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HomeMy WebLinkAbout20130546.tiffRESOLUTION RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING SMALL TRACT OIL AND GAS LEASE, ACCEPT OFFER TO LEASE MINERAL ACRE, AND AUTHORIZE CHAIR TO SIGN - PDC ENERGY, INC. WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, PDC Energy, Inc., 1775 Sherman Street, Suite 3000, Denver, Colorado 80203, has requested that the bidding procedure be waived according to the policy as set forth in the Weld County Code for parcels less than five acres, on the following described mineral acres: Lot 1, Block 1, Franklin's Addition to the Town of Severance, being located in Section 1, Township 6 North, Range 67 West of the 6th P.M., Weld County, Colorado WHEREAS, PDC Energy, Inc., is offering to lease the above described mineral acres, containing .3757 mineral acres, more or less, and WHEREAS, the Board finds that the lease offer from PDC Energy, Inc., in the amount of ONE HUNDRED FIFTY AND 28/100 DOLLARS ($150.28), is acceptable, with the further terms and conditions being as stated in said Small Tract Oil and Gas Lease, a copy being attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the request of PDC Energy, Inc., to waive the bidding procedure on an Oil and Gas Lease concerning the above described mineral acres, be, and hereby is, granted. BE IT FURTHER RESOLVED by the Board that the offer of PDC Energy, Inc., to lease mineral acres, as hereinabove stated, be, and hereby is, accepted. BE IT FURTHER RESOLVED by the Board that the Chair, be, and hereby is, authorized to sign said Small Tract Oil and Gas Lease. 2013-0546 LE0315 WAIVE BID PROCEDURE / SMALL TRACT LEASE - PDC ENERGY, INC. PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 25th day of February, A.D., 2013. BOARD OF COUNTY COMMISSIONERS WELD CY, COLORADO ATTEST: Weld County Clerk to the Board BY: ALL Deputy Cler APP the Board Coun y Attorney MAR 0 1 2013 Date of signature: William F. Garcia, Chair Douglas Rademacher� , Pro-Tm an P. Conway ke Freeman rbara Kirkmeyer 2013-0546 LE0315 WELD COUNTY OIL AND GAS LEASE (Small Tract) THIS AGREEMENT, made and entered into this 25 day of February , 2013, by and between WELD COUNTY, COLORADO, a political subdivision of the State of Colorado acting by and through the Board of County Commissioners of the County of Weld, 1150 O Street, P.O. Box 758, Greeley, CO 80632, hereinafter called Lessor, and PDC Energy, Inc., whose address is 1775 Sherman Street, Suite 3000, Denver, CO 80203, hereinafter called Lessee. WITNESSETH, that Lessor, for and in consideration of the sum of Ten and More Dollars ($10.00), cash in hand paid, the receipt of which is hereby acknowledged, and the covenants and agreements hereinafter described, has granted, demised, leased and let, and by these presents does grant, demise, lease and let exclusively unto the said Lessee, the land hereinafter described, with the exclusive right for the purpose of mining, exploring by geophysical and other methods, and operating for and producing therefrom; oil and all gas of whatsoever nature or kind, with rights of way and easement for laying pipe lines, and erection of structures thereon to produce, save and take care of said products, all that certain tract of land situated in the County of Weld, State of Colorado, described as follows, to wit: Section 1, Township 6 North, Range 67 West of the 6th P.M., Weld County, Colorado: Lot 1, Block 1, Franklin's Addition to the Town of Severance and containing 0.3757 acres, more or less. 1. It is agreed that the lease shall remain in force for a term of three (3) years from this date and as long thereafter as oil or gas of whatsoever nature or kind is produced from said leased premises or on acreage pooled therewith, or drilling operations are continued as hereinafter provided. If, at the expiration of the primary term of this lease, oil or gas is not being produced on the leased premises or on acreage pooled therewith but Lessee is then engaged in drilling or re -working operations thereon, then this lease shall continue in force so long as operations are being continuously prosecuted on the leased premises or on acreage pooled therewith; and operations shall be considered to be continuously prosecuted if not more than ninety (90) days shall elapse between the completion or abandonment of one well and the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on said land or on acreage pooled therewith, the production thereof should cease from any cause after the primary term, this lease shall not terminate if Lessee commences additional drilling or re -working operations within ninety (90) days from date of cessation of production or from date of completion of dry hole. If oil or gas shall be discovered and produced as a result of such operations; at or after the expiration of the primary term of this lease, this lease shall continue in force so long as oil or gas is produced from the leased premises or on acreage pooled therewith. 