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Home My WebLink About20131422.tiffKERR-MCGEE OIL AND GAS ONSHORE AMENDED DIVISION ORDER WELD COUNTY COLORADO C/O BOARD OF COUNTY COMMIS 915 10TH STREET GREELEY, CO 80631 Venture Number: Property Number: Property Name: Product: Status: County/State: Effective Date: Owner Number: Interest Amt/Type: Unit Description: T2N-R64W, Sec 28: W/2SW/4 COVERING 80 ACRES, M/L OF THE CODELL FORMATION 329451 1105376 GREER 13-28 CODL All Products NOT APPLICABLE APR .2!9 20143 WELD/ CO 9/1/2011 WELD Car RV37471504- WELD COUcti d}''U-+6'`rb 0.00006250 / RI RECEIVED The undersigned certifies the ownership of their decimal interest in production or proceeds as described above payable by KERR-MCGEE OIL AND GAS ONSHORE (Payor). Payor shall be notified, in writing, of any change in ownership, decimal interest, or payment address. All such changes shall be effective the first day of the month following receipt of such notice. Payor is authorized to withhold payment pending resolution of a title dispute or adverse claim asserted regarding the interest in production claimed herein by the undersigned. The undersigned agrees to indemnify and reimburse Payor any amount attributable to an interest to which the undersigned is not entitled. Payor may accrue proceeds until the total amount equals $100, or Sept. 30 whichever occurs first, or as required by applicable state statute. This Division Order does not amend any lease or operating agreement between the undersigned and the lessee or operator or any other contracts for the purchase of oil or gas. In addition to the terms and conditions of this Division Order, the undersigned and Payor may have certain statutory rights under the laws of the state in which the property is located. Note: NADOA Model Form Division Order (Adopted 9/95) RV37471504 WELD COUNTY COLORADO C/O BOARD OF COUNTY COMMIS Attest:`6u'`"p'�`pl'./" ( __ Clerk to the icoar B : Deputy Cl C.61'V2thl aginda, 02-10-13 Own Sianat /Co ate Title William F. Garcia, Chair Owner Signature/Corporate Title JUN 1 0 2013 *Tax ID # XXX-XX-0813 **Tax ID # 1150 0 St P.O. Boc 758 Owner Address (if different from above) Greeley CO 80632 City, State Zip Code 970-356-4000 Owner Daytime Phone 2013-1422 (EDoti- a * Failure to furnish your Social Security/Tax ID number will result in withholding tax in accordance with federal law and any tax withheld will not be refundable by payor. **Insert Tax ID number for all individual parties listed above in the Name and Address box Return to: KERR-MCGEE OIL AND GAS ONSHORE P.O. Box 173779 Denver, CO 80217-3779 1-800-677-5603 I _ -%✓✓- {fie Date Prepared: April 22, 2013 Prepared by: icy Susp: N COUNTY ATTORNEY STAFF APPROVAL This is to affirm the attached Division Order and authorization to receive payment for an oil and gas well has been reviewed by the County Attorney's staff as to form and legal description. Well Name: BY: Greer (8 wells) Stephanie Arries Assistant County Attorney File Location(s): LE0057-2 DATE: ,ZP- �/� Stephanie Arries From: Sent: To: Subject: Tammy Waters Wednesday, May 22, 2013 4:29 PM Stephanie Arries FW: Division Orders - Information Request Tammy Waters Deputy Clerk to the Board 1150 O Street' P.O. Box 758'Greeley, CO 80632 tel: (970) 336-7215 X5226 Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Petross, Katie[mailto:Katie.Petross@anadarko.com] Sent: Wednesday, May 22, 2013 4:25 PM To: Tammy Waters Subject: RE: Division Orders - Information Request Hi Tammy, The division order wasn't missed by you or Blue & Gray, as much as, Weld County's minerals were not accounted for when they originally set the wells up. Thanks & have a great day, Katie From: Tammy Waters [mailto:twatersAco.weld.co.us] Sent: Wednesday, May 22, 2013 3:35 PM To: Petross, Katie Subject: FW: Division Orders - Information Request Hi Katie, Thank you so much for all the valuable information today. Please send us any information you have pertaining to the Greer well and the missed division order from the Blue and Gray operating company. We are also requesting spud date and the full title opinion in this situation. Thanks you again, 1 Tammy Waters Deputy Clerk to the Board 1150 O Street P.O. Box 758'Greeley, CO 80632 tel: (970) 336-7215 X5226 Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Tammy Waters Sent: Tuesday, April 30, 2013 10:49 AM To: katie.petrossOanadarko.com Subject: Division Orders - Information Request Hi Katie, Hope you are having a wonderful Tuesday! We received several Division Orders that we need more information on before I can process them. Rocky said you are a wonderful resource and may be able to help me get to the right person that can track down the additional information required by our County Attorney. I have attached a scanned image of each division order as well. Thank you so much for your assistance with this. Tammy Waters Deputy Clerk to the Board 1150 O Street' P.O. Box 758/Greeley, CO 80632 tel: (970) 336-7215 X5226 Confidentiality No ice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. Click here for Anadarko's Electronic Mail Disclaimer 2 Tammy Waters To: Petross, Katie Subject: FW: Division Orders - Information Request Attachments: Division Order Memo.pdf; Division Orders - Kerr-McGee.pdf Hi Katie, Thank you so much for all the valuable information today. Please send us any information you have pertaining to the Greer well and the missed division order from the Blue and Gray operating company. We are also requesting spud date and the full title opinion in this situation. Thanks you again, Tammy Waters Deputy Clerk to the Board 1150 O Street/P.O. Box 758/Greeley, CO 80632 tel: (970) 336-7215 X5226 Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. if you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Tammy Waters Sent: Tuesday, April 30, 2013 10:49 AM To: katie.petross@anadarko.com Subject: Division Orders - Information Request Hi Katie, Hope you are having a wonderful Tuesday! We received several Division Orders that we need more information on before I can process them. Rocky said you are a wonderful resource and may be able to help me get to the right person that can track down the additional information required by our County Attorney. I have attached a scanned image of each division order as well. Thank you so much for your assistance with this. Tammy Waters 1 Deputy Clerk to the Board 1150 O Street/P.O. Box 758/Greeley, CO 80632 tel: (970) 336-7215 X5226 Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. 