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JERRY L. CANFIELD, P.A. THOMAS A. DAILY, P.A. WYMAN R. WADE, JR., P.A. DOUGLAS M. CARSON, P.A. ROBERT R. BRIGGS, P.A. C. MICHAEL DAILY, P.A.!" L. MATTHEW DAVIS, P.A. COLBY T. ROE Also Licensed in Oklahoma! Also Licensed in Wyoming & North Dakota " Certified Mediator DAILY & WOODS A PROFESSIONAL LIMITED LIABILITY COMPANY ATTORNEYS AT LAW KMW BUILDING 58 SOUTH SIXTH STREET P.O. BOX 1446 FORT SMITH, AR 72902 TELEPHONE (479) 782-0361 FAX (479) 782-6160 JAMES E. WEST DALE CARLTON PHILLIP E. NORVELL OF COUNSEL HARRY P. DAILY (1886-1965) JOHN P. WOODS (1886-1976) JOHN S. DAILY (1912-1987) BEN CORE (1924-2007) August 2, 2011 Arkansas Oil and Gas Commission 301 Natural Resources Drive, Suite 102 Little Rock, Arkansas 72205 Re: ORDER REFERENCE NO. 222-2011-08 Application of Southwestern Energy Company for Integration of Unleased Mineral Interests and working interest owners, if any, in a unit described as, and for a drilling permit for its proposed Roberson 18-19 #1-15H Well to be drilled therein Commissioners: Southwestern Energy Company, 2350 N. Sam Houston Parkway East, Houston, TX 77032, hereby applies to the Arkansas Oil and Gas Commission for the integration of unleased mineral interests and working interests, if any, in its proposed drilling unit, which is described above, and for a drilling permit for its proposed Roberson 18-19 #1-15H Well to be drilled therein. 1. The proposed drilling unit was formed as an exploratory drilling unit by Order No. 133-1-2011-05. Applicant s predecessor, Triad Land Services, also applied for and was granted integration of this unit by Order No. 133-2-2011-05. 2. Applicant incorporates herein by reference all exhibits and geologic testimony of record in Docket Reference No. 133-2011-05. Applicant states that there is not a well capable of producing within the unit. 3. Applicant states that Triad Land Services failed to include some unleased mineral owners within its original application in Docket Reference No. 133-2011-05. 4. Applicant states that it has made efforts to locate and negotiate the parties listed on Exhibit A in order to agree on a plan of development of said drilling unit but, as of this date, has been unsuccessful in obtaining leases or participations from any of them; that such parties were offered a fair and reasonable bonus consideration for the execution of oil and gas leases covering their interests; that they have been furnished

with a proposed oil and gas lease and a copy of the AAPL operating agreement form which applicant proposes to use in connection with the drilling of said well. 5. Applicant states that it is in the best interest of conservation and the protection of correlative rights of all interested parties that the proposed unit be developed for oil and gas production without undue delay. 6. Applicant requests that the Arkansas Oil and Gas Commission set this matter for public hearing, and after same, issue its order, in the alternative, that: (a) (b) (c) The owners of the unleased mineral interests indicated above execute and deliver to applicant a one year oil and gas lease, on an AAPL lease form, for a bonus consideration of $300.00 per net mineral acre to be paid as fair and reasonable compensation in lieu of the right to participate in the working interest in said unit, and that said oil and gas lease provide for a 1/5 royalty on oil and gas. The owner of unleased mineral interest indicated above be force pooled and integrated into the captioned unit with assessment of a reasonable risk factor penalty against their interest. The owner of unleased mineral interest shall participate in the cost of drilling, testing and completion of the test well to be drilled by applicant on the captioned unit, subject to the terms of an operating agreement which substantially employs the terms of the AAPL Operating Agreement. Applicant further requests that said mineral owner be required to elect within fifteen (15) days after issuance of the Commission's order which method will be pursued in the development of the above described unit, and, in the event no election is made, the default option shall be that owners of unleased mineral interests are deemed to have leased at $300.00 per net mineral acre with a 1/5th royalty. 6. Applicant further states that due to the risks and costs inherent in the drilling of the proposed well, the Commission should fix a reasonable risk factor to be assessed as a penalty against the integrated interests within the unit. The risk factor should be applied to the proportionate cost and expenses of drilling, completing and equipping the well, which would have been borne by the interest of said parties had they participated. 7. Applicant has included Albemarle Corporation and Bonanza Creek Energy Resources, LLC as interested parties as well as Great Lakes Chemical Corporation. Great Lakes Chemical Corporation does not claim any interest in the above-described unit. Applicant is unable to determine whether Albemarle Corporation and/or Bonanza Creek Energy Resources, LLC claim that they have working interest within the abovedescribed unit but request that such interests, if any, be integrated and that, if either or both are determined to own interests, they be required to elect between alternatives

