr @ti anh <ias ~o,it·i

DONALD G. KRUGER. Pf\ENT:SS

CH/IIAMAN

JOHN B. BURNETT. CHARLESTON

'/ICE-CHAlRMAN

HARLEY l.. SIMS, HATTIE;SBUAG

W H TATUM. SR., RIPLEY

W W. WATSON. SA . .!ACKSON

,fotah ai ~is•iuippi

TELEPHONE 359.3725 P O 60X 1332

JACKSON 3921 S· 1 332

May 12, 1988

Energy Production Service, Inc.

P. o. Box 12787 Jackson, MS 39211

Re: Anderson No. LL-3 SWDW Flora Field Madison County, MS

Dear Sir:

A. RICHARD HENDERSON

STATE OIL & GAS SUPEFMSOR

TIM WAYCASTER

SPl::Ct.-L ASSISTANT ATTO~EY <31::l'IERAL

To complete our records on salt water disposal wells and other injection wells, we need the following information on the above referenced well:

( X. )

Form No. 3, Completion Report Status of Well Well not being reported on Form No. 14 Form No. 6, Intention to Plug and Abandon Form No. 7, Plugging Record

We shall appreciate your prompt attention to tbe above in order that we may complete our records.

Yours very truly, ~fcf.coordinator

IN THE STATE OIL AND GAS BOARD OF MISSISSIPPI

PETITION OF BELDEN AND BLAKE CORPORATION,

AS UNIT OPERATOR, FOR THE APPROVAL

OF THE PLAN OF UNITIZATION FOR THE FLORA

FIELD UNIT, MADISON COUNTY, MISSISSIPPI

0 R D E R -----

DOCKET NO. 49-87-5

ORDER NO. zJ -5-__ J 7

THIS DAY this cause came on for hearing before the State Oil and Gas Board of Mississippi and the Petition of Belden and Blake

Corporation, as Unit Operator for the proposed Flora Field Unit, for an order creating the Flora Field Unit and approving the Unit

Agreement and the Unit Operating Agreement as authorized and provided by Sections 53-3-101 to 53-3-119 Mississippi Code

Annotated (1972), as amended, and after examining the Petition and proofs of publication, after hearing all of the evidence offered upon the hearing of said cause and considering the testimony and exhibits presented and having considered the arguments of counsel, and being fully advised in the premises, the Board does find as follows:

1 .

Due, proper and legal notice of the meeting of the Board for the purpose of considering and taking action with respect to this matter has been given in the time, manner and way as provided by law and the rules and regulations of the Board, and due, legal and sufficient proofs of publication are on file with the Board and the Boa~d has full jurisdiction of the parties and the subject matter and has authority to hear and determine said matter.

2.

Pursuant to said notice, a public hearing was held by said

Board in 1400 Walter Sillers Building, 550 High Street, Jackson, Mississippi, on March 18, 1987, at which time and place all persons present who desired to be heard on said matters were heard, and the proposed creation of the Flora Field Unit and the

Plan of Unitization composed of the Unit Agreement and the Unit

Operating Agreement for the Flora Field Unit were fully discussed and duly considered by those persons at said meeting.

3.

Attached to the Petition and made a part thereof are copies of the Unit Agreement and the Unit Operating Agreement for the

Flora Field Unit, together comprising the Plan of Unitization for said unit in Madison County, Mississippi. The Board adopts and confirms as a part of this Order Exhibits A

B and

C" to said Unit Agreement which exhibits are, respectively, a descriptive list of the tracts composing the unit area showing the percentage of participation of each tract, a description of the proposed unit area, and a map or plat of the unit area on which the boundary lines of the unit area and the tracts composing the unit area are shown. The unit area, lying and being situated in Madison County, Mississippi, is hereby described as follows:

MADISON COUNTY, MISSISSIPPI

TOWNSHIP 9 NORTH, RANGE 1 WEST:

Section 26: S 1/2 of NE 1/4, N 1/2 of SE 1/4, SE 1/4 of SE 1/4 and E 1/2 of SW 1/4 of SE 1/4.

