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Agenda 09/24/2013 Item #10F 9/24/2013 10.F. EXECUTIVE SUMMARY Recommendation to have staff prepared to respond to citizen inquiries related to the anticipated issuance of an Oil Exploration Permit for operations adjacent to Golden Gate Estates by the Florida Department of Environmental Protection. Preparation should include but not be limited to a review of permit stipulations and safety elements, evaluation of potential impacts to County infrastructure, and most importantly, evaluation of needed preparation to insure adequate disaster readiness and coordination of emergency management and first responder agencies. Further directing staff to bring an assessment and recommendation back to the BCC at the October 8, 2013 board meeting, (or the first board meeting following DEP action) for possible BCC action. OBJECTIVE: To have staff prepared to respond in a timely manner to citizen inquiries related to the anticipated issuance of an Oil Exploration Permit by the Florida Department of Environmental Protection, to identify potential impacts to County infrastructure, and to initiate planning for appropriate emergency response coordination to insure the health, safety, and welfare of citizens. CONSIDERATIONS: There has been a substantial list of concerns and inquiries from citizens living in Golden Gate Estates in the vicinity of 24th Ave NE adjacent to nearby lands where an Oil Well has been proposed and an Oil Exploration Permit has been applied for at FDEP. The citizen's initial encounter related to the potential Oil Well was a safety/disaster preparedness related letter from the applicant's permitting consultant that sparked fear and anxiety among recipients and nearby residents. Several public information meetings have been held, and printed material distributed, to provide factual information and address concerns of the citizen. Concerns of residents in the area of the project still exist, and efforts to resolve issues pertaining to potential Oil Well Drilling operations between the property owner Collier Resources, the drilling contractor Dan A. Hughes Co., and neighboring residential property owners have yet to result in mutual satisfaction. The Florida Department of Environmental Protection has indicated that they will act on the Oil Well Exploration Permit submitted by Dan A. Hughes Co. on or about September 30, 2013 or soon thereafter. If the permit is approved, there will be a final twenty-one day comment period prior to issuance of the permit. Should the permit be approved the process and procedures for the proposed project should be promptly reviewed and evaluated by staff, first and foremost to identify potential health, safety, and welfare threats to citizens, and additionally to identify potential impacts to Collier County infrastructure. FISCAL IMPACT: None LEGAL CONSIDERATIONS: None GROWTH MANAGEMENT IMPACT: None Packet Page-225- 9/24/2013 10.F. RECOMMENDATION: To have staff prepared to respond to citizen inquiries related to the anticipated issuance of an Oil Exploration Permit for operations adjacent to Golden Gate Estates by the Florida Department of Environmental Protection. Preparation should include but not be limited to a review of permit stipulations and safety elements, evaluation of potential impacts to County infrastructure, and, most importantly, evaluation of needed preparation to insure adequate disaster readiness and coordination of emergency management and first responder agencies. Further directing staff to bring an assessment and recommendation back to the BCC at the October 8, 2013 board meeting, (or the first board meeting following DEP action) for possible BCC action. PREPARED BY: Commissioner Tim Nance AGENDA DATE: September 24, 2013 Attachments: Collier 22-3H Drilling Application for FDEP Permit No. 1353 Packet Page-226- 9/24/2013 10.F. COLLIER COUNTY Board of County Commissioners Item Number: 10.10.F. Item Summary: Recommendation to have staff prepared to respond to citizen inquiries related to the anticipated issuance of an Oil Exploration Permit for operations adjacent to Golden Gate Estates by the Florida Department of Environmental Protection. Preparation should include but not be limited to a review of permit stipulations and safety elements, evaluation of potential impacts to County infrastructure, and most importantly, evaluation of needed preparation to insure adequate disaster readiness and coordination of emergency management and first responder agencies. Further directing staff to bring an assessment and recommendation back to the BCC at the October 8, 2013 board meeting, (or the first board meeting following DEP action)for possible BCC action. (Commissioner Nance) Meeting Date: 9/24/2013 Prepared By Name: FlanaganJim Title: VALUE MISSING 9/18/2013 10:44:46 AM Submitted by Title: VALUE MISSING Name: FlanaganJim 9/18/2013 10:44:47 AM Approved By Name: MarcellaJeanne Title: Executive Secretary,Transportation Planning Date: 9/18/2013 3:49:31 PM Name: KlatzkowJeff Title: County Attorney Date: 9/18/2013 4:07:04 PM Name: KlatzkowJeff Packet Page -227- 9/24/2013 10.F. Title: County Attorney Date: 9/18/2013 4:55:33 PM Name: FinnEd Title: Senior Budget Analyst, OMB Date: 9/18/2013 4:55:42 PM Name: OchsLeo Title: County Manager Date: 9/18/2013 5:45:09 PM Packet Page-228- 9/24/2013 10.F. COLLIER 22-3H DRILLING PERMIT APPLICATION FOR FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION PERMIT NO. 1353 May 2013 Prepared For: Dan A. Hughes Company,L.P. P.O. Drawer 669 Beeville, Texas 78104 (361) 358-3752 Prepared By: Passarella &Associates,Inc. Schlumberger° Water Services USA,Inc. 13620 Metropolis Avenue, Suite 200 1567 Hayley Lane, Suite 202 Fort Myers, Florida 33912 Fort Myers, Florida 33907 (239) 274-0067 (239) 481-6494 Project No. 12CRC2139 Packet Page-229- 9/24/2013 10.F. TABLE OF CONTENTS Page 1.0 Introduction 1 2.0 Confidentiality 1 3.0 Operator 1 4.0 Agent/Consultants 1 5.0 Well Information 2 5.1 Well Name 2 5.2 Primary Geological Objective 2 5.3 Surface Location 2 5.4 Location Plat 2 6.0 Environmental 2 6.1 Stormwater 2 6.2 Water Supply 2 6.3 Wetlands and Wildlife 3 6.4 Site Environmental Management 3 6.5 Hydrogen Sulfide Contingency Plan 3 6.6 Gathering Lines and Pipeline 3 6.7 Housing and Personnel 3 7.0 Bottom Hole Location 3 8.0 Drilling Rig and Equipment 4 9.0 Drilling Operations 4 10.0 Proposed Drilling Program 4 Packet Page -230- 9/24/2013 10.F. Table of Contents (Continued) Page 10.1 Casing and Cementing Program 4 10.2 Well Control Equipment 4 10.3 Directional Drilling Program 5 10.4 Drilling Fluids Program 5 11.0 Financial Security 5 ii Packet Page-231- 9/24/2013 10.F. LIST OF EXHIBITS Page Exhibit 1. FDEP Application for Permit to Drill (Form 3) El-1 Exhibit 2. Certification to Transact Business in Florida E2-1 Exhibit 3. Organization Report Form (Form 1) E3-1 Exhibit 4. Lease Agreement E4-1 Exhibit 5. Agent Authorization Letters E5-1 Exhibit 6. Well Location Plat E6-1 Exhibit 7. Location Map E7-1 , Exhibit 8. Sketch of Pad Layout E8-1 Exhibit 9. Aerial with Pad Layout E9-1 Exhibit 10. Aerial with Access Route E10-1 Exhibit 11. Hydrogen Sulfide Contingency Plan E11-1 Exhibit 12. Precision Drilling Rig 314 Information E12-1 Exhibit 13. Proposed Drilling Program E13-1 Exhibit 14. Casing and Cementing Program E14-1 Exhibit 15. Wellbore Schematic E15-1 Packet Page-232- 9/24/2013 10.F. List of Exhibits (Continued) Page Exhibit 16. Well Control Plan E16-1 Exhibit 17. Directional Drilling Program Ell-1 Exhibit 18. Drilling Fluids Program El 8-1 Exhibit 19. Rider to Performance Bond for Multiple Wells E19-1 iv Packet Page-233- 9/24/2013 10.F. 1.0 INTRODUCTION The following information has been prepared to address the specific requirements of Chapter 62C-26.003 of the Florida Administrative Code (F.A.C.) for a Florida Department of Environmental Protection (FDEP) Application for Permit to Drill for Collier 22-3H (Well) (Permit No. 1353). The signed FDEP permit application (Form 3) is included as Exhibit 1 and the following information represents the required items of the permit application. 2.0 CONFIDENTIALITY All information regarding the Well other than the supplemental documents supplied for the permit application within this document are to be held confidential as provided by statute and rule. The information that is requested to be held confidential should include but not be limited to: drilling reports, test results, well logging information, production reports, and any geologic interpretations relative to the Well submitted by the applicant/permittee. 3.0 OPERATOR The operator and permit applicant for this Well is Dan A. Hughes Company, L.P., whose address is: Dan A. Hughes Company, L.P. 208 E. Houston Beeville, Texas 78102 The Dan A. Hughes Company is a Texas limited partnership registered to transact business in the State of Florida. Their certification to conduct business in Florida is included as Exhibit 2. The Organization Report Form (Form 1) for the Dan A. Hughes Company is provided as Exhibit 3. Dan A. Hughes Company will lease the project area from the Collier Resources Company, LLP. A Memorandum of Oil, Gas, and Mineral Lease is provided as Exhibit 4. 4.0 AGENT/CONSULTANTS Passarella & Associates, Inc. and Schlumberger Water Services USA, Inc. have been authorized to act as agents on behalf of the Dan A. Hughes Company. Agent authorization letters are provided as Exhibit 5. 1 Packet Page-234- 9/24/2013 10.F. 5.0 WELL INFORMATION 5.1 Well Name The Well name is Collier 22-3H (FDEP Permit No. 1353). 5.2 Primary Geological Objective The primary geologic objective of Collier 22-3H is the rubble zone of the Lower Sunniland Formation. The proposed depth of the pilot hole is 13,900 feet MD/13,900 feet TVD, which will allow assessment of the upper Sunniland Formation, Lower Sunniland Formation, and Pumpkin Bay Formation. If the evaluation determines that the Well will likely be commercial, it will be completed with the horizontal leg in the Lower Sunniland rubble zone with a landing depth at 12,500 feet MD/12,064 feet TVD and a final total depth of 16,600 feet MD/12,064 feet TVD. The Well location plat is provided as Exhibit 6. 5.3 Surface Location The drilling site is located on agricultural lands within the Camp Keais Strand Agricultural Development owned by Collier Enterprises Management, Inc. The site is located in Section 22, Township 49 South, Range 28 East, Collier County (Exhibit 7). A sketch of the pad layout and an aerial photograph with the layout of the pad is provided as Exhibits 8 and 9, respectively. Access to the Well pad will be from Desoto Boulevard in Golden Gate Estates, east on 24th Street SE, and across the south end of an agricultural field where the Well pad is to be located (Exhibit 10). 5.4 Location Plat The Well location plat has been prepared by Pickett & Associates, Inc. and is provided as Exhibit 6. The drilling unit boundary is included on the plat. 6.0 ENVIRONMENTAL 6.1 Stormwater The Well pad will be constructed with a two foot earth berm around the perimeter of the operating area to contain all water on the site. 6.2 Water Supply An industrial water use permit application for groundwater withdrawals associated with the drilling operations was submitted to the South Florida Water Management District (SFWMD) on March 25, 2013 and assigned SFWMD Application No. 130325-12. 2 Packet Page-235- 9/24/2013 10.F. 6.3 Wetlands and Wildlife The Well pad is located within a farm field that is part of the Camp Keais Strand Agricultural Development. The field is currently used for cattle grazing. Access to the Well pad will be from Desoto Boulevard in Golden Gate Estates, then east on 24th Street SE, and across the south end of the field where the Well is to be located. No wetlands or other surface waters will be impacted by construction of the Well pad or access to the drilling site. The Well location does not contain habitat for federal or state listed wildlife species. As previously mentioned, the field is used for active cattle grazing. No listed species have been observed on-site. 6.4 Site Environmental Management The drilling location will have secondary containment areas for oils, grease, and other fluids. The secondary containment areas will be covered with a high-density polyethylene liner system that will collect all rainwater and other fluids to a sump. The areas included will be the rig substructure and the generator/fuel tank area. The containment berm around the fuel tanks will retain 1.5 times the stored volume. 6.5 Hydrogen Sulfide Contingency Plan In accordance with Chapter 62C-27.001(7), F.A.C., a hydrogen sulfide gas (H2S) contingency plan prepared by Total Safety is provided as Exhibit 11. The H2S contingency plan will go into effect at 10,500 feet, which is over 1,000 feet before the top of the expected or unknown hazardous H2S zone. 6.6 Gathering Lines and Pipeline Collier 22-3H is an exploratory well. There are no plans yet for gathering lines and pipeline. 6.7 Housing and Personnel The majority of drilling personnel will be housed off-site. Some of the drilling personnel will be housed in temporary trailers located within the pad. All wastewater will be contained in storage tanks and removed from the site by a waste contractor. Drinking water will be supplied by a bottled water contractor. An office trailer with living quarters will be located on the pad for the drilling supervisor and rig manager. 7.0 BOTTOM HOLE LOCATION The proposed bottom hole location is 1,017 feet FNL and 543 feet FEL at Latitude 26°10'46.664" North and Longitude 81°29'31.846" West in Section 27, Township 49 South, Range 28 East, Collier County, Florida (Exhibit 6). 3 Packet Page-236- 9/24/2013 10.F. 8.0 DRILLING RIG AND EQUIPMENT The drilling rig to be used for the Well is Precision Drilling Rig 314 or equivalent depending upon availability. Detailed information regarding Rig 314 is provided as Exhibit 12. 9.0 DRILLING OPERATIONS The operations will be underway 24 hours a day for approximately 60 to 80 days of drilling and testing. There will be a crew of 12 to 18 persons on-site during this time. The majority of drilling personnel will be housed off-site. Some of the drilling personnel will be housed on-site in temporary trailers. Electricity will be provided by diesel generator sets. Sanitary waste will be collected in holding tanks and removed by a local contractor. Solid waste will be placed in containers and hauled to a MSW landfill. Drill cuttings and drilling fluids will be disposed of in a manner approved by the FDEP. Water for drilling will be supplied by on-site wells located at the northwest and southeast corners of the drilling pad. 10.0 PROPOSED DRILLING PROGRAM The procedures to drill the Well are presented in Exhibit 13 and major components of the plan are summarized in the following sections. 10.1 Casing and Cementing Program The proposed casing and cementing program prepared by Baker Hughes is provided as Exhibit 14. The proposed wellbore schematic is included as Exhibit 15. 10.2 Well Control Equipment Details of the Well control program are included in Exhibit 16. The rig equipment listed in the following table will be provided. Hole Size Size/Pressure Bottom to Top Low/High Test Pressures Arrangement Rams/Annular 20" 21 3/4" 2M A N/A 14 3/4" 21 3/4"2M A N/A 9 '/8" 11" 5M P/S/B/A 250-3500/250-2000 6 '/2" 11" 5M P/S/B/A 250-3500/250-2000 A—Annular B—Blind Ram P—Pipe Ram S—Drilling Spool Note: Test 16" surface casing to 10004. Test 10-3/4"& 7-5/8" casings to 1500#. 4 Packet Page -237- 9/24/2013 10.F. 10.3 Directional Drilling Program The directional drilling program prepared by Baker Hughes is provided as Exhibit 17. 10.4 Drilling Fluids Program The proposed drilling fluids program prepared by Dynamic Drilling Fluids is included as Exhibit 18. 11.0 FINANCIAL SECURITY In accordance with Chapter 62C-26.002, F.A.C., the Dan A. Hughes Company, L.P. is providing a performance bond for multiple wells (Form 2A) as security for the Well. The performance bond for multiple wells was previously submitted to FDEP as part of the application for Permit No. 1349 for Collier-Hogan 20-3H. At that time, the permit number for Collier 22-3H had not been assigned. A rider to the performance bond to include Collier 22-3H is provided as Exhibit 19. 5 Packet Page-238- 9/24/2013 .10.F. EXHIBIT 1 FDEP APPLICATION FOR PERMIT TO DRILL (FORM 3) Packet Page-239- FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION APPLICATION FOR PERMIT TO DRILL 9/24/2013 10.F. Form 3 Rule 62C-25.008,-25.006, -25.003 and-25.001 For information and fees regarding drilling permits for oil and gas related wells,refer to Chapter 62C-26,Florida Administrative Code. File this form with the Chief,Florida Geological Survey,903 West Tennessee Street,Tallahassee,Florida 32304-7700 (phone numbers 850/487-2219 and 488-4191;fax 850/488-8086). • Dan A.Hughes Company,L.P. (Company's Name and Address) _208 E.Houston Street Beeville,Texas 78104 Phone Number: 361-358-3752 Fax Number. 361-358-0598 Well Name and Number: Collier 22-3H Permit#1353 Ground Elevation: _11.3'_Acres Assigned to Well:_402.9 acres_ Latitude:26°11'16.039"N Longitude:81°30'13.659"W SHL: N 674264.75 E 490958.030 Sec. 22 T. 49S R. 28E BHL: N 756450.12 E 508837.86 Sec. 27 T. 49S R. 28E Field/Area: Wildcat Field County: _Collier Distance to nearest drilling unit boundary: _SL:685.3'(FNL)BHL:967.4'(FSL) Proposed Depth:_16600'MD/12064'TVD Do you have all of the mineral interest in the drilling unit under lease or title?_Yes (Yes or No)If not,attach lease map showing ownership of all mineral acreage within the drilling unit and list the names and addresses of all no consenting mineral owners. (See section 377.2411 and.247,Florida Statutes.) (Please answer YES or NO) Is the structure intended for the drilling or production of this well located(See section 377.24,F.S.) a) in a municipality? NO b) in tidal waters within 3 miles of a municipality? NO c) on an improved beach? NO d) on any submerged land within a bay,estuary,or offshore waters? NO e) within one mile seaward of the coastline of the state? NO f) within one mile seaward of the boundary of a local,state or federal park or an aquatic or wildlife preserve? NO g) On the surface of a freshwater lake,river or stream? NO h) within one mile inland from the shoreline of the Gulf of Mexico,the Atlantic Ocean or any bay or estuary? NO i) within one mile of any freshwater lake,river or stream? NO If the answer to a,b,or c is YES,attach copies of local governing authorities'permits. If the answer to h or i is YES,attach a contingency plan specifying safeguards being implemented to prevent accidents and/or blowouts and to protect the natural resources of such bodies of water and shore areas in the event of an accident or blowout. The security for this well is On File (attached or on file)with the Florida Geological Survey(see Rule 62C-26.002) and bears Serial Number RLB0014778 Company's Statement State: Texas County: Bee J.H.Kremers ,am the_Chief Operating Officer/Vice President of Land_ (Name) (Title) of_Dan A.Hughes Company,L.P. and attest to all information contained herein to be true and correct. (O ani on) Signature: %//'�'� (r,, Date: File Number: Action: Date: A.P.I.Number: (Approved,Denied) DEP 51-003(16) Revised 3/98 Packet Page-240- 9/24/2013 10.F. EXHIBIT 2 CERTIFICATION TO TRANSACT BUSINESS IN FLORIDA Packet Page -241- 9/24/2013 10.F. 850-617--6381 11/9/2011 9:23:14 AM PAGE 2/002 Fax Server V ., . . V ~ .i.V''. , .`t Y V . . .V.:•�.�' U' V � V �� +. V V w � i nCD 1r 1sA [)m�n >n1r. G ^rnCDnCDCr dr t, ... . .e n n ri t0, 1' r it G / ti tat )76 SW C 141 . _ irli e„ a .,---.= . ,....-:,. uriba , _ , „... ). .,, t. ...It . .. . PAC ,✓mot . >�r lib 5VC oow '` Dft U ikpartent of t tc gc V VC I certify from the records of this office that DAN A. HUGHES COMPANY, L.P. mD C is a Texas limited partnership registered to transact business in the 'Vr state of Florida on November 8, 2011. as % AC'L I further certify the document was electronically received under FAX audit C 11 number H11000266383. This certificate is issued in accordance with section 15. 16, Florida Statutes and authenticated by the code noted below. C DnC The document number of this limited partnership is 811000000213. pEl4 v D D.0 D r t /AN 1Vr 811A00025420-110911-811000000213-1/1 r tGiven under my hand and the Del Great Seal of the State of Florida 1111 C at Tallahassee, the Capital, this the cP Ninth HA V day of V November, 2011 D C Nur .0 D C • O; ,n • 6 n.. DXc NI D 02 X111 M ' .tea$ C Rat . Prolonfug n iketretar�► of &trite 1 4,r c • 1 'Kt ' i f 11 'J.' ,`. ., VV �/ � U V V V V ti V \V✓ kt7° , l f t ›\'`.'1;1(::•'-'7.1:, ( ..` .4; CP'( CM Packet Page-242- 850-617-6381 11/9/2011 9:23:14 AM PAOE 1/002 Fax Server 9/24/2013 10.F. ; -1 i r= ir November 9, 2011 FLORIDA DEPARTMENT OF STATE DAN A. HUGHES COMPANY, L.P. thvsion of Corporations 208 E. HOUSTON BEEVILLE, TX 78102US The Application by Foreign Limited Partnership or Limited Liability Limited Partnership for DAN A. HUGHES COMPANY, L.P., a Texas limited partnership or limited liability limited partnership was filed on November 8, 2011 and assigned document number B11000000213. Please refer to this number whenever corresponding with this office. Enolosed is your certificate of authority. This document was electronically received and filed under FAX audit number H11000266383. To maintain "active" status with the Division of Corporations, an annual report must be filed yearly between January 1st and May 1st beginning in the year following the file date or effective date indicated above. If the annual report is not filed by May 1st, a $400 late fee will be added. It is your responsibility to remember to file your annual report in a timely manner. A Federal Employer Identification Number (FEI/EIN) will be required when this report is filed. Contact the IRS at 1-800-829-4933 for an SS-4 form or go to www. irs.gov. Please be aware if the limited partnership address changes, it is the responsibility of the limited partnership to notify this office. Should you have any questions concerning this matter, please contact this office at the address given below. Carolyn Lewis Regulatory Specialist II Registration/Qualification Section Division of Corporations Letter Number: 811A00025420 P.0 BOX 6327—Tallahassee,Flonda 32314 Packet Page -243- 9/24/2013 10.F. EXHIBIT 3 ORGANIZATION REPORT FORM (FORM 1) Packet Page-244- 9/24/2013 10.F. FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION ORGANIZATION REPORT Form t Rule 62C-25.000 All persons exploring for,storing,transporting,reclaiming,treating,or processing crude oil or natural gas shall file this record with the Chief, Florida Geological Survey,903 West Tennessee Street,Tallahassee, Florida 32304-7700(phone numbers 850/487-2219 and 488-4191;fax 850/488.8086). 1. Organization:Dan A.Hughes Company,L.P. (Name and Address) 208 E.Houston Beeville,Texas 78102 Phone Number:361-358-3752 Fax Number61-362-2839 2. Type of Organization:Limited Partnership (Corporaton,Joint Association,Firm.Partnership,ind'rviduai,etc,) 3. Purpose of Organization: 011 and Gas Exploration 4. If Corporation,State and Date of Incorporation: Name and Address of Florida Registered Agent: C T Corp.,1200 South Pine Island Rd.,Plantation,FL 33324 Date Registered with Secretary of State: November 8,2011 5. Officers,Owners,Directors and Trustees Information(Arlach additional sheets as needed): Name Title Address Phone Number Dan A.Hughes, Chief Executive Officer P.O.Drawer 669,Beeville,TX 78102 361-358-3752 Dan A.Hughes, President P.O.Drawer 669,Beeville,TX 78102 361-358-3752 J.H.Kremers C.O.O.N-P Land P.O.Drawer 669,Beeville,TX 78102 361-358-3752 6. Is this a reorganization? yes If so,previous name: Dan A.Hughes Company Organization's Statement State: Texas County: Bee I,J.H.Kremers ,am the Chief Operating Officer/Vice President of Land (Name) (Tree) of Dan A.Hughes Company,L,P. and attest that all information contained herein is true and correct. (Oaenizetion) Signature: Date: g1P4/10" DEP 51.441(16) Rpri,etl39e Packet Page-245- 9/24/2013 10.F. EXHIBIT 4 LEASE AGREEMENT Packet Page -246- INSTR 4724360 OR 482 9/24/2013 10.r. Prepared by Kristine Kremers, RECORDED 81212012 9:47 AM PAGES 4 Dan A.Hughes Company,L.P. DVNGHT E.BROCK,CLERK OF THE CIRCUIT COURT P.O.Drawer 669 COLLIER COUNTY FLORIDA Beeville,Texas 78104 DOC@.70$0.70 REC$35.50 INDX$2.00 MEMORANDUM OF OIL GAS&MINERAL LEASE STATE OF FLORIDA § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF COLLIER § LESSOR: Collier Resources Company LLP,as authorized agent for: Barron Collier Resources,LLP, Collier Land and Cattle Corporation, Collier Land Holdings Ltd.And CDC Land Investments,Inc.,et al LESSOR'S ADDRESS: c/o Collier Resources Company 2600 Golden Gate Parkway,Suite 112 Naples,Florida 34105-3227 LESSEE: Dan A.Hughes Company,L.P. LESSEE'S ADRESS: P.O.Drawer 669 Beeville,TX 78104-0669 DATE OF LEASE: effective June 1,2012 PRIMARY TERM: Said Lease provides for a primary term of FIVE(5) YEARS with an option to extend said lease for an additional THREE (3) YEARS and provides that it may be continued in force thereafter in accordance with the provisions set out in said Lease. ROYALTY: As therein provided PROPERTY COVERED BY LEASE: Being 115,560 acres of land, more or less,in Collier County, Florida,more particularly described on the Exhibit"A"attached hereto. The original executed copy of said Lease is in the possession of Lessee, with Lessor retaining a copy,and the purpose of this memorandum is to give notice of the existence of said Lease. Lessor, for the consideration set out in said Lease, hereby grants, leases, and lets to Lessee the land covered by said Lease, being the lands described and referred to above,for the purposes and with the right of exploring,drilling,mining and operating for,producing and owning oil,liquid hydrocarbons, gas or their constituents, but no other minerals,together with all of the easements and rights which are granted the Lessee as set out in said Lease, upon and subject to all of the provisions and conditions set out in said Lease, to which reference is hereby made for all purposes to the depths covered by said Lease. This Memorandum of Lease shall be binding upon the parties hereto and the provisions hereof shall extend to and be binding on the respective heirs,successors and assigns of the parties hereto. Packet Page-247- 9/24/2013 10.F. Prepared by Kristine Kremers. Dan A.Hughes Company,L.P. P.O.Drawer 669 Beeville,Texas 78104 This instrument may be executed in any number of counterpart originals, each of which will be of equal force and effect. Failure of any party hereto to execute this instrument or a counterpart thereof shall not render it ineffective as to any party hereto who does execute it or a counterpart thereof, but shall be binding upon each executing party and its successors and assigns.The counterpart originals may be combined by signature page and acknowledgment into a single instrument for purposes of recordation or any other purposes. IN WITNESS WHEREOF,this instrument is effective as of June 1.2012. AS TO LESSOR WITNESSED BY: COLLIER RESOURCES COMPANY,LLP Name: -±.k c ,. Li....� MS ^.c'S /5)----------- Title: ;'{c%? By: 7.! .'•..*2, Name: `,.Ti! P L7 r rh .. q. By: / . frr .R 1/ � } i // f,. Name: % ."....e ,:/n �.% ACKNOWLEDGEMENTS STATE OF FLORIDA § COUNTY OF COLLIER § The foregoing instrument was acknowledged before me this SST day of June,2012,by 77-#19M ,6,1__e. J'DIJES (Name),as 5e1J104t ✓icE. P s(CF r (Title),of COLLIER RESOURCES COMPANY,LLP.,who is personally known to me or has produced as identification. ",Ag»N ice, DIANE LVIGNEE�I Notary Public,State of F!-f1 '17ty ` ,.,,r MedThw Notary P SaUrtde f9 Printed Name: Dig}v< G. Y/ N t` eoaeenwRIruo}s .s Serial Number: a 0O8t22) My Commission Expired: ' l) .