HomeMy WebLinkAbout20113243.tiff RESOLUTION
RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING OIL AND GAS
LEASE, ACCEPT OFFER TO LEASE MINERAL ACRE, AND AUTHORIZE CHAIR TO
SIGN - NOBLE ENERGY, INC.
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, Noble Energy, Inc., 1625 South Broadway, Suite 2200, Denver, Colorado
80202, has requested that the bidding procedure be waived according to the policy as set forth in
the Weld County Code for parcels less than five acres, on the following described mineral acres:
A parcel of land 50 feet in width, along the South side
of the SW1/4 of Section 21, Township 8 North, Range
63 West of the 6th P.M., Weld County, Colorado;
being the South Fifty feet (50') of said Quarter
Section, including previous road grants
WHEREAS, Noble Energy, Inc., is offering to lease the above described mineral acres,
containing 1.207 mineral acres, more or less, and
WHEREAS, the Board finds that the lease offer from Noble Energy, Inc., in the amount of
FOUR HUNDRED EIGHTY-TWO AND 80/100 DOLLARS ($482.80), is acceptable, with further
terms and conditions being as stated in said Small Tract Oil and Gas Lease, a copy being attached
hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the request of Noble Energy, Inc., to waive the bidding procedure on an Oil
and Gas Lease concerning the above described mineral acres, be, and hereby is, granted.
BE IT FURTHER RESOLVED by the Board that the offer of Noble Energy, Inc., to lease
mineral acres, as hereinabove stated, be, and hereby is, accepted.
Q � UR, Nob\e Co'u2S� 2011-3243
Ia LE0036
WAIVE BID PROCEDURE- NOBLE ENERGY, INC.
PAGE 2
BE IT FURTHER RESOLVED by the Board that the Chair, be, and hereby is, authorized to
sign said Small Tract Oil and Gas Lease.
The above and foregoing Resolution was, on motion duly made and seconded, adopted by
the following vote on the 19th day of December, A.D., 2011.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY,COLORADO
�-1 [ATTEST: AJJ>1L 1 %
Barbara Kirkmeyer, Chair
Weld County Clerk to the Board /7
EL� an P.,Co. Pro-Tem (173
BY: ` Z �.
Deputy Cler 4 to the Boar.f .i I: .•.�°�:
'iqu, F!aCci
yaw -
David E. Long
C.•ntyAttorney ct��" CaS rvta C �—
Douglas/Rademacher
Date of signature: /-I S( f of
2011-3243
LE0036
WELD COUNTY OIL AND GAS LEASE
(Small Tract)
THIS AGREEMENT, made and entered into this/9 day of)YWanbri 201/ , by and between
WELD COUNTY, COLORADO, a political subdivision of the State of Colorado acting by and through the
Board of County Commissioners of the County of Weld, 015 10th Stroot, P.O. Box 758, Greeley, CO //50 "0115}
80632, hereinafter called Lessor, and Noble Energy, Inc., 1625 South Broadway, Suite 2200, Denver, CO
80202, hereinafter called Lessee.
WITNESSETH, that Lessor, for and in consideration of the sum of $482.80, cash in hand paid,
the receipt of which is hereby acknowledged, and the covenants and agreements hereinafter described,
has granted, demised, leased and let, and by these presents does grant, demise, lease and let
exclusively unto the said Lessee, the land hereinafter described, with the exclusive right for the purpose
of mining, exploring by geophysical and other methods, and operating for and producing therefrom; oil
and all gas of whatsoever nature or kind, with rights of way and easement for laying pipe lines, and
erection of structures thereon to produce, save and take care of said products, all that certain tract of land
situated in the County of Weld, State of Colorado, described as follows, to wit:
Section 21 Township 8 North, Range 63 West of the 6th P.M.,Weld County, Colorado:
A parcel of land Fifty feet (50') wide along the South side of the Southwest Quarter (SW/4) of
Section Twenty-one (21) Township Eight (8) North of Range Sixty Three (63) West of the Sixth
(e) Principal Meridian, being the South Fifty feet(50') of said Quarter Section, including previous
road grants.
and containing 1.207 acres, more or less.
