Project Information

Project Title:

Cobra Master Development Plan

Sector: Conventional Energy Production and Pipelines

Project Location Address:

• County: Shelby
  State: Texas
  Zip: 75973
  Country: United States

Coordinates:

• Latitude: 31.642731 N
  Longitude: -93.898937 W

Project Sponsor Contact Information:

• Company Name/Agency: Silver Hill Energy
  Project Sponsor: Reagan Smith
  Street Address: 3909 N. Classen Blvd., Suite 100
  City: Oklahoma City
  State: Oklahoma
  Zip: 73118
  POC Name: Scott St. John
  POC Title: VP Environmental Compliance & Engineering
  POC Work Phone: 405-286-9326
  POC Email Address: sstjohn@reagansmith.com

Alternative Point of Contact (Optional):

• Company Name/Agency: Silver Hill Energy
  Project Sponsor: Silver Hill Energy
  Street Address: 2850 N. Harwood Street, #1600
  City: Dallas
  State: Texas
  Zip: 75201
  POC Name: Jason Gordeuk
  POC Title: SVP Operations
  POC Work Phone: 214-865-6555
  POC Email Address: jgordeuk@silverhillenergy.com

Project Purpose:

The purpose of this project is to permit and build a natural gas pipeline through the Sabine National Forest along with multiple drilling well pads (both on forest and private lands) in order to drill approximately 15 wells to develop the BLM minerals that Silver Hill Energy has leased in the area.

Project Description:

The project area is located in Shelby County, TX, directly east of the town of Goober Hill, TX. The project area is located within the Sabine National Forest. The overall project includes the proposal of approximately 15 oil and gas well pads, access roads to the well pads, a main trunk pipeline for the transportation of natural gas and gathering pipelines connecting the well pads. Four to six wells will be horizontally drilled into Bureau of Land Management (BLM)-managed minerals with the intent of producing primarily natural gas. Eight well pads are proposed to be located on land managed by the USDA Forest Service, while the remaining 7 well pads are proposed to be located on private land. However, all wells drilled from these well pads will drill and produce federal minerals.

The proposed well pads are approximately 800’ x 500’ (9 acres). The proposed access roads would be 20’ wide for the surface of the road with an overall right-of-way width of 30’. The total length of the proposed trunk pipeline is 11.65 miles which will be located on both forest service-managed lands as well as private lands. Approximately 5 miles of this pipeline will be located on forest service-managed lands. The diameter of the trunk pipeline is 20” with a required working right-of-way width of 50’, reverting to a semi-permanent right-of-way of 30’. The gathering lines have a diameter of 6” with a required working right-of-way of 30’, reverting to a semi-permanent right-of-way of 15’.

Technical and Financial Ability:

Funding Capability for Midstream Infrastructure and Well Development

Silver Hill Energy has the capacity to deploy in excess of $200 million toward the development of the Cobra area midstream infrastructure and associated well development projects. This funding is backed by institutional-grade capital commitments secured through direct investment energy funds. Silver Hill Energy has the technical ability on staff to plan, engineer, and execute pipeline projects as evidenced by the completion of pipeline projects and expansions in other operating areas.

Summary of Financing, Reviews, and Authorizations:

There will be no federal financing requested or provided for this proposed project. The proposed project is entirely self-financed by the project proponent.

The environmental review would include an assessment of effects to resources including but not limited to noise; air quality; geology and soils; water resources; cultural resources; and biological resources including threatened and endangered species and special status species. Extensive biological surveys have been completed in the project area. A cultural resources survey will be conducted for all potential areas of impact within the project scope.

Federal Authorizations to be obtained include, but are not limited to:

• Minerals Operating Plan approval from the USDA Forest Service
• Permit to Drill from the Bureau of Land Management
• Compliance with the National Environmental Policy Act
• Consultation with the U.S. Fish and Wildlife Service as required by the Endangered Species Act (ESA)
• Consultation with the State Historic Preservation Officer and appropriate Tribal Historic Preservation Officer(s) under the National Historic Preservation Act (NHPA)
• Securing a Section 404 permit under the Clean Water Act from the U.S. Army Corps of Engineers, if jurisdictional wetlands are present

Project Assessment:

This project is considered a "covered project" as it is a construction/infrastructure project for conventional energy production in the United States, requires environmental review by a Federal Agency, is subject to NEPA, will require $200,000,000+ of investment, and is of a size and complexity that makes the project likely to benefit from enhanced oversight and coordination. This project also will require authorization/environmental review from more than two Federal agencies and will require environmental analysis under NEPA.

Form Submitter Contact Information:

Name: Jason A. Gordeuk
Title: SVP Operations
Work Phone: 214-865-6555
Email: jgordeuk@silverhillenergy.com