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BEFORE THE BOARD OF OIL, GAS AND MININGDEPARTMENT OF NATURAL RESOURCES

IN AND FOR THE STATE OF UTAH

DOCKETNO: 2016-008

FILEDFEts 2 I ?016

SECNETA'RV, BOARDOFOL, GAS û MININO

---ooOoo---

Sun-West Oil & GasWest Oil REQUEST FOR

AGENCY ACTIONPETITIONER,

V.Craig Phillips, individually and dbaUinta Oil & Gas, Mountain Oil Inc., andHomeland Gas & Oil.Inc. CAUSE NO: l3l-144

RESPONDENT---ooOoo---

Comes now the Petitioner, Sun-West Oil & Gas ("Petitioner"), and in support of itsPetition, states the following:

1. Petitioner is a resident of Midland County, State of Texas. As evidenced by

a copy of Sun-West's statement of registered agent, dated May 3, 1996,

Petitioner is an interest owner in the following wells:

Nielson 1-2081 Section LÙ_QTR-QTR _,Township 2S Range lw

Duchesne County, Utah; WI of : .00191144

Nielson 1-2081 Section LÙ_QTR-QTR _,Township 2S Range lw

Duchesne County, Utah; RI of : _ 0000244

Said well has been completed as a producer of oil or gas or both

a.

b

1

2. RESPONDENT, Craig Phillips dba Uinta Oil & Gas, Mountain Oil, Inc. andHomeland Gas and Oil,Inc.,

P.O. Box 1776(Street Address)

Roosevelt, Utah 84066,(City, State, Zip)

(43s) 722-2992 and (43s) 823-s4ss(Telephone)

is the operator of the above referenced wells.

3. Petitioner, via Howell and Ellie Spear, has held a working interest in said well

since the well was drilled in 1983. Said well is subject to the original operating

agreement wherein Sonat Exploration Company was the original operator. See

attached. Respondent took over operations of the Nielson l-20Blwithout the input

or consent of the Petitioner. There have been no subsequent operating agreements

entered into by the working interest owners

4. Petitioner has challenged Respondent to provide Petitioner a copy of

Respondent's duly authorized election to operator from an early operator;

however, Respondent has either refused such documentation or is unable to

provide it.

5. Petitioner has been harmed by Respondent's actions including, but not limited to,

the failure to make an accounting of accounts, waste, and overcharging for

administrative fees to the harm of Petitioner.

6. The breach of the Sonat Operating Agreement by Respondent is a breach of its

contractual and fiduciary obligations as operator of the well.

7. The breach of the Sonat Operating Agreement by Respondent is a continuing

breach and causes Petitioner harm on continuing basis.

2

V/HEREFORE, Petitioner respectfully requests as follows

A. Pursuant to Utah Code Ann. $ 40-6-9, (1953, as amended), the Board set this

matter for an Investigation and Negotiation Conference by the Division in

accordance with the rules of the Board of Oil, Gas and Mining ('oBoard")

B. If this matter cannot be resolved by the Investigation and Negotiation Conference,

the Board set the matter for hearing at a regularly scheduled hearing of the Board

of Oil, Gas and Mining.

C. Following such hearing, the Board enters an Order that:

1. Respondent's non-payment of proceeds on the above-referenced well is

intentional, with fulI knowledge and without reasonable justifi cation;

Respondent be removed as operator of the above mentioned well;

A complete accounting be made of the above-referenced wells, the cost of

well;

4. V/ithin ten (10) days of entry of said order, Respondent shall provide

Petitioner with a complete division order index of all interest owners

including, but not limited to, working interest owners, royalty interest

owners and overriding royalty owners. Within ten (10) days of entry of

said order, Respondent shall also provide to Respondent all addresses and

telephone numbers associated with said owners. The collecting, gathering

and providing of the information pursuant to this paragraph shall not be

2

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which shall not be charged to the interest owner in the above-referenced

J

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charged to the interest owner in the above-referenced well;

Pursuant to the accounting, all proceeds to which the Petitioner is entitled

be disbursed within ninety (90) days of the hearing, and if ordered by the

Board, interest at the rate of one and one-half percent (11/2%) per month

from date of delinquency; and a penalty oftwenty-five percent (25Y{ of

the delinquent proceeds due and owing the Petitioner; and

If Respondent is not removed as operator ofthe above-referenced well,

then, that the Respondent be required to fully comply with the Sonat

Operating Agreement including keeping all working interest o\ilTìers

informed of actions on said well and to timely pay all future proceeds from

the well in accordance with Utah Code Ann. $ 40-6-9 (1953, as amended).

of Februarv.20!5..