2 Tammy Waters From: Petross, Katie [Katie.Petross@anadarko.com] Sent: Monday, May 20, 2013 1:14 PM To: Tammy Waters Subject: Greer calculation Attachments: image001.png Hi Tammy, Sorry for the delay in sending the requested information over. Here is the tract information for the Greer wells, each well has a description: TRACT 2 Township 2 North, Range 64 West Section 28: The portions of parcels described in Deeds at Book 97'8, Pages 343 and 344, to the extent such parcels are located in the SW/4 1.16 acres, more or less Oil and Gas Weld County, Colorado 100.000000% 132 Oil and Gas Leasehold Lease No. Kerr-McGee Oil & Gas Onshore, LP 100.000000% 132 Lease No. Thanks & have a great day, Katie Mae Petross, CDOA Wattenberg Division Orders Anadarko Petroleum Corporation 1099 18th Street, Suite 1800 Denver, CO 80202 Phone 720-929-6642 Fax 720-929-7642 00, • 896 Recorded at .__. try, ,,,ia, goo ! e p_ FEB 2 1 1980 181'766'7 �euu Rec. No. �- - State of Colorado, Weld County Clark & Recorder .EXTENSION AND AMENDMENT OP OIL AND GAS LEASE a a N 0 c CD .-1 N m W THIS AGREEMENT AND AMENDMENT, made and enteredinto this 23rd day of April, 1979, by and between Weld County, a political subdivision of the State of Colorado, by the Board of County Commissioners, for its respective interest, herein referred to as "Lessor," whether one or more, and Amoco Production Company, Security Life Building, Denver, Colorado 80202 herein referred to as "Lessee," whether one. or more; WITNESSETH:. WHEREAS, Lessor and Lesseeeach.own an interest under and subject to the following described oil and gas lease (herein called "said lease"), insofar as said lease covers the following described lands (herein called "said lands") in the County of Weld, State of Colorado, to -wit: Lessor: Weld County Lessee: Amoco Production Company Dated: April 21, 1977 Recorded: Book 7964 Reception No. 1718197 Lands: T. 2N, R. 64 W., 6th P.M. Section 26: That part . of the NW/4 SE/4 of said. .Section beginning 745 feet South and'30 feet , East of center of Section; thence South 125 feet; thence East 140 feet; thence North 125 feet; thence West. 140 feet to place of begin- ning, containing 2.5 acres,- more or less. Section 28: A tract of land lying within the boundaries of the NW/4 and adjacent to South ,right of way.line-.of State Highway No. 81, and 'more particularly described as follows: Commencing at the West quarter corner of Section ,28; thence Easterly along half section line for a distance Of 450 feet to the point of begin- ning; thence Northerly and .perpendicular to the half section line for a distance of 100 feet; ,thence South 81°01' East for a.distance of -385 feet; hence Southerlyand perpendicular to the half section line for a distance of 60 feet to a point on said half section line; thence Westerly along said half section line for a distance of 380 feet more or less, to the point of begin- ning; containing 0.7 acre, more or less. 6:2%96 7 mil When recorded Worn 90 AMOCO PRODUCTION COMPA AR SECURIEY LIFE BUILDING DENVER. COLORADO 00202 ;3°4'866 I 181766'7 (4 -7 - Section 28: A tract,of land commencing at the West quarter corner of Section 28; thence Easterly along half.: section line for a distance of 480 feet to the point of beginning; thence Northerly 'and perpendicular to half section line for a distance of 100 feet; then South 81°O1' East for a distance of 355 feet; thence southerly and perpendicular to half section line for a distance of 60 feet to a point on said half section line; thence Westerly along said half section line for a distance of 350 feet more or less, to the point of beginning, containing 0.64 acres. Section 30: .All that part of the SW/4 lying South of the Chicago, Burlington & Quincy - Railroad, containing 17..53 acres:, more or less. and WHEREAS, Lessor and Lessee desire to amend said lease as herein provided; NOW, THEREFORE, in consideration of thesum of Ten Dollars ($10.00) and other valuable consideration paid to Lessor by Lessee,_the receipt, adequacy and sufficiency of .which are hereby acknowledged, Lessor and Lessee hereby agree that said lease, which covers a total of 21.37 acres, more or less, shall be and is hereby amended by deleting therefrom in its entirety the following: "Subject to the other provisions herein contained, this lease shall, be for a term of two years from this date (called "primary term") and as long thereafter as oil, gas and other hydrocarbons are produced from said land hereunder or drilling or -. reworking operations are conducted thereon." and hereby substitutetherefor the following: "Subject to the further provisions hereof, this lease shall remain in force- for a term ending 120 days from this date, called "Primary Term,"- and as long thereafter as either (1) oil, gas or other minerald are produced (whether or not in paying quantities) from the leased premises or on. lands pooled therewith, or (2) operations are conducted on the leased' premises or on lands pooled therewith, or (3) there is a well or wells on the leased premises or on lands pooled therewith which, although capable of producing oil, gas or other-minerals:in paying quantities hereunder is shut in for lack of a market or outlet. "Operations as used herein means all operations for the When recorded return ID AMOCO PRODUCTION COMPANI CNRITI IR NIWIN0 DENVER COLORADO e,IAM °°K•Sg t{3 drilling of a well for oilor gas, including building of roads, pre- • 1817667 paration of the drill site, moving in for drilling, drilling, deepening, plugging back, reworking or recompleting and also secondary recovery operations benefiting the lease premises." - Lessee further agrees that should no operatiohs� for the drilling of a well for oil and gas be commenced within the Primary Term, to pay Lessor the sum of $25.00 . per acre ($534.25) as liquidated damages. The Lessor and Lessee do hereby expressly join in, ratify and con- firm said lease, insofar as said lease covers said land and acknowledge that said lease, as herein amended, is valid and in' full force and effect, and the. Lessor does hereby grant, lease and let unto the Lessee the entire interest of the Lessor in said lands upon the terms, condi- tions and provisions contained in said lease as herein, amended, and for. the purpose of this instrument and said lease, the Lessor hereby releases all rights of dower and/or homestead in said lands. EXECUTED as of the day and year first above set forth. LESSOR ATTEST:kJl-ry1 Weld County. Clerk and a . Clerk to the B SEE STATE OP COLORADO COUNTY OF DENVER Recorder ES. Weld County, a political sub- division of the State of Colo- rado by the Chairman of .the Board of County. Commissioners, for its respective interest. By: dies_ COLORADO Norman Carlson, Chairman The�/joregoing instrument was acknowledged before me this o? , 1077 , by F. J. MIRE PRODUCTION COMPANY. ,,..'WITNESS my hand and official seal. V. Doi.'