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<br />Applications have been filed with OGCC by Basin Resources for permitting thirty-one <br />(31) facilities as gas wells. To-date, twenty four (24) facilities have been approved and <br />assigned API numbers. These wells have been transferred to Stroud Oil, the owner of the <br />natural gas estate. Seven (7) of these facilities lie on surface not owned by the applicants <br />and required sepazate surface bonding. Proof of this bonding has been submitted to <br />OGCC, and approval is expected in the neaz future. Upon receipt from OGCC, this <br />documentation will be submitted to the Division for inclusion in Exhibit 31. <br />Stroud Oil has identified three other mine related facilities that they believe could be <br />developed into gas production wells: the emulsion oil service drop, the 7200 power drop, <br />the diesel and city water service borehole, and the rock dust borehole. Stroud has elected <br />to include these in there transfer agreement with Basin Resources, and will be submitting <br />the necessary permitting documents to OGCC. Basin will submit copies of these <br />documents to the Division for inclusion in Exhibit 31 as they are received from OGCC. <br />Three copies of the technical revision and a proposed "Public Notice" for printing in the <br />local paper are included with this submittal. <br />Please contact me if you have any questions, need more information, or if the "Public <br />Notice" is not adequate. The notice will be published as soon as the Division has <br />determined that the submittal is complete. <br />SirlcGrely, <br />./1//W/~ <br />Ronald G. Thompson <br />Property Manager <br />~/t^'' ~ <br />~ ~l~ <br />~w+ <br />ti~n1.,~y ~" <br />~J <br />Enclosures <br />