Under The Oil and Gas Conservation Act. Bigstick Second White Specks Gas Pool

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1 MINISTER'S ORDER MRO 1061/05 PO 42 Under The Oil and Gas Conservation Act Bigstick Second White Specks Gas Pool Pursuant to section 17 of The Oil and Gas Conservation Act, MRO 573/05 PO 23, dated June 28, 2005 is rescinded and it is ordered that the provisions in the following schedule shall apply to the drilling of, and production from, gas wells in the "Bigstick Second White Specks Gas Pool", effective December 1, Dated at Regina, Saskatchewan, November 29, Myron Sereda, Acting Assistant Deputy Minister Petroleum and Natural Gas Saskatchewan Industry and Resources Schedule 1. The drainage unit for the drilling and completion of a gas well shall be one Section with the exception of the following drainage units which shall be: (a) (b) (c) (d) (e) (f) the fractional Section containing approximately 140 hectares within the area described in clause 2(a); the north half of a Section and the south half of a Section within the area described in clauses 2(b) and (d); the fractional north half of a Section and the fractional south half of a Section containing approximately 105 hectares within the area described in clause 2(c); the east half of a Section and the west half of a Section within the area described in clause 2(e); the north-east, north-west, south-east and south-west quarters of a Section within the area described in clause 2(f), 2(g), 2, 2(j), 2 (k) and 2(l); the fractional quarter section containing approximately 40 hectares within the area described in clause 2(h). 2. Within a drainage unit, the sides of the target area shall be 500 m from the sides of the drainage unit with the exception of the following: (a) In Township 15, Range 30: The north half of fractional Section 13. the west side of the target area shall be located 609 m from the east side of the drainage unit; the east, north and south sides of the target area shall be located 200 m from the corresponding sides of the fractional north half of a Section.

2 - 2 - (b) In Township 12, Range 25: Sections 14 to 23 and 27 to 35; In Township 13, Range 25: Sections 4 to 7, 18 and 19; In Township 12, Range 26: Sections 6 to 9, 13 to 16, 23, 24, 25, 35 and 36; In Township 13, Range 26: the north half of Section 11, the north half of Section 12, Sections 13, 14, 23, 24 and the north In Township 12, Range 27: half of Section 27; Sections 1, 2, the south half of Section 17, Section 26, the south half of Sections 27, 34 and 35; In Township 13, Range 27: Section 23; In Township 12, Range 28: the north half of Section 24; In Township 13, Range 28: the south half of Sections 7, 17 and 18; In Township 13, Range 29: Sections 1 to 12, the south half of Sections 17 and 18, the north half of Sections 23, 24, and 25, Section 26, the south half of Section 35; In Township 15, Range 29: the north half of Sections 15 to 18; In Township 13, Range 30: Sections 1, 12 and the north half of Sections 24 and 25. in the north drainage unit of the Section, the sides of the target area shall be located 200 m from the corresponding sides of the north-east quarter. in the south drainage unit of the Section, the sides of the target area shall be located 200 m from the corresponding sides of the south-west quarter. (c) In Township 13, Range 30: fractional Sections 2, 11, 23, 26 and 35; In Township 14, Range 30:fractional Sections 23, 26 and 35. the east and west sides of the target area shall be located 406 m from the corresponding sides of the drainage unit; the north and south sides of the target area shall be located 200 m from the corresponding sides of the drainage unit. (d) In Township 13, Range 27: Section 15; In Township 12, Range 28: the north half of Section 25, Section 26, the south half of Section 27, the south half of Sections 34 and 35; In Township 13, Range 28: the north half of Sections 4 and 5, Section 8, the north half of Section 9. in the north drainage unit of the Section, the target area shall be a 235 m square situated in the north-east corner of legal subdivision 16; in the south drainage unit of the Section, the target area shall be a 235 m square situated in the north-east corner of legal subdivision 6;

