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HomeMy WebLinkAbout20121340.tiff 1625 iteBroadway 0 noble Suite 2200 . V Denver,Colorado 80202 energy Tel: 303.228.4000 WELD COUNTY Fax: 303.228.4280 ��;'�U�rt S S �� r+� 1O1"lERS 2011 HAY 18 A D O, RECEIVED May 14, 2012 Board of County Commissioners County of Weld 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: Noble Energy WyCo, LLC ("Noble"),Assignor, entered into an Agreement with Western Operating Company("Western"), Assignee, wherein Noble agreed to assign and convey unto Western,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 the 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)228-4475. Sincerely, Noble Ener yCo, 44.,/ By: Title: P. David Padgett Enclosure 2012-1340 (2-1-91,24_44 62640216-- C,"u '• C.) 1115 -b d Re U rcis SOU �oi� - I - / a 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: Name: Sean P. Conway Title: Chair RECEIPT DATE 5.--A2 -/a Na 86434 23. nn o m N RECEIVED FROM I/titiol.irn n/0ereitt n C .��'ttr/vn.� c? �o oC ADDRESS �'+ QQ c 7) o VULS1 Pie; # �/Q0 $ 75, cv ox > 3 U ° o a, FORS La,,, ar/MaMfa �(Fcxai5 tJ��2� .77tV, PI/OW) p Y m a) OOP (D HOW PAID CASH If 0 05-7/ t CHECK S15 — BY V117 n MONEY ORDER ,,?o/ -,39& 903 111111 HU 111111 III III'III Ills 3736903 12/06/2010 03:31P Weld County,CO 1 of 8 R 45.00 D 0.00 Steve Moreno Clerk& Recorder Assignment Weld County,Colorado Assignment,Bill of Sale and Conveyance This Assignment,Bill of Sale and Conveyance(the"Assignment")is effective August 1, 2010, at 7:00 a.m. Mountain Daylight Time (the "Effective Time") by and between Noble Energy WyCo, LLC, a Delaware limited liability company("Assignor"), whose address is 100 Glenborough Drive,Suite 100,Houston,Texas 77067-3610,and Western Operating Company, a Colorado corporation,whose address is 518 Seventeenth Street, Suite 200,Denver,Colorado 80202("Assignee"). For Ten Dollars and other good and valuable consideration(the receipt and sufficiency of which are hereby acknowledged). Assignor does hereby grant, bargain, sell, convey, assign, transfer, set over and deliver to Assignee all of Assignor's right, title and interest in and to the following(collectively,the"Assets"): (1) The oil and gas leases(including all leasehold estates, mineral interests,royalty interests, overriding royalty interests, net profits interests, or similar interests) specifically described in Exhibit A(the"Leases")and the lands covered thereby(the"Lands"); (2) The oil,gas,casinghead gas,coalbed methane,condensate and other gaseous and liquid hydrocarbons or any combination thereof, sulphur extracted from hydrocarbons and all other lease substances under the Leases ("Hydrocarbons") that may be produced and saved under the Leases; (3) The oil, gas, water or injection wells located on the Lands, whether producing, shut-in, or temporarily abandoned. specifically described in Exhibit B, including all of the personal property,equipment,fixtures and improvements used in connection therewith; (4) The unitization, pooling and communitization agreements, declarations, orders, and the units created thereby relating to the properties and interests described in(1)through(3) above and to the production of Hydrocarbons,if any,attributable to said properties and interests; (5) The gas gathering system and gas processing plant located in Morgan and Washington Counties, Colorado, including; (i) the real property described on Exhibit C(the "Real Property"), (ii) the pipeline rights-of-way and easements described on Exhibit C(the 'Rights-of-Way"), (iii)the gas processing