-'/ /3 .20/Co Packet Page-248- 9/24/2013 10.F. Prepared by Kristine Kremers, Dan A.Hughes Company.L.P. P.O.Drawer 669 Beeville,Texas 78104 AS TO LESSEE WITNESSED BY: DAN A.HUGHES COMPANY,L.P. BY:Dan A.Hughes Management,L.L.C. Its general p.rtner By: Nape: . -n y Kremers Titl>• • ief Operating OfficerNice President of Land By: /1� L Name: -.145 t'1 P Y—«einke_e_5 By: 1 Name: !.' .! A) ACKNOWLEDGEMENTS STATE OF FLORIDA § COUNTY OF COLLIER § This instrument was acknowledged before me on this-25r day of June,2012,by J.Henry Kremers,Chief Operating OfficerNice President of Land of Dan A.Hughes Management,L.L.C.,as general partner of Dan A. Hughes Company,L.P.,a limited partnership,on behalf of said limited partnership,who is personally known to me or has produced Ma-5PVL&5Ae as identification. 14 ha?rayi7 Notary Public,State of .F 44/O x„ _ DiANELwGNER Printed Name: .f/z!, __.e.f my commISSON t EE 200820 �`' EXTES:Ju ". +.Y».•`'� BoriUMThnt Nolay ryuyS�U�ip� Packet Page -249- 9/24/2013 10.F. Prepared by Kristine Kremers, Dan A.Hughes Company,L.P. P.O.Drawer 669 Beeville,Texas 78104 EXHIBIT"A" S.Florida Project,Collier County,Florida 115,560.00 acres described as follows: Township 46S,Range 27E Sections 25,26,27,28,29,31,32,33,34,35,36 Township 47S,Range 27E Sections 1,2,3,4,5,6,7,8,9, 10,11, 12, 13,14, 15, 18,22,23,24,25,26,27,34,35, 36 Township 47S,Range 28E Sections 1,3,4,5,6,7,8,9, 10,11, 12, 13, 14, 15, 17, 18, 19,20,21,22,23,24,25,26, 27,28,29,30,34,35,36 Township 47S,Range 29E Sections 3,4,5,6,7,9,11, 13, 14, 15,16,17, 19,21,23,25,27,29,31,33,35 Township 47S,Range 30E Sections 19,West 491 acres Sections 30,31, Township 48S,Range 27E Sections 1,2,3 Township 48S,Range 29E Sections 2,4,6,8,10,12,14,16, 18,34,36 Township 48S,Range 30E Section 31 Township 49S.Range 28E Sections 1,2,10, 11, 12,13, 14, 15,22,23,24,25,26,27,34,35,36 Township 49S,Range 29E Sections 1,2,3,4,5,6,7,8, 10, 11, 12,15, 16, 17, 18,19,30,31,36 Township 49S.Range 30E Sections 6,7 Township 50S,Range 28E Sections 1,2, 12,13,24 Township 505,Range 29E Sections 6,7,8, 18, 19,20 Township 50S,Range 30E Sections 13,14, 15,22,23,24,25,26,27,34,35,36 Township 50S,Range 31E Sections 17, 18,19,20,28,29,30,31,32,33 Estimated to comprise 100,000 Net Mineral Acres. • Packet Page -250- 9/24/2013 10.F. EXHIBIT 5 AGENT AUTHORIZATION LETTERS Packet Page-251- 9/24/2013 10.F. DAN A. HU HES COMPANY, L.P. Petroleum Exploration And Production August 27, 2012 To Whom It May Concern: RE: Agent authorization for Passarella&Associates This letter will serve as notice that Ken Passarella of the firm of Passarella & Associates, Inc. of Fort Myers, Florida, is authorized to act as agent on behalf of Dan A. Hughes Company, L.P., with respect to oil and gas permitting and regulatory matters in the State of Florida. This authorization may be revoked by Dan A. Hughes Company, L.P. at any time. The Division of Corporations of the Office of the Secretary of State designates Dan A. Hughes Company, L.P. authorized to do business in the State of Florida. Sincerely, DAN A. HUGHES COMPANY, L.P. By: ,It1 - J my Kremers • of Operating Officer/Vice President-Land • P.O. DRAWER 669 • BEEVILLE, TX 78104-0669 • (3A1) 1M-1752 • (FNERAL FAX 362-2839 • GEOLOGICAL Fax 358-0598 Packet Page-252- 9/24/2013 10.F. DAN A. HU HES COMPANY, L.P. Petroleum Exploration And Production September 25,2012 , To Whom It May Concern: Re: Agent Authorization for Schlumberger Water Services USA Inc. This letter will serve as notice that David L Hoffman or Robert G. Maliva of Schlumberger Water Services USA Inc. (SWS)are authorized to act as agents on behalf of Dan A. Hughes Company,L.P.,which respect to oil &gas, class II injection well,and consumptive water use permitting and regulatory matters in the State of Florida. The Florida Division of Corporations of the Office of the Secretary of State designates Dan A. Hughes Company, L.P.,of Beeville,Texas,as limited partnership authorized to transact business in the State of Florida. . Sincerely, Dan A. Hughes Company, L.P. By: i f /•i . enry Kremers,Chief Operation Officer/Vice President—Land L-neral Partner of Dan A. Hughes Company, L.P. P.O. DRAWER 669 • BEEVILLE, TEXAS 78104-0669 ""' "r" "ENERAL FAX 362-2839 • GEOLOGICAL FAX 358-0598 Packet Page -253- 9/24/2013 10.F. EXHIBIT 6 WELL LOCATION PLAT Packet Page-254- Oil Well Permit #1353 9/24/2013 10.F. Seated Original COLLIER 22-3H Drawing on File • I 4a WELL COLLIER 22-3H SURFACE HOLE LOCATION LAT. 26'11'16.039• N Legend: LONG. 81'30'13.659"" Ill N 674264.75 E 490958.03 FSL—From South Section Line GROUND ELEVATION FWL—From West Section Line NAVD 88=11.3" NGVD 29=12.6' FEL—From East Section Line 1,956 feet FSL SECTION 22, FNL—From North Section Line 950 feet FWL TOWNSHIP 49 SOUTH,RANGE ,\ DRILLING UNIT BOUNDARY 28 EAST 0 c ) WELL HEADS & PERMIT COLLIER COUNTY,FLORIDA NUMBER PROVIDED BY FLORIDA � • DEPARTMENT OF 41,, t ENVIRONMENTAL PROTECTION DISTANCES ARE IN FEET. 563.4' --- WELL COLLIER 22-3h' PENETRATION POINT INTO N RUBBLE v LAT. 26'11'11.681" N LONG. 81'30'07.455" w N 673822.60 E 491521.42 . 1,517 feet FSL to rn 1,516 feet FWL 21 22 22 23 28 27 27 26 WELL COLLIER 22-314 BOTTOM HOLE LOCATION LAT. 26610'46.664' N LONG. 8129'31.846" W N 671284.34 E 494755.68 1,017 feet FNL 3797.6' ' 543 feet FEL DRILLING UNIT BOUNDARY M 11M o SURVEYOR's NOTES: 1. This is o specific purpose survey prepared to illustrate proposed well location. 2. North and the coordinate values shown hereon ore referenced to the East Zone of the Florida State Plane Coordinate System. NAD 83. Vertical values are NAVD B8, the NGVD 29 elevations were converted lia I L. . 4 ... � from NAVD 88 using Corpscon. Units ore in U.S. Survey feet. NORTH3. Section information is based upon a field survey of existing monumentation. THIS IS NOT A BOUNDARY 11 SURVEY. 0 600 1200 4. Distances ore in U.S. Survey Feet. ( ', f �, . 0/17W/14—( IN FEET } �r 02/21/?3 1 inch — 12©0 ft. JO 1 M. CLYATT, P.S.M. - FL. R STRATION No 4092 DATE GRAPHIC & INTENDED DISPLAY SCALE P KETT & ASSOCIATES, INC VL REGISTRATION No. LB 354 SPECIFIC PURPOSE SURVEY �t` �j► LOCATED IN SECTION 22, PICKETT 475 SOAVENUE TOWNSHIP 49 SOUTH, RANGE 28 EAST y a°"RO E: iS°s �v�'r� FAT(:fesi153a-lass PREPARED FOR: DAN A. HUGHES COMPANY, L.P. `orb SURVEYING l�Etc�TOO AMME �� PROJECT: COLLIER HUGHES WELL #2 PICKET &ASSOCIATES,INC. roject No.: 16925 No. Date Approved RFVtSiON NOT VALID WITHOUT Horiz. Sco/e: 1" _ 1200' OR 03/29/13 JMC Original Release THE SIGNATURE AND THE ORIGINAL RAISED DWG. Name: Drown By: B.zs9zs——PFAMti SEAL OF A FLORIDA LICENSED SURVEYOR AND MAPPER. Field Big / Pg.: 8 0? Packet Page -255- `Drawing # SD3 185 9/24/2013 10.F. EXHIBIT 7 LOCATION MAP Packet Page-256- eillliN. 7.1AHAS ii__ __...... DArl NIELS Pi),:i VVY ir",31,,,...,,,,...__._ 1 '-1"7:.NY 01 -' NJAMA,OITY ,_.. /w , ., . iiiiial 9/2c.,,, ,..4.12.013 10.F. P OKUVEEV,LE ‘ \''...1 - *3' ALIGO RD , i ii —IRON A MAC 17,,,(2 ID ,, k CORKSCREW RI _ ./•. _ ' —---' ' 1 *111 !as lt, .., r at) I 11116-- °PLANO° . .*4 -_-_,-.: 1 MID , Itti,. I CD : 1 i , i' \ , \ i 1 V2411. 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Dan A.Hughes Company CONTINGENCY PLAN T4 :TAL TA L SA F Ty HYDROGEN SULFIDE CONTINGENCY PLAN Dan A. Hughes Company Drilling Plan Collier 22-3H Lat. 26"11'16.039" N Long. 81"30'13.659"W N 674264.75 E 490958.03 Collier County, Florida H2S Contingency Plan#001 Revision# 1 Rig: Precision 314 This H2S Contingency Plan is subject to updating April 2013 1 Packet Page-265- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN TABLE OF CONTENTS INTRODUCTION 3 PURPOSE 4-7 A. Operating Procedures B. Procedures to be Initiated Prior to reaching 1000' Above H2S C. Drilling Below Contingency Plan Depth D. Procedures Program CONDITIONS & H2S EMERGENCY PROCEDURES 8-14 A. Definition of Operational "Conditions" B. Responsibilities of Well Site Personnel C. Instructions For Igniting the Well SAFETY EQUIPMENT 15-16 TOXICITY OF VARIOUS GASES 17 PROPERTIES OF GASES 18-19 TREATMENT PROCEDURES FO H2S POISONING 20 BREATHING AIR EQUIPMENT DRILLS ON/OFF DUTY 21 HYDROGEN SULFIDE TRAINING CURRICULUM 22-23 FIT TEST 24 H2S EQUIPMENT LIST 25-26 EMERGENCY PHONE NUMBERS 27-29 EVACUATION OF GENERAL PUBLIC 30-32 ADDENDUM 33 OTHER: NOTES 34 DIRECTIONS TO WELL SITE 35 RESIDENTS LIST 36 LOCATION RIG LAYOUT 2 Packet Page-266- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN ROE MAP (RADIUS OF EXPOSURE) INTRODUCTION This H2S Contingency Plan will go into effect at approximately 10,500' which is over 1000' before the top of the expected or unknown hazardous H2S zone. To be effective, the plan requires the cooperation and effort of each person participating in the drilling of an H25 well. Each person must know his/her responsibilities and all emergency and safety procedures. He/she should thoroughly understand and be able to use with accuracy, all safety equipment while performing his/her normal duties, if the circumstance should arise. He/she should therefore familiarize himself/herself with the location of all safety equipment and check to see that it is properly stored, easily accessible at all times, and routinely maintained. It is the intention of Dan A. Hughes Company and the Drilling Contractor to make every effort to provide adequate safeguards against harm to persons on the rig and in the immediate vicinity from the effects of hydrogen sulfide, which may be released into the atmosphere under emergency conditions. However,the initiative rests with the individual in utilizing the safeguards provided. The ideas and suggestions of the individuals involved in the drilling of this well are highly welcomed and act as a fundamental tool for providing the safest working conditions possible. The drilling representative is required to enforce these procedures. They are set up for your safety and the safety of all others. 3 Packet Page-267- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN II. PURPOSE It is Dan A. Hughes Company's intent to provide a safe working place, not only for its employees, but also for other contractors who are aiding in the drilling of this well.The safety of the general public is of utmost concern. All precautions will be taken to keep a safe working environment and protect the public. There is a possibility of encountering toxic hydrogen sulfide gas. Safety procedures must be adhered to in order to protect all personnel connected with the operations as well as people living within the area. The Dan A. Hughes Company representative will enforce all aspects of the H2S Contingency Plan. This job will become easier by a careful study of the following pages and training and informing all personnel on location their duties and responsibilities. A. OPERATING PROCEDURES GENERAL: Before this H2S contingency plan becomes operational,the drilling contractor's personnel, necessary service personnel, and the operator's personnel shall be thoroughly trained in the use of breathing equipment, emergency procedures, and responsibilities. Total Safety shall keep a list of all personnel who have been through the on-site H2S training program at the drill site. All personnel shall be given H2S training and the steps to be taken during H2S conditions under which the well may be drilled. General information will be explained about toxic gases, as well as the physiological effects of H2S and the various classified operating conditions. In addition, the reader will be informed his/her general responsibility concerning safety equipment and emergency procedures. The Total Safety H2S Safety Consultant shall make available the H2S Contingency Plan for all personnel to read and understand it thoroughly. Without exception, all personnel on the drill site must proceed directly to the Total Safety H2S Safety Consultant for location and/or assignment of breathing apparatus. An instruction and orientation briefing will also be held. B. PROCEDURES TO BE INITIATED PRIOR TO REACHING 1000' ABOVE THE H2S BEARING ZONE: A list of emergency phone numbers and contacts will be on location and posted at the following locations: 1. Dan A. Hughes Company Representative's Office Alook 2. Drilling Contractor's,Toolpusher Office 3. Living Quarters Area 4 Packet Page-268- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN All safety equipment and H2S related hardware must be set up as required by Dan A. Hughes Company with regard to location of briefing areas, breathing equipment, etc. All safety equipment must be inspected periodically with particular attention to resuscitators and breathing equipment. All personnel on the drill site will be assigned breathing apparatus. Operator and drilling contractor personnel required to work in the following areas will be provided with breathing equipment connected to a cascade bottled air supply: 1. Rig Floor 2. Mud Pits 3. Derrick 4. Shale Shaker 5. Cellar The Total Safety H2S Safety Consultant will be responsible for rigging up and monitoring all H2S continuous monitoring-type detectors. These units must be tested and recalibrated by the Total Safety H25 Safety Consultant during drilling conditions. In the event H2S is detected, or when drilling in a zone containing H2S,the units shall be bump tested at least once every 24 hours. A calibration log will be kept on location. All results will be reported to the Dan A. Hughes Company Representative. C. DRILLING BELOW CONTINGENCY PLAN DEPTH Blowout drills will be held as often as necessary to acquaint the crews and service company personnel of their responsibilities and the proper procedures to shut-in a well. After the Dan A. Hughes Company's representative is satisfied with blowout drill procedures, a drill will be conducted weekly with each crew, as necessary. A Total Safety H2S Safety Consultant will be on duty prior to reaching contingency plan depth or as otherwise deemed necessary. He/she will conduct safety talks and drills, maintain the safety equipment, consult and carry out the instructions of the drilling supervisor. All personnel allowed on the drill site during drilling or testing operations will be instructed in the use of breathing equipment until supervisory personnel are satisfied that they are capable of using it. After familiarization, each person must perform a drill with breathing equipment. The drill should include getting the breathing equipment, donning the breathing apparatus, and working for a short period. A record shall be kept of all personnel drilled and the date of the drill. Rig crews and service company personnel shall be made aware of the location of spare air bottles, resuscitation equipment, portable fire extinguishers, H2S monitors and detectors. 5 Packet Page-269- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN Knowledge of the location of the H2S monitors and detectors are vital in determining as our gas location and the severity of the emergency conditions. In addition, key personnel shall be trained in the use of a resuscitator. After H2S has been initially detected by any device, all areas of poor ventilation shall be inspected periodically by means of a portable H2S detector instrument. D. PROCEDURES PROGRAM 1. Drill Site a. The drilling rig will be located to allow prevailing winds to blow across the reserve pit. b. Safe Briefing Areas will be provided with a safety equipment trailer at the Primary Area. A Breathing air cascade system will be available at the Secondary Area. Personnel will assemble at the most up-wind station under alarm conditions, or when so ordered by the Dan A. Hughes Company's representative,the Contractor representative, or the Total Safety H2S Safety Consultant. Windsocks or streamers will be anchored to various strategic places on a pole about 30 feet high, so it is in easy view from the rig floor at all times. c. Warning signs will be posted on the perimeters. "No Smoking" signs will be posted as well. d. One multi-channel automatic H2S monitor will be provided by Total Safety and the detector heads will be at the shale shaker, bell nipple, mud pits and on the rig floor and monitored there, or in the logging unit. Should the alarm be shut off to silence the sirens,the blinker light must continue to warn of H2S presence. The safety representative will continuously monitor the detectors and will reactivate the alarm if H2S concentrations increase to a dangerous level. Additional sensor/s will be located outside the living quarter's area, as needed. e. A method of escape will be open at all times. f. Explosion-proof electric fans (bug blowers) will be positioned to insure adequate circulation at all critical locations. These fans are to be supplied by rig contractor. g. If available, land line telephone service will be provided or cell phones provided. (Primary communications provided) h. A rig communication system will be provided, as needed. A gas trap, choke manifold, and degasser will be installed. 6 Packet Page -270- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN j. A kill line securely anchored and of ample strength, will be laid to the well-head from a safe location. This line is to be used only in an emergency. 2. General a. The Dan A. Hughes Company representative and/or the Contractor's Toolpusher will be available at all times. The drilling supervisor, while on duty, will have complete charge of the rig and location operations and will take whatever action is deemed necessary to insure personnel safety,to protect the well, and to prevent damage. b. A Mud Engineer will be on location at all times when drilling takes place at the depth H2S may be expected.The mud engineer will be able to verify the presence or absence of H2S. 7 Packet Page-271- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN III. CONDITIONS AND EMERGENCY PROCEDURES A. DEFINITION OF OPERATIONAL"CONDITIONS" CONDITION I "POSSIBLE DANGER" Warning Flags Green Alarms No Alarm. Less than 10 ppm Characterized By: Drilling operations in zones that may contain hydrogen sulfide. This condition remains in effect unless H2S is detected and it becomes necessary to go to Condition II. General Action: a. be alert for a condition change b. Check all safety equipment for availability and proper functioning. c. Perform all drills for familiarization and proficiency. CONDITION II "MODERATE DANGER" Warning Flags Yellow Alarms: Actuates at 10 ppm. Continuous flashing light. Characterized By: Drilling operations in zones containing hydrogen sulfide. This condition will remain in effect until hydrogen sulfide can be neutralized by adding chemicals to the mud system or if it becomes necessary to go to Condition III. General Action: a. Be alert for a condition change b. Check all safety equipment for availability and proper functioning. c. Follow instructions. d. All persons working in hazardous area will wear SCBA or work unit. 8 Packet Page -272- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN CONDITION III "EXTREME DANGER" Warning Flags Red Alarms Actuate at 15 ppm. Continuous Sirens and Flashing Lights Characterized by: Critical well operations which pose an immediate threat of H2S exposure to on-site personnel and a potential threat to the public. General Action: a. Breathing Apparatus on. b. If not specifically designated to control the well, go to the appropriate safe briefing area. c. During any emergency, use the "buddy" system to prevent anyone from entering or being left in a gas area alone, even wearing breathing apparatus. d. Personnel shall ensure that their breathing apparatus is properly fitted and operational before entering an H2S contaminated area to provide assistance to anyone who may be injured or overcome by toxic gases. e. Remain in safe briefing area and wait for instructions. f. If well is ignited do not assume area is safe. SO2 is hazardous and not all H2S will burn. H2S EMERGENCY PROCEDURES A. Day To Day Drilling Operations 1. Upon discovering a release of H2S gas in the ambient air by warning alarms or in any other way. Do Not Panic. 2. Hold your breath and rapidly move up or across-wind away from the areas where H2S sensing devices are in place, to the closest available breathing apparatus, don your mask, continue to use breathing apparatus until it has been determined that the exposure of H2S gas in the ambient air no longer exists. Do Not Panic! 3. Utilize the "Buddy System", i.e.; select and pair up each person participating in the drilling of an H2S well prior to an emergency situation. 4. Help anyone who is overcome or affected by the H2S gas by taking him/her up-wind out of the contaminated area. 5. Take necessary steps to confirm the release of the H2S gas into the ambient air. • While wearing your self-contained breathing apparatus, determine by the read-out on the fixed monitor which sensing device has detected the release of the H2S gas. 9 Packet Page-273- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN • Utilize the hand-held sniffer type device at the particular sensing point disclosed on the fixed monitor to corroborate the fact that H2S gas has actually been released. That is to rule out the possibility of a false alarm. 6. Refer to the Emergency Phone Numbers and call emergency personnel. 7. Take the necessary steps to suppress the release of H2S gas into the ambient air. Comply with Dan A. Hughes Company's Representative to physically suppress the release of H2S gas at the actual release point. 8. Check all Dan A. Hughes Company's monitoring devices and increase gas monitoring activities with the portable hand-operated H2S and gas detector units. Do Not Panic! The Dan A. Hughes Company's representative will assess the situation and with assistance of the Contractor's Representative and Total Safety's H2S Safety Consultant, will assign duties to each person to bring the situation under control. Emergency Procedures at the Drilling Rig: When the H2S monitors activate the siren and blinker light,toxic gas is present. Do Not Panic! • Put on your gas mask • Render Assistance • Follow Instructions B. RESPONSIBILITIES OF WELL-SITE PERSONNEL In the event of a release of potentially hazardous amounts of H2S, all personnel will immediately proceed upwind to the nearest designated safe briefing area and put on their protective breathing apparatus. Consideration will be given to evacuating non essential personnel, as situation warrants. 1. Dan A. Hughes Company's Well-site Representatives a. If Dan A. Hughes Company's well-site representative is incapacitated or not on location, this responsibility will fall to the Toolpusher/Driller. b. Immediately upon assessing the situation, set this plan into action by initiating the proper procedures to contain the gas and notify the appropriate people and agencies. c. Ensure that the alarm area indicated by the fixed H2S 10 Packet Page-274- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN Monitor is checked and verified with a portable H2S detector. d. Consult Pusher/driller of remedial actions as needed. e. Ensure that non-essential personnel proceed to the safe briefing area. f. Ensure location entrance barricades are positioned. Keep the number of persons on location to a minimum during hazardous operations. g. Consult each contractor, service company, and all others allowed to enter the site, that H2S gas may be encountered and the potential hazards that may exist. h. Authorize the evacuation of local residents if H2S threatens their safety. Non essential personnel should be evacuated from location Situation warrants. 2. Toolpusher a. Toolpusher/Driller will assume responsibilities of Dan A. Hughes Company's well-site representative if that person is incapacitated or not on location. b. Ensure that the alarm area indicated by the fixed H2S monitor is checked and verified with a portable H2S gas detector. c. Confer with Dan A. Hughes Company's well-site representative or superintendent and direct remedial action to suppress the H2S and control the well. d. Ensure that personnel at the safe briefing area are instructed on emergency actions required. e. Ensure that personnel at the drill floor area are instructed on emergency actions required. f. Ensure that the appropriate safety and emergency procedures are observed by all personnel. g. Ensure that all persons are accounted for and provided emergency assistance as necessary. 3. Mud Engineer a. Run a sulfide check on the flowline mud. 11 Packet Page-275- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN b. Take steps to determine the source of the H25 and suppress it. Caustic and H2S scavenger shall be added to the mud as necessary. 4. H2S Safety Consultant a. Check and verify with a portable H2S detector the alarm area indicated by the fixed H2S monitor. Advise the Tool pusher/Driller and Dan A. Hughes Company's well-site representative of findings. b. If H2S is flared, check for sulfur dioxide (502) near the flare as necessary. Take hourly readings at different perimeters, log readings and record on location. c. Ensure that personnel at the safe briefing area are instructed on emergency actions required. d. Ensure that explosion-proof bug blowers are positioned as necessary to disperse H2S away from workers performing their job tasks. These will be provided by rig contractor. e. Ensure that the appropriate warning flags are displayed. f. Ensure that all personnel are in S.C.B.A. as necessary. ook g. Ensure that all persons are accounted for and provide emergency assistance as necessary. h. Be prepared to evacuate rig if order is issued. 5. General Personnel &Visitors a. If not specifically designated to control the well, go to the appropriate (upwind) safe briefing area. All non essential personnel should be evacuated, as situation warrants. b. During any emergency, use the "buddy" system to prevent anyone from entering or being left in a gas area alone, even wearing breathing apparatus. c. Provide assistance to anyone who may be injured or overcome by toxic gases. Personnel shall ensure that their breathing apparatus is properly fitted and operational before entering H2S contaminated area. d. Remain in safe briefing area and wait for instructions. C. INSTRUCTIONS FOR IGNITING THE WELL 12 Packet Page-276- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN 1. The Toolpusher/Driller will confer with Dan A. Hughes Company's well-site representative who will secure the approval of higher Dan A. Hughes Company's authority, prior to igniting the well, if at all possible. The Toolpusher/Driller will be responsible for igniting the well in the event of severe well control problems. This decision should be made only as a last resort in situations where it is clear that: a. Human life and property are endangered, or b. There is no hope of controlling the well under current conditions. 2. Once the decision has been made, the following procedures should be followed: a. Two people wearing self-contained breathing apparatus will be needed for the actual lighting of the well. They must first establish the flammable perimeter by using an explosimeter. This should be established at 30%to 40%of the lower flammable limits. b. After the flammable perimeter has been established and everyone removed from the area, the ignition team should select a site upwind of the well from which to ignite the well. This site should offer the maximum protection and have a clear path for retreat from the area. c. The ignition team should have safety belts and lanyards attached and manned before attempting ignition. If the leak is not ignited on the first attempt, move in 20 to 30 feet and fire again. Continue to monitor with the explosimeter and NEVER fire from an area with over 75%of the Lower Explosive Limit (LEL). If having trouble igniting the well, try firing 40 degrees to 90 degrees on either side of the well. d. If ignition is not possible due to the makeup of the gas,the toxic perimeter must be established and evacuation continued until the well is contained. e. All personnel must act only as directed by the person in charge of the operations. NOTE: After the well is ignited, burning hydrogen sulfide (H2S) will convert to sulfur dioxide (502), which is also a highly toxic gas. DO NOT ASSUME THE AREA IS SAFE AFTER THE WELL IS IGNITED Normal Operations 1. Responsibilities of well-site personnel a. Well-site Representative 13 Packet Page-277- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN 1. Notify H2S Safety Consultant of expected date to reach Contingency Plan implementation depth (1,000' above suspected H2S bearing zone) or prior to starting well work. 2. Ensure H2S Safety Consultant completes rig-up procedures prior to reaching Contingency Plan effective depth. 