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Home My WebLink About20121341.tiff WESTERN OPERATING COMPANY 518 Seventeenth Street,Suite 200 Denver, Colorado 80202 Phone: (303)893-2438 Fax: (303)629-5735 March 13, 2012 Cam w t L 6yy.,3 cz.� g Board of County Commissioners � -- A County of Weld [,i yt 915 10th Street P. O. Box 758 Greeley, CO 80632 Attn: Esther Gesick Re: Oil and Gas Leases listed on Exhibit A of the Assignment attached to this letter Ladies and Gentlemen: Western Operating Company ("Western"), Assignor, entered into an Agreement with Rocket Resources, LLC; Genesis Investments; and Ryan C. Smith, Assignees,wherein Western agreed to assign and convey unto the Assignees, the leases listed on Exhibit A of the Assignment, attached to this letter. Under the terms of the leases, you may have the right to consent to the conveyance of these leases to the Assignees. Please execute the enclosed copy of this letter to indicate your written approval and consent to the assignment of the leases. Please return the executed copy in the envelope enclosed. If you have any questions, I can be reached at 303-893-2438 Sincerely, TING COMPANY Ste D. James President 2012-1341 Enclosure t``oav, id" :A . C C ' ovz3 Pjojci Resour --/e9 LFOOIS Page Two The Board of County Commissioners of the County of Weld approve and consent to the assignment and conveyance of the attached leases, at the meeting of the Board of County Commissioners of the County of Weld, held on May 30 , 2012. By: c - Name: Sean P. Conway ("'J Title: Chair 6/a-/3'// HMO 0111 111111 1111 111 11111 III 11111 liii liii 3751515 02/18/2011 04:09P Weld County, CO 1 of 7 R 41.00 D 0.0(1 Steve Moreno Clerk& Recorder 515 ASSIGNMENT AND BILL OF SALE KNOW ALL MEN BY THESE PRESENTS: THAT the undersigned Western Operating Company, a Colorado corporation, with an address of 518 17th Street, Suite 200, Denver, CO 80202, ("Assignor"), for the payment of One Hundred Dollars ($100.00) and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged and subject to the terms and conditions hereof, hereby grants, sells, assigns, and conveys to the parties named below ("Assignees") in the percentages opposite their names all of Assignor's right, title and interest in and to the following (collectively, the "Oil and Gas Properties"): ASSIGNEE: INTEREST: Rocket Resources, LLC 50.00% 12660 WCR 74 Eaton, CO 80615 Genesis Investments 45.00% 12706 Shiloh Rd Greeley, CO 80631 Ryan C. Smith 5.00% 12706 Shiloh Rd Greeley, CO 80631 100.00% a. The producing, non-producing, and shut-in oil and gas wells (the "Wells"), located in Weld County, Colorado further described in Exhibit "A" attached hereto and made a part hereof; b. The equipment, facilities, materials, tubing, fixtures, and personal property of whatsoever nature, as is, (the "Equipment"), but limited to that Equipment located on the Lands described in Exhibit "A" as of 7:00 a.m. local time January 1, 2011; c. All of Assignors' interest, including all of Assignors' 100% working interest, non- consenting working interest, operating rights, overriding royalty, rights to convert overriding royalty interests, rights of assignment and reassignment and any other interests in the lands (the "Lands") and the oil and gas leases (the "Leases") described on Exhibit "A" attached hereto and made a part hereof; e. Contracts and agreements (the "Contracts") that benefit or burden the Lands, Leases or other interests conveyed hereby including, but not limited to, operating 11111111111111111111111 lIlt 111111111111111111IIII IIII 3751515 02/18/2011 04:09P Weld County, CO 2 of 7 R 41.00 D 0.00 Steve Moreno Clerk& Recorder agreements, pooling agreements, declarations of pooling or unitization, orders and decisions of state and federal regulatory authorities establishing drilling, spacing, proration and other units, farmout agreements, rights-of-way, easements, permits, licenses, surface agreements, assignments, sale contracts, or processing contracts, balancing agreements, excluding, however, the Contracts which, by their own terms, are not transferable; It is the further understanding and agreement of Assignor and Assignee that: 1. Both parties agree that Assignee will file this Assignment and Bill of Sale of record in the real property records of the Clerk and Recorder, Weld County, Colorado and promptly furnish Assignors with a copy of the recorded documents. 