plant,together with compression equipment and all other structures and improvements located on the Real Property and (iv) the gas gathering system,fixtures,equipment and other personal property located on the Rights-of-Way; (6) Ali other equipment,machinery,fixtures and other tangible personal property and improvements located on or used or held for use solely in connection with the operation of the interests described in (1) through(5) above including any wells, tanks, boilers, buildings, fixtures, injection facilities, saltwater disposal facilities, compression facilities, pumping units and engines,platforms, flow lines, pipelines, gathering systems,gas and oil treating facilities, machinery, power lines, telephone and telegraph lines, roads, and other appurtenances, improvements and facilities; (7) All other surface leases, permits, rights-of-way, licenses, easements and other surface rights agreements used in connection with the production, gathering, treatment, processing, storing, sale or disposal of Hydrocarbons or produced water from the interests described in(I)through(6)above(the"Surface Agreements"); (8) All existing contracts and effective sales, purchase contracts, operating agreements, exploration agreements, development agreements, balancing agreements, farmout agreements, service agreements, transportation, processing, treatment or gathering agreements, equipment leases and other contracts,agreements and instruments insofar as they directly relate to the properties and interests described in(I)through(6)above(the"Contracts")and provided that"Contracts"shall not include the instruments constituting the Leases; (9) To the extent transferable, engineering, geologic, geophysical and seismic data and licenses pertaining to the interests described in(1)through(6)above(thc"Data"); 2037473.1 1111111111111111111111111111111111111111111111111111111 3736903 12/06/2010 03:31P Weld County,CO 2 of 6 R 46.00 0 0.00 Steve Moreno clerk&Recorder Assignment Weld County.Colorado (I0) To the extent transferable,copies of all the files,records,and data relating to the items described in(1)through(9)above(the"Records"),which Records shall include,without limitation: lease records;well records;division order records;well files;title records(including abstracts of tide, title opinions and memoranda, and title curative documents); engineering records; geologic records; correspondence; electronic data files (if any); maps; production records; electric logs; core data; pressure data; decline curves and graphical production curves; reserve reports;appraisals and accounting records. NOTWITHSTANDING THE FOREGOING, the Assets shall not include, and there is excepted, reserved and excluded from the sale and assignment contemplated hereby (collectively,the`Excluded Assets"): (1) (i)all corporate,financial,income,tax and legal records of Assignor that relate to Assignor's business generally(whether or not relating to the Assets)and (ii)all books, records and tiles that relate to the Excluded.Assets; (2) (i)vehicles, (ii)any computers and related peripheral equipment, (iii)communications equipment, and (iv)communications licenses granted by the Federal Communications Commission or other governmental body; (3) all rights to any refunds for taxes or other costs or expenses borne by Assignor or Assignor's predecessor's in interest and title attributable to periods prior to the Effective Time; (4) Assignor's area wide bonds, permits and licenses or other permits, licenses or authorizations used in the conduct of Assignor's business generally; (5) all