IN THE STATE OIL AND GAS BOARD OF MISSISSIPPI. RE: PETITION OF COMSTOCK OIL & GAS, a po 7 g?nnq LP TO AMEND THE SPECIAL FIELD ' * cw* ORDER

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1 IN THE STATE OIL AND GAS BOARD OF MISSISSIPPI FILED FOR RECORD RE: PETITION OF COMSTOCK OIL & GAS, a po 7 g?nnq LP TO AMEND THE SPECIAL FIELD ' * cw* RULES FOR THE LAUREL FIELD, SI E,!?iAND GAS B0ARD JONES COUNTY, MISSISSIPPI USAIVSHIN. SUPERVISOR DOCKET NO ORDER NO. ORDER This matter came on for hearing before the State Oil and Gas Board of Mississippi (hereinafter the "Board") on the 18th day of March, 2009, on the Petition of Comstock Oil & Gas, LP (hereinafter the "Petitioner") to amend the Special Field Rules for the Laurel Field, Jones County, Mississippi, to define the Laurel Consolidated Field Unit. Laurel Consolidated Sand Oil Pool. Laurel Field. Jones County. Mississippi; to establish spacing and production allocation requirements applicable to said fieldwide unit; to prescribe rules governing the operation of said compulsory fieldwide unit for secondary recovery, pressure maintenance, repressuring operations, cycling operations, water flooding operations, the injection of extraneous substances, and any combination thereof, or any other form of joint effort calculated to substantially increase the ultimate recovery of oil or gas, or both, from said compulsory fieldwide unit; and for related relief, said hearing being called for such purpose; and WHEREAS, the Board finds that due, proper and legal notice of the meeting of the Mississippi State Oil and Gas Board for the purpose of considering and taking action with respect to such matter was given in the manner and way provided by law and the Rules and Regulations of this Board; that due, legal and sufficient Proofs of Publication are on file with the Board in said matter; and that the Board has full jurisdiction of the subjectmatter to hear and determine same; and WHEREAS, pursuant to said notice a public hearing was held by the said Board in the Hearing Room of the Mississippi State Oil and Gas Board located at 500 Greymont Avenue, Suite E, Jackson, Mississippi, commencing at 10:00 o'clock, A. M. on March 18,

2 2009, at which hearing all persons present who desired to be heard in said matter were heard and all testimony and documentary evidence duly considered by those present at said meeting; and WHEREAS, the Mississippi State Oil and Gas Board having duly considered the Petition and the evidence, and being fully advised in the premises, is of the opinion and finds that the relief requested by the Petitioner should be and the same is hereby granted. The Board further finds and determines as follows: 1. The Board finds that the Mississippi State Oil and Gas Board established Special Field Rules for the Laurel Field, Jones County, Mississippi, on April 17, 1985 (Order No , Docket No ). The Board finds that these Special Field Rules establish the geographic limits of the Laurel Field and define various oil and gas pools within the field and prescribe spacing requirements applicable to wells drilled and completed in said pools. These Special Field Rules have been amended by the Mississippi State Oil and Gas Board at various times through the years. 2. The Board finds that these Special Field Rules were last amended by the Mississippi State Oil and Gas Board on November 19, 2008 (Order No , Docket No ). The Board finds that these latest amended Special Field Rules, among otherthinas. consolidated and combined twentv-two (22) separately-defined and non-unitized oil pools within the Laurel Field into a single oil pool designated as the Laurel Consolidated Sand Oil Pool. 3. The Board finds that the existing Special Field Rules for the Laurel Field define the Laurel Consolidated Sand Oil Pool as a separate and distinct underground reservoir or pool or accumulation of hydrocarbons within the field. -2-

3 4. The Board finds that the Mississippi State Oil and Gas Board on March 18, 2009, in related and companion Docket No (Order No ). approved the establishment and formation of a compulsory fieldwide unit within the Laurel Consolidated Sand Oil Pool underlying forty (40) separate drilling and production units and/or tracts of land comprising acres, more or less, all within the existing geographic limits of the Laurel Field. The Board finds that this compulsory fieldwide unit was established and approved pursuant to the provisions of the Conservation Laws of the State of Mississippi, specifically, Miss. Code Anno. Sections through (1972) (as amended). The Board further finds that this compulsory fieldwide unit is designated as the Laurel Consolidated Field Unit. Laurel Consolidated Sand Oil Pool. Laurel Field. Jones County. Mississippi, and consists of the following described lands: Township 8 North. Range 12 West Section 1: NE 1/4 of NE 1/4 (down to 12,282 feet); NW 1/4 of NE 1/4 (down to 12,282 feet); NE 1/4 of NW 1/4 (down to 12,282 feet); SE 1/4 of NW 1/4 (down to 12,282 feet); SW 1/4 of NE 1/4 (down to 12,282 feet); SE 1/4 of NE 1/4 (down to 12,282 feet); NE 1/4 of SE 1/4 (down to 12,282 feet); NW 1/4 of SE 1/4 (down to 12,282 feet); NE 1/4 of SW 1/4 (down to 12,282 feet); SW 1/4 of SE 1/4 (down to 12,282 feet); SE 1/4 of SE 1/4 (down to 12,282 feet); NE 1/4 of NE 1/4 (below 12,282 feet); NW 1/4 of NE 1/4 (below 12,282 feet); NE 1/4 of NW 1/4 (below 12,282 feet); SE 1/4 of NW 1/4 (below 12,282 feet); SW 1/4 of NE 1/4 (below 12,282 feet); SE 1/4 of NE 1/4 (below 12,282 feet); NE 1/4 of SE 1/4 (below 12,282 feet); NW 1/4 of SE 1/4 (below 12,282 feet); NE 1/4 of SW 1/4 (below 12,282 feet); SW 1/4 of SE 1/4 (below 12,282 feet); and SE 1/4 of SE 1/4 (below 12,282 feet). Township 8 North. Range 11 West Section 6: NW 1/4 of NE 1/4; NE1/4ofNW1/4; NW1/4ofNW1/4; SW1/4ofNW1/4; SE1/4ofNW1/4; SW1/4ofNE1/4; -3-