3. Restrict the number of personnel at the drilling rig or well-site to a minimum while drilling, starting well work,testing or coring. 4. Ensure weekly H2S drills/training are performed. b. Toolpusher 1. Ensure that necessary H2S safety equipment is provided on the rig, and that it is properly inspected and maintained. 2. Ensure that all personnel are thoroughly trained in the use of H2S safety equipment and periodic drills are held to maintain an adequate level of proficiency. c. All Personnel (Including Visitors) 1. Remain clean-shaven. Beards and long sideburns do not allow a proper facepiece seal. 2. Receive H2S safety training on location 3. Familiarize yourself with the rig's Contingency Plan. 4. Inspect and practice putting on your breathing apparatus. 5. Know the location of the "safe briefing areas". 6. Keep yourself"wind conscious". Be prepared to quickly move upwind and away in the event of any emergency involving release of H2S. d. Total Safety H2S Safety Consultant 1.. Conduct training as necessary to ensure all personnel are familiar with the contingency procedures and the operation of emergency equipment. 3. Check all H2S safety equipment to ensure that it is ready for emergency use: • Check pressure daily for each shift on breathing apparatus (both 30- minute and hip-packs)to make sure they are charged to full volume. 14 Packet Page-278- . 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN • Check pressure on cascade air bottles to see that they are capable of recharging breathing apparatus. • Check oxygen resuscitator to ensure that it is charged to full volume. • Check H2S detectors daily for each shift (fixed and portable), and explosimeter,to ensure they are working properly. 4. Provide a weekly report to Dan A. Hughes Company's well-site representative documenting: • Calibrations performed on H2S detectors. • Proper location and working order of H2S safety equipment. • Attendance of all personnel,trained or retrained, and their company. • Weekly drills including list of personnel participating and summary of actions. 15 Packet Page -279- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN IV. SAFETY EQUIPMENT All respirators will be designed, selected, used and maintained in conformance with ANSI Z88.2,American National Standard for respiratory protection. Personal protective equipment must be provided and used. Those who are expected to use respiratory equipment in case of an emergency will be carefully instructed in the proper use and told why the equipment is being used. Careful attention will be given to the minute details in order to avoid possible misuse of the equipment during periods of extreme stress. Self-contained breathing apparatus provides complete respiratory and eye protection in any concentration of toxic gases and under any condition of oxygen deficiency. The wearer is independent of the surrounding atmosphere because he/she is breathing with a system admitting no outside air. It consists of a full face mask, breathing tube, pressure demand regulator, air supply cylinder, and harness. Pure breathing air from the supply cylinder flows to the mask automatically through the pressure demand regulator which reduces the pressure to a breathing level. Upon inhalation, air flows into the mask at a rate precisely regulated to the user's demand. Upon exhalation, the flow to the mask stops and the exhaled breath passes through a valve in the face piece to the surrounding atmosphere. The apparatus includes an alarm & gauge which warns the wearer to leave the contaminated area for a new cylinder of air or cylinder refill. To enable men/women to work in a toxic atmosphere for prolonged periods of time, a hose line with a quick connect can be added to the unit, thereby connecting it to a cascade system breathing air. The installation of a hose bank series of manifolds on the rig floor connected to a series of cascade bottles at a remote location, allows all personnel to remain with masks on for an extended period. The derrickman is provided with a full face piece unit attached to a 5—minute escape cylinder, connected to one or more 300 cubic-foot air cylinders through a quick disconnect "T". In case evacuation via trolley or ladder becomes necessary, he will also have a full bottle of air in his own self-contained breathing apparatus. All respiratory protective equipment, when not in use, should be stored in a clean, cool, dry place, and out of direct sunlight to retard the deterioration of rubber parts. After each use,the mask assembly will be scrubbed with soap and water, rinsed thoroughly, and dried. Air cylinders can be recharged to a full condition from a cascade system. Personnel in each crew will be trained in the proper techniques of bottle filling. The primary piece of equipment to be utilized, should anyone be overcome by hydrogen sulfide, is the oxygen resuscitator. When asphyxiation occurs, the victim must be moved to fresh air and immediately given artificial respiration. In order to assure readiness, the bottles of oxygen will be checked at regular intervals and an extra tank kept on hand. 16 Packet Page-280- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN Hand-operated pump-type detectors incorporating detector tubes will give more accurate readings of hydrogen sulfide. The pump-type draws air to be tested through the detector tube containing lead acetate- silica gel granules. Presence of hydrogen sulfide in the air sample is shown by the development of a dark brown stain on the granules, which is the scale reading of the concentration of hydrogen sulfide. By changing the type of detector tube used, this detector may also be used for sulfur dioxide (502) detection when hydrogen sulfide (H2S) is being burned in the flare area. Provisions must be made for the storage of all safety equipment as is evident from the foregoing discussion. All equipment must be stored in an available location so that anyone engaged in normal work situations is no more than "one breath away'from a mask. 17 Packet Page -281- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN V. TOXICITY OF VARIOUS GASES Chemical Specific Lethal4 Common Name Formula Gravityl PEL(OSHA)2 STEL3 ppm Hydrogen Cyanide HCN 0.94 10 150 300 Hydrogen Sulfide H2S 1.18 10 15 ppm 600 Sulfur Dioxide 502 2.21 2 5 ppm 1000 Chlorine CL2 2.45 1 Carbon Monoxide CO 0.97 35 200/1 Hour 1000 Carbon Dioxide CO2 1.52 5000 5% 10% Methane CH4 0.55 90000 Combustible (9%) (Above5% in air) 1 Air= 1.0 2 Permissible- Concentration at which is believed that all workers may repeatedly be exposed, day after day, without adverse effect. 3 STEL- Short Term Exposure Limit. 4 Lethal - Concentration that will cause death with short-term exposure. Reference: API RP-49,September 1974- Reissued August 1978 18 Packet Page-282- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN VI. PROPERTIES OF GASES A. CARBON DIOXIDE 1. Carbon Dioxide (CO2) is usually considered inert and is commonly used to extinguish fires. It is 1.52 times heavier than air and will concentrate in low areas of still air. Humans cannot breathe air containing more than 10% CO2 without losing conscience or becoming disorientation in a few minutes. Continued exposure to CO2 after being affected will cause convulsions, coma, and respiratory failure. 2. The threshold limit of CO2 is 5000 ppm. Short-term exposure to 50,000 ppm (5%) is reasonable. This gas is colorless, odorless, and can be tolerated in relatively high concentrations. B. HYDROGEN SULFIDE 1. Hydrogen Sulfide (H2S) is a colorless,transparent,flammable gas. It is heavier than air and, hence, may accumulate in low places. 2. Although the slightest presence of H2S in the air is normally detectable by its characteristic "rotten egg" odor, it is dangerous to rely on the odor as a means of detecting excessive concentrations because the sense of smell is rapidly lost, allowing lethal concentrations to be accumulated without warning. The following table indicates the poisonous nature of H2S. CONCENTRATION EFFECTS H2S PPM GR/100 SCF1 0.001 10 .65 Safe for 8 hours without respirator. Obvious and unpleasant odor. 0.0015 15 0.975 Safe for 15 minutes of exposure without respirator. 0.01 100 6.48 Kills smell in 3-15 minutes; may sting eyes and throat. 0.02 200 12.96 Kills smell quickly;stings eyes and throat. 0.05 500 32.96 Dizziness; breathing ceases in a few minutes; need prompt artificial respiration. 0.07 700 45.92 Rapid Unconsciousness; death will result if not rescued promptly. 0.1 1000 64.80 Instant unconsciousness,followed by death within minutes. 1 Grains Per 100 Cubic Feet 19 Packet Page-283- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN C. SULPHUR DIOXIDE 1. Sulfur Dioxide (SO2) is a colorless, non-flammable,transparent gas. 2. SO2 is produced during the burning of H2S. Although SO2 is heavier than air, it can be picked up by a breeze and carried downwind at elevated temperatures. Since SO2 is extremely irritating to the eyes and mucous membranes of the upper respiratory tract, it has exceptionally good warning powers in this respect. The following table indicates the toxic nature of SO2: CONCENTRATION EFFECTS SO2 PPM 0.005 3 to 5 Pungent odor, normally a person can detect SO2 in this range. 0.012 12 Throat irritation, coughing, constriction of the chest,tearing and smarting of eyes. 0.15 150 So irritating that it can only be endured for a few minutes. .05 500 Causes a sense of suffocation, event with the first breath. 20 Packet Page-284- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN VII. Treatment Procedures for Hydrogen Sulfide Poisoning A. Remove the victim to fresh air. B. If breathing has ceased or is labored, begin resuscitation immediately. Note: This is the quickest and preferred method of clearing victim's lungs of contaminated air; however, under disaster conditions, it may not be practical to move the victim to fresh air. In such instances, where those rendering first aid must continue to wear masks, a resuscitator should be used. C. Apply resuscitator to help purge H2S from the blood stream. D. Keep the victim at rest and prevent chilling. E. Get victim under physician's care as soon as possible. 21 Packet Page -285- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN VIII. BREATHING AIR EQUIPMENT DRILLS FOR ON & OFF DUTY PERSONNEL An H2S Drill and Training Session must be given once a week to ALL on-duty personnel with off duty personnel. On-duty and Off-duty personnel will reverse roles on alternate drills. An H2S drill and training session must be given once a week to all off-duty personnel in coincidence with on- duty personnel reversing roles on alternate drills. The purpose of this drill is to instruct the crews in the operation and use of breathing air and H2S related emergency equipment and to allow the personnel to become acquainted with using the equipment under working conditions. The crews should be trained to put on the breathing air equipment within one minute after an H2S emergency has been alerted. The following procedure should be used for weekly drills. The Dan A. Hughes Company's supervisor must be satisfied that the crews are proficient with the equipment. 1. All personnel should be informed that a drill will be held. 2. The H2S Safety Technician should initiate the drill by signaling as he would if he 3. detected H2S. 4. Personnel should don their breathing apparatus. 5. Once the breathing air equipment is on, the H2S Technician should check all personnel to insure proper operation. A training and information session will be conducted after each drill to answer any H2S related questions and to cover one or more of the following: • Condition II, and III alerts and steps to be taken by all personnel. • The importance of wind direction when dealing with H2S. • Proper use and storage of all types of breathing equipment. • Proper use and storage of oxygen resuscitators. • Proper use and storage of H2S detectors (Mini Checks or equivalent). • The "buddy system" and the procedure for rescuing a person overcome by H2S. • Responsibilities and duties. • Location of H2S safety equipment. • Other parts of the "H2S Contingency Plan"that should be reviewed. NOTE: A record of attendance must be kept for weekly drills and training sessions. 22 Packet Page-286- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN IX. HYDROGEN SULFIDE TRAINING CURRICULUM (FOR EMPLOYERS,VISITORS,AND CONTRACTORS) EACH PERSON WILL BE INFORMED ON THE RESTRICTIONS OF HAVING BEARDS AND CONTACT LENS. THEY WILL ALSO BE INFORMED OF THE AVAILABILITY OF SPECTACLE KITS. AFTER THE H2S EQUIPMENT IS RIGGED UP, ALL PERSONNEL WILL BE H2S TRAINED AND PUT THROUGH A DRILL. ANY DEFICIENCIES WILL BE CORRECTED. Training Completion cards are good for one year and will indicate date of completion or expiration. Personnel previously trained on another facility and visiting, must attend a "supplemental briefing" on H2S equipment and procedures before beginning duty. Visitors who remain on the location more than 24 hours must receive full H2S training given all crew members. A "supplemental briefing" will include but not be limited to: Location, use and donning of an assigned respirator, familiarization with safe briefing areas, alarms with instruction on responsibilities in the event of a release and hazards of H2S and (SO2, if applicable). A training and drill log will be kept. Topics for full H2S training shall include, but not be limited to the following: 1. Brief Introduction on H2S A. Slide or VCR presentation (If Available) B. H2S material will be distributed C. Re-emphasize the properties,toxicity, and hazards 1. of H2S D. Source of SO2 (if applicable) 2. H2S Detection A. Description of H2S sensors B. Description of warning system (how it works & its 1. location) C. Actual location of H2S sensors D. Instruction on use of pump type detector(Gastec) E. Use of card detectors, ampoules, or dosemeters F. Use of combustible gas detector G. Other personnel detectors used H. Alarm conditions I & II, I. SO2 alarms (if applicable) 3. H2S Protection A. Types of breathing apparatus provided (30-minute SCBA&SKA PAK with voice diaphragms for communication) B. Principle of how breathing apparatus works C. Demonstration on how to use breathing apparatus D. Location of breathing apparatus 23 Packet Page -287- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN 4. Cascade System A. Description of cascade system B. How system works C. Cascade location of rig with reference to briefing areas D. How to use cascade system (with SKA PAKS &refill) E. Importance of wind direction and actual location of windsocks F. Purpose of compressor/function (if one is on site) 5. H2S Rescue and First Aid A. Importance of wind direction B. Safe briefing area C. Buddy system D. H2S symptoms E. Methods of rescue 6. Hands on Training A. Donning/familiarization of SCBA B. Donning/familiarization of SKA PAK C.Familiarization of cascades D. Use of 02 resuscitator E. Alarm conditions-upwind briefing areas, etc... F. Duties and responsibilities of all personnel G.Procedures for evacuation H. Search and Rescue teams 7. Certification A. Testing on material covered 24 Packet Page-288- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN X. EMPLOYEE INFORMATION TOTAL SAFETY US INC., FIT TEST Employee Name: Date: Date of Employee Medical Evaluation: Medical Status (circle): Unrestricted Limitations on Use Use Not Authorized RESPIRATOR INFORMATIOIN Respirator Type (Dustmask, SCBA,etc): Brand: Size: (circle): XS S M L XL FIT TEST INFORMATION Type of Fit Test Performed: Quantitative Porta Count Fit Factor: Fittester 3000 Fit Factor: Qualitative Irritant Smoke Passed/Failed Isoamyl Acetate (Banana Oil) Passed/ Failed Saccharin Passed/Failed Bitrex Passed/ Failed I hereby certify that this fittest was conducted in accordance with the OSHA Fit Testing Protocols found in Appendix A of 1910.134. Fit Tester Name (Print): Signature: Date: 25 Packet Page-289- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN XI. H2S SAFETY SERVICES HYDROGEN SULFIDE SAFETY PACKAGE RESPIRATORY SAFETY SYSTEMS QTY DESCRIPTION 1 20 Bottle Trailer 12 30-Minute Pressure Demand SCBA w/Pigtail 8 5-Minute Work Units 2 Regulators 4 100' Low Pressure Hose Lines 10 50' Low Pressure Hose Lines 16 3'-5' Pigtails 1 12 Man Manifold 1 6 Man Manifold 1 3 Man Manifold 1 8 Bottle Cascade DETECTION AND ALARM SYSTEMS 1 4-Channel H2S Monitor 4 H2S Controllers 5 H2S Sensors 1 Explosion Proof Alarm 1 Portable Quad Meter 1 Sensidyne/Rae Manual Gas Detection Pump 4 Boxes H2S Tubes (Various Ranges) 4 Boxes S02 Tubes (Various Ranges) 1 Calibration Kit 1 Record Keeping paperwork (ie: Training, Calibration, Inspection, Daily Reports) 1 Rig Up Box 26 Packet Page-290- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN ADDITIONAL SAFETY EQUIPMENT QTY DESCRIPTION 1 Windsock with Pole and Bracket 1 Megaphone (Bullhorn) w/Spare Batteries 1 Well Condition Sign w/Green,Yellow, Red Flags 1 Primary and Secondary Safe Briefing Area Signs 1 Flare Pistol, w/Flares 1 White Marker Board with Erasers and Markers 1 Safety Harness w/50' Safety Line 1 02 Resuscitator 1 Litter 1 24 Piece First Aid Kit Contact: Larry Sneath: Isneath@totalsafety.com Chris McDonald: cmcdonald@totalsafety.com 1-800-833-2974- Office 27 Packet Page-291- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN EMERGENCY PHONE NUMBERS Dan A. Hughes Company Representatives Jeff Ilseng (OP's Mgr) 361-362-3304 Hank Kremers (C.0.0) 361-362-3842 Rig Company Precision Rig#314 Kevin Satter 713-435-6256 713-553-4242 Hydrogen Sulfide Safety Contractor Total Safety 5237 Halls Mill Rd. BldgJ Mobile, AL 36695 800-833-2974 FIRE DEPARTMENTS 911 Big Cypress National Preserve 239-695-2000 33100 Tamiami Trail East 800-788-0511 Ochopee, FL 34141 SHERIFF DEPARTMENTS 911 Collier County Sherriff 239-354-2377 AMBULANCE 911 Emergency Medical Services 239-252-8459 2705 S. Horseshoe Dr. Naples, FL 34104 Air Ambulance America 800-827-0745 A ACLS advanced Air Ambulance 800-633-3590 Angel Medflight World Air Ambulance 866-694-9310 HOSPITALS 911 28 Packet Page-292- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN EMT determined HIGHWAY DEPARTMENT Florida Highway Patrol 239-354-2377 3205 Beck Blvd. Naples, FL 34114 FEDERAL AGENCIES U.S. Environmental Protection Agency Phone:404-562-9900 Region #4 Fax: 404-562-8174 Sam Nunn Atlanta Federal Center Toll Free: 800-241-1754 61 Forsyth St. SW Atlanta, GA 30303 OSHA Phone:404-562-2300 Regional Office Fax: 404-562-2295 61 Forsyth St. SW tlanta, GA 30303 Fort Lauderdale Area Office Phone: 954-424-0242 8040 Peters Road, Bldg H-100 Fax: 954-424-3073 Fort Lauderdale, FL 33324 NATIONAL RESPONSE CENTER 800-424-8802 Toxic Chemical and Oil Spills Tallahassee Office Florida DEP/Bureua of Mine Reclamation Phone: 850-488-8217 Oil and Gas Section V-Mail: 850-413-8192 2051 East Paul Dirac DR./M.S. 715 Fax: 850-488-1254 Tallahassee, FL 32310 CONTACTS: Ed Garrett Professional Geologist/Administrator 850-488-8217 Ext 12 David Files Petroleum Engineer 850-488-8217 Ext 64 29 Packet Page-293- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN Steve Spencer Professional Geologist 850-488-8217 Ext 65 Dave Taylor Geophysical Operations Engineer 850-488-8217 Ext 26 Dot Black Secretary Specialist 850-488-8217 Ext 23 Fort Myers Field Office Florida DEP/Bureau of Mine Reclamation Phone: 239-338-2362 2295 Victoria Avenue, Suite 179 Fax: 239-338-2315 Ft. Myers, FL 33901 CONTACTS: Paul Attwood Cell: 239-229-4293 Professional Geologist Home: 239-947-4348 it 1 30 Packet Page -294- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN XII. EVACUATION OF THE GENERAL PUBLIC The procedure to be used in alerting nearby persons in the event of any occurrence that could pose a threat to life or property will be arranged and completed with public officials in detail, prior to drilling into the hydrogen sulfide formations. In the event of an actual emergency,the following steps will be immediately taken: 1. The Dan A. Hughes Company's representative will dispatch sufficient personnel to immediately warn each resident and transient's down-wind within radius of exposure from the well site. Then warn all residence in the radius of exposure. Additional evacuation zones may be necessary as the situation warrants. 2. The Dan A. Hughes Company's representative will immediately notify proper authorities, including the Sheriff's Office, Highway Patrol, and any other public officials as described above and will enlist their assistance in warning residents and transients in the calculated radius of exposure. 3. The Dan A. Hughes Company's representative will dispatch sufficient personnel to divert traffic in the vicinity away from the potentially dangerous area. A guard to the entrance of the well site will be posted to monitor essential and non essential traffic. 4. General: A. The area included within the radius of exposure is considered to be the zone of maximum potential hazard from a hydrogen sulfide gas escape. Immediate evacuation of public areas, in accordance with the provisions of this contingency plan, is imperative. When it is determined that conditions exist which create an additional area (beyond the initial zone of maximum potential hazard) vulnerable to possible hazard, public areas in the additional hazardous area will be evacuated in accordance with the contingency plan. B. In the event of a disaster, after the public areas have been evacuated and traffic stopped, it is expected that local civil authorities will have arrived and within a few hours will have assumed direction of and control of the public, including all public areas. Dan A. Hughes Company will cooperate with these authorities to the fullest extent and will exert every effort by careful advice to such authorities to prevent panic or rumors. C. Dan A. Hughes Company will attempt to have appropriate management personnel at the disaster site as soon as possible. The company's personnel will cooperate with and provide such information to civil authorities as they might require. D. One of the products of the combustion of hydrogen sulfide is sulfur dioxide (502). Under certain conditions this gas may be equally as dangerous as H2S. A pump type 31 Packet Page-295- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN detector device, which determines the percent of SO2 in air through concentrations in ppm, will be available. Although normal air movement is sufficient to dissipate this material to safe levels,the SO2 detector should be utilized to check concentrations in the proximity of the well once every hour, or as necessary and the situation warrants. Also, if any low areas are suspected of having high concentrations, personnel should be made aware of these areas, and steps should be taken to determine whether or not these low areas are hazardous. 32 Packet Page-296- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN ADDENDUM: In the event that conditions relating to drilling of the subject well require evacuation of personnel in the proximity of the drilling location due to a release of hydrogen Sulfide gas, in addition to the housing and reasonable per diem for the displaced people involved, the operator will provide appropriate reimbursement for reasonable and competitive evacuation and boarding costs for horses and/or cattle that must be included in the evacuation. Formal evacuation would be the result of a decision and declaration resulting from the safety evaluation of the operator,the professional safety company employed on location, and local public emergency officials." Packet Page-297- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN OTHER: NOTES: .tiR. 34 Packet Page-298- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN DIRECTIONS TO WELL SITE: From Naples, from intersection of Interstate 75 &Immokalee Road go East on Immokalee Road for 9.0 miles.Turn right onto Randall Blvd and go 5.2 miles &turn right onto Desoto Road. Go south 6.3 miles &turn left onto 24th avenue SE. Go 0.6 mile to Rig/Well site. 35 Packet Page-299- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN RESIDENTS LIST: Ref Contact Name Phone# #of Address Special Transportation # Household Needs 1 Pamela Duran 239-404-0348 3 4880 24th Ave. No Yes S.E. 2 Raymon 239-3563- 3 ppl, 4 dogs 4795 24th Ave. Yes Yes Rangel 2533 S.E. 3 4780 24th Ave. S.E. 4 4680 24th Ave. S.E. 5 2430 Desoto Blvd. 6 2475 Desoto Blvd. 7 2490 Desoto Blvd. 8 2495 Desoto Blvd. 9 2520 Desoto Blvd. 10 2580 Desoto Blvd. 11 4939 26th Ave. S.E. 12 4786 26th Ave. S.E. 13 4766 26th Ave. S.E. 14 4745 26th Ave. S.E. 15 4695 26th Ave. S.E. 16 4667 26th Ave. S.E. 17 4625 26th Ave. S.E. 18 4440 24th Ave. S.E. 19 4380 24th Ave. S.E. 20 4375 24th Ave. S.E. 21 4365 24th Ave. S.E. 22 Tyler Sterrett 239-300-5583 2 4869 22nd Ave. Yes Yes S.E. 23 4866 22nd Ave. S.E. 24 4846 22nd Ave. 36 Packet Page-300- 9/24/2013 10.F. Dan A.Hughes Company CONTINGENCY PLAN S.E. 25 4825 22nd Ave. S.E. 26 4830 22nd Ave. S.E. 27 4815 22nd Ave. S.E. 28 4735 22nd Ave. S.E. 29 4730 22nd Ave. S.E. 30 4720 22nd Ave. S.E. 31 4660 22nd Ave. S.E. 37 Packet Page-301- 9/24/2013 10.F. EXHIBIT 12 PRECISION DRILLING RIG 314 INFORMATION Packet Page-302- 9/24/2013 10.F. T N Rat Q6-- 11' ALT.ROAD Mouse _225' --> 10.70' • 4.76' L--- - r <20' Hole 7' Mouse Hole-4.76' Cellar 103' Rat Hole-11' 115' 35' < > 3' ^12' </. 60' wu 130' W E> x 295' 88' 82' 200' X 200' } 180' Reserve 20' Pit 98' 20' v v < 210' > Road Rig 314 REV.2 Aug 01 Packet Page-303- 9/24/2013 10.F. RIG 314 CLASSIFICATION: NO! SK 150 DRILL COLLARS: SCR 8 inch and 6 Va inch DRILLING DEPTH CAPACITY: 17,000' (Quantities to be determined) KELLY: POWER SYSTEM: 5-1/4"Hex x 40' Three(3)Caterpillar D3512B engines with Kato 1365 KW AC generators, and Ross Hill ANNULAR PREVENTERS: SCR, Model 1400,three(3) bays to power Hydril GK 13 5/8"x 5,000 psi WP pumps, drawworks and lighting plus hotel load. RAM PREVENTERS: DRAWWORKS: Shaffer Type SL, double ram 13 5/8"x NOI 150DL with Eaton brake 10,000 psi WP, H2S trim Driven by two(2) 1,000 HP G.E.752 DC traction Shaffer Type SL,single ram, 13 5/8"x motors. 