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2008_09.02 BOA PacketAGENDA BOARD OF ADJUSTMENT REGULAR MEETING - SEPTEMBER 2, 2008 KENNEDALE MUNICIPAL BUILDING - 405 MUNICIPAL DR. COUNCIL CHAMBERS 7:00 PM CALL TO ORDER ROLL CALL I. VISITORS /CITIZENS FORUM At this time, any person with business before the Board of Adjustment not scheduled on the Agenda may speak, provided that a "Speaker's Request Form" has been completed and submitted to the Board of Adjustment Secretary prior to the start of the meeting. All comments must be directed towards the Chair, rather than individual BOA members or staff. All speakers must limit their comments to the subject matter as listed on the "Speaker's Request Form." No formal action can be taken on these items. II. CONSIDER BOA CASE # 08 -05 A request for a Special Exception to the City Code Section 17 -426 (c), to allow gas well drilling and production to be located at 205 N Joplin Road as required by this section. Legal description is Abstract 866 Tract 3B of the Ben Joplin Survey in the City of Kennedale, Tarrant County, Texas as requested by Chesapeake Energy Corporation. a) STAFF PRESENTATION OF CASE b) APPLICANT PRESENTATION OF CASE c) PUBLIC HEARING ON BOA CASE #08 -05 d) APPLICANT RESPONSE e) STAFF RESPONSE AND SUMMARY OF CASE f) ACTION ON CASE III. REGULAR ITEMS a) Approval of Minutes dated July 1, 2008 and August 5, 2008. IV. STAFF REPORTS a) Staff Update on City Projects. V. ADJOURNMENT Staff Report To the Members of the Board of Adjustment Date: August 29, 2008 Agenda Item No: II Subject: BOA Case # 08 -05 -- Special Exception to allow oil and gas well drilling Originated by: James Cowey, Building Official Summary: Chesapeake Energy Corporation has applied for a special exception for the purpose of drilling four (4) gas wells from one pad site located at 205 N Joplin Road. The actual access to the well site is located at 1257 Swiney Hiett which is currently a vacant lot. As per the City's Ordinances, this requires a special exception from the Board of Adjustments before Chesapeake can receive a gas drilling permit from the City. On August 5, 2008 this case was tabled due to the required waiver letters for residences that are within the six hundred (600) feet radius not being acquired by Chesapeake Energy Corp. Chesapeake Energy has moved their drill site further south to mitigate the waiver requirement. The proposed BOGI wells will be more than six hundred (600) feet away from any existing residential dwelling. Please find in your packet an updated site plan and structure maps. As well as an updated tree survey. According to the site plan approximately four (4) structures are within the six hundred (600) feet radius surrounding the proposed drill site. Three of the structures are barns and one is a storage shed. Questions concerning whether or not these structures require waivers letters arose, due to no definition in the Oil and Gas Ordinance for "residential structure ". After a thorough review by Staff, the City Manager, and the City Attorney, it was determined that a "residential structure" is considered a dwelling, which would not include storage, barns, etc. Attached, please find a detailed explanation from Bob Hart explaining how this determination was made. Also, at the public hearing citizens had questions concerning the proposed drilling operation. Most of these questions were addressed at the meeting, but some were not. These questions concern the following: • Compressor Station El • Truck Route — specifically truck traffic on Swiney Hiett • Screening around drill site once work is complete • Safety concerns of Natural Gas Pipe Lines • Explosives on Drill site • Water for Drilling Operation- Where the opportunity exists, the City will sale water to Contractors through a meter installed on a fire hydrant. The use of this water shall not impact the residences and businesses of the City of Kennedale. Through our SCADA System, City Staff is aware of any uses or breaks that may impact the overall water system in a negative manner. Chesapeake understands this and will coordinate with us in the use of any City Water. Please see attached for a detailed explanation from Chesapeake of how the concerns listed above will be met. Chesapeake's Staff will be available at the meeting for any questions that may arise. The Fire Chief and Fire Marshal have reviewed Chesapeake's revised plans and feel confident with Chesapeake's safety program. Recommendation: Staff has no issues with approving this application for Special Exception. Disposition by Commission: E ACORD CERTIFICATE OF LIB PRODUCER (918) 493 -1450 FAX: (918) 493 -2395 Meyers- Reynolds & Associates 1425 E 71st Street Tulsa OK 74136 INSURED Chesapeake Operating Inc. P 0 Box 18496 Oklahoma City OK 731 -049 'INSURANCE I i12F' zoos THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIL # INSURER A: Liberty Mutual INSURERB:AEGIS Limited INSURER C: Lloyd I 8 INSURER D: INSURER E: 'OVE AGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS CI At S AND CONDITIONS OF SUCH POLICIES. F LIMITS SHOWN MAY HAVE BEEI 4 REDUCED BY PAID INSR ADD'L POLICY EFFECTIVE POLICY EXPIRATION TYPE OF INSURANCE POLICY NUMBER DATE MMIDDfYY DATE MMIDDIYY LIMITS GENERAL LIABILITY SELF INSURED EACH OCCURRENCE 1,000,1000 DAMAGE TO RENTED S X COMMERCIAL GENERAL LIABILITY P RE curt n CLAIMS MADE D OCCUR MED EXP (Any one person)S PERSONAL 6 ADV INJURY $ G ENERAL AGGREGATE $ GEN'L AGGREGATE LIMIT APPLIES PER: P $ POLICY PRO- LO JECT AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ 1 (Ea accident) X ANY AUTO BODILY INJURY S A ALL OWNED AUTOS AS1691522861037 7/1/2007 7/1/2008 (Per person) SCHEDULED AUTOS X HIREOAUTOS BODILY INJURY S (Per accident) X NON- OWNEDAUTOS PROPERTY DAMAGE S (Per accident) GARAGE LIABILITY AUTO ONLY - EA ACCIDENT S OTHER THAN EA ACC $ ANY AUTO S AUTO ONLY: AGG S 10,000,000 EXCESSNMBRELLALIABILITY AGGREGATE S 10, 000, 000 OCCUR a CLAIMS MADE S $ B DEDUCTIBLE XO630A1A07 7/1/2007 7/1/2008 Is X RETENTION 1,000,000 % WCS ATU- OTH- A WORKERS COMPENSATION AND WA169DS22861067 E.L. EACH ACCIDENT $ 1, 000, 000 EMPLOYERS'LIABILITY ALL STATES EXCEPT SELF E.LDISEASE - EAEMPLOYEES 11000,000 ANY PROPRIETOR /PARTNERIEXECUTIVE OFFICER/MEMBEREXCLUDED? INSURED IN WV & OX 6/30/2007 6/30/2008 E.L. DISEASE - POLICY LIMIT $ 1,000,000 "'a',Ae!=nd N low C OTHER Control of Well 204256 7/1/2006 7/1/2007 $5,000,000 CSL $2,000,000 SubLimit CCC DESCRIPTION OF OPERATIONSILOCATIONSNEHICLES !EXCLUSIONS ADDED BY ENDORSEMENT /SPECIAL PROVISIONS Certificate holder is an additional insured on all policies except Workers' Compensation and granted a waiver of subrogation as required by written contract. City of Kennedale, TX ACORD 25 (2001108) INS025 (oioe).oea SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE Mark Bush /LANE OACORD CORPORATION 1988 Page 1 of 2 1 In IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s), If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement, A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORD 25 (2001108) Page 2 of 2 INS026 (moapaa Martin I Johnson Manager — Field Permitting June 19, 2008 City of Kennedale 405 Municipal Drive Kennedale, TX 76060 Attn: Mr. Larry Hoover Community Development Specialist Re: BOGI 1 H, City of Kennedale, TX Permit to Drill Dear Mr. Hoover: Chesapeake Operating, Inc. respectfully submits the attached items as part of the "Permit Application for Gas Well" for the BOGI 1 H, the surface to be located within the city limits of Kennedale, Texas. I certify that I have prepared this application and that the work will be done in accordance with the provisions of the laws of the State of Texas, the ordinances of the City of Kennedale, and the rules and regulations of the City of Kennedale. Chesapeake Energy Corporation 301 Commerce Street, Suite 600 • Fort Worth, TX 76102 Direct: 817.870.5621 • Cell: 817.718.6037 • Fax 817.810.0450 • martin.johnson @clik.com 51 Ract Pinrinrrlc �1 City of Kennedale Oil and Gas Well • Permit Applicatio PERMIT LEASE INFORMATION: DATE: 6/19/08 LEASE NAME: BOG[ SUB - DIVISION NAME: n/a LEGAL DESCRIPTION: B Joplin A -866 ACRES: _85.69_ CURRENT ZONING: Single Family Residential District OWNER OF RECORD: Bowerman Oil & Gas, Inc. _ ADDRESS: 6300 Ridglea Place Ste. 920 CITY: Fort Worth STATE: PHONE: TX ZIP: 7611 OPERATOR NAME AND RRC NUMBER: Chesapeake Operating, Inc. RRC# 147715 INCORPORATION STATE: _OK_, PARTNERSHIP (list partners on a separate sheet) ADDRESS (no P.O. Boxes):6100 N Western Ave OPERATOR CONTACT Randall Rodrigue (Agent data is added below) CITY: Oklahoma City STATE: - OK ZIP: 73118 OFFICE PHONE (405) 848 -8000 , MOBILE ( ) , EMAIL randy.rodrigue @chk.com_ AGENT TO RECEIVE NOTICE (if different than operator): Tim Dug ADDRESS (no P.O. Boxes):421 Marti Drive CITY: Cleburne STATE: _TX OFFICE PHONE (817) 759 -2450 , MOBILE ( ) EMERGENCY 24 -HOUR CONTACT PERSON: _Tim Duga ADDRESS (no P.O. Boxes): 421 Marti Drive CITY: Cleburne STATE:—TX OFFICE PHONE ( ) MOBILE ( ) SURFACE OWNER UNDER PAD SITES: Bowerman Oil & Gas, Inc. ADDRESS (no P.O. Boxes): 6300 Ridglea Place Ste. 920 CITY: Fort Worth STATE: TX OFFICE PHONE ( ) MOBILE ( ) ZIP: 76003 EMAIL tim.dugan @chk.com ZIP: 76003 EMAIL tim.dugan @chk.com ZIP: 76116 , EMAIL WELL INFORMATION: WELL NAME: _BOGI PAD SITE WELL NUMBER 1 H WELL API: 42- _439_- _33447_, RRC PERMIT NUMBER: _663350 ABSTRACT: _866 , SURVEY: _B Jopli X- COORDINATE: 2093937.1 Y- COORDINATE: _354238.174 City of Kennedale Oil and Gas Well Drilling Permit Operator does hereby expressly release and discharge all claims, demands, actions, judgments, and executions which it ever had, or now has or may have, or assigns may have, or claim to have, against the City of Kennedale and /or its departments, its agents, officers, servants, successors, assigns, sponsors, volunteers, or employees, created by, or arising out of personal injuries, known or unknown, and injuries to property, real or personal, or in any way incidental to or in connection with the performance of the work performed by the operator under an Oil and Gas Well Permit and the operator caused by or arising out of , that sequence of events which occur from the operator under the Oil and Gas Well Permit and work performed by the operator shall fully defend, protect, indemnify, and hold harmless the City of Kennedale, Texas, and /or its departments, agents, officers, servants, employees, successors, assigns, sponsors, or volunteers from and against each and every claim, demand, or cause of action and any and all liability, damages, obligations, judgments, losses, fines, penalties, costs, fees, and expenses incurred in the defense of the City of Kennedale, Texas, and /or its departments, agents, officers, servants, or employees, including, without limitation, personal injuries and death in connection therewith which may be made or asserted by the Operator, its agents, assigns, or any third parties on account of, arising out of, or in any way incidental to or in connection with the performance of the work performed by the Operator under an Oil and Gas Well Permit, and the Operator agrees to indemnify and hold harmless the City of Kennedale, Texas, and /or its departments, and /or its officers, agents, servants, employees, successors, assigns, sponsors, or volunteers from any liabilities or damages suffered as a result of claims, demands, costs, or judgments against the City and /or, its departments, its officers, agents, servants, or employees, created by, or arising out of the acts or omissions of the City of Kennedale, occurring on the drill site or operation site in the course and scope of inspecting and permitting the gas wells INCLUDING, BUT NOT LIMITED TO, CLAIMS AND DAMAGES ARISING IN WHOLE OR IN PART FROM THE SOLE NEGLIGENCE OF THE CITY OF KENNEDALE OCCURRING ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE OIL AND GAS WELLS. IT IS UNDERSTOOD AND AGREED THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED BY THE OPERATOR TO INDEMNIFY AND PROTECT THE CITY OF KENNEDALE, TEXAS, AND /OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES FROM THE CONSEQUENCES OF THE NEGLIGENCE OF THE CITY OF KENNEDALE, TEXAS AND /OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES, WHETHER THAT NEGLIGENCE IS THE SOLE OR CONTRIBUTING CAUSE OF THE RESULTANT INJURY, DEATH, AND /OR DAMAGE. LIABILITY FOR THE SOLE NEGLIGENCE OF THE CITY IN THE COURSE AND SCOPE OF ITS DUTY TO INSPECT AND PERMIT THE GAS WELL IS LIMITED TO THE MAXIMUM AMOUNT OF RECOVERY UNDER THE TORT CLAIMS ACT. ACKNOWLEDGEMENTS: I certify that the above information is correct and complete and that I am now or will be fully prepared to present the above proposal to the permit authority and have obtained a Special Exception and will comply with all stipulations set forth by the City of Kennedale Board of Adjustments and Appeals. I further certify that I have read, understand and will comply with the information contained in the Gas Drilling and Production Chapter of the Code of the City of Kennedale. The terms and provisions of the "Gas Drilling and Production" Chapter of the Code of the City of Kennedale, as amended, are incorporated into this Gas Drilling and Production Permit as if written word herein and shall be considered terms and conditions of the Permit applied for. Operator: Signature Date: BEFORE,ME, t dersi n d dut i 41 - i-D_ )�) K Ae' -w (o) the foregoing instrument, and acl therein expressed as the act and d GIVEN UNDER MY HAND AND S INER M. BARCIA MOON EXPIRES Jum 1, 9010 Inc. °---� Printed: y, a Notary Public in and for the State of Texas, on this day personally appeared or agent name), known to me to be the person whose name is subscribed to led kto m th d same for the purposes and consideration of rd in the capacity therein stated. OF O Public In and Ur Tlie State of Texas My Commission Expires: tl�' Railroad Commission of 'Texas PERMIT TO DRILL, RECOMPLETE, OR RE -ENTER ON REGULAR OR ADMINISTRATIVE EXCEPTION LOCATION CONDITIONS AND INSTRUCTIONS Permit Invalidation. It is the operator's responsibility to make sure that the permitted location complies with Commission density and spacing rules in effect on the spud date. The permit becomes invalid automatically if, because of a field rule change or the drilling of another well, the stated location is not in compliance with Commission field rules on the spud date. If this occurs, application for an exception to Statewide Rules 37 and 38 must be made and a special permit granted prior to spudding. Failure to do so may result in an allowable not being assigned and/or enforcement procedures being initiated. Permit expiration. This permit expires two (2) years from the date of issuance shown on the permit unless actual drilling operations have begun. The permit period will not be extended. If a permit is materially amended, the expiration date is two (2) years from the time the amended permit is issued. Drilling Permit Number. The drilling permit number shown on the permit MUST be given as a reference with any notification to the district (see below), correspondence, or application concerning this permit. Rule 37 Exception Permits. This Statewide Rule 37 exception permit is granted under either provision 37 (h)(2)(A) or 37(h)(2)(13). Be advised that a permit granted under 37(h)(2)(A), notice of application, is subject to the General Rules of Practice and Procedures and if a protest is received under Section 1.3, "Filing of Documents," and/or Section 1.4, "Computation of Time," the permit may be deemed invalid. Before Drilling Fresh Water Sand Protection. The operator must set and cement sufficient surface casing to protect all usable - quality water, as defined by the Tx Natural Resource Conservation Commission. Before drilling a well, the operator must obtain a letter from the Texas Natural Resource Conservation Commission stating the depth to which water needs protection, Write: Texas Natural Resource Conservation Commission (Surface Casing- MC151), P.O. Box 13087, Austin, TX 78711 -3087. File a copy of the letter with the appropriate district office. During Drilling Permit at Drilling Site. A copy of the Form W -1 Drilling Permit Application, the location plat, a copy of Statewide Rule 13 alternate surface casing setting depth approval from the district office, if applicable, and this drilling permit must be kept at the permitted well site throughout drilling operations. *Notification of Setting Casing. The operator MUST call in notification to the appropriate district office (phone number shown the on permit) a minimum of eight (8) hours prior to the setting of surface casing, intermediate casing, AND production casing. The individual giving notification MUST be able to advise the district office of the drilling permit number. Completion of Drilling Producing Well. Statewide Rule 16 requires that the operator submit a Form W -2 (oil well) or Form G -1 (gas well) to the appropriate Commission district office within thirty (30) days after completion of such well. Completion of the well in a field authorized by this permit voids the permit for all other fields included in the permit unless the operator indicates on the initial completion report that the well is to be a dual or multiple completion and promptly submits an application for multiple completion. All zones are required to be completed before the expiration date on the existing permit. Statewide Rule 40(d) requires that upon successful completion of a well in the same reservoir as any other well previously assigned the same acreage, proration plats and P -15s (if required) must be submitted with no double assignment of acreage. Dry or Noncommercial Hole. Statewide Rule 14(b)(2) prohibits suspension of operations on each dry or non - commercial well without plugging unless the hole is cased and the casing is cemented in compliance with Commission rules. If properly cased, Statewide Rule 14(b)(2) requires that plugging operations must begin within a period of one (1) year after drilling or operations have ceased. Plugging operations must proceed with due diligence until completed. An extension to the one -year plugging requirement may be granted under the provisions stated in Statewide Rule 14(b)(2). Intention to Plug. The operator must file a Form W -3A (Notice of Intention to Plug and Abandon) with the district office at least five (5) days prior to beginning plugging operations. If, however, a drilling rig is already at work on location and ready to begin plugging operations, the district director or the director's delegate may waive this requirement upon request, and verbally approve the proposed plugging procedures. *Notification of Plugging a Dry Hole. The operator MUST call in notification to the appropriate district office (phone number shown on permit) a minimum of four (4) hours prior to beginning plugging operations. The individual giving the notification MUST be able to advise the district office of the drilling permit number and all water protection depths for that location as stated in the Tx Natural Resource Conservation Commission letter. *NOTIF ICATION The operator is REQUIRED to notify the district office when setting surface casing, intermediate casing, and production casing, or when plugging a dry hole. Time requirements are given above. The drilling permit number MUST be given with such notifications. DIRECT INQUIRIES TO: DRILLING PERMIT SECTION, OIL AND GAS DIVISION MAIL. PHONE (512) 463 -6751 PO Box 12967 Austin, Texas, 78711 -2967 RAILROAD COMMISSION OF TEXAS OIL & GAS DIVISION PERMIT TO DRILL, DEEPEN, PLUG BACK, OR RE -ENTER ON A REGULAR OR ADMINISTRATIVE EXCEPTION LOCATION PERMIT NUMBER DATE PERMIT ISSUED OR AMENDED DISTRICT 663350 Jun 18, 2008 05 API NUMBER FORM W -1 RECEIVED COUNTY 42- 439 -33447 May 30, 2008 TARRANT TYPE OF OPERATION WELLBORE PROFILE(S) ACRES NEW DRILL Horizontal 85.69 OPERATOR 147715 NOTICE This permit and any allowable assigned may be CHESAPEAKE OPERATING, INC. revoked if payment for fee(s) submitted to the Commission is not honored. ATTN CHRISTIAN COMBS District Office Telephone No: PO BOX 18496 (903) 984 -3026 OKLAHOMA CITY, OK 73154 LEASE NAME WELL NUMBER BOGI 1H LOCATION TOTAL DEPTH 0 miles Within direction from KENNEDALE 9000 Section, Block and/or Survey SECTION < BLOCK { ABSTRACT { 866 sURvEY { JOPLIN, B DISTANCE TO SURVEY LINES DISTANCE TO NEAREST LEASE LINE 593 ft. W 612 ft. N 330 ft. DISTANCE TO LEASE LINES DISTANCE TO NEAREST WELL ON LEASE 442 ft. N 805 ft. W See FIELD(s) Below FIELD(s) and LIMITATIONS: FIELD NAME ACRES DEPTH WELL # DIST' LEASE NAME NEAREST LEASE NEAREST WE ------------------------------------------------------- ------- NEWARK, EAST (BARNETT SHALE) - - - - -- -- - - - - -- --- -- -- -- - - - -- -- - -- 85.69 7,216 1H 09 BOGI 330 0 ------------------------------------------------------- WELLBORE PROFILE(s) FOR FIELD: Horizontal ------------------------------------------------------- RESTRICTIONS: Lateral: TH1 Penetration Point Location Lease Lines: 721.0 F E L 771.0 F N L Terminus Location Lease Lines: 731.0 F E L 330.0 F S L Survey Lines: 681.0 F E L 1393.0 F S L THE FOLLOWING RESTRICTIONS APPLY TO ALL FIELDS This well shall be completed and produced in compliance with applicable special field or statewide spacing and density rules. If thi: well is to be used for brine mining, underground storage of liquid hydrocarbons in salt formations, or underground storage of gas in salt formations, a permit for that specific purpose must be obtained from Environmental Services prior to construction, including drilling, of the well in accordance with Statewide Rules 81, 95, and 97. Data Validation Time Stamp: Jun 18, 2008 3:56 PM('A&J fged' Version) Page 2 of 2 RAILROAD COMMISSION OF TEXAS CERTIFICATE OF Oil and Gas Division PO Box 12967 POOLING AUTHORITY Austin, Texas 78711 -2967 tvww.rra.state.tx.us Rev)sed 0512001 1. Field Name(s) 2. Lease/ID Number (dasslgned) 3. RRC District Number Newark, East (Barnett Shale) 09 4. Operator Name 5. Operator P-5 Number 6. Well Number Chesapeake Operating, Inc 147715 1 H 7. Pooled Unit Name 6. API Number 9. Purpose of Filing Bogi Q Drilling Permit (W -1) 10. County I I.Total acres in pooled unit Tarrant . 