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Anderson Exploration Ltd.

Anderson Exploration Ltd. EUB COMPLIANCE PROJECT LEASE AND WELLHEAD INSPECTION. Lease Inspection Procedure . Anderson Exploration will identify the order of fields and locations to be tested. .Lease inspections will be conducted as follows:

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Anderson Exploration Ltd.

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  1. Anderson Exploration Ltd. EUB COMPLIANCE PROJECT LEASE AND WELLHEAD INSPECTION

  2. Lease Inspection Procedure • Anderson Exploration will identify the order of fields and locations to be tested. • .Lease inspections will be conducted as follows: • The tubing and casing pressures will be dead weighted and recorded. • The surface casing vent will be bubble tested. Any positive vent flow will be recorded and reported to Anderson so that appropriate action can be implemented. • The wellhead will be inspected with regard to leaks, capped openings, valve operation and chains etc. • In addition to the above steps there would be a digital picture taken of the wellhead and lease. This picture will be attached to the well file. This picture will be used to prove that the wellsite and wellhead are in compliance to the Anderson standard or to identify any problems that may be present. It could then be possible for repairs or reclamation projects to be scoped without a trip to location.

  3. Procedure Continued: • At the end of lease inspections in a single field, OTATCO will summarize all lease inspections, pictures, and bubble test results. These results would then be presented to Anderson outlining all deficiencies. • Any wells failing bubble tests will be identified and Surface Casing Vent Tests will then be performed on all failed wells and any other wells identified by the EUB or Anderson. • Gas Migration tests will be conducted at the same time for all areas identified by Anderson as having this test requirement. • All Gas Migration and Surface Casing Vent Tests will be prepared in both paper and electronic format. The reports will be submitted to Anderson and if desired submitted to the EUB.

  4. Digital Picture Sample

  5. EUB Lease and Wellhead Requirements Location: GENERAL LEASE CONDITION Pass Yes or No 1 Is lease inspection sign posted? 2 Is the lease road in good condition? 3 Is the lease properly leveled? 4 Is the vegetation under control? 5 Is there oil on the lease? 6 If tanks on the lease is the lease diked? 7 Has a rig has been on location recently? 8 Has the sump been reclaimed? 9 Is there oil in the cellar? 10 Is there saltwater on the lease?

  6. EUB Lease and Wellhead Requirements Location: GENERAL WELLHEAD CONDITION Pass Yes or No 1 Are all opening capped, bull plugged, or blind flanged? 2 Are there any wellhead leaks? 3 Are the any bubbles around the wellhead? 4 Is the surface casing properly installed and open? 5 Are there any leaks present during a bubble test on the surface casing vent? 6 Are the wellhead valves functional? 7 Are the wellhead valves chained and locked or handles removed? 8 Deadweight tubing head pressure? 9 Deadweight casing head pressure? 10 Build up surface casing vent pressure?

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