3 - 3 - (iii) the approval of the Rural Municipality shall be obtained prior to drilling a well closer than 75 m to a road allowance but no wells shall be drilled within 35 m of a road allowance. (e) In Township 12, Range 25: Section 26; In Township 13, Range 27: the east half of Section 34; in the east drainage unit of the Section, the sides of the target area shall be located 200 m from the corresponding sides of the north-east quarter; in the west drainage unit of the Section, the sides of the target area shall be located 200 m from the corresponding sides of the south-west quarter. (f) In Township 14, Range 25: Sections 5 and 18; In Township 12, Range 26: Sections 17 to 20; In Township 14, Range 26: Sections 4, 5, 6, 8 and 12; In Township 12, Range 27: Sections 3, 4, 10 to 16, the north half of Section 17, Sections 19 to 25, the north half of Section 27, the north half of Sections 34 and 35, Section 36; In Township 13, Range 27: Section 22, the north-east quarter of Section 26, the west half and north-east quarter of Section 27; In Township 12, Range 28: the south half of Section 24; In Township 13, Range 28: Section 6, the north half of Sections 7, 17 and 18, Sections 19 and 29 to 33; In Township 13, Range 29: Sections 13 to 16, the north half of Sections 17 and 18; Sections 19 to 22, the south half of Sections 23, 24, and 25, Sections 27 to 34, the north half of Section 35 and Section 36; In Township 14, Range 29: Sections 3 to 10 and 16 to 18; In Township 13, Range 30: Section 13, the east half of Section 14, the south half of Sections 24 and 25 and Section 36; In Township 14, Range 30: Section 1, the east half of Sections 2 and 11, Sections 12 and 13 and the east half of Section 14. the sides of the target area shall be located 200m from the corresponding sides of the drainage unit. (g) In Township 13, Range 26: Section 26; In Township 14, Range 26: Section 26; In Township 12, Range 27: Sections 28 to 33; In Township 13, Range 27: Sections 4 to 9, 16 to 21, 28 to 30; In Township 12, Range 28: the south half of Section 25, the north half of Section 27, Section 33, the north half of Sections 34 and 35 and Section 36; In Township 13, Range 28: Sections 1 to 3, the south half of Sections 4, 5 and 9, Sections 10 to 16 and 20 to 28. the target area shall be a 235 m square situated in the north-east corner of legal subdivisions 6, 8, 14 and 16; the approval of the rural municipality shall be obtained prior to drilling a well closer than 75 m to a road allowance but no wells shall be drilled within 35 m of a road allowance;

4 - 4 - (iii) the following directional well, which bottomed in legal subdivision W3M, shall be deemed to be completed in the legal subdivision indicated. Well Location Licence No. Deemed on Target Location (91) W3M 97H W3M (h) In Township 13, Range 30: Legal Subdivisions 3 to 6 and 11 to 14 of Section 14; In Township 14, Range 30: Legal subdivisions 3 to 6 and 11 to 14 of Sections 2, 11 and 14. the east and west sides of the target area shall be located 150m from the corresponding sides of the drainage unit; the north and south sides of the target area shall be located 200 m from the corresponding sides of the drainage unit. In Township 13, Range 27: Sections 31, 32 and 33; In Township 14, Range 27: Sections 5 to 9, 16 to 20 and 29 to 32; In Township 15, Range 27: Sections 5 to 7; In Township 13, Range 28: Sections 34, 35 and 36; In Township 14, Range 28: Sections 1 to 36; In Township 15, Range 28: Section 1 to 12; In Township 14, Range 29: Sections 1, 2, 11 to 15, 19 to 36; In Township 15, Range 29: Sections 1 to 12, the south half of Sections 15 to 18; In Township 14, Range 30: Sections 24, 25 and 36; In Township 15, Range 30: fractional Sections 1, 12 and the south half of fractional Section 13. all wells shall be located a minimum of 500 m from any other well capable of production from the Second White Specks formation. (iii) no wells shall be drilled or completed after June 1, 2000 within 200 m of the south or west boundaries of the block of land described above, or; (A) within 200m of the east boundary of Section 33 in Township 13 in Range 27; or (B) within 200 m of the east boundary of Sections 9, 16, 20, 29 or 32 in Township 14 in Range 27; or (C) within 200 m of the north boundary of Sections 16 or 32 in Township 14 in Range 27; or (D) within 200 m of the north or east boundaries of Sections 5 or 7 in Township 15 in Range 17; unless otherwise ordered by the minister. (iv) the approval of the Rural Municipality shall be obtained prior to drilling a well closer than 75 m to a road allowance but no wells shall be drilled within 35 m of a road allowance.

