1. RAILROAD COMMISSION OF TEXAS Regulatory Conference San Antonio 2014 Drilling Permits and Online Filings Advanced Valerie Atkins-Team Leader

2. What is this class? This class is giving you step by step instructions on how to file an Online W-1 Application from A-Z.

3. How to find Docket Orders for Horizontal wells Go through Legal drop down and select “Hearings and Dockets” Click on “Oil and Gas Proposals for Decisions and Orders” Click on “Field Rules, Adopted (New, Amended and Temporary)” Then select which district the field is in to locate the special field rules docket

4. Online Drilling Permits Application Filing ARE WE READY TO BEGIN ? DO I HAVE MY PLAT AND IS IT PROPERLY LABELED WITH CORRECT OPERATOR AND LEASE INFORMATION? (SWR 5) IS THIS A POOLED UNIT? IF SO, DO I HAVE MY P-12 SIGNED AND COMPLETED? (SWR 40) DO I NEED A SECOND PLAT THAT SUPPORTS MY P-12? (SWR 5 & 40)

5. Online Drilling Permits Application Filing (Type Info Here)

6. Online Drilling Permits Application Filing (Type Info Here)

7. Online Drilling Permits Application Filing (Type Info Here)

8. Online Drilling Permits Application Filing (Type Info Here)

9. Online Drilling Permits Application Filing

11. Basic Details Box When filing out the Basic Details Box, it will be filled out based on whatever your wellbore profile will be…(ie, Vertical, Horizontal and Directional)

12. Online Drilling Permits Application Filing (Type Info Here)

13. Online Drilling Permits Application Filing (Type Info Here)

14. Online Drilling Permits Application Filing If the field you are filing for has special field rules and you are applying for a horizontal well, all Rule Exceptions will be determined by the filer because the validation for the exceptions check has been taken off for that field. The system will also prompt you to do those checks so that you do not forget.

15. Online Drilling Permits Application Filing If you are filing for a field that has special horizontal field rules and the wellbore profile is a vertical or directional well, you no longer have to do the manual check for Rule 37/38. The system will now read the regular field rules and deem the filing for whatever exception it may be. The field rules are always shown at the bottom of each Field Details Box.

16. Online Drilling Permits Application Filing (Type Info Here)

17. Online Drilling Permits Application Filing Filing a P-12? P-12 must be the exactly represented on the plat and the header information must show exactly what is on the W-1 Must have a signature Can not double lines, must file as many P-12 pages required for total P-12 acreage *note* Must use RRC generated P-12 form when filing a P-12 always.

18. Online Drilling Permits Application Filing

19. 19

20. Online Drilling Permits Application Filing (Type Info Here)

21. Online Drilling Permits Application Filing

28. Contact Information Lorenzo Garza (Mgr.) Phone: 512-463-2184 Email: Lorenzo.Garza@rrc.state.tx.usLorenzo.Garza@rrc.state.tx.us Valerie Atkins (Team Lead) Phone: 512-463-6979 Email: Valerie.Atkins@rrc.state.tx.usValerie.Atkins@rrc.state.tx.us 1701 N. Congress Ave. P.O. Box 12967 Austin, TX 78711-2967

29. THANK YOU AND I HOPE YOU ENJOYED THE CLASS