The City of Dallas Expro Engineering/ Trinity East The University of Dallas

Shale Gas Drilling Mineral Lease Relationship and the Cement Casing Failure of 2009

The City of Dallas becomes a lessor

-Includes The University of Dallas, and the State of Texas with Expro Engineering/Trinity East Energy as lessee.

Location
-329 acres on the The University of Dallas campus area.

May 2008
-First well, UD Well#lH is successfully drilled.

This well does not include The City of Dallas as lessor.

July 2009
-Second well drilling preparation begins at same site. This well is known as UD-Dallas Well #lH, The City of Dallas is listed among 5 lessors.

- BJServices is listed as the cement casing subcontractor

RAILROAD COMMISSION OF TEXAS Oil and Gas Division PO Box 12967 Austin, Texas 78711-2967 www.rrc.stste.tx.us
1. Field Name(s)

Revised 0512001
2. Lease/ID Number (if assigned) 3. RRC District Number

NEWARK, EAST (BARNETT SHALE)

4. Operator Name 5. Operator P-5 Number

05 257082
8. API Number

EXPRO ENGINEERING,
7. Pooled Unit Name

INC.

6.r::Jber
9. PiJ"rposeof Filing

UD-DALLAS GAS UNIT

10. County

( t3329.12

I -&4

[2]

Drilling Permit (W-1) Completion Report

11.Total acres in pooled unit

DALLAS
DESCRIPTION OF INDIVIDUAL

TRACTS CONTAINED

WITHIN THE POOLED

UNIT

TRACT/PLAT IDENTIFIER

TRACT NAME

ACRES

IN TRACT

INDICATE

UNDIVIDED

INTERESTS

(See inst. #7 below!

UNLEASED

NON-POOLED

UNIVERISTY 2 3 4 5

OF DALLAS

105.78 184.58 6.43 29.96 2.37

0 0

0 0 0 0 0 0 0 0

CITY OF DALLAS STATE OF TEXAS-GLO UNIVERISTY OF DALLAS, ET AL

0 0
0 0 0 0

STATE OF TEXAS-GLO

~
CERTIFICATION:

I declare under penalties prescribed pursuant to the Sec. 91.143, Texas Natural Resources Code, that I am authorized to make the foregoing stateme that he information provided by me or under my direction on this Certificate of Pooling Authority is true, correct, and co t b t Y knowledge

DENNIS W. BROWNING
Signature Print Name

VICE PRESIDENT
Title

bkn01 @hotmail.com
E-mail
(if avai/ab/e)

02/25/2009
Date

(817) 624-8425
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 checklnq 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

__

Of

_1

. ..
o

'(

RAILROAD COMMISSION OF TEXAS

~ Oil and Gas Division Compliance S.ection

DISTRICTOFFICE

NOTIFICATION FORM
JOB NO.

D-N
rev 03/00

2009-11539

DISTRlCT_.u.09z-- __ NOTIFICATION:"

IXIINDUSTRY 0
...:-

PUBLIC

IXICALL
DATE
_ PHONE

0
#

LETTER

OTHER

NAME KEN TRANSIER

TI'q.E/CO.'--

07/06/09 (318) 481-3868

TIME 08:11

OPERATOR

EXPROENGINEERING,INC. lID-DALlAS GAS UNIT .

257082

LEASEIID PLANT NO.

0
g]
678911

MUST WITNESS
TAKEN: BYSPARKSR DATE 07ffi6m9

LEASEIFACILITY

WELL NO.(S)_-'lLLHLFIELD

DRILL PMT.NO. PITPMT.NO. PIPELINE PMT.NO. _ _ OTHER LE DOCKET NO. SFPCODE SFCUCODE

NEWARK

COUNTY DALI.AS/'f

o
DATE

AUSTIN~

DISTRICT

o COMPLAINTNO.

RETURNBY:

COMPLAINANTNAME, PHONENUMBER ADDRESS _

0 0

BACKCHECK SWEEP

-------------------------------------------------------

DlRECIlONS FROM IRVING TX: TAKE 114NE.EXIT TOM BANISSDR. DRIVETHRU CLOSEDRD SECTION FOR .IM TO LOCATION. RIG ON RIGHT.