2. This assignment is limited to the strata from the top of the Cretaceous D Sand and below only. Assignor retains all rights from the surface to the Cretaceous D Sand top. 3. Assignor and Assignees agree that Assignor shall be responsible for taxes incurred before the effective date and that Assignees will be responsible for taxes incurred after the effective date. Assignor agrees to pay Assignees within thirty (30) days of billing for taxes billed to Assignee for taxes due from Assignors time of ownership. 4. Assignees hereby agree that they have inspected the Wells, personal property and equipment assigned herein and accepts the same in their present condition and state of repair "AS IS" and "WITH ALL FAULTS". 5. Assignor will, at any time and from time to time after the date hereof, upon Assignee's' request, execute, acknowledge and deliver or cause to be executed and deliver, all further documents or instruments necessary to affect the transaction embodied in this Agreement, Assignment and Bill of Sale. ASSIGNEES ACKNOWLEDGES THAT ASSIGNOR EXPRESSLY DISCLAIMS AND MAKES NO OTHER REPRESENTATION OR WARRANTIES AS TO ASSIGNOR'S TITLE TO THE WELLS OR OTHER INTERESTS ASSIGNED HEREBY, OR AS TO ANY OTHER INFORMATION, DATA OR OTHER MATERIALS, WRITTEN OR ORAL, FURNISHED TO ASSIGNEES BY OR ON BEHALF OF ASSIGNOR, INCLUDING, WITHOUT LIMITATION, THE EXISTENCE OR EXTENT OF OIL, GAS OR OTHER MINERAL RESERVES, THE RECOVERABILITY OF OR THE COST OF RECOVERING ANY SUCH RESERVES, THE VALUE OF SUCH RESERVES, ANY PRODUCTION PRICING ASSUMPTION, PRESENT OR PAST PRODUCTION RATES, COMPLIANCE WITH LEASE TERMS, THE CONDITION OF ANY WELL, AND THE ABILITY TO SELL OIL OR GAS PRODUCTION AFTER CLOSING. IN ENTERING INTO AND PERFORMING THIS AGREEMENT, ASSIGNMENT AND BILL OF SALE, ASSIGNEES HAVE RELIED SOLELY UPON THEIR INDEPENDENT INVESTIGATION OF, AND JUDGMENT WITH RESPECT TO, THE WELLS, THEIR VALUE, AND ASSIGNORS' TITLE THERETO. 2 111111 IEII 111111 lull 11111 MIII Milli 11111 IIII viii 3751515 02/18/2011 04:09P Weld County, CO 3 of 7 R 41.00 0 0.00 Steve Moreno Clerk& Recorder As of the Effective Date upon closing of this transaction, Assignees shall take possession of the Oil and Gas Properties sold and assigned hereby and shall take over custody, responsibility and control of all accounting, Lease maintenance, and other functions relating to the interests assigned hereby. Assignor shall retain control of all suspended funds accrued to the Wells prior to the Effective Date. To have and to hold the same unto Assignee, their successors and assigns forever. Executed this //day of February, 2011, but Effective January 1, 2011. Assignor: Assignees: Western Operating Company CuljAhij t e , resident - Christopher R. Smith, Manager Rocket Resources, LLC Glenn . Smith, Manager Genesis Investments . Ran C. Smith 3 1111111 11111 111111 11111 11111 111111 III III 1111111111111 3751515 02/18/2011 04:09P Weld County, CO 4 of 7 R 41.00 0 0.00 Steve Moreno Clerk& Recorder ACKNOWLEDGEMENTS STATE OF COLORADO ) SS: �� COUNTY OF aQA1Lph ) The foregoing instrument was acknowledged before me this February 16 , 2011, by Steve James,as President of Western Operating Company, a Colorado corporation. My commission expires: alMic20 is ,.-cp. E. /?'La ioid 4!:..*tixWary Public sTgp a. AU B \G POO F 0W C OLOP STATE OF COLORADO ) • ,sue`` SS: My Commission Expires 02/15/2012 COUNTY OF (,41e,LD ) 1 The foregoing instrument was acknowledged before me this February /7, 2011, by Christopher R. Smith, Manager, Rocket Resources, LLC. My commission expires: )I i iteba 1l s etas.. Notary Public 'O tic..