85.686 ❑ Completion Report DESCRIPTION OF INDIVIDUAL TRACTS CONTAINED WITHIN THE POOLED UNIT TRACT /PLAT TRACT ACRES IN TRACT INDICATE UNDMDED INTERESTS IDENTIFIER NAME (Seeinsf #7 below) UNLEASED NON- POOLED 1 Bowerman 011 & Gas 45.410 n _ 2 Everett Head 5.329 3 Addle Faulkner 1.057 n 4 Dennis Faulkner 4.204 Cl2 5 Gilbert Smith 5.347 FJ 0 6 Michael Spaeth 0.961 n n 7 Largo Energy Inc 4.688 n n 8 Phillip Coulson 2.608 n 9 Donald McCrary 5.212 10 Largo Energy 0.488 F] n CERTIFICATION: I declare under penalties prescribed pursuant to the Sec. 91.143, Texas Natural Resources Code, that I am authorized to make the for going statements and that the information provided by me or under my direction on this Certificate of Pooling Authority is true, cl rest, and complete to the best of my knowledge. Bill G. Spencer Sign ture Print Name C onsult an t bgsaustin @sbcglobal.net 05/ (512) 918 -1062 Title E-mail (xava9abfe) Date Phone INSTRUCTIONS — Reference: Statewide Rules 31, 38 and 40 1. When two or more tracts are pooled to form a unit to obtain a drilling permit, file completion paperwork, or reform a pooled unit pursuant to Rule 38(d)(3) the operator must file an original Certificate of Pooling Authority and certified plat. 2. The certified plat shall designate each tract with an outline and a tract identifier. The tract identifier on the plat shall correspond to the tract Identifier and associated information listed on the Certificate. 3. if within an individual tract, a non - pooled and/or unleased Interest exists, indicate by checking the appropriate box. 4. If the Purpose of Filing Is to obtain a drilling permit, in box #1 list all applicable fields separately or enter "All Fields" if the Certificate pertains to alt fields requested on Form W -1. 5. If the Purpose of Filing is to file Completion paperwork, enter the applicable field name In box #1 for the completion. 6. Identify the drill site tract with an'to the left of the tract identifier. 7. The total number of acres in the pooled unit in #11 should equal the total of all acres in the individual tracts listed. Page 1 of 2 RAILROAD COMMISSION OF TEXAS CERTIFICATE OF Oil and Gas Division PO Box 12967 POOLING AUTHORITY Austin, Texas 78711 -2967 www.rrc.state.ix.us Revised 052009 1. Field Name(s) 2. LeaseAD Number (dasstyned) 3. RRC District Number Newark, East (Barnett Shale) Charles Blish 09 4. Operator Name 5. Operator P -5 Number 6. Well Number Chesapeake Operating, Inc 147715 1 H 7. Pooled Unit Name 8. API Number 9. Purpose of Fling BOgi Kenny Kirby ❑✓ Drilling Permit (W -1) 10. County 11.Total acres in pooled unit Tarrant 85.686 ❑ Completion Report DESCRIPTION OF INDIVIDUAL TRACTS CONTAINED WITHIN THE POOLED UNIT TRACT /PLAT IDEWIFIER TRACT NAME ACRES IN TRACT INDICATE UNDIVIDED INTERESTS Lee Inst. #7 below) UNLEASED NON - POOLED 11 Charles Blish 3.767 12 Danny Prater 0.965 n n 13 Eugene Grammer 2.865 F] n 14 Jorge Rico 0.548 n n 15 Kenny Kirby 1.135 n n 16 Douglas. Parker 1.102 r] n n n _ CERTIFICATION: I declare under penalties prescribed pursuant to the Sec. 91.143, Texas Natural Resources Code, that I am authorized to make the forlp ng statements and that the information provided by me or under my direction on this Certificate of Pooling Authority is true, co ct, and complete to the best of my knowledge. Bill G. Spencer zilgriallure Print Name Consultant bgsaustin @sbcg 05/30/2008 (512) 918 -1062 Title E -mail (eavdabre) Date Phone INSTRUCTIONS — Reference: Statewide Rules 31, 38 and 40 1. When two or more tracts are pooled to form a unit to obtain a drilling permit, file completion paperwork, or reform a pooled unit pursuant to Rule 38(d)(3) the operator must file an original Certificate of Pooling Authority and certified plat. 2. The certified plat shall designate each tract with an outline and a tract identifier. The tract identifier on the plat shall correspond to the tract Identifier and associated information listed on the Certificate. 3. if within an individual tract, a non - pooled and/or unleased interest exists, Indicate by checking the appropriate box. 4. If the Purpose of Filing is to obtain a drilling permit, In box #1 list all applicable fields separately or enter 'All Fields" If the Certificate pertains to all fields requested on Form W -1. 5. if the Purpose of Filing Is to file completion paperwork, enter the applicable field name in box #1 for the completion. 6. Identify the drill site tract with an ' to the left of the tract identifier. 7. The total number of acres In the pooled unit in #11 should equal the total of all acres in the individual tracts listed. Page 2 of 2 N 0 O N O) CL a O C) 0) N N N �p - V F-i LO 00 rrow� 41 . N t6 C p 00 C C O U P' El - C C N Q Q °J z y x c6 c M a o Q N jjy`II�' ❑ p _ a> U a p o o' 'p y A N O ® N LO "+s Qi N v ty C p M (� ❑ o a c o. o o y (/1 A ❑ ro z ° A CO Z v m m N Z °' i�. N o U A a b y Q U U J N W 3 c ';, Z N y CL a N �� w Q W () w 3 cls ° OD ro o ¢Zmg w c El 0 c a,�, O c l) w rn °QUO ❑ d ; iw W ® s µ O A c w w ° it e m a) v G Gf O H y tl y _ N ❑ ❑ N G ❑ ® Z ® x r p yy v C LO N 01 W ❑ ® U p Y z� o °o cQ °° a o z W II El pm� °' Q t0 c >, N W cc cu 0 Q[ a� C 3 T N Z Q U' �°' �°�' Z '^ .y a' w G p C c vi t�6 o ® y U `•� H ° . ° E N N N O O ® F-4 pa bo n I-1 N N LLLL .� W Q•• p p �i p V m N ❑ ❑ A � U = a G. 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M Martin J. Johnson Manager — Field Permitting June 19, 2008 City of Kennedale 405 Municipal Drive Kennedale, TX 76060 Attn: Mr. Larry Hoover Community Development Specialist Re: BOGI 2H, City of Kennedale, TX Permit to Drill Dear Mr. Hoover: Chesapeake Operating, Inc. respectfully submits the attached items as part of the "Permit Application for Gas Well" for the BOGI 2H, the surface to be located within the city limits of Kennedale, Texas. I certify that I have prepared this application and that the work will be done in accordance with the provisions of the laws of the State of Texas, the ordinances of the City of Kennedale, and the rules and regulations of the City of Kennedale. Chesapeake Energy Corporation 301 Commerce Sheet, Suite 600 • Fort Worth, TX 76102 Direct: 817.870.5621 • Cell: 817.718.6037 • Fax 817.810.0450 • martin.johnson @chk.com K LEASE NAME: BO SUB - DIVISION NAME: LEGAL DESCRIPTION: B Joplin A -866 ACRES: _85.69 CURRENT ZONING: Single Family Residential District OWNER OF RECORD: Bowerman Oil & Gas, Inc. ADDRESS: 6300 Ridglea Place Ste. 920 PHONE: CITY: Fort Worth STATE: TX ZIP: _76116, OPERATOR NAME AND RRC NUMBER: Chesapeake Operating, Inc. RRC# 147715 INCORPORATION STATE: _OK_, PARTNERSHIP (list partners on a separate sheet) ADDRESS (no P.O. Boxes):6100 N Western Ave OPERATOR CONTACT Randall Rodrigue (Agent data is added below) CITY: Oklahoma City STATE: _OK ZIP: 73118 OFFICE PHONE (405) 848-8000, MOBILE ( ) , EMAIL randy. rod rigue @chk.com_ AGENT TO RECEIVE NOTICE (if different than operator):—Tim Duga ADDRESS (no P.O. Boxes):421 Marti Drive CITY: Cleburne STATE: _TX OFFICE PHONE (817) 759-2450, MOBILE ( ) EMERGENCY 24 -HOUR CONTACT PERSON: _Tim Dugan ADDRESS (no P.O. Boxes): 421 Marti Drive CITY: Cleburne OFFICE PHONE ( ) EMAIL tim.dugan @chk.com STATE: TX MOBILE ( ) SURFACE OWNER UNDER PAD SITES: Bowerman Oil & Gas, Inc. ADDRESS (no P.O. Boxes): 6300 Ridglea Place Ste, 920 CITY: Fort Worth STATE: T; OFFICE PHONE ( ) ZIP: 76003 EMAIL tim.dugan @chk.com MOBILE ( ) ZIP: 7611 . EMAIL ZIP: 76003 WELL INFORMATION: WELL NAME: BOGI PAD SITE WELL NUMBER 2H WELL API: 42- _439_- _33449_, RRC PERMIT NUMBER: _663352 ABSTRACT: —866_, SURVEY: _B Jopli X- COORDINATE: 2093922.17 Y- COORDINATE: 354237.649 City of Kennedale N Oil and Gas Well Drilling Permit Operator does hereby expressly release and discharge all claims, demands, actions, judgments, and executions which it ever had, or now has or may have, or assigns may have, or claim to have, against the City of Kennedale and /or its departments, its agents, officers, servants, successors, assigns, sponsors, volunteers, or employees, created by, or arising out of personal injuries, known or unknown, and injuries to property, real or personal, or in any way incidental to or in connection with the performance of the work performed by the operator under an Oil and Gas Well Permit and the operator caused by or arising out of , that sequence of events which occur from the operator under the Oil and Gas Well Permit and work performed by the operator shall fully defend, protect, indemnify, and hold harmless the City of Kennedale, Texas, and /or its departments, agents, officers, servants, employees, successors, assigns, sponsors, or volunteers from and against each and every claim, demand, or cause of action and any and all liability, damages, obligations, judgments, losses, fines, penalties, costs, fees, and expenses incurred in the defense of the City of Kennedale, Texas, and /or its departments, agents, officers, servants, or employees, including, without limitation, personal injuries and death in connection therewith which may be made or asserted by the Operator, its agents, assigns, or any third parties on account of, arising out of, or in any way incidental to or in connection with the performance of the work performed by the Operator under an Oil and Gas Well Permit, and the Operator agrees to indemnify and hold harmless the City of Kennedale, Texas, and /or its departments, and /or its officers, agents, servants, employees, successors, assigns, sponsors, or volunteers from any liabilities or damages suffered as a result of claims, demands, costs, or judgments against the City and /or, its departments, its officers, agents, servants, or employees, created by, or arising out of the acts or omissions of the City of Kennedale, occurring on the drill site or operation site in the course and scope of inspecting and permitting the gas wells INCLUDING, BUT NOT LIMITED TO, CLAIMS AND DAMAGES ARISING IN WHOLE OR IN PART FROM THE SOLE NEGLIGENCE OF THE CITY OF KENNEDALE OCCURRING ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE OIL AND GAS WELLS. IT IS UNDERSTOOD AND AGREED THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED BY THE OPERATOR TO INDEMNIFY AND PROTECT THE CITY OF KENNEDALE, TEXAS, AND /OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES FROM THE CONSEQUENCES OF THE NEGLIGENCE OF THE CITY OF KENNEDALE, TEXAS AND /OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES, WHETHER THAT NEGLIGENCE IS THE SOLE OR CONTRIBUTING CAUSE OF THE RESULTANT INJURY, DEATH, AND /OR DAMAGE. LIABILITY FOR THE SOLE NEGLIGENCE OF THE CITY IN THE COURSE AND SCOPE OF ITS DUTY TO INSPECT AND PERMIT THE GAS WELL IS LIMITED TO THE MAXIMUM AMOUNT OF RECOVERY UNDER THE TORT CLAIMS ACT. ACKNOWLEDGEMENTS: I certify that the above information is correct and complete and that I am now or will be fully prepared to present the above proposal to the permit authority and have obtained a Special Exception and will comply with all stipulations set forth by the City of Kennedale Board of Adjustments and Appeals. I further certify that I have read, understand and will comply with the information contained in the Gas Drilling and Production Chapter of the Code of the City of Kennedale. The terms and provisions of the "Gas Drilling and Production" Chapter of the Code of the City of Kennedale, as amended, are incorporated into this Gas Drilling and Production Permit as if written word herein and shall be considered terms and conditions of the Permit applied for. Operator: ke, per ' g, Inc. Signature: Printed: ffi&ffjI1 a . Date: IQ . t D FORE ME, t u s e uthority, a Notary Public in and for the State of Texas, on this day personally appeared /Mkt � (owner or agent name), known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledved to me e/ a ,that ,axe uted same for the purposes and consideration therein expressed as the act and deed of T , and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF O HEATHER M, BARCIA MY CQMMISSION EXPIRES Jurte 1, 2010 ry Public In aVd ForThe State of Texas My Commission Exp Railroad Commission of Texas PERMIT TO DRILL, RECOMPLETE, OR RE -ENTER ON REGULAR OR ADMINISTRATIVE EXCEPTION LOCATION CONDITIONS AND INSTRUCTIONS Permit Invalidation. It is the operator's responsibility to make sure that the permitted location complies with Commission density and spacing rules in effect on the spud date. The permit becomes invalid automatically if, because of a field rule change or the drilling of another well, the stated location is not in compliance with Commission field rules on the spud date. If this occurs, application for an exception to Statewide Rules 37 and 38 must be made and a special permit granted prior to spudding. Failure to do so may result in an allowable not being assigned and/or enforcement procedures being initiated. Permit expiration. This permit expires two (2) years from the date of issuance shown on the permit unless actual drilling operations have begun. The permit period will not be extended. If a permit is materially amended, the expiration date is two (2) years from the time the amended permit is issued. Drilling Permit Number. The drilling permit number shown on the permit MUST be given as a reference with any notification to the district (see below), correspondence, or application concerning this permit. Rule 37 Exception Permits. This Statewide Rule 37 exception permit is granted under either provision 37 (h)(2)(A) or 37(h)(2)(B). Be advised that a permit granted under 37(h)(2)(A), notice of application, is subject to the General Rules of Practice and Procedures and if a protest is received under Section 1.3, "Filing of Documents," and/or Section 1.4, "Computation of Time," the permit may be deemed invalid. Before Drilling Fresh Water Sand Protection. The operator must set and cement sufficient surface casing to protect all usable - quality water, as defined by the Tx Natural Resource Conservation Commission. Before drilling a well, the operator must obtain a letter from the Texas Natural Resource Conservation Commission stating the depth to which water needs protection, Write: Texas Natural Resource Conservation Commission (Surface Casing- MC151), P.O. Box 13087, Austin, TX 78711 -3087. File a copy of the letter with the appropriate district office. During Drilling Permit at Drilling Site. A copy of the Form W -1 Drilling Permit Application, the location plat, a copy of Statewide Rule 13 alternate surface casing setting depth approval from the district office, if applicable, and this drilling permit must be kept at the permitted well site throughout drilling operations. *Notification of Setting Casing. The operator MUST call in notification to the appropriate district office (phone number shown the on permit) a minimum of eight (8) hours prior to the setting of surface casing, intermediate casing, AND production casing. The individual giving notification MUST be able to advise the district office of the drilling permit number. Completion of Drilling Producing Well. Statewide Rule 16 requires that the operator submit a Form W -2 (oil well) or Form G -1 (gas well) to the appropriate Commission district office within thirty (30) days after completion of such well. Completion of the well in a field authorized by this permit voids the permit for all other fields included in the permit unless the operator indicates on the initial completion report that the well is to be a dual or multiple completion and promptly submits an application for multiple completion. All zones are required to be completed before the expiration date on the existing permit. Statewide Rule 40(d) requires that upon successful completion of a well in the same reservoir as any other well previously assigned the same acreage, proration plats and P -15s (if required) must be submitted with no double assignment of acreage. Dry or Noncommercial Hole. Statewide Rule 14(b)(2) prohibits suspension of operations on each dry or non - commercial well without plugging unless the hole is cased and the casing is cemented in compliance with Commission rules. If properly cased, Statewide Rule 14(b)(2) requires that plugging operations must begin within a period of one (1) year after drilling or operations have ceased. Plugging operations must proceed with due diligence until completed. An extension to the one -year plugging requirement may be granted under the provisions stated in Statewide Rule 14(b)(2). Intention to Plug. The operator must file a Form W -3A (Notice of Intention to Plug and Abandon) with the district office at least five (5) days prior to beginning plugging operations. If, however, a drilling rig is already at work on location and ready to begin plugging operations, the district director or the director's delegate may waive this requirement upon request, and verbally approve the proposed plugging procedures. *Notification of Plugging a Dry Hole. The operator MUST call in notification to the appropriate district office (phone number shown on permit) a minimum of four (4) hours prior to beginning plugging operations. The individual giving the notification MUST be able to advise the district office of the drilling permit number and all water protection depths for that location as stated in the Tx Natural Resource Conservation Commission letter. *NOTIFICATION The operator is REQUIRED to notify the district office when setting surface casing, intermediate casing, and production casing, or when plugging a dry hole. Time requirements are given above. The drilling permit number MUST be given with such notifications. DIRECT INQUIRIES TO: DRILLING PERMIT SECTION, OIL AND GAS DIVISION MAIL: PHONE PO Box 12967 (512) 463 -6751 Austin, Texas, 78711 -2967 Eaqp 1 of 2 RAILROAD COMMISSION OF TEXAS OIL & GAS DIVISION PERMIT TO DRILL, DEEPEN, PLUG BACK, OR RE -ENTER ON A REGULAR OR ADMINISTRATIVE EXCEPTION LOCATION PERMIT NUMBER DATE PERMIT ISSUED OR AMENDED DISTRICT 663352 Jun 18, 2008 05 API NUMBER FORM W -1 RECEIVED COUNTY 42- 439 -33449 May 30, 2008 TARRANT TYPE OF OPERATION WELLBORE PROFILE(S) ACRES NEW DRILL Horizontal 85.69 OPERATOR 147715 NOTICE This permit and any allowable assigned may be CHESAPEAKE OPERATING, INC. revoked if payment for fee(s) submitted to the Commission is not honored. District Office Telephone No: (903) 984 -3026 LEASE NAME WELL NUMBER BOGI 2H LOCATION TOTAL DEPTH 0 miles Within direction from KENNEDALE 9000 Section, Block and /or Survey SECTION < BLOCK < ABSTRACT.{ 866 SURVEY{ JOPLIN, B DISTANCE TO SURVEY LINES DISTANCE TO NEAREST LEASE LINE 578 ft. W 612 ft. N 330 ft. DISTANCE TO LEASE LINES DISTANCE TO NEAREST WELL ON LEASE 442 ft. N 790 ft. W See FIELD(s) Below FIELD(s) and LIMITATIONS: FIELD NAME ACRES DEPTH WELL # DIST' LEASE NAME NEAREST LEASE NEAREST WE ------------------------------------- ---- --------------------- NEWARK, EAST (BARNETT SHALE) - - - - -- -- -- - - -- -- - - - - - -- - - - -- 85.69 7,216 2H 09 330 357 BOGI ------------------------------------------------------- WELLBORE PROFILE(s) FOR FIELD: Horizontal ------------------------------------------------------- RESTRICTIONS: Lateral: Txl Penetration Point Location Lease Lines: 330.0 F N L 1179.0 F W L Terminus Location Lease Lines: 1145.0 F E L 330.0 F S L Survey Lines: 1096.0 F E L 1384.0 F S L THE FOLLOWING RESTRICTIONS APPLY TO ALL FIELDS This well shall be completed and produced in compliance with applicable special field or statewide spacing and density rules. If thi: well is to be used for brine mining, underground storage of liquid hydrocarbons in salt formations, or underground storage of gas in salt formations, a permit for that specific purpose must be obtained from Environmental Services prior to construction, including drilling, of the well in accordance with Statewide Rules 81, 95, and 97. Data Validation Time Stamp: Jun 18, 2008 3:3 VV Approved' Version) Fage z or z RAILROAD COMMISSION OF TEXAS CERTIFICATE OF Oil and Gas Division PO Box 12967 POOLING AUTHORITY Austin, Texas 78711 -2967 wwwrrc.state.tx.us Revised 052001 1. Feld Name(s) 2. Lease/ID Number (Ifassigned) 3. RRC District Number Newark, East (Barnett Shale) 09 4. Operator Name 5. Operator P -5 Number 6. Well Number Chesapeake Operating, Inc 147715 2H 7. Pooled Unit Name 8. API Number 9. Purpose of Fling Bogi ❑J Drilling Permit (W -1) 10. County 11.Total acres In pooled unit Tarrant 85.686 ❑ Completion Report DESCRIPTION OF INDIVIDUAL TRACTS CONTAINED WITHIN THE POOLED UNIT TRACT /PLAT TRACT ACRES IN TRACT INDICATE UNDIVIDED INTERESTS IDENTIFIER NAME tSee1nsf. #7be16w) UNLEASED NON - POOLED 1 Bowerman Oil & Gas 45.410 n n 2 Everett Head 5.329 n 3 Addie Faulkner 1.057 n n 4 Dennis Faulkner 4.204 —�__ l 5 Gilbert Smith 5.347 n n 6 Michael Spaeth 0.961 n n 7 Largo Energy Inc 4.688 F] ❑ 8 Phillip Coulson 2.608 n n 9 Donald McCrary 5.212 ❑ El 10 Largo Energy 0.488 n n CERTIFICATION: I declare under penalties prescribed pursuant to the Sec. 91.143, Texas Natural Resources Code, that I am authorized to make the foregoing statements and that the information provided by me or under my direction on this Certificate of Pooling Authority is true, ct, and complete to the best of my knowledge. Bill G. Spencer Sign tore Print Name Consultant bgsaustin @sbcglobal. 