HomeMy WebLinkAbout20130835.tiffNADOA Model Form Division Order (Adopted 9/952
Return To:
Property Name :
Operator :
County / Parish and State :
Property Description :
Product :
NOBLE ENERGY, INC
1625 BROADWAY STE 2200
DENVER CO 80202 US
BALL RANCH AC04-72HN NI
NOBLE ENERGY, INC
WELD, CO
Refer to next page for property description attachment
ALL
DIVISION ORDER
Desk Code : MPP
Date : JAN 17 2013
Effective Date: SEP 2012
RECEIVED
JAN 3 1 2C:3
WELD COUNTY
COMMI
S O�VFRC
127215
OWNER NAME
PROPERTY #
OWNER #
INTEREST
WELD COUNTY COLORADO
% BOARD OF COUNTY COMMISSIONER
WELD COUNTY CENTENNIAL CENTER
P O BOX 758
GREELEY CO 80632 US
435824243
124102 - 8
0.09984399 RI
The undersigned certifies the ownership of their decimal interest in production or proceeds as described above payable by Noble Energy, Inc. (Noble).
Noble shall be notified, in writing of any change in ownership decimal interest, or payment address. Ail such changes shall be effective the first day of the month
following receipt of such notice.
Noble 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 Noble any amount attributable to an interest to which the undersigned is not entitled.
Noble may accrue proceeds until the total amount equals $25.00, or clear ALL payable proceeds in January of each year, 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 Noble may have certain statutory rights under the laws of the state in which the
property is located.
Special Clauses:
Owner(s) Signature(s):
Owner(s) Tax I.D. Number(s):
TIN(s) or SSN(s)
Owner Daytime Telephone/Fax #:
Address Correction :
84-6000-813
970-336-7204
Douglas Rademacher, Chair Pro-Tem
APR 0 12013
970-352-0242
Federal Law requires you to furnish your Social Security or Taxpayer, Identification Number. Failure to comply will result in tax withholding in accordance with
federal law, which will not be refundable by Payor.
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2013-0835
NOBLE ENERGY, INC. Property Description Attachment
Property Name : BALL RANCH AC04-72HN NI
Operator : NOBLE ENERGY, INC
County / Parish and State WELD, CO
Property Description
T7N R6311/ SEC 4: E2E2, CONTAINING 160.25 ACRES MORE OR LESS, WELD COUNTY, CO
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.
Assittant County Attorney
Date of signature: 2
Additional Comments:
Ro viAcoq
(,-00s\
Calculations for Oil and Gas Royalties
L File LE -0051
Leased Area Description: Sec 4, T7N, R63W S 1/2
Acres: 320
Division Order Prop Description: Sec 4, T7N, R63W, E2E2
Acres: 160.25
Interest calculated: 09984399
Calculation: 160.25/320 = .05007812
1-.05007812 = .04992188
.04992188 X.2 = .0998437
.0998437 X .5 = .0411218?????
Question: The drill area of 160.25 acres and the leased area only overlap for about 80 acres (the
E1/2 of the SE4). Shouldn't the calculation reflect that? And be reduced by about half— as in the
highlighted line??— Why is the County's calculated interest .09984399?
2. File LE -0288
Leased Area Description: Sec 9, T6N, R63W, El /21 /2S W 1 /4
Acres: 1.36
Leased Area Description: Sec 9, T6N, R63W, W1/2SW1/4
Acres: 2.69
Tot Acres: 4.05
Division Order Prop Description: Sec 9, T6N, R63W, E2SW4
Acres: 79.685
Net Royalty Interest calculated: .341344
Question: - Where did the .341344 come from???