10,000 psi WP,H2S trim MAST: CHOKE MANIFOLD: NOl 136'x'13'base, 710,000#static hook load Cameron 4-1/16"x 3-1/16" 10,000 psi WP,dual chokes DRILL LINE: ACCUMULATOR SYSTEM: 1-3/8"EIPS Koomey type 80, seven (7)station,with 165 gallon capacity with dual air pumps and one(1) SUBSTRUCTURE: electric triplex pump NOI 25' high floor,735,000#casing capacity with 400,000#setback capacity,21'clear height MUD TANK SYSTEM: from rotary beam to ground level. Two(2)tank 1,000 BBL total Two (2) Derrick Flo-line cleaners Model 513 MUD PUMPS: Mud agitators Two(2) Gardner Denver PZ-10 triplex pumps NOI two(2) 10"cone desander rated at 1,350 HP, each driven by two(2) 1,000 NOI twelve(12) 5"cone desilter HP G.E.752 DC traction motors. NOI vacuum degasser ROTARY: MUD MIXING PUMPS: Continental Emsco T2750, 27 1/z" Two(2)5"x 6"centrifugal pumps driven by 75 HP electric motor CROWN BLOCK: NOI with six(6) sheaves AUXILIARY EQUIPMENT: Toolpusher and crew quarters TRAVELING BLOCK AND HOOK: One (1) 500 BBL water tank National 350 ton UTB with 350 hook One(1) 19,000 gallon fuel tank Automatic driller SWIVEL: Two (2) hydraulic hoist National P-400 Pipe spinner MD Totco EDR DRILL PIPE: One(1) Mathey(Surveyor)wireline unit 5"OD 0-7 degree drift indicator(standard only) Rev 925107 Packet Page-304- 9/24/2013 10.F. EXHIBIT 13 PROPOSED DRILLING PROGRAM Packet Page-305- 9/24/2013 10.F. Dan A. Hughes Company, L.P. Collier 22-3H Permit#1353 Drilling Program This procedure is to serve only as a general guideline for the drilling of this well and will be reviewed and modified when required as determined by actual wellbore conditions encountered in the drilling operations. Safety and prudent drilling practices will take priority at all times. Amok Packet Page-306- 9/24/2013 10.F. Permit #1353 Dan A. Hughes Company, L.P. Drilling Prognosis Collier County, Florida Date: 4-16-2013 Well: Collier 22-3H Field: Wildcat County: Collier API#: 09-021- Location: Section 22,T49S-R28E @Surface: Section 22 @ BHL:Section 27 Elevation: 11.3'(GL) GL; RKB is 25' above GL Proposed TD: 13,900' (MD)/13,900' (TVD)---Pilot Hole 16,600' MD/12,064' (TVD)---Lateral Hole Directions: From Naples,from intersection of Interstate 75& Immokalee Road go East on Immokalee Road for 9.0 miles. Turn right onto Randall Blvd and go 5.2 miles&turn right onto DeSoto Road. Go south 6.3 miles&turn left onto 24th avenue SE. Go 0.6 mile to Rig/Well site. PROCEDURE SUMMARY 1. Drive 24" Conductor down to refusal around 250'prior to MIRU rig. 2. N/U a 21-1/4" 2000 psi,diverter system with 8" diverter lines. 3. Drill a 20" surface hole to 1600'. Run logs to find USDW. 4. Run 16" 84#/ft,J-55 BT&C surface casing and cement to surface. 5. Drill a 14-3/4" hole through the Boulder Zone to 3850'. 6. Run 10-3/4"45.5#/ft HCL-80 GB Buttress intermediate casing to 3850' & cement back to 3350'. 7. Drill 9-7/8" vertical pilot hole down to 13,900'MD/13,900'TVD. 8. Run Open Hole Logs on wireline. 9. Plug back with cement kick-off plug. Dress off cement to 11,348'. 10. Directionally drill from 11,348' MD down to 12,500'MD/12,064'TVD to casing point. 11. Run 7-5/8" 33.7#/ft, L80 LT&C casing to 12,500' &cement back to 9300'. 12. Drill out cement&shoe with 6-1/2" bit. Drill horizontally from 12,500' MD to 16,600' MD/12,064'TVD. Dan A. Hughes Company, L.P. Collier 22-3H Packet Page-307- 9/24/2013 10.F. CASING PROGRAM Depth (MD) Depth (TVD) Hole Size Casing Size WT(ppf) Grade Thread 250' 250' Driven 24" /2"wt B PE 1600' 1600' 20" 16" 84 J-55 BT&C 3850' 3850' 14-3/4" 10-3/4" 45.5# HCL-80 BT&C 12,500' 12,064' 9-7/8" 7-5/8" 33.7# L-80 LT&C 16,900' 12,064' 6-1/2" Open Hole CASING SPECIFICATIONS Casing Size WT(#/ft) Grade Thread Internal Yield Collapse it Strength 16" 84# J55 BT&C 3560 1410 1,351,000 10-3/4" 45.5# HCL-80 BT&C 4230 3130 1,037,000 7-5/8" 33.7# L-80 LT&C 7900 6560 820,000 ANTICIPATED FORMATIONS FORMATION SUBSEA MD TVD EST PORE PRS(EMW-PPG) Boulder-Top 1700' 1700' Boulder- base 3200' 3200' Sunniland 11,820' 11,820' 9.1 Rubble Zone 12,024' 12,024' 9.1 Rubble Lateral 12,064' 12,064' 9.1 Punta Gorda 12,087' 12,087' 9.1 Pumpkin Bay-Top 13,280' 13,280' 9.1 Pumpkin Bay-Base 13,900' 13,900' 9.1 Dan A. Hughes Company, L.P. Collier 22-3H Packet Page-308- 9/24/2013 10.F. BOP PROGRAM HOLE SIZE/ Bottom to Top Low/High Test Pressures SIZE PRESURE Arrangement Rams/Annular 20" 21-3/4" 2M A N/A 14-3/4" 21-3/4" 2M A N/A 9-7/8" 11" 5M P/S/B/A 250-3500/250-2000 6-1/2" 11" 5M P/S/B/A 250-3500/250-2000 P= Pipe Ram B= Blind Ram A=Annular S= Drilling Spool NOTE: Well Control will use IADC accepted methods. This area is known more for Lost Circulation than for kicks. Pictures of BOP's in Attachments. Test surface casing to 1000#before drilling out cement. Test Intermediate & production casings to 1500#. Florida Dept. of Environmental Protection rules are that the BOP's will be tested every week or called and ask for extension. CEMENT/FLOAT EQUIPMENT&CENTRALIZATION Surface: 16" casing x 20" hole @ 1600' Planned cement volume is based on 100%open hole excess. Spacer: 30 bbls of fresh water Lead Cement: 700 sacks 35:65:6(Poz:Class H;Gel), mixed at 11.5 ppg Tail Cement: 520 sacks Standard Cement mixed @ 14.5 ppg Top Out: 150 sacks Standard Cement+2%CaCl2 Run 16" casing and centralize w/bow springs 6' above shoe, 6' above float collar, and one per joint latched over the next 5 collars for a total of 7 centralizers. Pump Lead cement until cement to surface and then switch to Tail cement. Leave cement above shoe for drill out. Catch cement returns in Catch Tank. Intermediate: 10-3/4"casing x 14-3/4" hole @ 3850' Planned cement volume is based on 100%open hole excess, 500'of Annular fill Spacer: 20 bbls Tail Cement: 555 sacks Premium Class H Cement mixed at 16.2 ppg Use top & bottom plugs and displace at 8 bpm with rig pump. Reciprocate casing w/15' stroke. Leave cement (line capacity)above plugs for drill out. Dan A. Hughes Company, L.P. Collier 22-3H Packet Page -309- 9/24/2013 10.F. Production: 7-5/8" casing x 9-7/8" hole @ 12,500' Spacer: 40 bbls of Tuned Spacer Ill Lead Cement: 150 sacks 35:65:6 (Poz:Class H:Gel) mixed at 12.4 ppg Tail Cement: 860 sacks Premium Cement+additives mixed at 16.2 ppg Use top & bottom plugs and displace at 7 bpm with rig pump. (See Baker Hughes Cementing Recommendations) WELLHEAD PROGRAM 16"SOW x 16-3/4" 3M C-22 16-3/4"3M x 11" 5M C-22 11" 5K x 7-1/16" 10M TCM DRILLING FLUIDS PROGRAM Hole Depth from Depth To MW WL Size MD/TVD MD/TVD ppg API/HTHP pH Comments 20" 0' 1600' 8.4-8.8 N/C 9.0-9.5 Freshwater(gel,Lime,Polymer) 14-3/4" 1600' 3850' 9.0-9.2 25-20 9.0-9.5 Freshwater(gel,Lime,Polymer) Lost Circulation Interval in Boulder Zone 2100'-3500' 9-7/8" 3850' 6000' 8.6-8.9 25-20 9.0-9.5 Freshwater(dispersed polymer) 9-7/8" 6000' 13,900' 8.9-9.1 25-10 9.0-9.5 Freshwater(dispersed polymer) Log Pilot Hole &set cement plug&Kick Off @ 11,348' 9-7/8" 11,348' 12,500'/12,064' 8.9-9.1 25-10 9.0-9.5 Freshwater(dispersed polymer) Set 7-5/8"casing 6-1/2" 12,500'/12,064'16,600'/12,064' 8.8-9.0 25-20 9.0-9.5 Freshwater(HEC polymer) EVALUATION PROGRAM Mud Logger on location and operational by 10,000' Quad Combo log from 13,900'to 10,000' in the Vertical Pilot Hole. Drill pipe conveyed (6-1/2" open hole)from TD back to 12,500' MD/12,064'TVD Cement Bond Log on 7-5/8" casing from 12,500'MD up 8800' (500' above top of cement) Dan A. Hughes Company, L.P. Collier 22-3H Packet Page -310- 9/24/2013 10.F. SAMPLING PROGRAM State requirements: Geologist/Mud Logger to catch one set of dry samples every 30'(keep at rig)from 9,000'to TD on Vertical Pilot Hole &also the Horizontal Section. Dan A. Hughes Company,L.P. requirements: Geologist/Mud Logger to catch one set of dry samples every 30'(keep at rig)from 9,000'to TD on Vertical Pilot Hole&also the Horizontal Section. BIT PROGRAM Bit Size Depth # (inch) Type Out(FT) WOB RPM Remarks 1 20" Rock 1600' 5/25 120 2 14-3/4" Rock 1700' 5/35 120 3 14-3/4" Button 3850' 35/- 50 4 9-7/8" PDC 13,900' 5/35 90/140 Vertical Pilot 5 9-7/8" PDC 12,500' 5/35 60/120 Directional Build 6 6-1/2" PDC 16,600' 5/35 60/120 Horizontal SURVEY PROGRAM We will take directional survey in 20" surface hole every 100'to 1600'. In the 14-3/4" intermediate hole, we will take a survey every 100'to 3850'. In the 9-7/8" hole,we will take a survey every 100' down to 13,900' in the Vertical Pilot Hole. We will then run a Gyro Survey from 13,900' back to surface. After setting kick-off plug,we will directionally drill using MWD surveys to a final Horizontal Depth of 16,600'MD (12,064'TVD). SPECIAL INSTRUCTIONS 1. Notify Florida Department of Environmental Protection (FDEP) in Fort Meyers. Contact Mr. Paul Attwood work cell @239-229-4293 and Mr. Pierre Bruno work cell @ 239-229-4291 within 24 hours prior to spud and prior to running and cementing casing. 2. Test 16" surface casing to 1000# prior to drilling out. 3. Test the 10-3/4" intermediate casing to 1000# before drilling out float collar. 4. Test the 10-3/4" casing shoe to 10.0# Equivalent Mud Weight (EMW). 5. Test the 7-5/8" casing to 1500#before drilling out float collar. 6. Test the 7-5/8" casing shoe to 10.0# Equivalent Mud Weight (EMW). 7. Have all H2S equipment set up by 9,000' along with Mud logger. 8. All cement blends will be mixed with location water and pump times will be run in there lab. All results are to be submitted to the Dan A. Hughes Company office prior to cementing. 9. Safety meetings will be done every morning during crew change for everyone. Dan A. Hughes Company, L.P. Collier 22-3H Packet Page-311- 9/24/2013 10.F. DAN A. HUGHES COMPANY, L.P. DRILLING WELL PROCEDURE COLLIER 22-3H COLLIER COUNTY, FLORIDA SECTION 22 T49S-R28E APRIL 15,2013 Dan A. Hughes Company, L.P. Collier 22-3H Packet Page-312- 9/24/2013 10.F. DRILLING PROCEDURE 1. MIRU Precision Rig#314. 24" Conductor previously set at 250' 2. Install 21-1/4" Diverter and 8" diverter lines. Function Test. 3. Spud with 20" rock bit,20"stabilizers,8" Pro-drift survey tool,8"drill collars, 6" drill collars, and 5" HWDP(BHA will be recommended by DAH office). Drill down to 1600'while running both pumps @ 95 spm for a combined flow rate of 600-800 gpm. Weight on bit from 5k-25k at a rotary speed of 60-100 rpm. 4. Take& record Pro-drift directional surveys every 100'to 1600'. Drill as recommended by mud engineers. At 1600', sweep hole and circulate clean. POOH to bit and trip back in to 1600'. Circulate &condition mud and POOH. RU electric wireline truck& run Gamma Ray/Resisitivity logs from 1600'to 250'. RD logging truck. Determine from log if we can drill deeper. 5. RU 6 man casing crew w/200 ton tools,stabbing board and rental bails (if necessary). RU Laydown machine. PU and run Latch in cement shoe & 16" 84#J55 BT&C casing down to 1600'. Note: centralize w/bow springs 6' above shoe, and one per joint latched over the next 6 casing collars. RD casing crew& RIH w/stab in stinger. Sting into FS. RU cementing iron. 6. Circulate &condition mud for 1-1/2 casing volumes. Mix& pump cement per recommendation. Pump LEAD cement until cement is seen at surface and immediately switch over to TAIL cement. Displace TAIL cement with fresh water. Note:When cement gets to surface divert cement to open top tank. 7. After displacement,Top Off annulus with 50' of TAIL cement. If cement falls or fails to circulate, notify FDEP in Fort Meyers. 8. Make rough cut/final cut on conductor&Casing. Weld on 16" SOW x 16-3/4" 3M C-22 starting head. Casing head should be position so that top of flange is 38" below ground level.Test well head to 700#. 9. NU Diverter system w/Hydril. Test hydril to 2000#high/250#low. 10. RIH w/14-3/4" mill tooth bit and slick BHA to top of cement. 11. Pressure test casing to 1000#. Drill out float collar, cement, &float shoe. 12. Drill new hole from 1600'- 1700'with both pumps for a combined flow rate of 500-800 gpm. Vary bit weight from 5k-35k at a rotary speed of 80 rpm. POOH for button bit to drill Boulder zone cap & Boulder zone. NOTE: Offset Tribal Oil well(Permit#775) lost circulation @ 1725'. 13. RIH w/14-3/4" button bit drill thru Boulder zone (1700'-3200')with lost returns. Take Pro-drift surveys every 100'. Drill down to 3850'. 14. POOH & RU Laydown Machine. 15. RU casing crew w/350 ton tools,stabbing board, & rental bails. RIH w/ FS, 2 jts 10-3/4" 45.5# HCL-80 GB Buttress of casing, FC, & 10-3/4"45.5# HCL-80 GB Buttress casing down to 3850'. 16. RU cement crew, cement plug container(top & bottom plugs), &iron. Circulate &condition mud for 1 casing volume. Mix& pump cement per recommendation. Reciprocate casing 15' and displace cement with mud. Bump plug 500#over differential pressure. Bleed back to check floats. RD cementers. Dan A. Hughes Company, L.P. Collier 22-3H Packet Page-313- 9/24/2013 10.F. 17. ND flowlines&turn buckles. Land casing in slips. Make rough cut on casing& remove spacer spool& DSA. Make final cut on casing& NU 20" Diverter& NU 16-3/4" 3M x 11" 5M C-22 casing spool & 11" 5M BOP's. 18. Test"B" section flange& pack off to 2000#.Test all rams,choke manifold & related vales to 3500#(High)/250#(Low). Test annular preventer to 2000#(High)/250#(Low). Test all floor valves, IBOP & mud lines back to mud pumps to 5000#(High)/250#(Low). 19. RIH w/9-7/8" PDC bit, stabilizers, Pro Drift directional survey tool, 6" DC's, &5" DP's with drilling jars down to top of cement. Test casing to 1500#. Drill out FC,cement, & FS. Drill 10'of new hole &circulate bottoms up until clean. Test casing shoe to 10.0#EMW. 20. Drill down to top of Upper Sunniland. Take Pro-Drift surveys every 100'. Make frequent wiper trips every 30 hrs or however the hole dictates& POOH. RU core bit& barrel. RIH and core Upper Sunniland(as per geologist instructions). POOH & RIH w/PDC bit and drill down to top of Rubble Zone & POOH. 21. RU core bit& barrel. RIH and core the Rubble zone(as per geologist recommendation). POOH & RIH w/PDC bit and drill down to top of Pumpkin Bay& POOH. 22. RU core bit& barrel. RIH and core the Pumpkin Bay zone(as per geologist recommendation). POOH & RIH w/PDC bit. 23. Drill remaining part of hole to 13,900' (Approx 100' below base of Pumpkin Bay). 24. Circulate &condition mud. Make wiper trip up to shoe. RIH back to bottom circulate bottoms up. Drop gyro & POOH. 25. RU Well Loggers& RIH and log well as per Geologist recommendations. 26. RIH opened ended with drill pipe and set cement kick-off plug from 10,950'-11,550'. POOH. 27. RIH w/directional tools and kick off cement plug. Kick-off at approx. 11,348'at 8 deg/100' down to 12,500'MD/12,064'TVD (Depth will change after reviewing previous logging runs). Make wiper trip&circulate/condition mud. RU laydown machine. POOH & lay down drill pipe, BHA, & bit. 28. RU casing crew w/350 ton tools, stabbing board, & rental bails. RIH w/ FS, 2 jts 7-5/8" 33.7# L80 LT&C of casing, FC, &7-5/8" 33.7# L80 LT&C casing down to 12,500'. 29. RU cement crew, cement plug container(top & bottom plugs), &iron. Circulate &condition mud for 1-1/2 casing volumes. Mix & pump cement per recommendation. Reciprocate casing 5'-10' and displace cement with mud. Bump plug 500#over differential pressure. Bleed back to check floats. RD cementers. 30. ND flowlines. RU stack lift. Break bolts on BOP's. Pick up BOP's&set casing slips. Make rough cut on casing & lay down piece. Make final cut on casing& NU 11" 5M x 7-1/16" 10M TCM tubing head.Test flange &pack off to 4000#. NU DSA&Set BOP's. RD stack lift. NU BOP's. 31. Test all rams, choke manifold & related vales to 3500#(High)/250#(Low). Test annular preventer to 2000#(High)/250#(Low). Test all floor valves, IBOP & mud lines back to mud pumps to 5000#(H igh)/250#(Low). 32. RIH w/6-1/2" PDC bit, horizontal directional BHA, &drill pipe down to top of cement. Test casing to 1500#. Drill out FC, cement, & FS. Drill 10' of new hole &circulate bottoms up until clean. Drill horizontally with steerable assembly in Rubble Zone as directed by Hughes Geologist to a Final TD of 16,600' MD/12,064'TVD. Dan A. Hughes Company, L.P. Collier 22-3H Packet Page-314- 9/24/2013 10.F. 33. After reaching TD, circulate &condition mud. POOH with drill pipe& lay down directional tools. RIH with Baker logging tools& make MAD PASS as required by Hughes Geologist. RIH &set packer at 11,300'. POOH & lay down drill pipe. ND BOP's& RDMO drilling rig and wait on completion rig. Dan A. Hughes Company, L.P. Collier 22-3H Packet Page -315- 9/24/2013 10.F. EXHIBIT 14 CASING AND CEMENTING PROGRAM Afhtz Packet Page-316- g 9/24/2013 10.F. BAKER HUGHES Proposal No: 879950107C DAN A HUGHES CO Collier 22-3H 22-T49S-R28E Collier County, Florida April 15, 2013 Well Proposal Prepared for: Prepared by: Mr. Blaine Saathoff Howard E Fairburn Technical Field Rep. Email: howard.fairburn@bakerhughes.com Service Point: Service Representatives: BJS, COLUMBIA Michael S Morgan Bus Phone: 601-7311082 Account Manager Fax: 601-731-2285 Email: michael.morgan5 @bakerhughes.com Mobile: (210) 284-0310 Stanley Craft District Technical Supervisor Email: stan.craft®bakerhughes.com Powered by PowerVision G■4105 Packet Page-317- Operator Name: DAN A HUGHES CO 9/24/201 3 1 0.F. Well Name: Collier 22-3H BAKER► Job Description: 16" Surface @ 1,600' HUGHES Date: April 15, 2013 Proposal No: 8799501070 JOB AT A GLANCE Depth (TVD) 1,600 ft Depth (MD) 1,600 ft Hole Size 20 in Casing Size/Weight 16in, 84 lbs/ft Pump Via 16" O.D. (15.010" .I.D) 84 Total Mix Water Required 15,429 gals Spacer Fresh Water 30 bbls Density 8.3 ppg Lead Slurry 35:65:6 (Poz:Class H:Gel) 700 sacks Density 11.5 ppg Yield 2.66 cf/sack Tail Slurry Type 1 520 sacks Density 14.5 ppg Yield 1.40 cf/sack Displacement Lease Mud 333 bbls Density 9.0 ppg Top-Out Slurry Type 1 + 2%CaCI 150 sacks Density 15.4 ppg Yield 1.23 cf/sack Report Pnmed on April'5.20'3 4:42 PM Page 1 0,4109 Have more questions? You can find us at: http://www.bakerhughes.com/prod ucts-and-services/pressure-pumping Packet Page -318- Operator Name: DAN A HUGHES CO 9/24/2013 10.F. Well Name: Collier 22-3H BAKER Job Description: 16" Surface @ 1,600' HUGHES Date: April 15, 2013 Proposal No: 879950107C WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH(ft) (in) MEASURED I TRUE VERTICAL 23.000 CASING I 250 I 250 20.000 HOLE I 1,600 ( 1,600 SUSPENDED PIPES O.D. DIAMETER (in) I WEIGHTI DEPTH(ft) I I.D. (Ibs/ft) MEASURED I TRUE VERTICAL 16.000 15.010 I 84 I 1,600 I 1,600 Float/Landing Collar set @ 1,520 ft Mud Density 9.00 ppg Mud Type Water Based Est. Static Temp. 93 °F Est. Circ.Temp. 85 °F VOLUME CALCULATIONS 250 ft x 1.4890 cf/ft with 0% excess = 372.2 cf 950 ft x 0.7854 cf/ft with 100% excess = 1492.3 cf 400 ft x 0.7854 cf/ft with 100% excess = 628.3 cf 80 ft x 1.2288 cf/ft with 0% excess = 98.3 cf(inside pipe) TOTAL SLURRY VOLUME = 2591.1 cf 462 bbls Report Primed on April 15,2013 4:42 PM Page 2 Gr4115 Have more questions? You can find us at: http://www.bakerh ug hes.com/prod ucts-and-services/pressure-pumping Packet Page-319- Operator Name: DAN A HUGHES CO 111111741111111 111N1111 9/24/201 3 1 0.F. Well Name: Collier 22-3H BAKER Job Description: 16" Surface @ 1,600' HUGHES Date: April 15, 2013 Proposal No: 879950107C FLUID SPECIFICATIONS Spacer 30.0 bbls Fresh Water @ 8.33 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Lead Slurry 1865 / 2.66 = 700 sacks (35:65) Fly Ash (Pozzolan), bulk:Cement, Class H, bulk+3% bwoc A-7P, Calcium Chloride Pellets 501b bags + 0.001 gps FP-6L, 55 gl drum + 6%bwoc Bentonite, bulk +3% bwoc Sodium Metasilicate, 50 lb bag + 151.3% Fresh Water Tail Slurry 727 / 1.4 = 520 sacks Cement, ASTM Type I, bulk+ 1%bwoc A-7P, Calcium Chloride Pellets 501b bags + 0.2% bwoc ASA-301, 50 lb bag + 0.001 gps FP-6L, 55 gl drum + 60.6% Fresh Water Displacement 332.7 bbls Lease Mud @ 9 ppg Top-Out Slurry 185 / 1.23 = 150 sacks Cement, ASTM Type I, bulk+ 2% bwoc A-7P, Calcium Chloride Pellets 501b bags + 0.001 gps FP-6L, 55 gl drum +48.8% Fresh Water CEMENT PROPERTIES SLURRY SLURRY SLURRY NO.1 NO.2 NO.3 Slurry Weight (ppg) 11.50 14.50 15.40 Slurry Yield (cf/sack) 2.66 1.40 1.23 Amount of Mix Water (gps) 15.79 6.83 5.50 Amount of Mix Fluid (gps) 15.79 6.83 5.50 Estimated Pumping Time -70 BC (HH:MM) 5:30 4:00 1:45 Slurry recipes subject to change based upon test results from lab. oft Report Peeled on April 15.2013 4:42 PM Gr4129 Page 3 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Packet Page-320- Operator: DANA HUGHES CO 1, 9/24/2013 10.F. Well Name: Collier 22-3H BAKER Job Description: 16" Surface @ 1,600' Date: April 15, 2013 HUGHES Proposal No: 8799501070 PRICE ESTIMATE Product Material QTY UNIT PRODUCT DESCRIPTION NET AMOUNT 455 94lbs Cement, Class H, bulk 6,051.50 2598 lbs A-7P, Calcium Chloride Pellets 501b bags 1,273.54 3654 lbs Bentonite, bulk 1,161.97 1827 lbs Sodium Metasilicate, 50 lb bag 2,846.47 245 741bs Fly Ash (Pozzolan), bulk 1,228.92 2,gals FP-6L, 55 gI drum 79.23 670194lbs Cement, ASTM Type I, bulk 7,510.70 98 lbs ASA-301, 50 lb bag 754.11 Product Material Subtotal: $20,906.441 Service Charges QTY UNIT PRODUCT DESCRIPTION NET AMOUNT 1,ea Personnel Per Diem Chrg - Cement Svc 210.00 1 ea Environmental Management-Dispose Mtls 50.00 1509 cu ft (Bulk Material Blending Charge 3,125.14 Service Charges Subtotal: $3,385.14 Equipment QTY UNIT PRODUCT DESCRIPTION NET AMOUNT 1 4hrs Cement Pump Casing, 1001 -2000 ft 1,852.50 2 pump/hr Fuel per pump charge- cement 140.50 1 job Cement Head 315.40 1 job Data Acquisition, Cement, Standard 809.40 1670 miles Mileage, Heavy Vehicle 7,520.01 1670!miles Mileage, Auto, Pick-Up or Treating Van 4,251.82 1 job Circulating Equipment 904.40 Equipment Subtotal: $15,794.03 Customer will be charged for all'SPECIAL PROPPANTS'delivered to location,whether they are pumped or not. All proppants other than standard grade frac sand are considered'SPECIAL PROPPANTS'. The technical data contained in this proposal is based on the best information available at the time of writing and is subject to further analysis and testing. The pricing data contained in this proposal are estimates only and may vary depending on the work actually performed. Pricing does not include federal,state and local taxes or royalties. This quotation is based on Baker Hughes being awarded the work on a first call basis and within thirty(30)days of the proposal date. These prices will be subject to review if the work is done after thirty(30)days from the proposal date,or on a second or third call basis. Report Printed on:April 15.2013 4:42 PM Page 4 Gr4161 Have more questions?You can find us at:http://www.bakerhughes.com/products-and-services/pressure-pumping Packet Page-321- Operator: DANA HUGHES CO / 9/24/201 3 1 0.F. Well Name: Collier 22-3H *,/tom Job Description: 16" Surface @ 1,600' BAKER Date: April 15, 2013 HUGHES Proposal No: 879950107C PRICE ESTIMATE Freight/Delivery Charges QTY UNIT PRODUCT DESCRIPTION NET AMOUNT 551331tonmi Bulk Delivery, Dry Products 65,167.21 Freight/Delivery Charges Subtotal: $65,167.21 TOTAL: $105,252.82 Notes Additional Standby, daily and Remote Crew Charges may be applied with the following pricing: *Price based on pumping for 8 hours* DESCRIPTION UOM QTY GROSS DISC NET Services Supervisor- daily charge day 1 $1,460.00 50%$730.00 Equipment Operator- daily charge day 1 $1,460.00 50%$730.00 Remote Location Crew Expense/Man day 1 $390.00 50%$195.00 Cement Pumping, Additional hrs hrs 1 $900.00 50%$450.00 Bulk Delivery, Standby Charge hrs 1 $226.50 50% $113.25 Field Storage Bin daily Charge after first 5 days $100.00 per day Service Supervisor and Equipment Operator daliy Charges begin when crew arrives on location, and will be assessed every 24-hour period until the job is completed. Remote location crew expense will be assesed for each day of hotel rooms required for crew, from the time they are dispatched from Columbia, MS until they return to Columbia, MS. Cement Pumping Additional hours will be assessed for each hour that the pump is on location beyond the initial 8-hours. Bulk Delivery Standby will be assessed, per peice of bulk equipment, for each hour on location, when not pumping. Discounts applied to the prices in this proposal will remain effective for a period of thirty(30) days from the date of the proposal. Should Customer make modifications to the components of this proposal, Baker Hughes reserves the right to adjust any applied discounts. Baker Hughes appreciates the opportunity to submit pricing and looks forward to providing Best-in-Class services in support of the upcoming project(s). Customer will be charged for all'SPECIAL PROPPANTS'delivered to location,whether they are pumped or not. All proppants other than standard grade frac sand are considered'SPECIAL PROPPANTS'. The technical data contained in this proposal is based on the best information available at the time of writing and is subject to further analysis and testing. The pricing data contained in this proposal are estimates only and may vary depending on the work actually performed. Pricing does not include federal,state and local taxes or royalties. This quotation is based on Baker Hughes being awarded the work on a first call basis and within thirty(30)days of the proposal date. These prices will be subject to review if the work is done after thirty(30)days from the proposal date,or on a second or third call basis. Report Printed or.April 15,2013 4:42 PM Page 5 Gr4161 Have more questions?You can find us at:http://www.bakerhughes.com/products-and-services/pressure-pumping Packet Page-322- Operator Name: DAN A HUGHES CO 9/24/2013 10.F. Well Name: Collier 22-3H BAKER Job Description: 10-3/4" Intermediate @ 3,850' HUGHES Date: April 15, 2013 Proposal No: 8799501070 JOB AT A GLANCE Depth (TVD) 3,850 ft Depth (MD) 3,850 ft Hole Size 14.75 in Casing Size/Weight 10 3/4 in, 45.5 lbs/ft Pump Via 10 3/4"O.D. (9.950" .I.D) 45.5 Total Mix Water Required 2,531 gals Spacer Mud Clean II 20 bbls Density 8.4 ppg Slurry Class H 555 sacks Density 16.2 ppg Yield 1.09 cf/sack Displacement Lease Mud 363 bbls Density 9.0 ppg Report Printed on April 15.2013 4:42 PM Page 6 Gr4109 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Packet Page -323- Operator Name: DAN A HUGHES CO 9/24/2013 10.F. Well Name: Collier 22 3H BAKER Job Description: 10-3/4" Intermediate @ 3,850' HUGHES Date: April 15, 2013 Proposal No: 8799501070 WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH(ft) I (in) MEASURED I TRUE VERTICAL 15.010 CASING I 1,600 I 1,600 14.750 HOLE I 3,850 I 3,850 SUSPENDED PIPES DIAMETER (in) WEIGHT DEPTH(ft) O.D. I I.D. 1 (lbs/ft) I MEASURED TRUE VERTICAL 10.750 I 9.950 I 45.5 I 3,850 I 3,850 Float/Landing Collar set @ 3,770 ft Mud Density 9.00 ppg Mud Type Water Based Est. Static Temp. 111 °F Est. Circ.Temp. 98 °F VOLUME CALCULATIONS 500 ft x 0.5563 cf/ft with 100% excess = 556.3 cf 80 ft x 0.5400 cf/ft with 0% excess = 43.2 cf (inside pipe) TOTAL SLURRY VOLUME = 599.5 cf = 107 bbls Report Printed on April 15.2013 4:42 PM Page 7 Gr4115 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Packet Page-324- 9/24/2013 10.F. Operator Name: DAN A HUGHES CO owes 1111111 Well Name: Collier 22-3H BAKER Job Description: 10-3/4" Intermediate @ 3,850' HUGHES Date: April 15, 2013 Proposal No: 879950107C FLUID SPECIFICATIONS Spacer 20.0 bbls Mud Clean II @ 8.4 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Slurry 600 / 1.09 = 555 sacks Cement, Class H, bulk+0.001 gps FP- 6L, 55 gl drum +40.5% Fresh Water Displacement 362.6 bbls Lease Mud @ 9 ppg CEMENT PROPERTIES SLURRY NO.1 Slurry Weight (ppg) 16.20 Slurry Yield (cf/sack) 1.09 Amount of Mix Water (gps) 4.56 Amount of Mix Fluid (gps) 4.56 Estimated Pumping Time - 70 BC (HH:MM) 3:30 Slurry recipes subject to change based upon test results from lab. Report Primed err: April 15,2013 4:42 PM Page 8 Gr4129 a 9 Have more questions? You can find us at: http://www.ba kerh ug hes.com/prod u cts-and-services/press u re-pu m pi n g Packet Page-325- Operator: DAN A HUGHES CO 9/24/2013 10.F. Well Name: Collier 22-3H GUM Job Description: 10-3/4" Intermediate @ 3,850' BAKER Date: April 15, 2013 HUGHES Proposal No: 879950107C PRICE ESTIMATE Product Material QTY UNIT PRODUCT DESCRIPTION NET AMOUNT 555 94lbs Cement, Class H, bulk 7,381.50 840,gals Mud Clean II 542.64 1 gals FP-6L, 55 gl drum 39.62 1 ea 9-5/8"Top Cern Plug, Nitrile cvr, Phen 262.60 1 ea 19-5/8" Bot Cern Plug, Nitrile cvr, Phen 497.25 Product Material Subtotal: $8,723.61 Service Charges QTY UNIT PRODUCT DESCRIPTION NET AMOUNT 1 ea Personnel Per Diem Chrg - Cement Svc 210.00 1 iea !Environmental Management-Dispose Mtls 50.00 556 cu ft Bulk Material Blending Charge 1,151.48 Service Charges Subtotal: $1,411.48 Equipment QTY UNIT PRODUCT DESCRIPTION NET AMOUNT 1 16hrs Cement Pump Casing, 3001 -4000 ft 2,166.00 2 pump/hr Fuel per pump charge-cement 140.50 1 job Cement Head 315.40 1 job Data Acquisition, Cement, Standard 809.40 1670 miles !Mileage, Heavy Vehicle 7,520.01 1670,miles Mileage, Auto, Pick-Up or