trade credits, account receivables, note receivables, take or pay amounts receivable, and other receivables attributable to the Assets with respect to any period of time prior to the Effective Time; (6) any patents, patent applications, logo, service mark, copyright, trade name or trademark of or associated with Assignor or any affiliate of Assignor; (7) Contracts and Surface Agreements to the extent the necessary consents to transfer are not obtained pursuant to Section 4.5 of the Agreement(as defined below);and (8) any refunds due Assignor by a third party for any overpayment of rentals, royalties,excess royalty interests or production payments attributable to the Assets with respect to any period of time prior to the Effective Time. TO HAVE AND TO HOLD the Assets unto Assignee, its successors and assigns, forever,subject to the following terms and conditions. (A) SPECIAL WARRANTY OF TITLE. ASSIGNOR WARRANTS TITLE TO THE ASSETS AGAINST ALL PERSONS CLAIMING BY, THROUGH, AND UNDER ASSIGNOR. BUT NOT OTHERWISE(PROVIDED THAT FAILURE TO MAKE A DELAY RENTAL OR SIMILAR PAYMENT TO EXTEND A LEASE SHALL NOT CONSTITUTE A BREACH OF THIS WARRANTY), AND EXCEPT FOR THAT WARRANTY, THIS ASSIGNMENT IS MADE WITHOUT WARRANTY OF TITLE OF ANY KIND,EXPRESS, IMPLIED,STATUTORY OR OTHERWISE. (B) No Third Party Beneficiaries. The references in this Assignment to liens, encumbrances, burdens, defects and other matters will not be deemed to ratify or create any rights in third parties or merge with, modify or limit the rights of Assignor or Assignee, as between themselves, as set forth in documents they have executed in connection with this Assignment. (C) Entire Agreement and Asset Purchase and Sale Agreement. The foregoing sets forth the entire agreement between the parties and there are no oral agreements between the parties not set out in writing. This Assignment supersedes all other prior written or oral agreements, except the Asset Purchase and Sale Agreement dated October 19, 20W, by and 2 I Will(IIII111111IIIIli 1111I111111III11111IIII 3736903 12/06/2010 03:31P Weld County,CO 3 of 8 R 46.00 0 0.00 Steve Moreno Clerk 6 Recorder Ass ignme,t Weld County,Colorado between Assignor and Assignee(the"Agreement"),which this Assignment is made subject to. All capitalized terms used but not defined in this Assignment have the meanings given them in the Agreement. If there is a conflict between the terms of this Assignment and the terms of the Agreement,the terms of the Agreement will control to the extent of the conflict. Assignor and Assignee intend that the terms of the Agreement remain separate and distinct from and not merge into the terms of this Assignment. (D) DISCLAIMERS. THE PARTIES HEREBY EXPRESSLY DISCLAIM, WAIVE AND RELEASE ANY WARRANTY,EXPRESS,IMPLIED,STATUTORY,OR OTHERWISE WITH RESPECT TO THE ASSETS, AS TO (I)MERCHANTABILITY, (11)FITNESS FOR ANY PARTICULAR PURPOSE. (III)CONFORMITY TO MODELS OR SAMPLES OF MATERIALS AND (IV)CONDITION OR SAFETY. THE ASSETS ARE SOLD AND ASSIGNEE ACCEPTS THE ASSETS,"AS IS,WHERE.IS,WITH ALL FAULTS,WITHOUT RECOURSE." AI.L DESCRIPTIONS OF THE ASSETS HERETOFORE OR HEREAFTER FURNISHED TO ASSIGNEE BY ASSIGNOR HAVE BEEN AND SHALL BE FURNISHED SOLELY FOR ASSIGNEE'S CONVENIENCE, AND HAVE NOT CONSTITUTED AND SHALL NOT CONSTITUTE A REPRESENTATION OR WARRANTY OF ANY KIND BY ASSIGNOR. ASSIGNOR MAKES NO REPRESENTATION OR WARRANTY AS TO (I)THE AMOUNT, VALUE, QUALITY OR DELIVERABILITY OF PETROLEUM, NATURAL GAS OR OTHER RESERVES ATTRIBUTABLE TO THE ASSETS OR(II)ANY GEOLOGICAL, ENGINEERING OR OTHER INTERPRETATIONS OF ECONOMIC