HomeMy WebLinkAbout20131421.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/2 COVERING 320 ACRES, M/L OF THE I -
SAND FORMATION
329452
1105377
GREER 24-28 JSND
All Products
NOT APPLICABLE APR2 Q JOt3
WELD/ CO
9/1/2011 WELD COUNTY
RV37471504 - WELD COUTOOML, 4„ NERQ
0.00295599 / 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)
At teat` "°"°-
RV37471504
WELD COUNTY COLORADO
C/O BOARD 9F COUNTY COMMIS
Cler to` the B. ard, Owner Signature/Corporate Title
B :✓/�
Deputy Cl
Wit
(0-10-l3
William F. Garcia, Chair
ard Owner Signature/Corporate Title
JUN 1 0 2613
*Tax ID # XXX-XX-0813
**Tax ID #
1150 0 St P.O. Box 758
Owner Address (if different from above)
Greeley CO 80632
City, State Zip Code
970-356-4000
Owner Daytime Phone
2013-1421
00057-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
mor-70t;
Date Prepared: April 22, 2013
Prepared by: KP
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:
Greer (8 wells)
Stephanie Arries
Assistant County Attorney
File Location(s): LE0057-2
DATE: g-217- /.?
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.D. Box 7581 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.Petrossanadarko.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: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,
1
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.
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.
Tammy Waters
Deputy Clerk to the Board
1150 O Street'P.O. Box 758/Greeley, CO 80632
₹el: (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
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 7581 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 978, Pages
343 and 344, to the extent such
parcels are located in the SW/4
1.16 acres, more or less
Oil and Gas Lease No.
Weld County, Colorado 100.000000% 132
Oil and Gas Leasehold Lease No.
Kerr-McGee Oil & Gas Onshore, LP 100.000000% 132
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
1
Si- i, .y
u... 1 too _
896
6e)
r,
p FEB 2 1 1980
Recorded at ..._.._ ._..__....__, o'clock !
a'
1817667
Co•
State of Colorado, Weld County Clerk Cr Recorder,
EXTENSION AND AMENDMENT OF OIL AND GAS LEASE
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 respectiveinterest,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;
WITNESSETHo-
WHEREAS, Lessor and Lesseeeachown 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 ofcenter 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.
(028 96 7
When recorded return to
AMOCO PRODUCTION COMPAam,
SECURITY LIFE WILDING
DENVER. COTORADO SDEOR
v°0 896
•
191966'7
4 -2 -
and
Section 28: A tract ,of landcommencingat 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 8l 0l '
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 & Quihcy
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 substitutetherefor the following:
"Subject to the -further provisions hereof, this lease
shall remain in forcefor 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 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
•
Mien recorded Totem to
AMOCO PRODUCTION COMPANI
WcURIIY IIR WINING
oaMJe4 mimeo eon.
1°.'896
•
1817667
t43
drilling of a well for oilor 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 �-ry�
ATTEST: /r
Weld County. Clerk and
a . Clerk to the B
STATE OP COLORADO
COUNTY OF DENVER
Recorder
: SS.
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.
�J)7By: St,
Norman Carlson, Chairman
COLORADO
Th regoing instrument was acknowledged before me
19771 , by F.J.MIRF
in Fact for AMOCO PRODUCTION COMPANY.
;..'WITNESS my hand and official
V. On,.'•.
H 1?)...
A. UeL\C . s
% dy.,commissioa[:expires:
''•ry1y Co nrr**h tiipais June 3, 1881
seal.
this c4
day of
, Attorney
Notary Public
Security Life Building
Denver, Colorado 80202
Notary Public •
1
When TeSded Mum to
AMOCO PRODUCTION COMPANt
SKURITV Lift BUILDING
UNDER, co,ouoo a x9 •
I - - 896 1817667
t.i3
drilling of 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 inferes* of tha Tnccnr in_eaiai nAn ”nnn 4-h. t ,.t onna4
vtO c-rrinn VArNN
:. 31.1 ; nn?%
CNN' ciV4O30ai
g°°K896
1617667
4
Amoco Production Company
lta Attorney in tact
Tli, foregoing instrument was acknowledged before me this .L&
_',day of 1979, by Norman Carlson, Chairman of the Board of County
.:C,Rmpeabsioners of Weld County, Colorado
".t-" t My commission expires
PU Witness my hand and official seal.
r
The foregoing instrument was
day of , 1979, by
My commission expires , 19
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:%flai. LL.