~~:-"'_C"""!;;g ::'=~~"C<,{' ::=~~'<';B J:B

B c, l)

0 ~,M'~EB ms:: F~~n.~::~.i.:O HJ.l?R~O~ sf!t0.::,~:._, ::" "R!O ~lTl!'I.s~~q~{:" _ 0 COM.DISPOSAL ~L:_ , ." 0 LEA~E INS:ECTI~N , . 9 0 PLANT INS
-0 ~ , .'",'~ , '. :....~.O MJTr <' ,:~
... ' ',' '. ' . ..,

;=:'[:~l
' "'--:':~

);'!>{~'.:i;:~',."YU S~ ~L.":
" .: z

0 SITE ASSMT (SFCU)

SlTE.q.~.UP(SFCU);

:B~'~~

,;,,0

PLUl."9JNG(OPE:R-) , ',_.'/

.M.. O

=~;c,'
--

",;B ~~::A~:,q,',','F, ':'6

-

::~="'J
-I

COMMENTS~;

---------------SPUD: 7/6/09 ----"i2r.i:20n10.=iFT~O~Fi;9"51m8"C"'ArcS;y;INu.Gr;-;;;TonnB;o;;EC;S;r.;E"'T----------------'T--\-1r=+~H=-...i.''::::.....,----------,-

~~~~O~~O~-------------------~~~~~-------------------K~~WmNGS~~G~-------------------------------------------------------------.......M:#137
GW:2='=1'='70:::FT=-----------------------PA'I'TEltSoN U,[I#208 --12.25>!-'----------_

-------------------------------

I
--

1 SCHEDULED DATE: 07/07/09 TIME: 18:00

FIELD INSPECTOR. Ifnat witnessed, check here, initial, date and return form to supervisor,

INITIALS' DATE:

_ _

RAILROAD
Cementer: Fill In shaded areas. Operator: FIJIin other items.

COMMISSION OF TEXA
FormW-15 Cementing Report Rev. 4/1183 483-045 RRC DiSOI

Oil and Gas Division

1. Operator's Name (As shown on Form P-S, Organization Report)

IExP'RO Engj.nee.ring;-rnc :---c

5. Field Name (Wildca. or exactly as shown on RRC records)

--

- --

Newark,
8. Lease Name

East

(Barnett

Shale)

r r'

RRC Operator No.

257082
API NO.

r
rD'

No.

4. County of Well Sight

..-

-~ ~

r42-113-30147
Rule 37 Case No. 011Lease/Gas 10 No.

Dallas
8. Drilling Permit No.

661267

r1.

Well No.
* ~

UD .Gas Unit

1-fI -

CASING CEMENTING DATA:

SURFACE CASING

INTER MEDIATE CASING

PRODUCTION CASING
Single Strinn Multiple
Pa",1I0. Slrinns

MULTI-$TAGE CEMENTING PROCESS

Tool SlIoe

13. -Drilled hole size EsL % wash or hole enlargement 14. Size of casing (in. 0.0.) 15. Top of liner (fL) 16. Setting deptll (fL) 17. Number of centralizers used 18. Hrs. Wailing on cement before drill-out

12.25 101 9 5/8 2211

25

Deeth .21.'a 13 (b) (~) (G) Excep+ion Dater

Surface Cas.ng

T.N.R.C C. LETTEl DATED ~ 7~dR

ft

24

D.V. @

22. Remarks

1.(35:65} Poz (Fly Ash) Class 'C' + 2% Calium Chloride + .25 Ib/sk Cello Flake + 6% Bentonite

2. Class 'C' + 2% Clcium Chloride + .25 Ib/sk Cello Flake

.
PLUG#6

CEMENTING

TO PLUG

AND ABANDON

PLUG #1

PLUG #2

PLUG #3

PLUG #4

PLUG #5

PLUG#6

PLUG#7

24. Size of hole or pipe plugged (in.) 25. Depth to boUom of tubing or drill pipe (ft.)
to

c:'.,

',:-'" ...
~r.' ,

',-

..

It'

/'''''<

;',"..::;./

~. :~'"

-.

. {'
'z,'-

"

.:

29. Measured top of plug, if tagged (ft.)

.. \'-' . >;..

."

!-',

-~. ,
:

. "~.'
"

:'= .

. '".. .~ .

'f

'0

,.'

CEMENTERS CERTIFICATE: declare under penalties prescribed In Sec. 91.143, Texas Natural Resources Code,that I I am authorized to make this certification, that the cementing of casing and/or the placing of cement plugs In this well as shown In the report was performed by me or under my supervision, and that the cementing data and facts presented on both sidell of this form are true, correct, and complete, to the best of my knowledge. This certification covers cementing data only. ~

Korr KeiferI Service Supervisor Name and title of cementer's representative

BJ SERVICES
Cementing Company SlglatUfEI

./

P.O. BOX 99iC'MliJERAL WELLS, TEXAS 76068

Address City, ';:'

t..\~

940-328-1221
Tel.: Area Code Number Date:

5/25/2008
Month Day Yr.

State,

ZIp Code