By:

Sun West Oil& Gas,lncP.O. Box 1684

Midland, Texas 79702

6.

r qlå.DATED ttn{ff dav

4

CERTIFICATE OF SERVICE

I hereby certify that I have this day served the foregoing instrument upon all parties ofrecord in this proceeding by mailing a copy thereot properly addressed, with postage prepaid, to:

Craig Phillips dba Uinta Oil & Gas. Mountain Oil. Inc. and Homeland Gas and Oil" Inc..(Operator Name)

P.O. Box 1776(Address)

Roosevelt" Utah 84066(Clty, State, Zip)

2l'r'^\DATED this I!ålday of February. 2016.7-

By:

5

Docket No. 2016-008Cause No. 131-144Attachment I

Ofñce of 'ffuSecretary of Stât€

lû?175'tllb!J¿

CorporatÍons SectionP.O. Bor ti6g7

Austin, Texas 787 l!-369'l

OF RSGISIENaD OruTCE.ONBOTS BY A

:STÀTEMENT OF' CHA¡,{GEREGISTERED AGENT OR

LnlNTEÐ LIå,BILNY COMPANT OR LIIIITTED

1. The name of the entity Sr¡n-blest 0i1 & Ga!, Inc.

The entity's cha¡ter/eerrificate of authorityrfire number '01213

Z, 1ãe regisered offlce address as IR[SlEñf-IT,f shown in the recordsdl s79

3.

,

a' ¡ The addræs of the NEIV resisferod office.b: (Flease provide street addres, city,,s¿¡¡.,rtzip code. Ihe ¡dd¡rss **t U" in Tex¡s.)5301 Scottshofo Court ; Midland, Texas 797A7

OR B.- 'The reglstersd off¡ce addre*E wilI not clrange.

4' The name of the registered agent as IRESENIÏ,ï shown in the recoids of the Texas secretaryofstate iç

5- A. , The name of the NSIV registered agent

OR B. X T{re regístered alent will not chenge.

7

6" F-ollowíng the ehanges shown above, the rddress,of the registercd,off¡cè and the,address of thesffîce of the regütered lgert rrill continue,to be ideuticat, :ãs.¡equired.bJ ü;. ---

The changæ shcwn above werc nuÉholheC by:Business corporatio¡u¡ $ray selcet A or ß Lim¡ted l-iabiiiry conpaniæ trg¡y select iû or ENou"Profït corporations msy sered A, B, orc Ltmitêd hrtnership s se{ect F

A. lte horrd of,directorr; ORt'd An officer of täe corporation so suthorized by thc,boerd of directorc¡ ORc'- the memht t 9{ tuå corporation in yhom'*i"u*-o;-.f d;;;;,öarior¡ is vesredpursuant to er{Ícle Z.\te of the Texas Non;ftOfït C-orporation ÀÉ.D, , [t¡ uremþersE, Its menagerrF.* Tbe liníted partnérship

of(Authorined Member'or l[anrger of LLC){General Psrtner sf LimÍted Partnenhip)

Docket No. 2016-008öuÍ,r.. ño1 t¡t-t++Attachment 2

o

a. Sonat Exploratíon Companyb. ÍtesÈburne Exploration, Incc. T{alker Energyd. John D. Chaselê. Bow Valley Petroleum¡ Inc.f . Bad.ger Oil Corporationg. Amoco Production Companyh. Louis Vla1t,er Companyi. Arthur R.. Padgettj. Evergreen Resources, Inc.k. Fuel ExploratÍon, Inc.1. Sam OiI, Inc.m. Ellie Spearn. Howell Spear

4. Addresses of the Parties:

Sonat Exploration CompanyP. O. Box 1513Houston, Texas 7725L-1513Attn¡ Senior Vice President-Operations

cc: Manager Land Department

Westburne Exploration, Inc.308 One Ðenver P1ace999 18Èh StreetDenver, Colorailo 80202Attn: Randy Fraley

lf,alker Energy353 North Belt EastSuite 600Houston, Texas ?7060Attn: Michael Ðubuisson

,fohn D. ChaselP. O. Box 70Roosevelt, Utah 84066

Bow Valley Petroleumr Inc.1700 Broadway, Suite 900Denver, Colorado 80290Attn: Thomas S. Gillen

Badger OíI CorporatÍon410 - 17th StreetSúite 1375Denver, Colorado 80202Attn: W. W. Griffith

oAttached to and made a part of that certaÍn operating Agreement¡rith an effective date of December 1, L982, by and between sonatExploration Company and the parties tisted in paragraph (3)below:

EXHIBIT IIA"

l. Contract Area: Section 20r Township 2 South, Range tWest, U.S.M., Duchesne County, Utah.

2. This Agreement shall cover the Contraet Area, to thedeepest depth drill-ed in tþe Initial !{e11 described inÀrticle VI.A, page 4, of the above described Operat,ingAgreement.

3. Interest, of the Parties:

Ovrner Pereent

56 .5203rt0 .54 69r

6 .960936 .5625t5.4688r4.8438r4.].672tI .5625rL.4277 *

.79139,6250r.35558.0888*.0888r

r00.0000t

(713) 940-40r1

(303) 691-7000

(713) s91-0306

c801) 722-28s4

(303) 861-4366

(303) 892-s616