Weld County Clerk and Recorder
and -Clerk to the and
/)
County Attorney
Ad -
BOARD OF COUNTY COMMISSIONERS
LD, COUNTY, COLORADO
DATE PRESENTED: MAY 2, 1979
790003
Recorded at
11'� _441v1AY 31 1979
o'clock eA_-._._..__._
BOOK
870
Rec. No.
State of Colorado, Weld County Clerk G 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
Dula.
870
1'792203
drilling of a well for oil or gas, including building of roads, pre-
paration cof 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: `IYIc...^6,,.,.,-.Te%
Weld County Clerk and Recorder
and -Clark to the B.a
\
B
\D-.uty County C=rk
LESSEE
Amoco Production Company
By: 4-21-
_.ttorney in Fool
STATE OF COLORADO
. SS.
COUNTY OF DENVER
/777%
Thj foregoing instrument was acknowledged before me this f� day of
/(ar, , 19 ,2 by F. J. , Attorney
in Fact fotY 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: (:...�
COLORADO
Norman Carlson, Chairman
Michael T. Sullivan
Landman
Amoco Production Company
Security Life Building
Denver. Colorado 80202
303-820-4496-0ffice
303 - 693 -0855 -Residence
TAITNO .my hand
` 4" •'R DTAR
al 4
T.; ;i'°Uf3LtC;,
and official seal.
Onexp:
%J�ijlcoDunissf dyer ires:
MgOorp1aVl;Fl4f ,fix4es June 3, YSul
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
WHEREAS, 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:
Weld County Clerk and Recorder
a.. Clerk to the B
puty Count
CP'^D AS TO FORM:
OY� O
County Attorney
BOARD OF COUNTY COMMISSIONERS
LD COUNTY, COLORADO
g
Ffir.h,eiC £. r:k
790006
009 7
i//.
DATE PRESENTED: MAY 2, 1979
APPROVAA AS TO FORM:
unty At o`fney
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 J -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.
�/q� ADO
BOARD OF COUNTY COMMISSIONERS
ATTEST:c "'w�' WELD COUNTY, COLORADO
`/'vg-r"
Weld County Clerk and Recorder
axyd-_Clerk to the Boa 3 /� _ , __ /%,4
/
Deputy County lerk
eerk- g 1 /A
/ 14 /
Div W-7 .2,14 ,e
790005
DATE PRESENTED: APRIL 25, 1979
Richard N. Dodge
Independent Landman
536 Empire Building
430 16th Street
Denver, Colorado 80202
April 23, 1979
Board of County Commissioners
Weld County, Colorado
Office: 303 893-0264
Res: 303 420-0273
RE: Extension of Oil and Gas Lease held by Amoco Production
Company on 17.53 acres of land in SW4 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,
niat,„
Richard N. Dodg
e
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/45W/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 1e 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
1
From: Tammy Waters fmailto:twaters@co.weld.co.usl
Sent: Friday, June 28, 201.3 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 Tamm
Well Name
Property #
Venture
TRS
Spacing
1st Production
Spud
GREER 13-28 JSND
1105375
329450
2N -64W-28
W
9/24/2005
8/14/2005
GREER13-28CODL
1105376
329451
2N -64W-28
W/SW
6/18/2008
GREER14-28JSND
1105373
329448
2N -64W-28
W
1/28/2005
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.aso
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
You may select multiple
Facility Types by holding down
the Ctrl key while clicking.
County Code: Sequence Code:
;, Name Number
;a: Name Number
Qtrqtr 28 Sec 2N Twp
5.000 Records
:d? Name 0 Number
54W Range
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 jmailto:twatersOco.weld.co.usl
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@alanadarko.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
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
1/28/2005
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: httr://oil-gas.state.co.us/cogis/FacilitySearch.aso
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
You may select multiple
Facility Types by holding down
the Ctrl key while clicking.
(/zi6.83
3 S"
/72•%/
3 43
/lo/. 409
o/0/. go
94199
pynt5IRayailles
Rjce iv t /07//- 343
County Code: Sequence Code:
Name O Number
(a, Name 0 Number
Qtrgtr 28
5,000 Records
Sec 2N Twp 64W Range
Name r_ Number
V Caution: COCAS contains tens of thousands of records!
KMG took over operations in October of 2011, 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 I. 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 Dishier
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 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
3
LEGAL DESCRI PTICN.
R64 T2N Sec 28
Tract of land lying within boundaries
of NWT:
LEASE ND.