3. File LE -0029
Leased Area Description: Sec 17, T8N, R63W NW 1/4
Acres: 160
Division Order Prop Description: Sec 4, T7N, R63W, W2
Acres: 322.89
Interest calculated: .10014556
Refer to the second Division Order attachment for the last 2 questions
SPACING
T7N R83W SEC 3: N2N2
CONTAINING 182.47 ACRES
MORE OR LESS
TIN R83W SEC 4: E2E2
CONTAINING 160.25 ACRES
MORE OR LESS,
TIN R83W SEC 15: 52N2,
N2S2 CONTAINING 325.11
ACRES MORE OR LESS
TON R63W SEC 9: E2SW
CONTAINING 79.685 ACRES
MORE OR LESS
T5N R65W SEC 1: W2SW, SEC
2: E2SE CONTAINING 160
ACRES MORE OR LESS
T4N R66W SEC 4: NWNW,
SEC 5: NENE; T5N R86W SEC
32: SESE, SEC 33 SWSW
CONTAINING 159.448 ACRES
MORE OR LESS
T7N R83W SEC 12: 5252
CONTAINING 158.3 ACRES
MORE OR LESS
T7N R63W SEC 5: 52N2 N2S2
CONTAINING 322.42 ACRSE
MORE OR LESS
TIN R63W SEC 6: E2W2 W2E2
CONTAINING 308.49 ACRES
MORE OR LESS
T8N R83W SEC 17: W2
CONTAINING 322.89 ACRES
MORE OR LESS
T7N R63W SEC 9: 52N2 N252
CONTAINING 320 ACRES
0480 3/10/2012 4/26/2012 MORE OR LESS
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MARTIN, BODE,
WERNER & MANN, PLLC
ATTORNEYS AT LAW
HALBOUTY CENTER
5100 WESTHEIMER ROAD, SUITE 140
HOUSTON, TEXAS 77056
www.mbwlawfirm.com
office: 713-968-9215
fax: 713-968-9216
LICENSED IN TEXAS, COLORADO, NORTH DAKOTA, OKLAHOMA, LOUISIANA, PENNSYLVANIA AND OHIO
HOWARD E. MARTIN •
JOHN BODE
KEITH B. WERNER
BRONSON MANN *
ARTHUR T. MOORE
ANGELA L. MOORE
JO ANN ROTHFELDER
M. CRAIG HANNA
JASON McDONALD
KRISTIN LEE
'Board Certified Oil, Gar and Mneal Law, TBLS
Mr. Eric Koble
Noble Energy, Inc.
1625 Broadway, Suite 2200
Denver, Colorado 80202
ISSA TANNOUS
MATTHEW COTTER
J. KYLE WILLIAMS
H. JOHN CHAKALES
AMY C. KLAM
CHRISTOPHER T. SHANNON
BRETT W. ARNOLD
VINCENT VU
BOBBY J. DOTY
ANDREW J. WALKER
JOSIAH D. MCLEOD
May 10, 2012
CHAD M. KELL
RYAN COWGILL
EVAN H. BLOCK
Of Counsel: SHIRLEE MITCHELL
AGNES ADAMS
LYNN C. WOODS, JR.•
MONTY "CUTTER" PRITCHETT
J.C. "JAY" WILKINSON, III
MICHAEL I. RAVEN
Writer's email: smitchell@mbwlawfirm.com
Re: Revised Drilling and Division Order Title Opinion
Ball Ranch AC04-72HN Well
T7N, R63W, 6th P.M.
Section 4: E/2E/2
Weld County, Colorado
REVISED DRILLING AND DIVISION ORDER TITLE OPINION
covering
Township 7 North, Range 63 West, 6th P.M.
Section 4: E/2E/2
LIMITED TO THE NIOBRARA FORMATION
Containing 160.25 acres, ±
Weld County, Colorado
Referred to herein as the "Captioned Land"
This Opinion revises Drilling and Division Order Tide Opinion dated March 22, 2012, based on additional information
provided by Noble subsequent to March 22, 2012.