2. This is a PAID -UP LEASE. In consideration of the down cash payment, Lessor agrees that Lessee shall not be obligated, except as otherwise provided herein, to commence or continue any operations during the primary term. Lessee may at any time or times during or after the primary term surrender this lease as to all or any portion of said land and as to any strata or stratum by delivering to Lessor or by filing for record a release or releases, and be relieved of all obligation thereafter accruing as to the acreage surrendered. 3914565 Pages: 1 of 5 03/05/2013 10:45 AM R Fee:$0.00 Steve Moreno, Clerk and Recorder. Weld County, CO gill M1�114RY 11�4h'l#�:F;hyULL}? A Yi{�iit;iW,�, IIIII 2013-0546 LE 0315 R:\Land\Donna KeistlerUohn\Simonsen 6N-67W-Sc 1 W2\Leasing\Simonsen Leases - Participants Meld County\Weld County Lease form dated 1-18-2013.doc (Revised 1/2012) 3. In consideration of the premises the said Lessee covenants and agree to pay Lessor twenty percent (20%) of the proceeds received by Lessee, payable monthly, for the oil, gas and other hydrocarbons produced and saved from the leased premises. 4. Where gas from a well capable of producing gas is not sold or used, Lessee may pay or tender as royalty to Lessor One Dollar per year per net mineral acre owned by Lessor and covered by this lease, such payment or tender to be made on or before the anniversary date of this lease next ensuing after the expiration of 90 days from the date such well is shut in and thereafter on or before the anniversary date of this lease during the period such well is shut in. If such payment or tender is made, it will be considered that gas is being produced within the meaning of this lease. 5. If said Lessor owns less than the entire oil and gas fee simple estate in the above described lands, then the royalties (including any shut-in gas royalty) herein provided for shall be paid to the said Lessor only in the proportion which Lessor's interest bears to the entire oil and gas mineral fee simple estate. 6. Lessee shall have the right to use, free of cost or royalty, gas, oil and water produced on said land for Lessee's operations thereon, except water from the wells of Lessor. 7. When requested by Lessor, Lessee shall bury Lessee's pipe lines below plow depth. 8. No well shall be drilled nearer than 200 feet to any occupied building on said premises without the written consent of Lessor. 9. Lessee shall have the right at any time to remove all of Lessee's machinery and fixtures placed on said premises, including the right to draw and remove casing. 10. The rights of Lessor and Lessee hereunder may be assigned in whole, or in part, upon payment of a $25.00 fee and written consent of the Board of Weld County Commissioners, such consent shall not be unreasonably withheld. No change in ownership of Lessor's interest (by assignment or otherwise) shall be binding on Lessee until Lessee has been furnished with notice, consisting of certified copies of all recorded instruments or documents and other information necessary to establish a complete chain of record title from Lessor, and then only with respect to payment thereafter made. No other kind of notice, whether actual or constructive, shall be binding upon Lessee. No present or future division of Lessor's ownership as to different portions or parcels of said land shall operate to enlarge the obligations or diminish the rights of Lessee, and all Lessee's operations may be conducted without regard to any such division. If all or any part of this lease is assigned, no leasehold owner shall be liable for any act or omission of any other leasehold owner. 11. Lessee, at its option, is hereby given the right and power at any time and from time to time as a recurring right, either before or after production, as to all or any part of the land described herein and as to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the mineral estate covered by this lease with other land, lease or leases in the immediate vicinity for the production or oil and gas, or separately for the production or either, when in Lessee's judgment it is necessary or advisable to do so, and irrespective of whether authority similar to this exists with respect to such other land, lease or leases. Likewise, units previously formed to include formations not producing oil or gas may be reformed to exclude such non -producing formations. The forming or reforming of any unit shall be accomplished by Lessee executing and filing of record a declaration of such unitization or reformation, which declaration shall describe the unit. Any unit may include land upon which a well has theretofore been completed or upon which operations for drilling have theretofore been commenced. Production, drilling or reworking operations or a well shut in for want of a market anywhere on a unit which includes all or a part of this lease shall be treated as if it were production, drilling or reworking operation or a well shut in for want of a market under this lease. In lieu of the royalties elsewhere herein specified, including shut-in gas royalties, Lessor shall receive on production