OPERATOR'SCERTIFICATE: declare under penalties prescribed In Sec. 91.143,Texas Natural Resources Code, that I I am authorized to make this certification, that I have knowledge of the well data and Information presented In this report, and that data and facts presented on both sides of this fOrmare true, correct, and complete, to the best of my knowledge. this certification covers aUwell data.

Typed or print

ame of operator's representative

jl'/7-6:;!. f'.... .?~$STel.: Area Code Number

Instructions to Form W-1S,Cementing Report

IMPORTANT: Operators and cementing companies must comply with the requirements of the Commission's Statewide Rules 8 (Water Protection), 13 (Casing, Cementing, Drilling,and CO!1lpletion), nd 14 (Well Plugging). For offshore operations, see the requirements of Rule 13 c. a A. Whatto file. An operator should file an original and one copy of the completed Form W-15for each cementing company used on a well. The cementing of different casing strings on a well by one cementing company may be reported on one form. Form W-1Sshould be filed with the followIng. An Initial 011 or gas completion report, W-2or G-1, as required by Statewide or special field rules; Form VV-4, Application for MultipleCompletion, if the well is a multiple parallel casing completion; and Form W-3,Plugging Record, unless the W-3 Is signed by the cementing company representatIve. When reporting dry holes, operators must complete Form W-15,in addition to Form W-3,to shoe any casing cemented In the hole.

B. Where to file. The appropriate Commission District Office for the county In whIch the well Is located. C. Surface casing. An operator must set and cement Sufficient surface casing to protect all usable.quallty water strata, as defined by the Texas Department of Water Resources, Austin. Before drilling a well In any field or area In which no field rules are In effect or In which surface casing requirements are not specified In the applicable rules, an operator must obtain a leUer from the D.partment of Water Resources stating the protection depth. Surface casing should not be set deeper than 200 feet below the specified depth without prior approval from the Commission. D. Centralizers. Surface casing must/be centralized at the store, above and below a stage collar or diverting tool, if run, and through usable.quallty water zones. In nondevlated holes, a centralizer must be placed every fourth Jolntfrom the cement shoe to the ground surface or to the bottom of the cellar. Allcentralizers must meet API specifications. E. Exceptions and alternative casing programs. The District Director may grant and exception to the requirements of Statewide Rule 13. In a written application, an operator must state the reason for the requested exception and outline an alternate program for casing and cementing through the protection depth for strata containing ussble.quallty water. The District Director may approve, modify, or reject a proposed program. An operator must obtain approval of any exception before beginning casing and cementing operations. F. Intermediate and production casing. For specific technical requirements, operators should consult Statewide Rule 13 (b) (3) and (4). G. Plugging ami abandoning. Cement plugs must be placed In the wellbore as required Statewide Rule 14. The District Director may require additional cement plugs. For onshore or Inland wells, a 10-foot cement plug must be placed In the top of the well, and the casing must be cut off three feet below the ground surface. Allcement plugs, except the top plug, must have sufficient slurry volume to filii 00 feet of hole, plus ten percent for each 1,000 feet of depth from the ground surface to the bottom ofthe plug. To plug and abandon a well, operators must use only cementers approved by the Director of Field Operations. Cementing companies, service companies, or operators can qualify as approved cementers by demonstating that they are able to mix and pump cement In compliance with Commission rules and regulations.