0 (512) 918 -1062 Title E -mail (Xavambie) Date Phone INSTRUCTIONS — Reference: Statewide Rules 31, 38 and 40 1. When two or more tracts are pooled to form a unit to obtain a drilling permit, file completion paperwork, or reform a pooled unit pursuant to Rule 38(d)(3) the operator must file an original Certificate of Pooling Authority and certified plat. 2. The certified plat shalt designate each tract with an outline and a tract identifier. The tract Identifier on the plat shall correspond to the tract identifier and associated information listed on the Certificate. 3. if within an individual tract, a non - pooled and/or unleased Interest exists, Indicate by checking the appropriate box 4. If the Purpose of Filing is to obtain a drilling permit, in box #1 list all applicable fields separately or enter "Ail Fields" if the Certificate pertains to all fields requested on Form W -1. 5, if the Purpose of Filing is to file completion paperwork, enter the applicable field name In box #1 for the completion. 6. Identify the drill site tract with an * to the left of the tract identifier. 7. The total number of acres in the pooled unit in #11 should equal the total of all acres in the Individual tracts listed. Page 1 of 2 RAILROAD COMMISSION OF TEXAS CERTIFICATE OF Oil and Gas Division PO Box 12967 POOLING AUTHORITY Austin, Texas 78711 -2967 www rmstate.tx.us Revised 0512009 1. Field Name(s) 2. Lease/ID Number (Hassigned) 3. RRC District Number Newark, East (Barnett Shale) Charles Blish 09 4. Operator Name 5. Operator P -5 Number 6. Well Number Chesapeake Operating, Inc 147715 2H 7. Pooled Unit Name 8. API Number 9. Purpose of Filing Bogi Kenny Kirby 0 Drilling Permit (W -1) 10. County 11.Total acres in pooled unit Tarrant 85.686 ❑ Completion Report DESCRIPTION OF INDIVIDUAL TRACTS CONTAINED WITHIN THE POOLED UNIT TRACT /PLAT IDENTIFIER TRACT NAME ACRES IN TRACT INDICATE UNDIVIDED INTERESTS (Seeinst #7 below) UNLEASED NON- POOLED 11 Charles Blish 3.767 ❑ ❑ 12 Danny Prater 0.965 ❑ ❑ 13 Eugene Grammer 2.865 ❑ ❑ 14 Jorge Rico 0.548 ❑ 15 Kenny Kirby 1.135 ❑ ❑ 16 Douglas Parker 1.102 I -� 1 CERTIFICATION: I declare under penalties prescribed pursuant to the Sec. 91.143, Texas Natural Resources Code, that I am authorized to make the foregoing statements and that the Information provided by me or under my direction on this Certificate of Pooling Authority is true, cor , and complete to the best of my knowledge. Bill G. Spencer Signatu Print Name Consultant bgsaustin @sbcglobal.net Title E-mail (rravasawe) 05130/2008 Date (512) 918 - 1062 Phone INSTRUCTIONS — Reference: Statewide Rules 31, 38 and 40 1. When two or more tracts are pooled to form a unit to obtain a drilling permit, file completion paperwork, or reform a pooled unit pursuant to Rule 38(d)(3) the operator must file an original Certificate of Pooling Authority and certified plat. 2. The certified plat shall designate each tract with an outline and a tract identifier. The tract identifier on the plat shall correspond to the tract identifier and associated information listed on the Certificate. 3. If within an Individual tract, a non - pooled and /or unleased Interest exists, Indicate by checking the appropriate box 4. If the Purpose of Filing is to obtain a drilling permit, in box #1 list all applicable fields separately or enter "All Fields" If the Certificate pertains to all fields requested on Form W -1. 5. If the Purpose of Filing is to file completion paperwork, enter the applicable field name in box #1 for the completion. 6. Identify the drill site tract with an * to the left of the tract Identifier. 7. The total number of acres in the pooled unit In #11 should equal the total of all acres in the Individual tracts listed. Page 2 of 2 N 0 N rn cu 0_ lQ 0 C) N CO 4� L C m 00 _ z �a C4 O t6 Q' tiro M sa M 8 Q 0 ❑ Y = U m Z p 0 0 0 Y ° G O A cn Z N ® o 0o a�i ca ® W co N 4 b • + 7 ti N ° N ° Ln H ❑ ° o w c M r Q Q P s ❑ T Iz c z o Q3 In z p0 o N v " o w ° o F d N W U W v 3 b ❑ z � y Z w v I A CL 0_ 0 (n r. v w v ❑ C O N Q H ..r = N m o m Co o ❑ 3 ^� ti 3 o U w o o o r- 0 ° „ 8 U W w° o O o O ❑ Q ro m ro cn p o o C� y W p ❑ a a v "0 (� rn W El a E] " • L a> � Q a y Z O a N ` o ;u C c ( a ° N cl W d C ® U ® o R v, o N Y d Z o0 p N 4 0 , y H O LO p ° y b D7 r cn C Z o Z z ® ro p z m E °n° Z o Q y 0 0 ¢� J -� o n . z . ' 0 N O p ,-. .-. N V o ..�.. 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Yo a -� W R' o P. a O u- N co O 2 �Z L LL ^ LL _ O _I o y ° o Q AU 3 •° y c Y ~ °~ C) N Z Z O on W Z c a z F y ° U _ p o o D W U 0 1— ` c d m C D c.4� r, pQ'1 A cn (D `p l-4 C's CO N N N LL N Q m N N 0 N rn cu 0_ lQ ";T C O 4 N i+ ti C W C H C N"I C m ,S G LO 00 M O CO N O 00 C ^ 1�� H b z�. d' Ci U N • ^ti 4 5 5 q y fi o U d d o � o � o ti O U � V s� ti LO„ O o• > O y CL CL II fi Q ��s O y � y �s d s o � � a g a q im N `+--' O N N 0) ca n N d z C C C U� 0 �O Q 05 o; . CD U) � rn V ° O m n 0 U (D w r o o w z o N 4 000 N d7 r M LO ce) ° 00 co M r ' p . c c c a jL ro ro ro o 0 LL] . N U � Z = m b0 (n O U' Z Z J a ~ Z O <° Q W W Z LLI o a m O 0 Y U W N~ a CL Y oo a� W 2 E °a m E a W ° o Z U o Z 0 a a O m o a a O ccj C cV U G 0.1 v c– �— P o z a) o N GO o LO -C G C o a O I-- o E " E N m ccc6 u n J v d im N `+--' O N N 0) ca n U S 2 to mN co m m W I a URN sera S� zitr'S� Nina 11 a z z N N N e Y � � Q 2 - P ° x to uM o �Q O v { !%1 C 'D 4! ¢ 0] F= 11. �a I 8 I > d 7 O> y I o¢ 2 to al s z =o nY I JQ o _ ° s e ° N ° ° �p d � d I n an�°.FSrygg n�� °p � I tai d� ov i o I I i V) o moo • 'o a $ m 0 N� Martin J. Johnson Manager — Field Permitting June 19, 2008 City of Kennedale 405 Municipal Drive Kennedale, TX 76060 Attn: Mr. Larry Hoover Community Development Specialist Re: BOGI 3H, City of Kennedale, TX Permit to Drill Dear Mr. Hoover: Chesapeake Operating, Inc. respectfully submits the attached items as part of the "Permit Application for Gas Well" for the BOGI 3H, the surface to be located within the city limits of Kennedale, Texas. I certify that I have prepared this application and that the work will be done in accordance with the provisions of the laws of the State of Texas, the ordinances of the City of Kennedale, and the rules and regulations of the City of Kennedale. Chesapeake Energy Corporation 301 Commerce Sheet, Suite 600 • Fort Worth, TX 76102 Direct: 817.870.5621 • Cell: 817.718.6037 • Fax 817.810.0450 • martin.johnson @chk.com Best Regards, City of Kennedale Oil and Gas Well Drilling Pe rmit PERMIT LEASE INFORMATION: LEASE NAME: BOG[ SUB - DIVISION NAME: n/a LEGAL DESCRIPTION: B Joplin A -866 CURRENT ZONING: Single Family Residential Di OWNER OF RECORD: Bowerman Oil & Gas, Inc. _ ADDRESS: 6300 Ridglea Place Ste. 920 CITY: Fort Worth STATE PHONE: TX ZIP: 76116 OPERATOR NAME AND RRC NUMBER: Chesapeake Operating, Inc. RRC# 147715 INCORPORATION STATE: _OK_, PARTNERSHIP (list partners on a separate sheet) ADDRESS (no P.O. Boxes):6100 N Western Ave OPERATOR CONTACT Randall Rodrigue (Agent data is added below) CITY: Oklahoma City STATE: _OK ZIP: 73118 OFFICE PHONE (405) 848-8000, MOBILE ( ) , EMAIL randy.rodrigue @chk.com_ AGENT TO RECEIVE NOTICE (if different than operator):–Tim Dugan ADDRESS (no P.O. Boxes):421 Marti Drive CITY: Cleburne STATE: _TX ZIP: _76003 OFFICE PHONE (817) 759 -2450 , MOBILE ( ) , EMAIL tim.dugan @chk.com EMERGENCY 24 -HOUR CONTACT PERSON: _Tim Duga ADDRESS (no P.O. Boxes): 421 Marti Drive CITY: Cleburne STATE:—TX OFFICE PHONE ( ) MOBILE ( ) SURFACE OWNER UNDER PAD SITES: Bowerman Oil & Gas, Inc ADDRESS (no P.O. Boxes): 6300 Ridglea Place Ste. 920 CITY: Fort Worth STATE: TX OFFICE PHONE ( ) MOBILE ( ) ZIP: 76003 EMAIL tim.dugan @chk.com ZIP: 7611 . EMAIL WELL INFORMATION: PAD SITE WELL API: 42- _439_- _33450_, RRC PERMIT NUMBER: _663353 ABSTRACT: 866 , SURVEY: _B Jopli WELL NUMBER X- COORDINATE: 2093907.219 Y- COORDINATE: _354237.1 City of Kennedale Oil and Gas Well Drilling Permit Operator does hereby expressly release and discharge all claims, demands, actions, judgments, and executions which it ever had, or now has or may have, or assigns may have, or claim to have, against the City of Kennedale and /or its departments, its agents, officers, servants, successors, assigns, sponsors, volunteers, or employees, created by, or arising out of personal injuries, known or unknown, and injuries to property, real or personal, or in any way incidental to or in connection with the performance of the work performed by the operator under an Oil and Gas Well Permit and the operator caused by or arising out of , that sequence of events which occur from the operator under the Oil and Gas Well Permit and work performed by the operator shall fully defend, protect, indemnify, and hold harmless the City of Kennedale, Texas, and /or its departments, agents, officers, servants, employees, successors, assigns, sponsors, or volunteers from and against each and every claim, demand, or cause of action and any and all liability, damages, obligations, judgments, losses, fines, penalties, costs, fees, and expenses incurred in the defense of the City of Kennedale, Texas, and /or its departments, agents, officers, servants, or employees, including, without limitation, personal injuries and death in connection therewith which may be made or asserted by the Operator, its agents, assigns, or any third parties on account of, arising out of, or in any way incidental to or in connection with the performance of the work performed by the Operator under an Oil and Gas Well Permit, and the Operator agrees to indemnify and hold harmless the City of Kennedale, Texas, and /or its departments, and /or its officers, agents, servants, employees, successors, assigns, sponsors, or volunteers from any liabilities or damages suffered as a result of claims, demands, costs, or judgments against the City and /or, its departments, its officers, agents, servants, or employees, created by, or arising out of the acts or omissions of the City of Kennedale, occurring on the drill site or operation site in the course and scope of inspecting and permitting the gas wells INCLUDING, BUT NOT LIMITED TO, CLAIMS AND DAMAGES ARISING IN WHOLE OR IN PART FROM THE SOLE NEGLIGENCE OF THE CITY OF KENNEDALE OCCURRING ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE OIL AND GAS WELLS. IT IS UNDERSTOOD AND AGREED THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED BY THE OPERATOR TO INDEMNIFY AND PROTECT THE CITY OF KENNEDALE, TEXAS, AND /OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES FROM THE CONSEQUENCES OF THE NEGLIGENCE OF THE CITY OF KENNEDALE, TEXAS AND /OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES, WHETHER THAT NEGLIGENCE IS THE SOLE OR CONTRIBUTING CAUSE OF THE RESULTANT INJURY, DEATH, AND /OR DAMAGE. LIABILITY FOR THE SOLE NEGLIGENCE OF THE CITY IN THE COURSE AND SCOPE OF ITS DUTY TO INSPECT AND PERMIT THE GAS WELL IS LIMITED TO THE MAXIMUM AMOUNT OF RECOVERY UNDER THE TORT CLAIMS ACT. ACKNOWLEDGEMENTS: I certify that the above information is correct and complete and that I am now or will be fully prepared to present the above proposal to the permit authority and have obtained a Special Exception and will comply with all stipulations set forth by the City of Kennedale Board of Adjustments and Appeals. I further certify that I have read, understand and will comply with the information contained in the Gas Drilling and Production Chapter of the Code of the City of Kennedale. The terms and provisions of the "Gas Drilling and Production" Chapter of the Code of the City of Kennedale, as amended, are incorporated into this Gas Drilling and Production Permit as if written word herein and shall be considered terms and conditions of the Permit applied for. Operator: Signature Date: l Printed: B OR I E � the i n uthority, a Notary Public in and for the State of Texas, on this day personally appeared owner or agent name), known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to a t at h Vs � exe uted same for the purposes and consideration therein expressed as the act and deed o0 Gf ` ,, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this the day of _ , 20 T tMER M. BARCIA NMISSION EXPIRES June 1, 9010 ry Public In and For ,17'he State of Texas My Commission Railroad Commission of Texas PERMIT TO DRILL, RECOMPLETE, OR RE -ENTER ON REGULAR OR ADMINISTRATIVE EXCEPTION LOCATION CONDITIONS AND INSTRUCTIONS Permit Invalidation. It is the operator's responsibility to make sure that the permitted location complies with Commission density and spacing rules in effect on the spud date. The permit becomes invalid automatically if, because of a field rule change or the drilling of another well, the stated location is not in compliance with Commission field rules on the spud date. If this occurs, application for an exception to Statewide Rules 37 and 38 must be made and a special permit granted prior to spudding. Failure to do so may result in an allowable not being assigned and/or enforcement procedures being initiated. Permit expiration. This permit expires two (2) years from the date of issuance shown on the permit unless actual drilling operations have begun. The permit period will not be extended. If a permit is materially amended, the expiration date is two (2) years from the time the amended permit is issued. - Drilling Permit Number. The drilling permit number shown on the permit MUST be given as a reference with any notification to the district (see below), correspondence, or application concerning this permit. Rule 37 Exception Permits. This Statewide Rule 37 exception permit is granted under either provision 37 (h)(2)(A) or 37(h)(2)(B). Be advised that a permit granted under 37(h)(2)(A), notice of application, is subject to the General Rules of Practice and Procedures and if a protest is received under Section 1.3, "Filing of Documents," and/or Section 1.4, "Computation of Time," the permit may be deemed invalid. Before Drilling Fresh Water Sand Protection. The operator must set and cement sufficient surface casing to protect all usable - quality water, as defined by the Tx Natural Resource Conservation Commission. Before drilling a well, the operator must obtain a letter from the Texas Natural Resource Conservation Commission stating the depth to which water needs protection, Write: Texas Natural Resource Conservation Commission (Surface Casing- MC151), P.O. Box 13087, Austin, TX 78711 -3087. File a copy of the letter with the appropriate district office. During Drilling Permit at Drilling Site. A copy of the Form W -1 Drilling Permit Application, the location plat, a copy of Statewide Rule 13 alternate surface casing setting depth approval from the district office, if applicable, and this drilling permit must be kept at the permitted well site throughout drilling operations. *Notification of Setting Casing. The operator MUST call in notification to the appropriate district office (phone number shown the on permit) a minimum of eight (8) hours prior to the setting of surface casing, intermediate casing, AND production casing. The individual giving notification MUST be able to advise the district office of the drilling permit number. Completion of Drilling Producing Well. Statewide Rule 16 requires that the operator submit a Form W -2 (oil well) or Form G -1 (gas well) to the appropriate Commission district office within thirty (30) days after completion of such well. Completion of the well in a field authorized by this permit voids the permit for all other fields included in the permit unless the operator indicates on the initial completion report that the well is to be a dual or multiple completion and promptly submits an application for multiple completion. All zones are required to be completed before the expiration date on the existing permit. Statewide Rule 40(d) requires that upon successful completion of a well in the same reservoir as any other well previously assigned the same acreage, proration plats and P -15s (if required) must be submitted with no double assignment of acreage. Dry or Noncommercial Hole. Statewide Rule 14(b)(2) prohibits suspension of operations on each dry or non - commercial well without plugging unless the hole is cased and the casing is cemented in compliance with Commission rules. If properly cased, Statewide Rule 14(b)(2) requires that plugging operations must begin within a period of one (1) year after drilling or operations have ceased. Plugging operations must proceed with due diligence until completed. An extension to the one -year plugging requirement may be granted under the provisions stated in Statewide Rule 14(b)(2). Intention to Plug. The operator must file a Form W -3A (Notice of Intention to Plug and Abandon) with the district office at least five (5) days prior to beginning plugging operations. If, however, a drilling rig is already at work on location and ready to begin plugging operations, the district director or the director's delegate may waive this requirement upon request, and verbally approve the proposed plugging procedures. *Notification of Plugging a Dry Hole. The operator MUST call in notification to the appropriate district office (phone number shown on permit) a minimum of four (4) hours prior to beginning plugging operations. The individual giving the notification MUST be able to advise the district office of the drilling permit number and all water protection depths for that location as stated in the Tx Natural Resource Conservation Commission letter. *NOTIFICATION The operator is REQUIRED to notify the district office when setting surface casing, intermediate casing, and production casing, or when plugging a dry hole. Time requirements are given above. The drilling permit number MUST be given with such notifications. DIRECT INQUIRIES TO: DRILLING PERMIT SECTION, OIL AND GAS DIVISION MAIL: PHONE PO Box 12967 (512) 463 -6751 Austin, Texas, 78711 -2967 rRyle t f2 RAILROAD COMMISSION OF TEXAS OIL & GAS DIVISION PERMIT TO DRILL, DEEPEN, PLUG BACK, OR RE -ENTER ON A REGULAR OR ADMINISTRATIVE EXCEPTION LOCATION PERMIT NUMBER DATE PERMIT ISSUED OR AMENDED DISTRICT 663353 Jun 18, 2008 05 API NUMBER FORM W -1 RECEIVED COUNTY 42- 439 -33450 May 30, 2008 TARRANT TYPE OF OPERATION WELLBORE PROFILES) ACRES NEW DRILL Horizontal 85.69 OPERATOR 147715 NOTICE This permit and any allowable assigned may be CHESAPEAKE OPERATING, INC. revoked if payment for fee(s) submitted to the Commission is not honored. District Office Telephone No: (903) 984 -3026 LEASE NAME WELL NUMBER BOGI 3H LOCATION TOTAL DEPTH 0 miles Within direction from KENNEDALE 9000 Section, Block and /or Survey SECTION •C BLOCK < ABSTRACT { 866 suRvEy < JOPLIN, B DISTANCE TO SURVEY LINES DISTANCE TO NEAREST LEASE LINE 563 ft. W 613 ft. N 330 ft. DISTANCE TO LEASE LINES DISTANCE TO NEAREST WELL ON LEASE 442 ft. N 775 ft. W See FIELD(s) Below FIELD(s) and LIMITATIONS: FIELD NAME ACRES DEPTH WELL # DIST LEASE NAME NEAREST LEASE NEAREST WE -------------------------------------------------------------- NEWARK, EAST (BARNETT SHALE) - - -- -- -- - -- - -- --- -- - - -- - - - - - -- - -- 85.69 7,216 3H 09 BOGI 330 357 ------------------------------------------------------- WELLBORE PROFILE(s) FOR FIELD: Horizontal ------------------------------------------------------- RESTRICTIONS: Permitted for gas only. Lateral: THl Penetration Point Location Lease Lines: 330.0 F N L 741.0 F W L Terminus Location Lease Lines: 1191.0 F W L 330.0 F S L Survey Lines: 1021.0 F W L 1341.0 F S L THE FOLLOWING RESTRICTIONS APPLY TO ALL FIELDS This well shall be completed and produced in compliance with applicable special field or statewide spacing and density rules. If thi: well is to be used for brine mining, underground storage of liquid hydrocarbons in salt formations, or underground storage of gas in salt formations, a permit for that specific purpose must be obtained from Environmental Services prior to construction, including drilling, of the well in accordance with Statewide Rules 81, 95, and 97. Data Validation Time Stamp: Jun 18, 2008 3:42 Approved' Version) Page 2 of 2 RAILROAD COMMISSION OF TEXAS Oil and Gas Division PO Box 12967 f Austin, Texas 78711 -2967 www.rrc.state.tx_us CERTIFICATE OF POOLING AUTHORITY Revised 05/2001 1. Field Name(s) 2. Lease/10 Number rdasdgned) 3. RRC District Number Newark, East (Barnett Shale) 09 4. Operator Name S. Operator P -5 Number 8. Well Number Chesapeake Operating, Inc 147715 3H 7. Pooled Unit Name 8. API Number 9. Purpose of Filing Bogi ❑✓ Drilling Permit (W -1) 10. County 11.Total acres in pooled unit Tarrant 85.686 ❑ •Completion Report DESCRIPTION OF INDIVIDUAL TRACTS CONTAINED WITHIN THE POOLED UNIT TRACT /PLAT TRACT ACRES IN TRACT INDICATE UNDIVIDED INTERESTS IDENTIFIER NAME 65ee Inst. #7 below) UNLEASED NON - POOLED 1 Bowerman Oil & Gas 45.410 n 0 2 Everett Head 5.329 �- 3 Addie Faulkner 1.057 n n 4 Dennis Faulkner 4.204 n n 5 Gilbert Smith 5.347 n n 6 Michael Spaeth 0.961 n n 7 Largo Energy Inc 4.688 n n 8 Phillip Coulson 2.608 n n 9 Donald McCrary 5.212 n n 10 Largo Energy 0.488 n n CERTIFICATION: I declare under penalties prescribed pursuant to the Sec. 91.143, Texas Natural Resources Code, that I am authorized to make the fore Ding statements and that the information provided by me or under my direction on this Certificate of Pooling Authority is true, cc ct, and complete to the best of my knowledge. Bill G: Spencer Signature Print Name Consultant bgsaustin @sbcglobal.net 05/30/2008 (512) 918 -1062 Title E -mail (iravaaabk) Date Phone INSTRUCTIONS — Reference: Statewide Rules 31, 38 and 40 1. When two or more tracts are pooled to form a unit to obtain a drilling permit, file completion paperwork, or reform a pooled unit pursuant to Rule 38(d)(3) the operator must file an original Certificate of Pooling Authority and certified plat. 2. The certified plat shall designate each tract with an outline and a tract Identifier. The tract identifier on the plat shall correspond to the tract identifier and associated information listed on the Certificate. 