from the unit so pooled royalties only on the portion of such production allocated to this lease; such allocation shall be that 3914565 Pages: 2 of 5 03/05/2013 10:45 AM R Fee:$0.00 Steve Moreno, Clerk and Recorder, Weld Count;: CO Ell !?M4�Cr!lirIf�.FR1Mddii 11111 ionsen Leases - Participants Meld County Meld County Lease form dated 1-18-2013.doc (Revised 1/2012) proportion of the unit production that the total number of surface acres covered by this lease and included in the unit bear to the total number of surface acres in such unit. In addition to the foregoing, lessee shall have the right to unitize, pool or combine all or any part of the above described lands as to one or more of the formations thereunder with other lands in the same general area by entering into a cooperative or unit plan of development or operation approved by any governmental authority and, from time to time, with like approval, to modify, change or terminate any such plan or agreement and, in such event, the terms, conditions and provisions of this lease shall be deemed modified to conform to the terms, conditions and provisions of such approved cooperative or unit plan of development or operation and, particularly, all drilling and development requirements of this lease, express or implied, shall be satisfied by compliance with the drilling and development requirements of such plan or agreement, and this lease shall not terminate or expire during the life or such plan or agreement. In the event that said above described lands or any part thereof shall hereafter be operated under any such cooperative or unit plan of development or operation whereby the production therefrom is allocated to different portions of the land covered by said plan, then the production allocated to any particular tract of land shall, for the purpose of computing the royalties to be paid hereunder to Lessor, be regarded as having been produced from the particular tract of land to which it is allocated and not to any other tract of land; and the royalty payments to be made hereunder to Lessor shall be based upon production only as so allocated. Lessor shall formally express Lessor's consent to any cooperative or unit plan of development or operation adopted by Lessee and approved by any governmental agency by executing the same upon request of Lessee. 12. All express or implied covenants of this lease shall be subject to all Federal and State laws, executive orders, rules or regulations, and this lease shall not be terminated, in whole or in part, nor Lessee held liable in damages, for failure to comply therewith, if compliance is prevented by, or if such failure is the result of, any such law, order, rule or regulation. 13. Lessor does not warrant title to the leased premises, but it shall, upon request, allow Lessee access to such abstracts and other title papers as it has in its files. Lessee shall have the right at any time to redeem for Lessor, by payment, any mortgages, taxes or other liens on the above described lands in the event of a default of payment by Lessor, and be subrogated to the rights of the holder thereof. 14. Lessee shall indemnify Lessor against all liability and loss, and against all claims and actions, including the defense of such claims or actions, based upon or arising out of damage or injury, including death, to persons or property caused by or sustained in connection with operations on this leased land or by conditions created thereby, or based upon any violation of any statute, ordinance or regulation. 15. Upon failure or default of Lessee to comply with any of the terms and provisions hereof including but not limited to the failure to comply with laws, rules and regulations covering Colorado oil and gas operations, Lessor is hereby authorized upon notice and hearing, as hereinafter provided, to cancel this lease as to all of the leased land so claimed or possessed by Lessee hereunder. In the event of any such default or failure, Lessor shall, before making any such cancellation, send to Lessee by certified mail, to the post office address of said lessee as shown by the records of Lessor, a notice or intention to cancel for such failure or default, specifying the same, stating that if within forty-five (45) days from the date of mailing said notice, Lessee shall correct such failure or default, no cancellation will be made. If such failure or default is not corrected with forty-five (45) days after the mailing of such notice, and if Lessee does not request a hearing on such notice within forty-five (45) days, this lease will terminate and be canceled by operation of the paragraph without further action by Lessor, or further notice to Lessee. 16. All of the provisions of this lease shall be binding upon the heirs, personal representatives, successors and assigns of Lessor and Lessee. 3914565 Pages: 3 of 5 03/05/2013 10:45 RM R Fee:$0.00 Steve Moreno, Clerk and Recorder. Weld County CO ■III PrOllit%fI id h, 31112 Vichh,1' i i,11111 nonsen Leases - Participants Meld County\Weld County Lease form dated 1-18-2013.doc (Revised 1/2012) 17. Lessee shall not conduct operations of any kind upon the surface of the lands herein described without the express written consent of Lessor, such consent shall not be unreasonably withheld. 