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RESOURCES AGENCY OF CALIFORNIA DEPARTMENT OF CONSERVATION DIVISION OF OIL, GAS, AND GEOTHERMAL RESOURCES No. P 696-354 PERMIT TO CONDUCT WELL OPERATIONS 351 (field code) 00 (area code) 10 (new pool code) Robert D. Eberts, Agent 10 SIERRA RESOURCES, INC. (old pool Code) 5601 Truxtun Ave . , Suite 250 Bakersfield, CA 93309 Sacramento , California November 20 , 1996 Your .. proposal to rework well "Piacentine" 1-27 , A.P.I. No. 077-20484 ,Section 27 T. 3N R. 5E M.D.B.& M. , King Island Gas field, Any area, Mokelum-e pool, San Joactuin County, dated 11/12/96 ., received 11/18/96 has examined in conjunction with records filed in this office. THE PROPOSAL IS APPROVED PROVIDED THAT: 1. Blowout prevention equipment conforming to Class "II" B 2M requirements is installed on the 5-1/211 casing and maintained in operating condition at all times. See Manual M07. 2. Wire line operations are conducted through at least a 2 M lubricator. 3. The Division is furnished copies of any draw down or back pressure tests performed. In addition, the Division will monitor the production for a period of six months and if anomalous water production is indicated, remedial action will be ordered. 4 . THIS DIVISION IS NOTIFIED: a. Before deviating from the proposed casing programs and/or placing any plugs in the hole. Additional requirements shall be outlined at that time. Blanket Bond RSH: sr Engineer Robert S. Habel WILLIAM FUERARD,,JpR., State QiI and Gas Supervisor Phone (916) 322-1110 By Robert A. Reid, Deputy Supervisor A copy of this permit and the proposal must be posted at the well site prior to commencing operations. Records for work done under this permit are due within 60 days after the work has been completed or the operations have been suspended. OG111 (2/96/GSR1/6M)