5 - 5 - (j) In Township 13, Range 25: Sections 1 to 3, 8 to 16, 21 to 28 and 33 to 36; In Township 14, Range 25: Sections 1 to 4 and 6 to 17; In Township 12, Range 26: Sections 21, 22 and 26 to 34; In Township 13, Range 26: Sections 4 and 5; In Township 13, Range 27: Sections 1 to 3, 10 to 14, 24, 25, the south half and north-west quarter of Section 26, the south-east quarter of Section 27, Sections 35 and 36. all wells shall be located a minimum of 500 m from any other well capable of production from the Second White Specks formation. (iii) no wells shall be drilled or completed after July 1, 2001 within 200 m of the perimeter of the block of land described above, unless otherwise ordered by the minister. (iv) the approval of the Rural Municipality shall be obtained prior to drilling a well closer than 75 m to a road allowance but no wells shall be drilled within 35 m of a road allowance. (k) In Township 13, Range 26: Sections 1 to 3, 6 to 9, 31, 32 and 34; In Township 14, Range 26: Sections 1, 2, 7, 11, 15 to 22, 29 to 32, 34 and 35; In Township 14, Range 27: Sections 2, 3, 4, 10 to 15, 21 to 28 and 33 to 36; In Township 15, Range 27: Sections 2, 3, 4 and 8; all wells shall be located a minimum of 500 m from any other well capable of production from the Second White Specks formation. (iii) no wells shall be drilled or completed after May 1, 2003 within 200 m of the perimeter of the block of land described above, unless otherwise ordered by the minister. (iv) the approval of the Rural Municipality shall be obtained prior to drilling a well closer than 75 m to a road allowance but no wells shall be drilled within 35 m of a road allowance. (l) In Township 13, Range 25: Sections 17, 20, 29, 31 and 32; In Township 13, Range 26: Section 10, the south half of Section 11, the South half of Section 12, Sections 15 to 22, the south half of Section 27, Sections 28 and 33; In Township 14, Range 26: Sections 3, 9, 10, 13, 14 and 23; In Township 13, Range 27: the west half of Section 34; In Township 14, Range 27: Section 1. (iii) all wells shall be located a minimum of 500 m from another well capable of production from the Second white Specks formation. no wells shall be drilled or completed after July 1, 2005 within 200 m of the perimeter of the block of land described above, unless otherwise ordered by minister.

6 (iv) the approval of the Rural Municipality shall be obtained prior to drilling a well closer than 75 m to a road allowance but no wells shall be drilled within 35 m of a road allowance 3. Unless otherwise ordered by the minister, wells drilled within the target area and producing from the Bigstick Second White Specks Gas Pool shall not be subject to a production allowable with the exception of wells drilled outside the target areas specified in section 2 and the following off-target gas wells which shall produce in accordance with their latest established Daily Allowable: Coseka et al Hatton , and Coseka et al Hatton Unless otherwise ordered by the minister, wells drilled within the target area prior to July 1, 2003 shall be considered as being on-target within the reduced spacing area as described in clauses 2(b), (d), (e), (f), (g), (h),, (j) and (k). 5. For gas wells completed within the target area, or where a waiver of the off-target penalty has been approved by the minister, a single point test of the open flow potential carried out in accordance with guidelines published by Saskatchewan Industry and Resources shall be an approved test method under subsection 73(2) of The Oil and Gas Conservation Regulations, The operator shall have the following logs taken from total depth to surface casing shoe as a minimum requirement: (a) (b) (c) for at least one well per Section, an approved resistivity log or standard electric log shall be run; an approved pulsed neutron capture log may be substituted for the requirements of clause (a); the remaining wells on a Section shall be logged with an approved radioactivity log, consisting of both natural and induced radioactivity measurements, or in accordance with clause (a) or (b).