18. Neither party shall be responsible for delays or failures in performance resulting from acts or occurrences beyond the reasonable control of such party, including, without limitation: fire, explosion, power failure, flood, earthquake or other act of God; war, revolution, civil commotion, terrorism, or acts of public enemies; any law, order, regulation, ordinance, or requirement of any government or legal body or any representative of any such government or legal body; or labor unrest, including without limitation, strikes, slowdowns, picketing or boycotts. In such event, the party affected shall be excused from such performance (other than any obligation to pay money) on a day-to-day basis to the extent of such interference (and the other party shall likewise be excused from performance of its obligations on a day- to-day basis to the extent such party's obligations relate to the performance so interfered with). IN WITNESS WHEREOF, Lessor has hereunto signed and caused its name to be signed by the CHAIR, BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD, with the seal of the office affixed, and Lessee has signed this agreement, the day and year first above written. ATTEST: `'l`(\1t_t Weld County Cler o the Board By: Deputy Clerkthe Board STATE OF COLORADO COUNTY OF WELD The foregoing ss instrument , 2013, by Witness my hand and official seal. Notary Public My Commission Expires: was BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO Chair, Board of County Commissioners William F. Garcia acknowle FEB 2 5 2013 ed before me this day of TAMMY LEE WATERS NOTARY PUBLIC STATE OF COLORADO NOTARY ID 20124078542 MY COMMISSION EXPIRES _DECEt PER 3914565 Pages: 4 of 5 03/05/2013 10:45 RM R Fee:$0.00 Steve Moreno, Clerk and Recorder, Weld County, CO 1111 Kir1lrit11111 /3-059(0 R:\Land\Donna Keistlerklohn\Simonsen 6N-67W-Sc 1 W2\Leasing\Simonsen Leases - Participants Meld County Meld County Lease form dated 1-18-2013.doc (Revised 1/2012) LESSEE: By: /[ • .S7 T e: James B. Schat , Vice President Land ACKNOWLEDGMENT STATE OF COLORADO s s CITY & COUNTY OF DENVER ) BEFORE ME, the undersigned authority, on this day personally appeared James R. Schaff, in his capacity as Vice President Land, PDC Energy, Inc., previously known as Petroleum Development Corporation, a Nevada corporation, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity stated, and as the act and deed of said corporation. GIVEN UNDER MY HAND AND SEAL OF OFFICE this 13th day of February , 2013. (SEAL) (Tracie Owens -Yates Notary Public My Commission expires: March 5, 2014 Pages: 5 of 5 3914565 R Fee:$ �,I III 0/05/013 10:45 RMu Recorder, Weld Cou^�Y.'r CO II �IIIli!CrIV.VY: �1S�EI�1N4�1 IIY11 n R:\Land\Donna KeistlerVohn\Simonsen 65-67W-Sc 1 W2\Leasing\Simonsen Leases - Participants Meld County Meld County Lease form dated 1-18-2013.doc (Revised 1/2012) G) PDC ENERGY Growing E&P Value RECEIVED WELD COUNTY COMMISSIONERS February 13, 2013 CERTIFIED MAIL, RETURN RECEIPT REQUESTED Weld County Colorado P.O. Box 758 Greeley, CO 80632 Attn: Esther E. Gesick Deputy Clerk to the Board/Office Manager Re: Oil and Gas Lease Offering Township 6 North, Range 67 West, 6th P.M. Section 1: Lot 1, Block 1, Franklin's Addition to the Town of Severance Weld County, CO Containing 0.3757 acres, m/l Dear Esther: As a follow up to our submittal dated February 7, 2013, and your e-mail received dated 2/12/2013. enclosed please find an undated Weld County Oil and Gas Lease (small tract) between Weld County, Colorado, as Lessor, and PDC Energy, Inc., as Lessee, covering the referenced tract, executed by James R. Schaff, Vice President Land with the applicable Notary executed for PDC. Upon approval and execution by Weld County, please forward the original executed lease to the attention of the undersigned for further processing. Thanks for your assistance in this matter. Very truly yours, Donna N. Keistler, CPL Consulting Landman Direct: 303 831-3984 e-mail: donna.keistler@pdce.com Enclosures as stated CORPORATE OFFICE: PDC Energy 1775 Sherman Street, Suite 3000 Denver, Colorado 80203 (303) 860-5800 EASTERN REGIONAL HEADQUARTERS: PDC Energy 120 Genesis Boulevard • P.O. Box 26 Bridgeport, West Virginia 26330 (304) 842-3597 PDC ENERGY Growing E&P Value February 7, 2013 CERTIFIED MAIL, RETURN RECEIPT REQUESTED 91 7199 9991 7032 7099 7084 Weld County Colorado P.O. Box 758 Greeley, CO 80632 RECEIVED Attn: Esther E. Gesick Deputy Clerk to the Board/Office Manager WELL, COUNTY COMMISSIONERS Re: Oil and Gas Lease Offering Township 6 North, Range 67 West, 6'h P.M. Section 1: Lot 1, Block 1, Franklin's Addition to the Town of Severance Weld County, CO Containing 0.3757 acres, m/I Enclosed please find the following: 1. Weld County Oil and Gas Lease (small tract) dated 1/18/2013, but effective 1/1/2013, between Weld County, Colorado, as Lessor, and PDC Energy, Inc., as Lessee, covering the referenced tract, executed by James R. Schaff, Vice President Land. 2. Drilling and Division Order Title Opinion dated 10/4/2012, prepared by Caldwell Hathcoat, LLC, pages 1, 19-25, and Exhibit "B" for Tract 1. 