1. It is agreed that the lease shall remain in force for a term of three (3)years from this date
and as long thereafter as oil or gas of whatsoever nature or kind is produced from said leased premises
or on acreage pooled therewith, or drilling operations are continued as hereinafter provided. If, at the
expiration of the primary term of this lease, oil or gas is not being produced on the leased premises or on
acreage pooled therewith but Lessee is then engaged in drilling or re-working operations thereon, then
this lease shall continue in force so long as operations are being continuously prosecuted on the leased
premises or on acreage pooled therewith; and operations shall be considered to be continuously
prosecuted if not more than ninety(90)days shall elapse between the completion or abandonment of one
well and the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on
said land or on acreage pooled therewith, the production thereof should cease from any cause after the
primary term, this lease shall not terminate if Lessee commences additional drilling or re-working
operations within ninety (90) days from date of cessation of production or from date of completion of dry
hole. If oil or gas shall be discovered and produced as a result of such operations; at or after the
expiration of the primary term of this lease, this lease shall continue in force so long as oil or gas is
produced from the leased premises or on acreage pooled therewith.
2. This is a PAID-UP LEASE. In consideration of the down cash payment, Lessor agrees
that Lessee shall not be obligated, except as otherwise provided herein, to commence or continue any
operations during the primary term. Lessee may at any time or times during or after the primary term
surrender this lease as to all or any portion of said land and as to any strata or stratum by delivering to
Lessor or by filing for record a release or releases, and be relieved of all obligation thereafter accruing as
to the acreage surrendered.
2011-3243
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3. In consideration of the premises the said Lessee covenants and agree to pay Lessor
twenty percent (20%) of the proceeds received by Lessee, payable monthly, for the oil, gas and other
hydrocarbons produced and saved from the leased premises.
4. Where gas from a well capable of producing gas is not sold or used, Lessee may pay or
tender as royalty to Lessor One Dollar per year per net mineral acre owned by Lessor and covered by this
lease, such payment or tender to be made on or before the anniversary date of this lease next ensuing
after the expiration of 90 days from the date such well is shut in and thereafter on or before the
anniversary date of this lease during the period such well is shut in. If such payment or tender is made, it
will be considered that gas is being produced within the meaning of this lease.
5. If said Lessor owns less than the entire oil and gas fee simple estate in the above
described lands, then the royalties (including any shut-in gas royalty) herein provided for shall be paid to
the said Lessor only in the proportion which Lessor's interest bears to the entire oil and gas mineral fee
simple estate.
6. Lessee shall have the right to use, free of cost or royalty, gas, oil and water produced on
said land for Lessee's operations thereon, except water from the wells of Lessor.
7. When requested by Lessor, Lessee shall bury Lessee's pipe lines below plow depth.
8. No well shall be drilled nearer than 200 feet to any occupied building on said premises
without the written consent of Lessor.
9. Lessee shall have the right at any time to remove all of Lessee's machinery and fixtures
placed on said premises, including the right to draw and remove casing.
10. The rights of Lessor and Lessee hereunder may be assigned in whole, or in part, upon
payment of a $25.00 fee and written consent of the Board of Weld County Commissioners. No change in
ownership of Lessor's interest (by assignment or otherwise) shall be binding on Lessee until Lessee has
been furnished with notice, consisting of certified copies of all recorded instruments or documents and
other information necessary to establish a complete chain of record title from Lessor, and then only with
respect to payment thereafter made. No other kind of notice, whether actual or constructive, shall be
binding upon Lessee. No present or future division of Lessor's ownership as to different portions or
parcels of said land shall operate to enlarge the obligations or diminish the rights of Lessee, and all
Lessee's operations may be conducted without regard to any such division. If all or any part of this lease
is assigned, no leasehold owner shall be liable for any act or omission of any other leasehold owner.
11. Lessee, at its option, is hereby given the right and power at any time and from time to
time as a recurring right, either before or after production, as to all or any part of the land described herein
and as to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the
mineral estate covered by this lease with other land, lease or leases in the immediate vicinity for the
production or oil and gas, or separately for the production or either, when in Lessee's judgment it is
necessary or advisable to do so, and irrespective of whether authority similar to this exists with respect to
such other land, lease or leases. Likewise, units previously formed to include formations not producing oil
or gas may be reformed to exclude such non-producing formations. The forming or reforming of any unit
shall be accomplished by Lessee executing and filing of record a declaration of such unitization or
reformation, which declaration shall describe the unit. Any unit may include land upon which a well has
theretofore been completed or upon which operations for drilling have theretofore been commenced.
