BEFORE THE CORPORATION COMMISSION OF THE STATE OF OKLAHOMA

APPLICANT: CONTINENTAL RESOURCES, INC.

RELIEF REQUESTED: HORIZONTAL WELLLOCATION EXCEPTION (PART OF A MULTIUNIT)AND EXCEPTION TO OAC 165:10-3-28(c)(2)(b)

LEGAL DESCRIPTION: SECTIONS 19, 30 AND 31,TOWNSHIP 7 NORTH, RANGE 6 WEST, GRADYCOUNTY, OKLAHOMA

CAUSE CD NO. 201810622

ORDER NO. 693153

INTERIM ORDER OF THE COMMISSION HORIZONTAL WELL LOCATION EXCEPTION

(PART OF A MULTIUNIT)

1. Hearing Date and Place: This Cause came on for hearing before Michael Porter,Administrative Law Judge, on 8th day of January, 2019, at 8:30 a.m., regarding theabove-styled Cause, at the Jim Thorpe Office Bldg., 2101 N. Lincoln Blvd., OklahomaCity, Oklahoma.

2. Appearances: Eric R. King, Attorney, appeared for the Applicant, ContinentalResources, Inc. There were no other appearances and no protests entered.

Findings

3. Companion Causes: Multiunit Horizontal Well application in Cause CD No.201810621.

4. Notice and Jurisdiction: Notice has been given by publication as required byCommission Rules and Affidavits of Publication have been filed. Those Respondentswhose names and addresses were attainable have been given actual notice by first-classmail pursuant to Commission rules. An adjudicative inquiry was conducted by theAdministrative Law Judge into the sufficiency of the search to ascertain the names andaddresses of all owners, and if a diligent effort had been made to locate all affectedinterest owners. The Commission finds that the Applicant has made a meaningful anddiligent search of all reasonably available sources at hand to ascertain those parties thatare entitled to notice and the whereabouts of those entitled to notice but who were servedonly by publication. The Applicant gave notice as required, the Commission approvesthe notice given by mail and publication, and the Commission has jurisdiction of thesubject matter and parties.

5. Amendments: None.

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Continental Resources, Inc.Interim OrderCause CD No. 201810622

6. Relief Requested:

(a) An order authorizing an exception to the permitted well location established byOrder No. 107496 for the 640-acre drilling and spacing unit formed for the Springercommon source of supply underlying Sections 19 and 30, Township 7 North, Range 6West, Grady County, Oklahoma, and by Order No. 123130 for the 640-acre drilling andspacing unit formed for the Springer common source of supply underlying Section 31,Township 7 North, Range 6 West, Grady County, Oklahoma, at the following location:

Surface Location: NW/4 SW/4 of Section 31-7N-6W, Grady CountyNorth/South East/WestLocation Location

UnitBounda

lst Perforation NCT 330' FSL NCT 660' FWL Section 31Last Perforation NCT 0' FNL NCT 660' FWL Section 311st Perforation NCT 0' FSL NCT 660' FWL Section 30Last Perforation NCT 0' FNL NCT 660' FWL Section 30lst Perforation NCT 0' FSL NCT 660' FWL Section 19Last Perforation NCT 150' FNL NCT 660' FWL Section 19

Applicant's intended target is the lower recognized shale member of the Springer inSections 19, 30 and 31. Insofar as this location exception covers the Springercommon source of supply, only the lower recognized shale member of the Springerin Sections 19, 30 and 31 is acceptable at the distances described above.

(b) An order allowing Applicant to situate its proposed Phelps 1-31-30-19XHShorizontal well closer than 600 feet from the proposed Kathryn 2-31-6XHS operated byContinental Resources, Inc.

7. Reason Relief Should Be Granted: Applicant proposes to drill a multiunit horizontalwell to test the lower recognized shale member of the Springer common source ofsupply. The Reservoir is tight with low permeability and will produce predominately gas.It is desirable to drill the lateral to the longest length possible to enhance the economicsof the well. The well will not drain significantly to the north and south of the wellbore,and drainage to the east and west is limited primarily to the area affected by the fracturestimulation. Drilling the multiunit horizontal well at the locations requested allows forproduction from a greater portion of reservoir and the drilling of a longer lateral withoutuncompensated drainage to the offset sections. The common source of supply is likely tobe encountered at the following depths:

Section 19 Springer 12,720'Section 30 Springer 12,800'Section 31 Springer 12,900'

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Continental Resources, Inc.Interim OrderCause CD No. 201810622

The drilling of the well as a multiunit horizontal well will prevent both economic wasteand waste of hydrocarbons. It is less expensive to drill a longer lateral in a singlehorizontal well then to drill two laterals in two separate horizontal wells. By completingand producing the lateral across the section line, the production of hydrocarbons from alarger portion of the reservoir occurs. If the completion interval stops as it approaches thesection line and then restart on the other side of the section line, the hydrocarbons locatedin the reservoir on either side of the section line may not be produced by the well. Thecommon source of supply is approximately the same thickness and quality across themultiunit area and the allocation of costs and production based upon a percentage ofcompletion interval within each unit is fair and reasonable.

The proposed Phelps 1-31-30-19XHS horizontal well location will maximize productionfrom the unit and it will likely take more wells to drain this 640-acre unit. To properlyposition each well it will require the applicant to stagger the wells which will reduce thelikelihood that one well will adversely affect another while, at the same time, ensuringmaximum recovery and thus preventing waste. To properly position the wells, it isnecessary that this proposed well will be closer than 600 feet from the proposed Kathryn2-31-6XHS well.

8. Allowable: The allowable shall be 100% of a normal allowable for the named commonsources of supply.

9. Previous Orders: None.

10. Special Finding: The entire length of the lateral will be cemented such that theperforations will be isolated from the beginning and end point of the lateral in order toprotect the correlative rights of the offset units, and at this time, the Operator plans onusing the plug and perf completion technique.

11. Interim Order Reopening: This cause shall be continued to the 8th day of July, 2019,for the submission of the directional survey of the horizontal well.

12. Effective Date: This order shall be effective as of the date the application was filedherein.

Order

13. IT IS THE ORDER OF THE COMMISSION that the relief requested in the Application,as modified above, is necessary to ensure the greatest ultimate recovery of hydrocarbonsfrom the above-mentioned common sources of supply, prevent or assist in preventingwaste, and protect correlative rights of interested parties.

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Continental Resources, Inc.Interim OrderCause CD No. 201810622

14. The relief set forth in the Application, as modified above, is granted, and Applicant isauthorized to drill the well as set out herein, provided that such well is commenced withinone year from the date of hearing or this order shall be of no force and effect.

CORPOBATION COM S I0 OF O. AHOMA

BOB ANTHONY, Commissioner

DONE AND PERFORMED by the Comshown by their signatures above, this

Seal

i the making of this order, as

JOYCE CONNER, Assistant Secretarv

REPORT OF THE ADMINISTRATIVE LAW JUDGE

The foregoing findings and order are the report and recommendations of theAdministrative Law Judgvl

/1/6e2.0-4. Michael PorterAdministrative Law Judge

Reviewerifrv.(1icar4( 3n20

Date

This order follows the format and contains all elements set forth in the Judicial & LegislativeServices Form Order for this type of Cause. The undersigned attorney affirms (1) said attorneyhas read this order, a0 (2) this order is true, correct, and approved as to form and content.

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