'~A:Y:f4;2~~8 18:23 From:

'RAILROAD COMMISSION OF TXAS

JOD t=rOOOCZ5- q l195

NOTIFICATION
(WATERPRQTECTION

1\

To:99039833413

QilllIld Gas Dlvislon Con,wlian'ic 1l,ccLion

FORM FOR
STRING)
CALL
DATE

D-N

.Y.REAC,J; ..c'.A$.RN.Q
INDUSTRY SHANE BELL ~
PU13LlC

NOTIFICAT10N;

(8J
;5/24/2()OR

LETTER TIMB

'0
I-

PERSON
TIiLE/CO

CALLING

3:41 PM

I
I-

DRILLING CON ST.

PHONE

940-456-2536

0-tpYD ~
opeRATOR LEASEIFACTUTY UD
IH

1y\.1l

\II' ~

InC .
PERMIT NO.G6 J 267

i
I
I

~IONEEXPLORA'II()N'

!
I
I'
I

I ,

WELL NO.
FIELD

OTHERAMANDA

" J:

I.

NEW ARK EAST BARNETT SHALE DALLAS

()RIG\N~d
Do not exceed 5 lines of data

COUNTY

1;
I'

DRIVlNG DIRECTIONS TO WELLSITE FROM NEAREST TOWN:

FROM IRVING HJGHWA Y 114, HEAS EAST TO DALLAS, EXIT ON TOM BRANIFF DR., AT RED LrGHT,
TAKE A LEFT, CROSS OVER 114, APPROX.
RlGHT

rI
I"
1\ 11.,:

1/10 OF MILE IN THE RlGHT HAND LAND RIG IS ON THE

1_________________________________________________________________________
PI,EASE CHECK APPROPRIATE JOB: SCHEDULDD DATE FOR CEMENTING 5/24/01.{ ,01': 95/8 LEAD: BJ SERVICES
103

,I~

!'

,I
TIME OF JOB: lOPM

"I
I

HOW MANY FEET:

2250

CASING TO BE SET TAIL:

HOW MANY SACKS OF CEMENT:

225

590

I' I

NAME OF CEMENT COMPANY

SC# ON TNRCC FORM (AT TOP RIGIIT OF FORI v!) DEPTH OF USABLE QUALITY SPUD DATE -, NAME OF DRILLING C0NTRACTOR: DV

I
2150 FT

GROUND WATER TO BE PROTECTED ON TNRCC FORM

MOUNT ATN DRILLING OPEN HOLE SIZE: 11

R1GNO.

roor.

YES

February 27, 2009

- Expro Engineering/Trinity East Energy letter to

Texas Railroad Commission Kilgore Regional Office - Letter advises Commission that the UD Well #lH is "closed in" after successful drilling. - Letter tells Commission that Expro Engineering/Trinity East Energy is currently waiting on construction of a pipeline and production facility before moving forward with future drilling.

..

February 27, 2009

Mr. Michel G. O'Quinn Railroad Commission of Texas Oil & Gas Division-District 05 619 Henderson Boulevard Kilgore, Texas 75662-7284

RE:

JOB #2009-09-1816 UD LEASE, WELL NO. 1-H PERMIT NO. 661267 NEWARK FIELD, DALLAS COUNTY, TEXAS

Dear Mr. O'Quinn: In response to your letter of January ao", EXPRO ENGINEERING, INC. is filing, for record only Form G-1 and related attachments. Enclosed are the original and duplicate of the G1s, W-12 Inclination Report, W-15 Cementing Reports and Form L-1. A copy of your letter is also enclosed for reference. The subject well is currently closed in waiting on a gas pipeline prior to stimulation and .construction of a production facility. We believe this submittal will bring the subject well into compliance with your office. If you require additional information or should there be any outstanding document(s), please contact us. Thank you for your attention to this matter.

IS W. Browning 817-349-7025 direct 817-437-5007 cell dwbrowning@exproeng.com

DWB/db Cc: file.

July 2009
- Well bore is drilled for UD-Dallas Well #lH -Cement casing fails in early July 2009 -Documents detailing casing failure event are not made available.