Production, drilling or reworking operations or a well shut in for want of a market anywhere on a unit
which includes all or a part of this lease shall be treated as if it were production, drilling or reworking
operation or a well shut in for want of a market under this lease. In lieu of the royalties elsewhere herein
specified, including shut-in gas royalties, Lessor shall receive on production from the unit so pooled
royalties only on the portion of such production allocated to this lease; such allocation shall be that
proportion of the unit production that the total number of surface acres covered by this lease and included
1111111 11111 1111111 11II III 11111111 11111 III 11111 IIII IIII
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in the unit bear to the total number of surface acres in such unit. In addition to the foregoing, lessee shall
have the right to unitize, pool or combine all or any part of the above described lands as to one or more of
the formations thereunder with other lands in the same general area by entering into a cooperative or unit
plan of development or operation approved by any governmental authority and, from time to time, with
like approval, to modify, change or terminate any such plan or agreement and, in such event, the terms,
conditions and provisions of this lease shall be deemed modified to conform to the terms, conditions and
provisions of such approved cooperative or unit plan of development or operation and, particularly, all
drilling and development requirements of this lease, express or implied, shall be satisfied by compliance
with the drilling and development requirements of such plan or agreement, and this lease shall not
terminate or expire during the life or such plan or agreement. In the event that said above described
lands or any part thereof shall hereafter be operated under any such cooperative or unit plan of
development or operation whereby the production therefrom is allocated to different portions of the land
covered by said plan, then the production allocated to any particular tract of land shall, for the purpose of
computing the royalties to be paid hereunder to Lessor, be regarded as having been produced from the
particular tract of land to which it is allocated and not to any other tract of land; and the royalty payments
to be made hereunder to Lessor shall be based upon production only as so allocated. Lessor shall
formally express Lessor's consent to any cooperative or unit plan of development or operation adopted by
Lessee and approved by any governmental agency by executing the same upon request of Lessee.
12. All express or implied covenants of this lease shall be subject to all Federal and State
laws, executive orders, rules or regulations, and this lease shall not be terminated, in whole or in part, nor
Lessee held liable in damages, for failure to comply therewith, if compliance is prevented by, or if such
failure is the result of, any such law, order, rule or regulation.
13. Lessor does not warrant title to the leased premises, but it shall, upon request, allow
Lessee access to such abstracts and other title papers as it has in its files. Lessee shall have the right at
any time to redeem for Lessor, by payment, any mortgages, taxes or other liens on the above described
lands in the event of a default of payment by Lessor, and be subrogated to the rights of the holder
thereof.
14. Lessee shall indemnify Lessor against all liability and loss, and against all claims and
actions, including the defense of such claims or actions, based upon or arising out of damage or injury,
including death, to persons or property caused by or sustained in connection with operations on this
leased land or by conditions created thereby, or based upon any violation of any statute, ordinance or
regulation.
15. Upon failure or default of Lessee to comply with any of the terms and provisions hereof
including but not limited to the failure to comply with laws, rules and regulations covering Colorado oil and
gas operations, Lessor is hereby authorized upon notice and hearing, as hereinafter provided, to cancel
this lease as to all of the leased land so claimed or possessed by Lessee hereunder. In the event of any
such default or failure, Lessor shall, before making any such cancellation, send to Lessee by certified
mail, to the post office address of said lessee as shown by the records of Lessor, a notice or intention to
cancel for such failure or default, specifying the same, stating that if within thirty (30) days from the date
of mailing said notice, Lessee shall correct such failure or default, no cancellation will be made. If such
failure or default is not corrected with thirty (30) days after the mailing of such notice, and if Lessee does
not request a hearing on such notice within thirty (30) days, this lease will terminate and be canceled by
operation of the paragraph without further action by Lessor, or further notice to Lessee.
16. All of the provisions of this lease shall be binding upon the heirs, personal
representatives, successors and assigns of Lessor and Lessee.
17. Lessee shall not conduct operations of any kind upon the surface of the lands herein
described without the express written consent of Lessor.
