June 9, 2020

Statement from Chairman Everett Waller, Second Chair Yates and Councilmembers Gray and Harlan concerning a lease held by Gopher Oil.

“We have recently received numerous emails from Shareholders regarding an action taken by the OMC on May 20, 2020 concerning the termination of a lease from Gopher Oil from Mr. Michael Wachtman. The issue was on the regularly posted agenda under New Business. After discussion with Superintendent Phillips, the matter was tab led to the next meeting in an effort to obtain additional information. The motion was made by Councilwoman Gray and seconded by Councilman Revard. The vote was unanimous to table the matter pending additional information.

According to information provided by Superintendent Phillips, the leases in question were terminated on April 15, 2020 for non production since the previous inspection which was made on July 8, 2019. The Minerals Council has requested several documents, including the history of productio n and whether any royalty has been paid during the previous nine months. The motion made by Councilwoman Forman was to request the Superintendent rescind her letter of termination. The votes opposing the motion were consistent with the need to obtain addit ional information before making a decision.

It is unfortunate that anyone would choose to mischaracterize the events in such a manner as cause chaos and disruption during these difficult times.

We assure all Shareholders the entire Minerals Council is working diligently to find solutions to the current oil crisis, and it is never our intent to plug producing wells. It is, however, our duty to ascertain all information relevant to an issue prior to casting a vote which may or may not be appropriate.

Lastly, the correspondence from the producer failed to provide an offer for a new lease with bonus and terms. In the spirit of cooperation, we would welcome a new lease which includes terms that are in accordance with our regular lease contracts.”