-.. , OT/ 2r , \01 - `epjjOL,G'n ? . y.commission. expires: •• . •'•My GYmmiesiuhNpres June 3,1982 /Notary Public day of Attorney Security Life Building Denver, Colorado 80202 Notary Public to rcA When reiorded Tatum M AMOCO PRODUCTION COMPANt I[MIIY tiff WHOM() WNVa. mlouoo em® drilling of a well' for oil or gas, including building 1817667 t43 of roads, pre- paration of the drill site, moving in for drilling, drilling, deepening, plugging back, reworking or recompleting and operations benefiting the lease premises." Lessee further agrees that should no operations for also secondary recovery the drilling of a well for oil and gas be commencedwithin the Primary Term, to pay Lessor the sum of $25.00 per acre ($534.25) as liquidated damages. The Lessor and Lessee do hereby expressly join in, ratify and con- firm said lease, insofar as said lease covers said land and acknowledge that said lease, as herein amended, is valid and in full force and effect, and the Lessor does hereby grant, lease and let unto the Lessee the entire interact of the Tnarnr g°°x896 wt08 co' nion MAYM ia.; :nznY1s oEwr 1817667 Amoco Production Company fly:`7.CJT771lr�e- tts Attorney in tool Th foregoing instrument was acknowledged before me this tip --day of , 1979, by Norman Carlson, Chairman of the ' Board of County ;' CROPResioners of Weld County, Colorado My commission expires jZ � Pk!'" Witness my hand and official seal. -/r, C The foregoing instrument was day of , 1979, by ,1912. , 19 My commission expires Witness my hand and official seal. Notary Public RESOLUTION RE: APPROVAL OF EXTENSION AND AMENDMENT OF OIL AND GAS LEASE BETWEEN WELD COUNTY, COLORADO AND AMOCO PRODUCTION COMPANY AND AUTHORIZATION FOR THE CHAIRMAN TO SIGN THE SAME. 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, an agreement between Weld County, Colorado and Amoco Production Company has been presented to the Board of County Commissioners of Weld County, Colorado, and WHEREAS, said agreement provides for an oil and gas lease extension of 120 days for property located in Township 2 North, Range 64 west of the 6th P.M., Weld County, Colorado, and WHEREAS, the Board, after reviewing said agreement finds that the agreement should be approved. NOW, THEREFORE, BE IT RESOLVED by the Board of County Com- missioners of Weld County, Colorado that the Extension and Amendment of Oil and Gas Lease between Weld County, Colorado and Amoco Production Company be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board of County Commissioners of Weld County, Colorado that the Chairman of the Board be, and hereby is, authorized to sign said agreement. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 30th day of April, A.D., 1979. ATTEST:'7fl .,..,44w'°"` e Weld County Ierk and Recorder aClerk to the ?o�atd B ED AS TO FORM: County Attorney BOARD OF COUNTY COMMISSIONERS LUNTY, COLORADO Q DATE PRESENTED: MAY 2, 1979 790003 MAY 311979 Recorded of ...._...L o'clock �-_M.._._..._._ BOOK 870 Rec. No..17. ??Qa..._.... L/4 Cie UVU State of Colorado, Weld County Clerk & Recorder EXTENSION AND AMENDMENT OF OIL AND GAS LEASE THIS AGREEMENT AND AMENDMENT, made and entered into this 23rd day of April, 1979, by and between Weld County, a political subdivision of the State of Colorado, by the Board of County Commissioners, for its respective interest, herein referred to as "Lessor," whether one or more, and Amoco Production Company, Security Life Building, Denver, Colorado 80202 herein referred to as "Lessee," whether one or more; WITNESSETH: WHEREAS, Lessor and Lessee each own an interest under and subject to the following described oil and gas lease (herein called "said lease"), insofar as said lease covers the following described lands (herein called "said lands") in the County of Weld, State of Colorado, to -wit: Lessor: Weld County Lessee; Amoco Production Company Dated: April 21, 1977 Recorded: Book 796, Reception No. 1718197 Lands: T. 2N., R. 64 W., 6th P.M. Section 26: That part of the NW/4 SE/4 of said Section beginning 745 feet South and 30 feet East of center of Section; thence South 125 feet; thence East 140 feet; thence North 125 feet; thence West 140 feet to place of begin- ning, containing 2.5 acres, more or less. Section 28: A tract of land lying within the boundaries of the NW/4 and adjacent to South right of way line of State Highway No. 81, and more particularly described as follows: Commencing at the West quarter corner of Section 28; thence Easterly along half section line for a distance of 450 feet to the point of begin- ning; thence Northerly and perpendicular to the half section line for a distance of 100 feet; thence South 81°01' East for a distance of 385 feet; hence Southerly and perpendicular to the half section line for a distance of 60 feet to a point on said half section line; thence Westerly along said half section line for a distance of 380 feet more or less, to the point of begin- ning, containing 0.7 acre, more or less. BOOK 870 1792203 and Section 28: A tract of land commencing at the West quarter corner of Section 28; thence Easterly along half section line for a distance of 480 feet to the point of beginning; thence Northerly and perpendicular to half section line for a distance of 100 feet; then South 81°01' East for a distance of 355 feet; thence Southerly and perpendicular to half section line for a distance of 60 feet to a point on said half section line; thence Westerly along said half section line for a distance of 350 feet more or less, to the point of beginning, containing 0.64 acres. Section 30: All that part of the SW/4 lying South of the Chicago, Burlington & Quincy Railroad, containing 17.53 acres, more or less. WHEREAS, Lessor and Lessee desire to amend said lease as herein provided; NOW, THEREFORE, in consideration of the sum of Ten Dollars ($10.00) and other valuable consideration paid to Lessor by Lessee, the receipt, adequacy and sufficiency of which are hereby acknowledged, Lessor and Lessee hereby agree that said lease, which covers a total of 21.37 acres, more or less, shall be and is hereby amended by deleting therefrom in its entirety the following: "Subject to the other provisions herein contained, this lease shall be for a term of two years from this date (called "primary term") and as long thereafter as oil, gas and other hydrocarbons are produced from said land hereunder or drilling or reworking operations are conducted thereon." and hereby substitute therefor the following: "Subject to the further provisions hereof, this lease shall remain in force for a term ending 120 days from this date, called "Primary Term," and as long thereafter as either (1) oil, gas or other minerals are produced (whether or not in paying quantities) from the leased premises or on lands pooled. therewith, or (2) operations are conducted on the leased premises or on lands pooled therewith, or (3) there is a well or wells on the leased premises or on lands pooled therewith