COAs

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Facility Type	Facility ID/ API	Facility Name/ Number	Operator Name/ Number	Status	Field Name/ Number	Location	Location ID	Related Facilities
WELL	05-123-46250	VERDE 13-13HZ	KERR MCGEE OIL & GAS ONSHORE LP 47120	PR 5/20/2019	WATTENBERG 90750	WELD 123 NWNE 13 1N66W 6	453676

COGIS - Conditions of Approval Results

Type	Source Document	Conditions of Approval
Engineer	Form: (02 ) 401361808 11/28/2017	1) Submit Form 42 electronically to COGCC 48 hours prior to MIRU (spud notice) for the first well activity with a rig on the pad and provide 48 hour spud notice via Form 42 for all subsequent wells drilled on the pad. 2) Comply with Rule 317.j. and provide cement coverage from TD to a minimum of 200' above Niobrara and from 200’ below Sussex to 200’ above Sussex. Verify coverage with cement bond log. 3) Oil-based drilling fluid is to be used only after all fresh water aquifers are covered.
Engineer	Form: (02 ) 401361808 11/28/2017	Bradenhead tests shall be performed according to the following schedule and the Form 17 submitted within 10 days of each test: 1) Within 60 days of rig release and prior to stimulation and 2) If a delayed completion, 6 months after rig release and prior to stimulation. 3) Within 30 days after first production, as reported on Form 5A.
Engineer	Form: (02 ) 401361808 11/28/2017	Operator acknowledges the proximity of the listed well. Operator agrees to: provide mitigation option 1 or 2 (per the DJ Basin Horizontal Offset Policy) to mitigate the situation, ensure all applicable documentation is submitted based on the selected mitigation option chosen, and submit a Form 42 (“OFFSET MITIGATION COMPLETED”) stating that appropriate mitigation occurred and that it has been completed, prior to the hydraulic stimulation of this well. 05-123-14559, BALLANTYNE USX WW 1-1
Engineer	Form: (02 ) 401361808 11/28/2017	Operator acknowledges the proximity of the listed non-operated well. Operator assures that this offset list will be remediated per the DJ Basin Horizontal Offset Policy (option 4). Operator will submit a Form 42 (“OTHER – AS SPECIFIED BY PERMIT CONDITION”) stating that appropriate mitigation will be completed, during the hydraulic stimulation of this well. This Form 42 shall be filed 48 hours prior to stimulation. Operator will assure that the well’s Bradenhead is open and monitored during the entire stimulation treatment – a person will monitor for any evidence of fluid, a Bradenhead test will be performed prior to the beginning of stimulation. 05-123-07334, MARCUS STATE 1
Permit	Form: (02 ) 401361808 12/6/2017	This Permit to Drill is approved subject to all the BMPs and COAs on the most recently approved Form 2A and any subsequently approved Form 4 for the Oil and Gas Location. The most recently approved Form 2A and any subsequent Form 4s containing applicable COAs for this location shall be posted onsite during construction, drilling, and completions operations.

COGIS - Best Management Practice Results

BMP Type	Source Document	Best Management Practices
Drilling/Completion Operations	Form: (02 ) 401361808 1/9/2018	Kerr-McGee acknowledges and will comply with the COGCC Policy for Bradenhead Monitoring during Hydraulic Fracturing Treatments in the Greater Wattenberg Area dated May 29, 2012
Drilling/Completion Operations	Form: (02 ) 401361808 1/9/2018	Anti-Collision: Kerr-McGee will perform an anti-collision evaluation of all active (producing, shut in, or temporarily abandoned) offset wellbores that have the potential of being within one hundred fifty (150) feet of a proposed well prior to drilling operations for the proposed well. Notice shall be given to all offset operators within one hundred fifty (150) feet prior to drilling.
Drilling/Completion Operations	Form: (02 ) 401361808 1/9/2018	317.p Logging Program: One of the first wells drilled on the pad will be logged with Open Hole Resistivity Log and Gamma Ray Log from the kick-off point into the surface casing. All wells on the pad will have a cement bond log with gamma-ray run on production casing (or on intermediate casing if production liner is run) into the surface casing. The horizontal portion of every well will be logged with a measured-while-drilling gamma-ray log. The form 5, Completion Report, for each well on the pad will list all logs run and have those logs attached. The Form 5 for a well without open-hole logs shall clearly state "No open-hole logs were run" and shall clearly identify (by API#, well name & number) the well in which open-hole logs were run.
Drilling/Completion Operations	Form: (02 ) 401361808 1/9/2018	604c.(2).B. Closed Loop Drilling System: KMG will use a closed loop or “pitless” system for drilling and fluid management and will not construct a reserve pit.
Drilling/Completion Operations	Form: (02 ) 401361808 1/9/2018	604c.(2).C. Green Completions: Temporary above ground polyethylene water pipelines will deliver water to location operations from larger trunk lines to reduce truck traffic and minimize air pollution. Pipeline infrastructure is in place prior to completions operations to ensure saleable gas, once hydrocarbons are cut, is sent directly to sales without flaring during flowback.
Drilling/Completion Operations	Form: (02 ) 401361808 1/9/2018	604c.(2).H. BOPE: Our rigs at a minimum will have a double ram with blind and pipe ram and annular preventer.
Drilling/Completion Operations	Form: (02 ) 401361808 1/9/2018	604c.(2).I. BOPE Testing for Drilling Operations: BOPEs will be tested upon rig-up and, at a minimum, every 30 days.
Drilling/Completion Operations	Form: (02 ) 401361808 1/9/2018	604c.(2).J. BOPE for Well Servicing Operations: Blowout prevention equipment will be used on any servicing operations associated with this well. Backup stabbing valves will be used during any future servicing operations during reverse circulation. Valves shall be pressure tested before each well servicing operation using low-pressure air and high-pressure fluid.
Drilling/Completion Operations	Form: (02 ) 401361808 1/9/2018	604c.(2).K. Pit Level Indicators: All storage tanks used for active drilling operations (used in lieu of pits) contain pit level monitors with Electronic Drilling Recorders (EDR). KMG uses EDRs with pit level monitor(s) and alarm(s) for production rigs. Basic level gauges are used on tanks utilized for the surface rig.
Drilling/Completion Operations	Form: (02 ) 401361808 1/9/2018	604c.(2).L. Drill Stem Tests: No drill stem tests are planned and none will be performed without prior approval from the Director.
Drilling/Completion Operations	Form: (02 ) 401361808 1/9/2018	605.c.(1) Special Equipment: Wells will be equipped with automatic control valves and will continuously be monitored by the Integrated Operations Center (IOC) such that if a sudden change in pressure is detected the well will be shut in and fail safe.
Drilling/Completion Operations	Form: (02 ) 401361808 1/9/2018	803. Lighting: To the extent practicable, site lighting shall be shielded and directed downward and inward toward operations to avoid glare on public roads and nearby Building Units.
Drilling/Completion Operations	Form: (02 ) 401361808 1/9/2018	604.c.(4)B.vi. During completions operations, proppant is contained on location in sand silos, which are designed to minimize release and reduce silica dust at ground level and at breathing levels. The associated process has been tested to ensure compliance with OSHA & industry regulations and standards.