•,A \ UB�-•G••PO "r€of co\-OP STATE OF COLORADO ) "' SS: COUNTY OF Wet. ) 14 The foregoing instrument was acknowledged before me this February 17 72011, by Glenn S. Smith,Manager, Genesis Investments. My commission expires: \ .s BAILFy Il il to/?vl'{ ::�o Y •. 4 • `SV G , o I AUB\,\.,.PPO O OCO\ 1111111111111111111111111111 1 1 1 1 1 1 111111111111111111111 3751515 02/18/2011 04:09P Weld County, CO 5 of 7 R 41.00 0 0.00 Steve Moreno Clerk 8 Recorder Notary Public STATE OF COLORADO ) �^ . ) SS: COUNTY OF C II&Ii ) The foregoing instrument was acknowledged before me this February�,2011, by Ryan C. Smith. My commission expires: S-5-z())7 • LORI Notary Public NICHOLS icz qTF• ••••' �Q CO- My Comm.Fxp.05.05.2012 • 11111111111111111111111 IIIII �II 6111 IH IIIII Ifll 1111 3751515 02/18/2011 04:09P Weld County, CO 6 of 7 R 41 .00 D 0.00 Steve Moreno Clerk & Recorder Exhibit "A" Attached to and made a part of that certain Assignment from Western Operating Company, Assignor to Rocket Resources , LLC et al , Assignees. WELLS AND LEASES Schettler #12-24 Well Locations: Township 6 North 61 West Schettler #12-24 Section 24: NW/4 SW/4 Weld County, Colorado Lease Description : 1 . Oil and Gas Lease dated February 11 , 2003, between William D. Schettler, Life Tennant, Lessor, and Walsh Production , Inc. , Lessee, recorded in Reception 3041332 , covering the N/2 SW/4 and SE/4 NW/4 of Section 24, Township 6 North , Range 61 West, Weld County, Colorado, but limited to NW/4 SW/4 Section 24, Township 6 North , Range 61 West only and limited to the top of the Cretaceous D Sand and below. 2 . Oil and Gas Lease dated February 11 , 2003, between John D. Schettler, Life Tennant, Lessor, and Walsh Production , Inc. , Lessee, recorded in Reception 3041332 , covering the N/2 SW/4 and SE/4 NW/4 of Section 24, Township 6 North , Range 61 West, Weld County, Colorado, but limited to NW/4 SW/4 Section 24, Township 6 North, Range 61 West only and limited to the top of the Cretaceous D Sand and below. Weld Weitzel 5-33 and 11 -33 Well Locations : Township 7 North 60 West Weld Weitzel 5-33 Section 33: SW/4NW/4 Weld County, Colorado Township 7 North 60 West Weld Weitzel 11 -33 Section 33: NE/4SW/4 Weld County, Colorado 6 11111 111 Olt 11111 1111 111111 HIM BUM IIII 3751515 02/18/2011 04:09P Weld County, CO Lease Description: 7 of 7 R 41.00 D 0.00 Steve Moreno Clerk S Recorder 1. Oil and Gas Lease dated July 23, 1986, between Weld County, Colorado, Lessor, and Walsh Production, Inc., Lessee, recorded in Book 1121 at Reception 02062531, covering the W/2 of Section 33, Township 7 North, Range 60 West, Weld County, Colorado, but limited to SW/4 NW/4 and NE/4SW/4 Section 33, Township 7 North, Range 60 West only and limited to the top of the Cretaceous D Sand and below. END OF EXHIBIT "A" 7 Esther Gesick From: mikejshotwell@aol.com Sent: Wednesday, March 14, 2012 4:15 PM To: Esther Gesick; mikejshotwell@aol.com Cc: Bruce Barker Subject: Re: Mineral Lease -W2, S33, T7N, R60W Attachments: Restatement& Declaration of the Vivion L Butler Family Trust.pdf Esther, Thanks. I believe Western has everything ready to go and will get them to you hopefully this week. Thanks again, Mike Original Message From: Esther Gesick <egesick@co.weld.co.us> To: mikejshotwell <mikejshotwell@aol.com> Cc: Bruce Barker<bbarker@co.weld.co.us>; Esther Gesick <egesick@co.weld.co.us> Sent: Wed, Mar 14, 2012 3:12 pm Subject: RE: Mineral Lease-W2, S33, T7N, R60W No, since technically the actual recorded assignments have already taken place, all of the rental payments are current, and we're retroactively getting the consent paperwork and fees cleaned up for Commissioner record purposes. I guess my disclaimer would be that they do so at their own risk, in the event the Board would