VALUATION WITH RESPECT TO THE ASSETS. THE PARTIES HEREBY ACKNOWLEDGE AND AGREE THAT,TO THE EXTENT REQUIRED BY APPLICABLE LAW, THE DISCLAIMERS CONTAINED IN THIS AGREEMENT ARE"CONSPICUOUS" FOR THE PURPOSES OF SUCH APPLICABLE LAW. (E) Federal Assignment Forms. Separate governmental form assignments of the Assets may be executed on officially approved forms by Assignor to Assignee, in sufficient counterparts to satisfy applicable statutory and regulatory requirements. Those assignments shall be deemed to contain all of the terms hereof. The interests conveyed by such separate assignments are the same,and not in addition to,the interests conveyed herein. (F) Successors and Assigns. This Assignment binds and inures to the benefit of Assignor and Assignee and their respective successors and assigns. (G) Counterpart Execution. This Assignment may be executed in several counterparts and all of such counterparts together shall constitute one and the same instrument. (II) Amendment and Waiver. This Assignment may be altered, amended, or waived only by a written agreement executed by the parties to this Assignment. No waiver of any provision of this Assignment will be construed as a continuing waiver of the provision. [Remainder of Page Left Intentionally Blank Signature Page Follows.) 3 111111111111 111111111111111111111111111I111111111111111 3736903 12/06/2010 03:3W Weld County,CD 4 of 8 R 46.00 D 0.00 Steve Moreno Clerk S Recorder Assignment Weld County,Colorado IN WITNESS WHEREOF, this Assignment has been executed by the parties hereto effective as of August ],2010,at 7:00 a.m.Mountain Daylight Time. ASSIGNOR NOBLE ENERGY WYCO,LLC A Delaware limited liability company By: Noble Energy,Inc.,its SoleMember , By: Shawn E.Conner Its: Vice President Legal: 9-3 Land: hM- ASSIGNEE WESTERN OPERATING COMPANY By Leven es Its: Presi [Remainder of Page Left Intentionally Blank. Acknowledgment Page Follows.] 4 1111111 0111 111111 I III INtll 111 11111111 Ill Ilf II(II I III!3736903 12/06/2010 03:31P Weld County CO 5 of 8 R 46.00 0 0.00 Steve Moreno Clerk&Recorder Assignment Weld County,Colorado ACKNOWLEDGEMENTS STATE OF COLORADO ) )ss COUNTY OF DENVER ) ,1 This instrument was a f lg`o f 4efore me this 1 ≥ day of November, 2010, by Shawn E. Conner as Vice Pus rtt SrtJ i%%'Epergy, Inc.,the Sole Member of Noble Energy WyCo,LLC,a Delaware ho iit 4i billiacot$,on�behalf of the company. to 1. '%Bt ' 1O c ! V.�•r� . ki btw... C\ .Wily Public • ,)F Co;,O��, E: c A,; •c:.w �.�l Qt ti�ti A '1rrrrr,My Commission Expires: rte/ 6,eact 1]_ STATE OF COLORADO ) )ss COUNTY OF DENVER ) This instrument was acknowledged before me this_3O day of November, 2010, by Steven D.James as President of Western Operating Company,a Colorado corporation,on behalf of the corporatiotte,3:;%,, IfieL... B, t„l- 53 Notary Public �: pL.F.LIG.C.1O1 Name: Mars !3. 1Jtf1+' My Commission Expires: Oyliv/14/ 5 N x u • N y y • z d N d d 3 'D O 3 0 y 33 d (1 'a o N m n a. :12 ^ La. Ih (c51 N OD 0 0 C < P Z Z Em w 0 dry o N Z c a o & E m to d cd q to 2t a an w KN 0.y Z ' Z Z V > d J PI' FVl Ir-1n • `d0 a ry ry o Q m o a <— ^3 to 1 o o COS F xm. W C V. E a c rn i c `o c g 0 0 0 e 3 a a a o a t dd 3 3 +14 E w 3 E u o E 8 E B a ` f ` a _ - n d • v o 0 N w• N E 0 0 S $� 2 'o 0 3 3 3 0 0 0 0 0 0 0 a °o o y c t t a aawooatl R tluaI0 ouaiOW OMiS a0'0 a 00'90 9 8 10 9 e s$ ..�N 0 00'kuno3 PPM aye:eo Ot0819O!U Emma a. 1111111111111111111111111111111111111111111111111111 N O O O z v a v O z O o Z o O 3 3 w N Lli OJ Z Q Z o v• f W v.