6(b) and 6(c) above and that, if no election is made, such party or parties be deemed to have elected alternative 6(b). 8. Applicant further requests that this Commission's order specifically provide that any party electing either to participate or be force pooled subject to recoupment of a risk factor penalty be bound by the terms of the attached AAPL Operating Agreement for the life of commercial production within the unit so that all future unit operations might be proposed pursuant to the provisions of such agreement without the necessity of future action by this Commission. 9. Applicant also requests that said order be made applicable to any unknown spouse, heir, devisee, personal representative, successor or assign of said parties. 10. Order Reference No. 133-2011-05 provided that no drilling permit be issued for the proposed Roberson 18-19 #1-15H Well until identification of the well s operator and an additional hearing. Applicant hereby states that Applicant, an experienced Arkansas operator, will own and operate the proposed well and therefore requests that its drilling permit now be issued. 11. The name and address of the party interested in this proceeding is set forth in Exhibit "A" attached hereto and made a part hereof. 12. Please note the appearance of Thomas A. Daily of Daily & Woods, P.L.L.C., P.O. Box 1446, Fort Smith, Arkansas, 72902, on behalf of applicant. Very truly yours, Thomas A. Daily jmt

EXHIBIT A-1 Township 18, Range 19, Section 15 Unleased Mineral Interest Owners Theodore Barnes, Sr. Myrtle Pyle Carrington and/or unknown heirs Clinton Daniel Cheatham et ux, Judy B. Cheatham Joyce Edwards and/or unknown heirs Elizabeth Parker George and/or unknown heirs Sandi Lee and/or unknown heirs Anita Parker Redd John William Smalling Mary Pyle Williams and/or unknown heirs Texas Children s Medical Foundation Grand Royal Arch of Texas Texas Scottish Rite Hospital for Crippled Children R.H. Venable Properties, LTD Venable Royalty, LTD Jesse T. Beene and/or unknown heirs Possible Uncommitted Leasehold Working Interest Owners Bonanza Creek Energy Resources, LLC Albemarle Corporation Great Lakes Chemical Corporation

Theodore Barnes, Sr. 606 Jeanette Magnolia, AR 71753 05/15/2011 Attempted to contact mineral owner via telephone to make offer and mail lease. 05/16/2011 Lease mailed. Offered $100 minimum for a four years lease with a 1/5 th royalty and a three years option. Lease was out by FEDEX. 06/30/2011 Attempts to call Mr. Banks and retrieve the executed lease have been unsuccessful. 1

Myrtle Pyle Carrington and/or unknown heirs Address Unknown 05/10/2011 Searched Google, White Pages.com and Ancestry.com. Unable to locate. Contacting possible relatives with no success. Research continues to try to locate mineral owner. 07/12/2011 Attempted to contact Myrtle Pyle Carrington by researching various databases such as Google, White Pages.com to locate her whereabouts. Contacted other Pyle heirs and have been unable to locate Myrtle Pyle Carrington 2

Clinton Daniel Cheatham et ux Judy B. Cheatham 211 East Permian Drive Hobbs, NM 88240 05/13/2011 Searched Google, White Pages.com and Ancestry.com. Unable to locate. Contacting possible relatives with no success. Located and called mineral owner. 05/15/2011 Contacted Clinton Daniel Cheatham and wife Judy B. Cheatham and offered a $100 minimum lease bonus, one fifth royalty (1/5 th ) royalty. 05/16/2011 An oil and lease was prepared and mailed to Clinton Daniel Cheatham and wife Judy B. Cheatham via FedEx for delivery on 05/17/2011. 07/13/2011 Attempts to contact Clinton Daniel Cheatham and wife Judy B. Cheatham to inquire about an executed lease have been unsuccessful. Messages have been left 07/21/2011 Informed us that he was not interested and did not have time for such a small interest. 3

