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Wildcat Supplementary Permit Conditions

1. The operator must provide the drilling company with a well prognosis indicating anticipated formation top depths with appropriate warning comments prior to spud. The prognosis must be reviewed by all crew members and posted in a prominent location in the doghouse. The operator must revise the prognosis and inform the drilling company in a timely manner if drilling reveals significant variation between the anticipated and actual geology and/or formation pressures.

2. The county emergency management office must be notified of the well's location and the potential hazards involved as follows: a) prior to spudding the well, b) prior to penetrating a target formation, c) during any flaring while drilling and d) prior to flaring for well clean-up, treatment or testing.

3. A representative of this office must be notified six (6) hours prior to penetrating the target formation. The operator or operator's designated representative, must be on site when drilling operations place the drill bit 100' (True Vertical Depth) from the target formation and throughout the drilling of the target formation.

4. Blowout prevention equipment, either pipe and blind rams or a spherical annular type with a pressure rating of (to be determined by DEC based on site-specific conditions) psig must be installed on the wellhead. All control lines must be high pressure steel with flanged connections. The BOP must be actuated by a source other than rig hydraulics.

5. The BOP, choke manifold and surface casing must be tested to a minimum of 1000 psi prior to drilling out the surface casing shoe, unless the Department grants a waiver in response to a written request from the operator which demonstrates to the Department's satisfaction that: a) the well is proposed as a deep wildcat that will be drilled through an established, shallow, low pressure pool and b) the well will have an intermediate casing string that is the first string intended for well control purposes. When intermediate casing is used, the BOP, choke manifold and intermediate casing must be tested to at least the maximum anticipated shut-in surface pressure plus a 5% safety factor prior to drilling out the intermediate casing shoe. A representative of this office must be notified six (6) hours prior to each test and a department representative may be present during the test. If the Department representative is not on location at the agreed time, the test may proceed with the results of the test and the name of the witness being noted in the driller's log.

6. A flanged choke manifold must be installed no closer than 25 feet from the wellhead. No elbows or T's, either at the wellhead or before the choke are allowed. The connecting line must be rigid steel and be welded from the flange spool to the choke line and must have the same, or higher, pressure rating as the BOP.

7. When drilling on air or drilling intentionally underbalanced on fluid, the flow line must be constructed of T & C or flanged connection tubular materials. The flow line must have a working pressure of at least 1500 psi and be connected to the spool with a flanged connection. The use of dresser sleeves is prohibited. The flow line cannot contain any elbows.

8. All pipes and lines which are associated with well control and which are downstream of the casing head spool must be securely chained to anchors.

9. Appropriate amounts of water and drilling mud additives to make up, weight and condition drilling fluid, and to combat loss of circulation must be on site to aid in well control.

10. There must be at least two working mud pumps (primary & backup) on site while drilling below surface casing.

11. Penetration of the target formation must occur during daylight hours when drilling on air or drilling intentionally underbalanced on fluid.

12. Individual crew member's responsibilities for blowout control must be posted in the doghouse and each crew member must be made aware of such responsibilities prior to spud.

13. Appropriate pressure control procedures and equipment must be employed while tripping, logging and running casing into the well.

14. In the event H2S is encountered, all regulated activities must be conducted by the operator in conformance with American Petroleum Institute Publication API RP49, "Recommended Practices For Safe Drilling of Wells Containing Hydrogen Sulfide."

15. Any deviation from the above conditions must be approved by the Department prior to spud.

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