which, although capable of producing oil, gas or other minerals in paying quantities hereunder is shut in for lack of a market or outlet. "Operations as used herein means all operations for the 870 drilling of 1792203 a well for oil or gas, including building of roads, pre- paration of the drill site, moving in for drilling, drilling, deepening, plugging back, reworking or recompleting and also secondary recovery operations benefiting the lease premises." Lessee further agrees that should no operations for the drilling of a well for oil and gas be commenced within the Primary Term, to pay Lessor the sum of $25.00 per acre ($534.25) as liquidated damages. The Lessor and Lessee do hereby expressly join in, ratify and con- firm said lease, insofar as said lease covers said land and acknowledge that said lease, as herein amended, is valid and in full force and effect, and the Lessor does hereby grant, lease and let unto the Lessee the entire interest of the Lessor in said lands upon the terms, condi- tions and provisions contained in said lease as herein amended, and for the purpose of this instrument and said lease, the Lessor hereby releases all rights of dower and/or homestead in said lands. EXECUTED as of the day and year first above set forth. LESSOR ATTEST: "fRQ/aj.:xurr°wto7'k/ Weld County Clerk and Recorder and -Clerk to the B Bl: uty County Crk LESSEE Amoco Production Compan y By: " T //"c. -L- Attorney in Foot COLORADO STATE OF COLORADO : SS. COUNTY OF DENVER �4J Tforegoing instrument was acknowledged before me this %r day of 4a./ , 19 A! , by F. J. M1 Rlz , Attorney in Fact foil' AMOCO PRODUCTION COMPANY. Weld County, a political sub- division of the State of Colo- rado by the Chairman of the Board of County Commissioners, for its respective interest. By: )20-041••••a.. &tea Norman Carlson, Chairman Michael T. Sullivan Landman Amoco Production Company Security Life Building Denver, Colorado 00202 303 -820 -4496 -Office 303 -693 -0855 -Residence S5opy hand and official seal. '..r, i4: fre:bommisaidGnexpires: �00/, s 0, p rya)}r48,Xtebtes June 3,13022 Notary Public Security Life Building Denver, Colorado 80202 RESOLUTION RE: RESCIND RESOLUTION OF APRIL 23, 1979 CONCERNING THE APPROVAL OF EXTENSION OF OIL AND GAS LEASE FOR AMOCO PRODUCTION COMPANY. 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, on Apri , 1979, the Board of County Commis- sioners adopted a resolution concerning the approval of an exten- sion of an oil and gas lease for Amoco Production Company, and EREAS, the total acreage of land as stated in said resolu- tion is in error, and WHEREAS, the Board of County Commissioners of Weld County, Colorado deems it advisable to rescind said resolution. NOW, THEREFORE, BE IT RESOLVED by the Board of County Com- missioners of Weld County, Colorado that the resolution of April 23, 1979 concerning the extension of an oil and gas lease for Amoco Production Company be, and hereby is, rescinded. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 2nd day of May, A.D., 1979. ATTEST: I:T,NM'r"FAA7n Weld County Clerk and Recorder a.. Clerk to the B '17County Attorney BOARD OF COUNTY COMMISSIONERS ELDCOLORADO gwiste 790006 1k00E;7 DATE PRESENTED: MAY 2, 1979 RESOLUTION RE: APPROVAL OF EXTENSION OF OIL AND GAS LEASE FOR AMOCO PRODUC- TION COMPANY. 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, Amoco Production Company hasrequested a 120 -day extension of its Oil and Gas Lease on 17.53 acres of land in the Southwest Quarter of Section 30, Township 2 North, Range 64 West of the 6th P.M., Weld County, Colorado, and WHEREAS, extension of said lease will enable Amoco and its partners to move in a rig to a drilling location and commence operations for a 3 -Sand test on a 30 -acre unit, and WHEREAS, offering to lease on a bid system may prevent or significantly delay the drilling, and WHEREAS, Amoco has offered $100.00 for said extension and $25.00 per acre in liquidated damages should they fail to com- mence operations within the extension period, and WHEREAS, the Board of County Commissioners deems it advisable to grant said extension to Amoco due to the extenuating circum- stances. NOW, THEREFORE, BE IT RESOLVED by the Board of County Com- missioners of Weld County, Colorado that the request of Amoco Production Company for an extension of its Oil and Gas Lease be, and hereby is, approved with the payment of $100.00 for said extension and $25.00 per acre in liquidated damages should Amoco fail to commence operations within the extension period. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 23rd day of April, A.D., 1979. /11^,,. ATTEST: 2. Weld County Clerk and Recorder and -_Clerk to the Boapd /Deputy County Clerk BOARD'OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO 790005 DATE PRESENTED: APRIL 25, 1979 Richard N. Dodge Independent Landman 536 Empire Building 430 16th Street Denver, Colorado 80202 Office: 303 893-0264 Res: 303 420-0273 April 23, 1979 Board of County Commissioners Weld County, Colorado RE: Extension of Oil and Gas Lease held by Amoco Production Company on 17.53 acres of land in SWa Section 30, Town- ship 2 North, Range 64 West, Weld County, Colorado, which expired April 21, 1979. Gentlemen: My client, Amoco Production Company, respectfully requests the Board for an extension of its oil and gas lease on the above described County mineral interest for a period of 120 days. Ex- tension of the lease will enable Amoco and its partners to move in a rig to a drilling location and commence operations for a J -Sand test on a 320 acre unit. Offering to lease on the bid system may prevent or significantly delay the drilling. We of- fer $100.00 for the extension and $25.00 per acre in liquidated damages ($438.25) should we fail to commence operations within the extension period. The other provisions of the original lease will apply. Should the Board approve, an instrument has been prepared which may be submitted to the county attorney, prior to its execution. Sincerely yours, ' C* Richard N. Dod ge Tammy Waters From: Becker, Hannah [Hannah.Becker@anadarko.com] Sent: Monday, July 01, 2013 3:21 PM To: Tammy Waters Cc: Richardson, David; Petross, Katie Subject: RE: Division Orders - Information Request Attachments: Weld County OGL.PDF; Weld County OGL Extension.pdf; 2012 TJornehoj Opinion.pdf; Affidavit of Production.pdf; Declaration of Unitization.pdf Follow Up Flag: Flag Status: Hey Tammy, Follow up Flagged After doing some research, I believe the Weld County lease recorded May 4, 1977 at Reception No. 1718197 is still active. This lease covers tracts of land in 2N 64W Sections 26, 28 and 30. The primary term was extended for 120 days at Reception No. 1817667. A 2012 Tjornehoj Opinion, given to us by Encana, covers 2N 64W 30: W/2 comments that in a meeting