4 NE1/4ofSW1/4; NW 1/4 of SW 1/4; and NW1/4ofSW1/4ofSW1/4. Township 9 North. Range 11 West Section 31: S 1/2 of S 1/2 of SE 1/4 of NW 1/4 and S 1/2 of N 1/2 of SW 1/4 of SE 1/4 of NW 1/4; NW 1/4 of SE 1/4; NE1/4ofSW1/4; NW1/4ofSW1/4; SW1/4ofSW1/4; SE1/4ofSW1/4;and SW1/4ofSE1/4. Township 9 North. Range 12 West Section 36: S 1/2 of SW 1/4 of SE 1/4; and SE1/4ofSE1/4. All of the hereinabove described lands are situated in Jones County, Mississippi, Second Judicial District, and contain acres, more or less. 5. The Board finds that the establishment and approval of the hereinabove described compulsory fieldwide unit, and the placing into effect of said compulsory fieldwide unit by the Mississippi State Oil and Gas Board, makes it necessary that the existing Special Field Rules for the Laurel Field be further amended and revised to define the Laurel Consolidated Field Unit. Laurel Consolidated Sand Oil Pool. Laurel Field. Jones County. Mississippi, and to establish spacing and production allocation requirements applicable to said fieldwide unit. In addition, the Board finds that it is necessary that the said Special Field Rules be further amended and revised to provide rules governing the operation of the said compulsory fieldwide unit for the purpose of conducting secondary recovery, pressure maintenance, repressuring operations, cycling operations, water flooding operations, the injection of extraneous substances, and any combination thereof, or any otherform of joint effort calculated to substantially increase the ultimate recovery of oil or gas, or both, from the said compulsory fieldwide unit. 6. The Board finds that it is, therefore, necessary and proper that the Special Field Rules for the Laurel Field, Jones County, Mississippi, be further amended and revised for -4-

5 the hereinabove specified purposes by adding thereto a new RULE 8 ("LAUREL CONSOLIDATED FIELD UNIT"), all as more fully set forth on the attached Exhibit "A" which is incorporated herein and made a part hereof by reference for all purposes. 7. The Board finds that the Special Field Rules for the Laurel Field should be further amended and revised by redesianatina the existing RULE 8 ("PRESSURE MAINTENANCE AND SECONDARY RECOVERY OPERATIONS/MULTIPLE UNITIZED POOLS") and the existing RULE 9 ("APPLICABILITY OF STATEWIDE RULES") as a new RULE 9 and a new RULE 10, respectively, of the said Special Field Rules. 8. The Board finds that a copy of the Special Field Rules for the Laurel Field, Jones County, Mississippi, as amended and revised for the hereinabove described purposes, is attached hereto and made a part hereof by reference for all purposes as Exhibit "A." 9. The Board finds that the amendment and revision of the Special Field Rules for the Laurel Field, Jones County, Mississippi, all as hereinafter more fully set forth on the attached Exhibit "A," will promote conservation, will prevent waste, will avoid the drilling of unnecessary wells, and will fully protect the co-equal and correlative rights of all parties in interest. In addition, the Board finds that the adoption and approval of the proposed amendments and revisions to the Special Field Rules will facilitate the more efficient and economical operation of the Laurel Consolidated Field Unit, Laurel Consolidated Sand Oil Pool, Laurel Field, Jones County, Mississippi, and will ultimately result in the recovery of more oil and/or other hydrocarbons from the Laurel Field than would otherwise be recovered. IT IS, THEREFORE, ORDERED AND ADJUDGED by the State Oil and Gas Board of Mississippi that the existing Special Field Rules for the Laurel Field, Jones County, Mississippi, should be and the same are hereby amended and revised to define the Laurel Consolidated Field Unit. Laurel Consolidated Sand Oil Pool. Laurel Field. Jones County. Mississippi; to establish spacing and production allocation requirements -5-

6 applicable to said compulsory fieldwide unit: and to prescribe rules governing the operation of said compulsory fieldwide unit for the purpose of conducting secondary recovery, pressure maintenance, repressuring operations, cycling operations, water flooding operations, the injection of extraneous substances, and any combination thereof, or any other form of joint effort calculated to substantially increase the ultimate recovery of oil or gas, or both, from said compulsory fieldwide unit, all as more particularly set forth on the attached Exhibit "A." IT IS FURTHER ORDERED AND ADJUDGED that Comstock Oil & Gas, LP shall acquire all other permits, if any, required by any other permitting authority. IT IS FURTHER ORDERED AND ADJUDGED that this Order shall be in force and effect from and after March ORDERED AND ADJUDGED this the23rl day ofjfarctf, MISSISSIPP VICE CHAIR! ORDER PREPARED BY: Howard O. Leach MSB-No Armstrong, Thomas, Leach & Lampton, PLLC Attorneys-at-Law 246 West Gallatin Street Post Office Box 190 Hazlehurst, Mississippi Telephone: (601) Telecopier: {601)

7 EXHIBIT "A" SPECIAL FIELD RULES FOR THE LAUREL FIELD JONES COUNTY. MISSISSIPPI A. FIELD AREA: The Laurel Field, as used herein, is that geographical area consisting of the following described lands, to-wit: Township 8 North. Range 12 West Section 1: All Section 2: East Half (E 1/2) Section 12: North Half (N 1/2) Township 8 North. Range 11 West Section 6: All Section 7: Northwest Quarter (NW 1/4) Township 9 North. Range 11 West Section 31: All Township 9 North. Range 12 West Section 36: All and all lands covered by productive extensions of the hereinafter defined pools. B. POOL DEFINITIONS (NON-UNITIZED) 1.1 The Laurel Consolidated Sand Oil Pool in the Laurel Field shall be construed to mean all those strata productive of hydrocarbons occurring between the measured depth of 6668 feet below the surface (as shown on the Dual Induction Focus Log of the Mississippi Investments 1-11 No. 3 Well located in Section 1, Township 8 North, Range 12 West, Jones County, Mississippi) and the measured depth of feet (as shown on the Dual Induction Log of the Laurel Field Unit 1-1 No. 1 Well located in Section 1, Township 8 North, Range 12 West, Jones County, Mississippi), and all horizons correlative thereto, less and except, however, those currently unitized portions of the Moorinosport Sand Oil Pool (comprising the Laurel Mooringsport Field Unit), the Rodessa Sand Oil Pool