3. PDC Energy, Inc. Check No. 198375 in the amount of $150.28 ($400/acre bonus for the 0.3757 acre tract). PDC Energy, Inc., respectfully requests your approval of this lease offering. Upon execution please forward the original executed lease to the attention of the undersigned for further processing. Thanks for your assistance in this matter. Very truly yours, Donna N. Keistler, CPL Consulting Landman Direct: 303 831-3984 e-mail: donna.keistler@pdce.com Enclosures as stated CORPORATE OFFICE: PDC Energy 1775 Sherman Street, Suite 3000 Denver, Colorado 80203 (303) 860-5800 EASTERN REGIONAL HEADQUARTERS: PDC Energy 120 Genesis Boulevard • P.O. Box 26 Bridgeport, West Virginia 26330 (304) 842-3597 Caldwell Hathcoat LLC Lawyers 4440 Arapahoe Avenue, Suite 110 Boulder, Colorado 80303 Office: 303-945-2750 Facsimile: 303-957-2605 Todd R. Caldwell *Richard L. Hathcoat Rene Annesley *Devon Trupp *Admitted to practice in Colorado and Oklahoma October 4, 2012 Mr. John Krattenmaker PDC Energy, Inc. 1775 Sherman St., Suite 3000 Denver, Colorado 80203 Re: Drilling and Division Order Title Opinion Certified to July 11, 2012 at 7:00 a.m. T6N, R67W of the 6th P.M. Section 1: W/2 Weld County. Colorado Simonsen Wells DRILLING AND DIVISION ORDER TITLE OPINION covering Township 6 North, Range 67 West, 6th P.M. Section 1: W/2 Weld County, Colorado Containing 318.758 acres + Referred to herein as the "captioned lands" The captioned lands are comprised of the following tracts: Tract 1: Section 1: Franklin's Addition to the Town of Severance, and the 2nd Replat of Franklin's Addition, as shown on the plat recorded in Book 1549 at Reception No. 2494139, and the 3`d Replat of Franklin's Addition, as shown on the plat recorded at Reception No. 2717815. See Exhibit "B" for a description of the Lots and Tracts and acreages that are located in the NW/4NW/4 of Section 1. Tract 1 contains 6.573 acres, +. PDC Energy Page 19 Tract 14 - Surface Ownership: October 4, 2012 James P. Bornhoft and Annette Bornhoft, JT 100.000000% Total 100.000000% Tract 14 — Oil and Gas Ownership: James P. Bornhoft and Annette Bornhoft, JT 100.000000% Total 100.000000% Tract 14 - Leasehold Ownership: Name James P. Bornhoft and Annette Bornhoft, JT Total (As to all formations) WI NRI LEASE 100.000000% 100.000000% Unleased 100.000000% 100.000000% CONSOLIDATED OIL & GAS LEASEHOLD OWNERSHIP OWNERSHIP I Township 6 North, Range 67 West, 6th P.M. Section 1: W/2 Limited to the Niobrara and Codell formations For extended Unit calculations, see Exhibit "F" attached Name PDC Energy, Inc. Bill Barrett Corporation James P. Bornhoft and Annette Bornhoft, JT Steven B. Ruth Timothy J. Mollohan and JoNell S. Mollohan, JT Bruce C. Canon and Cherie Canon, JT Mazel Group LLC WI NRI LEASE 83.380492% 66.728335% C through Y 8.570765% 6.685197% A, B 1.568588% 1.568588% Unleased 0.436381% 0.436381% Unleased 0.313718% 0.313718% Unleased 0.252229% 0.252229% Unleased 0.205799% 0.205799% Unleased PDC Energy Page 20 Jonathan Noel Korban Lazy JJD Family, Ltd. Jay Hessler and Karen Hessler, JT Daryl C. Hill Darrin C. Cook and Pamela K. Cook, JT Courtney Devine and Travis Devine, JT Sean Vincent Ryan and Rhiannon Ryan, JT Krystal A. Santiago and Denise R. Santiago, JT James N. Niswender and Grace E. Niswender, JT Weld County, Colorado Niege Enterprises, Ltd. Wallygriff Revocable Living Trust Carl K. Cress Derek S. Jackson and Joan E. Jackson, JT James N. Shreck and Annette M. Shreck, JT Maureen K. Myers and Lyndell Myers, JT Corey Schwartzkipf Lawrence P. DeMilt Keith Henneke and Aryn Henneke, JT Benjamin L. DeWitt Robert A. Money and Heather A. Money, JT Eileen Kay White Scott Dvorak Thomas K. Hatch and Sheila L. Hatch, JT R. Paul Gleason and Sara J. Gleason, JT William Carl Miller and Linda Ann Miller, JT Ridley E. Ullom and Laura J. Ullom, JT Timothy D. Maestas and Eva F. Maestas, JT Frank J. Wassenberg Carol Aguero Robert A. Brinker and Ann L. Brinker, JT Doke Enterprises, Inc. William D. Goode and Susan K. Goode, JT Mae Mendoza and Joe A. Mendoza, JT 0.197328% 0.183525% 0.176623% 0.134271% 0.130820% 0.127683% 0.197328% 0.183525% 0.176623% 0.134271% 0.130820% 0.127683% 0.123291% 0.123291% 0.118899% 0.118899% 0.118272% 0.117958% 0.116703% 0.113252% 0.112625% 0.118272% 0.117958% 0.116703% 0.113252% 0.112625% 0.110742% 0.110742% 0.107605% 0.107605% 0.106037% 0.105095% 0.102586% 0.101645% 0.101331% 0.101017% 0.101017% 0.091606% 0.090037% 0.084390% 0.084390% 0.083135% 0.081880% 0.081253% 0.080312% 0.079684% 0.077488% 0.077175% 0.077175% 0.106037% 0.105095% 0.102586% 0.101645% 0.101331% 0.101017% 0.101017% 0.091606% 0.090037% 0.084390% 0.084390% 0.083135% 0.081880% 0.081253% 0.080312% 0.079684% 0.077488% 0.077175% 0.077175% October 4, 2012 Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased PDC Energy Page 21 Jon M. Ridout