Treating Van 4,251.82 1 job Circulating Equipment 904.40 Equipment Subtotal: $16,107.53 Customer will be charged for all'SPECIAL PROPPANTS'delivered to location,whether they are pumped or not. All proppants other than standard grade frac sand are considered'SPECIAL PROPPANTS'. The technical data contained in this proposal is based on the best information available at the time of writing and is subject to further analysis and testing. The pricing data contained in this proposal are estimates only and may vary depending on the work actually performed. Pricing does not include federal,state and local taxes or royalties. This quotation is based on Baker Hughes being awarded the work on a first call basis and within thirty(30)days of the proposal date. These prices will be subject to review if the work is done after thirty(30)days from the proposal date,or on a second or third call basis. Report Ported on April 15.2013 4:42 PM Page 9 Gr4161 Have more questions?You can find us at:http://www.bakerhughes.com/products-and-services/pressure-pumping Packet Page-326- Operator: DANA HUGHES CO 9/24/2013 10.F. Well Name: Collier 22-3H '�`� Job Description: 10-3/4" Intermediate @ 3,850' BAKER Date: April 15, 2013 HUGHES Proposal No: 8799501070 PRICE ESTIMATE Freight/Delivery Charges QTY UNIT PRODUCT DESCRIPTION NET AMOUNT 21781 tonmi Bulk Delivery, Dry Products 25,745.14 Freight/Delivery Charges Subtotal: $25,745.141 TOTAL: $51,987.76 Notes Additional Standby, daily and Remote Crew Charges may be applied with the following pricing: *Price based on pumping for 8 hours* DESCRIPTION UOM QTY GROSS DISC NET Services Supervisor- daily charge day 1 $1,460.00 50%$730.00 Equipment Operator-daily charge day 1 $1,460.00 50%$730.00 Remote Location Crew Expense/Man day 1 $390.00 50%$195.00 Cement Pumping, Additional hrs hrs 1 $900.00 50%$450.00 Bulk Delivery, Standby Charge hrs 1 $226.50 50%$113.25 Field Storage Bin daily Charge after first 5 days $100.00 per day Service Supervisor and Equipment Operator daliy Charges begin when crew arrives on location, and will be assessed every 24-hour period until the job is completed. Remote location crew expense will be assesed for each day of hotel rooms required for crew, from the time they are dispatched from Columbia, MS until they return to Columbia, MS. Cement Pumping Additional hours will be assessed for each hour that the pump is on location beyond the initial 8-hours. Bulk Delivery Standby will be assessed, per peice of bulk equipment,for each hour on location, when not pumping. Discounts applied to the prices in this proposal will remain effective for a period of thirty (30) days from the date of the proposal. Should Customer make modifications to the components of this proposal, Baker Hughes reserves the right to adjust any applied discounts. Baker Hughes appreciates the opportunity to submit pricing and looks forward to providing Best-in-Class services in support of the upcoming project(s). Customer will be charged for all'SPECIAL PROPPANTS'delivered to location,whether they are pumped or not. All proppants other than standard grade frac sand are considered'SPECIAL PROPPANTS'. The technical data contained in this proposal is based on the best information available at the time of writing and is subject to further analysis and testing. The pricing data contained in this proposal are estimates only and may vary depending on the work actually performed. Pricing does not include federal,state and local taxes or royalties. This quotation is based on Baker Hughes being awarded the work on a first call basis and within thirty(30)days of the proposal date. These prices will be subject to review if the work is done after thirty(30)days from the proposal date,or on a second or third call basis. Report Printed on April 15.20134.42 PM Page 10 Gr4161 Have more questions?You can find us at:http://www.bakerhughes.com/products-and-services/pressure-pumping Packet Page-327- Operator Name: DAN A HUGHES CO g/24/20�3 0.F. Well Name: Collier 22-3H BAKER Job Description: 600' Kick-Off-Plug HUGHES Date: April 15, 2013 Proposal No: 8799501070 JOB AT A GLANCE Depth (TVD) 13,900 ft Depth (MD) 13,900 ft Hole Size 9.875 in Pump Via Casing 4 1/2"O.D. (4.000" .I.D) 11.6 Total Mix Water Required 1,402 gals Spacer Mud Clean II 20 bbls Density 8.4 ppg Plug Slurry Kick-Off Plug 360 sacks Density 17.2 ppg Yield 1.07 cf/sack Displacement Lease Mud 172 bbls Density 9.0 ppg Report Printed on April 15,2013 4 42 PM Page 11 Gr4109 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Packet Page -328- '- .4YSi`W�. . -m .ti _. a .', ..r ._ ✓-8..i.�...r > vn..-...>.st^��Rka"x2.xN+k ,✓c.i�� . .....>._. Operator Name: DAN A HUGHES CO 9/24/2013 10.F. Well Name: Collier 22-3H BAKER Job Description: 600' Kick-Off-Plug HUGHES Date: April 15, 2013 Proposal No: 879950107C FLUID SPECIFICATIONS, Spacer = 20.0 bbls Mud Clean II @ 8.4 ppg PLUG VOLUME VOLUME NO. CU-FT FACTOR AMOUNT AND TYPE OF CEMENT 1 385 / 1.07 = 360 sacks Cement, Class H, bulk+0.15%bwoc R-3, 50 lb bag + 3%bwow Potassium Chloride, KCL, 50 lb bag + 0.15%bwoc CD-32, 50 lb bag + 0.001 gps FP-6L, 55 gl drum + 10 lbs/sack S- 8C, Sand, 100 mesh, 50 lb sack+34.6% Fresh Water Displacement = 171.5 bbls Lease Mud @ 9 ppg CEMENT PROPERTIES PLUG NO.1 Slurry Weight (ppg) 17.20 Slurry Yield (cf/sack) 1.07 Amount of Mix Water (gps) 3.90 Amount of Mix Fluid (gps) 3.90 Estimated Pumping Time -70 BC (HH:MM) 3:00 PLUG GEOMETRY PLUG PLUG TOP BOTTOM 1 11048 ft to 11648 ft with 9.875 inch Open Hole PDSqT= 150 °F. PDST= 173.184 °F Slurry recipes subject to change based upon test results from lab. Report Printed on: April 15,2013 4:42 PM Page 12 Gr4131 Have more questions? You can find us at:http://www.bakerhughes.cam/products-and-services/pressure-pumping Packet Page-329- Operator: DANA HUGHES CO A 9/24/2013 10.F. Well Name: Collier 22-3H Job Description: 600' Kick-Off-Plug BAKER Date: April 15, 2013 HUGHES Proposal No: 879950107C PRICE ESTIMATE Product Material QTY UNIT PRODUCT DESCRIPTION NET AMOUNT 3601941bs Cement, Class H, bulk 4,788.00 351 lbs Potassium Chloride, KCL, 50 lb bag 421.20 3600 lbs 1S-8C, Sand, 100 mesh, 50 lb sack 861.84 51 lbs R-3, 50 lb bag 74.42 840igals ;Mud Clean II 542.64 511 lbs BCD-32, 50 lb bag 257.75 ._ gl drum 39.62 Product Material Subtotal: $6,985.47 Service Charges QTY UNIT PRODUCT DESCRIPTION NET AMOUNT 1 ea Personnel Per Diem Chrg - Cement Svc 210.00 1 Lea !Environmental Management-Dispose Mtls 50.00 404 cu ft Bulk Material Blending Charge 836.68 Service Charges Subtotal: $1,096.68 Equipment QTY UNIT � PRODUCT DESCRIPTION NET AMOUNT 1 8hrs 'Cement Pump Tubing, 11001 - 12000 ft 7,961.00 2 pump/hr 'Fuel per pump charge - cement 140.50 1 job Data Acquisition, Cement, Standard 809.40 1670miles Mileage, Heavy Vehicle 7,520.01 16701miles Mileage, Auto, Pick-Up or Treating Van j 4,251.82 Equipment Subtotal: $20,682.73 Customer will be charged for all'SPECIAL PROPPANTS'delivered to location,whether they are pumped or not. All proppants other than standard grade frac sand are considered'SPECIAL PROPPANTS'. The technical data contained in this proposal is based on the best information available at the time of writing and is subject to further analysis and testing. The pricing data contained in this proposal are estimates only and may vary depending on the work actually performed. Pricing does not include federal,state and local taxes or royalties. This quotation is based on Baker Hughes being awarded the work on a first call basis and within thirty(30)days of the proposal date. These prices will be subject to review if the work is done after thirty(30)days from the proposal date,or on a second or third call basis. Report Printed on April 15.2013 4:422 PM Page 13 Gr4161 Have more questions?You can find us at:http://www.bakerhughes.com/products-and-services/pressure-pumping Packet Page-330- Operator: DANA HUGHES CO ` 9/24/2013 10.F. Well Name: Collier 22-3H "�`� Job Description: 600' Kick-Off-Plug BAKER Date: April 15, 2013 HUGHES Proposal No: 879950107C PRICE ESTIMATE Freight/Delivery Charges QTY UNIT PRODUCT DESCRIPTION NET AMOUNT 15820 tonmi Bulk Delivery, Dry Products 23,685.70 Freight/Delivery Charges Subtotal: $23,685.70 TOTAL: $52,450.58 Notes Additional Standby, daily and Remote Crew Charges may be applied with the following pricing: *Price based on pumping for 8 hours* DESCRIPTION UOM QTY GROSS DISC NET Services Supervisor- daily charge day 1 $1,460.00 50%$730.00 Equipment Operator- daily charge day 1 $1,460.00 50%$730.00 Remote Location Crew Expense/Man day 1 $390.00 50%$195.00 Cement Pumping, Additional hrs hrs 1 $900.00 50%$450.00 Bulk Delivery, Standby Charge hrs 1 $226.50 50%$113.25 Field Storage Bin daily Charge after first 5 days $100.00 per day Service Supervisor and Equipment Operator dally Charges begin when crew arrives on location, and will be assessed every 24-hour period until the job is completed. Remote location crew expense will be assesed for each day of hotel rooms required for crew, from the time they are dispatched from Columbia, MS until they return to Columbia, MS. Cement Pumping Additional hours will be assessed for each hour that the pump is on location beyond the initial 8-hours. Bulk Delivery Standby will be assessed, per peice of bulk equipment,for each hour on location, when not pumping. Discounts applied to the prices in this proposal will remain effective for a period of thirty (30) days from the date of the proposal. Should Customer make modifications to the components of this proposal, Baker Hughes reserves the right to adjust any applied discounts. Baker Hughes appreciates the opportunity to submit pricing and Innks forward to nrnvidinn Rest-in-Class s2rvicPs in sunnort of the iincnminn nrniPrt(s). Customer will be charged for all'SPECIAL PROPPANTS'delivered to location,whether they are pumped or not. All proppants other than standard grade frac sand are considered'SPECIAL PROPPANTS'. The technical data contained in this proposal is based on the best information available at the time of writing and is subject to further analysis and testing. The pricing data contained in this proposal are estimates only and may vary depending on the work actually performed. Pricing does not include federal,state and local taxes or royalties. This quotation is based on Baker Hughes being awarded the work on a first call basis and within thirty(30)days of the proposal date. These prices will be subject to review if the work is done after thirty(30)days from the proposal date,or on a second or third call basis. Report Printed err April 15.2013 4:42 PM Page 14 Gr4161 Have more questions?You can find us at:http://www.bakerhughes.com/products-and-services/pressure-pumping Packet Page-331- Operator Name: DAN A HUGHES CO 9/24/2013 1 0.F. Well Name: Collier 22-3H BAKER Job Description: 7-5/8" Longstring @ 12,500' MD HUGHES Date:. April 15, 2013 Proposal No: 8799501070 JOB AT A GLANCE Depth (TVD) 12,064 ft Depth (MD) 12,500 ft Hole Size 9.875 in Casing Size/Weight 7 5/8 in, 33.7 lbs/ft Pump Via 7 5/8"O.D. (6.765" .I.D) 33.7 Total Mix Water Required 5,599 gals Spacer Mud Clean II 40 bbls Density 8.4 ppg Lead Slurry 35:65:6(Poz:Class H:Gel) 150 sacks Density 12.4 ppg Yield 1.99 cf/sack Tail Slurry Class H + Additives 860 sacks Density 16.2 ppg Yield 1.10 cf/sack Displacement Lease Mud 552 bbls Density 9.0 ppg Report Printed on Aprii 15.2013 4'42 PM Page 15 Gr4109 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Packet Page -332- Operator Name: DAN A HUGHES CO I 9/24/2013 10.F. Well Name: Collier 22-3H BAKER Job Description: 7-5/8" Longstring @ 12,500' MD HUGHES Date: April 15, 2013 Proposal No: 879950107C WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH(ft) (in) MEASURED I TRUE VERTICAL 9.950 CASING I 3,850 I 3,850 9.875 HOLE I 12,500 ( 12,064 SUSPENDED PIPES DIAMETER (in) WEIGHT DEPTH(ft) O.D. I.D. I (Ibs/ft) MEASURED I TRUE VERTICAL 7.625 6.765 33.7 ( 12,500 I 12,064 Float/Landing Collar set @ 12,420 ft Mud Density 9.00 ppg Mud Type Water Based Est. Static Temp. 177 °F Est. Circ.Temp. 140 °F VOLUME CALCULATIONS 1,388 ft x 0.2148 cf/ft with 0% excess = 298.0 cf 3,200 ft x 0.2148 cf/ft with 35% excess = 927.8 cf 80 ft x 0.2496 cf/ft with 0% excess = 20.0 cf(inside pipe) TOTAL SLURRY VOLUME = 1245.8 cf = 222 bbls Report Printed en: April 15,2013 4:42 PM Gr4115 Page 16 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Packet Page-333- Operator Name: DAN A HUGHES CO 9/24/2013 10.F. Well Name: Collier 22-3H BAKER Job Description: 7-5/8" Longstring @ 12,500' MD HUGHES Date: April 15, 2013 Proposal No: 879950107C FLUID SPECIFICATIONS Spacer 40.0 bbls Mud Clean II @ 8.4 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Lead Slurry 298 / 1.99 = 150 sacks (35:65) Fly Ash (Pozzolan), bulk:Cement, Class H, bulk +0.25%bwoc R-3, 50 lb bag + 0.15% bwoc CD-32, 50 lb bag + 0.001 gps FP-6L, 55 gl drum + 6% bwoc Bentonite, bulk+ 105.4% Fresh Water Tail Slurry 948 / 1.1 = 860 sacks Cement, Class H, bulk + 0.1%bwoc R- 3, 50 lb bag + 3% bwow Potassium Chloride, KCL, 50 lb bag + 0.15% bwoc FL-25 + 0.001 gps FP-6L, 55 gl drum +40.7% Fresh Water Displacement 552.2 bbls Lease Mud @ 9 ppg CEMENT PROPERTIES SLURRY SLURRY NO.1 NO.2 Slurry Weight (ppg) 12.40 16.20 Slurry Yield (cf/sack) 1.99 1.10 Amount of Mix Water (gps) 11.00 4.59 Amount of Mix Fluid (gps) 11.00 4.59 Estimated Pumping Time - 70 BC (HH:MM) 4:15 3:30 Slurry recipes subject to change based upon test results from lab. Report Pooled on April 15,2013 4:42 PM Gr4129 Page 17 Have more questions? You can find us at: http://www.bakerhug hes.com/products-and-services/pressure-pumping Packet Page-334- Operator: DANA HUGHES CO 9/24/2013 10.F. Well Name: Collier 22-3H ��,�� Job Description: 7-5/8" Longstring @ 12,500' MD BAKER Date: April 15, 2013 HUGHES Proposal No: 8799501070 PRICE ESTIMATE Product Material QTY UNIT PRODUCT DESCRIPTION NET AMOUNT 958194lbs Cement, Class H, bulk 12,741.40 988 lbs Potassium Chloride, KCL, 50 lb bag 1,185.60 783 lbs Bentonite, bulk 248.99 114 lbs R-3, 50 lb bag 166.35 53 741bs Fly Ash (Pozzolan), bulk 265.85 1680 gals Mud Clean II 1,085.28 20 lbs CD-32, 50 lb bag 101.08 2 gals FP-6L, 55 gl drum 79.23 122 lbs FL-25 1,047.74 1 ea 7-5/8"Top Cem Plug, Nitrile cvr, Phen 199.55 1 ea 7-5/8" Bot Cern Plug, Nitrile cvr, Phen 364.00 Product Material Subtotal: $17,485.07 Service Charges QTY UNIT PRODUCT DESCRIPTION NET AMOUNT Ilea Personnel Per Diem Chrg - Cement Svc 210.00 1,ea Environmental Management-Dispose Mtls 50.00 1044 cu ft ,Bulk Material Blending Charge 2,162.12 Service Charges Subtotal: $2,422.12 Customer will be charged for all'SPECIAL PROPPANTS'delivered to location,whether they are pumped or not. All proppants other than standard grade frac sand are considered'SPECIAL PROPPANTS'. The technical data contained in this proposal is based on the best information available at the time of writing and is subject to further analysis and testing. The pricing data contained in this proposal are estimates only and may vary depending on the work actually performed. Pricing does not include federal,state and local taxes or royalties. This quotation is based on Baker Hughes being awarded the work on a first call basis and within thirty(30)days of the proposal date. These prices will be subject to review if the work is done after thirty(30)days from the proposal date,or on a second or third call basis. Report Printed on April 15,2013 4:42 PM Page 18 Gr4161 Have more questions?You can find us at:http://www.bakerhughes.com/products-and-services/pressure-pumping Packet Page-335- Operator: DANA HUGHES CO i 9/24/2013 10.F. Well Name: Collier 22-3H I/, MMI Job Description: 7-5/8" Longstring @ 12,500' MD BAKER Date: April 15, 2013 HUGHES Proposal No: 879950107C PRICE ESTIMATE Equipment QTY UNIT PRODUCT DESCRIPTION NET AMOUNT 118hrs Cement Pump Casing, 12001 - 13000 ft 9,918.00 2 pump/hr Fuel per pump charge- cement 140.50 1 job Cement Head 315.40 1 job Data Acquisition, Cement, Standard 809.40 1670 miles Mileage, Heavy Vehicle 7,520.01 1670 miles Mileage, Auto, Pick-Up or Treating Van 4,251.82 1 job Circulating Equipment 904.40 Equipment Subtotal: $23,859.53 Customer will be charged for all'SPECIAL PROPPANTS'delivered to location,whether they are pumped or not. All proppants other than standard grade frac sand are considered'SPECIAL PROPPANTS'. The technical data contained in this proposal is based on the best information available at the time of writing and is subject to further analysis and testing. The pricing data contained in this proposal are estimates only and may vary depending on the work actually performed. Pricing does not include federal,state and local taxes or royalties. This quotation is based on Baker Hughes being awarded the work on a first call basis and within thirty(30)days of the proposal date. These prices will be subject to review if the work is done after thirty(30)days from the proposal date,or on a second or third call basis. Report Printed on April 15.20134'42 PM Page 19 Gr4161 Have more questions?You can find us at:http://www.bakerhughes.com/products-and-services/pressure-pumping Packet Page -336- Operator: DANA HUGHES CO wi 9/24/2013 10.F. Well Name: Collier 22-3H Job Description: 7-5/8" Longstring @ 12,500' MD BAKER Date: April 15, 2013 HUGHES Proposal No: 879950107C PRICE ESTIMATE Freight/Delivery Charges QTY UNIT PRODUCT DESCRIPTION NET AMOUNT 400441tonmi Bulk Delivery, Dry Products 47,332.01 Freight/Delivery Charges Subtotal: $47,332.01 TOTAL: $91,098.73 Notes Additional Standby, daily and Remote Crew Charges may be applied with the following pricing: *Price based on pumping for 8 hours* DESCRIPTION UOM QTY GROSS DISC NET Services Supervisor-daily charge day 1 $1,460.00 50%$730.00 Equipment Operator-daily charge day 1 $1,460.00 50%$730.00 Remote Location Crew Expense/Man day 1 $390.00 50%$195.00 Cement Pumping, Additional hrs hrs 1 $900.00 50%$450.00 Bulk Delivery, Standby Charge hrs 1 $226.50 50%$113.25 Field Storage Bin daily Charge after first 5 days $100.00 per day Service Supervisor and Equipment Operator daliy Charges begin when crew arrives on location, and will be assessed every 24-hour period until the job is completed. Remote location crew expense will be assesed for each day of hotel rooms required for crew, from the time they are dispatched from Columbia, MS until they return to Columbia, MS. Cement Pumping Additional hours will be assessed for each hour that the pump is on location beyond the initial 8-hours. Bulk Delivery Standby will be assessed, per peice of bulk equipment, for each hour on location, when not pumping. Discounts applied to the prices in this proposal will remain effective for a period of thirty (30) days from the date of the proposal. Should Customer make modifications to the components of this proposal, Baker Hughes reserves the right to adjust any applied discounts. Baker Hughes appreciates the opportunity to submit pricing and looks forward to nrovirtinn Rest-in-Class services in Sunnort of the unoominn nroiect(s). Customer will be charged for all'SPECIAL PROPPANTS'delivered to location,whether they are pumped or not. All proppants other than standard grade frac sand are considered'SPECIAL PROPPANTS'. The technical data contained in this proposal is based on the best information available at the time of writing and is subject to further analysis and testing. The pricing data contained in this proposal are estimates only and may vary depending on the work actually performed. Pricing does not include federal,state and local taxes or royalties. This quotation is based on Baker Hughes being awarded the work on a first call basis and within thirty(30)days of the proposal date. These prices will be subject to review if the work is done after thirty(30)days from the proposal date,or on a second or third call basis. Report Printed on April 15,20134:42 PM Page 20 Gr4161 Have more questions?You can find us at:http://www.bakerhughes.com/products-and-services/pressure-pumping Packet Page-337- 9/24/2013 10.F. r&iu CONDITIONS BAKER HUGHES The services and products will be provided under the attached Baker Hughes Incorporated Worldwide Terms and Conditions. By requesting that Baker Hughes provide the services and products described herein, Customer accepts all of the terms and conditions of this proposal, including the attached Baker Hughes Incorporated Worldwide Terms and Conditions. In the event that Customer and Baker Hughes have executed a Master Services Agreement covering the services and products to be provided, such Master Services Agreement shall govern in place of the Baker Hughes Worldwide Terms and Conditions. Report Printed on APR-15-13 04:42 Gr4175 Packet Page-338- 9/24/2013 10.F. NOTE:THIS AGREEMENT CONTAINS PROVISIONS THAT INDEMNIFY AND/OR RELEASE THE INDEMNIFIED AND/OR RELEASED PARTY FROM THE CONSEQUENCES OF ITS OWN NEGLIGENCE AND OTHER LEGAL FAULT. BAKER TERMS AND CONDITIONS HUGHES Worldwide Orders for rental equipment("Equipmenr'),services("Services"),and the supply or sate of products,chemicals,or NOTWITHSTANDING PARAGRAPH B.ABOVE,SHOULD CUSTOMER FAIL TO RECOVER SUCH TOOLS equipment("Products")to be provided by Baker Hughes Incorporated through Its direct or indirect subsidiaries(in each LOST IN THE WELL,OR SHOULD SUCH TOOLS BECOME DAMAGED IN THE WELL,OR DAMAGED case such subsidiary is referred to herein as"BHI"and shall be severally liable for at obligations of BHI herein arising DURING RECOVERY,CUSTOMER SHALL REIMBURSE BHI FOR THE COST OF REPAIRING ANY TOOLS from or related to the order)to is customers(each a"Customer")are subject to acceptance by BHI,and any orders so SO DAMAGED,OR THE REPLACEMENT VALUE OF ANY SUCH TOOLS THAT ARE LOST OR NOT accepted will be governed by the terms and conditions stated herein and any additional terms proposed or agreed to in REPAIRABLE. writing by an authorized representative of BHI(these terms and conditions and any such additional terms collectively referred to herein as the"Agreement"). FURTHER,NOTWITHSTANDING PARAGRAPH B.ABOVE,ALL RISKS ASSOCIATED WITH LOSS OF OR DAMAGE TO TOOLS WHILE IN THE CUSTODY OR CONTROL OF CUSTOMER OR DURING 1.PAYMENT TFRMS TRANSPORTATION ARRANGED BY OR CONTROLLED BY CUSTOMER,SHALL BE BORNE BY Unless alternate payment terms are specified or approved by the BHI Credit Department,all charges billed by BHI must CUSTOMER. be paid within thirty(30)days of the date of invoice.For invoices unpaid after thirty(30)days,at BHI's option,discounts from list price may be revoked and interest may be charged at the rate of ten percent(tS%)per annum unless such rate E.NOTWITHSTANDING ANYTHING CONTAINED IN THIS AGREEMENT TO THE CONTRARY,CUSTOMER contravenes local law in which case the interest will accrue at the maximum rate allowed by law.Operating,production SHALL RELEASE,INDEMNIFY,DEFEND AND HOLD BHI INDEMNITEES HARMLESS FROM AND AGAINST or well conditions that prevent satisfactory operation of Equipment,Services or Products do not relieve Customer of its ANY AND ALL CLAIMS ASSERTED BY OR IN FAVOR OF ANY PERSON,PARTY,OR ENTITY(INCLUDING payment responsibility. BHI INDEMNITEES)ARISING OUT OF OR RELATED TO:(I)LOSS OF OR DAMAGE TO ANY WELL OR HOLE(INCLUDING BUT NOT LIMITED TO THE COSTS OF RE-DRILL AND SIDETRACK),(II)BLOWOUT, 2.CANCELLATION AND RETURNS FIRE,EXPLOSION,CRATERING OR ANY UNCONTROLLED WELL CONDITION(INCLUDING BUT NOT Products:Orders for Products that are subject to cancellation after acceptance by BHI,but before delivery,will be LIMITED TO THE COSTS TO CONTROL A WILD WELL AND THE REMOVAL OF DEBRIS),(III)DAMAGE TO subject to a restocking charge of at least twenty-five percent(25%),plus any packing and transportation costs incurred ANY RESERVOIR,GEOLOGICAL FORMATION OR UNDERGROUND STRATA OR THE LOSS OF OIL, before delivery. Products specially built or manufactured to Customer specifications,or orders for substantial quantities WATER OR GAS THEREFROM,(IV)THE USE OF BHI INDEMNITEES'RADIOACTIVE TOOLS OR ANY manufactured specially for Customer,may not be cancelled. CONTAMINATION RESULTING THEREFROM(INCLUDING BUT NOT LIMITED TO RETRIEVAL OR Products may be returned for credit only with prior written authorization from BHI.Such Products must be unused,in NOT UAMI EDtiTO THE COST OF)CONTROL,R MOVAL,CLEAN-UP AND REMEDIATION,OR(Vt(DAMAGE reusable condition,and with original unopened containers.Credit will be issued for the quantity returned at the original TO,OR ESCAPE OF ANY SUBSTANCE FROM,ANY PIPEUNE,VESSEL,OR STORAGE OR PRODUCTION purchase price,less a restocking charge of at least twenty-five percent(25%)and any actual packing and transportation FACILITY. costs incurred by BHI.No credit will be given for shipping charges incurred by Customer. F.CUSTOMER ACKNOWLEDGES THAT CUTTINGS AND WASTE REMAIN CUSTOMER'S Eouiomen lServices:In the event Customer cancels an order for Services,Customer shall be liable for all costs incurred RESPONSIBILITY.CUSTOMER SHALL RELEASE,INDEMNIFY,DEFEND AND HOLD BHI INDEMNITEES by BHI in the mobilization/demobilization related thereto,and any other reasonable costs incurred by BHI incident to such HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS,ASSERTED BY OR IN FAVOR OF ANY PERSON cancellation.In the event Customer cancels an order for Equipment,Customer shall be liable for any transportation OR ENTITY ARISING OUT OF OR RELATED TO THE TRANSPORTATION,STORAGE,TREATMENT, costs incurred by BHI in the mobilization/demobilization of the Equipment.In addition,a restocking charge of at least DISPOSAL OR HANDLING OF CUTTINGS AND WASTE,INCLUDING,WITHOUT LIMITATION, twenty-five percent(25%)of the original Equipment order may be applied at BHI's sole discretion. CONTAMINATION OF,OR ADVERSE EFFECTS ON THE ENVIRONMENT OR ANY FORM OF PROPERTY, OR ANY VIOLATION OR ALLEGED VIOLATION OF STATUTES,ORDINANCES,LAWS,ORDERS.RULES 3.THIRD-PARTY CHARGES,TAXES AND REGULATIONS(INCLUDING,WITHOUT LIMITATION,ALL CLAIMS UNDER THE COMPREHENSIVE Customer shall pay all third-party charges,in compliance with BHI's current price list,and any sales,use,rental or other ENVIRONMENTAL RESPONSE,COMPENSATION,AND LIABILITY ACT("CERCLA"),42 U.S.C.