Lease production

We just heard from the landsman representing a company that wanted to lease our land. Come to find out that there is a company already drilling and producing there. Apparently others on the same lease have been receiving royalties, but we have heard nothing from them since they have been there in 2009,

On Thursday, June 5, 2014, Steve Anthis wrote: RE: The East Half of the Northwest Quarter (E/2 NW/4) Section 27-Township 17 North-Range 4 East Lincoln County, OK

Mrs. Dollar, Thank you for the email, I did find out that we will be unable to offer a lease on the above tract after all. We determined that the “Porter 1-A”, located in the Northeast Quarter of the Northwest Quarter (NE/4 NW/4) is in fact producing very small amounts. Some other owners in the tract are receiving payments once a year or once every two years. Because of this we turned back a lease sent in on this property. The well is being operated by Blackcat Oil Company out of Yale, OK, contact is John A. Mueggenborg (# I found for him is: 918-387-2557). Address is 15211 E. 6th St.; Yale, OK 74085. I would not know exactly why you have not been receiving payments, but he should be able to get things corrected. Our records show you own 3 net acres of minerals under the E/2 NW/4, Helen Carol Ward shows with 4 nma, and David Paul Ward owns 3 nma. I regret not being able to offer a lease here, but I do wish you and yours well. Best regards,

Sincerely, Steve Anthis Petroleum Landman Universal Land Services, LLC 7335 S. Lewis Ave., Ste. #204 Tulsa, OK 74136 918-869-6935 c 918-496-2680 o

From: Jo Lynn Dollar To: Steve Anthis Sent: Wednesday, June 4, 2014 8:07 AM Subject: Question

Good morning Steve, have you found out anything yet?

Jo Lynn

That well is listed as inactive according to the OCC. I show no production since 2005.

Okay, so would that mean that the land company that was wanting to drill would be able to proceed? Wouldn’t the landman be able to find out the same information?

The answer to both of your questions is yes.