on April 23, 1979 the Board of County Commissioners modified the lease, intending to extend the primary term of lease to cover a spud date of May 1, 1979. The 2012 Tjornehoj Opinion relied on a 2003 Kuhn Opinion that stated the County Commissioners executed a division order regarding production from the lease. The primary term was therefore extended to include the spud of the Starks #1 well drilled and completed in the SW/4SW/4 of Section 30 2N 64W (API # 05-123-09716). There is an Affidavit of Production recorded February 22, 1980 at Reception No. 1817713 that is proof of production on the Weld County lease. The lease is also included in a Declaration of Unitization covering 2N 64W Section 30: W/2 recorded July 20, 1979 in Book 875 at Reception No. 1797449. The COGCC Production Data shows the Starks #1 producing until February 2013. The lease does not have a pugh clause therefore production from Section 30 will hold the entire lease. In conclusion, production from the Starks #1 and the Declaration of Unitization hold this lease. If you have any questions, please let me know. Thanks! Hannah Becker Landman I I Kerr-McGee Oil & Gas Onshore LP A wholly owned subsidiary of Anadarko Petroleum Corporation 1099 18`h St. Denver, CO 80202 Phone: 720-929-6928 From: Petross, Katie Sent: Monday, July 01, 2013 8:13 AM To: Becker, Hannah; Richardson, David Cc: Tammy Waters (twaters@co.weld.co.us) Subject: FW: Division Orders - Information Request Good morning, Can one of you look into this question from Tammy and get back to her? Thanks & have a great day, Katie From: Tammy Waters fmailto:twaters@ co.weld.co.usl Sent: Friday, June 28, 2013 9:26 AM To: Petross, Katie Subject: FW: Division Orders - Information Request Hi Katie, On page 22 of the corrected title opinion it states that an oil and gas lease should be obtained from Weld County. Looking through the files and documents I don't see a lease that is currently active. Could you take a look and let me know your thoughts? Tammy Waters Deputy Clerk to the Board 1150 O Street/P.O. Box 758/Greeley, CO 80632 tel: (970) 336-7215 X5226 Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Petross, Katie fmailto:Katie.Petross@anadarko.coml Sent: Wednesday, May 22, 2013 4:06 PM To: Tammy Waters Subject: RE: Division Orders - Information Request Good afternoon Tammy, Well Name Property # Venture TRS Spacing ft Production Spud GREER 13-28 JSND 1105375 329450 2N -64W-28 W 9/24/2005 8/14/2005 GREER 13-28 CODL 1105376 329451 2N -64W-28 W/SW 6/18/2008 GREER 14-28 JSND 1105373 329448 2N -64W-28 W 1/28/zoo5 11/28/2004 GREER 14-28 NB -CD 1105374 329449 2N -64W-28 W/SW 6/20/2008 GREER 23-28 JSND 1105379 329454 2N -64W-28 W 1/29/2007 10/22/2005 GREER 23-28 CODL 1105380 329455 2N -64W-28 E/SW 12/22/2007 GREER 24-28 JSND 1105377 329452 2N -64W-28 W 12/1/2005 10/16/2005 GREER 24-28 CODL 1105378 329453 2N -64W-28 E/SW 10/20/2008 I pulled the Spud dates from: http://oil-gas.state.co.us/cogis/FacilitySearch.asp 2 COGIS - Facility Inquiry Search for: WATER GATHERING SYSTEM/LINE UIC WATER TRANSFER STATION UIC SIMULTANEOUS DISPOSAL UIC ENHANCED RECOVERY UIC DISPOSAL Enter search criteria: Well API: Operator: Facility/Lease: Location: Field: Limit Records: Submit Reset AII You may select multiple Facility Types by holding down the Ctrl key while diriring. County Code: Sequence Code: ,,o, Name Number FA, Name 0 Number Qtrqtr 28 Sec 2N Twp 64W Range 5,000 Records A Name 0 Number 7 Caution: COGIS contains tens of thousands of records! KMG took over operations in October of aon, we are paying you from that time forward. I am also attaching the old opinions for your records. Thanks & have a great day, Katie From: Tammy Waters fmailto:twaters©co.weld.co.us] Sent: Wednesday, May 22, 2013 3:35 PM To: Petross, Katie Subject: FW: Division Orders - Information Request Hi Katie, Thank you so much for all the valuable information today. Please send us any information you have pertaining to the Greer well and the missed division order from the Blue and Gray operating company. We are also requesting spud date and the full title opinion in this situation. Thanks you again, Tammy Waters Deputy Clerk to the Board 1150 O Street/P.O. Box 758/Greeley, CO 80632 3 tel: (970) 336-7215 X5226 Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Tammy Waters Sent: Tuesday, April 30, 2013 10:49 AM To: katie.petross@anadarko.com Subject: Division Orders - Information Request Hi Katie, Hope you are having a wonderful Tuesday! We received several Division Orders that we need more information on before I can process them. Rocky said you are a wonderful resource and may be able to help me get to the right person that can track down the additional information required by our County Attorney. I have attached a scanned image of each division order as well. Thank you so much for your assistance with this. Tammy Waters Deputy Clerk to the Board 1150 O Street'P.O. Box 758 (Greeley, CO 80632 tel: (970) 336-7215 X5226 Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. Click here for Anadarko's Electronic Mail Disclaimer 4 Tammy Waters From: Petross, Katie [Katie.Petross@anadarko.com] Sent: Wednesday, May 22, 2013 4:06 PM To: Tammy Waters Subject: RE: Division Orders - Information Request Attachments: image002.png; image003.jpg; 5192 corrected.pdf; DOTO 2N -67W Sec 28 SE.pdf; Greer 13-28, 14-28, 23-28, 24-28.pdf; TO W2 Sec 28 2N -64W Feb 13 2002.pdf; Weld County OGL Extension.pdf Good afternoon Tammy, Well Name Property # Venture TRS Spacing 1st Production Spud GREER 13-28 JSND 2105375 329450 2N -64W-28 W 9/24/2005 8/14/2005 GREER 13-28 CODL 1105376 329451 2N -64W-28 W/SW 6/18/2008 GREER 14-28 JSND 1105373 329448 2N -64W-28 W 1/28/2005 11/28/2004 GREER 24-28 NB -CD 1105374 329449 2N -64W-28 W/SW 6/20/2008 GREER 23-28 JSND 1105379 329454 2N -64W-28 W 2/29/2007 10/22/2005 GREER 23-28 CODL 1105380 329455 2N -64W-28 E/SW 12/22/2007 GREER 24-28JSND 1105377 329452 2N -64W-28 W 22/1/2005 10/16/2005 GREER 24-28 CODL 1105378 329453 2N -64W-28 E/SW 10/20/2008 I pulled the Spud dates from: http://oil-gas.state.co.us/cogis/FacilitySearch.as0 COGIS - Facility Inquiry Search for: �Y4 CLLMC1Pi'V�'krht1,hxdr.��'3-Ike' $ r\.d^ V�'�C?4+37"r,'ro?.+�i � WATER GATHERING SYSTEM/LINE UIC WATER TRANSFER STATION UIC SIMULTANEOUS DISPOSAL UIC ENHANCED RECOVERY UFO DISPOSAL Enter search criteria: Well API: Operator: Facility/Lease: Location: Field: Limit Records: Submit Reset You may select multiple Facility Types by holding down the Ctrl key while clicking. 3 %/72.4/ 3 63 r/0/. fV g /(00.6-9 (Pt ell pyymts/Rayalfre, 3 K.2Ce l ted /0/11- //3 County Code: Sequence Code: Name Number @ Name Number Qtrgtr 28 5.000 Records Sec 2W Twp 64W Range ,a, Name r Number Caution: COG'S contains tens of thousands of records! KMG took over operations in October of 2021, we are paying you from that time forward. I am also attaching the old opinions for your records. 