2032-01192 Page 1
Subject Lease C ("Weld County Lease")
Date: December 28, 2009 C^rL
Recording Info: Reception No. 3670490
Date Recorded: January 15, 2010
Lessor: Weld County
Lessee: Hannon & Associates, Inc.
Interest Covered: 100.0% interest in Tracts 3 and 4 of the Captioned Land
ASSIGNMENTS OF OIL AND GAS LEASES
See Exhibit B for a full description of the Assignments identified in the Materials Examined
and reviewed by the examining attorney.
ENCUMBRANCES
See Exhibit C for a listing of the Encumbrances identified and reviewed by the examining
attorney. For a full description of the Encumbrances see the instrument identified in the Title
Abstract listed in the Materials Examined.
EXCEPTIONS
Data Examined: This Opinion is based upon the Materials Examined, set forth above. The
Division of Interest and Requirements set forth herein were prepared, in part, by an
examination of the Title Abstract prepared by landmen who examined the title documents in
the Office of the Clerk and Recorder of Weld County, and the index records of Heritage Title
Company in Greeley, Colorado. The Title Abstract submitted to the examining attorney and
made a basis for examination contain chronological listings of documents that affect title to the
respective tracts for the period of time stated in each, along with a brief caption describing the
nature of the document. The examining attorney does not assume responsibility for facts or
opinions expressed in the Title Abstract relied upon for and used as a basis for this
examination.
The examining attorney notes that the Title Abstract purports to reflect only the instruments
indexed against rural tracts of land and do not purport to include documents that pertain to any
2032-01192 Page 4
subdivisions that may be located within rural tracts of land. The examining attorney does not
assume responsibility for any title defects or other complications arising from this limitation of
the Materials Examined.
No Opinion: The examining attorney can express no opinion as to the following: railroad
and/or other rights -of -way or claims not reflected in the data examined, the existence of which
may be determined by physical inspection of the Captioned Land; possessory rights and
discrepancies of survey or location that may be reflected by physical examination of the
Captioned Land; zoning or other land use controls; pending litigation not reflected by a
recorded notice of lis pendens; matters not disclosed in the tract or grantor/grantee index
maintained by the County Clerk and Recorder; matters not disclosed in the tract index of a
certified abstract company upon which the examining attorney has been authorized to rely for
purposes of this Opinion; matters not disclosed in an abstract prepared by a third party upon
which the examining attorney has been instructed and/or authorized to rely for purposes of this
Opinion; matters upon which the examining attorney has been instructed and/or authorized to
rely for purposes of this Opinion; matters that vary from presumptions of facts or prima facie
evidence of facts established by statute; matters within the scope of exceptions to abstract
coverage; proceedings which by statute are privileged and not open to public inspection; the
allocation of post -production costs under the Subject Leases and any other applicable
instruments in the chain of title; taxes on oil, gas and other leasehold estates listed separately
from the taxes on the surface or mineral rights, including taxes assessed by special districts;
adverse rights or defects unknown to the examining attorney but of which Noble has actual
knowledge of or which the law may presume Noble has knowledge; matters concerning
whether there is a right of access to the Captioned Land from a public road; all financing
statements and other documents reflecting security interest in crops or fixtures; and mechanic's
liens, judgment liens, or other statutory liens not reflected by the Materials Examined.
Title to Easements and Rights -of -Way Subsequent to the Date of the Instrument: In the
interest of efficiency, this Opinion does not cover matters affecting title to easements and
rights -of -way subsequent to the date of the instrument granting same.
Reliance by Third Parties: This Opinion and its contents are prepared exclusively for Noble
Energy, Inc. Martin, Bode, Werner & Mann, PLLC is not liable for the reliance by any third
party on the information contained herein. Furthermore, this Opinion is being provided in an
electronic format at the request of Noble. However, the original, signed document is the only
sanctioned version of this Opinion.
Comments and Requirements: This Opinion contains Comments and Requirements
including: General and Advisory Comments and Requirements; Comments and Requirements
made by the examining attorney based on the Materials Examined, individually referred to
herein as "Comment" and "Requirement" followed by a number.