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18. Neither party shall be responsible for delays or failures in performance resulting from acts
or occurrences beyond the reasonable control of such party, including, without limitation: fire, explosion,
power failure, flood, earthquake or other act of God; war, revolution, civil commotion, terrorism, or acts of
public enemies; any law, order, regulation, ordinance, or requirement of any government or legal body or
any representative of any such government or legal body; or labor unrest, including without limitation,
strikes, slowdowns, picketing or boycotts. In such event, the party affected shall be excused from such
performance (other than any obligation to pay money) on a day-to-day basis to the extent of such
interference (and the other party shall likewise be excused from performance of its obligations on a day-
to-day basis to the extent such party's obligations relate to the performance so interfered with).
IN WITNESS WHEREOF, Lessor has hereunto signed and caused its name to be signed by the
CHAIR, BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD, with the seal of the
office affixed, and Lessee has signed this agreement, the day and year first above written.
/� �-ATTEST: r 5 --
Weld County Clerk to the Board BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
By: \7 )�!/,.�, ;G& • /tom.//2e i. ' t
Deputy Clerk th i o ,, /'Chair, Board of Cou y Commis4ners
DEC 19 2011
sslk,µ, 1.-;74 LESSEE: Nob ergy, .
3 � r
By: air/
Joseph H. re o ttorney-In-Fact
Title: enior Land Mana er
STATE OF COLORADO )
) ss
COUNTY OF WELD )
The foregoing instrument was acknowledged before me this 19th day of
December , 20 11 , by Barbara Kirkm
Witness my hand and official seal. Z' it"
••, *'.
TONYA
I DISNEY
Notary Public He� @0
•My Commission Expires: in -0 - 0/ TF """Otv
MY COMM FXu
STATE OF COLORADO )
ss
COUNTY AND CITY OF DENVER )
1 IN 11111 11111 1111 III 11111111 111 III 11111 IIII 1111 1/2011)
3813364 12/21/2011 11:32A Weld County, CO (Revised d0// a�7
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7+11
The foregoing instrument was acknowledged before me this p` day of t)e.ember, 2011,
by Joseph H. Lorenzo, known to me to be the Attorney-In-Fact of Noble Energy, Inc., the Corporation that
executed the forgoing instrument and acknowledged to me such corporation executed the same.
Witness my hand and official seal.
l4� 4 C). �r'V��` %
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Notary Public r A Y`•
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My Commission Expires: apti I a')
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3813364 32AeO
5 of 5 R 0.00 0 0.00 Steve Moreno Clerk& Recorder
(Revised 1/2011)
1825 Broadway ya noble
Suite 2200
. energyDenver,CO 80202
Tel:303.228.4000
Fax:303.228.4280
www.nobleenergyinc.com
n
December 12,2011 —
W
Clerk to the Board,Weld County,CO V
Attn: Esther Gesick
P.O. Box 758
Greeley, CO 80632
RE: Offer of Oil and Gas Lease(Small Tract)
Township 8 North,Range 63 West,6th P.M.
Section 21: A parcel of land Fifty feet(50')wide along the South side of the Southwest Quarter(SW/4) of
Section Twenty-one (21) Township Eight (8) North of Range Sixty Three (63) West of the Sixth (6th)
Principal Meridian, being the South Fifty feet(50')of said Quarter Section, including previous road grants.
Weld County,CO
Dear Esther,
Enclosed please find an oil and gas lease covering the Weld County, CO 100.00% interest in the above described
1.207 acre tract in Weld County, Colorado. The lease provides for a 3-year primary term and a one-fifth(20.00%)
royalty in the event of production, subject to proportionate reduction. In addition, a copy of the Drilling and
Division Order Title Opinion has been included for the County to verify said interest.
If the County chooses to accept the terms proposed please have the appropriate party sign the lease exactly as
the name appears in the presence of a Notary Public, and return at your nearest convenience. A check for
$482.80 (1.207 acres x $400.00/acre = $482.80) has been enclosed as requested for this offer to lease. If you
should have any questions, please feel free to contact me at (720) 587-2027. I can also be reached by email at
gfindlavna,nobleenergyinc.com.
Very truly yours,
NOBLE ENERGY, INC.