1 Requirement: Certified Letters Testamentary indicating the authority of Richard C. Stika to have acted as Personal Representative should be obtained and recorded. Further, it is recommended that a Quit Claim Mineral Deed be obtained conveying all of the interests owned by Ruben J. Walter at his death and specifying the total acreage covered by the lands in which he owned interests. 7. Tracts 2 and 7 above consist of what was Tract VI in the Dishier Opinion. The mineral interests in these Tracts are owned by Weld County, Colorado. The Materials Examined include an Oil and Gas Lease dated in April 1977, recorded in Book 796, Reception No. 1718197, granted to Amoco Production Company for a two-year primary term. The primary term was extended for 120 days at Reception No. 1792203. The Materials Examined do not include any release of this lease but also do not include any Affidavit of Lease Extension indicating that the lease has been extended into its secondary term. Accordingly, those interests are shown as unleased in this Opinion. Requirement: You should obtain an Oil and Gas Lease from Weld County covering these interests and place of record. 8. Lease No. 10 was granted by The Great Western Sugar Company to X O Exploration, Inc., dated September 15, 1972, with a five-year primary term. The Dishler Opinion raised certain questions as to whether or not the lease was still in force with respect to the lands in the W/2 of Section 28. Those mineral interests have since been acquired by Larry L. Schupbach. At Reception No. 3128257 is a Ratification and Revival of Oil, Gas and Mineral Lease dated November 4, 2003, from Larry L. Schupbach. This instrument pertains to the W/2 of Section 28; and the lessor states that the lease is ratified, renewed and extended and revives the lease insofar as it covers those lands. Further, the lessor acknowledges that the lease is now in full force and effect and acknowledges that the lease is held by production from the Bryce #21-28 Well; and the lessor waives any argument that the lease might earlier have expired or terminated as to the W/2 of Section 28. Further, Lease No. 10 was also included in an Affidavit of Production recorded by Petroleum Development Corporation at Reception No. 3108042 on September 18, 2003. Accordingly, Lease No. 10 is shown to be in full force and effect with respect to the lands covered by this Opinion. Requirement: Advisory. 9. At Reception No. 3099566 is an assignment from Blue & Gray Resources, Inc., to Petroleum Development Corporation. It states it is assigning "all of assignor's right, title and interest in the oil and gas leases described on Exhibit A" attached thereto. The description of Lease Nos. 1 through 8 on that Exhibit A describes three separate parcels by metes and bounds description. Each of those descriptions begins with "that portion of the following described tract contained in the NW/4NW/4" Those leases covered more than just the NW/4NW/4 of Section 28. It cannot be determined whether that was an intentional description and intended to limit the scope of the assignment, even though the body of the assignment states "all of assignor's right, title and interest in the leases on Exhibit A." 22 Thanks & have a great day, Katie From: Tammy Waters [mailto:twaters@co.weld.co.us] Sent: Wednesday, May 22, 2013 3:35 PM To: Petross, Katie Subject: FW: Division Orders - Information Request Hi Katie, Thank you so much for all the valuable information today. Please send us any information you have pertaining to the Greer well and the missed division order from the Blue and Gray operating company. We are also requesting spud date and the full title opinion in this situation. Thanks you again, Tammy Waters Deputy Clerk to the Board 1150 O Street'P.O. Box 758/Greeley, CO 80632 tel: (970) 336-7215 X5226 Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Tammy Waters Sent: Tuesday, April 30, 2013 10:49 AM To: katie.oetross(@anadarko.com Subject: Division Orders - Information Request Hi Katie, Hope you are having a wonderful Tuesday! We received several Division Orders that we need more information on before I can process them. Rocky said you are a wonderful resource and may be able to help me get to the right person that can track down the additional information required by our County Attorney. I have attached a scanned image of each division order as well. Thank you so much for your assistance with this. 2 Tammy Waters Deputy Clerk to the Board 1150 O Street'P.O. Box 758IGreeley, CO 80632 tel: (970) 336-7215 X5226 Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may con ain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. Click here for Anadarko's Electronic Mail Disclaimer 3 LEGAL DEACR I PT I ON R64 T2N Sec 28 Tract of land lying within boundaries of NWg: ra• ff r dui LEASE NO. EXPI RI:S DEED WIRIER ASSESSED VALUATION CERTIFI. NUMBER RECORDED ODOR PAGE DATE �:9 421Oo /f-� Y MINERAL O PROPERTY❑ L1Do5/412- DATE LESSEE • REMARKS PAID TO IOATEI RECEIPT NO. AN 1955 Campbell R 1956 1956 Nebraska Drilling Inc 1957 r/ n 0 1970 Vance, LS (111M522) Exps 4/29/75 , _ :'.,: �-� •r -r '/'f r/ .3 !•'; '-. • 9:�. _ ♦.•. i -,-X2-:../ t 7All' I 0 l'.-e.k c • o'/J c..,,, ,..fi;-n1''I y.. _. �I 7e • fi —L'..--,:-,. J7 D.� ^:.�,,, : - L,, ;� •_ /c t2 {, l_7 n ` ! " Vii.' f - ~ R64 12N Sec 28 NO... LOCATI OrI i• Ptn .1A,:III All API MAY.i'.1.1 JUL MIX ICI CT r10,' JONATHAN D. TJORNEHOJ, LLC Attorneys at Law May 15, 2012 DRILLING AND DIVISION ORDER TITLE OPINION EnCatia Oil 84. Gas (USA) Inc. 370 17th Street, Suite 1700 Denver, Colorado 80202 Attention: Jack Croons, CPL This opinion is provided to you as a courtesy only, and your use of, or reliance upon, it is al your sole risk. You agree not to disseminate h. It Is understood and agreed, as evidenced by your acceptance of this opinion, that EnCana 011 & Gas (USA) Inc. Is no way liable to any person, firm or ootporatbn for any loss or Inconvenience occasioned by the use of, or reliance upon, this opinion. Re; Well Name: Gurtler 2A -30H and Gurtler 2B -30H Wells Township 2 North, Range 64 West, 6thP.M. Section 30: W/2 Section 31: NW/4 Weld County, Colorado Ladies and Gentlemen: In accordance with your request, we have conducted a supplemental examination of title to the following described lands located in Weld County, Colorado (the "Subject Lands"), for drilling and division order purposes, and give you our opinion thereon as follows: pESCRIPTION Township 2 North, Ranne.64 West. 6° P.M:. Section 30: W/2 Section 31: NW/4 containing 452.72 acres, more or less As to the Niobrara Formation Note: For purposes of this Opinion 'we have divided the Subject Lands into the thirteen tracts described below, I 1 Where the tract descriptions rely on Recorded Exemptions that were included In the Materials Examined we have attached those instruments as Schedule III for your convenience. 