Christian C. Sizemore, Land Lead Newfield Exploration Company

Christian C. Sizemore, Land Lead Newfield Exploration Company

You could say that I grew up with oil and gas in my blood. I am the son of a lifelong landman, born and raised in Billings, Montana. After graduating from Billings Central Catholic I attained an associates in Engineering and also a Bachelors of Science in Business Administration with a focus in Finance, from Montana State University-Billings. Although I didn't focus my education specifically on oil and gas, I knew at the time, that this was the industry I was destined for. In fact, I spent over a decade in the field working for Lonewolf Energy, the company my father built. Here I was able to interact and gain experience across much of the Rockies including many of the Native American Reservations including Fort Belknap, Fort Peck, Crow, Yakima, Turtle Mountain and Blackfeet to name a few. At this point in my career I knew I wanted to gain "inhouse" experience which led me to join Newfield Exploration in 2011. Once "in-house" my focus became the Ute Indian Tribe and Newfield's ongoing operations in the Uinta Basin. I am happily married to my loving wife, Elizabeth, and we are blessed with our incredible four year old son and landman in training, Cabrin.

Topic One History of how Indian Country came to be Topic Two Fee Simple verses Tribal verses Allotted Topic Three Bureau of Indian Affairs Topic Four Pooling in a Resource Play Topic Five Communitization Agreements Topic Six Preliminary Communitization Agreements Question and Answer Sources

History of how Indian Country came to be

Treaties with the tribes From 1778 to 1871 the United States and many tribes signed treaties where by the tribes gave up millions of acres to the United States in exchange for protection and other rights and benefits Federally recognized tribe 566 American Indian and Alaska Native tribes Recognition through treaties, acts of Congress, presidential executive orders or federal court decisions Government to Government relationship Sovereign Nations Federal Indian Reservation 326 land areas 56.2 million acres Largest 16 million acre Navajo Nation in Arizona, New Mexico and Utah Smallest 1.32 acre parcel Pit River Tribe s cemetery in California

American Indian Population 5.2 million or 1.7% of the total U.S. Population 39% growth from 2000 to 2010 census Top 5 Cities with highest percentage of American Indians Anchorage, AK 12.4% Tulsa, OK 9.2% Norman, OK 8.1% Oklahoma City, OK 6.3% Billings, MT 6.0%

Ute Indian Tribe Establishment of Reservation Uintah Reservation established by Executive Order in 1861 Uncompahgre Reservation established by Executive Order in 1882 In 1886 consolidated reservations to Uintah & Ouray Reservation Three bands Whiteriver Uncompahgre Uintah Business Committee governing body made up of two members from each band 3,157 tribal members with over half living on the reservation Ute Partition Act of 1954 Termination plan for mixed-bloods 490 people terminated 1956 agreed on division of assets Ute Tribe-72.84% Terminated Utes-27.16% Ute Distribution Corporation (1958)

Fee Simple Vs. Tribal Vs. Allotted

Fee Simple Ownership interest in real property limited by government powers such as taxation and eminent domain Lands held in Trust by the United States Tribal Lands: Lands held on behalf of a Tribe Allotted Lands: Lands held on behalf of an individual Indian mineral owner or the heirs of the original owner General Allotment Act of 1887 (Dawes Act) Indian Reorganization Act of 1934 Currently there is over 10 million acres held for individual allotees and their heirs Lands in limbo between Trust and Fee status Fee Lands under Allotted: BIA does not have trust responsibility Trust interest transfers to Non-Indian Owner

Bureau of Indian Affairs

History of the Bureau of Indian Affairs 1775 established Committee on Indian Affairs headed by Benjamin Franklin 1789 responsibilities transferred to Secretary of War 1824 Secretary of War, John C. Calhoun administratively established the BIA 1832 Congress legislatively established the BIA 1849 the BIA was transferred to Interior Department 45 Commissioners of Indian Affairs since inception with only six (6) Native Americans

Structure of departments Department of Interior Secretary Sally Jewell Indian Affairs Assistant Secretary Kevin Washburn Regional Offices (12 Regions) Regional Director Local Agency Offices Superintendent

BIA s Mission Statement: "The BIA's mission is to enhance the quality of life, to promote economic opportunity, and to carry out the responsibility to protect and improve the trust assets of American Indians, Indian tribes and Alaska Natives. We will accomplish this through the delivery of quality services, maintaining government-to-government relationships within the spirit of self-determination. Oversight of Oil and Gas activities on lands held in trust Ultimate approval for any lease or development agreement which comprises lands held in trust Jurisdiction of permitting on surface lands which are held in trust

Leasing Tribal Minerals Indian Mineral Development Act of 1982 Superintendent final approval Leasing Allotted Minerals Lease sale under sealed bid or negotiated leases Acquire signatures on sliding scale 0-5 owners acquire 90% of trust interest 6-10 owners acquire 80% of trust interest 11-19 owners acquire 60% of trust interest 20 or more owners acquire majority trust interest Allotted lease is issued at 100% of the minerals held in trust Superintendent final approval

Pooling in a Resource Play

UT 4-17H Horizontal lateral produces from multiple federal managed leases UT 6-17 Vertical well on Tribal minerals Both pooled on 640 ac. basis Example Key Green Allotted 37.50% Light Green Tribal 25.00% Yellow Fee Simple 37.50%

Communitization Agreements

Communitization Agreement ( CA ) Provides the ability to pool federal lands including Indian lands with other lands in a Drilling Spacing Unit ( DSU ) Requirements for CA prior to submittal State spacing order covering area and the well being communitized All Working Interest owners consent Any other interest holders in DSU requiring consent Tribal, Allotted, Federal, State and Fee owners without consent to pool in lease State force pooling order if you cannot acquire all consents

