Richard J. Chivaro, SBN 124391 Justin W.

Dersch, SBN 258603

OFFICE OF'THE STATE CONTROLLER 300 Caoitol Mall. Suite 1850

Sacram'ento,

.,|t ltll Iq t+{ o. qil al| -' lil .' | \, r,il , Jv

CA 95814

Telephone: (916) 445-2636 Facsimile: o16) 322-1220

.;ili.i]]; -'i COUIi U.S. lli . \: i il-r 'r rr)a

],

Attomeys for Califomia State Conholler's Office

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IN THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

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In re:

Chapter
Case

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PACIFIC ENERGY RESOURCES LTD., et al.'

No. 09-10785 KJC) (Jointly Administered)

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qujjT+ry!ry_E)To c_EBT4tN (A) DUpLrcArE CLATMS; (B) cLArMs

RESPONSE TO NOTICE OF'DEBTORS'SECOND OMNIBUS OBJECTION (NON-

BEEN AMENDED AND SUPERSEDED; (C) CLAIMS THATWERE FILED AGAINST THE WRONG DEBTOR; AND (D) CLAIMS FOR WHICH THERE IS INSUFFiCIENT DOCUMENTATION

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CLAIMANT AND BASIS FOR CLAIM AMOUNT

The Califomia State Controller's Office provides certain collection activities for thc

Califomia Department of Conservation (claimant, claim number 361). One of these activities is
the collection ofassessments on

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oil and

gas produced

in Califomia provided for in Division 3 of

the Public Resources Code. The Department of Conservation's claim amount is the assessment

owed by Pacific Energy Resources Ltd., based on its 2008 gas and oil production in the State
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of

Califomia.

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LLc (tax I.D. # not available); carneros Acquisition corp. (5g66); pacific Energy Alaska operating LLc (7021); Cameros Energy, Inc. (9487); and Gotland oil, Inc. (5463). The mailing addresa for all the beutoriis t t t w. Ocean Boulevard, Suite 1240, Long Beach, CA 90802. -tRESPONSE TO NOTICE OF DEBTORS' SECOND OMNIBUS OBJECTION

' The Debtors in these cases, along with the last four digits ofeach ofthe Debtor's federal tax identification numbers are: Pacific Energy Resources Ltd. (3442); petrocal Acquisition corp. (6249); pacific Energy Alaska Holdings,

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II.

STATEMENTOFREASONSFORCLAIM

Califomia Public Resources Code sections 3400-3433 allow the Califomia Department conservation to charge assessments on gas and oil producers based on their amount

of

of

production in the State of califomia. For the 2008 calendar year, pacific Energy Resources Ltd.,
operator code P0250, produced a total equivalent of 108,867 banels for which it owed a total
assessment

of $9,583.69, which was to be paid in installments of $4,791.g5 and $4,791.g4 by

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8

August 17,2009, and February 1,2010, respectively. (See Exhibir,,A..) In addition, in Exhibit D of the Notice of Debtors' Second omnibus objection, it states
under the Reason for Disallowance that there is

"[n]o record ofany payments historically to this

a copy

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agency." However, this is inconect as shown by

of the 2007 petroleum and Gas

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Assessment that was sent to Pacific Energy Resources on March 4, 200g, by the

california state

controller's office on behalf of the califomia Department of conservation. (See Exhibit..B.,,)

Dated,:Mtch

/Z

,2010

OFFICE OF THE STATE CONTROLLER

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By, mey for Califomia State Controller's Office

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-2RESPONSE TO NOTICE OF DEI]TORS' SECOND OMNIBUS OBJEC.TION

lrfzul#; - of'{za'loo?
Page 133
Statc of

Califomia
June 08,2009

The Resources Agency

DeParment of Consewation

NOTICE OFASSESSMENT
OIL AND GAS PRODUCED, CALENDAR YEAR *rPacilic Energt Resource Ltd.**
Operator
Code

l0trctrr\7trlit Itrl ""; :'i ""1 JU,

2OO8

Number of bbls

Number

of

ofpetrdleum
108,772

l0 Mcf of Gas
95

Total bbls Equivalent

108,867

P0250

First halfdue on or
before 08/17f2009

second half due on or before 02/01f2010

Tbree copies ofthis notice aft provided. Include one copy with each of your payments; and keep one for your records. Make remittance payable to Stat Treasurer and mail lo:

- t i; C', n-o b _
.i,--u,

STATf, TREAST'RER ATTN: CASH MANACEMENT DTVISIoN

P. O. BOX 942t09

sACRAMENTo, cA 94209-{tool

Ab. -= *(9B
)oa

**cENERALINFoRMATIoN**

rltr^t4(, *p'1-{l< \t/ ' -l-l

Tfi-F*"rtrm"nt on oil and gas produccd in Califomia is pmvided for in Division 3 of the Public Resowces Code. k,o. Tl@ssessed anount shown must be paid on or before August 17, 2009. A psnalty of l0% will b applied to late 4 '^vrrPaFnts, plus interest at 1.57o per month. Y

-o rn.lit

una C^ Assessment Roll will be delivered to the Stat Cotrtroller on July l, 2009- lfany producer s dissatisfied with the assessment made or the charges fixed by the department, he may apply to the State Conaoller prior to that date to have a correction madc.