Section 35: SE 1/4, S 1/2 of NE 1/4, SE 1/4 of NW 1/4, NE 1/4 of NE 1/4 and E 1/2 of NW 1/4 of NE 1/4.

Section 36: S 1/2 of SW 1/4, NW 1/4 of SW 1/4, SW 1/4 of NW 1/4 and W 1/2 of NW 1/4 of NW 1/4.

TOWNSHIP 8 NORTH, RANGE l WEST

Section l: SW 1/4, W 1/2 of SE 1/4, W 1/2 of NE 1/4 of SE 1/4, NW 1/4, W 1/2 of NE 1/4 and w 1/2 of E 1/2 of

NE 1/4.

-2-

Section 2: E 1/2 of SE 1/4, NW 1/4 of SE 1/4 and NE 1/4.

The Board finds that the proposed unitized formation should be and is hereby defined in the same manner as defined in Article

1.2 of the Unit Agreement, Exhibit "l", which definition is as follows:

Unitized Formation is the Selma Gas Rock Oil Pool which is under the Unit Area which is defined as those strata productive or formerly productive of oil and gas in the interval between the depth of 4,336 and 4,396 feet as indicated on the Dual Induction Log for the former J, R, Anderson No. 3-A, Now FFU No. 1- 11 Well, located in the NE 1/4 of SW 1/4 of Section l, Township 8 North, Range 1 West, Madison County, Mississippi, and any formation or formations correlative thereto and interconnected therewith in and under the Unit Area which can be correlated therewith.

The Board finds that the Selma Gas Rock Oil Pool is the common source of supply of oil and gas for the unit area. The

Selma Gas Rock Oil Pool included within the boundaries of the proposed unit area has been defined by a sufficient number of wells to a sufficient depth and at such locations as may be necessary to determine the boundaries of the unit and to determine that said Pool has been reasonably developed according to a spacing pattern approved by the Board. The Board now finds that there is no need for the drilling of further units or tracts within the unit in order to define or further develop the unit area prior to the establishment of the Flora Fieldwide Unit.

4.

The Board hereby finds that Belden and Blake Corporation, Petitioner herein, should be and is hereby approved as the

Operator for all of the working interest owners within the Flora

Field Unit. The Petitioner has acquired the execution and approval of a minimum of seventy-five percent (75%) of the working interest owners of the Plan of Unitization set forth in

Exhibits "l" and "2". The approval of seventy-five percent (75%)

(exclusive of royalty interest owned by Lessees or by subsidiaries or successors-in-title of any Lessee) in interest of the royalty owners on the basis of and in proportion to the surface acreage content of the unit area of the Plan of

Unitization as set forth in said agreements, Exhibits and "2" attached to the Petition in this Docket and admitted into evidence at the hearing thereon has not yet been obtained.

Petitioner shall have a period of twelve months from and after the date of this order to obtain the approval of the Unit

Agreement by seventy-five percent (75%) of royalty owners as set out in §53-3-107, Miss. Code Ann. 1972, as amended. Upon obtaining the required approval of royalty owners, Petitioner shall petition the Board for a supplemental order upon notice and hearing in the time and manner required by law and the rules and regulations of this Board.

5 .

The Board finds that the unit operation of the Unitized

Formation, as defined in Exhibit in the Flora Field Unit, is reasonably necessary in order to effectively carry on secondary recovery, pressure maintenance, repressuring operations, cycling operations, water flooding operations, the injection of extraneous substances, or any combination thereof, or any other form of joint effort calculated to substantially increase the ultimate recovery of oil or gas, or both, from the unit so formed, and to prevent waste. Such operations as applied to the common source of supply or portion thereof are feasible and will prevent waste or will with reasonable probability result in the recovery of substantially more oil or gas, or both, from the unit so formed than would otherwise be recovered. The Plan of

Onitization and the agreements effectuating the same are fair and…