3. if within an Individual tract, a non - pooled and/or unleased interest exists, indicate by checking the appropriate box. 4. If the Purpose of Filing is to obtain a drilling permit, in box #1 list all applicable fields separately or enter "All Fields" if the Certiflcate pertains to all fields requested on Form W -1. 5. If the Purpose of Filing is to file completion paperwork, enter the applicable field name In box #1 for the completion. 8. Identify the drill site tract with an " to the left of the tract identifier. 7. The total number of acres in the pooled unit In #11 should equal the total of all acres In the individual tracts listed. Page 1 of 2 RAILROAD COMMISSION OF TEXAS CERTIFICATE OF Oil and Gas Division PO Box 12967 POOLING AUTHORITY - Austin, Texas 78711 -2967 www.rrastate1K.us Revised 0511009 1. Field Name(s) 2. Lease/10 Number (irassfgmd) 3. RRC District Number Newark, East (Barnett Shale) 09 4. Operator Name 5. Operator P-5 Number 6. Well Number Chesapeake Operating, Inc 147715 3H 7. Pooled Unit Name B. API Number 9. Purpose of Filing Bog! ❑✓ Drilling Permit (W -1) 10. County 11.Total acres in pooled unit Tarrant 85.686 ❑ Completion Report DESCRIPTION OF INDIVIDUAL TRACTS CONTAINED WITHIN THE POOLED UNIT TRACT/PLAT TRACT ACRES IN TRACT INDICATE UNDIVIDED INTERESTS IDENTIFIER NAME (See inst #7 below) UNLEASED NON - POOLED 11 Charles Blish 3.767 �� n 12 Danny Prater 0.965 n n 13 Eugene Grammer 2.865 n 14 Jorge Rica 0.548 ❑ ❑ 15 Kenny Kirby 1.135 n 16 Douglas Parker 1.102 n 1 ❑ n n n n n CERTIFICATION: declare under penalties prescribed pursuant to the Sec. 91.143, Texas Natural Resources Code, that I am authorized to make the for oing statements and that the information provided by me or under my direction on this Certificate of Pooling Authority is true, cote t, and complete to the best of my knowledge. Bill G. Spencer Sign ure Print Name Consultant bgsaustin @sbcglobal.net 05130/2 (512) 918 -1062 Title E -mail (davaaabie) Date Phone INSTRUCTIONS — Reference: Statewide Rules 31, 38 and 40 1. When two or more tracts are pooled to form a unit to obtain a drilling permit, file completion paperwork, or reform a pooled unit pursuant to Rule 38(d)(3) the operator must file an original Certificate of Pooling Authority and certified plat. 2. The certified plat shall designate each tract with an outline and a tract identifier. The tract identifier on the plat shall correspond to the tract identifier and associated information listed on the Certificate. 3. If within an individual tract, a non - pooled and/or unleased Interest exists, indicate by checking the appropriate box. 4. If the Purpose of Filing is to obtain a drilling permit, in box #1 list all applicable fields separately or enter "All Fields' if the Certificate pertains to all fields requested on Form W -1. 5. If the Purpose of Filing is to file completion paperwork, enter the applicable field name in box #1 for the completion. 6. Identify the drill site tract with an ' to the left of the tract Identifier. 7. The total number of acres in the pooled unit in #11 should equal the total of all acres In the Individual tracts listed. Page 2 of 2 a r &I 0 Q N a o > O Q Q O a M co C; M z ® M N N 0 0 z a k O b W U a a o W v N O � v o a. ® ° ti o O r/� rll �.• ' p M C U N CO O +' y Z 0 0 z � � N ,� C o spa v1q � o� Z � o N O 3 o Ui a- N� CL O r Ch O �k o W Y N Q ca ® F o o U) w L� N a � z N 4 O o O m N O M co C; M z M LSD 0 0 z a k O W U a a o 0 N N LO �.• ' p M C U N CO O +' 0 0 z a ai N ,� C spa 0 N O 3 N� CL Ch O N ca W o _ c r U U 7' O C •� p : y C. N '• it 'CJ .-: -- ova-, LO • (U H N El C'") U b ❑ T L3. z U fii y Ca 3 Z .Q U m N ei Q ° ' a U U N . y G N ._i m N v o O Q ❑ p ti v k. t9 p 00 W y G M a ❑ T A o� o w m N yN, El r U J o w° A c4 41, b ❑ b ° 7 d t __ ❑ N G Y z 0 0 LO v v] c p ;, N w z El a x M Q f� c0 a N ca W N a a) N C� 0 3 ® 0 ❑ o N > z Q � o J IL ® Z C Z d m C 0 O_ LLJ w aN CL u N � ® ❑ a z o z a a; w a z ❑ o o � O LL N m m ~ Q N a F U T Z N y _ O v w z O 3 K � a z U Y Q V] w �+ N M [Y El >°,.8 � a ° (O d Lo is w w O o 4 O A O Q U N N z z 'o z Lo y Z C Q p cn ?? p U z o v c a°i m 00 w w O O ° r U o R' w N LO O J o a(D w cd Z N O O _ o ti o A Q A U m °o o a 1 Y �, a W Z o I M I I fn N N N LL C6 .~. .�. .�-� N A It c O g N ++ n �w Q a d 3 Y 0 N � W c E O c �Ti V1 LO 00 M O CO N C N � Q p. W W H t-a r ® r l w4 H Gal p4 N H U H ra • U U_ s 0 .a U h tl y v o m � � o ¢i M c n � o � o h U s� h ro o � Q o C 5 o y h y S ti y � O N O N a) m co D- ,e f t V1 } ul F- � W IT ^mo w N A flo S $r S °� ^ q zQ$ ~ 0 a tL V o uj O N zo 3 CO ai x m —�C— o as Y I I m � m L JJ —►— co m j o¢ r) 13{1' Sully n �Y tl $ 9 $d 0 ., z ggggoiogggs$dI9 g I I c I I I l l bd l L T i3 T� L IP, 15 as- _ Go) N v En O 3 O I ' O'� 5 � >,m O JQ � � I m jr N� F� N Martin J. Johnson Manager — Field Permitting June 19, 2008 City of Kennedale 405 Municipal Drive Kennedale, TX 76060 Attn: Mr. Larry Hoover Community Development Specialist Re: BOGI 4H, City of Kennedale, TX Permit to Drill Dear Mr. Hoover: Chesapeake Operating, Inc. respectfully submits the attached items as part of the "Permit Application for Gas Well" for the BOGI 4H, the surface to be located within the city limits of Kennedale, Texas. I certify that I have prepared this application and that the work will be done in accordance with the provisions of the laws of the State of Texas, the ordinances of the City of Kennedale, and the rules and regulations of the City of Kennedale. Best Regards, Martin J\Joh Chesapeake Energy Corporation 301 Commerce Street, Suite 600 • Fort Worth, TX 76102 Direct: 817.870.5621 • Cell: 817.718.6037 • Fax 817.810.0450 • martin.johnson @chk.com IN of K ennedale Oil • Gas Well Drilling Permit Application PERMIT LEASE INFORMATION: LEASE NAME: BO SUB - DIVISION NAME: DATE: 6/19/08 LEGAL DESCRIPTION: B Joplin A -866 ACRES: _85.69 CURRENT ZONING: Single Family Residential District OWNER OF RECORD: Bowerman Oil & Gas, Inc. ADDRESS: 6300 Ridglea Place Ste. 920 PHONE: CITY: Fort Worth STATE: TX ZIP: _7611 OPERATOR NAME AND RRC NUMBER: Chesapeake Operating, Inc. RRC# 147715 INCORPORATION STATE: _OK_, PARTNERSHIP (list partners on a separate sheet) ADDRESS (no P.O. Boxes):6100 N Western Ave OPERATOR CONTACT Randall Rodrigue (Agent data is added below) CITY: Oklahoma City STATE: _OK ZIP: 73118 OFFICE PHONE (405) 848-8000, MOBILE ( ) , EMAIL randy.rodrigue @chk.com_ AGENT TO RECEIVE NOTICE (if different than operator):—Tim Duga ADDRESS (no P.O. Boxes):421 Marti Drive CITY: Cleburne STATE: _TX ZIP: _76003 OFFICE PHONE (817) 759-2450, MOBILE ( ) , EMAIL tim.dugan @chk.com EMERGENCY 24 -HOUR CONTACT PERSON: _Tim Duga ADDRESS (no P.O. Boxes): 421 Marti Drive CITY: Cleburne OFFICE PHONE ( ) MOBILE ( ) ZIP: 76003 EMAIL tim.dugan @chk.com SURFACE OWNER UNDER PAD SITES: Bowerman Oil & Gas, Inc. ADDRESS (no P.O. Boxes): 6300 Ridglea Place Ste. 920 CITY: Fort Worth STATE: T, OFFICE PHONE ( ) MOBILE ( ) ZIP: 76111 . EMAIL STATE: TX WELL INFORMATION: WELL NAME: BOGI WELL NUMBER 4H WELL API: 42- _439_- _33448_, RRC PERMIT NUMBER: _663355 ABSTRACT: 866 , SURVEY: _B X- COORDINATE: 2093892.140 Y- COORDINATE: _354236.690 City of eda Oil and Gas Well Drilling Permit Operator does hereby expressly release and discharge all claims, demands, actions, judgments, and executions which it ever had, or now has or may have, or assigns may have, or claim to have, against the City of Kennedale and /or its departments, its agents, officers, servants, successors, assigns, sponsors, volunteers, or employees, created by, or arising out of personal injuries, known or unknown, and injuries to property, real or personal, or in any way incidental to or in connection with the performance of the work performed by the operator under an Oil and Gas Well Permit and the operator caused by or arising out of , that sequence of events which occur from the operator under the Oil and Gas Well Permit and work performed by the operator shall fully defend, protect, indemnify, and hold harmless the City of Kennedale, Texas, and /or its departments, agents, officers, servants, employees, successors, assigns, sponsors, or volunteers from and against each and every claim, demand, or cause of action and any and all liability, damages, obligations, judgments, losses, fines, penalties, costs, fees, and expenses incurred in the defense of the City of Kennedale, Texas, and /or its departments, agents, officers, servants, or employees, including, without limitation, personal injuries and death in connection therewith which may be made or asserted by the Operator, its agents, assigns, or any third parties on account of, arising out of, or in any way incidental to or in connection with the performance of the work performed by the Operator under an Oil and Gas Well Permit, and the Operator agrees to indemnify and hold harmless the City of Kennedale, Texas, and /or its departments, and /or its officers, agents, servants, employees, successors, assigns, sponsors, or volunteers from any liabilities or damages suffered as a result of claims, demands, costs, or judgments against the City and /or, its departments, its officers, agents, servants, or employees, created by, or arising out of the acts or omissions of the City of Kennedale, occurring on the drill site or operation site in the course and scope of inspecting and permitting the gas wells INCLUDING, BUT NOT LIMITED TO, CLAIMS AND DAMAGES ARISING IN WHOLE OR IN PART FROM THE SOLE NEGLIGENCE OF THE CITY OF KENNEDALE OCCURRING ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE OIL AND GAS WELLS. IT IS UNDERSTOOD AND AGREED THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED BY THE OPERATOR TO INDEMNIFY AND PROTECT THE CITY OF KENNEDALE, TEXAS, AND /OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES FROM THE CONSEQUENCES OF THE NEGLIGENCE OF THE CITY OF KENNEDALE, TEXAS AND /OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES, WHETHER THAT NEGLIGENCE IS THE SOLE OR CONTRIBUTING CAUSE OF THE RESULTANT INJURY, DEATH, AND /OR DAMAGE. LIABILITY FOR THE SOLE NEGLIGENCE OF THE CITY IN THE COURSE AND SCOPE OF ITS DUTY TO INSPECT AND PERMIT THE GAS WELL IS LIMITED TO THE MAXIMUM AMOUNT OF RECOVERY UNDER THE TORT CLAIMS ACT. ACKNOWLEDGEMENTS: I certify that the above information is correct and complete and that I am now or will be fully prepared to present the above proposal to the permit authority and have obtained a Special Exception and will comply with all stipulations set forth by the City of Kennedale Board of Adjustments and Appeals. I further certify that I have read, understand and will comply with the information contained in the Gas Drilling and Production Chapter of the Code of the City of Kennedale. The terms and provisions of the "Gas Drilling and Production" Chapter of the Code of the City of Kennedale, as amended, are incorporated into this Gas Drilling and Production Permit as if written word herein and shall be considered terms and conditions of the Permit applied for. Operator: s ake er nc. Signature: ' Printed: mLSU Date: A FORE , thew ned authority, a Notary Public in and for the State of Texas, on this day personally appeared dil o (owner or agent name), known to me to be the person whose name is subscribed to the foregoing instrument, and acknowle f�eed to Ve t at a he ex T oted same for the purposes and consideration therein expressed as the act and deed o 1 _ - and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this the Iq day of - 61- THEIR M. BARCIA MISSION EXPIRES June 1, 2010 Public In and la Or The State of Texas My Commission Railroad Commission of Texas PERMIT TO DRILL, RECOMPLETE, OR RE -ENTER ON REGULAR OR ADMINISTRATIVE EXCEPTION LOCATION CONDITIONS AND INSTRUCTIONS Permit Invalidation. It is the operator's responsibility to make sure that the permitted location complies with Commission density and spacing rules in effect on the spud date. The permit becomes invalid automatically if, because of a field rule change or the drilling of another well, the stated location is not in compliance with Commission field rules on the spud date. If this occurs, application for an exception to Statewide Rules 37 and 38 must be made and a special permit granted prior to spudding. Failure to do so may result in an allowable not being assigned and/or enforcement procedures being initiated. Permit expiration. This permit expires two (2) years from the date of issuance shown on the permit unless actual drilling operations have begun. The permit period will not be extended. If a permit is materially amended, the expiration date is two (2) years from the time the amended permit is issued. Drilling Permit Number. The drilling permit number shown on the permit MUST be given as a reference with any notification to the district (see below), correspondence, or application concerning this permit. Rule 37 Exception Permits. This Statewide Rule 37 exception permit is granted under either provision 37 (h)(2)(A) or 37(h)(2)(B). Be advised that a permit granted under 37(h)(2)(A), notice of application, is subject to the General Rules of Practice and Procedures and if a protest is received under Section 1.3, "Filing of Documents," and/or Section 1.4, "Computation of Time," the permit may be deemed invalid. Before Drilling Fresh Water Sand Protection. The operator must set and cement sufficient surface casing to protect all usable - quality water, as deemed by the Tx Natural Resource Conservation Commission. Before drilling a well, the operator must obtain a letter from the Texas Natural Resource Conservation Commission stating the depth to which water needs protection, Write: Texas Natural Resource Conservation Commission (Surface Casing- MC151), P.O. Box 13087, Austin, TX 78711 -3087. File a copy of the letter with the appropriate district office. During Drilling Permit at Drilling Site. A copy of the Form W -1 Drilling Permit Application, the location plat, a copy of Statewide Rule 13 alternate surface casing setting depth approval from the district office, if applicable, and this drilling permit must be kept at the permitted well site throughout drilling operations. *Notification of Setting Casing. The operator MUST call in notification to the appropriate district office (phone number shown the on permit) a minimum of eight (8) hours prior to the setting of surface casing, intermediate casing, AND production casing. The individual giving notification MUST be able to advise the district office of the drilling permit number. Completion of Drilling Producing Well. Statewide Rule 16 requires that the operator submit a Form W -2 (oil well) or Form G -1 (gas well) to the appropriate Commission district office within thirty (30) days after completion of such well. Completion of the well in a field authorized by this permit voids the permit for all other fields included in the permit unless the operator indicates on the initial completion report that the well is to be a dual or multiple completion and promptly submits an application for multiple completion. All zones are required to be completed before the expiration date on the existing permit. Statewide Rule 40(d) requires that upon successful completion of a well in the same reservoir as any other well previously assigned the same acreage, proration plats and P -15s (if required) must be submitted with no double assignment of acreage. Dry or Noncommercial Hole. Statewide Rule 14(b)(2) prohibits suspension of operations on each dry or non - commercial well without plugging unless the hole is cased and the casing is cemented in compliance with Commission rules. If properly cased, Statewide Rule 14(b)(2) requires that plugging operations must begin within a period of one (1) year after drilling or operations have ceased. Plugging operations must proceed with due diligence until completed. An extension to the one -year plugging requirement may be granted under the provisions stated in Statewide Rule 14(b)(2). Intention to Plug. The operator must file a Form W -3A (Notice of Intention to Plug and Abandon) with the district office at least five (5) days prior to beginning plugging operations. If, however, a drilling rig is already at work on location and ready to begin plugging operations, the district director or the director's delegate may waive this requirement upon request, and verbally approve the proposed plugging procedures. Notification of Plugging a Dry Hole. The operator MUST call in notification to the appropriate district office (phone number shown on permit) a minimum of four (4) hours prior to beginning plugging operations. The individual giving the notification MUST be able to advise the district office of the drilling permit number and all water protection depths for that location as stated in the Tx Natural Resource Conservation Commission letter. *NOTIFICATION The operator is REQUIRED to notify the district office when setting surface casing, intermediate casing, and production casing, or when plugging a dry hole. Time requirements are given above. The drilling permit number MUST be given with such notifications. DIRECT INQUIRIES TO: DRILLING PERMIT SECTION, OIL AND GAS DIVISION MAIL: PHONE PO Box 12967 (512) 463 -6751 Austin, Texas, 78711 -2967 Pa f 2 RAILROAD COMMISSION OF TEXAS OIL & GAS DIVISION PERMIT TO DRILL, DEEPEN, PLUG BACK, OR RE -ENTER ON A REGULAR OR ADMINISTRATIVE EXCEPTION LOCATION PERMIT NUMBER DATE PERMIT ISSUED OR AMENDED DISTRICT 663355 Jun 18, 2008 05 API NUMBER FORM W -1 RECEIVED COUNTY 42- 439 -33448 May 30, 2008 TARRANT TYPE OF OPERATION WELLBORE PROFILES) ACRES NEW DRILL Horizontal 85.69 OPERATOR 147715 NOTICE This permit and any allowable assigned may be CHESAPEAKE OPERATING, INC. revoked if payment for fee(s) submitted to the Commission is not honored. District Office Telephone No: (903) 984 -3026 LEASE NAME WELL NUMBER BOGI 4H LOCATION TOTAL DEPTH 0 miles Within direction from KENNEDALE 9000 Section, Block and /or Survey SECTION { BLOCK < ABSTRACT { 866 SURVEY< JOPLIN, B DISTANCE TO SURVEY LINES DISTANCE TO NEAREST LEASE LINE 548 ft. W 613 ft. N 330 ft. DISTANCE TO LEASE LINES DISTANCE TO NEAREST WELL ON LEASE 442 ft. N 760 ft. W See FIELD(s) Below FIELD(s) and LIMITATIONS: FIELD NAME ACRES DEPTH WELL # DIST LEASE NAME NEAREST LEASE NEAREST WE ------------------------------------------ --------- ----------- NEWARK, EAST (BARNETT SHALE) - - - - -- -- - -- - -- -- - - - - --- 85.69 7,216 4H 09 330 357 BOGI ------------------------------------------------------- WELLBORE PROFILE(s) FOR FIELD: Horizontal ------------------------------------------------------- RESTRICTIONS: Permitted for gas only. Lateral: TH1 Penetration Point Location Lease Lines: 334.0 F N L 330.0 F W L Terminus Location Lease Lines: 771.0 F W L 330.0 F S L Survey Lines: 600.0 F W L 1341.0 F S L THE FOLLOWING RESTRICTIONS APPLY TO ALL FIELDS This well shall be completed and produced in compliance with applicable special field or statewide spacing and density rules. If thi: well is to be used for brine mining, underground storage of liquid hydrocarbons in salt formations, or underground storage of gas in salt formations, a permit for that specific purpose must be obtained from Environmental Services prior to construction, including drilling, of the well in accordance with Statewide Rules 81, 95, and 97. Data Validation Time Stamp: Jun 18, 2008 3:38 P1VApproved Version) rage z of 2 RAILROAD COMMISSION OF TEXAS CERTIFICATE OF Oil and Gas Division PO Box 12967 POOLING AUTHORITY Austin, Texas 78711 -2967 www.rrc.state.br.us Revised 05%2001 1. Field Name(s) 2. Leas.