Joyce Edwards and/or Unknown Heirs Address Unknown 06/10/2011 Searched Google, White Pages.com and Ancestry.com. Unable to locate. Contacting possible relatives with no success. Research continues to try to locate mineral owner. 07/12/2011 Attempted to contact Joyce Edwards Heirs by researching various databases such as Google, White Pages.com, and County Cemetery Records to locate her heirs whereabouts with no success. 4

Elizabeth Parker George and/or Unknown Heirs Address Unknown 05/10/2011 Searched Google, White Pages.com and Ancestry.com. Unable to locate. Contacting possible relatives with no success. Research continues to try to locate mineral owner. 05/17/2011 Was contacted by sister Anita Parker Red. Anita Parker Red will have her contact me. 07/14/2011 Re-contacted Anita Parker Red in an attempt to obtain a lease from Elizabeth Parker George. Unsuccessful in efforts. 5

Sandi Lee and/or Unknown Heirs Address Unknown 06/10/2011 Searched Google, White Pages.com and Ancestry.com. Unable to locate. Contacting possible relatives with no success. Research continues to try to locate mineral owner. 07/12/2011 Attempted to contact Sandi Lee by researching various databases such as Google, White Pages.com, and County Cemetery Records to locate her heirs whereabouts with no success. 6

Anita Parker Redd 325 Grant 58 Sheridan, AR 72150 05/10/2011 Searched Google, White Pages.com and Ancestry.com. Unable to locate. Contacting possible relatives with no success. Research continues to try to locate mineral owner. 05/12/2011 Contacted mineral owner and mailed a lease via FEDEX. Offered $100 minimum for a 1/5 th royalty. 05/17/2011 Was contacted by mineral owner asking questions. Will talk with other relatives and send lease in. 07/16/2011 Lease never received. Contacted Anita Redd Parker to inquire as to the executed lease and to inquire about Elizabeth Parker George. message. 07/20/2011 Fedex confirmed delivery on 07/20/2011 Left 7

John William Smalling 119 Deerview CR Hot Springs, AR 71913 05/16/2011 Researched whitepages.com and Google search and found mineral owners contact information. 05/17/2011 Contacted John William Smalling and offered $100 minimum for a three year lease with a one fifth (1/5 th ) royalty. 05/19/2011 Re-contacted John William Smalling and was informed that he was not interested in leasing 07/16/2011 Mailed John William Smalling an Oil and Gas lease for $100 minimum lease bonus and a one fifth (1/5 th ) royalty. 07/20/2011 Lease mailed by Fedex on 07/20/2011 8

Mary Pyle Williams and/or Unknown Heirs Address Unknown 05/07/2011 Researched Google and White Pages.com. Husband recently deceased and she has moved. No success in finding contact information 07/05/2011 Located all of the children of J.O. Williams, Jr., Mary Pyle Williams s recently deceased husband. They do not have a relationship with her and could not assist in locating her contact information. 9

Texas Children s Medical Foundation 1935 Medical District Drive Dallas, Texas 75235-7701 05/11/2011 Contacted persons in charge of oil and gas and offered $300 per acre, 1/5 th royalty. Refused the offer and declined to lease. The Scottish Rite leasing is managed by the Venable 05/16/2011 Was contacted by Texas Children s Medical Foundation and they countered and we declined their offer. 05/17/2011 Texas Children s' Medical Foundation called. We had a good conversation and he is calling the Scottish Rites Hospital, and both Venable groups to discuss this. 05/19/2011 Lease proposal addendums was received from Venable whom is representing negotiating the addendums. 06/30/2011 Was informed by the Venable, who represent Texas Scottish Rites, Children s Medical Foundation, R. H. Venable Properties, Grand Royal Arch of Texas and the Venable Group, that they would not sign a lease under our terms or with the lease form presented. 10