8 (comprising the Laurel Rodessa Field Unit), the Sliao Sand Oil Pool (comprising the Laurel Sliao Field Unit), the Lower Tuscaloosa Stringer Sand Oil Pool (comprising the Laurel Lower Tuscaloosa Stringer Field Unit) and the Upper Paluxv Sand Oil Pool (comprising the Laurel Upper Paluxv Field Unit) and productive extensions of said unitized pools. C. POOL DEFINITIONS (UNITIZED) 1.1 The Moorinosport Sand Oil Pool in the Laurel Field shall be construed to mean those strata of the Mooringsport Formation productive of hydrocarbons occurring between the measured depths of 11,182 feet to 11,276 feet as indicated on the Dual Induction Log of the Coho Resources, Inc. - Laurel Field 1-7 Well No. 4 located in Section 1, Township 8 North, Range 12 West, Jones County, Mississippi, underlying the Laurel Mooringsport Field Unit and including those strata productive of hydrocarbons which can be correlated therewith and are in communication therewith. 1.2 The Rodessa Sand Oil Pool in the Laurel Field shall be construed to mean those strata of the Rodessa Formation productive of hydrocarbons occurring between the measured depths of 11,947 feet to 12,450 feet (11,877 feet to 12,347 feet true vertical depth) as indicated on the Dual Induction Focus Log of the Mosbacher Energy Company City of Laurel 6-13 Well located in Section 6, Township 8 North, Range 11 West, Jones County, Mississippi, underlying the Laurel Rodessa Field Unit and including those strata productive of hydrocarbons which can be correlated therewith. 1.3 The Sliao Sand Oil Pool in the Laurel Field shall be construed to mean those strata of the Sligo Formation productive of hydrocarbons occurring between the measured depths of 12,370 feet and 12,770 feet (12,220 feet and 12,620 feet true vertical depth) as indicated on the Dual Induction Focus Log of the Pan Canadian Petroleum Company - City of Laurel 6-4 No. 1 Well located in Section 6, Township 8 North, Range 11 West, Jones County, Mississippi, underlying the Laurel Sligo Field Unit and including those strata productive of hydrocarbons which can be correlated therewith. 1.4 The Lower Tuscaloosa Stringer Sand Oil Pool in the Laurel Field shall be construed to mean those strata of the Lower Tuscaloosa Formation productive of -2-

9 hydrocarbons occurring between the measured depths of 7725 feet to 7932 feet as indicated on the Dual Induction - SFL Log of the Pan Canadian Petroleum Company- City of Laurel 6-6 No. 1 Well located in Section 6, Township 8 North, Range 11 West, Jones County, Mississippi, underlying the Laurel Lower Tuscaloosa Stringer Field Unit and including those strata productive of hydrocarbons which can be correlated therewith and are in communication therewith. 1-5 The Upper Paluxv Sand Oil Pool in the Laurel Field shall be construed to mean those strata of the Paluxy Formation productive of hydrocarbons occurring between the measured depths of 9820 feet to 10,030 feet as indicated on the Dual Induction Log of the Coho Resources, Inc. - Laurel Field Unit 1-1 Well No. 2 located in Section 1, Township 8 North, Range 12 West, Jones County, Mississippi, underlying the Laurel Upper Paluxy Field Unit and including those strata productive of hydrocarbons which can be correlated therewith and are in communication therewith. 1.6 The Laurel Consolidated Sand Oil Pool in the Laurel Field shall be construed to mean those strata productive of hydrocarbons occurring between the measured depth of 6668 feet below the surface (as shown on the Dual Induction Focus Log of the Mississippi Investments 1-11 No. 3 Well located in Section 1, Township 8 North, Range 12 West, Jones County, Mississippi) and the measured depth of 13,508 feet (as shown on the Dual Induction Log of the Laurel Field Unit 1-1 No. 1 Well located in Section 1, Township 8 North, Range 12 West, Jones County, Mississippi), and all horizons correlative thereto, less and except, however, those currently unitized portions of the Moorinqsport Sand Oil Pool (comprising the Laurel Moorinqsport Field Unit), the Rodessa Sand Oil Pool (comprising the Laurel Rodessa Field Unit), the Sliqo Sand Oil Pool (comprising the Laurel Sligo Field Unit), the Lower Tuscaloosa Stringer Sand Oil Pool (comprising the Laurel Lower Tuscaloosa Stringer Field Unit) and the Upper Paluxv Sand Oil Pool (comprising the Laurel Upper Paluxv Field Unit) and including those strata productive of hydrocarbons which can be correlated therewith and are in communication therewith. -3-

10 1.7 The Productive Sands in the Laurel Field are located within the City of Laurel, Mississippi, in a developed area where residential houses, streets, highways, businesses, and commercial structures are located. Most of the wells to be drilled hereafter in the Laurel Field must be drilled as intentionally deviated wells from a surface location where sites are available to the desired bottomhole location in order to encounter the productive formations under the field. In the interest of conservation and for the protection of the coequal and correlative rights of all parties in interest, these Special Field Rules provide for the spacing of oil wells and authorize the directional drilling of wells to the formations defined above. D. RULES: RULE 1 - SPACING OF OIL WELLS: 1.1 As to each well drilled to and productive from the non-unitized Laurel Consolidated Sand Oil Pool: (a) The well shall be located on a drilling unit consisting of 40 contiguous surface acres, or a governmental quarter-quarter section containing not less than 36 acres or more than 44 acres, upon which no other drilling or producible well is located. (b) Any drilling unit not composed of a governmental quarter-quarter section must be completely encompassed by the perimeter of a rectangle 1,810 feet by 1,445 feet. Provided, however, no unit shall be permitted which will create island acreage. (c) The well shall be located at least feet from every other drilling well or well completed in or producing from the same pool located in conformity with this Rule. (d) The well shall be located not less than feet from every exterior boundary of the unit. (e) On all wells drilled closer than feet to an exterior boundary of the unit, a directional survey shall be made prior to the setting of production casing and a certified copy thereof filed with the Mississippi State Oil and Gas Board no later than thirty (30) days thereafter. 1.2 As to each well drilled to and productive from the unitized MoorinasportSand Oil Pool, the unitized Rodessa Sand Oil Pool, the unitized Sliao Sand Oil Pool, the unitized Lower Tuscaloosa Stringer Sand Oil Pool, the unitized Upper Paluxv Sand Oil Pool and the -4-