take issue with anything, although I suspect that to be very unlikely. I guess for their peace of mind, the quicker they can get the three letters drafted the better, because it will only take me a week to get the signature accomplished and returned. I've copied the County Attorney on this in case he thinks otherwise. Thanks! Esther E. Gesick Deputy Clerk to the Board/Office Manager 1150 O StreetIP.O. Box 758IGreeley, CO 80632 tel: (970) 336-7215 X4226 M N 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: mikeishotwell(c aol.com fmailto:mikeishotwell aol.com] Sent: Wednesday, March 14, 2012 3:06 PM To: Esther Gesick; mikeishotwell(o.aol.com Subject: Re: Mineral Lease -W2, S33, T7N, R60W Esther, Thank you so much for all your help with this; I did read the lease again, specifically the"Rentals" paragraph and saw the "life of the lease" language; it was great to get the attorneys opinion on this as well. I have contacted Westerns office and they are completing the three assignments and will hopefully have them to you this month. 1 Question - Due you see any issues with Marathon moving forward with their pooling plans while the assignments are being completed? Thanks again, Mike Original Message From: Esther Gesick<eoesickaco.weld.co.us> To: mikejshotwell <mikeishotwell(a.aol.com> Cc: Bruce Barker<bbarkerco.weld.co.us>; Stephanie Arries <sarriest7o.co.weld.co.us>; Brad Yatabe <bvatabe(a.co.weld.co.us>; Bob <robertrwinklerxxawahoo.com>; Tonya Disney <tdisnev(c.co.weld.co.us> Sent: Mon, Mar 12, 2012 4:11 pm Subject: RE: Mineral Lease -W2, S33, T7N, R60W Mike, Please see the attached response from the County Attorney. Based on his instruction, I think all we need to do and get the three Assignments (and associated fees) to bring everything up to date and then just continue with the rentals and production royalties going forward. As follow-up to our telephone conversation last week, I've provided a written summary of the responses to your questions below. Questions- 1) In the documents you emailed is a letter dated 2/10/10 from Petro-Canada requesting approval of Assignment to Noble Energy; was this Assignment approved? (Walsh and Petro-Canada merged in 2008). Yes, by document#2010-0393, page 3, approved 2/22/2010. 2) Besides the 2011 Smith Energy $320 Annual Rental payment, is there proof of the 1987, 1988 and 1989 Annual Rental Payments being made? Also, why would a Annual Rental payment be made by Smith Energy in 2011 on producing wells? Our records reflect annual rental payments being made from the year of the original lease in 1986 through current as of 7/26/2011, which is consistent with the terms of the lease as summarized by the County Attorney in the attached e- mail. 3) Marathon Oil Company (MOC) is purchasing rights from Western Operating; What is necessary for MOC to make this Assignment right and to have the lease file complete and up-to-date?As discussed, you will be submitting three retroactive requests for"Consent to Assignment" and the associated $25 per assignment. Upon receipt, I will list them on the Consent Agenda for Chair signature and attach a copy to the recorded assignments you provided for our files. You will also be sent a fully executed original for your records. Thanks for your patience and diligence in getting all of this straightened out! Let me know if you need anything further. Esther E. Gesick Deputy Clerk to the Board/Office Manager 1150 O Street]P.O. Box 758!Greeley, CO 80632 tel: (970) 336-7215 X4226 -w .' M lt r// A sr p 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: mikeishotwelleaol.com lmailto:mikeishotwell o!?.aol.com] Sent: Tuesday, March 06, 2012 11:22 AM To: Esther Gesick; mikeishotwellaiaol.com Subject: Fwd: Mineral Lease-W2, S33, T7N, R6OW 2 Hello Esther, Hope all is well with you. Do you have time to discuss the below questions regarding the Assignment between Western and Marathon. Marathon is ready to move