Grand Royal Arch of Texas 715 Columbus Avenue Waco, Texas 76701 05/11/2011 Contacted persons in charge of oil and gas and offered $300 per acre, 1/5 th royalty. They refused the offer and declined to lease. The Grand Royal Arch of Texas leasing is managed by the Venable 05/16/2011 Was contacted by Grand Royal Arch of Texas and they countered and we declined their offer. 05/17/2011 The Grand Royal Arch of Texas called and again countered but would not accept our terms so we declined their offer. We had a good conversation and he is calling the Scottish Rites Hospital, and both Venable groups to discuss this. 05/19/2011 Lease proposal addendums was received from Venable whom is representing negotiating the addendums. 06/30/2011 Was informed by the Venable, who represent Texas Scottish Rites, Children s Medical Foundation, R. H. Venable Properties, Grand Royal Arch of Texas and the Venable Group, that they would not sign a lease under our terms or with the lease form presented. Resume of Efforts 11

Texas Scottish Rite Hospital for Crippled Children 2222 Welborn Street Dallas, Texas 75219 05/11/2011 Contacted persons in charge of oil and gas offered $300 per acre, 1/5 th royalty. They refused the offer and declined to lease. The Texas Scottish Rite Hospital leasing is managed by the Venable Group. 05/16/2011 Contact was again made and terms were discussed and we declined their offer. 05/17/2011 The Texas Scottish Rite Hospital called and terms were discussed but we declined their offer. We had a good conversation and he is calling The Grand Royal Arch, and both Venable groups to discuss this. 05/19/2011 Lease proposal addendums was received from Venable whom is representing negotiating the addendums. 06/30/2011 Was informed by the Venable, who represent Texas Scottish Rites, Children s Medical Foundation, R. H. Venable Properties, Grand Royal Arch of Texas and the Venable Group, that they would not sign a lease under our terms or with the lease form presented. Resume of Efforts 12

R H Venable Properties, LTD 3102 Oak Lawn Ave #540 Dallas, Texas 75219 05/11/2011 Contacted persons in charge of oil and gas offered $300 per acre, 1/5 th royalty. They refused the offer and declined to lease. 05/16/2011 Was contacted by R H Venable Properties, LTD. and terms were discussed but we declined their counter offer. 05/17/2011 The R H Venable Properties, LTD. Called and again discussed the terms they wanted but we declined their counter offer. We had a good conversation and he is calling The Grand Royal Arch, and both Venable groups to discuss this. 05/19/2011 Lease proposal addendums was received from Venable whom is representing negotiating the addendums. 06/30/2011 Was informed by R H Venable Properties, LTD., who represents Texas Scottish Rites, Children s Medical Foundation, R. H. Venable Properties, Grand Royal Arch of Texas and the Venable Group, that they would not sign a lease under our terms or with the lease form presented. 13

Venable Royalty, LTD 5910 North Central Expressway Suite 1470 Dallas, Texas 75206 05/11/2011 Contacted persons in charge of oil and gas and offered $300 per acre, 1/5 th royalty. They refused the offer and declined to lease. 05/16/2011 Was contacted by Venable Royalty, LLC. and terms were discussed again. We declined their counter offer. 05/17/2011 The Venable Royalty, LLC called and again discussed the terms they wanted but we declined their counter offer. We had a good conversation and he is calling The Grand Royal Arch, and both Venable groups to discuss this. 05/19/2011 Lease proposal addendums was received from Venable whom is representing negotiating the addendums. 06/30/2011 Was informed by R H Venable Properties, LTD., who represents Texas Scottish Rites, Children s Medical Foundation, R. H. Venable Properties, Grand Royal Arch of Texas and the Venable Group, that they would not sign a lease under our terms or with the lease form presented. 14

Jesse T. Beene or the unknown heirs Address Unknown 03/16/2011 Ran name at courthouse through probate in Columbia County, Arkansas, and also through Ancestry.com. Also ran a search through 411.com to determine who the heirs of J T. Beene are. 05/18/2011 Located and mailed leases to the known heirs of Jesse T. Beene that could be located 07/16/2011 Numerous heirs have been found and leased but some remain unknown. Efforts to find them continue by talking to known heirs. 15

Albemarle Corporation 2270 Highway 79 South Magnolia, Arkansas 71754 Attention: Celia McQuistion 08/02/2011 In the event Albemarle claims a working interest a well election letter was mailed to the attention of Celia McQuistion, Land Manager of Albemarle Corporation in Magnolia, Arkansas.

Bonanza Creek Energy Resources, LLC 1331 Lamar, Suite 1135 Houston, Texas 77010 Attention: Land Manager 08/02/2011 In the event Bonanza Creek claims a working interest a well election letter was mailed to the attention of the Land Manager of Bonanza Creek.