437 MAIN STREET • I,O*NGMONT 00 80501 PILUNIu 303.6432.2351 • www.JD'rn.NmeaOY.U4S .OOM EnCana Oil & (3as (USA) Inc. May 15, 2'0.12 Page 28 Heirs/Devisees of Dorothy E. Hartshorn 50.000000% 5 George E. Walters 25.000000% 9 Steven Dale Walters 25.000000% 9 Oil and Gas Leasehold Landowner's Royalty Interest OOL Heirs/Devisees of Dorothy E. Hartshorn 6.250000% 5 George E, Walters 3.125000% 9 Steven Dale Walters 3.12,5000% 9 Overriding Royalty Interest EnCana Oil & Gas COSA) Inc. 3.000000% 5,9 Working Interest WI DrIL Rntlana.Oil & Gas (USA). Inc, 100.000000% 84.500000°% 5,9 Tract 13 Township 2 North, Range 64 West eh P.M. Section 30: That portion of the SW/4 lying South of the center line of the Burlington Northern Railway. ROW containing 17,53 acres, more or less Surface Boyd A.. Arnold Helen A. Arnold Oil. Gas.atld Agociated Hydrocarbons 50.000000% 50.000000% EnCana Oil & Gas (USA) Inc. May 15, 2012 Page 29 Weld County 1{10.000000% 10 Oil and Gas Leasehold Landowner's Royalty Interest OGL Weld County 12.500000% 10 Overriding Royalty Interest Kerr-McGee Oil & Gas Onshore, LP 17.500000% 10 Workin►z Interest WI NRI C0GL EnCana Oil & Gas (USA) Inc. 100.000000% 70.000000% 10 TAXES 1r preparing this Opinion, we have not examined the records of the Weld County Treasurer to determine whether taxes assessed against the Subject Lands in W/2 of Section 30 have been properly paid. In this regard, see Additional Title Comment & Requirement No. 29. As noted in the Materials Examined, we were provided with a Real Property Tax Search Report for the NW/4 of Section 31. This report indicates that property taxes were paid through December 31, 2010 for those lands. LIENS AND ENCUMBRANCES The following are liens and encumbrances affecting the Subject Lands as identified in the 1979 Poulson and 1980 Poulson Opinions; 1. By instrument dated December 29, 1971, recorded January 4, 1972, in Book 659 at Reception No. 1581.366 of the records of Weld County, Colorado, Daniel Cooper and Peter Press granted unto the Public Trustee for the benefit of Boulevard National Bank, Denver, Colorado, a Deed of Trust covering their interest in the surface and '/z of the minerals underlying Tract 8, to secure a principal indebtedness of $1R,000.00, payable in installments of $213.67 per month at 7-1/2% interest commencing February 1, 1972, until paid in full. 2. By instrument dated July 6, 1972, recorded July 11, 1972, in Book 671 at Reception No. 15933589 of the records of Weld County, Colorado, William R. Graybill and Shirley L. Graybill, his wife, granted unto the Public Trustee for the benefit of the United States of America, Farmers Home Administration, a Deed of Trust covering their interest in the surface EnCana Oil & Gas (USA) Inc. May 15, 2012 Page 64 27. Title Requirement No. 18 stated that the opinion was subject to the rights of all patties in possession of the premises and matters of survey which were not readily apparent from the Materials Examined, including rights -of -way, which may be located on the property. The authors required the recipient to conduct a detailed inspection of the surface of the Subject Lands. STATUS: The 1980 Poulson Opinion states that this requirement was satisfied by an inspection conducted by the recipients. We note, however, thatadditional rights -of -way and other uses of the Subject Lands may have arisen since the inspection conducted for the 1979 Poulson Opinion. STATUS OF TITLE REQUIREMENTS COVERING THE W/2 OF SECTION 30 FROM THE 1980 POULSON OPINION22 1. Title Requirement No. 19 addressed a tax sale certificate affecting Tract 6 (Tract I:II hi the 1980 Poulson Opinion) that had been issued to Robert Hayes pursuant to a Tax Sale on November 13, 1979. Taxes assessed against William R. GraybiU and Shirley Gtaybill were delinquent at that time. If the ownership of the tract had been transferred pursuant to a Treasurer's Deed, the authors of the 1980 Opinion warned that any leasehold interest could be voided. At the time of the 1980 Poulson Opinion, no treasurer's deed had been issued, and the authors required the recipients of the Opinion, W.B. Macey and Paul M. Mershon, Jr., to ensure that the Tax Sale Certificate had been duly and properly redeemed and that all taxes had been paid in full. STATUS: We presume that this requirement was satisfied because William and Shirley Graybill were listed as the owners of the relevant Tract in the 2003 Kuhn Opinion.. You should, however, confirm that the tax sale certificate was redeemed and that all taxes were paid. 2. Title Requirement No. 20 addressed modifications to the primary term of OGL 10 (Lease No. 8 in that opinion). OGL 1.0 from Weld County to Amoco Production Company was dated April 21, 1977 and had a primary term of two years. The authors of the 1980 Poulson Opinion stated that in a meeting on April 23, 1979 the Board of County Commissioners modified the lease, intending to extend the primary term of lease to cover a spud date of May 1, 1979. The language the Commissioners actually inserted into the lease, however, limited the primary term to 120 days after the Lease date of April 21, 1977. '1'he authors of the 1980 Poulson Opinion stated that the only way to reach the conclusion that the lease was extended beyond the spud date 22 Below vie provide an update to the title requirements added by the .1980 Poulson Opinion. The updated information provided in the 1980 Poulson Opinion regarding title requirements from the 1979 Poulson Opinion have been incorporated into our discussion of the requirements of 1979 Poulson Opinion above. EnCana Oil & Gas (USA) Inc. May 15, 2012 Page 65• would be to argue thatthe clear language of the modified lease would lead to an absurd result. The authors felt that this might jeopardize the leasehold interest. Accordingly, they required the recipients to obtain a corrective document from the Commissioners of Weld County which clearly extended the lease's primary term to include the spud date of May 1, 1979 and contained present words of grant. STATUS: Not satisfied per the Materials 'Examined. We concur with and restate this requirement, We note that this requirement conflicts with Title Requirement No. 11 from the 2003 Kuhn Opinion described below, That Title Requirement noted that the extension did not cover the spud date, but concluded that a claim against the validity of the Lease could not be sustained based on the actions of the Board of County Commissioners. See the Status Update of Title Requirement No. 11 from the 2003 Kuhn Opinion below for further discussion regarding this interest. 