Aera San Ardo Three (3) Wells Administrative Grouping

The primary work objective is to sidetrack three (3) existing well(s). This work is designed to support continuation of oil and gas resource development in the area. The wells are not being sidetracked (i) for abandonment purposes only or (ii) in connection with an enforcement order to mitigate or prevent environmental damage or surface expression. The primary work objective is to sidetrack three (3) existing well(s). This work is designed to support continuation of oil and gas resource development in the area. The wells are not being sidetracked (i) for abandonment purposes only or (ii) in connection with an enforcement order to mitigate or prevent environmental damage or surface expression. Sidetracking is the process of drilling a new wellbore from an existing wellbore. This is typically done when the original wellbore encounters a problem, when accessing remaining hydrocarbons within portions of the same reservoir, or when obstructions in the wellbore need to be bypassed. This process allows drilling a new section in an existing wellbore in the same rock formation restoring the well’s original functionality. The potential disturbance footprint would encompass an existing 20,000 square foot (100 ft x 200 ft) well pad per well. The entirety of this work would be located in an area of existing disturbance and no change in the surface topography (such as drainage patterns) would result. There will be no expansion of the existing well pads, roads, staging areas, or pipelines. No new grading would occur in any undisturbed areas. No new road construction or expansions would be required for the proposed project. Routine maintenance activities at the site would include removal of weeds and other ruderal vegetation for fire control and road maintenance. The work will commence after CalGEM permit approval. The time of year the work would occur is dependent on the date of final CalGEM permit approval. For a single well, it is expected to take approximately 17 operational days to complete all construction phases. Construction activities would generally include the following phases with estimated duration: 1. Plugging a portion of existing wellbore – 2 days • Zonal plugging of wellbore to be sidetracked from in accordance with CalGEM plugging requirements. 2. Site preparation – 7 days • Site location work on existing well pads to create safe work site for personnel and environment 3. Sidetrack drilling (construction) of the well – 3 days • Sidetracking operations in accordance with CalGEM regulations 4. Well completion – 2 days • Subsurface completion of well in accordance with CalGEM regulations 5. Final site surface construction – 3 days • Re-installation of various aboveground piping and equipment to connect well sites to the existing infrastructure Each phase requires different combinations of temporary equipment. At the end of each construction phase, the temporary equipment would be removed from the well site. All work during the project phases, except for the drilling phase, will occur during the days Monday through Friday, and approximate hours from 6 am to 5 pm. The drilling rig will operate 24 hours per day. The construction activity will not include installation of new pipelines or infrastructure. No new ground disturbance would occur. The proposed construction activities would use existing electrical lines. The proposed construction activities would involve a combination of re-use, repair, or reinstallation of various above-ground piping to connect subject well sites to the existing infrastructure. The proposed sidetracks are of existing cyclic steam wells which are completed in the Lombardi Sands (Pool: Lombardi, Pool Code: 10). The Lombardi Sands in the San Ardo Oil Field is a known hydrocarbon zone. The proposed sidetracks will remain in the same pool as the original wellbore. The pool designation will not change. The proposed sidetracks will NOT change the current designation of the existing wells. The proposed project consists of the California Department of Conservation, Geologic Energy Management Division (CalGEM) approving three (3) permit(s) for Aera Energy LLC to perform sidetrack work on the wells listed below, in the San Ardo Oil Field. API # Well Name 0405322020 Orradre 1428-12 0405322421 Orradre 1263-12 0405322525 Orradre 1594-12