11 unitized Laurel Consolidated Sand Oil Pool, the spacing requirements applicable to said unitized pools shall be governed by the provisions of RULE 3.3, RULE 4.3, RULE 5.3, RULE 6.3, RULE 7.3 and RULE 8.3, respectively, of these Special Field Rules. RULE 2 - DIRECTIONAL DRILLING WELLS: 2.1 Wells may be permitted by the supervisor of the State Oil and Gas Board within the Laurel Field Area. 2.2 The Supervisor is authorized to issue permits approving the directional drilling of wells from available sites within the City of Laurel or from developed areas within the Laurel Field outside the City of Laurel to a bottomhole location to penetrate any of the productive formations in the Laurel Field, including approval of the crossing of unit lines, if the location of the well bore at the producing horizons of those pools is at least feet from any exterior unit boundary. 2.3 The application for permit for directionally drilling well shall be accompanied by a survey plat showing the surface location, the bottomhole location, and the drilling unit assigned to the well. 2.4 A directional survey shall be conducted on each deviated hole prior to the setting of production casing and a duly certified copy thereof shall be furnished to the Mississippi State Oil and Gas Board within thirty (30) days thereof. RULE 3 - LAUREL MOORINGSPORT FIELD UNIT 3.1 The Laurel Mooringsport Field Unit is that portion of the following described lands lying within the Laurel Field underlain by the unitized portion of the Mooringsport Sand Oil Pool (Unitized Formation") and described as follows: Township 9 North. Range 12 West Section 36: All that part of the SE 1/4 of SE 1/4 lying South of the Railroad Right-of-Way. Township 8 North. Range 12 West Section 1: W 3/4 of NE 1/4 of NE 1/4; E1/2ofNW1/4ofNE1/4; SE1/4ofSE1/4ofNW1/4; SW1/4ofNE1/4; W3/4ofSE1/4ofNE1/4; NW1/4ofNE1/4ofSE1/4; NW1/4ofSE1/4; -5-

12 E1/2ofNE1/4ofSW1/4; NE 1/4 of SE 1/4 of SW 1/4; and NW1/4ofSW1/4ofSE1/4. All the above described lands situated in District, Jones County, Mississippi. the Second Judicial 3.2 Unitized Formation is the subsurface portion of the Unit Area described as those strata of the Mooringsport Sand Oil Pool productive of Unitized Substances in the interval between the measured depths of 11,182 feet to 11,276 feet as indicated on the Dual Induction Log of the Coho Resources, Inc. - Laurel Field 1-7 Well No. 4 located in Section 1, Township 8 North, Range 12 West, Second Judicial District, Jones County, Mississippi, and including those strata productive of Unitized Substances which can be correlated with and/or In communication therewith. The Unitized Formation for the Laurel Mooringsport Field Unit is within the defined interval for the Mooringsport Sand Oil Pool in the Laurel Field as stated in the Special Field Rules for the Laurel Field. 3.3 SPACING OF WELLS IN LAUREL MOORINGSPORT FIELD UNIT (A) Notwithstanding any other provisions contained in these Special Field Rules, the location of injection and production wells in the Laurel Mooringsport Field Unit shall be selected by the operator and shall be governed by the standards of geology and petroleum engineering designed to promote the greatest ultimate recovery of hydrocarbons contained in the pool. However, no well may be drilled, injected into or produced from said pool nearer than feet from any exterior boundary of the fieldwide unit, except upon permit issued by the Mississippi State Oil and Gas Board, after notice and hearing. (B) The operator may drill either injection or producing wells utilizing directional or horizontal drilling techniques designed to increase the ultimate recovery of hydrocarbons contained in the pool without notice and hearing; provided, however, that (1) no portion of the wellbore located within the unitized interval or horizon of any such well so drilled shall be nearer than feet from any exterior boundary of the Laurel Mooringsport Field Unit, except upon permit issued by the Mississippi State Oil and Gas Board, after notice and hearing, and (2) the operator shall file a directional survey and other information required by rule or written policy of the Board after completion. -6-

13 (C) Furthermore, the operator may drill either injection or producing wells on the Laurel Mooringsport Field Unit utilizing directional or horizontal drilling techniques as hereinabove described regardless of whether the surface location of such wells is within or outside the unit boundaries of the fieldwide unit. 3.4 PRESSURE MAINTENANCE AND SECONDARY RECOVERY PROGRAM AUTHORIZED Comstock Oil & Gas, LP, as operator of the Laurel Mooringsport Field Unit, is hereby authorized to conduct and carry out secondary recovery, pressure maintenance, repressuring operations, cycling operations, water flooding operations, and the injection of extraneous substances in the Laurel Mooringsport Field Unit, and any combination thereof, or any other form of joint effort calculated to substantially increase the ultimate recovery of oil or gas, or both, from the fieldwide unit as is authorized by the Plan of Unitization placed into effect by the Mississippi State Oil and Gas Board. The operator may use for injection purposes existing wells located in said Laurel Mooringsport Field Unit which may be converted to injection wells or wells may be drilled on said fieldwide unit for such purposes. Any such wells drilled as injection wells or converted to injection wells by operator on the fieldwide unit as a part of pressure maintenance and/or secondary recovery operations may be approved by the Mississippi State Oil and Gas Board on administrative permit, upon twenty (20) days publication notice in the appropriate newspapers (but without the necessity of a public hearing), upon the operator filing with the Board a duly executed FORM 2, the required permit fee for each such well, and all evidence and information required under Statewide Rule 63. In addition, existing fieldwide unit injection wells may be converted to fieldwide unit producing wells on administrative permit, without notice and hearing, upon the operator filing with the Board a duly executed FORM 2, the required permit fee for each such well, and all other evidence and information the Board may require. 3.5 ALLOCATION OF PRODUCTION The allowable for the Laurel Mooringsport Field Unit shall be established by the Mississippi State Oil and Gas Board. The allowable production of the said fieldwide unit may be produced from any well orwells on said fieldwide units provided, however, that no -7-