-AD Number rdasd9ned) 3. RRC District Number Newark, East (Barnett Shale) 09 4. Operator Name 5. Operator P -5 Number 6. Well Number Chesapeake Operating, Inc 147715 4H 7. Pooled Unit Name 8. API Number 9. Purpose of Fling Bog! ❑✓ Drilling Permit (W -1) 10. County 11.Total acres in pooled un@ Tarrant 85.686 ❑ Completion Report DESCRIPTION OF INDIVIDUAL TRACTS CONTAINED WITHIN THE POOLED UNIT TRACT /PLAT TRACT ACRES IN TRACT INDICATE UNDIVIDED INTERESTS IDENTIFIER NAME rSee inst #7 below) UNLEASED NON - POOLED 1 Bowerman Oil & Gas 45.410 n n 2 Everett Head 5.329 n n 3 Addie Faulkner 1.057 n n 4 'Dennis Faulkner 4.204 F] n 5 Gilbert Smith 5.347 El n 6 Michael Spaeth 0.961 n n 7 Largo Energy Inc 4.688 n n 8 Phillip Coulson 2.608 n 9 Donald McCrary 5.212 n 10 Largo Energy 0.488 n n CERTIFICATION: I declare under penalties prescribed pursuant to the Sec. 91.143, Texas Natural Resources Code, that I am authorized to make the fore 'ng statements and that the information provided by me or under my direction on this Certificate of Pooling Authority Is true, cor ct and complete to the best of my knowledge. Bill G. Spencer Sign;itt.h Print Name Consultant bgsaustin @sbcglobal.net 05/30/2008 (512) 918 -1062 Title E -mail (ifon# able) Date Phone INSTRUCTIONS — Reference: Statewide Rules 31, 38 and 40 1. When two or more tracts are pooled to form a unit to obtain a drilling permit, file completion paperwork, or reform a pooled unit pursuant to Rule 38(d)(3) the operator must file an original Certificate of Pooling Authority and certified plat. 2. The certified plat shall designate each tract with an outline and a tract identifier. The tract Identifier on the plat shall correspond to the tract identifier and associated information listed on the Certificate. 3. If within an individual tract, a non- pooled and /or unleased interest exists, indicate by checking the appropriate box. 4. If the Purpose of Filing is to obtain a drilling permit, in box #1 list all applicable fields separately or enter "All Relds" if the Certificate pertains to all fields requested on Form W -1. 5. If the Purpose of Filing is to file completion paperwork, enter the applicable field name in box #1 for the completion. 6. Identify the drill site tract with an' to the left of the tract Identifier. 7. The total number of acres in the pooled unit in #11 should equal the total of all acres in the individual tracts listed. Page 1 of 2 q0 RAILROAD COMMISSION OF TEXAS CERTIFICATE OF Oil and Gas Division PO Box 12967 POOLING AUTHORITY Austin, Texas 78711 -2967 www.rrc.state.tx.us Revised 0&2001 1. Feld Name(s) 2. LeaseAD Number gasstgned) 3. RRC District Number Newark, East (Barnett Shale) Charles Blish 09 4. Operator Name 5. Operator P -5 Number 6. Well Number. Chesapeake Operating, Inc 147715 4H 7. Pooled Unit Name S. API Number 9. Purpose of Filing Bogl Kenny Kirby ❑✓ Drilling Permit (W -1) 10. County 11.Total acres in pooled unit Tarrant 85.686 ❑ Completion Report DESCRIPTION OF INDIVIDUAL TRACTS CONTAINED WITHIN THE POOLED UNIT TRACT /PLAT TRACT ACRES IN TRACT INDICATE UNDIVIDED INTERESTS IDENTIFIER NAME (See MSL #7 below) UNLEASED NON- POOLED 11 Charles Blish 3.767 R 0 12 Danny Prater 0.965 n n 13 Eugene Grammer 2.865 �1— n 14 Jorge Rico 0.548 n 15 Kenny Kirby 1.135 n 16 Douglas Parker 1.102 F1 �- n n CERTIFICATION: I declare under penalties prescribed pursuant to the Sec. 91.143, Texas Natural Resources Code, that I am authorized to make the fore oing statements and that the information provided by me or under my direction on this Certificate of Pooling Authority is true, co , and complete to the best of my knowledge. Bill G. Spencer Sign ure Print Name Consultant bgsaustin @sbcgl 05/30/ (512) 918 - 1062 Title E -mail ( ff Date Phone INSTRUCTIONS — Reference: Statewide Rules 31, 38 and 40 1. When two or more tracts are pooled to form a unit to obtain a drilling permft, file completion paperwork, or reform a pooled unit pursuant to Rule 38(d)(3) the operator must file an original Certificate of Pooling Authority and certified plat. 2. The certified plat shall designate each tract with an outline and a tract identifier. The tract identifier on the plat shall correspond to the tract identifier and associated Information listed on the Certificate. 3. If within an individual tract, a non - pooled and/or unieased interest exists, indicate by checking the appropriate box. 4. If the Purpose of Filing Is to obtain a drilling permit, in box #1 list all applicable fields separately or enter "All Fields" if the Certificate pertains to all fields requested on Form W -1. If the Purpose of Filing is to file completion paperwork, enter the applicable field name in box #1 for the completion. Identify the drill site tract with an * to the left of the tract Identifier. The total number of acres in the pooled unit in #11 should equal the total of all acres in the individual tracts listed. mf,M – Page 2 of 2 N O 4) O) 0.. rL S S N N C) N p (D LO 00 41 0 O 'O '�' 00 N ' 9 07 O ° —� m N b .� Q Q n " 3 c '' N �° ® a a m O N m a O ri El _ z w U � '.b is m O 0 � • y 0 ^ ❑❑ o .Q A co N a � � � O / ❑ O O o G � � • r. O � v �.. ° LO o P b ❑ 3a roro N o y� Q Cn O N ce b 3 y Q N cl N W 3 El c o 'F r- .� n m CD o W o w ❑ o a co w N M U _ d ® ° O ❑ � Y w o A W o ° Lo t/1 O z a y w Cl g of (4 1,, v Cq y c (D CIO cl a y R cl o 600 O m ° dH� O .o ❑ $ _ Q I` t0 G O W ® Q G N C4 N Q �o z O o D Z C 3 00 N N z Q N N y yC `,qJ o~ R' 0 N 6 c� N J z i. a� n lc7Lf w o a N `� z o o 0 o o o ❑❑ 0 = Q W ❑ a 4 �i a " Q W c z O o LLI N W C °� ® Z z ¢ U w ri D `0 0 v Z Z v G O W 00 N Q LL d Q N (D Cn U) LL Z 1 > 3 1 - O X W 8 O ° N W ° a z dz Y LL H ° Q E 1 < a W w ° N ao ci 0 0 El = Q F >°, = U o �) is w W 0 LL n 00 It p O A Q U f N N Z 'D Z M LO o m o z J Z C ? 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I b aoju�� o 's O ij ,, o d (i !g°q o o a g o N ^ " g ! °gg jSgN ul �I ei lifi ' , if ' - A � �a a CC _ e 5 •� LL � S5 �yy p } pp }�� 5 91 1 I d c � Y I b aoju�� o Y2 � O ij ,, o d (i !g°q o o a g o N ^ " g ! °gg jSgN ul ei lifi ' , if ' - A � �a a CC _ e 5 •� LL � S5 �yy p } pp }�� 5 91 1 tt� 14, • CAN 6 �MI�M�Ifj 1��01a�C�13 �1dC M � F I O 56� rw, - Z. ICI N 00 U10 ( C� o JQ 0Q fl7 C6 b O I O P O- O z F -/1 N • zz8 $_ wl N . 0 0 95 CONTENTS INTRODUCTION EMERGENCY PROCEDURE FOR FIRE OR GAS RELEASE REGULATORY AGENCY NOTIFICATION COMPANY CONTACTS SITE PLAN: DRILLING AND PRODUCING SITE LOCATOR MAP 10 • • Chesapeake Operating, Inc. is committed to the safety and well being of its employees, contractors, and the general public. Chesapeake Operating, Inc is equally committed to the prevention of pollutants and exposure to hazardous waste. The most obvious steps in providing safety and hazardous waste protection are: informed and properly trained personnel and organization. Nevertheless, should a release or an incident of exposure occur the following information is designed to minimize the effects, caused such an incident, to the public, employees, and contractors as well as the environment. Coordinated responses are necessary for hazardous materials, release, fire, or other emergency situations. Company efforts and outside services as well as other governing agencies may be required, and the material contained herein will aid in such efforts. f m EMERGENCY PROCEDURE FOR FIRE OR GAS RELEASE SAFETY AND EQUIPMENT INSPECTION After the rig is erected and before drilling operations have commenced, the rig supervisors and the operator's field man shall conduct a safety inspection of the premises and locate all safety equipment (including fire extinguishers) and advise all personnel in the correct procedures in correcting any hazards which may exist. All equipment will be properly rated, located and sized for the drilling operation. Rig personnel shall be instructed as to the quick response and safe extinguishing of fires that might occur, together with the safe and correct procedure in using the blowout preventer. The blowout preventer (BOP) shall be inspected and properly installed and tested prior to drilling out the surface casing. If a gas "kick" should occur during the tripping in or out of the hole, the pumps shall be shut down and a check shall be made for gas flow at the surface. If a flow is discovered, the blowout preventer shall be closed and well control procedures initiated. During the producing phase, the pumper will inspect and maintain all fire extinguishers which might be used for controlling small fires which might occur for any cause. NOTIFICATION If, in the event a well cannot be controlled or in the event of a fire which cannot be extinguished, the rig supervisor or in the case of a producing well, the pumper, shall contact 911 Emergency and provide the emergency system with the following: 1. Type & emergency 2. Well location and well name 3. If fire — source of material 4. Direction and distance to nearest residences, etc. 5. Wind direction and approximate speed 6. Injuries and type of injury 7. Notify company personnel SECURE THE AREA Once the emergency system has been informed, the field supervisor or pumper shall dispatch an employee to the entrance of the lease road (at the public access) so as to confirm and direct emergency vehicles. The employee shall also restrict the entry of any unauthorized persons or vehicles. f Mo REGULATORY AGENCY NOTIFICATION f Environmental Protection Agency: Notification of any spill shall be given initially to the EPA National Response Center at the following number: 1- 800 - 424 -8802. Subsequent notification shall be given to the appropriate EPA Regional Office. Information shall be provided orally within 24 hours from the time the operator becomes aware of the circumstances. A written report shall also be provided within five days of the time the operator becomes aware of the circumstances. The written report shall contain a description of the noncompliance and its cause; the period of noncompliance, including exact dates and times, the nature of correction procedures to be initiated and steps taken or planned to reduce, eliminate and prevent recurrence of the noncompliance. The report shall be forwarded to: SPCC /FRP Coordinator U.S. EPA — Region VI (6SF -RP) 1445 Ross Avenue Dallas, Texas 75202 -2733 EPA Spill Line: 214 - 665 -2222 The EPA Regional Administrator may waive the written report on a case -by -case basis if the oral report has been received within 24 hours. Additional Agency Notification (where applicable) Texas Railroad Commission (RRC) District 5— Kilgore Texas Railroad Commission (RRC) District 9— Wichita Falls (Barnett Shale Gas) Texas Commission on Environmental Quality (TCEQ) U.S. Army Corps of Engineers U.S. Fish and Wildlife Service Arlington Ecological Services Field Office 901 - 984 -3026 940 - 723 -2153 512- 463 -7777 903 - 465 -4990 817 - 277 -1100 ok EMERGENCY CONTACT TELEPHONE NUMBERS Chesapeake Emergency Number Chesapeake Arc Park Field Office Tim Dugan B.K. Gibson Gary Dill Robert Bradley City of Kennedale Tarrant County Sheriff Texas Railroad Commission District 9 (Barnett Shale Gas) District 5 (Oil) EPA National Spill Response Center EPA Dallas 1- 800 - 566 -9306 1- 817- 759 -2450 Office: 1- 817- 759 -2450 x.3216 Cell: 1- 817- 727 -2485 Office: 1- 817- 556 -5825, x. 14 Cell: 1- 817- 727 -2486 Office: 1 -817- 556 -5825, x. 5825 Cell: 1- 903 - 343 -5411 Office: 817- 556 -5825 x 2811 Cell: 817- 556 -5825 EMERGENCY 911 1- 817- 884 -3270 1- 940 - 723 -2153 1- 903 - 984 -3026 1- 800 - 424 -8802 1- 214- 665 -2222 ]a CITY OF KENNEDALE BOARD OF ADJUSTMENT APPLICATION FOR SPECIAL EXCEPTION Applicant: Name Chesapeake Operating, Inc. Work Phone 405 - 848 -8000 Home Mailing Address P. O. Box 18496 Oklahoma City, OK 731 54 -0496 Owner: Name Bowerman Oil & Gas, Inc. Work Phone 817 - 336 -3300 Home Mailing Address 6300 Ridglea Place Ste. 920 Property Location n/a (Number and Street) Legal Description Ben Joplin Survey A -866 Tract 3B (Lot, Block & Subdivision) Note: Attach metes and bounds description if property is not platted. Gas Well Drilling Zoning District Single Fami Describe Special Exception requested: Permit Has a previous application or appeal been filed on this property? Yes No Date: 6/19/2008 Identify any requirements of Section 17 -422, Kennedale City Code that cannot be met. Give reason (s) why the regi cannot be met. Use back of this form if additional space is needed. I de lare that the above is true and correct. Sig ture of Applicant Date FOR STAFF USE ONLY Indicate any poten ' 'ud us affect on the public health, safety, or welfare. Indicate if the uses, values or enjoyment of other property in the neighborhood would be impaired or diminished by the proposed use Will the proposed use: impede normal and orderly development? include adequate utilities, access roa other necessary site improvements? provide ingress or egress so as to minimize traffic congestion conform to all applicable area, yard, height, lot coverage, building size and exterior requirements an regulations of the district in which it is located? Comments Recommendation Approval Disapproval If disapproval give reason: (Zoning Official) (City Administrator) ZI APPLICATION FOR SPECIAL EXCEPTION If you are seeking a special exception to the zoning ordinance we need the following information to process the application: The permitted exceptions for seeking a Special Exception are uses not allowed in the district for which you are seeking the following; • Masonry requirements. • Signage. • Landscaping. 1. Is this a use not allow in the district you are seeking? C Ye ror No 2. Is this a remodel of an existing structure? Yes N 3. Is this new construction? es r No 4. lease explain the reason and circumstances for the Special Exception requested. f , Exception is being requested in order to drill a gas well. Name: Martin J Johnson, Chesapeake Operating Inc. Phone # ( 817)870 -5621 Date:6 /19/08 0 r , L I 8z — — ' _p— - -- — — ff / L L , , _ nn -gip �l c � 99 3 ,\ . / , tt Fil r i m gag 63 S I i ® o aa ii gei Ia 3[a 5. E� ��o � � 11 $-°� �FaeP1 a a` t a s m z — — W a w F. BS a Ran p I o a CHESAPEAKE OPERATING, INC. HALFF DEVELOPMENT SITE PLAN a w� • , -• �° n - T:FP BOGI1H -4H Kennedale, Texas 0 75 150 300 450 600 + tc Feet T 41 4 � 46 11 13 47 45 44 43 rSSa s7f� 1 P9� 11R 9 U 12 v If F, de { 7 48 i A4 13 12 10 �"V 49 50 51 52 55 63 54 11 14 2 tt F13 1 67R 66 65 64 62 61 2 60 58 57 56 15 �ewns + t 63 f"' 14 . CRROSS CREEK D _ t 1 2 3 4 68R g 1 2 3 4 5 � �7 8 9 10 17 TRAB 16 69 Q 1.177 AC 8R 7 i'', r I l ,7 w 3 ` 70 L� 16 15 14 pq 13 12 11 18 Ny 20 19 t6 77 66f 9 WE 71 on # ELMBRVO�C 4 - `JJ fJ] J I 72 ___. 1s 1.0 6'i 7 8 9 10 10 t 11 tc1 U , 2 34P 4 6 20 1.85Ac 73 i J TR.3B 4P � 36.54 Ac Ac t t P 1.40@ 11 10 6B 3 4 WPT5 EPT5 2.48AC 7B 7A 2 4.13 Ac 5.10Ac 4.?#A 1.64 Ac 3.25Ac 2.50 Ac 2.50 Ac go 6A1 8A Ac 5.04 @ 1.084 @ .20 2B 1.03 Ac WPT EPT 8c OF OF .24 sWc sWc .45 Ac .45 Ac -r' — SWINEY HIETT RD 1 - 7 A =.45 3A q 1.96 Ac 14 15 16 4) 1 2 3 4 5 F 329) W A Falcon View Dr�'� t0 1 10 7 Chesapeake 1 D 9 8 BOGI 11111-8114 9 2 9 2 _ Owners Within 600' Legend 6 9 U � 17 Created: July 22, 2008 Wellhead Locations o Map Scale: 1:3 ,600 10 Well & Pad Buffers — Projection: Texas State Plane NAD 27 C] Surface Ownership - Tarrant North Central Zone (4202) 11 Leslle Hernandez 6 6 A _ XiGIeV'oM1 WoMNeim0b�9�Petml ExNWS�60G1 tH- BMtAXDS`80G� 1H8H_Qmers Wvtldn �D_reASedmd Chesapeake Energy Corporation, 301 Commerce St Ste 600, Fort Worth, TX 76102 Phone: 817- 870 -1250 Far 817 - 810 -9485 Web Site: http: /hNNI.Ghkenergy.coW 0 Chesapeake ENERGY surface Owners of Property Within 600 Feet Of BOGI 1H -BH This document was created by the GIS Department of Chesapeake Energy Corporation. The Information contained herein was derived from county tax records and data. No claims are made to the accuracy or completeness of the data or to Its suitability for a particular use, WAIVER FOR HIGH IMPACT GAS WELL WITHIN THE CITY OF KENNEDALE We, Obie G. Fuller and Francis S. Fuller, are the owners of real property located at 1254 Elmbrook Drive Kennedale Texas 76060. 1 understand that the current Gas Drilling Ordinance of the City of Kennedale requires all gas wells to be drilled 600 feet from any residential structure, public building, institution, school, or commercial building, but allows the property owners of such uses, to grant a wavier to allow the drilling of gas wells as close as 300 feet from a residential structure, public building, institution, school, or commercial building. By this waiver, I hereby grant to Chesapeake Operating Inc. permission to drill one or more gas wells closer than 600 feet to the structure located on my property. EXECUTED to be effective as of theday of ! 20gy, PROTEC ED US PROPERTY / OWNERS Signature: (Print) By: Obie G. Fuller Sig natu V (Print) By: Franck S. Fuller STATE OF TEXAS COUNTY OF TARRANT BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Obie G. Fuller known to me to be the person whose name is subscribed in the foregoing instrument, and acknowledged to me that he /she executed same for the purposed and consideration therein expressed as the act and deed of and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE s the day of 2C��. o �* aYPb B JOHN FRANKLIN WURSTER My commission Expires November 08,207D Notar, Public In and Fo The State of Texas My Commission Expires: LUC)_ STATE OF TEXAS COUNTY OF TARRANT BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Francis S. Fuller, known to me to be the person whose name is subscribed in the foregoing instrument, and acknowledged to me that he /she executed same for the purposed and consideration therein expressed as the act and deed of , and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE th the day of 2000, o �* P JOHN FRANKLIN WURSTER My Commission Expires November os, zoio m and Por The State of Texas My Commission Expires: WAIVER FOR HIGH IMPACT GAS WELL WITHIN THE CITY OF KENNEDALE I /We, sus.�� e�� c z R are the owner /owners of real property Iota ed at �; ��eNN �e- 1 I understand that the current Gas Drilling Ordinance of the City of Kennedale requires all gas wells to be drilled 600 feet from any residential structure, public building, institution, school, or commercial building, but allows the property owners of such uses to grant a wavier to allow the drilling of gas wells as close as 300 feet from a residential structure, public building, institution, school, or commercial building. By this waiver, I hereby grant to Chesapeake Operating Inc. permission to drill one or more gas wells closer than 600 feet to the structure located on my property. EXECUTED to be effective as of the �?e day of _ 20of3. PROTECTED USE PROPERTY OWNERS Signature: (Print) By: ts� 6 L4 � — Signature: (Print) By: STATE OF TEXAS COUNTY OF TARRANT BEFORE ME, the undersigned authority, a Notary Public in and for the St to of T e xa s, e kno on this day personally appeared Sus �! L ` the person whose name is subscribed in the foregoin instrument, and acknowledged to me that he /she executed same for the purposed and consideration therein expressed as the act and deed of , and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this the day of A 2 og ° pOBi GY 4y David Clayton McNally C�� 4 QD e ; ° °' ` Notary PubEic, S4ate of'i'exas �/ e> My Commission gxpiees: °'f,��t'` Sep4ember 5 , 2010 Notary Public In and F r The tate of Texas My Commission Expires: STATE OF TEXAS COUNTY OF TARRANT BEFORE ME, the undersigned authority, a Notary Public in and for the State to of Texas be on this day personally appeared , known the person whose name is subscribed in the foregoing instrument, and acknowledged to me that he /she executed same for the purposed and consideration therein expressed as the act and deed of , and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this the _day of 20_ Notary Public In and For The State of Texas My Commission Expires: WAIVER FOR HIGH IMPACT GAS WELL WITHIN THE CITY OF KENNEDALE /We, (,(A(\ I�t S �yn� ��e�onS are s of real ro erty the owner /owner located at 3 S� �� , I understand that th current Gas Drilling Ordinance of the City of Kennedale requires all gas wells to be drilled 600 feet from any residential structure, public building, institution, school, or commercial building, but allows the property owners of such uses to grant a wavier to allow the drilling of gas wells as close bs 300 feet from a residential structure, public building, institution, school, or commercial building. By this waiver, I hereby grant to Chesapeake Operating Inc. permission to drill one or more gas wells closer than 600 feet to the structure located on my property. EXECUTED to be effective as of the lKday of YP7 20_. PROTECTED TY OWNER S Signature: ' (Print) By: / jai al Signature: (Print) By: STATE OF TEXAS COUNTY OF TARRANT BEFORE ME, the undersigned aut ority, a Notary Public in and for the State of Texas, �a ns on this day personally appeared ` f a t\a1 See V known to me to be the person whose name is subscribed in the foregoing instrument, and acknowledged to me that he /she executed same for the purposed and consideration therein expressed as the act and deed of , and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this the IM day of 20 - A W& WmEi {t��€ e � m ©xa;� � Notary Public In and For The State of Texas jisos: y � -`�'�° My Commission Expires: 9 " J A e STATE OF TEXAS COUNTY OF TARRANT BEFORE ME, the undersigned authority, a Notary Public In and for the State of Texas, known to me to be on this day personally appeared Ct � ` o L his the person whose name is subscribe in the foregoing instrument, and acknowledged to me that he /she executed same for the purposed and consideration therein expressed as the act and deed of , and in the capacity therein stated. �� da of "--`� — 20Gg. GIVEN UNDER MY HAND AND SEAL OF OFFICE this the y N1�111211 R t€kes �� •,� 6r�,y t��Sta, �9ata �2 T ®xa3 �, ��,cEm(ssi�» 4ro9: � ✓4i �� Notary Public In and For The State of Texas My Commission Expires: ` 21 ------------- GV0'dti13H A3NIMS V , FT9 0 ce 0 X I" ♦ ��t ' 1 go Ot t IT - , 6 0 "PE] m CHESAPEAKE OPERATING, INC. 1 M ®® ]g� r - �a�g n- HAL,FF Access Road Plan and Profile BOGI 1 H - 4H Kennedale, Texas lflns D>PIAIFn MSCLAW -R 1 1 s The use of this standwd Is governed by the Ts... En9lnearlrW P octl.. 