February 1, 2010
- Letter from Expro Engineering/Trinity East Energy to Texas Railroad Commission Kilgore Regional Office confirms that the casing had "parted" at an earlier date in 2009. - Letter states that a lot of money and time is spent in attempts to repair but ultimately fail.

<

, ," ,

,~

h-t
EXPRO ENGINEERING
Dft.CltA.nctI

!!:!.

1..

HODUC11OM

CCHSULTAHTS

Carter Burgess Plaza 777 Main Street, Suite 3100 Fort Worth, Texas 76102 5325
M

8178248425 Office 817-624'2507 Fax

February 1,2010

Railroad Commission of Texas 619 Henderson Blvd Kilgore, TX 75662 Attention: Micha~l G. O'Quinn RE: Job # 2010M09-873 UD-Dallas Gas Unit Permit No. 678911 Well No.l-H Newark Field Dallas County, Texas Dear Mr. O'Quinn: Enclosed is Form G-1 for record only. While fracing, the casing parted at approximately 2800' from surface. We spent considerable time and money trying to correct this problem. The workover rig was moved off on January 5th, and a 5000 psi tree was installed. We expect to move back on and make another attempt to complete this well at some time in the future. Also enclosed are Form W-15s for the surface and production casing strings, and also for the cement plug at 7600'-8000' . Sincerely,

R.~.C. Or \ t;:.

~E.CE~VJJ>)(AS ~ 03

fEB
JE/js Enclosures

20'"

Jerry Eskew

on, & GAS D\V\S\ON

KILGORE, TEXAS

'.'

April 30, 2010

- Expro Engineering/Trinity

East Energy sends letter to

Texas Railroad Commission Wichita Falls Regional Office telling the Commission that UD-Dallas Well #lH had mechanical difficulties and that as a result, there could be litigation problems.

C\t>

~..

;,

.h-t
EXPRO ENGINEERING
UPl.O!tA11QM

1.. '!L Carter Burgess Plaza 777 Main Street, Suite 3100 Fort Worth, Texas 76102-5325 817-624-B,t?5 ow"" 817-6242507 Fax

-- .

!!!S!.:.

rtkQDUC110M

cotQULTNtr$

April 3D, 2010

Railroad Commission of Texas Oil & Gas Division-District 09 5800 KELL WEST BLVD., SUITE 300 WICHITA FALLS, TEXAS 76310

RE:

UD-DALLAS GAS UNIT WELL NO. 2-H API NO. 42-113-30147; RRC 10 NO. 249600 UD-DALLAS GAS UNIT WELL NO. 1-H API NO. 42-113-30189, RRC ID NO. 254444 NEWARK, EAST (BARNETT SHALE) FIELD DALLAS COUNTY, TEXAS

-\

To Whom It May concem... ..

, ~ - _-~----_

----=

,_~'-_~__

..

'.'

-r-r+r

-:"

EXPRO ENGINE~RING, INC. is filing, for record only the enclosed Form G-1, P-12 and P-12 Plat for the UD-Dallas GU No. 2H. A P-12 and P-12 Plat are also being filed for the UDDallas GU NO.1-H. The UD-Dallas Gas Unit No. 2-H well was originally permitted as the UD Gas Unit No. 1H (API 42-113-30147). A second well, the UD-Dallas GU No. 1-H (API No. 42-11330189) was drilled 500' north of the UD Gas Unit No, 1H well (API No. 42-113-30147) on the UDDallas Gas Unit. Simul-frac operations were initiated and the UD-Dallas GU No. 1-H (API 42113-30189) experienced mechanical difficulties and may require plugging. Due te Qotential litigation resulting from failure to protect against offset drainage, we are consolidating the two units, creating t e one tJD-Oallas Gas tJriit. :fhe enclosea aocl1rnents were prepared after a detailed discussion with Pam Thompson of the TxRRC. The UD Gas Unit No. 1H well (API No. 42-113-30~7) is being renamedJhe UD-D~as Gas Onit No. 2H,. If you require additional information or should there be any outstanding document(s), please contact us. Thank you for your attention to this matter.

RECEIVED

RRC. OF TEXAS

MAY -4 2010
Dennis W. Browning . 817-349-7025 direct 817-437-5007 cell dwbrowning@exproeng.com OWB/db Cc: file