forward with the declaration of pooling encompassing the captioned lands and would like to have all this settled as quickly as possible. Thank you, Mike Shotwell 720-837-4969 Original Message From: mikejshotwell <mikeishotwellaaol.com> To: egesick <eaesickc co.weld.co.us>; mikejshotwell <mikeishotwellaaol.com> Sent: Wed, Jan 11, 2012 11:09 am Subject: Fwd: Mineral Lease-W2, S33, T7N, R60W Good Morning Esther, Hope this email finds you doing well! Just checking in to see if you've had time to look into this? Thanks for the update, Mike 720-837-4969 Original Message From: mikejshotwell <mikeishotwellcilaol.com> To: egesick <egesicktVco.weld.co.us>; mikejshotwell <mikeishotwell(a)aol.com> Sent: Fri, Jan 6, 2012 5:06 pm Subject: Fwd: Mineral Lease-W2, S33, T7N, R60W Hello Esther, Hope your Holidays were great! Marathon has inquired again about the status of what is needed to bring the Assignments current for Marathon - I copied an earlier email to you below for reference; Below are the wells and operators of record off of the COGCC web site for the W2 of Section 33-7N-60W; WELD WEITZEL#5-33 Operator Effective Date Termination Date 70385 - SMITH ENERGY CORP 1/1/2011 95620 - WESTERN OPERATING COMPANY 11/30/2010 1/1/2011 100322 -NOBLE ENERGY INC 3/1/2010 11/30/2010 72085 - PETRO-CANADA RESOURCES (USA) INC 12/2/2008 3/1/2010 94090 - WALSH PRODUCTION INC 1/1/1999 12/2/2008 WELD-WEITZEL#11-33 Operator Effective Date Termination Date 70385 - SMITH ENERGY CORP 1/1/2011 95620 - WESTERN OPERATING COMPANY 11/30/2010 1/1/2011 100322 -NOBLE ENERGY INC 3/1/2010 11/30/2010 3 72085 - PETRO-CANADA RESOURCES (USA) INC 12/2/2008 3/1/2010 94090 - WALSH PRODUCTION INC 1/1/1999 12/2/2008 Questions- 1) In the documents you emailed is a letter dated 2/10/10 from Petro-Canada requesting approval of Assignment to Noble Energy; was this Assignment approved? (Walsh and Petro-Canada merged in 2008). 2) Besides the 2011 Smith Energy $320 Annual Rental payment, is there proof of the 1987, 1988 and 1989 Annual Rental Payments being made? Also, why would a Annual Rental payment be made by Smith Energy in 2011 on producing wells? 3) Marathon Oil Company (MOC) is purchasing rights from Western Operating; What is necessary for MOC to make this Assignment right and to have the lease file complete and up-to-date? I've attached the Merger Doc and Assignments of record in Weld County for your review. Thanks for your help with this. Mike 720-837-4969 Original Message From: Esther Gesick<egesick(cilco.weld.co.us> To: mikejshotwell <mikeishotwellaaol.com> Sent: Tue, Dec 6, 2011 1:11 pm Subject: RE: Mineral Lease -W2, S33, T7N, R60W Mike, I received your initial e-mail but have not had time to address this matter. I'll be in touch soon. Thanks! Esther E. Gesick Deputy Clerk to the Board/Office Manager 1150 O StreetIP.O. Box 758IGreeley, CO 80632 tel: (970) 336-7215 X4226 , 84 I0 , t tO W E ib_' V NI V uC 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: mikeishotwellaaol.com lmailto:mikeishotwellaaol.com] Sent: Tuesday, December 06, 2011 1:02 PM To: Esther Gesick; mikeishotwellaol.com Subject: Fwd: Mineral Lease-W2, S33, T7N, R6OW 4 Esther, Resending this email to ensure you received it. Thanks for your reply, Mike Original Message From: mikejshotwell <mikeishotwellaaol.com> To: egesick <egesickaco.weld.co.us>; mikejshotwell <mikeishotwell(aaol.com> Sent: Thu, Dec 1, 2011 2:47 pm Subject: Re: Mineral Lease-W2, S33, T7N, R60W Esther, Below are the wells and operators of record off of the COGCC web site for the W2 of Section 33-7N-60W; WELD WEITZEL#5-33 Operator Effective Date Termination Date 70385 - SMITH ENERGY CORP 1/1/2011 95620 - WESTERN OPERATING COMPANY 11/30/2010 1/1/2011 100322 -NOBLE ENERGY INC 3/1/2010 11/30/2010 72085 - PETRO-CANADA RESOURCES (USA) INC 12/2/2008 3/1/2010 94090 - WALSH PRODUCTION INC 1/1/1999 12/2/2008 WELD-WEITZEL#11-33 Operator Effective Date Termination Date 70385 - SMITH ENERGY CORP 1/1/2011 95620 - WESTERN OPERATING COMPANY 11/30/2010 1/1/2011 100322 -NOBLE ENERGY INC 3/1/2010 11/30/2010 72085 - PETRO-CANADA RESOURCES (USA) INC 12/2/2008 3/1/2010 94090 - WALSH PRODUCTION INC 1/1/1999 12/2/2008 Questions- 1) In the documents you emailed is a letter dated 2/10/10 from Petro-Canada requesting approval of Assignment to Noble Energy; was this Assignment approved? (Walsh and Petro-Canada merged in 2008). 