14 well shall be operated in such a manner as to cause waste as defined by the Laws of the State of Mississippi. 3.6 SURFACE STORAGE. MEASUREMENT AND TRANSFER SYSTEMS (A) The Operator of the Laurel Mooringsport Field Unit may maintain such separators, stock tanks, metering devices, connections and storage facilities as it deems necessary to accurately measure the total production from the fieldwide unit. Separate measurement or storage for the wells and leases within the fieldwide unit shall not be required. (B) Automatic custody transfer systems which automatically test, sample, measure and transfer the production from the Operator to the purchaser are hereby authorized in said fieldwide unit. Such systems will be equipped with a sampling device which will take a representative sample of the total production passing through the system in order that the specific gravity and basic sediment and water content can be determined. Each custody transfer system will be equipped with a volume displacement type metering device which registers the volume of oil passed through it in barrels or multiples thereof. RULE 4 - LAUREL RODESSA FIELD UNIT 4.1 The Laurel Rodessa Field Unit is that portion of the following described lands lying within the Laurel Field underlain by the unitized Rodessa Sand Oil Pool ("Unitized Formation") and described as follows: Township 9 North. Range 11 West Section 31: SW 1/4 of NE 1/4 of SW 1/4 and S 1/2 of SE 1/4 of NE 1/4 of SW 1/4; E 1/2 of SE 1/4 of NW 1/4 of SW 1/4 and SW 1/4 of SE 1/4 of NW 1/4 of SW 1/4; SW1/4ofSW1/4; SE1/4ofSW1/4; W 1/2 of SW 1/4 of SW 1/4 of SE 1/4. Township 8 North. Range 11 West Section 6: W 1/2 of W 1/2 of NW 1/4 of NE 1/4; NE1/4ofNW 1/4; -8-

15 NW 1/4 of NW 1/4; SW1/4ofNW1/4; SE1/4of NW1/4; W 1/2 of NW 1/4 of SW 1/4 of NE 1/4; NE1/4ofSW1/4; NW1/4ofSW1/4; N 1/2 of N 1/2 of SW 1/4 of SW 1/4 and S 1/2 of NW 1/4 of SW 1/4 of SW 1/4 and NW 1/4 of SW 1/4 of SW 1/4 of SW 1/4 and W 1/2 of SW 1/4 of SW 1/4 of SW 1/4 of SW 1/4 Township 8 North. Range 12 West Section 1: SE 1/4 of SE 1/4; N 1/2 of SW 1/4 of SE 1/4 and SE1/4ofSW1/4ofSE1/4; NE 1/4 of NE 1/4 of SE 1/4 of SW 1/4; NE 1/4 of SE 1/4; E 1/2 of NW 1/4 of SE 1/4 and SW 1/4 of NW 1/4 of SE 1/4 and E 1/2 of NW 1/4 of NW 1/4 of SE 1/4 and SW 1/4 of NW 1/4 of NW 1/4 of SE 1/4; E 1/2 of SE 1/4 of NE 1/4 of SW 1/4; SE1/4ofNE1/4; E 1/2 of SE 1/4 of SW 1/4 of NE 1/4 and SW 1/4 of SE 1/4 of SW 1/4 of NE 1/4; E 1/2 of NE 1/4 of NE 1/4 and SW 1/4 of NE 1/4 of NE 1/4 and E 1/2 of NW 1/4 of NE 1/4 of NE 1/4. Township 9 North. Range 12 West Section 36: All that part of the SE 1/4 of SE 1/4 of SE 1/4 lying South of the Railroad Right of Way. All the above described lands situated in the Second Judicial District, Jones County, Mississippi. 4.2 Unitized Formation is the subsurface portion of the Unitized Area described as those strata of the Rodessa Sand Oil Pool productive of Unitized Substances in the interval between the measured depths of 11,947 feet to 12,450 feet as indicated on the -9-

16 Dual Induction Focus Log of the Coho Resources, Inc. (formerly Mosbacher Energy Company) - City of Laurel 6-13 Well located in Section 6, Township 8 North, Range 11 West, Second Judicial District, Jones County, Mississippi, and including those strata productive of Unitized Substances which can be correlated with and/or in communication therewith. The Unitized Formation for the Laurel Rodessa Field Unit is correlative to and within the defined interval for the Rodessa Sand Oil Pool in the Laurel Field as stated in the Special Field Rules for the Laurel Field. 4.3 SPACING OF WELLS IN LAUREL RODESSA FIELD UNIT (A) Notwithstanding any other provisions contained in these Special Field Rules, the location of injection and production wells in the Laurel Rodessa Field Unit shall be selected by the operator and shall be governed by the standards of geology and petroleum engineering designed to promote the greatest ultimate recovery of hydrocarbons contained in the pool. However, no well may be drilled, injected into or produced from said pool nearer than feet from any exterior boundary of the fieldwide unit, except upon permit issued by the Mississippi State Oil and Gas Board, after notice and hearing. (B) The operator may drill either injection or producing wells utilizing directional or horizontal drilling techniques designed to increase the ultimate recovery of hydrocarbons contained in the pool without notice and hearing; provided, however, that (1) no portion of the wellbore located within the unitized interval or horizon of any such well so drilled shall be nearer than feet from any exterior boundary of the Laurel Rodessa Field Unit, except upon permit issued by the Mississippi State Oil and Gas Board, after notice and hearing, and (2) the operator shall file a directional survey and other information required by rule or written policy of the Board after completion. (C) Furthermore, the operator may drill either injection or producing wells on the Laurel Rodessa Field Unit utilizing directional or horizontal drilling techniques as hereinabove described regardless of whether the surface location of such wells is within or outside the unit boundaries of the fieldwide unit. -10-