OIL & GAS DIVISION W!CHIT1~ F,t\LLS, TEXAS

('

,,'

----------

.,.~ ........

May 2010
-New combined leases with UD Well #lH is now known as UD-Dallas Gas Unit Well #2H with 26 lease holders on 633 acres at The University of Dallas campus area. - Lease holders for the newly created well now known as UD-Dallas Gas Unit Well #2H include The City of Dallas, The City of Irving, The Irving Flood Control District and others.

"

RAILROAD COMMISSION OF TEXAS Oil and Gas Division PO Box 12967 Austin, Texas 78711-2967 www.rrc.state.tx.us
1. FieldName(s)

CERTIFICATE OF POOLING AUTHORITY

Revised 0512001
2. LeaseliDNumber(rt assigned)

P-12
3. RRCDistnctNumber

NEWARK,

EAST

(BARNETT

SHALE)

249600 5. Operator P-5Number

09
6. Well Number

4. OperatorName

EXPRO

ENGINEERING,

INC.

257082
8. API Number

2H
9. Purposeof Filing

7. PooledUmtName UD-DALLAS
10. County

GAS UNIT

42-113-30147 11.Totalacresin pooledunit 633.72

DrillingPermit(W-1) Completion Report

DALLAS DESCRIPTION OF INDIVIDUAL

TRACTS CONTAINED

WITHIN THE POOLED

UNIT

TRACT/PLAT IDENTIFIER

TRACT NAME T Majestic, Ine et al

ACRESINTRACT (See inst. #7 below) 17.29000 8.07853 1.33510 6.36351 Land Ltd Prt 1.17570 1.69260 Ine 14.29670 2.865470 33.17350 6.81560

INDICATE UNDMDEDINTERESTS UNLEASED NON-POOLED

0
0

0 0 0

2 3

City of Irving et al City of Irving DCURD Hines etal Las Colinas et al

n
0 0

4
5

n
0

6
7 8

United

States

Post Office Holding et al

0
0

0
0

Riverside

Commons

Inez Bloomingdale City of Irving DCURD etal

9
10 CERTIFICATION:

et al

RE.CE\\1EO c Or -rr::.'1bRRli ' .

0
0

0
0 0

\w(~,
O\\..
l--..\~

~ ~ 2.\) 1\)\\\

~~&~t, '0<

, O\\j\S\U\"t

I declare under penalties pre cribed pursuant to the Sec. 91.143, Texas Natural Resources Code, that I am authorized to make the foregoing stateme nd th t the information provided by me or under my direction on this Certificate of Pooling Authority is true, correct, and pIe f my knowledge.
Dennis Signat Vice President Title bkn01@hotmail.eom E-mail
(of avadable)

W. Browning

Print Name

04/30/2010
Date

(817) 624-8425 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 witl1in an individual tract, a non-pooled and/or unleased interest exists, indicate by checking the appropriate box. REC~ED 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 CelR& 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 tI1e 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 __ _'-: ~.:.o:t J ~.2'l.~f.i'l~ , ...

gSi$EXAS

MAY 252010 OIL & GAS DMSION

of

AUSTIN, TX _

.
RAILROAD COMMISSION OF TEXAS Oil and Gas Division PO Box 12967 Austin, Texas 78711-2967 www.rrc.state.tx.us 1. Field Name(s)
f '

CERTIFICATE OF POOLING AUTHORITY

Revised 0512001
2. LeasellD Number {If aSSIgned}

P-12
3. RRC District Number

NEWARK, EAST (BARNETT SHALE)

4 Operator Name

249600
5. Operator P-5 Number

09
6. Well Number

EXPRO ENGINEERING,
7 Pooled Unit Name

INC.

257082
8. API Number

2H
9 Purpose of Filing

UD-DALLAS GAS UNIT

10. County

42-113-30147
11.Total acres In pooled unit

0
[2]

Dnlling Permit (W-1) Completion Report

DALLAS

633.72

DESCRIPTION OF INDIVIDUAL TRACTS CONTAINED WITHIN THE POOLED UNIT

TRACT/PLAT IDENTIFIER

TRACT NAME

ACRES IN TRACT (See inst #7 be/owl

INDICATE UNDIVIDED INTERESTS UNLEASED NON-POOLED

11 12 13 14 15 16 17 18 19 20
CERTIFICATION:

City of Dallas et al City of Irving et al DCURDetal Art Lake Chateau et al T Majestic, Inc

RECEIVED 0- =eS;=,/J\C' RKC f I' .

66.36706 4.82600 13.69320 9.12740 4.00680 1.31000 1.84050 10.94520 62.00000 39.03300