Gabriel S.Findlay
Land Negotiator
•
RECEIPT DATE /a-r5-// NO. 86195
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ORDER
"This Opinion/Update is furnished as an accommodation only
It has been rendered for the sole and exclusive use of Noble �-
Energy,Inc.or its predecessors and neither Noble nor its Title
Opinion/Update attorney preparer assumes any responsibility
or liability to any third party for the correctness of statement
comment or content hereof." December 2, 2011
DUFFORD
Mr. Eric Koble J iiROWN
Noble Energy, Inc. arrors vFvs AT LAW
1625 Broadway, Suite 2200
Denver, Colorado 80202
Re: Drilling and Division Order Title Opinion
Kern GW21-6813N1
T8N, R63 W, Section 21: All
Weld County, Colorado
DRILLING AND DIVISION ORDER TITLE OPINION
covering
Township 8 North, Range 63 West, 6th P.M.
Section 21: All
Weld County, Colorado
Containing 639.62002 acres,+
Referred to herein as the "captioned lands"
The captioned lands are comprised of the following ownership tracts:
Tract 1: The NE/4 of Section 21. Tract 1 contains 159.5900 acres, +.
Tract 2: The NW/4 of Section 21. Tract 2 contains 159.8300 acres,±.
Tract 3: The W/2SW/4 of Section 21, less and excluding that portion of Tract 7
below lying in the W/2SW/4 of Section 21. Tract 3 contains 79.4665
acres, +.
See Comment/Requirement No.4.
2 See Comment/Requirement No. 37.
1700 Broadway / Suite 2100 / Denver,CO 80290-2101 / Phone 303.861.8013 / Fax 303.832.3804 / www.duffordbrown.com
00456024.1)
Tract 4: Lot A of Recorded Exemption No. 0547-21-3-RE-2618, recorded at
Reception No. 2750224 on February 17, 2000, less and excluding that
portion of Tract 7 below lying within said Lot A. Tract 4 contains 4.7858
acres, +.
Tract 5: Lot B of Recorded Exemption No. 0547-21-3-RE-2618, recorded at
Reception No. 2750224 on February 17, 2000, less and excluding that
portion of Tract 7 below lying within said Lot B. Tract 5 contains 74.6807
acres, ±
Tract 6: The SE/4 of Section 21. Tract 6 contains 160.0600 acres, +.
Tract 7: That portion of the following described parcel3 of land lying in the SW/4
of Section 21:
A parcel of land Fifty feet (50') wide along the South side of the
Southwest Quarter (SW''A) of Section Twenty-one (21) Township
Eight (8) North of Range Sixty-three (63) West of the Sixth (6th)
Principal Meridian, being the South Fifty feet (50') of said Quarter
Section, including previous road grants.
Tract 7 contains 1.2070 acres, +.
Dear Mr. Koble:
Pursuant to a request, we examined the materials listed below for the purpose of
rendering a drilling and division order title opinion covering the captioned lands. As a result of
our examination, we determined that the current ownership of minerals, oil and gas leasehold, oil
and gas production, and the proceeds from the sale of oil and gas production, as of 5:00 p.m. on
September 13, 2011 (the "Effective Date") is as specified hereafter, subject to the Exceptions,
Comments and Requirements that follow.
I. MATERIALS EXAMINED
A. Abstracts
1. INDEX OF DOCUMENTS, undated, prepared by Alfson Energy Land Services, Inc. for
Noble Energy, Inc., describing all instruments of record covering all of Section 21, T8N,
R63W, 6th P.M., from inception to September 13, 2011 at 5:00 p.m.
2. DOCUMENT COPIES, based on the Indexes of Documents detailed above.
3 This description is taken from a Final Ruling Of Court, dated March 19, 1940, recorded at Book 1059, Page 54 on
March 19, 1940. See Comment/Requirement No. 6 below.
100456024.I} 2
ORIGINAL DOCUMENT OF DUFFORD&BROWN,P.C.