The funds raised from this assessment ar deposited in the Oil, Gas, and Geolhermal Adminislmtive Fund, and ar used to support the Oil and Gas Regulatory Program in the Departrnent of Conservation. Thc assessment is made per banel of oil, or per ten thousand cubic feet of gas lroduced during the previous calendar year. Listed below arc the estimates ofprogram costs and statewide production upon which tho assessment rate is based:

DIVISION PROGRAM COSTS. NSCAL YEAR 20 I O-20 I I STATEWIDE TOTAL ASSESSABLE OIL, 2008 (bbls) STATEWIDE TOTAL ASSESSABLE cAS, 200E (l0Mcf) STATEWIDE TOTAL ASSESSABLE EQUIVALENT, 2OO8 RATE PER EQUIVALENT BBL OR l0Mcf OF GAS

s20,412,981 212,095,950

t9,787,526
231,883,476
$0.08E03120

Ifyou hav questions or

need additional information, please call Division of Oil, Gas, rnd Geothermsl Resources,

/a/ 9So
Psy Dde

&7 lanu y'aci ztl<P{ri6cnergffusdreghd:I 11 W Ocean Blvd. Suite 1240 Long Beach CA 908024645

801 K Strect, 20u Ftoor, MS 2G20, Sscramento, CA 9581+3530.

parrsF{l
JUN

OlC.rm

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pozs6G

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AUG

4 200s

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lrrylts

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O- o - //ztr- //C0

joHN CHIANG
6.aI7tm nid Btate 6.crctt sIIBt
March 4, 2008

PaciflcEnergyResources
111WoceanBlvd.Suite1240
Long Beach CA 908024445

F:!i F
E

iaL.E

f:f,l FV
L:L,

Re:

Petroleum and Gas Assessment / Account No. P0250

First Notice

PAST DUE TAX BILL

The State Controller's Office provides certain collection activities for the Depaltrnent of Conservation. Our records indicate that there is a balance due for the 2007 Assessment, based uoon 2006 oroduction.

2'd Half

Assessm ent (delinquent on 02/01/2008)...-........

$
$

6,928.01

10% Penalty

Interest accrued through (03/31/2008) Balance Due.......

692.80 207.84 7,828.65

Additional interest accrues in the amount of $ 103.92 each month or fraction thereof after 03131108. These charges are a lien upon all property ofevery kind and nature belonging to the person assessed. Please make your remittance payable to the State Controller's OfFrce and mail il along with a copy of this notice to the address shown below.

Ifyou have any questions regarding this notice, please contact Peggy Lin (916) 445-1479'

c,z*
Sincerely,

CINTHIA ENGLISH Accounting Supervisor

Division of Accounting and Rporting

Bureau of Tax Administration P.O. Box 942850. Sacramento, CA 94250-5880 (916) 445-6321

In

Re: PaciJic Energ) Resources Lld., et aL

U.S.B.C.. District of Delaware. Case No. 09-10785 (KJC)

PROOF OF SERVICE I am employed in the County of Sacramento, State of Califomia. At the time ofservice, I was at least 18 years of age, a United Stats citizen employed in the county where the mailing occurred, and not a part5r to the within action. My business address is 300 Capitol Mall, Suite 1850, Sacramento, CA 95814.
On March 12, 2010, I served the foregoing document entitled:

RESPONSE TO NOTICE OF DEBTORS' SECOND OMNIBUS OBJECTION (NON-SUBSTANTIVE)

TO CERTAIN (A) DUPLICATE CLAIMS; (B) CLAIMS THAT HAVE BEEN AMENDED AND SUPERSEDED; (C) CLAIMS THAT WERE FILED AGAINST THE WRONG DEBTOR; AND (D) CLAIMS FOR WHICH THERE IS INSUFFICIENT DOCUMENTATION
on all interested parties in this aclion by placing a true and correct copy thereof enclosed in a sealed envelope,
addressed as follows:

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Scona E. McFarland
James E.

O'Neill

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1) 13

Pachulski Stang Ziehl & Jones LLP. 10100 Santa Monica Boulevard, I l'" Floor Los Angeles, CA 90067-4100

Pachulski Stang Ziehl & Jones LLP 919 N. Market Street, l7'Floor

Wilmington, DE 19801
Jennifer Kuritz Pacific Energy Resources, Ltd. I I I W. Ocean Boulevard, Suite 1240 Long Beach, CA 90802

Fil Agusti

Official Comminee of Unsecured Creditors

Steptoe

I4

& Johnson

1330 Connecticut Avenue N.W.

Washington, DC 20036

[X] BY MAIL
I placed the envelope for collection and processing for mailing following this business's ordinary practice with which I am readily familiar. On the same day correspondence is placed for collection and mailing, it is deposited
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in the ordinary course ofbusiness with the United States Postal Service.

[] []

BY PERSONAL SERVICE

I caused to be delivered by hand to the above-listed addressees.

BY OVERNTGHT MAI./COURIER

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To expedite the delivery ofthe above-named document, said document was sent via ovemight courier for next day delivery to the above-listed party.
the service was made. I declare under penalty of perjury under the laws of California that the foregoing is true and correct. Executed on March 12, 2010, at Sacramento, Califomia.

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I declare that I am employed in the office of a member of the bar of this court at whose direction

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Amber A. Camarena

Proof of Service - I