Fred Andrews 1-A (Fortuna Energy Inc.)
May 27, 2009
New York State Department of Environmental Conservation
Division of Mineral Resources, Bureau of Oil and Gas Regulation
Notice of Compulsory Integration Hearing
Date: July 1, 2009
Time: 9:00 am
Place: Room PA-129 A
NYS Department of Environmental Conservation
625 Broadway, 1st Floor
Albany, NY 12233
The Department of Environmental Conservation ("the Department") hereby gives notice, pursuant to Environmental Conservation Law ("ECL") §23-0901(3)(c), that a public integration hearing will be held at the time and place stated above to address compulsory integration of interests in the following well.
|Well Operator||Well Name||Town||County||API Number|
|Fortuna Energy Inc.||Fred Andrews1-A||Big Flats||Chemung||31-015-23182-01-00|
Compulsory integration of interests within the spacing unit for the well listed above is required because the unit includes one or more owners who have not entered into a voluntary lease or participation agreement with the well operator. The ECL refers to such owners as "uncontrolled owners." A September 8, 2006, spacing and compulsory integration order previously issued for the subject well was vacated by Interim Decision and Order of the Commissioner dated January 7, 2009. A new spacing order for the well was issued May 1, 2009.
For the well listed above, THE WELL OPERATOR is required to provide a copy of this notice and the following documents to each uncontrolled owner 30 days before the hearing:
1. Compulsory Integration Election Form (Department form 06-1-1), with the heading information and estimated cost completed by the well operator.
2. An Authorization for Expenditure which details the estimated well costs, including a fixed rate charge for supervision of the activities listed in ECL §23-0901(3)(a)(5), that any owner electing to be integrated as a PARTICIPATING OWNER must pay to the well operator before or at the conclusion of the integration hearing.
3. A draft integration order for the well.
Each UNCONTROLLED OWNER who receives this notice is required to make an election on the Compulsory Integration Election Form, have the form notarized, and return the original notarized form by certified mail to the Department and a copy by certified mail to the Well Operator within 21 calendar days of receiving this notice. The Department recommends that, prior to making an election, the uncontrolled owner carefully review the entire text of the Compulsory Integration Election Form, the draft integration order and the Department's publication, Landowner's Guide to Compulsory Integration Options . Uncontrolled owners who cannot access this brochure on the Internet should phone 518-402-8056 to request a printed copy.
FAILURE BY AN UNCONTROLLED OWNER TO RETURN THE ELECTION FORM WITHIN 21 DAYS WILL RESULT IN INTEGRATION AS A ROYALTY OWNER.
Any uncontrolled owner who OBJECTS to any of the information presented in this notice and/or the accompanying documents must still make an election within 21 days, and must attend the hearing to present the objection(s). Owners must be prepared to present documentation in support of any objections.
Additional information on the integration hearing process is available in Department Program Policy DMN-1 .
Department contact: Thomas Noll
The benefits, costs and obligations of participating in an oil or gas well may affect you and your property for many years. Oil and gas exploration is risky business. This notice and the enclosed or referenced documents are not a substitute for legal or financial advice by knowledgeable professionals. Department staff cannot advise you on which election to choose. If you are an uncontrolled owner, you must judge for yourself how much risk you are willing to take and make an informed decision.