2) Besides the 2011 Smith Energy $320 Annual Rental payment, is there proof of the 1987, 1988 and 1989 Annual Rental Payments being made? Also, why would a Annual Rental payment be made by Smith Energy in 2011 on producing wells? 3) Marathon Oil Company (MOC) is purchasing rights from Western Operating; What is necessary for MOC to make this Assignment right and to have the lease file complete and up-to-date? I've attached the Merger Doc and Assignments of record in Weld County for your review. Thanks for your help with this. Mike 720-837-4969 s Original Message From: Esther Gesick<egesick(a co.weld.co.us> To: mikejshotwell <mikeishotwellCaaol.com> Cc: Esther Gesick <egesickaco.weld.co.us> Sent: Thu, Dec 1, 2011 1:10 pm Subject: RE: Mineral Lease -W2, S33, T7N, R60W Mike, I do not have any Assignment to Smith Energy. I show a Rental payment of$320.00 from PetroCanada on 4/2/10, a Division Order from Suncor Energy on 2/23/11, another Division Order from Smith Energy on 5/9/11, and a Rental payment from Smith Energy in the amount of$320.00 made on 7/26/11. Per the lease terms any Assignments are supposed to obtain prior consent from the Board of Commissioners and pay a $25.00 fee per lease (similar to the document#2010-0393). If the Assignment has already taken place, it would be helpful if you sent a copy to update our records, and submit the fee, so we can sign the consent to document that everything is current, although retroactively. Esther E. Gesick Deputy Clerk to the Board/Office Manager 1150 0 StreetlP.O. Box 7581 Greeley, CO 80632 tel: (970) 336-7215 X4226 IB4I )pi I W 'f U N?Y uO 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: mikeishotwell(o)aol.com (mailto:mikeishotwell(c�aol.comj Sent: Thursday, December 01, 2011 11:57 AM To: Esther Gesick Subject: Re: Mineral Lease-W2, S33, T7N, R6OW Esther, Would you happen to have proof of the Annual Rental payments being made and would you say this lease is in good standing with Weld County with all approved assignments up to the current operator, showing on the COGCC web site as Smith Energy Corp.? Thanks for your reply, Mike Original Message From: Esther Gesick<egesick at?co.weld.co.us> To: mikejshotwell <mikeishotwell(a�aol.com> Sent: Wed, Nov 30, 2011 3:25 pm Subject: Mineral Lease -W2, S33, T7N, R6OW Mike, 6 Please let me know if you need anything further. Thanks! Esther E. Gesick Deputy Clerk to the Board/Office Manager 1150 O StreetjP.O. Box 758IGreeley, CO 80632 tel: (970) 336-7215 X4226 ! Ott loll W€LO2C O0 N TY u 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. Attached Message From: Bruce Barker<bbarker rr,co.weld.co.us> To: Esther Gesick<egesickQiico.weld.co.us> Cc: Stephanie Arries<sarries@co.weld.co.us>;Brad Yatabe<byatabe rr,co.weld.co.us>;Bob Choate<bchoateAco.weld.co.us> Subject: Annual Rentals for Oil and Gas Leases Date: Mon, 12 Mar 2012 15:06:55-0600 Esther: You asked about the rentals paid over the years since initial production as to whether they should have been suspended because of production. The rentals are required to continue even if production occurs. So, as per Section 1, rentals continue and must be paid annually, and we were correct in taking the $320 per year. Bruce T. Barker, Esq. Weld County Attorney P.O. Box 758 1150 "O" Street Greeley, CO 80632 (970) 356-4000, ext. 4390 Fax: (970) 352-0242 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 attorney privileged and 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. 7 Hello