17 4.4 PRESSURE MAINTENANCE AND SECONDARY RECOVERY PROGRAM AUTHORIZED Comstock Oil & Gas, LP, as operator of the Laurel Rodessa Field Unit, is hereby authorized to conduct and carry out secondary recovery, pressure maintenance, repressuring operations, cycling operations, water flooding operations, and the injection of extraneous substances in the Laurel Rodessa Field Unit, and any combination thereof, or any other form of joint effort calculated to substantially increase the ultimate recovery of oil or gas, or both, from the fieldwide unit as is authorized by the Plan of Unitization placed into effect by the Mississippi State Oil and Gas Board. The operator may use for injection purposes existing wells located in said Laurel Rodessa Field Unit which may be converted to injection wells or wells may be drilled on said fieldwide unit for such purposes. Any such wells drilled as injection wells or converted to injection wells by the operator on the fieldwide unit as a part of pressure maintenance and/or secondary recovery operations may be approved by the Mississippi State Oil and Gas Board on administrative permit, upon twenty (20) days publication notice in the appropriate newspapers (but without the necessity of a public hearing), upon the operator filing with the Board a duly executed FORM 2, the required permit fee for each such well, and all evidence and information required under Statewide Rule 63. In addition, existing fieldwide unit injection wells may be converted to fieldwide unit producing wells on administrative permit, without notice and hearing, upon the operator filing with the Board a duly executed FORM 2, the required permit fee for each such well, and all other evidence and information the Board may require TERTIARY ENHANCED OIL RECOVERY METHODS The Operator of the Laurel Rodessa Field Unit is further authorized to implement tertiary enhanced oil recovery methods and/or pressure maintenance operations within the unitized intervals of the Laurel Rodessa Field Unit (the "Unitized Formation"), including microbial enhanced oil recovery methods and such other tertiary enhanced oil recovery methods as may be approved and permitted by the Mississippi State Oil and Gas Board. In conjunction with such tertiary enhanced oil recovery operations, the Operator may use for injection purposes existing wells located on the Laurel Rodessa Field Unit which may -11-

18 be converted to injection wells or wells may be drilled on said fieldwide unit for such purposes. Any such wells drilled as injection wells or converted to injection wells by the Operator on the fieldwide unit, as a part of tertiary enhanced oil recovery operations, may be approved by the Mississippi State Oil and Gas Board upon administrative permit, upon twenty (20) days publication notice in the appropriate newspapers (but without the necessity of a public hearing), upon the Operator filing with the Board a duly executed FORM 2, the required permit fee for each such well, and all evidence and information required by Statewide Rule 63 and upon not less than twenty (20) days publication notice. In addition, existing fieldwide unit injection wells may be converted to fieldwide unit producing wells on administrative permit, without notice and hearing, upon the Operator filing with the Board a duly executed FORM 2, the required permit fee for each such well, and all other evidence and information the Board may require. 4.6 ALLOCATION OF PRODUCTION The allowable for the Laurel Rodessa Field Unit shall be established by the Mississippi State Oil and Gas Board. The allowable production of the said fieldwide unit may be produced from any well or wells on said fieldwide unit; provided, however, that no well shall be operated in such a manner as to cause waste as defined by the Laws of the State of Mississippi. 4.7 SURFACE STORAGE. MEASUREMENT AND TRANSFER SYSTEMS (A) The operatorof the Laurel Rodessa Field Unit may maintain such separators, stock tanks, metering devices, connections and storage facilities as it deems necessary to accurately measure the total production from the fieldwide unit. or storage for the wells and leases within the fieldwide unit shall Separate measurement not be required. (B) Automatic custody transfer systems which automatically test, sample, measure and transfer the production from the operator to the purchaser are hereby authorized in said fieldwide unit. Such systems will be equipped with a sampling device which will take a representative sample of the total production passing through the system in order that the specific gravity and basic sediment and water content can be determined. -12-

19 Each custody transfer system will be equipped with a volume displacement type metering device which registers the volume of oil passed through it in barrels or multiples thereof. RULE 5 - LAUREL SLIGO FIELD UNIT 5.1 The Laurel Sligo Field Unit is that portion of the following described lands lying within the Laurel Field underlain by the unitized Sligo Sand Oil Pool ("Unitized Formation") and described as follows: Township 9 North. Range 11 West Section 31: SW 1/4 of NE 1/4 of SW 1/4 and S 1/2 of SE 1/4 of NE 1/4 of SW 1/4; E 1/2 of SE 1/4 of NW 1/4 of SW 1/4 and SW 1/4 of SE 1/4 of NW 1/4 of SW 1/4; SW 1/4ofSW 1/4; SE1/4ofSW1/4; W 1/2 of SW 1/4 of SW 1/4 of SE 1/4. Township 8 North. Range 11 West Section 6: W 112 of W 112 of NW 1 /4 of NE 1 /4; NE1/4ofNW 1/4; NW1/4ofNW 1/4; SW 1/4 of NW 1/4; SE 1/4ofNW 1/4; W 1/2 of NW 1/4 of SW 1/4 of NE 1/4; NE1/4ofSW 1/4; NW 1/4 of SW 1/4; N 1/2 of N 1/2 of SW 1/4 of SW 1/4 and S 1/2 of NW 1/4 of SW 1/4 of SW 1/4 and NW 1/4 of SW 1/4 of SW 1/4 of SW 1/4 and W 1/2 of SW 1/4 of SW 1/4 of SW 1/4 of SW 1/4 Township 8 North. Range 12 West Section 1: SE 1/4 of SE 1/4; N 1/2 of SW 1/4 of SE 1/4 and SE1/4ofSW1/4ofSE1/4; NE 1/4 of NE 1/4 of SE 1/4 of SW 1/4; -13-

20 NE 1/4 of SE 1/4; E 1/2 of NW 1/4 of SE 1/4 and SW 1/4 of NW 1/4 of SE 1/4 and E 1/2 of NW 1/4 of NW 1/4 of SE 1/4 and SW 1/4 of NW 1/4 of NW 1/4 of SE 1/4; E 1/2 of SE 1/4 of NE 1/4 of SW 1/4; SE 1/4 of NE 1/4; E 1/2 of SE 1/4 of SW 1/4 of NE 1/4 and SW 1/4 of SE 1/4 of SW 1/4 of NE 1/4; E 1/2 of NE 1/4 of NE 1/4 and SW 1/4 of NE 1/4 of NE 1/4 and E 1/2 of NW 1/4 of NE 1/4 of NE 1/4. Township 9 North. Range 12 West Section 36: All that part of the SE 1/4 of SE 1/4 of SE 1/4 lying South of the Railroad Right of Way. All the above described lands situated in the Second Judicial District, Jones County, Mississippi. 5.2 Unitized Formation is the subsurface portion of the Unit Area described as those strata of the Sligo Sand Oil Pool productive of Unitized Substances in the interval between the measured depths of 12,370 feet to 12,770 feet as indicated on the Dual Induction Focus Log of the Coho Resources, Inc. (formerly Pan Canadian Petroleum Company) - City of Laurel 6-4 No. 1 Well located in Section 6, Township 8 North, Range 11 West, Second Judicial District, Jones County, Mississippi, and including those strata productive of Unitized Substances which can be correlated with and/or in communication therewith. The Unitized Formation forthe Laurel Sligo Field Unit is correlative to and within the defined interval of the Sligo Sand Oil Pool in the Laurel Field as stated in the Special Field Rules forthe Laurel Field. 5.3 SPACING OF WELLS IN LAUREL SLIGO FIELD UNIT (A) Notwithstanding any other provisions contained in these Special Field Rules, the location of injection and production wells in the Laurel Sligo Field Unit shall be selected by the operator and shall be governed by the standards of geology and petroleum engineering designed to promote the greatest ultimate recovery of hydrocarbons contained in the pool. However, no well may be drilled, injected into or produced from said pool -14-