(N el n v m N Ein O `o z , o 0 N a c co Z a Z a E co Z Z a E m 0 n a N C c• m c T d U U 7 O C C C C C C O T E' T U « rn rn m v N O Cl 0 C Ca I- w w w F N O Z N N d 0 = o 0 ZZZ X __ m W 2 N C N ,y M m J C1 M Q J .n C O O p N # it >U III N N N <titM. Q P P it d <0 >, z 3 N 3 3 v m e W L o d t - cr 3 3 ▪ D O 0 O Z K V N co y W N (O 2 40 Q m N N P N N r O 0i D n n n m Z N N N Q d 0 10 Q O O 0 O L_ 0 0 In D O 3 to m w O CI CO CO -PlaoaH V HIa10 ouaioW ana1S 00'0 0 00'9t II B to L Lc.iIT. 0 —I 1111111111111111111111111111111111111111111111111111111 111111 11111 3736903 12106/2010 03:31P Weld County,CO 8 of 8 R 46.00 0 0.00 Steve Moreno Clerk&Recorder EXHIBIT C Attached to and made a part of Assignment,Bill of Sale,and Conveyance effective August 1,2010 From Noble Energy WyCo,LLC,as Seller, and Western Operating Company,As Buyer None. 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 0 Street4P.O. Box 7581 Greeley, CO 80632 tel: (970) 336-7215 X4226 *is. = 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(dilaol.com imailto:mikeishotwell(c≥aol.coml 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<egesick(@co.weld.co.us> To: mikejshotwell <mikeishotwellCDaol.com> Cc: Bruce Barker<bbarker(a)co.weld.co.us>; Stephanie Arries <sarries(rDco.weld.co.us>; Brad Yatabe <bvatabe(cdco.weld.co.us>; Bob <robertrwinklerxx(d),vahoo.com>; Tonya Disney <tdisnevgnco.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 StreetIP.O. Box 758IGreeley, CO 80632 tel: (970) 336-7215 X4226 • 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(d).aol.com [mailto:mikeishotwell(caaol.com) Sent: Tuesday, March 06, 2012 11:22 AM To: Esther Gesick; mikeishotwelI ≥aol.com Subject: Fwd: Mineral Lease-W2, S33, T7N, R60W 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 <mikeishotwell4aol.com> To: egesick <egesick(o co.weld.co.us>; mikejshotwell <mikeishotwell4aol.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 <mikeishotwellnaol.com> To: egesick<egesick(q co.weld.co.us>; mikejshotwell <mikeishotwell4aol.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<egesickeco.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 Y 4 ... 2 0 1 1 WFI-OL/TI W �[OUNl* 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. From: mikeishotwelleaol.com [mailto:mikeishotwell aol.coml Sent: Tuesday, December 06, 2011 1:02 PM To: Esther Gesick; mikeishotwellaol.com Subject: Fwd: Mineral Lease-W2, S33, T7N, R60W 4 Esther, Resending this email to ensure you received it. Thanks for your reply, Mike Original Message From: mikejshotwell <mikeishotwellAaol.com> To: egesick <egesickC@co.weld.co.us>; mikejshotwell <mikeishotwellna.aol.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 <egesickaco.weld.co.us> To: mikejshotwell <mikeishotwelk' aol.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 O StreetIP.O. Box 758]Greeley, CO 80632 tel: (970) 336-7215 X4226 loll W 'CtU N t V 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. From: mikeishotwellaaol.com ]mailto:mikeishotwellna,aol.com] Sent: Thursday, December 01, 2011 11:57 AM To: Esther Gesick Subject: Re: Mineral Lease-W2, S33, T7N, R60W 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 <eoesickCDco.weld.co.us> To: mikejshotwell <mikeishotwell(@aol.com> Sent:Wed, Nov 30, 2011 3:25 pm Subject: Mineral Lease-W2, S33, T7N, R60W 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 i� 10II WE C'dsil'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 aco.weld.co.us> To: Esther Gesick<egesick@co.weld.co.us> Cc: Stephanie Arries Gsarries@co.weld.co.us>;Brad Yatabe<byatabe(Mco.weld.co.us>;Bob Choate<bchoate n,co.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