and Paula J. Ridout, JT 0.077175% Delmar L. Elkenberg and Cynthia G. Elkenberg, JT 0.076233% Michael W. Spiegel and Kathleen R. Spiegel, JT 0.076233% Roger B. Hartshorn and Teresa A. Hartshorn, JT 0.075920% Corey John Jaskolski and Ann Jaskolski, JT 0.075920% Zachary Kaplan and Bonnie E. Skolnik 0.075920% Kirk C. Nichols and Johnna M. Nichols 0.075606% Timothy Harris and Kelly Harris 0.074979% Raymond L. Hudgens and Judith D. Hudgens, JT 0.071841% Eric James Kos 0.071214% Mauricio C. Lodwick and Angela K. Lodwick, JT 0.071214% Michael L. Coppola and Marie F. Coppola, JT 0.070273% Michell Hasbargen and Dana Hasbargen, JT 0.069959% Richard D. Hoff and Sharon L. Hoff, JT 0.067449% Pamela Ann Skidmore 0.067449% Donald Tormey 0.067449% Robert A. Bowden and Melissa D. Bowden, If 0.067136% Roger S. Brodzeller and Dawn R. Brodzeller, JT 0.067136% Roberta A. Haas 0.067136% Robert Lambrecht and Jane Lambrecht, JT 0.063371% Linda Blodgett Miller 0.058979% William C. Miller 0.058979% Town of Severance, Colorado 0.027607% Vivian P. Weiss, Life Estate, Remainder to Matthew L. Lindberg and Sean M. Lindberg, TC Pardee Minerals LLC Wilco Properties, Inc. Noble Energy, Inc. Venable Royalty, Ltd. R.H. Venable Properties, Ltd. Arizona Exploration LC S. Duff Kerr, Jr. 0.077175% 0.076233% 0.076233% 0.075920% 0.075920% 0.075920% 0.075606% 0.074979% 0.071841% 0.071214% 0.071214% 0.070273% 0.069959% 0.067449% 0.067449% 0.067449% 0.067136% 0.067136% 0.067136% 0.063371% 0.058979% 0.058979% 0.027607% 0.171415% 0.137132% 0.137132% 0.128561% 0.068566% 0.068566% 0.051425% 0.030855% October 4, 2012 Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased (ORI) A, B (ORI) A, B (ORI) A, B (ORI) A, B (ORI) A, B (ORI) A, B (ORI) A, B (ORI) A, B PDC Energy Page 22 Kamal C. Jain Roberto T. Alaniz Franklin Lake Farm, LLC HKS Enterprise, LLC Lauren J. Felte and Deborah K. Felte, JT Dennis W. Sivers, Trustee for the Elizabeth E. Sivers Revocable Trust u/a/d October 23, 1991 Marleen Dotson Elmira Martin Cudney Trust dated July 13, 1994 Laura Lynn Martin Julie Ann Martin Perry Allan Martin Harold G. Cox and Cynthia B. Cox, JT Adam S. Bagley Mark E. Casseday Jason D. Dittmar and Vandee M. Dittmar, JT John R. Hutchinson Steven J. Roberts and Julie A. Roberts Daniel J. Judge and Dianne Judge, JT Jay B. Becker and Deborah L. Becker, JT Paul L. Mista Philip N. Graff and Rebecca L. Graff, JT Jerod A. Huwa and Megan D. Huwa, JT Natalie R. Schaffer Frances E. Cordell Darren L. Welch and Ashley M. Henk, JT Gregory J. Hoffman and Sherry T. Hoffman, JT Herbert Becker and Vivian Backer, ST Douglas M. Burman Ron Connors Brian K. Entgelmeier and Jodi L. Entgelmeier, JT Leonard Edward Michal Ruth Alvina Michal Lauren J. Felte Total October 4, 2012 0.017142% (ORI) A, B 0.003428% (ORI) A, B 11.633088% (LOR) C 4.311107% (LOR) D 0.348854% (LOR) E 0.267836% (LOR) B 0.267836% (LOR) B 0.265287% (LOR) A 0.088429% (LOR) A 0.088429% (LOR) A 0.088429% (LOR) A 0.032176% (LOR) K 0.028352% (LOR) F 0.022470% (LOR) H 0.022294% (LOR) X 0.021117% (LOR) N 0.020529% (LOR) L 0.020176% (LOR) R 0.016647% (LOR) M 0.016529% (LOR) O 0.016176% (LOR) G 0.015764% (LOR) S 0.015764% (LOR) T 0.015470% (LOR) J 0.015294% (LOR) U 0.014235% (LOR) Q 0.013529% (LOR) V 0.012588% (LOR) Y 0.012588% (LOR) I 0.012588% (LOR) W 0.007412% (LOR) P 0.007412% (LOR) P 0.005098% (LOR) A 100.000000% 100.000000% PDC Energy Page 23 October 4, 2012 OWNERSHIP II Township 6 North, Range 67 West, 6th P.M. Section 1: W/2W/2 Limited to the Niobrara and Codell formations For extended Unit calculations, see Exhibit "G" attached Name WI NRI LEASE PDC Energy, Inc. 87.027409% 69.668425% C through Y Steven B. Ruth 0.873590% 0.873590% Unleased Timothy J. Mollohan and JoNell S. Mollohan, JT 0.628030% 0.628030% Unleased Bruce C. Carron and Cherie Carron, JT 0.504936% 0.504936% Unleased Maze! Group LLC 0.411988% 0.411988% Unleased Jonathan Noel Korban 0.395031% 0.395031°A Unleased Lazy JJD Family, Ltd. 0.367398% 0.367398% Unleased Jay Hessler and Karen Hessler, JT 0.353581% 0.353581% Unleased Daryl C. Hill 0.268797% 0.268797% Unleased Dan -in C. Cook and Pamela K. Cook, JT 0.261889% 0.261889% Unleased Courtney Devine and Travis Devine, JT 0.255608% 0.255608% Unleased Sean Vincent Ryan and Rhiannon Ryan, JT 0.246816% 0.246816% Unleased Krystal A. Santiago and Denise R. Santiago, JT 0.238023% 0.238023% Unleased James N. Niswender and Grace E. Niswender, JT 0.236767% 0.236767% Unleased Weld County, Colorado 0.236139% 0.236139% Unleased Niege Enterprises, Ltd. 0.233627% 0.233627% Unleased Wallygriff Revocable Living Trust 0.226719% 0.226719% Unleased Carl K. Cress 0.225463% 0.225463% Unleased Derek S. Jackson and Joan E. Jackson, JT 0.221695% 0.221695% Unleased James N. Shreck and Annette M. Shreck, JT 0.215414% 0.215414% Unleased Maureen K. Myers and Lyndell Myers, JT 0.212274% 0.212274% Unleased Corey Schwartzkipf 0.210390% 0.210390% Unleased Lawrence P. DeMilt 0.205366% 0.205366% Unleased Keith Henneke and Aryn Henneke, JT 0.203482% 0.203482% Unleased Benjamin L. DeWitt 0.202854% 0.202854% Unleased Robert