3. Title Requirement Nos. 21a and 21b discussed four unrecorded assignments described in that opinion. The authors of the 1980 Poulson Opinion also identified certain issues regarding proportionate reduction of the interests conveyed. The authors required the recipients of that opinion to make certain modifications to the assignments and record them. STATUS: Satisfied. The assignments described in Schedule .II as Assignment Nos. 11, 12, 13, and 14 of OGL 3 from the 2003 Kuhn Opinion are recorded versions of the unrecorded assignments described by the 1980 Poulson Opinion. 4. Title Requirement No. 22 addressed the ownership of the leasehold for OGL 7. The requirement stated that computations as to the leasehold, affecting interests then held by Vessels Oil & Gas Company, were based upon the "confusing documents described in paragraphs 10, 11 and 12" under the assignments in the 1980 Poulson Opinion. (These same assignments are described as Item Nos. 10, 11, and 12 of the assignments from the 1980 Poulson Opinion in our Assignment table). These assignments apparently included convertible overriding royally interests that did not affect the interests of the recipients of the opinion. Because the recipients were not responsible for the payments the authors of the opinion did not detail the conversion rights. STATUS: None; advisory only. We note that Title Requirement Nos. 25 and 26 from the 2003 Kuhn Opinion addressed these same assignments. The Title Requirements in that opinion stated that the definition of payout was not included in the materials reviewed. From the descriptions of these assignments in the prior EnCana Oil & Gas (USA) Inc. May 15, 2012 Page 66 opinions, we assume that the definition of payout for the convertible overriding royalty interests in the assignments was somewhat confusing. The 2003 Kuhn Opinion included a requirement to determine that payout definition. As noted below, that requirement has not been satisfied. We have continued the practice of 2003 Kuhn Opinion as far as the treatment of these overrides in our Ownership table. 5. Title Requirement No. 23 addressed a Declaration of Unitization recorded July 20, 1979 in Book 875 at Reception No. 1797449 which unitized the entire W/2 of Section 30 for the production of gas and associated liquid hydrocarbons. The Declaration was executed by W.B. Macey and Paul M. Mershon, Jr., Husky Oil Company, Terra Resources, Inc„ Eason Oil Company, Devon Corporation, P & O Oil Corporation, Amoco Production Company, and Thomas G. Vessels. Prior to the execution of the Declaration, however, Vessels had conveyed a portion of his interest to Martin J. Freedman, F,O, Penn, and Martin L. Rogers. These three parties had not executed the Declaration, Accordingly, the authors of the 1980 Poulson Opinion required that a new Declaration be executed including these three parties. STATUS; We assume that you will obtain a declaration of unitization or pooling from the current working interest owners before undertaking operations on the W/2 and accordingly the requirement stated above is no longer relevant. 6. Title Requirement No. 24 described the statute controlling Affidavits of Production. The requirement noted that an Affidavit of Production executed by Paul Iv!. Mershon, Jr. dated February 19; 1980, recorded February 22, 1980, in Book 896 at Reception No. 1817713 for OGL 10 stated that the lease was held by production from a well in the SW/4SW/4 of Section 30. The authors required the recipients to record an additional Affidavit of Production for the entire W/2 of Section 30 and describing all the Subject Leases affecting the W/2. STATUS: Not satisfied per the Materials Examined. 7. Title Requirement No. 25 noted that a certain assignment of overriding royalty from Broadway Royalty Company to W.B, Macey and Paul M. Mershon, Jr. dated May 1, 1979 had not been recorded. The authors required the recipients to record the assignment. STATUS: Satisfied. The Assignment from Broadway Royalty Company to W.B. Macey and Paul M. Mershon, Jr, dated May 1, 1979 was recorded in Book 914 at Reception No. 1836152. EnCana Oil & Gas (USA) Inc. May 15, 2012 Page 70 STATUS: None; advisory only. 1.2. Title Requirement No. lI noted that OGL 10 (Lease VIII in that opinion) was amended as to the primary term. The author of the 2003 Kuhn Opinionstated that the language of the amendment effectively gives the lease a 120 -day primary term from April 21, 1977. It was the intent of the Board of County Commissioners, as stated in the minutes of a meeting, to extend the term of the lease to include a spud date of May 1, I980. Also, the County Commissioners executed a division order of record and an order of the Board approving the execution of the division order for production from the lease. The author concluded, therefore, that a claim against the validity of the lease by virtue of the incorrect term amendment could not be sustained. STATUS: None; advisory only, As noted above, the conclusions described in this Title Requirement contradict Title Requirement No. 20 from the 1980 Poulson Opinion. In part, the conclusions of the 2003 Kuhn Opinion rely on the fact that the County Commissioners executed a division order regarding production from the lease. The execution of the division order and the minutes of the Board of County Commissioners may not, however, be sufficient to avoid all challenges to the validity of the lease. Since these instruments are not described in detail, and do not appear in the Materials Examined, we restate the requirement set forth in the 1980 Poulson Opinion and described above. 13. Title Requirement No. 12 stated that the previous examiner noted that there was considerable confusion in land descriptions and acreage figures attributable to the various tracts in the SW/4. The author presumed that this matter. has been resolved by acceptance (4 -payments in the past, execution of division orders, and other correspondence. The author stated, however, that if you encountered questions regarding the land descriptions you should contact the author for possible further requirements. STATUS: None; advisory only. In this regard see Additional Title Comment and Requirement No. 3. 14, Title Requirement No. 13 noted that the 198.0 Poulson Opinion stated that OGL 7 was a replacement of a lease that was burdened by overriding royalties totaling 4.25% owned by Martin J. Freedman and Thomas Vessels. The Title Requirement stated that the interests tabulated in the 2003 Kuhn Opinion did not include the overrides from the predecessor lease and included only those overrides of record in the current OGL 7. See our discussion above of Title Requirement No. 7 from the 1979 Poulson Opinion. The remainder of the requirement addressed Hello