Jeremy Shephard and Emily Shephard and Michael Jackson and Tamisia Jackson v. AIX Energy, Inc., AIX Operating Company, Bear Creek Services, LLC, National Union Fire Insurance Company, Avery Graves IV, Republic Well Testing (Motions for Limited Rehearing Affirmed as Rendered)

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Judgment rendered June 27, 2018. No. 51,965-CA ON REHEARING COURT OF APPEAL SECOND CIRCUIT STATE OF LOUISIANA ***** JEREMY SHEPHARD AND EMILY SHEPHARD AND MICHAEL JACKSON AND TAMISIA JACKSON Plaintiffs-Appellees versus AIX ENERGY, INC., AIX OPERATING COMPANY, BEAR CREEK SERVICES, LLC, NATIONAL UNION FIRE INSURANCE COMPANY, AVERY GRAVES IV, REPUBLIC WELL TESTING Defendants-Appellants ***** On Motions for Limited Rehearing Originally Appealed from the First Judicial District Court for the Parish of Caddo, Louisiana Trial Court No. 577,546 Honorable Craig Marcotte, Judge ***** COOK, YANCEY, KING & GALLOWAY By: Sidney E. Cook, Jr. Lisa C. Cronin John T. Kalmbach David J. Hemken Counsel for DefendantsAppellants AIX Energy, Inc. and St. Paul Fire & Marine Ins. MAHTOOK & LAFLEUR By: Ward F. LaFleur Richard J. Hymel GREGORIO, CHAFIN, JOHNSON, POOLSON & TABOR, LLC By: Scott Chafin, Jr. Julie Payne Johnson Counsel for PlaintiffsAppellees Jeremy Shephard and Emily Shephard, and Michael Jackson & Tamisia Jackson ROBERT L. SIEGEL RACHEL G. WEBRE JAMESON MICHAEL TAYLOR Counsel for DefendantsAppellees National Union Fire Ins. Co., AIG Specialty Ins. Co. a/k/a Chartis Ins. Co. LUNN, IRION, SALLEY, ET AL. By: Gerald M. Johnson, Jr. Counsel for DefendantsAppellees Bear Creek Services, LLC and Avery Graves, IV JOHNSON, RAHMAN & THOMAS By: Patricia Jackson Delpit Counsel for LWCC Intervener-Appellee ***** Before WILLIAMS, MOORE, PITMAN, COX and McCALLUM, JJ. MOORE, J. ON MOTIONS FOR LIMITED REHEARING The plaintiffs, Jeremy Shephard, Emily Shephard, Michael Jackson and Tamisia Jackson, have filed an application for limited rehearing to correct the amended awards to allocate them to the balance of the St. Paul policy. The defendants, AIX Energy Inc. and St. Paul Fire & Marine Insurance Company, have filed a request for limited rehearing to correct the amended awards to reflect the 97.5% allocation of fault to AIX Energy. Both motions are hereby GRANTED. The first, second, fourth, fifth and sixth paragraphs of the judgment are amended and rendered as follows: IT IS ORDERED, ADJUDGED AND DECREED that there be judgment herein in favor of plaintiff Jeremy Shephard and against defendant AIX Energy Inc. in the sum of SIXTEEN MILLION, SEVEN HUNDRED TWO THOUSAND, TWO HUNDRED SIX & 33/100 ($16,702,206.33) dollars, plus legal interest, this judgment being unenforceable against AIX Energy Inc. pursuant to the ruling of the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, In re: AIX Energy, Chapter 11, Case No. 15-34245, that plaintiff’s recovery from AIX Energy Inc. is limited to Aix Energy Inc.’s liability insurance proceeds as set forth below. IT IS ORDERED, ADJUDGED AND DECREED that there be judgment herein in favor of plaintiff Jeremy Shephard and against defendant St. Paul Fire & Marine Insurance Company in the sum of EIGHT MILLION, FOUR HUNDRED THIRTY-TWO THOUSAND, EIGHTY-FIVE & 00/100 ($8,432,085.00) Dollars, which represents 76.90% of $10,965,000.00 (the remaining proceeds of insurance coverage under the St. Paul policy), plus legal interest from the date of judicial demand until paid. IT IS ORDERED, ADJUDGED AND DECREED that there be judgment herein in favor of plaintiff Emily Shephard and against defendant St. Paul Fire & Marine Insurance Company in the sum of TWO HUNDRED FORTY-FIVE THOUSAND, SIX HUNDRED SIXTEEN & 00/100 ($245,616.00) dollars, which represents 2.24% of $10,965,000 (the remaining proceeds of insurance coverage under the St. Paul policy), plus legal interest from the date of judicial demand until paid. IT IS ORDERED, ADJUDGED AND DECREED that there be judgment herein in favor of plaintiff Michael Jackson and against defendant AIX Energy Inc. in the sum of FOUR MILLION, FIVE HUNDRED TWENTY-NINE THOUSAND, SIX HUNDRED THREE & 48/100 ($4,529,603.48) dollars, this judgment being unenforceable against AIX Energy Inc. pursuant to the ruling in the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, In re: AIX Energy, Chapter 11, Case No. 15,34245, that plaintiff’s recovery from AIX Energy Inc. is limited to AIX Energy Inc.’s liability proceeds as set forth below. IT IS ORDERED, ADJUDGED AND DECREED that there be judgment herein in favor of plaintiff Michael Jackson and against defendant St. Paul Fire & Marine Insurance Company in the sum of TWO MILLION, TWO HUNDRED EIGHTY-SEVEN THOUSAND, TWO HUNDRED NINETY-NINE & 00/100 ($2,287,299.00) dollars, which represents 20.86% of $10,985,000.00 (the remaining proceeds of insurance coverage under the St. Paul policy), plus legal interest from the date of judicial demand until paid. The remainder of this court’s original opinion, rendered May 23, 2018, is affirmed as rendered. 2

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