§§9601 ET taxes that may be applicable to transactions hereunder.Customer shall pay all applicable customs,excise,import and SEQ.,OR OTHER APPLICABLE STATUTES OR REGULATIONS). • other duties unless otherwise agreed to in writing by an authorized representative of BHI.Customer shall provide •-" " necessary import licenses and extensions thereof. G.CUSTOMER SHALL RELEASE,DEFEND,INDEMNIFY AND HOLD BHI INDEMNITEES HARMLESS FROM AND AGAINST ANY CLAIMS FOR CONSEQUENTIAL DAMAGES ASSERTED BY OR IN FAVOR OF ANY 4.RISK OF LOSS AND TITLE,QON,SIcINMFNT$It')u;F MEMBER OF CUSTOMER INDEMNITEES.BHI SHALL RELEASE,DEFEND,INDEMNIFY AND HOLD Unless otherwise agreed to in writing between Bill and Customer:(i)for Product sales within the United States of CUSTOMER INDEMNITEES HARMLESS FROM AND AGAINST ANY CLAIMS FOR CONSEQUENTIAL America,title and risk of loss shall pass to Customer as soon as the Products depart BHI's point of origin;and(ii)for DAMAGES ASSERTED BY OR IN FAVOR OF ANY MEMBER OF BHI INDEMNITEES. Product sales outside the United States of America,INCOTERM 2010"CPT"shall apply with the follovdng exception: TITLE AND RISK OF LOSS REMAIN WITH BHI UNTIL THE PRODUCTS REACH THE PORT OF ENTRY.For H.In the event this agreement is subject to the indemnity or release limitations in Chapter t27 of the Texas Civil Products provided on consignment,the risk of loss shall pass to Customer as soon as the Products depart BHI's point of Practices and Remedies Code(or any successor statute),and so long as such limitations are in force,each party origin;however,the title shall remain with BHI until the Product is used by Customer. covenants and agrees to support the mutual indemnity and release obligations contained in Paragraphs B.and C.above by carrying equal amounts of insurance(or qualified self-insurance)in an amount not less than U.S. In the event BHI agrees to store Products after title passes to Customer,the risk of loss shall remain with Customer.If $5,000,000.00 for the benefit of the other party as indemnitee. any such Products remain on BHI's premises for more than two(2)years from the date initially placed in storage,title shah revert back to BHI,and BHI may resell or scrap any such Products with no liability to Customer for any proceeds I.THE EXCLUSIONS OF LIABILITY,RELEASES AND INDEMNITIES SET FORTH IN PARAGRAPHS B. generated therefrom. THROUGH G.OF THIS ARTICLE 5,AND ARTICLES 6 AND 10,SHALL APPLY TO ANY CLAIM(S)WITHOUT 5. LIABILITIES RELEASES AND INDEMNIFICATION: REGARD TO THE CAUSE(S)THEREOF INCLUDING BUT NOT LIMITED TO PRE-EXISTING CONDITIONS, WHETHER SUCH CONDITIONS BE PATENT OR LATENT,THE UNSEAWORTHINESS OF ANY VESSEL OR A.In this Agreement(i)"BHI Indemnitees"means BHI,its parent,subsidiary and affiliated or related companies;its VESSELS,IMPERFECTION OF MATERIAL,DEFECT OR FAILURE OF PRODUCTS OR EQUIPMENT, subcontractors at any tier;and the officers,directors,employees,consultants,and agents of all of the foregoing;(ii) BREACH OF REPRESENTATION OR WARRANTY(EXPRESS OR IMPLIED),ULTRAHAZARDOUS "Claims"means all claims,demands,causes of action,liabilities,damages,judgments,fines,penalties,awards,losses, ACTIVITY,STRICT LIABILITY,TORT,BREACH OF CONTRACT,BREACH OF DUTY(STATUTORY OR costs,expenses(including,without limitation,attorneys'fees and costs of litigation)of any kind or character arising out OTHERWISE),BREACH OF ANY SAFETY REQUIREMENT OR REGULATION,OR THE NEGLIGENCE, of,or related to,the performance of or subject matter of this Agreement;(iii)"Consequential Damages"means any GROSS NEGLIGENCE,WILLFUL MISCONDUCT,OR OTHER LEGAL FAULT OR RESPONSIBILITY OF ANY indirect,special,punitive,exemplary or consequential damages or losses(whether foreseeable or not at the date of this PERSON,PARTY,OR ENTITY(INCLUDING THE INDEMNIFIED OR RELEASED PARTY),WHETHER SUCH Agreement)under applicable law and damages for lost production,lost revenue,lost product,lost profit,lost business, FORM OF NEGLIGENCE BE SOLE,JOINT OR CONCURRENT,ACTIVE OR PASSIVE. lost business opportunities,or charges for rig time,regardless of whether the same would be considered direct,indirect, special,punitive,exemplary or consequential damages or losses under applicable law;(iv)"Customer Indemnitees" J.REDRESS UNDER THE INDEMNITY PROVISIONS SET FORTH IN THIS ARTICLE 5 SHALL BE THE means Customer,its parent,subsidiary and affiliated or related companies;its co-lessees,co-owners,partners,joint EXCLUSIVE REMEDIES AVAILABLE TO THE PARTIES HERETO FOR THE CLAIMS COVERED BY SUCH operators and joint venturers;its client or customer if it is not the end user of the Equipment,Services,or Products;its PROVISIONS. other contractors at any tier;and the officers,directors,employees,consultants,and agents of all of the foregoing;(v) "Cuttings and Waste"means any drill cuttings and associated muds,waste or materials from the well arising from or 6.DIRECTIONAL DRILLING processed pursuant to this Agreement;and(vi)"Tools"means Equipment and any of BHI Indemnitees'instruments, Customer shall furnish BHI with a well location plan(certified by Customer as correct)setting out the surface equipment,or tools. location of the well,the lease,license,or property boundary lines,and the bottom hole location of Customer's directionally drilled well.If,in the course of drilling the well,it becomes evident to BHI that the certified plan is in B.BHI SHALL RELEASE,INDEMNIFY,DEFEND AND HOLD CUSTOMER INDEMNITEES HARMLESS FROM AND error,BHI shall notify Customer of the error,and Customer shall be responsible to regulate all directional drilling AGAINST ANY AND ALL CLAIMS ARISING OUT OF OR RELATED TO(I)PERSONAL OR BODILY INJURY,ILLNESS, factors so that Customer's well bottom hole location will be situated on Customer's property,license,or leasehold SICKNESS,DISEASE OR DEATH OF ANY MEMBER OF BHI INDEMNITEES,AND(II)LOSS,DAMAGE OR at total depth of the well being drilled.CUSTOMER SHALL RELEASE,DEFEND,INDEMNIFY AND HOLD BHI DESTRUCTION OF REAL OR PERSONAL PROPERTY,WHETHER OWNED,LEASED,OR CHARTERED,OF ANY INDEMNITEES HARMLESS FROM AND AGAINST ANY CLAIMS ARISING OUT OF,OR RELATED TO, MEMBER OF BHI INDEMNITEES. SUBSURFACE TRESPASS ARISING OUT OF DIRECTIONAL DRILLING OPERATIONS OR OTHER C.CUSTOMER SHALL RELEASE,INDEMNIFY,DEFEND AND HOLD BHI INDEMNITEES HARMLESS FROM AND OPERATIONS PERFORMED BY BHI INDEMNITEES OR CUSTOMER INDEMNITEES. AGAINST ANY AND ALL CLAIMS ARISING OUT OF OR RELATED TO(I)PERSONAL OR BODILY INJURY,ILLNESS, 7. T.,. - p-N►/01 •Is A •-I SICKNESS,DISEASE OR DEATH OF ANY MEMBER OF CUSTOMER INDEMNITEES,AND(II)LOSS,DAMAGE OR If Customer is not the sole owner of the mineral interests,the well or the field,Customer's request for Services, DESTRUCTION OF REAL OR PERSONAL PROPERTY,WHETHER OWNED,LEASED,OR CHARTERED,OF ANY Equipment or Products shall constitute Customer's warranty that Customer is the duly constituted agent of each MEMBER OF CUSTOMER INDEMNITEES. and every owner and has full authority to represent the interests of the some with respect to all decisions taken throughout the provision of any Services,Equipment or Products hereunder.CUSTOMER SHALL RELEASE, D.SHOULD TOOLS BECOME LOST OR DAMAGED IN THE WELL OR HOLE WHEN PERFORMING OR DEFEND,INDEMNIFY AND HOLD BHI INDEMNITEES HARMLESS FROM AND AGAINST ALL CLAIMS ATTEMPTING TO PERFORM THE SERVICES HEREUNDER,IT IS UNDERSTOOD THAT CUSTOMER SHALL MAKE RESULTING FROM THE ALLEGATION BY ANY PERSON OR ENTITY THAT CUSTOMER HAS EVERY EFFORT TO RECOVER THE LOST OR DAMAGED TOOLS AT ITS SOLE COST.CUSTOMER SHALL MISREPRESENTED OR LACKED SUFFICIENT AUTHORITY TO REPRESENT SUCH PERSON OR ENTITY ASSUME THE ENTIRE RESPONSIBILITY FOR FISHING OPERATIONS IN THE RECOVERY OR ATTEMPTED AS WARRANTED BY CUSTOMER IN THIS ARTICLE. RECOVERY OF ANY SUCH LOST OR DAMAGED TOOLS.NONE OF BHI'S EMPLOYEES ARE AUTHORIZED TO DO ANYTHING WHATSOEVER,NOR SHALL ANY OF BHI'S EMPLOYEES BE REQUIRED BY CUSTOMER TO DO 8.ACCESS TO WELL AND WELL SITE STORAGE ANYTHING,OTHER THAN CONSULT IN AN ADVISORY CAPACITY WITH CUSTOMER IN CONNECTION WITH With respect to onshore and offshore operations,Customer shall provide at its expense adequate means of SUCH FISHING OPERATIONS. transportation required for Tools,Products and BHI personnel to gain access to or return from a well site,and Rev.1 January Report Printed on: APR-15-13 04 42 Gr4175 Packet Page -339- 9/24/2013 10.F. 0 shall oboe in at Customers expense all permits,licenses or other authorization required for BHI to enter upon work PRODUCTION FORECASTS AND RESERVE ESTIMATES,FURNISHED BY BHI TO CUSTOMER areas form the purposes contemplated.When necessary to repair roads or bridges,or to provide transportation to HEREUNDER),AND CUSTOMER HEREBY AGREES TO RELEASE,DEFEND,INDEMNIFY AND HOLD move Tools,Products or BHI personnel,such shall be arranged and paid for by Customer. AND/OR INDEMNITEES HM HARMLESS FROM ANY CLAIMS ARISING OUT OF THE USE OF SUCH INTERPRETATIONS Customer shall provide proper storage space at the well site,meeting all applicable safety and security requirements and consistent with good industry practices,for the Tools and Products,including,without limitation,all explosive and BHI will endeavor to transmit data to Customer as accurately and securely as practicable in accordance with radioactive materials. current industry practice.Notwithstanding the foregoing,BHI does not warrant the accuracy of data transmitted by electronic processes and will not be responsible to Customer for accidental or intentional interception of such data 9.RADIOACTIVE SOURCES by others. Radioactive sources which may be used in BHI's'Services are potentially dangerous. Customer agrees to comply with all applicable governmental regulations governing the use and handling of radioactive sources. In the event a BHI does not represent or warrant that the Products are or will be compliant with the requirements of REACH(the radioactive source becomes stuck in a well,Customer,at Customer's sole risk and expense will make a reasonable Registration Evaluation Authorisation and Restriction of Chemicals Regulation 1907/2006,as amended)and all II attempt to recover such radioactive source in accordance with 10 C.F.R§39.15(a)(1)-(4)or other applicable implied warranties as to compliance with REACH("REACH Compliance")are hereby excluded to the fullest extent regulations and use special precautions to prevent damaging the source during recovery operations.If the source permitted by law.Without prejudice to the foregoing,BHI shall use reasonable endeavors to obtain or maintain cannot be recovered,Customer,at Customers sole risk and expense,will isolate the radioactive material by REACH Compliance in respect of the Products where required by law,unless it is Customer's responsibility to cementing it in place or by other means consistent with 10 C.F.R§39.15 or other applicable statutes or regulations. obtain or maintain REACH Compliance or any non-compliance is caused by any act or omission ot Customer.In the event PHI receives written notice horn any competent authority,or in its reasonable opinion decides,that any 10.WARRANTY of the Products are not or will not become REACH Compliant,it shall inform Customer in writing witten a A. rvi PHI warrants that the Services shall conform to the material aspects of the specifications agreed to in reasonable time and may suspend any further deliveries of the relevant Products and/or terminate the Order. writing by BHI and Customer. In the event that the Services fail to conform to such specifications,BHI shall re- Customer shall promptly provide such intonation to BHI as may be required in order to obtain and maintain perform that part of the non-conforming Services,provided PHI is notified thereat in writing by Customer prior to REACH Compliance in respect of the Products and shall comply with its obligations under REACH. Riffs departure from the work site. THIS ARTICLE 10 SETS FORTH CUSTOMER'S SOLE REMEDIES AND BHI'S ONLY OBLIGATION WITH B.Equipment:BHI warrants that the Equipment will be of the types specified by and agreed to in writing by BHI and REGARD TO DEFECTIVE OR NON-CONFORMING SERVICES,EQUIPMENT OR PRODUCTS.EXCEPT AS IS Customer,and will be in good operating condition. Liability for loss or damage to Equipment is set forth in Article 5. NO OTHERW WARRANTY OR GUARANTEE OF ANY KIND,EXPRESS OR IMP ED,INCLUDING NO IMPLIED MAKES C.Products;(Excluding drill bits,electric submersible pumps and associated cable and surface equipment,specialty WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE,REGARDING ANY chemical Products and specialty Products):Bell warrants that the Products shall conform to BHI's published SERVICES PERFORMED OR EQUIPMENT OR PRODUCTS SUPPLIED BY BHI HEREUNDER.IN NO EVENT specifications or the specifications agreed to in writing by BHI and Customer.If any of the Products tall to contort to SHALL BHI BE LIABLE FOR RIG TIME INCURRED BY CUSTOMER INDEMNITEES AS A RESULT OF such specifications upon inspection by BHI,BHI,at its option,shall repair or replace the non-conforming Products DEFECTIVE OR NON-CONFORMING SERVICES,EQUIPMENT OR PRODUCTS. with the type originally furnished or issue credit to the Customer,provided BHI is notified thereof in writing within 11.LOST EQUIPMENT INDEMNITY BUY-BACK thirty(30)days after delivery of the particular Products. In.some 1ppQUIP MEN INDEMNITY I Y BUY-BACK buy-back('LEIB")is available for some Tools.LEIB must be D.prlll Bits:BHI warrants that the drill bits to be provided by BHI pursuant to this Agreement shall conform to BHI's purchased by Customer prior to the Tools leaving BHI's point of origin.Regardless of LEIB,Customer shall make published specifications. If any of the drill bits fall to conform to such specifications upon inspection by BHI,BHI,at every reasonable effort to recover BHI's Tools lost or damaged in a well or hole in accordance with Paragraph 5D. its option,shall repair or replace the non-contorting drill bits with the type originally furnished or issue credit to the BHI reserves the right not to offer LEIB at its sole discretion. Customer,provided BHI is notified thereof in writing within ninety(90)days from the date of shipment. 12.JNSURANCE E.Electric Submersible Pumps and Associated Cable and Surface Equipment:BHI warrants that the electrical Upon written request,each party shall furnish to the other party certificates of insurance evidencing that adequate submersible pumps and associated cable and surface equipment to be provided by PHI pursuant to this Agreement insurance to support each party's obligations hereunder has been secured.To the extent ot each party's release shall conform to BHI's published specifications. If any of the electrc submersible pumps or associated cable or and indemnity obligations hereunder,each party agrees that all such insurance policies shall(i)be primary to the surface equipment tail to conform with such specifications upon inspection by BHI,BHI,at its option,shall repair or other party's insurance,(il)include the other party,its parent,subsidiary and affiliated or related companies,its replace the non-conforming electric submersible pumps or associated cable or surface equipment with the type subcontractors and other contractors,and its and their respective officers,directors,employees,consultants and originally furnished,provided BHI is notified thereof in writing within the earlier of twelve(12)months from the date of agents as additional insured,and(iii)be endorsed to waive subrogation against the other party,its parent, installation or eighteen(18)months from the date of shipment.Warranty claims by Customer must be submitted to subsidiary and affiliated or mlated companies,its subcontractors and other contractors,and its and thee respective BHI within sixty(60)days of the failure date of the electric submersible pumps or associated cable or surface officers,directors,employees,consultants and agents. equipment. 13.CHANGE OF DESIGN F Soeciait..qtr mi al Prod tat:BHI warrants that the specialty chemical Products to be provided by BHI pursuant BHI expressly reserves the right to change or modify the design and construction of any of its Products without to this Agreement shall,upon departure from BHI's point of origin,conform to the published physical and chemical obligation to furnish or install such changes or modifications on Products previously or subsequently sold. specifications established by BHI for each such Product. It any of the specialty chemical Products fail to conform to such specifications,BHI,at its option,shall replace the non-conforming specialty chemical Products with the type 14.PATENTS originally furnished or issue credit to the Customer,provided PHI is notified thereof in writing within thirty(30)days BHI warrants that the use or sale of Equipment or Products hereunder will not infringe valid patents of others by 0 atter the specialty chemical Products depart BHI's point of origin. reason of the use or sale of such Equipment or Products per se,and hereby agrees to hold CUSTOMER harmless against judgment for damages for infringement of any such patent,provided that Customer shall promptly notify G.Soecialtv Products:In the event BHI is to provide Products to Customer based upon Customer's specific request BHI in writing upon receipt of any claim for infringement,or upon the filing of any such suit for infringement, that BHI develop,manufacture,test or put to use Products that are intended to satisfy a unique need identified by whichever first occurs,and shall afford BHI full opportunity,at BHI's option and expense,to answer such claim or Customer and are not"standard"Products of BHI,Customer hereby recognizes and agrees that the specialty threat of suit.assume the control of the defense of such suit,and settle or compromise some in any way BHI sees Products being provided do not necessarily have or contain the some or similar characteristics as BHI's"standard" fit.Bill does not warrant that such Equipment or Products:(i)will not infringe any such patent when not of BHI's Products,including,but not limited to,a historical performance against which tuture performance can be measured. manufacture,or specially made,in whole or in part,to the Customer's design specifications;or(ii)If used or sold in In developing.manufacturing,testing and putting to use any specialty Products,BHI will be relying upon information combination with other materials or apparatus or used in the practice of processes,will not,as a result of such and specifications provided by Customer relating to the unique needs of Customer.As such,BHI shall have no combination or use,infringe any such patent,and BHI shall not be liable and does not hold Customer harmless for responsibility for the design,manufacture or engineering of any such specialty Products,even though BHI may have damages or losses of any nature whatsoever resulting from actual or alleged patent infringement arising pursuant participated in the development and manufacture of the specialty Products,or for any Customer-furnished materials, to(i)and(ii)above.THIS PARAGRAPH STATES THE ENTIRE RESPONSIBIUTY OF BHI CONCERNING intonation and specifications. If,upon inspection by BHI,any of the specialty Products fail to meet the PATENT INFRINGEMENT specifications agreed to in writing by Customer and BHI,then BHI shall,at its option,repair or replace the non- conforming specialty Products with(i)the type originally furnished to Customer,or(ii)substituted Products having 15.CONFIDFNTIALITY BHI's"standard"specifications and qualifications. Each party shall maintain all data and information obtained from the other party in strict confidence,subject only to disclosure required by law or legal process. In the event that BHI owns copyrights to,patents to,or has filed patent H.Discharge Services: Except to the extent that BHI has agreed to provide its discharge compliance engineering applications on,any technology related to the Services,Products or Equipment furnished by BHI hereunder,and if services("Discharge Services")to Customer pursuant to this Agreement,BHI shall have no responsibility for BHI makes any improvements on such technology,then such improvements shall not fall within the confidentiality achievement of and compliance with any specific oil retention or similar requirements mandated by any applicable obligations of BHI included herein,and BHI shall own all such improvements,including drawings,specifications. local,state or federal law or regulation.If Discharge Services are rendered by BHI and agreed oil retention or similar calculations and other documents. requirements are not met,then BHI shall,at its option,re-perform the Discharge Services,or provide a credit to Customer to cover any documented additional disposal costs incurred by Customer as a result of the nonconforming The design,construction,appli cation and operation of BHI's Services,Equipment and Products embody proprietary Discharge Services,provided that such credit shall be limited to 3%of the amount charged for the nonconforming and confidential information.Customer shall maintain this information in strict confidence and shall not disclose it Services. Discharge to others.subject only to disclosure required by law or legal process.To the extent permissible by law,Customer 9 shall not resell the Products or Equipment(or drawings related thereto)to others or reverse engineer or permit BHI's warranty obligations hereunder are non-transferrable and shall not apply if the nonconformity was caused by others to reverse engineer,for the purpose of manufacturing,similar Products or Equipment. (i)Customer's failure to properly store or maintain the Products or Equipment,(mil abnormal well conditions,abrasive materials,corrosion due to aggressive fluids or incorrect specifications provided by Customer,(iii)unauthorized 16.UENS ATTACHMENTS AND ENCIIMBRANCF$ alteration or repair of the Products or Equipment,(iv)the Products or Equipment are lost or damaged while on Customer grants to BHI a lien upon and a security interest in(i)any interest that Customer now owns or hereafter Customer's site due to Customer's or any third party's negligence,vandalism or force majeure(including.but not acquires in the lands,leasehold interests,pipelines,pipeline right-of-ways,personal property and fixtures arising limited to,lightning),or(v)use or handling of the Products or Equipment by Customer in a manner inconsistent with out of,pertaining to,located on,or used connection with the development of,pthhem)ner l p oierty on which the BHI's recommendations. Further,BHI's warranty obligations shall terminate if Customer fails to perform its Services,Products,or E ui ent were rformed or installed(the"Mineral Pro gas when obligations under this or any other Agreement between the parties. extracted from the Mineral Property,including the proceeds thereof,(iii)the contract rights,inventory and general intangibles pertaining to the Mineral Property,and(iv)any clam against any working interest owner of the Mineral All non-conforming Products shall be delivered to the service facility designated by BHI.All transportation charges Property arising from nonpayment of cot interest billings or lease operating expenses.This lien and security and removal and reinstallation charges related to the repair or replacement of non-conforming Products shall be interest shall be for the purpose of securing performance of Customer's obligations to BHI under this Agreement. borne by Customer.Any parts for which BHI provides replacement under this warranty shall become the property of Customer authorizes BHI to have filed a financing statement and any other instruments BHI determines to BHI.With regard to materials or equipment furnished by third party vendors and/or suppliers,BHI's liability therefor be necessary or appropriate to perfect the lien and security interest created hereby.Upon request,Customer shall shall be limited to the assignment of such third party vendor's or supplier's warranty to Customer,to the extent such execute any document determined by PHI to be necessary or appropriate to perfect this lien and security interest is warranties are assignable.The warranty period for any repaired or replaced Products shall be only for the remainder located.If BHI and obtain the real pal pro execution recording din statutes dos of the ono within which h the Mineral Pro of ime after of the original warranty period. the request is made,then Customer hereby appoints BHI as Customer's true and lawful agent and attorney-in-fact, Interpretations,research,analysis,recommendations,advice or interpretational data(specifically including,without to execute all documents on its behalf,and to otherwise take such actions on its behalf,as BHI deems necessary limitation,any preliminary cuttings reinjection program and any engineering designs,geological studies or analyses, or appropriate.to perfect the lien and security interest created or contemplated hereby.This appointment is well programs,reservoir models,or drilling production optimization or management programs)("Interpretations remains with an nditinterest Tand may not and security revolted eor created long as as arty portion on of Cost to,and obligations t of,hereunder and/or Recommendations")turnished by BHI hereunder are opinions based upon inferences from measurements, g empirical relationships and assumptions,and industry practice,which inferences,assumptions and practices are not liens and security interests now existing or hereafter coming into existence,and securing the performance of infallible,and with respect to which professional geologist&engineers,drilling consultants.and analysts may differ. Customer's obligations hereunder,whether voluntary or involuntary,including any liens arising by statute or •Accordingly,BHI does not warrant the accuracy,correctness,or completeness of any such Interpretations and/or common law in favor of mechanics and/or materialmen. Recommendations,or that Customer's reliance or any third party's reliance on such Interpretations and/or Recommendations will accomplish any particular results. CUSTOMER ASSUMES FULL RESPONSIBILITY FOR Should Customer commit a breach of any of the terms and conditions of this Agreement,be named as a debtor in THE USE OF SUCH INTERPRETATIONS AND/OR RECOMMENDATIONS AND FOR ALL DECISIONS BASED a bankruptcy proceeding,igorr become dd any insolvent;or other Customer,ony of its h assets,C the subject ctof a or THEREON(INCLUDING,WITHOUT LIMITATION,DECISIONS BASED ON ANY OIL AND GAS EVALUATIONS, receivership proceeding; Y person entity levy property i Rev.1 January 2012 ,,. Gr4175 Report Printed on: APR-15-13 04:42 Packet Page -340- 9/24/2013 10.F. equipment,BHI shall immediately have the right,without notice and without liability for trespass or damages,to BY FINAL AND BINDING ARBITRATION CONDUCTED IN ACCORDANCE WITH THE UNCITRAL ARBITRATION retake and remove any of its Products or Equipment wherever it may be found.CUSTOMER SHALL RELEASE, RULES(THE"RULES"). DEFEND,INDEMNIFY AND HOLD BHI INDEMNITEES HARMLESS FROM ANY AND ALL LIENS AND ENCUMBRANCES AGAINST PRODUCTS OR EQUIPMENT FURNISHED HEREUNDER AND SHALL RETURN The Tribunal shall be composed of three arbitrators,with each party appointing one arbitrator,and the two arbitrators SAME PROMPTLY TO BHI FREE OF ANY LIENS OR ENCUMBRANCES. so appointed appointing the third arbitrator who shall act as the presiding arbitrator of the Tribunal(the'Tribunal").The appointing authority under the Rules shall be the London Court of International Arbitration.The language of the 17.FORCE MAJEURE arbitration shall be English.The seat of arbitration shall be London,England,and the proceedings shall be conducted If either party is unable by reason of Force Majeure to carry out any of its obligations under this Agreement,other and concluded as soon as reasonably practicable,based upon the schedule established by the Tribunal.Any monetary than obligations to pay money,then on such party giving notice and particulars in writing to the other party within a award shall be made In U.S.Dollars,free of any tax or other deduction,and shall include interest from the date of any reasonable time after the occurrence of the cause relied upon,such obligations shall be suspended."Force Majeure" breach or other violation of the Agreement to the date paid in full at a floating rate of interest equal to the prime rate of shall include any event that is beyond the reasonable control of the party so affected including,without limitation, interest in effect at Citibank,N.A.,New York,U.S.A.,from time to time. acts of God,laws and regulations,government action,war,civil disturbances,hijack,piracy,criminal action by a third party,threats or acts of terrorism,strikes and labor problems,delays of vendors or carriers,lightening,fire,flood, B.For Services,Equipment or Products provided,or to be provided,by BHI in the Americas:THIS AGREEMENT washout,storm,breakage or accident to equipment or machinery,and shortage of raw materials. In the event that SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF any suspension due to Force Majeure exceeds ten(10)consecutive days,either party may terminate this Agreement OKLAHOMA,EXCLUDING CONFLICTS OF LAW AND CHOICE OF LAW PRINCIPLES.ANY DISPUTE, by written notice to the other party,and Customer shall be liable for demobilization and any other reasonable costs CONTROVERSY OR CLAIM("DISPUTE")ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR incurred by BHI incidental to such termination. THE FURNISHING OF EQUIPMENT,SERVICES OR PRODUCTS HEREUNDER SHALL BE RESOLVED BY FINAL AND BINDING ARBITRATION CONDUCTED IN ACCORDANCE