21 nearer than feet from any exterior boundary of the fieldwide unit, except upon permit issued by the Mississippi State Oil and Gas Board, after notice and hearing. (B) The operator may drill either injection or producing wells utilizing directional or horizontal drilling techniques designed to increase the ultimate recovery of hydrocarbons contained in the pool without notice and hearing; provided, however, that (1) no portion of the wellbore located within the unitized interval or horizon of any such well so drilled shall be nearer than feet from any exterior boundary of the Laurel Sligo Field Unit, except upon permit issued by the Mississippi State Oil and Gas Board, after notice and hearing, and (2) the operator shall file a directional survey and other information required by rule or written policy of the Board after completion. (C) Furthermore, the operator may drill either injection or producing wells on the Laurel Sligo Field Unit utilizing directional or horizontal drilling techniques as hereinabove described regardless of whether the surface location of such wells is within or outside the unit boundaries of the fieldwide unit. 5.4 PRESSURE MAINTENANCE AND SECONDARY RECOVERY PROGRAM AUTHORIZED Comstock Oil & Gas, LP, as operator of the Laurel Sligo Field Unit, is hereby authorized to conduct and carry out secondary recovery, pressure maintenance, repressuring operations, cycling operations, water flooding operations, and the injection of extraneous substances in the Laurel Sligo Field Unit, and any combination thereof, or any other form of joint effort calculated to substantially increase the ultimate recovery of oil or gas, or both, from the fieldwide unit as is authorized by the Plan of Unitization placed into effect by the Mississippi State Oil and Gas Board. The operator may use for injection purposes existing wells located in said Laurel Sligo Field Unit which may be converted to injection wells or wells may be drilled on said fieldwide unit for such purposes. Any such wells drilled as injection wells or converted to injection wells by the operator on the fieldwide unit as a part of pressure maintenance and/or secondary recovery operations may be approved by the Mississippi State Oil and Gas Board on administrative permit, upon twenty (20) days publication notice in the appropriate newspapers (but without the necessity of a public hearing), upon the operator filing with the Board a duly executed -15-

22 FORM 2, the required permit fee for each such well, and all evidence and information required under Statewide Rule 63. In addition, existing fieldwide unit injection wells may be converted to fieldwide unit producing wells on administrative permit, without notice and hearing, upon the operator filing with the Board a duly executed FORM 2, the required permit fee for each such well, and all other evidence and information the Board may require. 5.5 ALLOCATION OF PRODUCTION The allowable for the Laurel Sligo Field Unit shall be established by the Mississippi State Oil and Gas Board. The allowable production of the said fieldwide unit may be produced from any well or wells on said fieldwide unit; provided, however, that no well shall be operated in such a manner as to cause waste as defined by the Laws of the State of Mississippi. 5.6 SURFACE STORAGE. MEASUREMENT AND TRANSFER SYSTEMS (A) The operator of the Laurel Sligo Field Unit may maintain such separators, stock tanks, metering devices, connections and storage facilities as it deems necessary to accurately measure the total production from the fieldwide unit. Separate measurement or storage for the wells and leases within the fieldwide unit shall not be required. (B) Automatic custody transfer systems which automatically test, sample, measure and transfer the production from the operator to the purchaser are hereby authorized in said fieldwide unit. Such systems will be equipped with a sampling device which will take a representative sample of the total production passing through the system in order that the specific gravity and basic sediment and water content can be determined. Each custody transfer system will be equipped with a volume displacement type metering device which registers the volume of oil passed through it in barrels or multiples thereof. RULE 6 - LAUREL LOWER TUSCALOOSA STRINGER FIELD UNIT 6.1 The Laurel Lower Tuscaloosa Stringer Field Unit is that portion of the following described lands lying within the Laurel Field underlain by the unitized Lower Tuscaloosa Stringer Sand Oil Pool ("Unitized Formation") and described as follows: -16-

23 Township 8 North. Range 11 West Section 6: NW 1/4 of SW 1/4; SW 1/4ofNW 1/4; SE 1/4 of SE 1/4 of NW 1/4 of NW 1/4; NE1/4ofNW1/4; W1/2ofNW1/4ofNE1/4; SE1/4of NW 1/4; SW 1/4 of NE 1/4; and NE 1/4 of SWIM. All the above described lands are situated in the Second Judicial District, Jones County, Mississippi. 6.2 Unitized Formation is the subsurface portion of the Unitized Area described as those strata of the Lower Tuscaloosa Stringer Sand Oil Pool productive of Unitized Substances in the interval between the measured depths of 7725 feet to 7932 feet as indicated on the Dual Induction SFL Log of the Pan Canadian Petroleum Company- City of Laurel 6-6 No. 1 Well located in Section 6, Township 8 North, Range 11 West, Second Judicial District, Jones County, Mississippi, and including those strata productive of Unitized Substances which can be correlated with and/or in communication therewith. The Unitized Formation forthe Laurel Lower Tuscaloosa Stringer Field Unit is correlative to and within the defined interval for the Lower Tuscaloosa Stringer Sand Oil Pool in the Laurel Field as stated in the Special Field Rules for the Laurel Field. UNIT 6.3 SPACING OF WELLS IN LAUREL LOWER TUSCALOOSA STRINGER FIELD (A) Notwithstanding any other provisions contained in these Special Field Rules, the location of injection and production wells in the Laurel Lower Tuscaloosa Stringer Field Unit shall be selected by the operator and shall be governed by the standards of geology and petroleum engineering designed to promote the greatest ultimate recovery of hydrocarbons contained in the pool. However, no well may be drilled, injected into or produced from said pool nearer than feet from any exterior boundary of the fieldwide -17-