3. CERTIFICATE AND NOTES, dated September 27, 2011, prepared by Alfson Energy
Land Services, certifying that the above work product provided by Alfson Energy Land
Services: (1) constitutes a true and correct copy of the documents contained in the
indices, files and records of the various agencies examined, (2) constitutes a complete
compilation of instruments and records, as to the lands (Section 21) and dates and times
(inception to September 13, 2011 at 5:00 p.m.) covered, and (3) is subject to and limited
by the attached Notes, which include, but are not limited to the following:
a) The work product is based entirely on a search of tract indexes and documents
maintained by the Weld County Clerk and Recorder. The accuracy and
completeness of the work product is subject to any errors, omissions and
inaccuracies of such tract indexes.
b) The work product is not warranted as to any of the following exceptions:
1) any of the following pertaining to the captioned lands that did not appear
in the materials examined: all interest, rights, claims and demands
whether or not filed of record; accrued, but unfiled or unrecorded liens,
including but not limited to Federal Estate Tax liens, mechanics liens,
judgment liens or other statutory liens; easements; filings under the
UCC; pending litigation for which there was not a recorded lis pendens;
documents filed of record with the United States, Department of the
Interior, if such records were not examined;
2) documents not disclosed that would be disclosed by an accurate and
complete index of title;
3) compliance with any county, state or federal regulations, including but
not limited to regulations relating to the environment, zoning or land use
controls;
4) matters pertaining to zoning or land use controls, boundaries, location of
improvements, rights of persons in possession or any other matter which
were not disclosed in the materials researched;
5) matters concerning rights of access from a public road not disclosed in
any of the materials researched;
6) matters concerning water, ditch and reservoir rights, including
easements and rights of way, not disclosed in any of the materials
researched; and
7) matters pertaining to filing with the State of Colorado Oil & Gas
Conservation Commission.
(00456024.1} 3
ORIGINAL DOCUMENT OF DUFFORD&BROWN,P.C.
B. Prior Opinions
None.
C. Documents
1. RELEASE - DEED OF TRUST, dated November 20, 1995, recorded at Book 1519,
Reception No. 2464593 on November 21, 1995, releasing Deed of Trust recorded at
Book 1055, Reception No. 1995360 from Charles T. Jones for the benefit of the Federal
Land Bank of Wichita.
2. REQUEST OF RELEASE OF DEED OF TRUST AND RELEASE, dated August 29,
1997, recorded at Book 1626, Reception No. 2568704 on September 12, 1997, releasing
Deed of Trust recorded at Book 945, Reception No. 1866764 from Judith Ann May for
the benefit of Judith Ann May, P.R. Estate of Harry Raven.
3. RELEASE — MORTGAGE, dated July 9, 1998, recorded at Reception No. 2626782 on
July 17, 1998, from The Farm Credit Bank of Wichita, Wichita, Kansas, releasing a real
estate mortgage recorded at Book 563, Reception No. 1484759 from Charles T. Jones and
Iva L. Jones, his wife.
4. WARRANTY DEED, dated September 20, 1999, recorded at Reception No. 2722704 on
September 24, 1999, from Judith Ann May to Charles T. Jones and Mary E. Jones, as
joint tenants, covering all of grantor's interest in the SW/4 of Section 21, T8N, R59W, 6th
P.M.
5. RELEASE — MORTGAGE, dated September 29, 1999, recorded at Reception No.
2723494 on September 29, 1999, from The Farm Credit Bank of Wichita, Wichita,
Kansas, releasing a real estate mortgage recorded at Book 911, Reception No. 1832931
from Judith Ann Frick, as Personal Representative of the Estate of Harry Raven,
deceased and Fay M. Raven a/Ida Fay Raven a/k/a Faye Raven, a widow.
6. STATEMENT OF AUTHORITY, dated October 28, 2008, recorded at Reception No.
3588525 on November 6, 2008, stating that Charles T. Jones and Mary E. Jones are Co-
Trustees of the Charles T. Jones Trust.
7. WITHDRAWAL OF NOTICE OF ELECTION AND DEMAND FOR SALE BY
PUBLIC TRUSTEE - SALE NUMBER 11-0484, dated April 21, 2011, recorded at
Reception No. 3765229 on April 28, 2011, withdrawing a Notice Of Election And
Demand For Sale By Public Trustee, dated March 30, 2011, recorded at Reception No.
3760616 on April 6, 2011 and covering the lands comprising Tract 5 of this opinion.