0 0 0

n
0

i-'~'! Q 'LUlU Z
OlL & ...,t"\0 ~VI~JON K\LGOke, 1';.

0
0

0 0
0

n
0 0

Luminant Mineral Dev Co LLC Hines Las Colinas Land Ltd Partn DART & Ft Worth Trans Authority City of Dallas et al Las Colinas Investment Prop Ltd

0 0 0 0

n
0

I declare under penalties prescribe pursuant to the Sec. 91.143, Texas Natural Resources Code, that I am authorized to make the foregoing statement that the' formation provided by me or under my direction on this Certificate of Pooling Authority is true, correct, and co e to y knowledge. Dennis W. Browning
Print Name

bkn01@hotmail.com
E-mail
(If available)

04/30/2010
Date

(817) 624-8425
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 refonn 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 thAAEiifi~ p~XAS 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 dnll 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.

REC~IVED

HAY 25,2010
p

OIL & GAS DMSION 2 AYSTIN TX Page __ of _

RAILROAD COMMISSION OF TEXAS Oil and Gas Division PO Box 12967 Austin, Texas 78711-2967 www.rro.state.tx.us 1 F,.eldName(s)

CERTIFICATE OF POOLING AUTHORITY

Revised 0512001 2 Lease/ID Number (If aSSigned)

P-12
3. RRC District Number

NEWARK, EAST (BARNETT SHALE)

4. Operator Name

249600
5. Operator P-5 Number

09
6. Well Number

EXPRO ENGINEERING,
7. Pooled Unit Name

INC.

257082
8. API Number

2H
9. Purpose of Rling

UD-DALLAS GAS UNIT

10. County

42-113-30147
11.Total acres in pooled urut

0
12]

Drilling Perrmt (W-1) Completion Report

DALLAS
DESCRIPTION OF INDIVIDUAL TRACTS

633.72
CONTAINED

WITHIN THE POOLED

UNIT

TRACT/PLAT IDENTIFIER

TRACT NAME

ACRES IN TRACT (See inst #7 below)

INDICATE UNDIVIDED INTERESTS UNLEASED NON-POOLED

21 22 23 *24 25 26

University of Dallas et al State of Texas - GLO et al City of Dallas et al University of Dallas et al Irving Flood Control District University of Dallas et al

82.02180 12.70259 43.29251 145.68295 3.59180 35.86175

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0
0

RRC O-T-v"P f

RECEIVED

f'~~'{ 2mn 2.0

OIL & (;It'd DIVISION KlLGOr.., TI(

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 statem d that th information provided by me or under my direction on this Certificate of Pooling Authority is true, correct, and c lete my knowledge. Dennis W. Browning
Signatur Print Name

Vice President
Title

bkn01@hotmail.com
E-mail
(If avaIlable)

04/30/2010
Date

(817) 624-8425
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 theRRG~eiiiiXAS 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. GAS

RECEIVED

MAY 25.2010
DMSION

OIL &
of

3 Page __

~SllNp TIC _

.:l.;~)' f@):~n~ ..

Production Report
- Production report for UD-Dallas Gas Unit Well #2H shows small amount of shale gas being produced and eventually dropping to "0". - Texas Railroad Commission letter to Expro Engineering Trinity East Energy confirms confidentiality term is ending. Company/lease name section confirms that The
University of Dallas pad site is with Expro Engineering/ Trinity East Energy.

Search Criteria: Lease Name: UD-DALLAS GU, Lease No.: 249600, Well No.: 2H Well Type: Gas District: 09 Lease Production and Disposition Date Range: Dec 2011 - Nov 2012 GW Gas (MCF) Date Dec 2011 Jan 2012 Feb 2012 Mar 2012 Apr2012 May 2012 Jun 2012 Jul2012 Aug 2012 Sep 2012 Oct 2012 Nov 2012 Total NO RPT 103390 Production 16,759 11,788 14,534 15,900 14,026 11,131 8,587 10,620 35 0 10 NO RPT 103390 Disposition 16,759 11,788 14,534 15,900 14,026 11,131 8,587 10,620 35 0 10 NO RPT 0 Condensate (BBL Production 0 0 0 0 0 0 0 0 0 0 0 NO RPT 0 Disposition Operator Nai Operator r Field N; Field No.