A. Money and Heather A. Money, JT 0.202226% 0.202226% Unleased Eileen Kay White 0.202226% 0.202226% Unleased Scott Dvorak 0.183385% 0.183385% Unleased Thomas K. Hatch and Sheila L. Hatch, JT 0.180245% 0.180245% Unleased PDC Energy Page 24 R. Paul Gleason and Sara J. Gleason, JT William Carl Miller and Linda Ann Miller, JT Ridley E. Ullom and Laura J. Ullom, JT Timothy D. Maestas and Eva F. Maestas, JT Frank J. Wassenberg Carol Aguero Robert A. Brinker and Ann L. Brinker, JT Doke Enterprises, Inc. William D. Goode and Susan K. Goode, JT Mae Mendoza and Joe A. Mendoza, JT Jon M. Ridout and Paula J. Ridout, JT Delmar L. Elkenberg and Cynthia G. Elkenberg, JT Michael W. Spiegel and Kathleen R. Spiegel, JT Roger B. Hartshorn and Teresa A. Hartshorn, JT Corey John Jaskolski and Ann Jaskolski, JT Zachary Kaplan and Bonnie E. Skolnik Kirk C. Nichols and Johnna M. Nichols Timothy Harris and Kelly Harris Raymond L. Hudgens and Judith D. Hudgens, JT Eric James Kos Mauricio C. Lodwick and Angela K. Lodwick, JT Michael L. Coppola and Marie F. Coppola, JT Michell Hasbargen and Dana Hasbargen, JT Richard D. Hoff and Sharon L. Hoff, JT Pamela Ann Skidmore Donald Tonney Robert A. Bowden and Melissa D. Bowden, JT Roger S. Brodzeller and Dawn R. Brodzeller, JT 0.168940% 0.168940% 0.166428% 0.163916% 0.162660% 0.160776% 0.159520% 0.155123% 0.154495% 0.154495% 0.154495% 0.152611% 0.152611% 0.151983% 0.151983% 0.151983% 0.151355% 0.150099% 0.143819% 0.142563% 0.142563% 0.140679% 0.140051% 0.135027% 0.135027% 0.135027% 0.134398% 0.168940% 0.168940% 0.166428% 0.163916% 0.162660% 0.160776% 0.159520% 0.155123% 0.154495% 0.154495% 0.154495% 0.152611% 0.152611% 0.151983% 0.151983% 0.151983% 0.151355% 0.150099% 0.143819% 0.142563% 0.142563% 0.140679% 0.140051% 0.135027% 0.135027% 0.135027% 0.134398% 0.134398% 0.134398% October 4, 2012 Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased Unleased PDC Energy Page 25 October 4, 2012 Roberta A. Haas 0.134398% 0.134398% Unleased Robert Lambrecht and Jane Lambrecht, JT 0.126862% 0.126862% Unleased Linda Blodgett Miller 0.118070% 0.118070% Unleased William C. Miller 0.118070% 0.118070% Unleased Town of Severance, Colorado 0.055267% 0.055267% Unleased Franklin Lake Farm, LLC 10.065943% (LOR) C HKS Enterprise, LLC 5.897204% (LOR) D Lauren J. Felte and Deborah K. Felte, JT 0.698370% (LOR) E Harold G. Cox and Cynthia B. Cox, JT 0.064412% (LOR) K Adam S. Bagley 0.056758% (LOR) F Mark E. Casseday 0.044983% (LOR) H Jason D. Dittmar and Vandee M. Dittmar, JT 0.044629% (LOR) X John R. Hutchinson 0.042274% (LOR) N Steven J. Roberts and Julie A. Roberts 0.041097% (LOR) L Daniel J. Judge and Dianne Judge, JT 0.040390% (LOR) R Jay B. Becker and Deborah L. Becker, JT 0.033325% (LOR) M Paul L. Mista 0.033089% (LOR) O Philip N. Graff and Rebecca L. Graff, JT 0.032383% (LOR) G Frances E. Cordell 0.030970% (LOR) J Darren L. Welch and Ashley M. Henk, JT 0.030616% (LOR) U Gregory J. Hoffman and Sherry T. Hoffman, JT 0.028497% (LOR) Q Herbert Becker and Vivian Backer, JT 0.027084% (LOR) V Douglas M. Burman 0.025200% (LOR) Y Ron Connors 0.025200% (LOR) I Brian K. Entgelmeier and Jodi L. Entgelmeier, JT 0.025200% (LOR) W Jerod A. Huwa and Megan D. Huwa, JT 0.020843% (LOR) S Natalie R. Schaffer 0.020843% (LOR) T Leonard Edward Michal 0.014837% (LOR) P Ruth Alvina Michal 0.014837% (LOR) P Total 100.000000% 100.000000% OWNERSHIP III Township 6 North, Range 67 West, 6`h P.M. Section 1: E/2W/2 Limited to the Niobrara and Codell formations For extended Unit calculations, see Exhibit "H" attached Name PDC Energy, Inc. Bill Barrett Corporation WI 79.740487% 17.125306% NRI 63.793816% 13.357738% LEASE C, D, S, T A, B EXHIBIT "B" a N 1:13- O Z aia N N L U U) co CO ° O� v C C a r- > O O -O G7 up in a a c �° ° ¢ ¢ N CO cap O C Ul a a O E I' O r o C- V .o a r U H Y C Q1 O C T ` O ` N N = co C a v n !— CO W W 0 t F-' N p m m a ¢ CO U v a n u v, -c -o Q X cc N •p U Y C (0 U- v ° v Tract Descriptions with S cv) N O .8O r T +oco O C O 'O Cr C_ Se - C612 C lL c m L t O X D W W o O U o • c W• cC °0 (Y • Z m • CD (1 Petroleum Development Corporation NRI ro eum Development Corporation WI m= 8 8 8 8 100.000000% # %BOW00'DOL 8 S I 8 8 I 8 I I 8 g I 8 I 8 100.000000% I 8 I 8 I 8 I 8 a; ar 8 gggg S 8 ggg 8 8 S 8 8 8 0 8 8 S 8 S 8 g� 8 8 8 8 8 �g 8 8 8 8 8 8§ 8$ 8 8 g S 8 8 gg5 8 8 8 8 8 *3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 crc4 0 0 s a 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 a ' i z i i i z z 55" z z z z z z z z z z z ; z 2 z 55 z 2 z z i 0 0 08F88088888 8 8 0 8 8 8 x- = o nLL j0 ., o > I J > CI ≥ > o r(r> > ≥ ≥ o o I Address #7 Adelaide Rd., Walton on Thanes, Surrey. England KT 121N8 I#7 Adelaide Rd, Walton on Thames, Surrey. England KT 121NB I#7 Adelaide Rd, Walton on Themes, Surrey. England KT 121NB #7 Adelaide Rd, Walton on Thames. Surrey, England KT 12114B #7 Adelaide Rd., Walton on Thames, Surrey, England KT 121NB #7 Adelaide Rd., Walton an Thames. Surrey, England AT 121 NB I#7 Adelaide Rd. Wagon on Themes. Surrey, England KT 121NB 445 1st Street Severance, CO 80546 '4451st