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E E �i MASTER ROAD REPAIR AGREEMENT STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF TARRANT § This�oad Repai Agreement, ( "Agreement "), is made and entered into on this the j� day of 1\1oye th ,r , 2007 by and between the City of Kennedale, Texas ( "City "), a Texas home rule municipality, and Chesapeake Operating, Inc., ( "OPERATOR ") for the repair of certain streets and /or roadways maintained by the City of Kennedale, Texas as more fully described herein. WHEREAS, OPERATOR is in the business of drilling gas wells and, in connection therewith, shall be engaged in gas well drilling and production activities on property within the City as permitted by the City which abuts, is adjacent to, and /or is accessed by roadways within the City and will use a truck route or truck routes on roadways maintained by the City of Kennedale; and WHEREAS, use of the roadways by OPERATOR for the purpose of performing the activities described hereinabove is likely to cause damage to the roadways; and WHERAS, the City of Kennedale and OPERATOR, for the mutual consideration hereinafter stated, desire to enter into an Agreement for OPERATOR to temporarily repair said roadways for the duration of the term of this Agreement in consideration of OPERATOR's use of said roadways for the purpose of the activities described hereinabove. NOW, THEREFORE, IT IS AGREED THAT: ARTICLE 1. REPAIR OBLIGATION 1. OPERATOR agrees to repair damages, excluding ordinary wear and tear, on truck routes as identified on the approved Special Exception order and associated site plan submitted by OPERATOR, its contractors, subcontractors, employees, agents, or representatives in connection with gas well activities authorized by an approved Gas Well Permit. This obligation shall continue during the term of this Agreement and shall include any site plans, Gas Well Permits, or other associated matters approved after the date of this Agreement. Prior to the termination of this Agreement, OPERATOR shall pay for the repair of the damages to the roadways to restore them to the condition in which they existed, excluding ordinary wear and tear, on the date of execution of this Agreement. OPERATOR shall make a videotape of the roadways within one (1) mile of the drill site prior to the start of OPERATOR's drilling and operation of its gas wells. OPERATOR shall provide a copy of the videotape to the City's Department of Public Works. OPERATOR shall notify the City's Department of Public Works when gas well drilling, fracing or reworking operations are complete so that the City's Department of Public Works can determine if repairs are required. Upon inspection, City's Department Page 1 of 6 of Public Works shall notify OPERATOR of what repairs, and their associated costs, if any, are required or shall notify OPERATOR that repairs are not required. 2. OPERATOR shall be responsible for the costs associated with the repair of roadways damaged by OPERATOR's use of the public roadways, in accordance with the provisions contained herein. Upon determination by the City of the cost to repair damage to the roadways caused by OPERATOR, City shall invoice OPERATOR for the full amount. OPERATOR agrees to remit payment in full within 30 days of the date of the invoice. City shall be responsible for contracting for the roadway repair services and, where required by State law, shall employ a competitive bidding process to ensure that the roadway repairs are performed in the most cost effective manner possible. Should payment ultimately be insufficient to fully repair the damage caused to the roadways by OPERATOR, City may invoice OPERATOR for the balance and payment shall be due within 30 days of the date thereof. Should OPERATOR fail to remit full payment to the City for all amounts invoiced within 30 days of any such invoice, City may recover against the security required pursuant to Article 4 hereof and /or pursue any remedy available to it in law or equity to ensure that the public roadways are repaired. Conversely, the City agrees to reimburse OPERATOR the balance of any funds not used in the repair of the roadways. 3. Notwithstanding the foregoing, if, in the City's sole discretion, the damage to the roadways affects the immediate health and safety of the public, the City may take immediate remedial action to repair the roads at its own expense and invoice the OPERATOR for the full amount thereafter. 4. During the term of this Agreement, OPERATOR shall periodically inspect said roadways during drilling, fracture stimulation or reworking of the gas well to determine whether or not any damage has occurred as a result of OPERATOR's activities. Within 48 hours of discovering the existence of any such damage to the roadways, OPERATOR shall notify the City's Director of Public Works of the need for repair. City shall then invoice OPERATOR in accordance with paragraph 3, above. ARTICLE 2. TERM OF AGREEMENT This Agreement shall commence upon the date indicated above and shall continue in full force and effect until all damage caused to the roadways by OPERATOR's activities have been repaired, OPERATOR has paid all invoice amounts in full and the OPERATOR has permanently discontinued the activities upon the roadways, as described hereinabove. ARTICLE 3. BLANKET INSURANCE AND INDEMNITY 1. OPERATOR shall provide or cause to be provided insurance that meets the requirements of Section 17 -246, "Oil and Gas," of the Zoning Ordinance of the City. Such insurance shall continue until the well is abandoned and the site restored. Page 2 of 6 2. OPERATOR shall and hereby does indemnify, defend and save harmless the City, its officers, agents and employees from all suits, actions or claims of any character, name and description brought for or on account of any injuries or damages received or sustained by any person, persons or property on account of the operations of the OPERATOR, its agents, employees, contractors, subcontractors or representatives; or on account of any negligent act of fault of OPERATOR, its agents, employees, contractors, subcontractors or representatives in connection with the obligations of the OPERATOR under this Agreement; and shall pay any judgment, with costs, which may be obtained against the City growing out of such injury or damage. ARTICLE 4. BLANKET PERFORMANCE BOND OPERATOR shall provide or cause to be provided a security instrument in the form of a performance bond, irrevocable letter of credit or certificate of deposit that meets the requirements of Section 17 -246, "Oil and Gas," of the Zoning Ordinance of the City to secure the obligation of OPERATOR to pay for the repair of damages, excluding ordinary wear and tear, to public streets, including, but not limited to, bridges. ARTICLE 5. MISCELLANEOUS PROVISIONS 1. OPERATOR understands and agrees that OPERATOR, its employees, agents, contractors, subcontractors or representatives shall at no time represent themselves to be employees, agents, contractors, subcontractors or representatives of the City. 2. By entering into this Agreement, the City does not waive, nor shall it be deemed to waive, any immunity or defense that would otherwise be available to it against claims arising by third parties. ARTICLE 6. FORCE MAJEURE The performance of this Agreement shall be subject to events of Force Majeure. Events of Force Majeure shall mean any contingency or cause beyond the reasonable control of a party including, without limitation, acts of God or the public enemy, war, riot, civil commotion, insurrection, government or de facto government action (unless caused by acts or omissions of the party), fires, explosions, rain or other weather delays, floods, strikes, slowdowns or work stoppages. ARTICLE 7. ASSIGNABILITY /CONSENT Except as otherwise provided herein, or except as may be hereafter determined by the parties, no party to this Agreement may sell, assign, partially assign or transfer its interest in this Agreement, or any of its right, duties, or obligations hereunder, without the prior written consent of the other party. Whenever the consent or the approval of a party is required herein, such party shall not unreasonably withhold, delay, or deny such consent or approval. Notwithstanding the foregoing, the OPERATOR may assign this I Page 3 of 6 Agreement if the Gas Well Permit has been assigned in accordance with Section 17- 246(n) of the Zoning Ordinance of the City. ARTICLE 8. NOTICE Any notice given by one party to the other in connection with this Agreement shall be in writing and shall be by personal delivery; sent by registered mail or certified mail; or by U.S. Mail, return receipt requested, postage prepaid; to: CITY: Office of the City Manager City of Kennedale, Texas 405 Municipal Drive Kennedale, Texas 76060 OPERATOR: Chesapeake Operating, Inc. Randall Rodrigue P.O. Box 18496 Oklahoma City, Oklahoma 73154 -0496 Notice shall be deemed to have been received on the date of receipt as shown on the return receipt or other written evidence of receipt. ARTICLE 9. MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith. No evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, unless such waiver or modification is in writing, duly executed. The parties further agree that the provisions of this Article will not be waived unless as herein set forth. ARTICLE 10. SAVINGS /SEVERABILITY In the event that any one or more of the provisions hereof contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not effect the other provisions, and the Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained in this Agreement. ARTICLE 11. GOVERNING LAW AND VENUE This Agreement shall be construed under and governed by, and in accordance with the laws of the State of Texas, and all obligations of the parties hereto, created by this Agreement are performable in Tarrant County, Texas. Venue of any suit or cause of action under this Agreement shall lie exclusively in Tarrant County, Texas. ARTICLE 12. ENTIRE AGREEMENT This Agreement and the exhibits attached thereto, constitute the entire agreement among the parties hereto with respect to the subject matter hereof, and supersede any 19 Page 4 of 6 prior understandings or written or oral agreements between the parties with respect to the subject matter of this Agreement. No amendment, modification, cancellation or alteration of the terms of this Agreement shall be binding on any party hereto unless the same is in writing, dated subsequent to the date hereof, and is duly authorized and executed by the parties hereto. ARTICLE 13. WAIVER OF TERMS AND CONDITIONS The failure of either party to enforce or insist upon compliance with any of the terms or conditions of this Agreement shall not constitute a general waiver or relinquishment of any such terms or conditions, but the same shall be and remain at all times in full force and effect. ARTICLE 14. CAPTIONS The captions contained in this Agreement are for informational purposes only and shall not in any way affect the substantive terms or conditions of this Agreement. ARTICLE 15. COUNTERPARTS This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and constitute one and the same instrument. IN WITNESS WHEREOF, the parties do hereby affix their signatures and enter into this Agreement as of the ts day of t0ove 6e,? , 2007. CITY OF KENNEDALE, TEXAS la ATTEST: City Secretary APPROVED AS TO FORM AND LEGALITY City Attorney CHESAPEAKE O RATI , INC. Ile C Henry J. Ho o , enior Vice - President Land and Legal & General Counsel Texas Rail Road Commission Operator Number: 147715 Page 5 of 6 STATE OF TEXAS § COUNTYOFTARRANT § Before me, the undersigned notary public, on this day personally appeared of the City of Kennedale, Texas, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he /she executed the same for the purposes and consideration therein expressed, in the capacity therein stated, and as the act and deed of said City of Kennedale, Texas. Given under my hand and seal of office this day of , 2007. Notary Public STATE OF OKLAHOMA § COUNTY OF OKLAHOMA § Before me, the undersigned authority, a Notary Public in and for the State of Oklahoma, on this day personally appeared Henry J. Hood, Senior Vice - President, Land and Legal & General Counsel of Chesapeake Operating, Inc., known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the Corporation and that he executed the same as the act of said Corporation for the purposes and consideration therein expressed, in the capacity therein stated. Given. under my hand and seal of office this day of 2007. 'S ELL /S PRY � 0 .,S�'• ................. Notar ublic in and for the State of Oklahoma Page 6 of 6 ❑ _ � SASr= Dmsm: I AA_O °Y no ° \ N g ` 9 °3i °� l n °E q \ '9 i A�ii l o n C I i3 33 c °A•m3a p I 3 - C4 .. ..\' , �o ° 1 Ep - / NZ m ° > 5m m -+ 0710 �650- -- — -- -- ss - -- —s _ __._— _— _.— +_— _ —_.__ .- -- — _— _ —_ —_ —_ -- - - 1 U. — _ I ti$ v m3 MU m7° .nom ,O F . -- - rmV" r -DL.i I t 4 0 a - O i �° A I v i V m s5 gam° Nd;� _ z< �- - doge p K f mW E -0 � - fin C E — X30 �a ,,, n °� CHESAPEAKE OPERATING, INC. 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Johnson Field and Permitting Manager July 28, 2008 Mr. Larry Hoover Community Development Specialist City of Kennedale 405 Municipal Drive Kennedale, TX 76060 Re: Gas Well Drilling Permit Applications BOGI 1 H, 2H, 3H, 4H Dear Mr. Hoover: On July 18, 2008, Chesapeake received formal City comments in regards to the BOGI 1 H, 2H, 3H, 4H Gas Well Drilling Permit Applications. City comments and Chesapeake responses are noted below: Comment: 1. Emergency Access. Emergency Access Drive constructed from Swiney Hiett to well site and connect to Steeplechase with both gates needing knox box locks. Response: The comment has been addressed. The site plan has been updated to show an emergency access road from Steeplechase Trail to the proposed pad site location. It is Chesapeake's understanding that the emergency access road is only intended to be used by City staff should an emergency occur on -site. The site plan also notes that a reflective barricade and secured entrance with a Knox Lock be installed. Comment: 2. Sound Blankets. Sound blankets for residential neighborhoods. Response: The comment has been addressed. Prior to drilling the BOGI gas wells, Chesapeake will construct a sound wall on the north side of the pad location. The sound wall will reduce the noise from the drilling rig such that sound levels will be below the maximum decibel tolerance. The sound walls will remain in place until drilling operations are complete. Chesapeake Energy Corporation 301 Commerce Street, Suite 600 • Fort Worth, TX 76102 Direct: 817.870.5621 • Cell: 817.718.6037 * LI7.810.0450 • martin.johnson @chk.com Comment: 3. Truck Route. Truck route from Kennedale Parkway to Tower to Mansfield Cardinal to Swiney Hiett. Response: The comment has been addressed. Chesapeake construction staff and the City of Kennedale met on -site at 9:00 a.m. on Monday, July 28, 2008. The traffic route was verified in the field. All parties agreed that the proposed traffic route from Kennedale Parkway to Tower to Mansfield Cardinal to Swiney Hiett would work for well traffic purposes. Traffic signs will need to be placed and a couple of trees will need to be removed at the Mansfield Cardinal to Swiney Hiett intersection. A copy of an updated transportation route is included as an attachment to the comment/response memo. Comment: 4. Remaining Six Waivers. Response: The comment will be resolved. Presently, Chesapeake representatives are in the process of securing all remaining waivers. It is Chesapeake's intent to have all waivers prior to the Board of Adjustment meeting on August 5, 2008. Comment: 5. Landscaping and Screening around Pad Site. Response: The comment has been addressed. As outlined in the Chesapeake drilling permit application, Chesapeake intends to plant fourteen trees around the pad location. Also, after all drilling operations are complete, the proposed pad will be screened with cedar fencing and masonry columns as outlined within the City drilling ordinance. Comment: 6. Tree Replacement Plan. Response: The comment has been addressed. A formal tree survey was conducted for the BOGI site. The detailed tree survey was included in the Chesapeake drilling permit application. All trees were documented and given a site assessment value. According to the Urban Forestry Consultant, almost every documented tree has fire damage. The tree survey table on the following page quantifies the number of trees and their condition. Chesapeake is proposing to replace a portion of the damaged trees. Of the proposed 81 trees to be replaced, Chesapeake will plant fourteen trees around the pad location and the remaining trees can be planted at the locations determined by the City. Per previous correspondence, some of the proposed 3" trees can be planted to enhance the landscaping of City Parks and City Schools. Chesapeake Energy Corporation 301 Commerce Street, Suite 600 • Fort Worth, TX 76102 Direct: 817.870.5621 • Cell: 817.718.60 817.810.0450 • martin.johnson @chk.com RnrZ1 414_914 Tree Survey Comment: 7. Resolution of Plat Issue. Response: The comment has been addressed. On July 21, 2008, Chesapeake contacted the surface owner, Bill Bowerman. Mr. Bowerman reviewed all of his records and he confirmed that a final subdivision plat for his property was never filed. Also, the design engineer, Halff and Associates, researched deed records at the County. Halff was not able to locate a recorded final plat for the Bowerman property. Therefore, all plat issues are resolved. Comment: 8. Emergency Equipment Needs. Response: The comment will be resolved. Chesapeake did review the emergency equipment request from the City of Kennedale Fire Department. Chesapeake will donate all funds associated to purchasing the necessary emergency equipment for the City of Kennedale Fire department. Comment: 9. Drilling Schedule Timeline. Response: The comment will be resolved. If the BOGI drilling permit is approved at the August 5, 2008 Board of Adjustment meeting, will likely spud date of the gas well will be August 29, 2008. It is important to mention that the spud date is an estimate. Chesapeake will notify the City of Kennedale 72 hours prior to beginning mobilization efforts for the BOGI 1H. At the present time, there is not any planned drilling activity for the remaining BOGI gas wells on the current drill schedule. With that said, the drill schedule changes frequently and the City of Kennedale will be notified when other BOGI drilling permits are scheduled to be drilled. Chesapeake Energy Corporation 301 Commerce Street, Suite 600 • Fort Worth, TX 76102 Direct: 817.870.5621 • Cell: 817.718.6037 *1417.810.0450 • martin.johnson @chk.com Tree Condition Total Trees Good Fair Poor Existing Trees 23 96 28 147 Tree Multi tier 1 0.5 0.33 Proposed T rees 1 23 1 48 10 1 81 Comment: 7. Resolution of Plat Issue. Response: The comment has been addressed. On July 21, 2008, Chesapeake contacted the surface owner, Bill Bowerman. Mr. Bowerman reviewed all of his records and he confirmed that a final subdivision plat for his property was never filed. Also, the design engineer, Halff and Associates, researched deed records at the County. Halff was not able to locate a recorded final plat for the Bowerman property. Therefore, all plat issues are resolved. Comment: 8. Emergency Equipment Needs. Response: The comment will be resolved. Chesapeake did review the emergency equipment request from the City of Kennedale Fire Department. Chesapeake will donate all funds associated to purchasing the necessary emergency equipment for the