2032-01192 Page 5
iii) A unit for a gas well or a horizontal completion shall
not exceed 640 acres plus 10% tolerance
Subject Lease C ("Weld County Lease")
Date: January 15, 2010
Recording Info: Reception No. 3670490
Date Recorded: December 28, 2009
Lessor: Weld County, Colorado
Lessee: Hannon & Associates, Inc.
Lands Described: T7N, R63W, 6th P.M.
Section 4: S/2
Subject Tracts:
Primary Term:
Rentals:
Containing 320.0 acres, ±
Weld County, Colorado
Tracts 3 and 4 of the Captioned Land
Three (3) years
One Dollar ($1.00) per acre, paid during the remaining
life of the Lease, annually, in advance, on or before each
anniversary date
Royalty: 20.0%
Shut -In Royalty:
If Lessee shall complete a well on the leased land
productive of gas and Lessee is unable to produce such
gas due to lack of a suitable market Lessee shall pay or
tender, beginning on the anniversary date next of the year
of an extension of the Subject Lease by reason of a shut-in
well, as royalty Two Dollars ($2.00) per year per acre of
the lease per annum in addition to the annual rental.
The minimum amount of such shut-in royalty payment
shall be $240.00. Each year's shut-in royalty shall be
forfeited to lessor except for the shut-in royalty paid for
the year during which the well begins production. The
maximum extension of the lease due to the existence of a
shut-in well shall be five (5) years beyond the extension
term.
2032-01192 B-4
Entireties Clause:
Lesser Interest Clause:
Pooling Clause:
Special Provisions:
None
Yes
Lessee may at any time or times pool any part or all of
said land or lease or any stratum or strata with other lands
and leases, stratum or strata, in the same field so as to
constitute a spacing unit to facilitate an orderly or uniform
well spacing pattern, or to comply with any order, rule or
regulation of the State or Federal regulatory or
conservation agency having jurisdiction
Paragraph 9
Lessee may assign upon the prior written consent of lessor
its entire leasehold interest, in all or part of the land
covered hereby, but not less however than contiguous
tracts of 40 acres or Governmental lot corresponding to a
quarter -quarter section for any partial assignment
Paragraph 10
Any and all reservations or assignments of overriding
royalties shall be subject to approval by the Lessor. The
total of said overriding royalties shall not exceed 5%
Paragraph 24
If Lessee fails to make a discovery during the primary
term of this lease, Lessee may make written application
for an extension of this lease, such extension being at the
sole option of the Lessor, and according to the following
conditions:
i) No extension for more than six (6) months from the
original expiration date;
ii) Lessee shall pay Lessor 1/3 of the original bonus with
a minimum bonus of Ten Dollars ($10.00) per acre;
iii) Lessee shall pay Lessor One Dollar ($1.00) per acre as
a delay rental for the term of the extension
The Assignments, Affidavits of Production, and Pooling/Unitization/Communitization
Agreements reflected in this Exhibit B concerning the Subject Leases, are those of record in
Weld County from inception to November 21, 2011, at 5:00 p.m., as indexed against the
Captioned Land, pursuant to the records of the Heritage Title Company of Greeley, Colorado.
A. Amendment/Ratification/Partial Release of Subject Leases
None
2032-01192 B-5
2.
Document:
Date:
Recording Info:
Date Recorded:
Assignor:
Assignee:
Interest Conveyed:
Ancillary Doc:
Assignment of Oil and Gas Lease
March 30, 2010
Reception No. 3754999
March 9, 2011
Hannon & Associates, Inc.
Noble Energy, Inc.
All of Assignor's right, title and interest in and to
the Weld County Lease
Letter to the Board of County Commissioners of
Weld County for approval and agreement of
assignment, recorded July 2, 2010 at Reception
No. 3703403
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