Street Severance, CO 80546 W _o a� 4461st Street Severance, CO 80546 446 1st Street Severance, CO 80546 14461st Street 'Severance, CO 80546 #7 Adelaide Rd. , Walton on Thames. Surrey, England KT 121NB #7 Adelaide Re , VVakon on Thames, Surrey, England KT 121NB 105 Ruth Avenue Severance, CO 60546 107 Ruth Avenue Severance, CO 80546 #7 Adelaide Rd., Walton on Thames. Surrey, England KT 121NB #7 Adelaide Rd. Walton on Thanes. Surrey, England KT 121 NB Owner of Surface Owner of Oil and Gas 'Steven B Ranh Steven B. Ruth c ¢ ¢ 5 EC Y. (Steven B. Ruth ¢ Bruce C. Carron and Chene Carron, JT Bnme C. Canon and Cherie Canon, JT Bruce C. Carron and Chene Canon, JT 'Bruce C. Canon and Chene Carron, JT Bruce C. Carron and Chene Carron, JT Bryce C. Canon and Chene Carron, IT £ tt Steven B. Ruth Pamela Ann Skidmore Cr Steven B. RNs O J N Franklin's Addition to the Town of Severance Franklin's Addition to the Town of Severance Franklin's Addition to the Town of Severance Franklin's Addition to the Town of Severance Franklin's Addition to the Town of Severance Franklin's Addition to the Town of Severance Franklin's Addition to the Town of Severance Franklin's Addition to the Town of Severance Franklin's Addition to the Town of Severance Franklin's Addition to the Town of Severance I Franklin's Addition to the Town of Severance Franklin's Addition to the Town of Severance Franklin's Addition to the Town of Severance 2nd Replat Franklin's Addition recorded In Book 1549, Reception No. 2494139 2nd Replat Franklin's Addition recorded in Book 1549, Reception No. 2494139 2nd Replat Franklin's Addition recorded in Book 1549, Reception No. 2494139 2nd Replat Franklin's Addition recorded in Book 1549, Reception No. 2494139 A parcel of land located in the NW/4 of Section 1, more particularly described in a Warranty Deed recorded at Reception No. 2815505 as follows: Beginning at the southwest corer of Lot 19, Block 2 of the 2nd Replat of Franklin's Addition to the Town of Severance as recorded in Book 1549, Reception No. 2494139, and considering the south line of said Lot to bear N89°20'4O'E with all other bearings relative thereto: Thence N00°37'33W, 7,50 feet; Thence N89°20'40"E, 48.19 feet, Thence 500°00'00"00 20 00 feel Thence S89°20'40'% 47.97 feet. Thence NOO°37'33"W, 12,50 feet to the point of beginning. Said parcel contains 961 65 square feet more or less. A parcel of land located in the NW/4 of Section 1, more particularly described in a Warranty Deed recorded at Reception No. 2615500 as follows' Beginning at the southwest corner of Lot 19. Block 2 of the 2nd Replat of Franklin's neither to the Town of Severance as recorded in Book 1549, Reception No. 2494139, and considering the south line of said Lot to beer N69°20'40"E with all other bearings relative thereto' Thence S00°37'33"W, 30.00 feet to the north line of Lot 6, Block I of Hunter Hill Subdivision, Phase I as recorded in Book 1567, Reception No. 2511439: Thence S99°2040%, 41 40 feet along the north line of said Lot to the northwest comer of said Lot: Thence NOo°OS'10'W, 30.00 feet, Thence N89°20'40"E, 4140 feet to the point of beginning. Said parcel contains 1,242 ware feet more or less. Tract 16!,16:9,:6,"3-'2-2, .3 J 3 J s J N ry tv N N N N N ry ry ,, 2 m 0 0 m 0 m 0 8g m 0 a 0 {N( S 0 ?rv( S Ea ?N( S {ry( d 0 jN 0 m +N( E m s 0 m 0 22 0 0 0 m Petroleum Development Corporation NRI M Development Corporation WI Lessor NRI 8 8 Lessor W 0 o 8 8 8 8 l._ja o 8 om 9a o goy C : a a Oa z z f a .9 re j0 o n a P.O. Box 122 231 West 4th Ave. Severance, Colorado 80546 P 0 Boy 122 231 West 415 Ave Severance. Colorado 80546 Owner of Surface Owner of Oil and Gas Town of Severance, Colorado Town of Severance. Colorado Subdivision A parcel of land located in the NW/4 of Section 1, more particularly described in a Quitclaim Deed recorded at Reception No. 2969928 as follows: Sev Pt NW4 1-6- 67 PT of Vac W196.76' of 5m Ave. lying S And E of the following descriptions beg SW Cor L19, Blk 2 2nd replat Franklins add S00037W 30' S89D20' W91 40' NOOD05'W30' N88D2o'D 4140 to POB also beg sw cor L19 OLK 2 2nd Replat Franklins add No0D37W 7.50 N89D20"E 48.19' 520' 589020W 47 97' 500037' W12.9 Parcel 9080701200000. A pafcel of land located in the N W/4 of Section 1. more particularly described in a Quitclaim Deed recorded at Reception No. 2969928 as follows. Sev "BikePath" 2nd replat Franklins add Parcel 9080701203011. Tract PDC Energy P.O. BOX 26 BRIDGEPORT. WV 28330 Page 1 of 1 VENDOR NAME VENDOR NO. CHECK DATE CHECK NUMBER AMOUNT Weld County Colorado 43444 Jan -29-2013 00198375 "5150.28* Reference Inv date Invoice No. Invoice Amt Prior Pmt Discount Amount Paid 1301 -AP -6055 01/29/13 012913 150.28 0.00 Bonus lease covering T6N-R67W-1-Lot 1, Blk 1 Return to Patty Richardson for delivery. 0 a O N O 0 0 c N u, W O w U o m o Y m ) a)U 2 RECEIPT RECEIVED FROM PDC bey, 1 ADDRESS / 11111, htLii cz Pa EV ` `1b7/ $ /5 a , FOR DATE a' q" /3 NC. t5 h % HOW PAID CASH CHECK 7 l/� ) 5 f l MONEY ORDER 150.28 L (36 (KILIgg375 BY 12" PAYEE DETACH THIS STATEMENT BEFORE DEPOSITING LEo3iS Hello