City of Kennedale Fire department. Comment: 9. Drilling Schedule Timeline. Response: The comment will be resolved. If the BOGI drilling permit is approved at the August 5, 2008 Board of Adjustment meeting, will likely spud date of the gas well will be August 29, 2008. It is important to mention that the spud date is an estimate. Chesapeake will notify the City of Kennedale 72 hours prior to beginning mobilization efforts for the BOGI 1H. At the present time, there is not any planned drilling activity for the remaining BOGI gas wells on the current drill schedule. With that said, the drill schedule changes frequently and the City of Kennedale will be notified when other BOGI drilling permits are scheduled to be drilled. Chesapeake Energy Corporation 301 Commerce Street, Suite 600 • Fort Worth, TX 76102 Direct: 817.870.5621 • Cell: 817.718.6037 *1417.810.0450 • martin.johnson @chk.com Comment: 10. Update the Surface Owner Map and List. Response: The comment has been addressed. The surface owner map and list has been updated such that the lot numbers correspond with the TAD lot numbers. The updated information is included as attachments to the comment/response memo. Should you have questions, please contact me by phone or email. Cordially, Martin J. Johnson Enclosures Site Plan — 1 page Transportation Route — 1 page Surface Owner Map and List — 2 pages Chesapeake Energy Corporation 301 Commerce Street, Suite 600 • Fort Worth, TX 76102 Direct: 817.870.5621 • Cell: 817.718.60 • F 817.810.0450 • martin.johnson @chk.com KENNELa4LE FIRE DEPARTMENT Chesapeake Energy 07/18/2008 Good day, The Kennedale firefighters and I welcome you to our community. We hope your venture is a great success. I want to assure you that we will maintain a high state of readiness to respond to any emergency at your site. Nearly all of our firefighters are both paramedics and hazardous materials technicians who are highly trained for medical emergencies, victim extrication, firefighting, and other hazardous responses. Although we're a small department, we have excellent equipment for the types of emergencies we commonly encounter. For instance, our emergency medical equipment is state of the art. Unfortunately, your drilling and gathering operation may present challenges that require equipment we just can't afford to buy at this time. We would appreciate any assistance you may offer to help us purchase the equipment that we may need at your site in the event of an emergency. Equipment that may be needed for emergencies at gas well sites # Ea. Ext. Scott air packs with safety enhancements for IDLH operations 2 3,875 7,750 Scott one hour bottles for extended deployment and reserve air supply in IDLH 2 944 1,888 Motorola 800 MHz portable radios for enhanced communications 2 3,500 7,000 High angle rescue kit including stokes basket, life lines, pulleys, straps, and carabineers 1 2753 2753 Rescue tripod kit 1 992 992 Class 3 Heavy rescue harness 6 208 1,248 Total $21,631 We appreciate any help you can offer to offset the cost of this valuable emergency response equipment. But, let me assure you that even if you choose not to invest in the equipment, we will always respond to your emergency needs with the same excellent service and care we want for our families. Thank you y� Mike McMurray Fire Chief — Kennedale FD 817 - 561 -2237 or 817-538-7379 "FI The Environmental & June 4, 2008 Chesapeake Energy Corporation Attn: Mr. Martin J. Johnson Manager — Field Perinitting 301 Commerce Street, Suite 600 Fort Worth, Texas 76102 (817) 870 -5621 Resources Group, Inc, RE: BOGI #1H, 2H, 311, 4H, 5H, 6H, 711, 8H Pre - Drilling Ambient Noise Level Survey API #'s — Not Available at Date of Report Dear Mr. Johnson: Per T. Brown's written request on May 30, 2008, ENRG performed a pre - drilling ambient noise level survey at the Chesapeake Energy Corporation BOGI 41H, 2H, 3H, 4H, 5H, 6H, 7H, 8H drilling locations in Kennedale on June 2 -3, 2008. Since the City of Kennedale does not require pre - drilling testing, for measurement purposes this noise level survey is based on the requirements of the City of Fort Worth's Ordinance Number 16986 -06 -2006 Division VII Section 15 -42 B, which was adopted June 13, 2006. The BOGI #1H, 2H, 3H, 4H, 5H, 6H, 7H, 8H are located at approximately Latitude 32.640006 Longitude — 97.194878. According to Google Earth maps and visual observation, the proposed drill sites are located west of Highway 287 and south of Kennedale /Sublet Road (Figure 1). At the time of the ambient sound level test, the well pad had not been constructed and there were houses located within 1,000 feet of the proposed site. An EXTECH 407764 (ANSI S 1.4 Type II) Data Logging Sound Level Meter (SLM) was calibrated, programmed for decibel (dB) readings between 30 -130 dB and "A" frequency weighting (human ear) and installed at the site by ENRG personnel at approximately 11:00 PM on Monday, June 2, 2008. Initial and final readings were verified with a calibration device to ensure accuracy during and after the test. The objective was to measure and document the site's 24 -hour ambient sound levels until 11:00 PM on Tuesday, June 3, 2008. The meter was located on a stake installed by ENRG near the center of the drilling locations. The SLM was placed where no obstructions were allowed to block the meter from measuring and recording accurate ambient noise levels. The results of the 24 -hour pre - drilling ambient noise levels are attached as Table 1, Figure 2, and Figure 3. Per the City of Fort Worth Ordinance, daytime is defined as the period between 6:00 AM and 7:00 PM, and nighttime is defined as the period between 7:00 PM and 6:00 AM. A summary of the 24 -hour ambient noise level averages is shown on Table 1. Figure 2 shows the graphical results of the minimum, maximum and average of the 24 -hour pre - drilling ambient noise levels. Figure 3 indicates the 24 -hour average ambient noise levels and allowable drilling noise levels. Please call me direct at (214) 674 -3762 if you have any questions or comments. Sincerely, Todd H. Boring President ENRG The Environmental & Natural Resources Group, Inc. Attachments P.O. Sox 810658 m Dallas, TX 7530101 214 674 3762 w todd @enrgconsuitantsxom ,� TABLE 1 CHESAPEAKE ENERGY CORPORATION BOGI 4111, 211, 311, 4H, 511, 6H, 711, 8H PRE - DRILLING AMBIENT NOISE LEVEL AVERAGES JUNE 2 - 3, 2008 Daytime Allowable Average ! 68.6 Nighttime Allowable Average 66.6 P.O, Box 810658 m Dallas, TX 7538^f j14 674 3762 m enrgtodd @yahoo,com 24 -Hour Average 1 63.6 1 40.0 1 8973 f j0. A� 4 ° O A� 1 200 Ip j0 O ?O� O A �O O q� AO O Sound Level (dBA) N N W W P Vt llh Q1 O\ �l —1 00 00 Vi O Ch O ("I O N O Vi O l.h O O O O O O O O O O O O O O O O O O 1 % 0 `41 6� O y u Y � O q q. �O � q ' � yA N Y� � I I. W •O O j2. Io O� '7 O� O �O O 7 S O 6 O A+ O O16 l fO O O 19 16 z Q O � Z O N F+ W N x W W O\ W 00 W ki - rD O O O O � � � C O � � IQ i it 1 % 0 `41 6� O y u Y � O q q. �O � q ' � yA N Y� � I I. W •O O j2. Io O� '7 O� O �O O 7 S O 6 O A+ O O16 l fO O O 19 16 z Q O � Z O N F+ W N x W W O\ W 00 W 9 1:4 Sound Level (dBA) � N W vii 01� IO O O O� O , gy p O O O O O O O 7 I IO O /200 Q "r ti 4 1 A o CD N � � M 164r r, UA Z � OA � r S 19 G O, O OAa - 7 �O 6' a O Oda - 7 9 1:4 A uj 0 x co 0 G, Go V u„ w m FEE 0 C. 9. D 0 cn Qj 0 0 D z D m n 0 m m O r r -U z m m D v z z m r m m m G7 m m z —A 0 D r u W 0 0 z C N Ch 0 m C) 0 m z 0 m 0 z C m ;o 0 n m m x m C_ ;U m D 11 N W N N 0 0 0 W ..Q (D n ;C7 m m U) x m 0 0 m z 0 m 0 w 0 D U) N m II 0 w 0 X w 0 U) .Q II N N .Q D CO N m ii N cn 0 x w cn u co P 4 Ul 0 D m O O O O W O 0 m m 0 D z n m 0 0 0 03 z 0 m G), D D 'o D *M> Nm z = m ODZ =m Dmc =G C cn 0 DXZ =O W cn :z 'a m �, 2 0 m0 z G) D cn m r r v cn 0 m 0 z r D Z I: r 3 �� r at i rn m =i 3 N ct �l LLLIII ii r' C Go C�7 C�7 d � 0 o rr co co ° z W c o Ol u V A W W V fir+ Gl N .(1 r°r � O C1 d ro 7 LO J n O 7 � a c � y o V_ t7 r r Y C U C t7 17 f � L �is I Wil m Z N V w W co h' p V W V Nj PV W 0 O 4 CL tD 8 n O N C rr fl3 rt N Cl O G' r r t v C t7 17 t- iii Tree Diagnosis _� ;: 1, ` Tree Surveys ?raw Urban Forestry Consultant � � ° Landscape Tree Appraisals 700 Quail Run Woodlands Appraisals Azle, TX 76020 treesandquail @skywi.com Land Management Habitat Restoration Junel6th, 2008 Chesapeake Operating, Inc Dusty Anderson, P.E. 301 Commerce St. Ste. 600 Fort Worth TX 76102 Dear Mr. Anderson, It was a pleasure meeting with you at the BOGI 1H -81 pad site in Kennedale, Texas. Thanks so much for your help locating the corners and flagging the boundaries. Sorry it took so long tagging the trees but the two fires that had burned across the site caused a lot of dead fall, underbrush and vines and it got really hot on Friday afternoon. I finished Monday morning. There were many dead trees killed by the fires and most trees were in poor condition because of damage from the fires. Based on old scares, one fire may have occurred 10 to 15 years ago and the last one may have occurs 2 to 3 years ago. Trunk damage and crown damage was common and caused crown die back and decline. Many trees were dead and fallen while others were still standing dead. Enclosed are the field tally sheets for 146 trees tagged and tallied on the site. I started in the S.E. corner using tag # 120 and ended with tag # 266 on the north side. I worked west and north, back and forth until all trees were tagged and tallied. All live trees 6" DBH and above were tagged and tallied. No under story trees of desirable species 2" DBH and above were found. I identified each by species, determined each trunk diameter to the nearest inch, and gave a condition or health rating of 1 thru 3 with 1 being good and also used H as hazard and made a comment or notes on several trees. International Society of Arboriculture standards were followed for forked and multiple stem trees. (See legend at top of tally sheets) If you have questions or need additional information feel free to give me a call. Sincerely, Larry S�'liaapveld Urban Forestry Consultant e O � m c 7 aJ S -�. � i.Y 0 �' �._° y , ° t ". ti � c • � � s • `I os � 1 p 4� CQ Q1 (�F 41 e _ �a t 1 d d: v r 0 0 OEM - u 0) CC) (D IQ( z - b z 33 4 �0 ID 0 ID C A U�b i�j Jj (ju < 1 z 0 CD 44 C> 411 -CS Q 'ka � cj IT ;u I f I I I I I I 44 r C) 0 0 1) CD tU 45 Tj SU 4�61 �U 3u 5u 93 -1 M m F,T YU m Zz. 45 CD III ro E' Elo-j U k I F Z5 FD I L CU Ful W CD U) E' Elo-j LICENSE OR PERMIT BOND Safeco Insurance Companies PO Box 34526 Seattle, WA 98124 -1526 Bond 6524280 LICENSE OR PERMIT BOND KNOW ALL BY THESE PRESENTS, That we, Chesapeake Operating, Inc. r� , o -, SEAL 4AHO.0P SEAL ai 195'3 Fop WASM�'� as Principal, and the Safeco Insurance Con as Surety, are held and firmly bound unto C of America 405 M Dr., Ke Washington corporation, TX 76060 ,asOb in the sum of One Hundred Thousand Dollars And Zero Cents Dollars ($ 100,000.00 ) for which sum, well and truly to be paid, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. Signed and sealed this 26th day of November , 2007 THE CONDITION OF THIS OBLIGATION IS SUCH, That WHEREAS, the Principal has been or is about to be granted a license or permit to do business as oil and gas well drilling, operation, plugging and road damage by the Obligee. NOW, Therefore, if the Principal well and truly comply with applicable local ordinances, and conduct business in conformity therewith, then this obligation to be void; otherwise to remain in full force and effect. PROVIDED, HOWEVER; 1. This bond shall continue in force: ❑ Until , or until the date of expiration of any Continuation Certificate executed by the Surety OR ❑X Until canceled as herein provided. 2 This bond may be canceled by the Surety by the sending of notice in writing to the Obligee, stating when, not less than thirty days thereafter, liability hereunder shall terminate as to subsequent acts or omissions of the Principal. r' Chesapeake Operating, Inc. P 'ncipal *Jfe*rri Sr. Vic res de t Safeco Insurance Company of America B y 1� nd Thornbrugh Attorney -in -Fact S- 0908 /SA 10199 a Safeco and the Safeco logo are registered trademarks of Safeco Corporation xop POWER =to OF ATTORNEY KNOW ALL BY THESE PRESENTS: No. 13336 Safeco Insurance Company of America General Insurance Company of America Safeco Plaza Seattle, WA 98185 That SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA, each a Washington corporation, does each hereby appoint * *JEAN A. BRILL; SOPHIA J. PAPARONIS; Oklahoma City, Oklahoma; MELANIE BLACK; MARK BUSH; LINDA THORNBRUGH; Tulsa, Oklahoma its true and lawful attorney(s) -in -tact, with full authority to execute on its behalf fidelity and surety bonds or undertakings and other documents of a similar character issued in the course of its business, and to bind the respective company thereby. IN WITNESS WHEREOF, SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA have each executed and attested these presents this 23rd day of August 2007 STEPHANIE DALEY- WATSON SECRETARY TIM MIKOLAJEWSKI, SENIOR VICE- PRESIDENT, SURETY CERTIFICATE Extract from the By -Laws of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA: "Article V, Section 13. - FIDELITY AND SURETY BONDS ... the President, any Vice President, the Secretary, and any Assistant Vice President appointed for that purpose by the officer in charge of surety operations, shall each have authority to appoint individuals as attorneys -in -fact or under other appropriate titles with authority to execute on behalf of the company fidelity and surety bonds and other documents of similar character issued by the company in the course of its business... On any instrument making or evidencing such appointment, the signatures may be affixed by facsimile. On any instrument conferring such authority or on any bond or undertaking of the company, the seal, or a facsimile thereof, may be impressed or affixed or in any other manner reproduced; provided, however, that the seal shall not be necessary to the validity of any such instrument or undertaking." Extract from a Resolution of the Board of Directors of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA adopted July 28, 1970. "On any certificate executed by the Secretary or an assistant secretary of the Company setting out, (I) The provisions of Article V, Section 13 of the By -Laws, and (ii) A copy of the power -of- attorney appointment, executed pursuant thereto, and (iii) Certifying that said power -of- attorney appointment is in full force and effect, the signature of the certifying officer may be by facsimile, and the seal of the Company may be a facsimile thereof." I, Stephanie Daley- Watson Secretary of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA, do hereby certify that the foregoing extracts of the By -Laws and of a Resolution of the Board of Directors of these corporations, and of a Power of Attomey issued pursuant thereto, are true and correct, and that both the By -Laws, the Resolution and the Power of Attorney are still in full force and effect. IN WITNESS WHEREOF, i have hereunto set my hand and affixed the facsimile seal of said corporation this L1 /' day of l V �CIY(.✓ oL �y,CE C(tlMop CE C pMP =EA SEAL W L s x y d� 1953 te a! `� 152 STEPHANIE DALEY- WATSON, SECRETARY Of Of WaSa S- 0974/DS 4/05 Safecot9 and the Safeco logo are registered trademarks of Safeco Corporation. WEB PDF 2 Staff Report To the Members of the Board of Adjustment Date: August 29, 2008 Agenda Item No: III -a Subject: Minutes Originated by: Crystal Tort, Board of Adjustment Secretary Summary: Attached are the minutes for the Regular Meeting dated July 1, 2008 and August 5, 2008. Recommendation: Staff recommends approval Disposition by Commission: 11 156 MINUTES BOARD OF ADJUSTMENT REGULAR MEETING - JULY 1, 2008 KENNEDALE MUNICIPAL BUILDING - 405 MUNICIPAL DR. COUNCIL CHAMBERS 7:00 PM Vice -Chair Elam called the meeting to order at 7:13 PM. Members present: Cheryl Abbott, Patrick Vader, Richard West, Donnie Graham, and Linda Elam. Members absent: Rick Adams and Brian Cassady Staff Present: Larry Hoover, Code Enforcement Officer, James E. Cowey, Building Official, and Crystal Tort, BOA Secretary. Ms. Tort performed the swearing in of the citizens that would like to address the Board. I. VISITORS /CITIZENS FORUM No one wished to speak. 11. CONSIDER BOA CASE # 08 -04 A request for a Special Exception to the City Code Section 17 -426 (c), to allow oil and gas well drilling and production to be located at 5750 E IH 20 as required by this section. Legal description is Lot 1 RI A, Block 1 of the Fort Worth Inc Addition in the City of Kennedale, Tarrant County, Texas as requested by EOG Resources, Inc. (a) STAFF PRESENTATION OF CASE James E. Cowey explained that EOG Resources had applied for a special exception for the purpose of drilling (5) gas wells at 5750 East 1 -20. At the June 3, 2008 BOA Meeting this item was tabled due to the applicant not submitting waiver letters. Mr. Cowey informed the Board that the applicant has moved the location of the well and only requires waiver letters from two buildings. Mr. Cowey notified the Board that all required waivers have been received and staff has no issues with approving this application. (b) APPLICANT PRESENTATION OF CASE Mark Baysden, 777 Main Street, Fort Worth, TX speaking in behalf of EOG Resources addressed the Board in favor of the Special Exception. Mr. Baysden informed the Board that the pad site has been moved a little to the north because EOG could not acquire some waiver letters from the building owners at its original location. Mr. Baysden explained to the Board that all waiver letters have been received, including waiver letters for the additional buildings. Although all letters have been received EOG Resources has decided to leave the pad site at this new location because it is the best location for Mr. Moore. Mr. Baysden also explained that at this new location it would require EOG to relocate power lines underground. Mr. Baysden also notified the Board that at the last meeting Ms. Morris was in objection to the Special Exception, but is now in lease with EOG. i LWIJ 157 (c) PUBLIC HEARING ON BOA CASE #08 -04 No one wished to speak. (d) APPLICANT RESPONSE Applicant did not wish to speak. (e) STAFF RESPONSE AND SUMMARY OF CASE Staff did not wish to speak. Mrs. Vader closed the public hearing at 7:20pm. (f) ACTION ON CASE Mr. Vader made a motion to grant the Special Exception for gas drilling, seconded by Mr. Graham. Motion passed without opposition. 