Utah Division of Oil, Gas & Mining (UDOGM) NO interest outstanding Op Drills & Completes O&G Well YES interest outstanding Op Approve Order to pool outstanding interest Notify Compulsory Pooling of outstanding interest if any Op Prepare Communitization Agreement RI Owners Requiring WI Owners Required Parties UDC Tribal BC ONRR Set-up for payment E&M Execute Consent Documents Notify for Set-up BIA Allottees Processes and Superintendent Approves CA BLM Send Notification Letter Notify Notify Notify Send Completed CA BLM Op Op Payment can be made to ONRR for Allotted Royalties BLM Issues Agreement Number BIA Notifies BLM to issue Agreement Number Op Finalize Communitization Agreement

The Communitization Agreement Process 1) Operator drills and completes an oil & gas well capable of production 2) Operator makes determination if compulsory pooling is necessary based on if the Drilling Spacing Unit ( DSU ) has any outstanding interest 1) No there is no outstanding interest in DSU proceed to Step 3 2) Yes there is outstanding interest in DSU 1) Compulsory Pooling hearing is needed through Utah Division of Oil, Gas and Mining ( UDOGM ) 1) Final attempt notice to outstanding owners at least thirty (30) days prior to submitting hearing application 2) Submit hearing application to UDOGM 3) Notice outstanding owners of hearing date and reason 4) File Exhibits with UDOGM prior to hearing 5) Hearing before UDOGM to compulsory pool the DSU and the outstanding interest 6) UDOGM approves the order 3) Operator prepares Communitization Agreement ( CA ) 1) Obtain executed consent forms from following parties in the DSU if needed 1) All Working Interest Owners 2) Lessors that require consent 1) Ute Distribution Corp ( UDC ) 2) Ute Indian Tribe Business Committee ( Tribal BC ) 1) Work through Energy & Minerals Department ( E&M ) 4) Operator finalizes the CA and sends to Bureau of Indian Affairs ( BIA ) 1) Notify State Bureau of Land Management ( BLM ) that CA was sent 5) BIA notifies BLM to issue determination and agreement number 6) BIA notifies Allotted owners if the pooled unit contains Allotted leases 7) BLM issues determination and agreement number 8) BIA Superintendent signs on behalf of the pooled Allotted owners 9) BIA Superintendent approves the CA 1) Notify BLM of approval 2) Notify Operator of approval 10) BIA notifies Office of Natural Resources Revenue ( ONRR ) that the CA was approved and for ONRR to Set-up for payment 11) ONRR will set-up the CA along with all associated federal leases including Tribal and Allotted 12) Operator can make payments on producing properties

Preliminary Communitization Agreements

Preliminary Communitization Agreement ( Pre-CA ) Provides the ability to expedite the conditional approval to pool federal lands including Indian lands with other lands in a DSU Requirements for Pre-CA prior to submittal State spacing order covering area and the well being communitized All Working Interest owners consent Any other interest holders in DSU requiring consent Tribal, Allotted, Federal, State and Fee owners without consent to pool in lease State force pooling order if you cannot acquire all consents

Op Drills & Completes O&G Well Op Op Prepare Preliminary Communitization Agreement ONRR Set-up for payment BIA Op Notify for Set-up Op Payment can be made to ONRR for Allotted Royalties BLM Issues PCA Agreement Number BIA Seven (7) day notification prior to BLM Submittal Send Preliminary Communitization Agreement

The Preliminary Communitization 5) BLM issues a conditional approval and Agreement Process agreement number 1) BLM notifies Office of Natural Resources 1) Operator drills and completes an oil & Revenue ( ONRR ), BIA and Operator of Pre-CA gas well capable of production conditional approval 2) Operator prepares the Preliminary 2) Operator sends two (2) copies of signed Pre-CA including the BLM conditional approval letter to Communitization Agreement ( Pre-CA ) BIA 1) Operator only execution on Pre-CA 6) ONRR will set-up the Pre-CA along with 3) Operator notifies Bureau of Indian all associated federal leases including Affairs ( BIA ) prior to submittal of Tribal and Allotted Pre-CA to State Bureau of Land 7) Operator can make payments on Management ( BLM ) producing properties 1) Seven (7) day notification email including the following documentation: 1) Plat of Pre-CA Drilling Spacing Unit ( DSU ) 2) Recapitulation of tracts within DSU 3) Allotted and Tribal lease numbers and associated acreage amounts 4) BLM Master Title Plat covering the DSU 4) Operator sends Pre-CA package to BLM after expiration of seven (7) day notice

Cornell University Law School (CFR Source) http://www.law.cornell.edu/ Uintah Basin Teaching American History Project http://www.uintahbasintah.org/utehistory.htm US Department of the Interior http://www.doi.gov/index.cfm US Department of the Interior Bureau of Land Management http://www.blm.gov/ US Department of the Interior Indian Affairs http://www.bia.gov/index.htm Utah.com http://www.utah.com/tribes/ute_main.htm Utah.gov Land Lead Newfield Exploration Company csizemore@newfield.com http://historytogo.utah.gov/people/ethnic_cultures/the_history_of_utahs_american_indians/ Ute Indian Tribe http://www.utetribe.com/ Weber State University http://faculty.weber.edu/kmackay/history_3010-treaties.htm Photos courtesy of Elizabeth Sizemore Photography, LLC. http://www.elizabethsizemore.com/