WITH THE COMMERCIAL RULES OF 18.1NDEPENDENT CONTRACTOR ARBITRATION OF THE AMERICAN ARBITRATION ASSOCIATION(THE"RULES").The tribunal shall be composed It is expressly understood that BHI is an independent contractor,and that neither BHI nor its principals,partners, of one(1)neutral arbitrator if the Dispute involves a maximum exposure of less than$1,000,000.If the parties are employees or subcontractors are servants,agents or employees of Customer. unable to agree on a neutral arbitrator,one will be appointed pursuant to the Rules.If the Dispute involves a maximum exposure equal to or In excess of$1,000,000,then the Tribunal shall consist of three(3)arbitrators,with each party In all cases where BHI's employees(defined to include BHI's and its subcontractors'direct,borrowed,special,or appointing one arbitrator,and the two arbitrators so appointed appointing the third arbitrator who shall act as Chair(the statutory employees)are covered by the Louisiana Workers'Compensation Act,La.R.S.23:102 et seq.,BHI and "Tribunal").The seat of arbitration shall be Houston,Texas,and the proceedings shall be conducted and concluded as Customer agree that all Services,Products and Equipment provided by BHI and BHI's employees pursuant to this soon as reasonably practicable,based upon the schedule established by the Tribunal. Agreement are an integral part of and are essential to the ability of Customer to generate Customer's goods, products,and services for the purpose of La. R.S.23:106(A)(1).Furthermore,BHI and Customer agree that C.For any arbitration conducted in accordance with Paragraph A.or B.above,the following shall apply:No award Customer is the statutory employer of BHI's employees for purposes of La.R.S.23:1061(A)(3). shall be made for Consequential Damages.Judgment upon the award rendered by the Tribunal pursuant hereto may be entered in,and enforced by,any court of competent jurisdiction.All statutes of limitation that would otherwise be 19.JAWS RULES.REGULATIONS.AND EXPORT CONTROL applicable shall apply to the arbitration proceeding.Any attorney-client privilege and other protection against BHI and Customer agree to be subject to all laws,rules,regulations and decrees of any governmental or regulatory disclosure of privileged or confidential Information,including,without limitation,any protection afforded the work- body having jurisdiction over the Services,Equipment or Products to be provided by BHI or the work site or that may product of any attorney,that could otherwise be claimed by any party shall be available to,and may be claimed by,any otherwise be applicable to BHI's or Customer's performance under this Agreement. such party in any arbitration proceeding.The parties shall treat all matters relating to the arbitration as confidential. Subject to each party's right to cooperate fully with the United States authorities,the parties understand and agree that Customer acknowledges that Equipment,Services,Products and/or related technical data covered by this this confidentiality obligation extends to information concerning the fact of any request for arbitration,any ongoing Agreement may be subject to U.S.and/or foreign trade controls.Customer agrees that it will not sell,re-export or arbitration,as well as all matters discussed,discovered,or divulged,(whether voluntarily or by compulsion)during the transfer Equipment,Products and/or related technical data except in full compliance with all governmental course of such arbitration proceeding.It is the desire of the parties that any Dispute is resolved efficiently and fairly requirements including but not limited to economic sanctions and export controls admirestered by the U.S. and the Tribunal shall act in a manner consistent with these intentions Department of Treasury,U.S.Department of Commerce and U.S.Department of State.Customer agrees to comply with all BHI requests for trade compliance information,statements,and other assurances including,without limitation, 21.ASSIGNMENT requests for End-User and Routed Transaction certifications.Any breach of this provision shall be deemed a BHI shall have the right to assign this Agreement to any of its subsidianes,affiliated or related companies without the material breach of this Agreement and sufficient basis for BHI to reject any or all orders or to terminate the consent of Customer. Agreement. 22.GENERAL BHI reserves the right to refuse to fulfill any order or otherwise perform under this Agreement if BHI in its sole Failure of Customer or BHI to enforce any of the terms and conditions of this Agreement shall not prevent a discretion determines that such action may violate any law or regulation.Customer agrees that such refusal, subsequent enforcement of such terms and conditions or be deemed a waiver of any subsequent breach.Should any cancellation,or termination of the Agreement by BHI will not constitute a breach of BHI's obligations under this provision of this Agreement,or a portion thereof,be unenforceable or in conflict with governing country,state, Agreement and Customer hereby waives any and all claims against BHI related to such refusal,cancellation,or province,or local laws,than the validity of the remaining provisions,and portions thereof,shall not be affected by such termination. unenforceability or conflict,and this Agreement shall be construed as if such provisions,or portion thereof,were not contained herein.This Agreement contains all representations of the parties and supersedes all prior oral or written 20. • ; I. A a;: ;' •N agreements or representations.Customer acknowledges that it has not relied on any representations other than those A.Except for Services,Equipment or Products provided,or to be provided,by BHI in North or South America(the contained in this Agreement.This Agreement shall not be varied,supplemented,qualified,or interpreted by any prior "Americas"):THIS AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH course of dealing between the parties or by any usage of trade and may only be amended by an agreement executed ENGLISH LAW,EXCLUDING CONFLICTS OF LAW AND CHOICE OF LAW PRINCIPLES.ANY DISPUTE, by both parties. In the event that any conflict exists between the provisions of this Agreement and any other terms and CONTROVERSY OR CLAIM("DISPUTE")ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR conditions set forth in Customer's purchase orders,field work orders,work tickets,invoices,statements,or any other THE FURNISHING OF EQUIPMENT,SERVICES OR PRODUCTS HEREUNDER SHALL BE RESOLVED type of memoranda or other documents used by Customer in the normal course of business,whether oral or written, the provisions of this Agreement shall govern. • Rev.1 January 2012 Report Printed on: APR-15-13 04:42 Gr4175 • Packet Page -341- ' 9/24/2013 10.F. Operator: DAN A HUGHES CO Well Name: Collier 22-3H BAKER Date: April 15, 2013 HUGHES Proposal No: 8799501070 PRODUCT DESCRIPTIONS ASA-301 Additive used to reduce or eliminate free water and settling in cement slurries. Bentonite Commonly called gel, it is a clay material used as a cement extender and to control excessive free water. CD-32 A patented, free-flowing, water soluble polymer that is an efficient and effective dispersant for primary and remedial cementing. Calcium Chloride A powdered,flaked or pelletized material used to decrease thickening time and increase the rate of strength development. Class H Cement Class H cement is an API type, all purpose oil well cement which is used without modification in wells up to 8,000 ft. It possesses a moderate sulfate resistance. With the use of accelerators or retarders, it can be used in a wide range of well depths and temperatures. FL-25 An all purpose salt-tolerant fluid loss additive that provides exceptional fluid loss control across a wide range of temperatures and salinity conditions and remedial cementing applications. FP-6L A clear liquid that decreases foaming in slurries during mixing. Mud Clean II A water-base mud wash designed for use ahead of cement slurries to aid in mud and drilling debris removal and to prevent contamination of the cement slurry. It should be used only when water-base mud is used. Potassium Chloride A granular salt used to reduce clay swelling caused by water-base stimulation fluids. Poz(Fly Ash) A synthetic pozzolan, (primarily Silicon Dioxide). When blended with cement, Pozzolan can be used to create lightweight cement slurries used as either a filler slurry or a sulfate resistant completion cement. R-3 A low temperature retarder used in a wide range of slurry formulations to extend the slurry thickening time. Silica Sand, 100 mesh, Sacked A graded Silica Sand (70-140 mesh nominal) used as a fluid loss control additive in formations with high permeability or natural fractures. It is also used in cementing to prevent strength retrogression at high temperatures. Sodium Metasilicate An extender used to produce an economical, low density cement slurry. Report Printed on Apn1 15.2013 4 42 PM Page 21 Gr4163 Have more questions?You can find us at: http://www.bakerh ughes.com/products-and-services/pressure-pumping Packet Page-342- Operator: DAN A HUGHES CO ' 9/24/2013 0.F. Well Name: Collier 22-3H BAKER Date: April 15, 2013 HUGHES Proposal No: 8799501070 PRODUCT DESCRIPTIONS (Continued) Type I Cement A Portland cement designed for use to 6,000 Ft. Type I cement can be modified for use at greater depths. Type. Report Panted on April 15.2013 4:42 PM Page 22 Gr4163 Have more questions?You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Packet Page-343- 9/24/2013 10.F. Operator Name: DAN A HUGHES CO RUM. Well Name: Collier 22-3H BAKER Date: April 15, 2013 HUGHES Proposal No: 879950107C End of Report 0 Report Printed one Apnt 15,2013 4'42 Grnast Packet Page-344- 9/24/2013 10.F. EXHIBIT 15 WELLBORE SCHEMATIC Packet Page-345- 9/24/2013 10.F. PROPOSED WELLBORE SCHEMATIC 1 1 i 1 : 24"Conductor—Driven down to 250' I I 1 i I i 20"Hole size SURFACE LOCATION: 1 1 1 X=490,958.030 Y=674264.75 1 1 1 1 1 USDNV @ APPROX 1450'(From Schlumberger Testing) Latitude:26°11'16.039N 1 1 1 1 1 Longitude: 081°30'13.659W i, 16"84#J-55 BT&C @1600' BOTTOMHOLE LOCATION: BOULDER ZONE from 1700'-3200' X=494,755.68 Y=671,284.34 (Tribal Oil--#26-4 lost circ @ 1725') Latitude:26°10'46.664N Longitude: 081°29'31.846W 14-3/4"Hole size 1 i 1 i 1� 1;i*� Top of Cement @ 3350' 1 1 1 1 1 1 1 1 1 1 1 PENETRATION POINT(RUBBLE): 1,1�1i �1�1i X=491,521.42 Y=673,822.60 � 1 1 11111 Latitude:26°11'11.68IN ,1,1,1 11111 Longitude: 081°30'07.455W 111111 11111 .1.1.4 ��110-3/4"45.5#HCL-80GB Buttress @ 3850' OFFSET WELL: Tribal Oil Company Collier Company#26-4 Permit#775 9-7/8"open hole FORMATION TOPS GROUND LEVEL-11.3 Top of Cement a!9300' RKB--27'above GL Sunniland: 11,820' Upper Sunniland: 11,978' Target in Rubble: 12,064 Punta Gorda: 12,087' l.ck Off Point—11,348' �� Top Pumpkin Bay: 13,280' Obi Total Depth: 13,900' < \ h10 0D -s. G@ OS V� 1 r`il'' ��' A .'5446 Lower Sunniland(Rubble)landing depth @ 12,500' MD/ 12,064' TVD z 0 0=.- _ co 6-1/2"open bole w . o Landing Point—12.500'MD/12.064—TVD ra 90 Degr DANA. HUGHES COMPANY, L.P. WELL NAME: COLLIER 22-3H LOCATION: Section 22 T49S-R28E COLLIER COUNTY, FLORIDA BY: JEFF ILSENG DATE: 4/11/13 Packet Page-346- 9/24/2013 10.F. EXHIBIT 16 WELL CONTROL PLAN Packet Page-347- 9/24/2013 10.F. DAN A. HUGHES COMPANY, L.P. WELL CONTROL PLAN COLLIER 22-3H COLLIER COUNTY, FLORIDA SECTION 22,T49S-R28E April 15,2013 Dan A. Hughes Company, L.P. Collier 22-3H Packet Page-348- 9/24/2013 10.F. BOP PROGRAM HOLE SIZE/ Bottom to Top Low/High Test Pressures SIZE PRESURE Arrangement Rams/Annular 20" 21-3/4"2M A N/A 14-3/4" 21-3/4"2M A N/A 9-7/8" 11" 5M P/S/B/A 250-3500/250-2000 6-1/2" 11" 5M P/S/B/A 250-3500/250-2000 P= Pipe Ram B= Blind Ram A=Annular S= Drilling Spool Test 16"surface casing to 1000#. Test 10-3/4" &7-5/8"casing's to 1500# NOTE: Well Control will use IADC accepted methods. This area is known more for Lost Circulation than for kicks. Offset wells have had loss circulation from the top of the boulder to the top of the pumpkin bay. Pictures of the rigs BOP's are in attachments. Florida Dept. of Environmental Protection rules are that the BOP's will be tested every week or called and ask for extension. Dan A. Hughes Company, L.P. Collier 22-3H Packet Page-349- 9/24/2013 10.F. EXHIBIT 17 DIRECTIONAL DRILLING PROGRAM Packet Page -350- • ell Northing(ft) 9/24/2013 10.F. O O pp 88 _ O I� S N O 10 S W °- I I I I I I I aft MO a° 4Z w CO N co Co: a r- 2 n n cri N _ N O O W m U C N ? 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Planned Wellpath Report MAIM Rev-B.2 BAKER Page 1 of 8 HUGHE' " ;M i4 Of -'A::..e All A 1.O ON Operator ;DAN A.HUGHES COMPANY,L.P. ;Slot 1Slot 1 Area (Collier County,Florida ;Well (Collier 22-3H Field 1Wildcat(Collier County,FL) Wellbore 22-3H(PWB) Facility 'Collier 22-3H 1 " PORT SETUP INFORMATION Projection System INAD83/TM Florida SP,Eastern Zone(901),US feet !Software System WellArchitect®3.0.0 North Reference (Grid (User Alvayes Scale 10.999972 !Report Generated 04/Apr/2013 at 11:36 Convergence at slot 10.22°West (Database/Source file WA_Houston/22-3H_PWB_.xml TI LPATIELOCA1301'41. Local coordinates Grid coordinates Geographic coordinates North[ft] I East[ft] Easting[US ft] Northing[US ft] Latitude 1 Longitude Slot Location 0.00 0.00 490958.03 674264.75 26°11'16.039"N 81°30'13.659"W Facility Reference Pt I 490958.03 674264.75 26°11'16.039"N 81°30'13.659"W Field Reference Pt I ( 0.00 0.00 1 24°19'13.954"N 82°58'13.212"W VE :L,PA:1'11.DATUM Calculation method Minimum curvature Rig on Slot 1 (RT)to GL 0.00ft Horizontal Reference Pt Slot ;Rig on Slot 1 (RT)to Mean Sea Level 112.00ft Vertical Reference Pt (Rig on Slot 1(RT) [Rig on Slot 1 (RT)to Mud Line at Slot(Slot 1) 10.00ft MD Reference Pt ;Rig on Slot 1(RT) iSection Origin N 0.00,E 0.00 ft Field Vertical Reference 'Mean Sea Level :Section Azimuth 1128.13° 0 Packet Page-352- 9/24/2013 10.F. Planned Wellpath Report //,tom Rev-B.2 BAKER Page 2 of 8 HUGHES rERENCE WELLPATH IDENTIFICATION ,Operator DAN A.HUGHES COMPANY,L.P. 1Slot 'Slot 1 Area 1Collier County,Florida Well !Collier 22-3H • ,Field [Wildcat(Collier County,FL) Wellbore 122-311(PWB) Facility !Collier 22-3H WELLPATH DATA(169 stations) ¶=interpolated/extrapolated station MD Inclination Azimuth TVD IVert Sectpvorth East Grid East Grid North Latitude Longitude Closure DistClosure Dir DLS Toolface1�uild RaterTurn Rate ift] 11 11 Iftl I IN 1 IN 1ft] ]US ft] [US ft] 1ft] 1°I 1°/100ft] 1°1 I l°/100ft1 I l°/100ft] 0.00 0.000 128.125 0.00 0.00 10.00 10.00 490958.03 674264.75 126 011'16.039"N 81°30'13.659"W 0.00 0.0001 0.00 0.00 0.00 0.00 100.00t 0.000 128.125 100.00 0.00 10.00 0.00 490958.03 674264.75 126°11'16.039"N 181 030'13.659"W 1 0.00 0.000 0.00 0.00 0.00 0.00 200.00t 0.000 128.125 200.00 0.00 10.00 0.00 490958.03 674264.75 26°11'16.039"N 181°30'13.659"W 1 0.00 0.000 0.00 0.00 0.00 0.00 300.00t 0.000 128.125 300.00 0.00 10.00 0.00 490958.03 674264.75 126°11'16.039"N 181°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 400.001:` '.0.000 128.125 400.00 0.00 `0.000,00'490958,03?674264.75 126°11416.039"N 181 030'13:659"W r 0.00 ,',0.000;i, 0.00 :.' 0.00 4100r:;,-,0.00 500.001 0.0001128.1251 500.00 0.00 10.00 10.00 1490958.03 1674264.75 126°11'16.039"N 181°30'13.659"W I 0.00 0.0001 0.00 0.00 1 0.00' 0.00 E i i 4 t 600.001 0.000 128.125 600.00 0.0010.00'0.00 490958.03 1674264.75 126°11'16.039"N 181°30'13.659"W 1 0.00 0.0001 0.00 0.00 0.001 0.00 700.001, 0.000 128.125 700.00 0.00 I.0.00 0.00 490958.03 674264.75126°11'16.039"N 181°30'13.659"W 1 0.00 0.000 0.00 0.00 0.00 0.00 800.00+1 0.0001128.1251 800.00 0.00 i 0.00 10.00 1490958.03 1674264.75 126°11'16.039"N 181°30'13.659"W 1 0.00 0.000 0.00 0.00 1 0.001 0.00 900.00j' ; 0.000 128.125 900.00 000lo.00 0OQ,490958,03;674264,175!26°. r7.16039`.3*1 8rA0;,3.659"W a ?0.00€ ,0?000,.m0:00410.00 I fi, 0.00 ,..., 0.00 1000.001 0.000 128.125 1000.00 0.00 1 0.00 0.00 490958.03 674264.75 26°11'16.039"N 181°3013.659"W 0.00 0.000 0.00 0.00 0.00 0.00 1100.001 0.000128.125!1100.00 0.00 0.00 0.00 490958.03 674264.7526°11'16.039"N 181°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 1200.0011 0.0001128.12511200.00 0.00 10.00 10.00 490958.03 l 674264.75!26°11'16.039"N 81°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00' 1300.001 0.000 128.125 1300.00 0.0010.00 0.00 490958.03 674264.75 126°11'16.039"N 81°30'13.659"W 0.00 0.0001 0.00 0.00 0.00 0.00 1400.0011 " `0.000 128.125 1400.00 0.00 10.00'0.00 490958.03{674264.75 26°1.1'16.039"N 81°30'13.659"W 0.00 ':` 0.000 0.00!" 0.00 0.00" 0.00` 1500.001 0.0001128.1251500.00 I 0.00 l 0.00 10.00 490958.03 674264.75 126°11'16.039"N 181°30'13.659"W 1 0.00 1 0.000 0.00 0.001 0.00 0.00 1600.001 0.0001128.125 1600.00 0.00 10.00 0.00 490958.03 674264.75126°11'16.039"N 181°30'13.659"W' 0.00 0.000 0.00 0.00 0.00 0.00 1700.0011 0.000;128.1251700.00 0.0010.0010.00!490958.031674264.75126°11'16.039"N 181°30'13.659"W 1 0.001 0.0001 0.00 0.00 0.00 0.00 18P"^01' 0.0001128.12511800.00 0.00 10.00 0.00 490958.03 674264.75126°11'16.039"N,81°30'13.659"W I 0.00 0.000 0.00 0.00 0.00 0.00 ;1. 1 1�0.0001128.1251900.00 0.0010.00.-1.00.'90958.03,674264.75 e6°11'16.039'.'N 81°30'13.659"W 4. 0,00; x;0.000 "D00 4 0,00' x{1,001 „00.00 120 1 0.000 128.125,000 00 0.00 0.00 1.00 '90958.03 674264.75 26°11'16.039"N 81°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 2100.001' 0.0001128.1252100.00 1 0.00 10.00 10.00 490958.03 674264.75 26°11'16.039"N;81°30'13.659"W 1 0.00 0.000 0.00 0.00 0.00 0.00 2200.0011 0.0001128.1252200.00 I 0.00 10.00 10.00 490958.03 1674264.75 126°11'16.039"N 181°30'13.659"W 1 0.00 0.000 0.00 0.001 0.001 0.001 2300.001-1 0.0001128.12512300.001 0.00 0.00!0.00 490958.03 1674264.75126°11'16.039"N 181°30'13.659"W 1 0.00 0.000 0.00 0.00 0.00 0.00 2400.001 0,000 128.12512400,00 0.00 0.00 0.00 490958.03 674264.75 26°1 1'16.039"N 181°30'13.659"W 11)03,- l 400,ot 1' 0, 2500.001- 0.000128.12512500.00 0.00 10.00(0.00 490958.03 674264.75 6°11'16.039"N'81°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 2600.001- 0.000 128.1252600.00 0.00 10.00 10.00 490958.03 674264.75,26°11'16.039"N 81°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 2700.001 0.0001128.12512700.001 0.00 0.00 0.00 490958.03 674264.75 126°11'16.039"N 181°30'13.659"W I 0.00 1 0.000 0.00 1 0.00 0.001 0.00 2800.001 0.0001128.1252800.001 0.00 10.00 10.00 490958.03!674264.75 126°11'16.039"N 181°30'13.659"W 1 0.00 0.000 0.00 0.00 0.001 0.00. 2900:0011 0.0001128.12512900.001 0.00 10.00;10.00 490958.03 1674264.75:'26°11`76.039"N 181°30'13.659"W 1-. 0.001: : 0,000 0.00 1° 0.001 0.001 0:00 Packet Page-353- 9/24/2013 10.F. Planned Wellpath Report «� Rev-B.2 BAKER Page 3 of 8 HUGHE' FERENCE'WE-LLPATH IHENTTFICATION Operator 1DAN A.HUGHES COMPANY,L.P. 1Slot (Slot 1 Area 'Collier County,Florida Well 1Collier 22-3H Field `Wildcat(Collier County,FL) Wellbore 22-3H(PWB) Facility 'Collier 22-311 WELLPATH DATA(169 stations) t=interpolated/extrapolated station MD 11nclination zimuth TVD 'Vert SectNorth East Grid East Grid North Latitude Longitude Closure Dist Closure Dir DLS Toolfaceuild RaterTurn Rate Iftl 1 1°1 I I°1 Iftl I Iftl Iftl ( Iftl IUS ft) I lB IUS fry Iftl I°l I°nooftl 1°1 1°n00ft1 1 I°nooftl 3000.001 0.0001128.12513000.00 0.00 10.00 0.00 490958.03 1674264.75126°11'16.039"N'81°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 3100.00t 0.0001128.12513100.00 0.00 10.00 10.00 490958.03 674264.75126°11'16.039"N 81 030'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 3200.00t 0.0001128.12513200.00 0.00:10.00 0.00 490958.03 1674264.75 126°11'16.039"N 181 030'13.659 0W 0.00 0.000 0.00 0.00 0.00 0.00 3300.001 0.0001128.12513300.00 0.00 0.00 10.00 490958.03 674264.75 126°11'16.039"N 181°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 3400.001-1 0.000 128.12513400 00 0.0010.00`1490958.03 674264.75 26°11'16.039"N 181°30'13,659"W :t`.P 0.000::;4.000. ;000, ;0.00 +.' 0.00 ,n,0.00 3500.00t 0.0001128.12513500.00 1 0.00 10.00 0.00 490958.03 1674264.75 26°11'16.039"N 181°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 3600.001 0.0001128.12513600.00 0.00 0.00 10.00 490958.03 674264.75 126°11'16.039"N 181°30'13.659"W_ 0.00 0.000 0.00 0.00 0.001 0.00 3700.0011 0.000;128 12513700.001 0.00 10.00 10.00 490958.03 1674264.75 126°11'16.039"N 181°30'13.659"W 0.00 0.000 0.00 0.00 0.001 0.00 3800.00-1 0.0001128.12513800.00 1 0.00 0.00 10.00 490958.03 1674264.75 26°11'16.039"N 181°30'13.659"W 1 0.00 0.000 0.00 0.00 0.00 0.00 3900.001 , .<,':0.000128.125 39-00.00.1 0.00,4L001311. 958 03':.74264 7r 6° 'i6 039"14 81°30'1, 659 W ter,,,, t 44 . ?000 Q.*O 0 01 x-'0 00 ,0 00 4000.00t1 0.0001128.12514000.00 0.00 10.00,1.00 490958.03 674264.75 126°11'16.039"N 81°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 4100.00-11 0.0001128.12514100.00 0.0010.00(0.00 490958.031674264.75'26°11'16.039"N 181°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 4200.0011 0.000128.1254200.001 0.00 10.00 10.00 1490958.03 674264.75 126°11'16.039"N 181°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.001 4300.00-11 O.000i 128.1254300.00 1 0.00 10.00 1.0.00 490958.03 674264.75 126°11'16.039"N 181°30'13.659"W 1 0.00 0.000, 0.00 0.00 0.001 0.001 4400.0011 0.0001128.12514400.00 0.00 10.00,10.00 1490958.03(674264.75 6°11'16.039"N 181°30'13.659"W ? ' 0.00 0.000 0100 0.00 0.001 0.00: 4500.001) 0.000'128.12514500.00 0.00 10.00 10.00 490958.03 1674264.75 126°11'16.039"N 181°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 4600.00 0.000 128.12514600.00 0.0010.00 10.00 490958.03 674264.75 126°11'16.039"N 181°30'13.659"W 0.00 0.000 0.00 0.00 0.001 0.00 4700.0011. 0.0001128.1254700.00 0.00 10.00 10.00 490958.03 1674264.75 126°`1'16.039"N 181°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 4800.001- 0.0001128.1254800 00 0.00 10.00 10.00 490958.03 1674264.75 26°11'16.039"N 81°30'13.659"W 0.00 0.000 0.00 0.00 0.00 j4900.00t {Q,000IA12549Q0;,QQQi�. i0.A0 000 Q..:42.958,03.:16,742 5.�,6�°.1...»3503 "1.;x:$1°3Q' 45:.. W, , 4 . 5 1 1.1' ,.10( , .° . 5000.001 0.000 128.12515000.00 0.00 10.00 0.00 490958.03 674264.75 126°11'16.039"N 81°30'13.659"W 0.00 0.000 0.00 0.00 0.00=kw 5100.00t1 0.0001128.125'5100.00 0001128.125:5100.00 1 0 00 0.00 10.00 490958.03 1674264.7526°11'16.039"N:81°30'13.659"W 1 0.00 0.000 1 0.00 0.00 0.001 1-1 I 10.00 90.00 490958.03 1674264.75 126°11'16.039"N 181°30'13.659"W 11 0.00 0.000 0.00 0.00 0.001 0.00 5300.00t 0.0001128.125;5300.00 0.00 10.00 10.00 1490958.03 674264.75 126°11'16.039"N 181°30'13.659 W 1 0.00 0.000 0.00 0.00 0.001 0.00 5400.001 f„' 0000128:1255400 00 =0.0010.00 0.004909:58.03 674264.75.126°11'16.039"N 81°30'1365, &1 .Q ,O'.11,11:11101.99, .5500.00t1 0.0001128.12515500.00 0.00 10.00 10.00 490958.03 1674264.75 126°11'16.039"N 181°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 5600.0011 0.0001128.125:5600.00 0.00 10.00 10.00 490958.03 674264.75 126°11'16.039"N 181°3013.659"W 0.00 0.000 0.00 0.00 0.00 0.00 ;5700.001' 0.0001128.125;5700.00 0.00 10.00 10.00 1490958.03 1674264.75 126°11'16.039"N 181°30'13.659"W 1 0.00 0.000 0.00 0.00 0.001 0.00 5800.00t1 0.0001128.12515800.00 0.00 10.00 10.001490958.03 1674264.75 126°11'16.039"N 181°30'13.659"W 1 0.00 0.000 1 0.00 0.00 0.001 0.00 15900.0011 0.0001128.12515900.00 0.00 10.00 10.00',4 0 1674264.75 26 01116.039 0N 181 030'13.659 0W 1 0.00 1 0.000 0:00 0.00 0.001 ° 0.001 Packet Page-354- 9/24/2013 10.F. Planned Wellpath Report 11M111111111 Rev-B.2 BAKER Page 4 of 8 HUGHES rERE 'CE WELLPATil IDENTIFICATION Operator ;DAN A.HUGHES COMPANY,L.P. Slot Slot 1 Area !Collier County,Florida Well (Collier 22-311 Field !Wildcat(Collier County,FL) jWellbore 22-311(PWB) Facility !Collier 22-311 WELLPATH DATA(169 stations) t=interpolated/extrapolated station j MD Inclination Azimuth TVD Vert Sect North'East Grid East Grid North Latitude Longitude Closure Dist Closure Dir DLS Toolface Build Rate Turn Rate [ft] 1 01 1 01 [ft] [ft] [ft] [ft] [US ft] [US ft] Ift] I°1 1°/100ft( 101 1°/100ft] ] [°/100ft] 6000.001- 0.0001128.12516000.00 0.0010.00 10.00 490958.03 674264.75 26°11'16.039"N 181°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 6100.001 0.0001128.1256100.00 0.00 0.0010.00 490958.03 674264.7526°11'16.039"N 181°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 :6200.001 0.0001128.1256200.00 0.00 0.00 0.00 490958.03 674264.75126°11'16.039"N 181°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 6300001! 0.0001128.12516300.00 0.0010.00 0.00 490958.03 674264.75126°11'16.039"N 181°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 16400,00t`,+x 0.000[128.125 6400.00' 0.00 10.00 10.00 490958.03!674264.75[26°11'16.039"N 81'3013.659"W 1 !. 0.00 •;`0.000, ":0.00 6500.001 0.0001128.1256500.00' 0.00 10.00 10.00 490958.03 074264.75126°1116.039"N 181°30'13.659"W I 0.00 0.000 0.00 0.00 0.00 0.00 6600.001 0.0001128.1256600.00 0.00 10.00 0.00 1490958.03 674264.75126°11'16.039"N 181°30'13.659"W 1 0.00 0.000 0.00 0.00 0.00 0.00 +.6700.001 0.0001128.1256700.001 0.0010.00 10.00(490958.03 674264.75126°1 1'16.039"N 181°30'13.659"W 1 0.00 0.000 0.00 0.00 0.00 0.00 ■6800 001 0.0001128.1256800.001 0.0010.00 0.00 1490958.03 1674264.75 26°11'16.039"N 181°30'13.659"W 0.001 0.0001 0.00 0.00 0.00 0.00 .900.09,1; 'p 000,128 225 6900 00 .0.001.0.00 0.00.k90958'03 674264475 26°11'.16 039"N?81°30'13 659,W," ' 0 00 0.,000 °0.00 O.00- 0"00 .0.00 17000.001 0.000 128.125 7000.00 0.0010.00 0.00 490958.03 674264.75126°11'16.039"N 81°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 7100.001 0.0001128.1257100.00 0.0010.00 0.00 490958.03 674264.75 26°11'16.039"N 81°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 7200.001- 0.0001128.12517200.00 0.00 1 0.00 0.00 1490958.03 1674264.75 126°11'16.039"N 181°30'13.659"W 0.00 0.000 0.00 0.00 0.001 0.00' 17300.001 0.000 128.12517300.00 0.00 0.0010.001490958.03 674264.75126°11'16.039"N 81°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 17400.001E 0.000128.12517400 00 ' '''0.00(0.0010.000 490958.03 674264.75"26°11'16.039"N�81°30'13.659"W 0.00 0.000' °0.00 '0.00-�'. ' r 0:00 0.00 7500.001 0.0001128.12517500.00 0.00 0.00 0.00 1490958.03 1674264.75!26°11'16.039"N 181°30'13.659"W 1 0.00 0.000 0.00 0.00 0.001 0.00 17600.001 0.0001128.12517600.00 0.00.10.00 0.00 490958.031674264.75'b6°11'16.039"N 181°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 7700.0011 0.0001128.12517700.001 0.00 10.0010.001490958.03 674264.75126°1 l'16.039"N 181°30'13.659"W I 0.001 0.000 0.00 0.00 0.001 0.00 1780. 0.0t 0.0001128.12517800.00 1 0.00 10.00 10.00 1490958.03(674264.75 126°11']6.039"N 81°30'13.659"W I 0.00 0.000 0.00 0.00 0.00 0.00 i7 14i 0.0001128.12517900 00 '; `t)00, 0.0010.00,490958.03 674264.75.26°11'16.039"N[81°30'13: 659"W 0.00;, '0.000 0.00.,*COI:v e 0 r 11(!:.(1:0:.00 180v1 0.0001128.1258000.00 0.00 0.00 0.00 490958.03 674264.75 26°11'16.039"N 181°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 18100.001. 0.0001128.1258100.00 0.00 10.0010.00 490958.03 674264.75126°11'16.039"N 181°30'13.659"W 1 0.00 0.000 0.00 0.00 0.00, 0.00 18200.0011 0.0001128.12518200.00 0.00 0.00 10.00 1490958.03 1674264.75 126°11'16.039"N 181°30'13.659"W 1 0.00 0.0001 0.00 0.00 0.00 0.00 18300.001 0.0001128.12518300.00 0.0010.0010.001490958.031674264.75126°11'16.039"N 181°30'13.659"W1 0.00 0.0001 0.00 0.00 0.00 0.00 18400.001 0.000 128.12518400,00 °3 0.00(0.00 0.00'[490958.03 674264.75 0,6°11'16 039"N'181°30'13,659"W 0.00?10 40 000,r;"0 00 4(0499;4 > 00,. +5`0:00 18500.001 0.0001128.12518500.00 0.00 10.00 0.00 490958.03 1674264.75 26°11'16.039"N 81°30'13.659"W 0.00 0.000 0.00 0.00 0.00 0.00 18600.001 0.000 128.12518600.00 0.0010.00 0.00 490958.03 1674264.75 126°11'16.039"N 81°30'13.659"W 0.00 0.000 0.00 0.00 0.00, 0.00 18700.0011 0.000,128.12518700.001 0.00 10.001 0 490958.031674264.75126°11'16.039"N 181°30'13.659"W 1 0.00 0.0001 0.00 0.00 0.001 0.00 18800.001 0.0001128.12518800.001 0.00;0.00 10.00'490958.03 1674264.75 126°11'16.039"N 181°30'13.659"W 1 0.00 0.000 0.00 0.001 0.001 0.00 8900.0011 0.0001128.12518900.00 I 0.00 10.0010.00 1490958.03 16 74264.75126°1116.039"N181°30'13;659"W 1 0.00`; =0.000. 