111. REGULAR ITEMS 1) Approval of Minutes dated June 3, 2008. Mrs. Abbott made a motion to approve the minutes as presented, seconded by Mr. Graham. Motion passed unanimously. IV. STAFF REPORTS 1) Staff Update on City Projects James E. Cowey discussed the status of Town Center and notified the Board that the special exception for a guest house that was granted by the BOA, has moved forward to the platting process and has been tabled at the request of the applicant due to the applicant not wanting to give up his land to ROW. V. ADJOURNMENT Mrs. Abbott made a motion to adjourn the meeting, seconded by Mr. Vader. Motion passed unanimously. Vice -Chair Elam adjourned the meeting at 7:23 pm. Chairman, Rick Adams Board of Adjustment f, 158 ATTEST: Crystal M. Tort Board of Adjustment Secretary PE 159 MINUTES BOARD OF ADJUSTMENT REGULAR MEETING -AUGUST 5, 2008 KENNEDALE MUNICIPAL BUILDING - 405 MUNICIPAL DR. COUNCIL CHAMBERS i1 Chairman Adams called the meeting to order at 7:00 PM. Members present: Rick Adams, Brian Cassady, Cheryl Abbott, Patrick Vader, Richard West, and Linda Elam. Members absent: Donnie Graham Staff Present: Larry Hoover, Code Enforcement Officer and James E. Cowey, Building Official. Mr. Hoover performed the swearing in of the citizens that would like to address the Board. I. VISITORS /CITIZENS FORUM No one wished to speak. II. CONSIDER BOA CASE # 08 -05 A request for a Special Exception to the City Code Section 17 -426 (c), to allow gas well drilling and production to be located at 205 N Joplin Road as required by this section. Legal description is Abstract 866 Tract 36 of the Ben Joplin Survey in the City of Kennedale, Tarrant County, Texas as requested by Chesapeake Energy Corporation. (a) STAFF PRESENTATION OF CASE James E. Cowey informed all those in attendance of a section in the City of Kennedale Code of Ordinances that gives technical requirements for oil and gas well approval. Mr. Cowey explained that Chesapeake has filed for four gas wells at 205 North Joplin Road and notified the Board of a series of meetings between Chesapeake and Staff. Mr. Cowey explained staffs concerns with the application, which have been addressed by Chesapeake with the exception of waivers from six (6) home owners within the 300 to 600 foot distance from the well site. Mr. Cowey then answered a few questions from the Board which included the difference with this special exception compared to others and the timeline of tree replacement. He notified the Board that the only difference with this special exception is the well site is near residential structures. And informed the Board that the well site will be cleared immediately but the timeline of placement was not known. (b) APPLICANT PRESENTATION OF CASE Mr. Norman Herrera, 301 Commerce Street, Fort Worth TX speaking in behalf of Chesapeake Energy Corporation began his presentation by introducing his team members and then presenting a power point that explained the background of Chesapeake and an overview of the project. Mr. Herrera explained that Chesapeake is the largest driller here in the nation. And currently has one hundred sixty -one (161) leases signed through Chesapeake and forty -three (43) operating rigs throughout the Barnett Shale region. Chesapeake has a lease hold of around fifteen hundred 21 160 (1500) acres in Kennedale or 40% of the City. Mr. Herrera informed the Board that this project will benefit the city, the schools, the education foundation, and the royalty owners. He then began discussing the Drilling 101 Presentation which discussed 1. Site preparation, 2. Drilling, 3. Fracturing, 4. Pipeline, 5. Reclaiming the Site. Pictures and examples of well sites in the region were presented. Mr. Herrera discussed the transportation route, which will be from Kennedale Parkway to Tower to Swiney Hiett and any damage will be repaired by Chesapeake. Mr. Herrera also discussed the site plan and sound mitigation levels, which are 70 decibels during the day and 60 decibels at night. Mr. Herrera informed the Board that sixteen (16) feet Sound walls would be placed around the pad site and blankets around the engine to help reduce noise levels. Mr. Herrera also made the Board aware that no gas is on site, not until the fracturing process. Lastly Mr. Herrera discussed the Emergency Response Plan and property enhancements. (c) PUBLIC HEARING ON BOA CASE #08 -05 David Deaver, 1410 Swiney Hiett Road, Kennedale, TX addressed the Board about some areas of concern. Mr. Deaver questioned if a compression station would be on site, and if so where would it be located and how much noise would it produce? He also was concerned about the traffic down Swiney Hiett Road and the effect it would have on the neighborhood. Everett Head, 1209 Swiney Hiett Road, Kennedale TX addressed the Board to discuss safety and traffic and informed the Board if Chesapeake follows what was presented tonight he believes it will be a safe place for the neighborhood. Vicki Lamb, 201 North Joplin Road, Kennedale, TX addressed the Board with several questions, such as: If there are four wells proposed wouldn't that increase the noise level and the safety concerns? Also, does the City have regulations for the fracturing hours of operation? Hollis Matthews, 1252 Elmbrook Drive, Kennedale, TX addressed the Board in regards to the six hundred foot waiver agreement. Mr. Matthews informed the Board that he was a former P &Z Member and helped create the regulation requiring waiver letters from the property owners within three hundred to six hundred feet. Mr. Matthews posed this question, since it is the norm to drill 600 feet away from a structure, what will be different for those within the 300 to 600 feet? What will be done additionally to protect this group of citizens' safety? Mr. Matthews requested the Board to turn down this proposal because there are currently five waivers not signed. Donald McCrary, 1425 Swiney Hiett Road, Kennedale, TX addressed the Board in favor of the special exception and tells the Board to go forward with the permit to drill. Roy Stott, 1260 Elmbrook Drive, Kennedale, TX addressed the Board against the special exception. Mr. Stott notified the Board that his home is approximately 450 feet from the well site and his main concern is safety. Mr. Stott explained that he has been working with Chesapeake, but has issues with the waiver; it does not specify an expiration date or the location of the pad site. So Chesapeake can come and put a new well as close as 300 feet from Mr. Stott's home. Mr. Stott's second issue is out of twenty (20) trucks that will be on site, one truck will have explosives on it. Mr. Stott explained that this truck will be stored up above the ground and is dangerous to the residence. Also, another issue is a gas line that is twenty -four (24) inches in diameter, which has no detectors for gas leaks. Mr. Stott also mentioned how residences currently have low water pressure and is concerned with Chesapeake using City water. Also, a frac pond that is not fenced in can be dangerous to the children in the neighborhood. Lastly, Mr. Stott explained the fence material around the well site should be a stronger material for protection against a fire. (d) APPLICANT RESPONSE R1 161 Mr. Herrera notified the Board and the Citizens that most of their concerns will be addressed with Staffs input by the next meeting on September 2 " Mr. Herrera also informed all in attendance that no compressor station will be needed for this site. Also, since Kennedale Code does not specify a time restriction on fracturing hours, it will be done in day time hours, unless specified something different. Chesapeake abides by the safety guidelines set by the railroad commission concerning explosives, so therefore would be in compliance. Mr. Herrera also notified all that the Frac pond will be housed within a fence. Dusty Anderson spoke regarding the fencing for the site. Mr. Anderson informed the board masonry columns with a cedar fence will be used for this site. Mr. Anderson also addressed the water pressure issue, and notified the Board that the water tanks can be filled up during off -peak hours, so as not to cause low water pressure to the citizens. He also mentioned that the transportation route, would be the least congested route for everyone. Mr. Herrera then discussed the gas line issue and made all in attendance aware that Chesapeake tests the lines and provides corrosive protection. (e) STAFF RESPONSE AND SUMMARY OF CASE James E. Cowey addressed the concerns made by the citizens during the public hearing and informed the Commission that further research will be done to determine the number of trucks and hours of operation when using the truck route. Also, a more detailed explanation will be given on gas line, explosives, and tax benefits to the City. (f) ACTION ON CASE After a discussion amongst the Board Members a motion to table the special exception was made by Mr. Vader, and seconded by Mr. Cassady. Motion passes unanimously. III. REGULAR ITEMS 1) Approval of Minutes dated July 1, 2008 Mr. Adams tabled this item until the next meeting, due to minutes not being included in the packet. IV. STAFF REPORTS 1) Staff Update on City Projects James E. Cowey updated the Board on the Town Center project and informed all in attendance that the foundation has been poured for the fountain and the wrought iron fencing will be put up in a few weeks. Larry Hoover notified the Board that the City demolished four structures in Oakcrest and will be having a clean up in the Oakcrest area for the residence to do clean up at the City's expense. Mr. Hoover also mentioned a sewer line will be added, which will provide sewer service to residence in this area. Mr. Hoover also explained that the Pennsylvania reconstruction has been held up due to Atmos gas. F�7 162 V. ADJOURNMENT Mr. Vader made a motion to adjourn the meeting, seconded by Mrs. Elam. Motion passed unanimously. Chairman Adams adjourned the meeting at 9:25 PM. Chairman, Rick Adams Board of Adjustment ATTEST: Crystal M. Tort Board of Adjustment Secretary 'r1�1 Staff Report To the Members of the Board of Adjustment Date: August 29, 2008 Agenda Item No: IV -a Subject: Staff Update on City Projects Originated by: James E. Cowey, Building Official Summary: Update on the status of construction on Town Center and other City Projects. Recommendation: Disposition by Commission: BOA CASE # 08 -05 CHESAPEAKE SPECIAL EXCEPTION CITY OF KENNEDALE PUBLIC HEARING SIGN -IN FORM SUBJECT: BOA 08 -05 to receive citizen's comments for a Special Exception to the City Code Section 17 -426 (c), to allow gas well drilling and production to be located at 205 N Joplin Road as required by this section. Legal description is Abstract 866 Tract 3B of the Ben Joplin Survey in the City of Kennedale, Tarrant County, Texas as requested by Chesapeake Energy Corporation. 2. 1 HEREBY >6NISH TO ADDRESS THE COMMISSION. ❑ DO NOT WISH TO ADDRESS THE COMMISSION, BUT I WOULD LIKE TO REGISTER THE FOLLOWING OPINION. 3. 1 AM REGISTERING ❑ FOR AGAINST THE SPECIAL EXCEPTIOIN 4. IN REGISTERING, I REPRESENT: MYSELF ❑ THE FOLLOWING PERSONS, FIRMS, CORPORATIONS, CLASSES OR GROUPS: 5. THEIR BUSINESS ADDRESS IS: SIGNATURE: DATE: September 2, 2008 BOA CASE # 08 -05 CHESAPEAKE SPECIAL EXCEPTION CITY OF KENNEDALE PUBLIC HEARING SIGN -IN FORM SUBJECT: BOA 08 -05 to receive citizen's comments for a Special Exception to the City Code Section 17 -426 (c), to allow gas well drilling and production to be located at 205 N Joplin Road as required by this section. Legal description is Abstract 866 Tract 3B of the Ben Joplin Survey in the City of Kennedale, Tarrant County, Texas as requested by Chesapeake Energy Corporation. 1. NAME: C fit. — M , — a — t - aea ®q ADDRESS: I 1 �a - ZIP r 7 Co D to "4 L4 [ I PHONE NUMBER: 0 � I - 5-�o I - (? of� S D 2. 1 HEREBY &WISH TO ADDRESS THE COMMISSION. ❑ DO NOT WISH TO ADDRESS THE COMMISSION, BUT I WOULD LIKE TO REGISTER THE FOLLOWING OPINION. 3. 1 AM REGISTERING ❑ FOR ❑ AGAINST THE SPECIAL EXCEPTIOIN M . :_ N , 4. I REGISTE ING I REPRESENT: 4 MYSELF ❑ THrFOLLOWING PERSO CORPORATIONS, CLASSES OR GROUPS: ' 9-r-- K�,.�. -�-.�� , r a�►� -„�' Cam- -„��, l ,��. 5. THEIR BUSINESS ADDRESS IS: SLPNATU , DATE: September 2, 2008 BOA CASE # 08 -05 CHESAPEAKE SPECIAL EXCEPTION CITY OF KENNEDALE PUBLIC HEARING SIGN -IN FORM SUBJECT: BOA 08 -05 to receive citizen's comments for a Special Exception to the City Code Section 17 -426 (c), to allow gas well drilling and production to be located at 205 N Joplin Road as required by this section. Legal description is Abstract 866 Tract 36 of the Ben Joplin Survey in the City of Kennedale, Tarrant County, Texas as requested by Chesapeake Energy Corporation. 1. NAME: ADDRESS PHONE NUMBER: 2. I HEREBY YVVISH TO ADDRESS THE COMMISSION. ❑ DO NOT WISH TO ADDRESS THE COMMISSION, BUT I WOULD LIKE TO REGISTER THE FOLLOWING OPINION. 3. 1 AM REGISTERING ❑ FOR /AGAINST THE SPECIAL EXCEPTIOIN 4. IN REGISTERING, I REP RESENT: YSELF ❑ THE FOLLOWING PERSONS FIRMS, CORPORATIONS, CLASSES OR GROUPS: 5. THEIR BUSINESS ADDRESS SIGNATU DATE: September 2, 2008 AGENDA BOARD OF ADJUSTMENT REGULAR MEETING — SEPTEMBER 2, 2008 KENNEDALE MUNICIPAL BUILDING — 405 MUNICIPAL DR. COUNCIL CHAMBERS 7:00 PM CALL TO ORDER , 0 ROLL CALL BRIAN CASSADY RICK ADAMS / PATRICK VADER I. VISITORS /CITIZENS FORUM LIN ELAM fIF ..� WA At this time, any person with business before the Board of Adjustment not scheduled on the Agenda may speak, provided that a "Speaker's Request Form" has been completed and submitted to the Board of Adjustment Secretary prior to the start of the meeting. All comments must be directed towards the Chair, rather than individual BOA members or staff. All speakers must limit their comments to the subject matter as listed on the "Speaker's Request Form." No formal action can be taken on these items I) oh 1 51 G{'ud � II. CONSIDER BOA CASE # 08 -05 A request for a Special Exception to the City Code Section 17 -426 (c), to allow gas well drilling and production to be located at 205 N Joplin Road as required by this section. Legal description is Abstract 866 Tract 3B of the Ben Joplin Survey in the City of r - Kennedale, Tarrant County, Texas as requested by Chesapeake Energy Corporation. a) STAFF PRESENTATION OF CASE b) APPLICANT PRESENTATION OF CASE td 10 uel - n� ri r7ois p— Iagej Ljaw- 1 r ly C)-dq( Fey\ u uJ 61 vmns c) PUBLIC HEARING ON BOA CASE #08 -05 ® o S+a 4, Q2 vi r ecl fv r e b ac,l t YUP - ho rl we,11� 5�S re.a.pr�l u M60 , f te,-rn�r, 6� b val YA Aar an kak +vtx v i v OA►1r na �h OP C- 0 urn 'd 0 © Fence aromod well 6 i 6 i+(- n pi in of � n(e ? u orY fire fi ht pf egvcu +v �1�no +ov ( -&,res i d) APPLICANT RESPONSE �hGt�S u Q(C� wAk� p`i(�CS ito} ctQQgvG deems- enoug we, Nava o, jN e• 0%14 4-Cg d �, tvsyu.a VW, Eef' y ea" 13,apo qW +0 11,000 a (NA t lwmoreSSi7)n drescoi w o" srR�Ny✓) -Med J of 20 lb S ho wed r4aa � s M p s -b Ko ,mac.. S M f & wern'm o ry / 1' (� rz°SSOr Jl�fiio.� )oco, GA _ 6+ T ( � . {� AVIiSo n .� f fo C�xpl ✓e . ® �1o11is 1� IUT iA 6.A)C I'(1Yl�l /inA �) rc,t,v),* i - b {1/011.6' Al cSik. �S r in k,-,Lk— s LAY A y t5 t�vl 1 /j a D tA r �M 6( CI �u CS�S. I" Ilfltl� aF �e►�rVtt R/p e) STAFF RESPONSE AND SUMMARY OF CASE wrur re (l Pl0 PAM t is (di n an a 6Gh1n{, 0r Sfiandvd S 2S Qk &a 5f Cgo M e, �-' g nd.- f) ACTION ON CASE 9W OASWy "P re aa+e GfiZ-enc LOWIn1 bt ,IL 19Sii f M+Ton (1 614 ( lte Ill. REGULAR ITEMS IV. STAFF REPORTS a) Staff Update on City Projects. N4[[f I se - wavmd ro mo G( a) Approval of Minutes dated July 1, 2008 and August 5, 2008. VI. ADJOURNMENT ( �, ✓ q: MEMO August 27, 2008 TO: James Cowey, Chief Building Official Crystal Tort, Planning Assistant FRO Bob Hart, City Manager & Zoning Administrator RE: Interpretation of ordinance application for drilling permit submitted by Chesapeake Energy, Inc. Chesapeake Energy submitted an application to drill a series of wells (BOGI well site) between Sublett Road and Swiney -Hiett Road. Approximately four (4) structures are located within the 600' radius surrounding the proposed drill site. These structures appear to be used for storage or other ancillary uses to residences that are located outside the 600' radius. You requested an interpretation of the Oil and Gas Ordinance Section 17 -426 and specifically (c) (2) as to whether or not a waiver is required for the structures within the 600' radius of the proposed drill site. The section in question states: No drilling shall be permitted within six hundred (600) feet of any f residential structure or public building, institution, school, or a commercial building; provided however, that drilling shall be permitted as close as three hundred (300) feet if all affected property owners agree in writing. The issue I was asked to address is whether the term "residential structure" encompasses the four structures noted above for purposes of requiring a 600' separation. My analysis of the issue covers three areas: 1. Definition of structure in the ordinance, 2. The meaning of the term "residential structure," and 3. The intent of the City Council in adopting the ordinance. In the Kennedale Code of Ordinances, structure is defined as: Any building intended for shelter, occupancy, housing or enclosure for persons, animals, cattle or storage. "Residential" is embedded in the term "housing ". The ordinance reinforces a broad meaning to the term structure in several areas: Section 17 -426 (t): The following detail shall be included on all oil and gas development site plans: (9) Identify all wells, structures, equipment, pipelines, utilities, gates and fences, containment areas, fire lanes, .... Section 17- 426(o)(4) ... All production equipment on an operation site shall be painted and maintained at all times, including pumping units, storage tanks, buildings, and structures. Section 17 -426 (r) (5): Structures shall not be built over flow lines or gas gathering stations. In these contexts, the use of the term "structure" indicates a clear meaning to be inclusive to all structures. Moreover, in these sections, "structure" is not residential nor could it be considered as a synonym for a residential structure. In Section 17 -426 (c) (2) "residential structure" is used specifically but without a definition. The International Fire Code defines residential structure as "Residential (Group R) includes, among others, the use of a building or structure, or a portion thereof, for sleeping purposes..." Alternatively, structure is included in the IFC Miscellaneous Group as described as, "Buildings and structures of an accessory character and miscellaneous structures not classified in any specific occupancy shall be constructed, equipped and maintained to conform to the requirements of this code commensurate with the fire and life hazard incidental to their occupancy." The subsequent question is whether or not a storage structure that lies within the six hundred (600) feet radius of the drill site is incidental to or as an extension of a residential structure. While the definition of the term would not indicate so, it is imperative to examine the intent of the Council at its adoption. To determine the intent of the Council, I spoke with a member of the Council who served during its adoption and a member of the P &Z Commission who served during its deliberation and recommendation to Council. Both clearly indicated the intent to protect the lives of citizens, hence residential structure means dwelling unit. When I inquired about storage, both indicated the storage property could be replaced, but lives could not, which again is why a residential structure was used as opposed to the term structure. Consequently, in the permit application by Chesapeake for the drilling of four gas wells, it is my interpretation of the ordinance that a waiver is not required as part of its application. p aoa,x -p rsaxnaw O .oaat{7 O�� O eoa x e ou. P rx o 0000 I N PRODUCTION SITE PLAN 0 50 100 150 200 300 SCALE: V -100' U ID T T s r Z V , 8 sbm I L ^^ L vJ N l INSTALL ADJ �- AS GLAZE LANE a�aa..aa •V c aa) Y 2 / ., S "THICKTXDOTTYPE B FLEX BASE EMERGENCYACCESS ROAD I ', ... ,.. .',. : .;' . / / ,,. LL I NF��TH KNOX BOX INCLUDE ., '. / REFLECTIVE BARRICADE ATEND OF I STEEPLECHASE HASETRA IL I I ' 7 ., g I y� - -- I - 1 1 INSTALL IS WIDE ACCESS GATE, FOR PAD SITE DETAILS SEE i DRILLING AND PRODUCTION PLAN 1 f 1 , { i 1 BOGI a D QI / - / a E ,' / t j — T 1 � - - -- T 1 - y 43 � LIMITS 100-YR q4 ,FL000PLAIN � 3 \ � f SWINEY HErfT ROAD '• / i 1 i 1 p aoa,x -p rsaxnaw O .oaat{7 O�� O eoa x e ou. P rx o 0000 I N PRODUCTION SITE PLAN 0 50 100 150 200 300 SCALE: V -100' U ID T T s r Z V sbm I L ^^ L vJ N I..l_ O Y d a W Z LLI a O W W o O m a�aa..aa •V c aa) Y 2 U a- 00 z STRUCTURE IDENTIFICATION TABLE ID T T s sbm I ID s 1258 C —OakDr Kmnedeb I— t7 Fam Ham 1253BmModcOr Kmrede. T M 1258CmsCrwkor Kmreea. T t8 Fam F.ns 2538 Dr Kannada. we 1260 Cram Creek Dr Kameda. 19 230 Bmbac Dr Kmnedeb 1 1 Creak D, Knada. T Bm81aok Dr 1 Creek01 Kannada T Ttl Kannada. T 22 _.81nda F.IIY kan 400Sbeo.laaeTd Kannada. rasa M Bare Kannada. T Legend 300' Radius \ — — 600' Radius ' - - -- 1,000' Radius \ Pad Site Wellhead Location \ - - - - -- Sanitary Sewer Easement 1 Proposed Pipeline 1 1 — — Proposed Transportation Route ` 1 \ Notes: 1) Contour Lines were ganereled by the North ` Central Texas Coundl of Govammems. Contours are in 2 foot iMemis and mm generated in 2001. 2) R:odplam limits were generated from the FEMA Map Modemlmt[on Pmgmm (2007). 3) The truck mute will start at US 287 and take Sunbelt Road west and lure sou81 oMO Joplin Road The truck s will tore west onb Swlney HeIII Road and than north onto the site access mad. — ` 4) A Gentlingg and Erosion Control Plan am attached to meet tha erosion control measures in the ordinance. 5) There will be no open pits. The mud austere will be ' - remained In a closed -loop system wI steel tanks. i i I IV SECURED GATE WITH KNOX BOX / ' I sawac m .maa r / S' CHAIN LINK " FENCE I�� ' x�aa,aa �xa.a o o h' 44 :j DRILLING SrrE PLAN ❑ '� V CEDAR FENCE WITH / MASONRYCOLUMNS SPACED BETWEEN 15 AND 24 FEET - 1 3 / / 18' SECURED GATE WITH KNOX BOX i ANTICIPATED PRODUCTION _ EQUIPMENT DESIGN Legend 300' Radius \ — — 600' Radius ' - - -- 1,000' Radius \ Pad Site Wellhead Location \ - - - - -- Sanitary Sewer Easement 1 Proposed Pipeline 1 1 — — Proposed Transportation Route ` 1 \ Notes: 1) Contour Lines were ganereled by the North ` Central Texas Coundl of Govammems. Contours are in 2 foot iMemis and mm generated in 2001. 2) R:odplam limits were generated from the FEMA Map Modemlmt[on Pmgmm (2007). 3) The truck mute will start at US 287 and take Sunbelt Road west and lure sou81 oMO Joplin Road The truck s will tore west onb Swlney HeIII Road and than north onto the site access mad. — ` 4) A Gentlingg and Erosion Control Plan am attached to meet tha erosion control measures in the ordinance. 5) There will be no open pits. The mud austere will be ' - remained In a closed -loop system wI steel tanks. i i I IV SECURED GATE WITH KNOX BOX / ' I sawac m .maa r / S' CHAIN LINK " FENCE I�� ' x�aa,aa �xa.a o o h' 44 :j DRILLING SrrE PLAN ❑ '� V CEDAR FENCE WITH / MASONRYCOLUMNS SPACED BETWEEN 15 AND 24 FEET - 1 3 / / 18' SECURED GATE WITH KNOX BOX i ANTICIPATED PRODUCTION _ EQUIPMENT DESIGN onto the site access mad. — ` 4) A Gentlingg and Erosion Control Plan am attached to meet tha erosion control measures in the ordinance. 5) There will be no open pits. The mud austere will be ' - remained In a closed -loop system wI steel tanks. i i I IV SECURED GATE WITH KNOX BOX / ' I sawac m .maa r / S' CHAIN LINK " FENCE I�� ' x�aa,aa �xa.a o o h' 44 :j DRILLING SrrE PLAN ❑ '� V CEDAR FENCE WITH / MASONRYCOLUMNS SPACED BETWEEN 15 AND 24 FEET - 1 3 / / 18' SECURED GATE WITH KNOX BOX i ANTICIPATED PRODUCTION _ EQUIPMENT DESIGN