8. ASSIGNMENT OF OIL AND GAS LEASE, dated January 14, 2011, recorded at
Reception No. 3793099 on September 19, 2011, from Hannon & Associates, Inc. to
Noble Energy, Inc., covering all of assignor's right, title and interest in Subject Leases A,
B, C and D detailed herein.
{00456024.1) 4
ORIGINAL DOCUMENT OF DUFFORD& BROWN,P.C.
D. Records
1. WELD COUNTY ASSESSOR PARCEL MAPS, covering T8N, R59W, 6th P.M., Section
21.
II. SURFACE OWNERSHIP
Tracts 1, 2 and 3
Jason C. Kern and Anne B. Kern, JT 100.000000%
Tract 4
Laurie J. MacDonald 100.000000%
Tract 5
Cheryl Gorski and Darrell White 100.000000%
Surface Tract 6A
Lot A of Recorded Exemption No. 0547-21-4-RE-3937, recorded at Reception No. 3232460
on November 2, 2004
J. Robert Sherwood 100.000000%
Surface Tract 6B
Lot B of Recorded Exemption No. 0547-21-4-RE-3937, recorded at Reception No. 3232460
on November 2, 2004
Kimberlee Gabel and Ronnie J. Grinstead 100.000000%
Surface Tract 6C
W/2SE/4 of Section 21
Craig E. Adams and Suzanne K. Adams, JT 100.000000%
Tract 7
Board of County Commissioners of Weld 100.000000%
County, Colorado
(00456024.I} 5
ORIGINAL DOCUMENT OF DUFFORD&BROWN,P.C.
III. MINERAL OWNERSHIP
Tracts 1 and 2
Board of County Commissioners of Weld 100.000000%
County, Colorado
Tract 3
Jason C. Kern and Anne B. Kern, JT 50.000000%
Charles T. Jones and Mary E. Jones, JT 50.000000%
Total 100.000000'1/o
Tract 4
Laurie J. MacDonald 100.000000%
Tract 5
Cheryl Gorski and Darrell White 100.000000%
Tract 6
Charles T. Jones, Donald O. Magnuson and 100.000000%
Jeanette R. Magnuson, JT
Tract 7
Board of County Commissioners of Weld 100.000000%
County, Colorado
IV. OIL & GAS LEASEHOLD OWNERSHIP
Tract 1
Name WI NRI Lease
Noble Energy, Inc. 100.000000% 80.000000% E
Board of County 20.000000% (LOR) E
Commissioners of Weld
County, Colorado
Total 100.000000% 100.000000%
(00456024.1) 6
ORIGINAL DOCUMENT OF DUFFORD&BROWN,P.C.
Tract 2
Name WI NM Lease
Noble Energy, Inc. 100.000000% 80.000000% F
Board of County 20.000000% (LOR) F
Commissioners of Weld
County, Colorado
Total 100.000000% 100.000000%
Tract 3
Name WI NRI Lease
Noble Energy, Inc. 100.000000% 85.000000% B, C
Jason C. Kern and Anne B. 7.500000% (LOR) B
Kern, JT
Charles T. Jones and Mary E. 7.500000% (LOR) C
Jones, JT
Total 100.000000% 100.000000%
Tract 4
Name WI NRI Lease
Laurie J. MacDonald 100.000000% 100.000000% Unleased
Total 100.000000% 100.000000%
Tract 5
Name WI NRI Lease
Noble Energy, Inc. 100.000000% 87.500000% A
Cheryl Gorski and Darrell 12.500000% (LOR) A
White
Total 100.000000% 100.000000%
Tract 6
Name WI NRI Lease
Noble Energy, Inc. 100.000000% 85.000000% C, D
Charles T. Jones, Donald O. 15.000000% (LOR) C, D
Magnuson and Jeanette R.
Magnuson, JT
Total 100.000000% 100.000000%
{00456024.1} 7
ORIGINAL DOCUMENT OF DUFFORD&BROWN, P.C.
Tract 7
Name WI NRI Lease
Board of County 100.000000% 100.000000% Unleased
Commissioners of Weld
County, Colorado
Total 100.000000% 100.000000%
V. CONSOLIDATED OIL & GAS LEASEHOLD OWNERSHIP
Township 8 North, Range 63 West, 6th P.M.