o
0 0 0 0 0 0 0 0 0 0

EXPROENGII

257082 NEWAR 65280200

ELIZABETH AMES JONES, CHAIRMAN DAVID PORTER, COMMISSIONER

GIL BUJANO, P.E. DEPUTY DIRECTOR, O&G DIVISION

1701 N. CONGRESS

CAPITOL STATION P.O. BOX 12967 AUSTIN, TEXAS 787112967

August

1, 2011 DIST: 09 DALLAS API NO. 113-30147 UD GAS UNIT WELL NO. 2H EXPRO ENGINEERING, INC. NEWARK, EAST (BARNETT SHALE) RRCID NO. 249600

---- --- --- ------~-Dear Operator: The final period of confidentiality for the log on the above property is due to expire aD the end of this month. Under the provisions of Statewide Rule 16, the log must be submit~ed to the Railroad Commission by the expiration date. Failure to Q0 so will result in your allowable being cancelled and/or penalty action pursuant to Title 3 of the Texas Natural Resource Code. Please complete the bottom portion of this letter and return this letter with the log to the above address to the attention of Central Records. If you have any questions, contact Mike Partridge at (512) 463-1825 or Mike.Partridge@rrc.state.tx.us.

MIKE PARTRIDGE ADMINISTRATION DIVISION

~~:

.....---.--- ....-.~-

THIS LETTER WITH THE LOG from Log Interval(s): to from

JDO 13

Company/lease name if different from that above:

On-Shore Final Exp.

An Equal Opportunity Employer (TDD 1-800-735-2989 or TDY 512-463-7284) http://www.rrc.state.tx.us

Questions
1. When was the Dallas City Council informed of this specific mineral lease with Expro Engineering/Trinity East Energy and The City of Dallas? 2. Why didn't this mineral lease arrangment between The City of Dallas and Expro Engineering/Trinity East Energy require a vote of approval by Council? 3. Why was the UD Gas Well #lH combined with UD-Dallas Well #lH to create a new and larger well now known as UD-Dallas Gas Unit Well #2H? 4. What is the total of royalty payments to The City of Dallas under this mineral lease agreement? 5. What do we know about the cement casing failure event in 2009? 6. What amount of contamination occurred above ground, below ground at this location in July 2009? Was testing conducted? 7. Has this area been tested since 2009 for any present or future contamination? 8. Is the production facility mentioned in the letter of February 27,2009 tied to the current proposal to build a gas production facility at Luna Vista which is just North of The University of Dallas pad site? 9. If allowed, would this gas production facility create a shale gas production terminal complex at Luna Vista, next door to the Elm Fork Soccer Complex, and adjacent to City of Irving residents, schools, and businesses? 10. Why did Atmos Energy construct the gathering pipeline which is built to connect to a pipeline highway that could reach the Luna Vista gas production facility?

11. Where is the mineral lease paperwork between The City of Dallas and Expro Engineering/Trinity East Energy that would show the length of time for the lease, pipeline property usage and other details? 12. Are there plans for Expro Engineering/Trinity East Energy to connect the University of Dallas pad site via a pipelines to other pad sites in Grand Prairie, Farmers Branch, and Irving to create a larger network?

13. Why were two different Texas Railroad Commission Offices being contacted about one pad site? Would this lead to confusion for Railroad Commission concerning casing failure event and the integrity of pad site operations?