0.00 ^:.-0.00;1 0,001.;.2'0.001 Packet Page-355- 9/24/2013 10.F.1 Planned Wellpath Report 11174111111111 Rev-B.2 BAKER Page 5 of 8 HUGHE FENCE WELLPATH IDENTIFICATION Operator 1DAN A.HUGHES COMPANY,L.P. 1Slot Slot 1 Area !Collier County,Florida Well Collier 22-311 Field Wildcat(Collier County,FL) 1Wellbore 122-3H(PWB) Facility !Collier 22-3H 1 ;WELLPATH DATA(169 stations) 1.=interpolated/extrapolated station MD (Inclination Azimuth TVD Vert 'North East Grid East Grid North Latitude Longitude Closure Closure DLS IToolface Build Turn [ft] 11 11 Ift] Sect IftI Ift] IUS ft] IUS ft] Dist Dir 1°/100ft]1 11 Rate Rate j Ift] IftI 1°1 I -]°/10oft] 1°/100ft] 4 1 9000.001 0.0001128.125 9000.00 0.00 0.00 1 0.00 490958.03 674264.75 126°11'16.039"N 181°30'13.659"W 1 0.00 0.000 0.001 0.00 0.00 0.00 1 9100.001 0.0001128.125 9100.00 0.00 0.00 0.00 490958.03 1674264.75 126°11'16.039"N 181°30'13.659"W 0.00 0.000 0.001 0.00 0.00 0.004 1 9200.0011 0.0001128.1251 9200.00 0.00 0.00 0.00 490958.03 1674264.75 426°11'16.039"N 181°30'13.659"W 1 0.00 0.0001 0.00 I 0.00 0.00 0.00 1 9300.001 0.0001128.1251 9300.00 0.00 1 0.00 1 0.00 490958.03 1674264.75 126°11'16.039"N 181°30'13.659"W 1 0.00 0.000 1 0.00 1 0.00 0.00 0.00 11 9500.001 0.000 128.125 9500 00 I 0 00 0.00 1 0.00 490958.03 674 64.75 126°11116.039"N 6°11'16.039"N 181°30'13.659"W 0.00 `0.000 0.00 if:.,0.00 , „0.00 , 0.00 1 I 4 j .000 1. 0.00 0.00 0.00 0.00 490958.03 674264.75 126°11'16.039"N 181°30'13_659"W 0.00 0.000 0.00 1 0.00 0.00 0.00 r9700.001 0.000 128.125 9700.00 j 0.00 0.00 0.00 490958.03 1674264.75 26°11'16.039"N 181°30'13.659"W 1 0.00 0.0001 0.00 1 0.00 0.00 0.00. 9800.001 0.000 128.125 9800 00 0.00 0.00 0.00 490958.03 1674264.75126°11'1 6.039"N 181°30'1 3 659"W 0.00 0.000 0.00 1 0.00 0 00 0.00 `,'990,0 001 1;.0.000 128.125 -9900 00 °v=0 00 1:"0.00 r.0.00 490958.03_1674264.75 126°•11'16039"N,81°.30'13.659"W 11.nr-Tp",Q02,v.Tho00 i 4:0,00' O.e00 09m0,, 1 O 00 10000.001 0.0001128.125110000.00 0.00 0.00 0.00,'90958.031674264.75'26°11'16.039"N 81°30'13.659"W 0.00 0.000 0.001 0.00 0.00 0.00 10100.001 0.0001128.125110100.00 0.00 1 0.00 0.00 490958.03 674264.75 426°11'16.039"N 181°30'13.659"W i 0.00 0.000 1 0.00 1 0.00 0.00 0.00 110200.001 0.0001128.125'10200.00 1 0.001 0.00 0.00 490958.03 1674264.75 126°11'16.039"N 181°30'13.659"W 1 0.00 0.000 1 0.00 1 0.00 1 0.00 0.00 110300.0011 0.0001128.125110300.00 1 0.00 1 0.00 1 0.00 490958.03 1674264.75 26°11'16.039"N 181°30'13.659"W 1 0.00 0.0001 0.00 1 0.001 0.00 0.00, 10400.0011 0.000128 110400.00 0.00 1 0.00 0.00 490958.03 674264.75 126°11116.039"N 81°30'13.659"W"1 0.00 0.000 .,.„0.00 ;--0.00. ; 40.00 . - 0.00 110500.001 0.000,128.125110500.00 1 0.00 1 0.00 1 0.00 490958.03 1674264.75 26°11'16.039"N 181°30'13.659"W 1 0.00 1 0.000 0.00 I 0.00 0.00 0.00 10600.001' 0.0001128.125110600.00 1 0.00 1 0.00 1 0.00 490958.03 1674264.75 126°11'16.039"N 181°30'13.659"W 1 0.00 1 0.0001 0.00 0.00 0.00 0.00 10700.001 0.0001128.125110700.00 1 0.00' 0.00 j 0.00 490958.03 674264.75 26°11'16.039"N 181°30'13.659"W 1 0.00 1 0.000 0.001 0.00 0.00 1 'a 6.039 N 81°30 1.659'W 0.00 1 0.000 0 00 1 0.00 0 00 10800 001 0.000 128.125 10800.00 1 0.00 0.00 0.00 490958 03 1674264.75126°11'1 1090 00 c((?001 84 5 0 i1 0 oo ., 004 ^0;00 494058 43.16742644,"15 ° 4' 31�' 8S>' 3 439 emu. i ,e"1 ,A1V4i l ; ;1. 3a , 400 1 e . 11000.00± 0.0001128.125111000.00 1 0.001 0.001 0.00 490958.03 1674264.75126°11'16.039"N 181°30'13.659"W I 0.00 0.0001._0.001. 0.00 0.00 0.00 0.0001128.125111100.00 1 0.00 1 0.00 0.00 490958.03 1674264.75 26°11'16.039 N 181°30'13.659"W 0.00 0.0001 0.00 1 0.011, 0.00 0.00 11200.001 0.000;128.125 11200.00 1 0.00{ 0.00 0.00 490958.03 1674264.75 126°11'16.039"N 81°30'13.659"W! 0.00 0.000 10.00 I 0.00 1 0.00 0.00 11300.001 0.000'128.12511300.00 1 0.00 0.00 0.00 490958.03 1674264.75 126°11'16.039"N 81°30'13.659"W 0.00 0.000 0.00 11 0.00 0.00 0.00 1.1348.10 , 0.000 128.125111348.10 1:; 0.00., 000 „,0.001490958.03 1674264.75 126°11'16.039"N 81°30' 659 , i� . ;,!o4 p, '00n +>0 0kt 2$:1li .06 #0-'00 11400.001-1 4.152 128.125111399.95 1 1.88 -1.16 1.48 1490959.51 1674263.59126°11'16.027"N 181°30'13.643"W 1.88 128.125 8.00 1 0.001 8.00 0.00 111500.001 12.1521128.125111498.861 16.05 -9.91 12.62 490970.65 1674254.84126°11'15.941"N 181°30'13.520"W 1 16.05 128.125 I 8.00 1 0.001 8.00, 0.00 111600.001 20.152 128.125111594.84 1 43.84 1-27.07 34.49 1490992.52 1674237.68 126°11'15.772"N 81°30'13.279"W 1 43.841 128.1251 8.00' 0.001 8.001 0.00 111700.001 28.1521128.125111686.01 I 84.73 52.31 66.65 1491024.68 1674212.44 126°11'15.523"N 81°30'12.925"W 1 84.73 128.125 1 8.00 1 0.00 8.00 0.00 11800.0011 ''36.15211.28.125111770.61:1137.90 1-85.14 1108.481491066.51 1674179.62 126°11'15.200"N 181°30'12.464"W". 137.90 1 128.125 1 8.00 1',0.00 ', 8.00 .. `0.00 Packet Page-356- 9/24/2013 10.F. Planned Wellpath Report 1111/21111111111 Rev-B.2 BAKER Page 6 of 8 HUGHES 3. rERENCE'WEL.LP ATII IDENTIFICATION Operator IDAN A.HUGHES COMPANY,L.P. Slot Slot 1 Area !Collier County,Florida Well 1Collier 22-3H Field Wildcat(Collier County,FL) jWellbore 122-3H(PWB) Facility .,Collier 22-3H 1 WELLPATII DATA(169 stations) t=interpolated/extrapolated station MD nclination• imuth TVD Vert North East Grid East Grid North Latitude Longitude Closure Closure DLS Toolface Build Turn [ft] [°1 1°1 [ft] Sect [ft] [ft] [US ft] [US ft] Dist Dir 1°/100ft] [°] Rate Rate [ft] Iftl 01 1°/100ft][°/100ft] 11900.00# 44.152 128.125 11846.98 202.33 -124.91 159.17 91117.19 .74139.84126°11'14.808"N 81°30'11.906"W 202.33 128.125 8.00 0.00 8.00 0.00 12000.00# 52.152 128.125 11913.64 276.76 -170.87 Kea 91175.74 674093.89126°11'14.355"N 81°30'11.262"W 276.76 8.00 0.00 8.00 0.00 60.152 128.125 11969.29 359.74 -222.10 283.00 '91241.02 .74042.66 6°11'13.850"N 81°30'10.543"W 359.74 128.125 8.00 0.00 8.00 0.00 112200.00# 68.152 128.125 12012.86 449.67 -277.61 353.74 91311.76 673987.14126°11'13.303"N,81°30'09.764"W 449.67 128.125 8.00 0.00 8.00 0.00 12300.00# 76.152 128.125 12043A8 '544.78 336.33 1 428.56 491386.57[673928.43 26°11'12.724"N E81°30'08.940"W 544.78 128.125„ ... 5_ I Q0; to T w,06' 12400.001- 84.1521128.12512060.57 643.22 -397.11 506.00 91464.02 673867.6526°11'12.125"N 81°30'08.088"W 643.22 128.125 8.00 0.00 8.00 0.00 :12473.10 90.000028.125 12064.30 716.20 -442.17 563.41 91521.42 .73822.60126°11'11.681"N 81°30'07.455"W 716.20 128.125 8.00 0.00 8.00 0.00 12500.00# 90.000 128.125 12064.30 1 743.10 -458.77 584.57 91542.58 673805.9926°11'11.517"N 81°30'07.222"W 743.10 128.125 0.00 0.001 0.001 0.00 12600.00t 90.0001128.125112064.30 1 843.10 -520.51 663.23 491621.24 1673744.26 26°11'10.909"N 181°30'06.356"W 843.10 1128.125 0.001 0.00 0.001 0.00 ;12700.001• .90.0001128.125'112064.30 1 943.10 -582.25 741.90 491699.91-16-73682.52 26°11'10.300"N=81°30'05.490"W 1;943.10 1128.125 j, 0.00,1 0.00 - 0.00 0.00` ,12800.00# 90.0001128.125 12064.30 1043.10 -643.99 820.57 491778.57 673620.78 26°11'09.692"N 81°30'04.624"W 1043.10 1128.125 1 0.001 0.00 0.00 0.00 '12900.00# '90.0001128.125 12064.30 1143.10 -705.72 899.23 491857.24 673559.05 26°11'09.084 94 81°30'03.758"W 1143.10'128.1251 0.00 0.00 0.00 0.00 ;13000.00# 90.0001128.125 12064.30 11243.10 -767.46 977.90 491935.90 673497.31 126°11'08.475"N 81°30'02.892"W 1243.10 128.125 0.00 0.001 0.00 0.00 13100.00# 90.0001128.125;12064.30 11343.10 -829.20 11056.57 492014.57 673435.58 26°11'07.867"N 81°30'02.026"W 11343.10 1128.125{ 0.00 I 0.00 0.00 00 13200.00# , 90.000;128.125;12064.30;1443.10;1 -890.94 1135.23 492093.23'673373.84 26°11'07.258"N 181°30'01.159"W 11443.10 1128.125 1 0.00 I 0.00 0.00 0:00 `13300.001 90.0001128.12512064.30 11543.10 1 -952.68 1213.90 1492171.89 1673312.10'26°11'06.650"N 181°30'00.293"W 11543.10 1128.125 1 0.00 0.00 0.00 0.00 13400.00# 90.000'128.125 12064.30 11643.10 -1014.41 1292.57 492250.56 1673250.37 26°11'06.041"N 181°29'59.427"W 11643.10 128.125 0.00 0.00 0.00 0.00 134,94.00# 90.000 128.125 12064.30 1743.10 -1076.15 1371.23 492329.22;673188.63126°11'05.433"N 81°29'58.561"W 1743.10 128.125 0.00 0.001 0.00, 0.00 1' 1t 90.000 128.125 12064.30 1843.10 1137.89 1449.90 492407.89 673126.89 26°11'04.824"N 81°29'57.695"W,1843.10 128.125 0.00 0.001 0.00 0.00 13, 90.0001128.125112064.30 11943.10 -1199.63 11528.57 1492486.55 673065.16,26°11'04.216"N 181°29'56.829"W 1943.10 128.125 j ;,0,00 1-0.00, 0,001„ 0.00€ 13800.00t 90.0001128.125112064.30 2043.10 1-1261.3611607.23 492565.22 673003.42 26°11'03.608"N 181°29'55.963"W 2043.10 128.125 I 0.00 0.00 0.00 0.00 13900.00# 90.000 128.125 12064.30 2143.10 -1323.10 1685.90 492643.88 672941.69,2611'02.999"N 81°29'55.096"W 2143.10 128.1251 0.00 0.001 0.00 0.00 14000.001- 90.000 128.125 12064.30 2243.10 1384.84 1764.57 492722.54 1672879.9526°11'02.391"N 81°29'54.230"W 2243.10 128.125 0.00 0.00 I 0.00 0.00 14100.00# 90.00011281125 12064.30'2343.10 1-1446.58 1843.23 492801.21 1672818.21 26°11'01.782"N 181°29'53.364"W 12343.10 128.1251 0.00. 0.00 I 0.00 0.00 14200.0011 ,_90.000128.12512064.30 2443.10'-1508.32 1921.90492879.87 672756.48 26°11'011747N 81°29'52.498'W 12443.1011.28.125 0.001 0.00 1 0.001 ,-0.00 114300.00t 90.000 128.125 12064.30 12543.10 -1570.05 112000.57 492958.54 1672694.74 26°11'00.565"N 81°29'51.632"W 2543.10,128.1251 0.00 1 0.00 0.001 0.00 14400.00# 90.000,128.12512064.3012643.10 -1631.79 079.23 493037.20 672633.01 26°10'59.957"N 81°29'50.766"W'2643.10 128.1251 0.00 0.001 0.00 0.00 14500.00# 90.000:128.125 12064.30 2743.10'-1693.5312157.90 493115.87 672571.27'26°10'59.348"N'81°29'49.900"W 12743.101128.125! 0.00 0.00 0.00 0.00 14600.00#1 90.0001128.125112064.30 2843.101-1755.27 1,236.57 493194.53 1672509.53 26°10'58.740"N 181°29'49.034"W 2843.10 1128.1251 0.00 0.00 0.00 0.00' .14700.001x 90.000;128.12512064.30 2943.10 -1817.01''315.23 493273.19;672447.80 26°10'58.131"N 181°29'48.168"W 12943.10 1128.125 F `0 00 *0.00' "0.00: ' 0.00 Packet Page -357- 9/24/2013 10.F. Planned Welipath Report ■A11111 Rev-B.2 BAKER Page 7 of 8 HUGHE'" Operator DAN A.HUGHES COMPANY,L.P. 'Slot ;Slot 1 Area !Collier County,Florida 1Well (Collier 22-311 ;Field !Wildcat(Collier County,FL) Wellbore 122-3H(PWB) Facility ;Collier 22-311 WELLPATH DATA(169 stations) fi=interpolated/extrapolated station MD InclinationAzimuth TVD Vert North East Grid East Grid North Latitude Longitude Closure Closure DLS Toolfacej Build Turn ID] 1 01 1°1 IN Sect Iftl IN [US ft] IUS ft] Dist Dir I°1100ft1 1°1 I Rate Rate Iftl Iftl 1°l 11°/100ftl 1°/100ft] 14800.00t 90.000 128.125112064.30 3043.10 -1878.74 2393.90 493351.86 672386.06 26°10'57.523"N 181°2947.301"W 3043.10 1128.125 1 0.00 0.001 0.00 0.00 14900.0011 90.0001128.125112064.30 3143.10 1-1940.48 2472.57 493430.52 672324.33126°10'56.914"N 81 029'46.435 0W 3143.10 128.1251 0.00 0.00 I 0.00 0.00 15000.0011 90.0001128.125112064.30;3243.10;-2002.22 2551.23 493509.19672262.5926°10'56.306"N 181°29'45.569"W 13243.10 128.1251 0.00 0.00 0.00 0.00 15100.00±1 90.0001128.125112064.30 3343.101-2063.96 12629.90 1493587.85 672200.85'26°10'55.697"N 181°29'44.703"W 13343.10 1128.125 1 0.00 0.00 1 0.00 0.001 15200.00.1 ;90.000128.125112064.30"13443.10 1-2125.70. 708.57;493666.52;672139.12 26°10'55.089"N 81°2943837"W'3443.10_128.125, A 00 p 0 00 „ 0 00 15300.001- 90.000 128.1 2 511 20 64.30 13543.10 -2187.43 2787.23 493745.18{672077.38 26°10'54.480"N 181°29'42.971 0W 13543.10 128.125 0.00 0.001 0.00 0.00 15400.001 90 0001128 125112064 30'3643 10 2249.17 12865.90 1493823.84 672015.64 26°10'53.872"N 181°29'42.105"W 13643.10 128.125! 0.00 0.00 1 0.00 0.00 ;15500.001- 90.0001128.125'1 2064.30 3743.10 F2310.91 12944.57 493902.51 1671953.91 26°10'53.263"N 181°29'41.239"W 13743.10 1128.125- 0.00 0.00 0.001 0.00 :15600.001- 90.0001128.125112064.30 3843.10 1-2372.65 13023.23 493981.17 671892.17 26°10'52.655"N 181°29'40.373"W!3843.10 1128 125 0.00 0.00 1 0.00 0.00 115700.001 , 90.000 128.125 12064.30 13943.10_2434.393101.90 1494059,84;671830:44 26'10'52.047.'N-81°29'39 507_"W 3943.10 128 125! ,0.110 ,,k 1..0 Oa00.'' b'00' 15800.00±1 90.0005 28.125112064.30 4043.10 1-2496.12 13180.56 14941 3 8.50 1671768.70 26°10'51.438"N 181°29'38.641"W 4043.10 1128.1251 0.00 0.001 0.00 0.00 15900.0011 90.0001128.125112064.30 4143.10'-2557.86?3259.23 1494217.17 671706.96 26°10'50.830"N 181°29'37.774"W 4143.10 1128.125{ 0.00 0.00 0.00 0.00 16000.0011 90.000;128.125112064.30 4243.10 1-2619.60 13337.90 494295.83 1671645.23 26°10'50.221"N 181°29'36.908"W 4243.10 1128.1251 0.00 0.00 1 0.00 0.00 16100.0011 90.000'128.125112064.30 4343.10 1-2681.34 13416.56 494374.49 1671583.49 26°10'49.613"N 181°29'36.042"W 4343.10 1128.125 1 0.00 I 0.00 0.001 0.00 1 6200.001; 90.000 128.125 12064.30 4443.10-2743.07 495.23 494453.16 1671521.76 26°10'49.004"N 81°29'35.176"W 14443.10 128.125 + 0.00 0.00 1, 0.00;. 0.00 90.000 128.125112064.30 4543.10 1-2804.81 13573.90 494531.82 1671460.02 26°10'48.396"N 181°29'34.310"W 4543.10 1128.125 1 0.00 0.00 I 0.001 0.00 116400.001 90.000;128.125112064.30 4643.10-2866.55 3652.56 494610.49 671398.28 26°10'47.787"N 181°29'33.444"W 14643.101128.1251 0.00 0.00 1 0.00 0.00 `16500.001- 90.0001128.125112064.30 4743.10 j-2928.29!3731.23 494689.15 1671 33 6.55 26°10'47.179"N 181°29'32.578"W 4743.10 1128.1251 0.00 0.00 4 0.001 116584.57 1 90.0001128.125112064.30 4827.67;-2980.50 13797.76 494755.68 1671284.34:26°10'46.664"N 181°29'31.846"W 4827.67(128.1251 0.00 I 0.001 Packet Page -358- 9/24/2013 10.F. Planned Wellpath Report IITAIIIII Rev-B.2 BAKER Page 8 of 8 HUGHES • - RENCE°WELLPATH IDENTIFICATION Operator !DAN A.HUGHES COMPANY,L.P. 1Slot ISlot 1 Area !Collier County,Florida Well !Collier 22-311 ;Field 'Wildcat(Collier County,FL) Wellbore 122-311(PWB) Facility !Collier 22-3H TARGETS Name MD TVD North East Grid East Grid North I Latitude Longitude Shape ift] lft] [ft] [ft] LUS ft] [US ft] Collier 22-311 LP 12064.30 -442.17 563.41 491521.42 673822.601 26°11'11.681"N 81°30'07.455"W point Collier 22-3H PBHL 12064.301 -2980.50 3797.761 494755.681 671284.34 26°10'46.664"N 81°29'31.846"W point SURVEY PROGRAM Ref Wellbore:22-3H(PWB) Ref Wellpath:Rev-B.2 Start MD End MD ! Positional Uncertainty Model Log Name/Comment Wellbore [ft] lft] 0.00 11300.001Generic gyro-continuous(Standard) (22-3H(PWB) 11300.001 16584.57NaviTrak(Standard) i2-3H(PWB) Packet Page -359- 9/24/2013 10.F. EXHIBIT 18 DRILLING FLUIDS PROGRAM Packet Page -360- 9/24/2013 10.F. dynamic Drilling f=luids Propo al drilling Fluids UGH DAN A H COMPANY Collier# 22-3H Collier County, Florida ils fill r I i I, P" 't l �� h( •'� a . 'r�t 3 & i illlip ! k r�� ;� ri�yl "�. 11 fi ! •ttlt",i;''''';', sliAlitZ—V, u Ii r..,`1 • m j! "c ` i i� �� Lt a sar € a Attention: Blaine Saathoff 5350 S. Staples; Suite 215, Corpus Christi, Texas 78411 / Tel: (361)985-2600/ Fax: (361) 985-2604 Packet Page-361- Dynamic 9/24/2013 10.F. Drilling Fluids April 15, 2013 Mr. Blaine Saathoff Dan A. Hughes Company P.O. Drawer 669 Beeville, Texas 78104 Dear Mr. Saathoff: Thank you for giving Dynamic Drilling Fluids this opportunity to serve you by submitting the enclosed drilling fluid program for your Collier#22-3H well to be drilled in Collier County, Florida. I sincerely hope this information will aid you in planning your drilling operation. To prepare this program, we have used well data from several wells located in the vicinity of your proposed location. This information is included in the "Reference Wells" section of this program for your use and evaluation. We recommend a Lightly Dispersed /Polymer mud system, supplemented with shale stabilizer down to intermediate casing point. Fresh water/Drill-Zan/Starch/HEC polymer. The estimated discounted cost of $600,000 is based on a minimum number of 70 days assuming no unusual hole problems are encountered. We at Dynamic Drilling Fluids would be very pleased to be awarded the privilege of supplying the drilling fluid for your well and will strive for your complete satisfaction in both engineering service and product performance. Should you have any questions concerning our recommendations or if we may be of further service, please do not hesitate to call upon us at any time. Sincerely, Jason Ferguson Packet Page-362- P ' roject Summary Dan A. Huc 9/24/2013 10.F. Collier#22-3H Casing Hole Casing ND/MD Mud Mud Sum Size Size Program System Weight Days (in) (in) (ft) (PPM 20" = 0 Massive sand, Lost Circulation 8.4 0 Prepare to drill blind thru lost circulation : ,li section, Pre Mix 80 sec/qt GEL sweep pump constantly while drilling blind. Mix Mica . 10-15 ppb in active system Gel/Polymer/Lime 16" ) _ 1600' 8.8 14-3/4" ,, 7_0,1 BOULDER ZONE 1,700'-3,200' 8.6 ` Massive Sand, Salt Water influx and Lost Circulation in Boulder Zone Expect complete lost returns in the upper boulder zone. Plan on drilling blind with no returns pumping massive GEL/Lime sweeps ' ' 13 re. . At TD mix and pump (2)massive, thick GEL sweeps. Prior to POOH to run casing mix and spot 80bbl GEL slurry on bottom 10-3/4" - 3,850' Do not rotate pipe out when POOH 9.1 ' 9-7/8" u , Adjust MW as hole conditions dictate 8.8 Reduce Rheological properties to 34-38 sec/qt MMonitor Chlorides and calcium closely for Salt Water flows through this section. Increase MW if necessary to control Salt Water flow Salt Gel will be used if Chlorides/calcium are too high for GEL, Treat Calcium with Soda Ash to maintain 80-120 ppm KOP 11,187' MIL-Lube may be added 1-3% by volume to 12,064'TVD reduce torque and drag. Sweep hole with 7-5/8" 12,500'MD 15-20 ppb graphite sweeps to reduce torque 9.1 6 1/2 4,1 section Lateral section will be drilled with HEC Drill 4; Zan Polymer system Utilizing High Vis polymer/graphite sweeps Weighted Calcium Carbonate sweeps Lower Sunniland is expected to be normal 12,064'TVD pressure. Build slugs brine water or Calcium 16,600'MD Carbonate 70 Packet Page -363- 9/24/2013 10.F. Dan A. Hughes co Collier#22-3H 0' —1 ,600' 20" Hole — Set 16" Surface Casing Drilling Fluid System Spud Mud Key Products Mil-Gel, Mil-Bar, Polymer, Lime, SAPP, Caustic Soda, Fiber M Solids Control Linear Motion Shakers, Desilter/Desander, Dilution. Potential Problems Massive Sand section, Lost Circulation,water flows • Interval Drilling Fluid Properties Depth Mud Mud Plastic Yield API HTHP Interval Weight Viscosity Viscosity Point Fluid Loss Fluid Loss (ft) (ppg) (sec/qt) (cp) (Ib 1100ft2) (ml/30min) (ml/30min) 0'-1,600' 8.4-8.8 50 to 60 4 to 8 12 to 18 N/C N/A • This interval should be drilled with a Flocculated GEL mud system supplemented with high viscosity sweeps and MF 55 (Polyacrylate/Polyacrylate Co-Polymer). • Control Drill this section due to Massive Sand sections to allow solids control equipment to process fluid. • Some offsets experienced Lost Circulation in this section • If loses occur prepare to drill section blind with no returns • Pre -mix 80 sec/qt GEL sweep, pump constantly while losing mud to keep cutting off BHA • Run all solids control equipment to maintain MW 8.8 ppg • Set 16 inch Surface Casing at approximately 1,600' feet. Packet Page-364- 9/24/2013 10.F. Dan A. Hughes (;o Collier#22-3H 1,600' — 3,850' 14-3/4" Hole — Set 10-3/4" Casing Drilling Fluid System Gel/Polymer System Key Products Gel, Barite, Caustic Soda, Mica M, Fiber M, MF 55, Lime Solids Control Linear Motion Shaker, Dilution. Potential Problems Massive Sand Sections, Salt Water Influx, LOST Circulation in boulder Zone, torque and drag Interval Drilling Fluid Properties Depth Mud Mud Plastic Yield API HTHP Interval Weight Viscosity Viscosity Point Fluid Loss Fluid Loss (ft) (ppg) (sec/qt) (cp) (lb/100ft2) (ml/30min) (ml/30min) 1,600'-3,850' 9.0-9.2 ' 40 to 44 I 10 to 16 10 to 12 25-20 N/A • After drilling cement, casing shoe, and 10 feet of formation, test casing seat to company specifications. • After test holds, continue drilling with a native mud supplemented with polymer sweeps to improve hole cleaning . • Lost Returns are expected in the Boulder Zone 1,700'-3,200' • The section will be drilled blind with no returns. While drilling blind build and pump flocculated Gel/MICA M sweeps to keep cutting off bottom and reduce potential pack off. Continue pumping GEL sweeps thru this section. Washing and reaming connections is highly recommended. • Once the Boulder Section is drilled Circulate and pump 2-3 thick, flocculated GEL/Lime sweeps at TD. • Once hole is clean mix and spot (80bbl) Gel Slurry on bottom before pulling out to run 10-3/4" casing. Packet Page -365- 9/24/2013 10.F. Dan A. Hughes co Collier#22-3H 3,850' — 13,900'MD 9-7/8" Hole Drilling Fluid System Lightly dispersed polymer system Key Products Gel, Lignite, MF 55, Caustic, Soda Ash, MICA M, Mil-Lube, Salt Gel, Drispac Solids Control Linear Motion Shaker, Dilution. Potential Problems Massive Sand, Hole Cleaning, Lost Circulation, Salt Water Flow, torque and drag Interval Drilling Fluid Properties Depth Mud Mud Plastic Yield API HTHP Interval Weight Viscosity Viscosity Point Fluid Loss Fluid Loss (ft) (ppg) (sec/qt) (cp) (Ib/100ft2) (ml/30min) (ml/30min) 3,850'-6,000' 8.6-8.9 36-40 10 to 16 10 to 14 25-20 6,000'- 11,000' 8.9-9.1 36-40 10 to 16 10 to 14 25-20 11,000-13,900' MD 9.1 40-48 16 to 22 10 to 14 20-10 • Set 10-3/4" Casing at 3,850' • Drill out with Lightly dispersed mud, pump high VIS Gel/Polymer sweeps as needed • Salt Water Flows are expected in this section, monitor Chlorides and Calcium closely. • Adjust Mud Weight accordingly to control Salt Water flow. • Maintain pH 9.5, added Soda Ash to control and maintain Calcium • Recommend added 3-4% by volume if Mil-Lube to active system. • Added in sweep form +/- 11,348' Kick off point • Run 15-20 ppb Graphite sweeps to help reduce torque • Maintain pH 10-10.5 with Caustic Soda, add small amounts of Biocide as needed Formation Tops Ground Level 11 .3' Sunniland 11,978' Rubble Zone 12,024' Target 12,064' Punta Gorda 12,087' Pumpkin Bay 13,280' Packet Page -366- Dan 9/24/2013 10.F. Collier#22-3H 12,064'TVD, 12,500'MD- 12,064' TVD, 16,600'MD 6 1/2" Hole Drilling Fluid System Zan Plex/HEC polymer system Key Products Gel, Lignite, MF 55, Caustic, Soda Ash, MICA M, Mil-Lube, Salt Gel, Drispac Solids Control Linear Motion Shaker, Dilution. Potential Problems Massive Sand, Hole Cleaning, Lost Circulation, Salt Water Flow,torque and drag Interval Drilling Fluid Properties Depth Mud Mud Plastic Yield API HTHP Interval Weight Viscosity Viscosity Point Fluid Loss Fluid Loss (ft) (ppg) (sec/qt) (cp) (lb/100ft2) (ml/30min) (ml/30min) 12,500'MD/12,064' TVD- 18.8-9.0 36-40 10 to 16 10 to 14 25-20 16,900'MD/12,064 TVD • After 7 5/8" casing is run and cemented discard the saltwater contaminated fluids and drill the lower Sunniland with Drill Zan HEC Polymer. • If Saltwater flow occur, there is the option to pump the contaminated system to the boulder zone and then build new system using fresh water. • Normal pressure is expected if MW is needed weight up with Calcium Carbonate, if its Saltwater weight up with Brine Water or Salt. • Mix Calcium Carbonate for Slugs for fresh water • Mix Brine water or Sack Salt if salt water is present. • Mix and pump 15-20 ppb graphite sweeps as need while sliding. Packet Page -367- 9/24/2013 10.F. EXHIBIT 19 RIDER TO PERFORMANCE BOND FOR MULTIPLE WELLS Packet Page-368- 9/24/2013 10.F. RIDER NO. 1 Attaching to and forming part of Performance Bond for Multiple Wells No. RLB0014778, effective September 6, 2012, on behalf of Dan A. Hughes Company, L.P. as Principal, in favor of the Florida Department of Environmental Protection as Obligee, executed by RLI Insurance Company as Surety, in the amount of One Million and No/100 Dollars ($1,000,000.00). It is understood and agreed that effective April 17, 2013, coverage for the following wells is added to this bond. A complete list of wells is provided on the revised Attachment "A". Collier 22-3H Permit Number 1353 H Collier 22-5 SWDW Permit Number 1354 Collier 7-2H Permit Number 1355 H Collier 7-5 SWDW Permit Number 1356 All other conditions and terms to remain as originally written or previously amended by rider. Signed, sealed and dated this 17th day of April, 2013. Dan A. Hughes Company, L.P. Principal By: ( ,. j /I!/ /e.;e.. e-e^ Printed Name&Title RLI Insurance Company 8 Greenway Plaza, Suite 400 Houston, TX 77046 Surety By: \\,) \,‘ Robbie Duxbury, Attorney-in:Fact • Packet Page -369- 9/24/2013 10.F. ATTACHMENT "A" Bond No. RLB0014778 Amended April 17, 2013 Permit Number Well Name Location 1349 H Collier-Hogan 20-3H Sec. 20, T47S, R28E 1350 Collier-Hogan 20-5 SWDW Sec. 20, T47S, R28E 1353 H Collier 22-3H Sec. 22, T49S, T28E 1354 Collier 22-5 SWDW Sec. 22, T49S, R28E 1355 H Collier 7-2H Sec. 7, T47S, R29E 1356 Collier 7-5 SWDW Sec. 7, T47S, R29E Packet Page -370- 9/24/2013 10.F. RLI' RLB0014778 I RU Surety POWER OF ATTORNEY A division of RU Insurance Company RLI Insurance Company Know All Men by These Presents: That the ELI INSURANCE COMPANY, a corporation organized and existing under the laws of the State of Illinois, and authorized and licensed to do business in all states and the District of Columbia does hereby make, constitute and appoint: ROBBIE DUXBURY in the City of HOUSTON , State of TEXAS , as Attorney-in-Fact, with full power and authority hereby conferred upon him to sign, execute,acknowledge and deliver for and on its behalf as Surety and as its act and deed,all of the following classes of documents to-wit: $1,000,000.00 Indemnity,Surety and Undertakings that may be desired by contract, or may be given in any action or proceeding in any court of law or equity;policies indemnifying employers against loss or damage caused by the misconduct of their empluyers; official, bail and surety and fidelity bonds, Indemnity in all cases where indemnity may be lawfully given; and with full power and authority to execute consents and waivers to modify or change or extend any bond or document executed for this Company,and to compromise and settle any and all claims or demands made or existing against said Company. The RLI INSURANCE COMPANY further certifies that the following is a true and exact copy of a Resolution adopted by the Board of j Directors of RLI Insurance Company, and now in force to-wit: All bonds,policies,undertakings, Powers of Attorney, or other obligations of the corporation shall be executed in the corporate name of the Company by the President, Secretary,any Assistant Secretary, Treasurer, or any Vice President, or by such other officers as the Board of Directors may authorize, The President,any Vice President, Secretary,any Assistant Secretary, or the Treasurer may appoint Attorneys-in-Fact or Agents who shall have authority to issue bonds, policies, or undertakings in the name of the Company. The corporate seal is not necessary for the validity of any bonds,policies, undertakings, Powers-of-Attorney, or other obligations of the corporation,The signature of any such officer and the corporate seal may be printed by facsimile," IN WITNESS WHEREOF,the RLI Insurance Company has caused these presents to be executed by its PRESIDENT with its corporate seal affixed this ttttN 1111lh4o ,t [ ,til.:'1,!.,:r.,....... ., ATTEST: 12• 0RPOR,gr•..,L' RLI INS1I NCE COMPANY '-- t II CORPORATE SECRETARY .:. ECRETARY • PRESIDENT -, •• •• � . • ` • �State of Illinois ) 'i •.••••••. ) SS ii/1/1+"f4 rrL un N unC 1t`N?tt%% County of Peoria On this 17 day of April 2013 before me, a Notary Public, personally appeared Michael J. Stone and Jean M. Stephenson, who being by me duly sworn, acknowledged that they signed the above Power of Attorney as President and Corporate Secretary, respectively, cf the said RLI INSURANCE COMPANY,and acknowledged said instrument to be the voluntary act and deed of said corporation. IIIIIk • �f Allirilt tu,t !!/(•1+, "vv. :III- ..... Notary Public a ��1 "OFFICIAL SEAL" + t NOTAnY 4 P1)5 OF JACQUELINE M. BOCKLER z SW■ WOOS COMMISSION EXPIRES 03/01/14 1 LAAA u LALLA SPA027(03/11) Packet Page -371-