ERPIRES
DEED
NUMBER
ASSESSED
VAL%ATI OR'
CERTIEI,
MA4DER
RECORDED
GDDR
PAC£
DATE
9c,9 9
�O
ii -/11-31
MIMERAL O PROPERTYD
F D•0 5.74
DATE
LESSEE - REMARKS
PAID TO (DATE)
RECEIPT NO.
AN
1955
Campbell R
1956
1956
Nebraska Drilling Inc
1957
ri
AO
1970
LS (31111,22) Exps 4/29/75
<
Vance,
'71/ 17:5
r
/ G'e..ilc.d ' 'i :'o,`,�' : ite,E-e:, ay/j�. �=p:1-`rS�V
---
::%•
I
-� '._4. �<� , . ". /I•_....:2,4'7 -:.x--,...'
_
f;, -.
_
/�
F
, 5-./-e,x''77
.. - i
�'�' -�' ' j
,.-.
-,
LO ATION JAh r•FEB WR
R64T2N Seca NW ': Ptn I
I Ai RAY {
I {u:( `
JUL I D15 I =FP ' OCT{
NOY
k
F- JONATHAN D. T.TORNEHOJ, LLO
Atrorncyr at Law
May 15, 2012
DRILLING AND DIVISION ORDER TITLE OPINION
EnCana Oil & Gas (USA) Inc,
370 17'i Street, Suite 1700
Denver, Colorado 80202
Attention: Jack Croom, CPL
This opinion is provided to you as a courtesy only, and your
used, or reliance upon, it is at your sole risk. You agree
not to disseminate It. It is understood and agreed, as
evidenced by your acceptance of this oplabn, that EnCana
Oil rI Gas psA) Inc. Is no way liable to any person, firm or
corporation for any loss or incomrenienceoccasloned by the
use of, or reliance upon, this op pion.
Re: Welt Name: Gunter 2A -30H and Out -tier 2B -30H Wells
Township__2 North, Ranrxe 64 West, 6th P.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 its Weld County, Colorado (the "Subject Lands"), for
drilling and division order purposes, and give you our opinion thereon as follows:
DESCRIPTION
Township 2 North, Ran1ze.64 West. 6`l' P.M.
Section 30: W/2
Section 31: NW/4
containing 452.72 acres, more or less
As to the Niobrara Formation
Notes For purposes of this Opinion 'we have divided the Subject Lands into the thirteen tracts
described below,'
Where the tract descriptions rely on Recorded Exemptions ptions that were included in the ivlalerials Examined we
have attached those instruments as Schedule ill for your convenience.
437 MAX24 5TRE , • IjONcMONT 00 80501
Put, ism 303.e82.2351 • w\s .Jtr'ENE RGcom
EnCana Oil & Gas (USA) Inc.
May 15, 2012
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 OGL,
Heirs/Devisees of Dorothy E. Hartshorn 6.250000% 5
George 13. Walters 3.125000% 9
Steven Dale Walters 3. I25000% 9
Overriding Royalty Interest
EnCana Oil & Gas (USA) Inc. 3.000000% 5,9
Working Interest WI NRI OGL
EnC,ana Oil & Gas (USA) Inc. 100.000000% 84.500000% 5,9
Tract 13
Township 2 North, Range 64 West, 6" 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 and Associated Hydrocarbons
50.000000%
50.000000%
OGL
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
Working Interest WI NRI OGL
EnCana Oil & Gas (USA) Inc. 100.000000% 70.000000% 10
TAXES
In 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. 15813£56 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 % of the minerals underlying
Tract 8, to secure a principal indebtedness of $18,000.00, 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 It. 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
parties in possession or 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 REOUIREMENTS 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
III in 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. Graybill and Shirley Graybill 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 ieasehoid 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, In, 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.. Yon 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 10 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. The authors of the 1980 Poulson Opinion
stated that the only way to reach the conclusion that the lease was extended beyond the spud date
'Z Below we 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 that the 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 .11 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 royalty 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 Sr. 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, P.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 wilt 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 M.
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. 18361 52.
EnCana Oil & Gas (USA) Inc.
May 15, 2012
Page 70
STATUS: None; advisory only.
1.2. Title Requirement No. l..l noted that OGL 10 (Lease VIII in that opinion) was
amended as to the primary term.. The author of the 2003 Kuhn Opinion, stated 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, 1980. 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 SVV/4. The author presumed that this matter has been resolved by acceptance of 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 sec Additional Title Comment
and Requirement No. 3.
IA. Title Requirement No. 13 noted that the 1.98.0 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