February 2, Re: DOCKET REFERENCE NO

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Judith Harrington
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1 PPGMR LAW, PLLC 101 MORGAN KEEGAN DRIVE, SUITE A LITTLE ROCK, AR P.O. BOX LITTLE ROCK, AR TEL: (501) FAX: (501) PPGMRLAW.COM LITTLE ROCK EL DORADO JAMES D. RANKIN III JIM@PPGMRLAW.COM February 2, 2017 Hand Delivery Arkansas Oil and Gas Commission Mr. Lawrence E. Bengal, Director Mr. Shane Khoury, Deputy Director, General Counsel 301 Natural Resources Drive, Suite 102 Little Rock, AR Re: DOCKET REFERENCE NO Application of BHP Billiton Petroleum (Fayetteville) LLC, to Extend Temporary Abandonment Status for the McKinney H well, Section 25, Township 8N, Range 9W, White County, Arkansas Commissioners: BHP Billiton Petroleum (Fayetteville) LLC, 1360 Post Oak Blvd, Suite 150, Houston, TX ( Applicant ), submits its request to extend the Temporary Abandonment Status for the McKinney H well, with a surface location in Section 25, Township 8N, Range 9W, White County, Arkansas, as more specifically set forth below. 1. Applicant was granted initial Temporary Abandonment ( TA ) status for the McKinney H well (Permit # 40551) on August 5, 2014, and the 3-year TA period will expire on August 5, Applicant is filing this application for extension of the TA status for an additional 3-year period. Rule B-7(h)(1) prohibits a TA status to continue for more than three years without application to and approval from the Commission. 2. The McKinney H well was completed in the Fayetteville Shale formation with an initial production date of March 15, The current productivity of the well is insufficient to support ongoing production without conducting substantial additional operations that are uneconomic in the current price environment.

2 PPGMR LAW, PLLC BHP Billiton Petroleum (Fayetteville) LLC AOGC Docket: February 2, 2017 Page 2 3. The integrity of the McKinney H wellbore is sufficient to support production, and the well will continue to be maintained in full compliance with Commission rules and regulations. 4. In compliance with Rule B-7(h)(3)(d)(ii), Applicant demonstrates protection of groundwater by running a packer on the tubing. A packer was set at 5,388, which far exceeds 150 feet below the base of the lowest usable groundwater in the area. 5. Applicant respectfully requests that the Commission enter an order extending the TA status of the McKinney H well for an additional 3-year period beginning on and effective as of August 5, 2017, and continuing for 3 years so long as Applicant remains in compliance with applicable rules and regulations. This action would protect the correlative rights of all interested parties and avoid waste. 6. Consistent with typical Commission requirements for extension of TA status, Applicant states the following: (a) (b) Applicant will provide to Commission staff a third-party estimate of the cost to plug and abandon the subject well, and upon approval, Applicant is willing to provide individual financial assurance sufficient to cover the cost of plugging and abandoning the well by a third party. The plugging cost estimate and financial assurance shall be provided on or before the original date of expiration of the TA status, August 5, 2017; and Applicant agrees to a Commission-imposed restriction prohibiting the transfer of ownership of the subject well without first obtaining approval through a hearing before the Commission. 7. Below is a list of Exhibits attached to this Application, which Applicant requests be made a part of the record of this proceeding: A. List of Parties Receiving Notice B. Proof of Publication (to be submitted at hearing; notice copy attached) C. Affidavit of Notice to Interested Parties (executed copy to be submitted at hearing)

3 PPGMR LAW, PLLC BHP Billiton Petroleum (Fayetteville) LLC AOGC Docket: February 2, 2017 Page 3 Please note the appearance of James D. Rankin III, PPGMR Law, PLLC, P.O. Box , Little Rock Arkansas , on behalf of Applicant. Respectfully Submitted, PPGMR LAW, PLLC JDR/nf James D. Rankin III Attorneys for BHP Billiton Petroleum (Fayetteville) LLC

4 Exhibit A Docket # RE: BHP Billiton Petroleum (Fayetteville) LLC AOGC Application List of Interested Parties BHP BILLITON PETROLEUM (FAYETTEVILLE) LLC BP AMERICA PRODUCTION COMPANY WARWICK ARES, LLC

5 EXHIBIT B NOTICE NOTICE IS HEREBY GIVEN that BHP Billiton Petroleum (Fayetteville) LLC, has filed an Application to Extend Temporary Abandonment Status for the McKinney H well, with a surface location in Section 25, Township 8N, Range 9W, White County, Arkansas. The Commission-assigned Docket Number for the Application is: Docket Number: Applicant requests that said Order be made applicable to the following parties, successor or assigns of the following parties: BHP BILLITON PETROLEUM (FAYETTEVILLE) LLC BP AMERICA PRODUCTION COMPANY WARWICK ARES, LLC NOTICE IS FURTHER GIVEN that said application will be heard by the Arkansas Oil and Gas Commission at a public hearing commencing at 9:00 am on February 22, 2017, or as soon thereafter as possible, to be held at the Embassy Suites, 400 Convention Blvd., Hot Springs, Arkansas Due to the length of some docket items, the hearing may continue into the following day. Contact information for Oil & Gas Commission offices is as follows: El Dorado ofc: 2215 West Hillsboro, El Dorado, AR ; ph Fort Smith ofc: 3309 Phoenix Avenue, Ft. Smith, AR 72093; ph Little Rock ofc: 301 Natural Resources Dr., Ste 102, Little Rock, AR 72205; ph Please use the appropriate docket number in any inquiries to the Commission concerning this matter. Inquiries should be directed to Alan York, Commission Attorney, at the Little Rock address, or by at objections@aogc.state.ar.us. Any parties who propose to oppose a filed application, shall notify, in writing, or via at objections@aogc.state.ar.us, the Hearing Officer or Director of the Arkansas Oil and Gas Commission no later than the close of business on the Friday before the scheduled public hearing date indicated on the Hearing Agenda.

6 STATE OF ARKANSAS ) ) COUNTY OF PULASKI ) EXHIBIT C BEFORE THE ARKANSAS OIL & GAS COMMISSION KNOW ALL MEN BY THESE PRESENTS: AFFIDAVIT OF NOTICE TO INTERESTED PARTIES COMES NOW NICOLE FRAZIER, Affiant herein, who after being by me duly sworn, states on oath as follows, to-wit: 1. I, NICOLE FRAZIER, am the assistant to James D. Rankin III, who has been retained to represent BHP Billiton Petroleum (Fayetteville), LLC (Applicant) before the Arkansas Oil & Gas Commission at the February 22, 2017 hearing in Hot Springs, Arkansas, to be heard in connection with the following matter: Re: DOCKET REFERENCE NO Application of BHP Billiton Petroleum (Fayetteville) LLC, to Extend Temporary Abandonment Status for the McKinney H well, Section 25, Township 8N, Range 9W, White County, Arkansas 2. I hereby certify that a true and correct copy of the Notice attached hereto has been placed in the United States Mail, postage prepaid, on or before the day of February, 2017, addressed to each of the parties named in the Application as Interested Parties, Exhibit A. 3. This Affidavit is made and executed based upon my own personal knowledge. FURTHER Affiant sayeth not. NICOLE FRAZIER SUBSCRIBED AND SWORN to before me, a Notary Public, on this day of February, Notary Public My Commission Expires:

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