24 unit, except upon permit issued by the Mississippi State Oil and Gas Board, after notice and hearing. (B) The operator may drill either injection or producing wells utilizing directional or horizontal drilling techniques designed to increase the ultimate recovery of hydrocarbons contained in the pool without notice and hearing; provided, however, that (1) no portion of the wellbore located within the unitized interval or horizon of any such well so drilled shall be nearer than feet from any exterior boundary of the Laurel Lower Tuscaloosa Stringer Field Unit, except upon permit issued by the Mississippi State Oil and Gas Board, after notice and hearing, and (2) the operator shall file a directional survey and other information required by rule or written policy of the Board after completion. (C) Furthermore, the operator may drill either injection or producing wells on the Laurel Lower Tuscaloosa Stringer Field Unit utilizing directional or horizontal drilling techniques as hereinabove described regardless of whether the surface location of such wells is within or outside the unit boundaries of the fieldwide unit. 6.4 PRESSURE MAINTENANCE AND SECONDARY RECOVERY PROGRAM AUTHORIZED Comstock Oil & Gas, LP, as operator of the Laurel Lower Tuscaloosa Stringer Field Unit, is hereby authorized to conduct and carry out secondary recovery, pressure maintenance, repressuring operations, cycling operations, water flooding operations, and the injection of extraneous substances in the Laurel Lower Tuscatoosa Stringer Field Unit, and any combination thereof, or any other form of joint effort calculated to substantially increase the ultimate recovery of oil or gas, or both, from the fieldwide unit as is authorized by the Plan of Unitization placed into effect by the Mississippi State Oil and Gas Board. The operator may use for injection purposes existing wells located in said Laurel Lower Tuscaloosa Stringer Field Unit which may be converted to injection wells or wells may be drilled on said fieldwide unit for such purposes. Any such wells drilled as injection wells or converted to injection wells by the operator on the fieldwide unit as a part of pressure maintenance and/or secondary recovery operations may be approved by the Mississippi State Oil and Gas Board on administrative permit, upon twenty (20) days publication notice in the appropriate newspapers (but without the necessity of a public hearing), upon the -18-

25 operator filing with the Board a duly executed FORM 2, the required permit fee for each such well, and all evidence and information required under Statewide Rule 63. In addition, existing fieldwide unit injection wells may be converted to fieldwide unit producing wells on administrative permit, without notice and hearing, upon the operator filing with the Board a duly executed FORM 2, the required permit fee for each such well, and all other evidence and information the Board may require. 6.5 ALLOCATION OF PRODUCTION The allowable for the Laurel Lower Tuscaloosa Stringer Field Unit shall be established by the Mississippi State Oil and Gas Board. The allowable production of the said fieldwide unit may be produced from any well or wells on said fieldwide unit; provided, however, that no well shall be operated in such a manner as to cause waste as defined by the Laws of the State of Mississippi. 6.6 SURFACE STORAGE. MEASUREMENT AND TRANSFER SYSTEMS (A) The operator of the Laurel Lower Tuscaloosa Stringer Field Unit may maintain such separators, stock tanks, metering devices, connections and storage facilities as it deems necessary to accurately measure the total production from the fieldwide unit. Separate measurement or storage for the wells and leases within the fieldwide unit shall not be required. (B) Automatic custody transfer systems which automatically test, sample, measure and transfer the production from the operator to the purchaser are hereby authorized in said fieldwide unit. Such systems will be equipped with a sampling device which will take a representative sample of the total production passing through the system in order that the specific gravity and basic sediment and water content can be determined. Each custody transfer system will be equipped with a volume displacement type metering device which registers the volume of oil passed through it in barrels or multiples thereof. RULE 7 - LAUREL UPPER PALUXY FIELD UNIT 7.1 The Laurel Upper Paluxy Field Unit is that portion of the following described lands lying within the Laurel Field underlain by the unitized Upper Paluxy Sand Oil Pool ("Unitized Formation") and described as follows: -19-

26 Township 8 North. Range 11 West: Section 6: NE 1/4 of NW 1/4; NW 1/4 of NW 1/4; SW 1/4ofNW 1/4; SE1/4ofNW 1/4; NW 1/4 of SW 1/4; Township 8 North. Range 12 West: Section 1: NE 1/4 of NE 1/4; E 1/2 of E 1/2 of SW 1/4 of NE 1/4; SE 1/4 of NE 1/4; NE1/4ofSE1/4; E 1/2 of NE 1/4 of NW 1/4 of SE 1/4; N 1/2 of N 1/2 of SE 1/4 of SE 1/4; Township 9 North. Range 11 West: Section 31: SE 1/4 of SW 1/4; and SW1/4ofSW1/4. The above described lands are situated in the Second Judicial District, Jones County, Mississippi. 7.2 Unitized Formation is the subsurface portion of the Unit Area described as those strata of the Upper Paluxy Sand Oil Pool productive of Unitized Substances in the interval between the measured depths of 9820 feet to 10,030 feet as indicated on the Dual Induction Focus Log of the Coho Resources, Inc. - Laurel Field Unit 1-1 No. 2 Well located in Section 1, Township 8 North, Range 12 West, Second Judicial District, Jones County, Mississippi, and including those strata productive of Unitized Substances which can be correlated with and/or in communication therewith. The Unitized Formation for the Laurel Upper Paluxy Field Unit is correlative to and within the defined interval for the Upper Paluxy Sand Oil Pool in the Laurel Field as stated in the Special Field Rules for the Laurel Field. 7.3 SPACING OF WELLS IN LAUREL UPPER PALUXY FIELD UNIT (A) Notwithstanding any other provisions contained in these Special Field Rules, the location of injection and production wells in the Laurel Upper Paluxy Field Unit shall be selected by the operator and shall be governed by the standards of geology and petroleum engineering designed to promote the greatest ultimate recovery of hydrocarbons contained in the pool. However, no well may be drilled, injected into or produced from said pool nearer than feet from any exterior boundary of the fieldwide unit, except upon permit issued by the Mississippi State Oil and Gas Board, after notice and hearing. -20-