Section 21: All, containing 639.6200 acres,+
Limited to the Niobrara Formation
Further Limited to Production from the Kern GW21-68HN Well
Name WI NRI Lease Tract
Noble Energy, Inc. 99.063068% 81.998552% A, B, C, 1, 2, 3,
D, E, F 5, 6
5Laurie J. MacDonald 0.748226% 0.748226% Unleased 4
6Board of County 0.188706% 0.188706% Unleased 7
Commissioners of Weld
County, Colorado
7Board of County 9.987805% (LOR) E, F 1, 2
Commissioners of Weld
County, Colorado
8Charles T. Jones, Donald O. 3.753635% (LOR) C, D 6
Magnuson and Jeanette R.
Magnuson, JT
9Cheryl Gorski and Darrell 1.459474% (LOR) A 5
White
10Jason C. Kern and Anne B. 0.931801%(LOR) B 3
Kern, JT
I(Charles T. Jones and Mary 0.931801% (LOR) C 3
E. Jones, JT
Total 100.000000% 100.000000%
4 See Comment/Requirement Nos. 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, and 19.
6 See Comment/Requirement Nos. 7, 8, 13, 14, 15, 16, 17,and 19.
6 See Comment/Requirement Nos. 6, 8, 14, 15, 16, 17, and 19.
'See Comment/Requirement Nos. 9, 14, 16, 17, 18,and 19.
8 See Comment/Requirement Nos. 9, 10, 11, 12, 14, 15, 16, 17, 18, 19, and 24.
9 See Comment/Requirement Nos. 13, 14, 15, 16, 17,and 19.
I°See Comment/Requirement Nos. 13, 14, 15, 16, 17,and 19.
' See Comment/Requirement Nos. 13, 14, 15, 16, 17,and 19.
{00456024-I} 8
ORIGINAL DOCUMENT OF DUFFORD&BROWN,P.C.
OWNERSHIP OF OIL AND GAS AND THE PROCEEDS FROM THE SALE OF OIL
AND GAS, PRODUCED FROM ALL OF SECTION 21, TOWNSHIP 8 NORTH, RANGE
63 WEST, 6TH P.M., LIMITED TO THE NIOBRARA FORMATION AND FURTHER
LIMITED TO THE KERN GW21-68HN WELL, AS OF THE EFFECTIVE DATE OF
THIS OPINION.
Landowner Royalty ("LOR")
1. Board of County Commissioners of Weld County, Colorado
20.0% LOR [Lease El x 100%Mineral Interest ("MI")
[Tract 1] x (159.5900/639.6200 acres)
Plus
20.0% LOR [Lease F] x 100% MI
[Tract 2] x (159.8300/639.6200 acres) = 0.09987805 LOR
2. Charles T. Jones, Donald O. Magnuson and Jeanette R. Magnuson, JT
15.0% LOR [Lease C, D] x 100% MI
[Tract 6] x (160.0600/639.6200 acres) = 0.03753635 LOR
3. Cheryl Gorski and Darrell White
12.5% LOR [Lease A] x 100% MI
[Tract 5] x (74.6807/639.6200 acres) = 0.01459474 LOR
4. Jason C. Kern and Anne B. Kern, JT
15.0% LOR [Lease B] x 50.0% MI
[Tract 3] x (79.4665/639.6200 acres)= 0.00931801 LOR
5. Charles T. Jones and Mary E. Jones, JT
15.0% LOR [Lease C] x 50.0% MI
[Tract 3] x(79.4665/639.6200 acres) = 0.00931801 LOR
Overriding Royalty Interest ("ORI")
None.
{00456024.!) 9
ORIGINAL DOCUMENT OF DUFFORD&BROWN,P.C.
Working Interest ("WI")/Net Revenue Interest ("NRI")
6. Noble Energy, Inc.
100% WI [Lease E, F] x 100% MI x 80.0% NRI
[100% - 20.0% LOR [1]]
[Tract I, 2] x (319.4200/639.6200 acres)
Plus
100% WI [Lease B, C] x 100% MI x 85.0%NRI
[100% - 15.0% LOR [4, 5]]
[Tract 3] x (79.4665/639.6200 acres)
Plus
100% WI [Lease A] x 100% MI x 87.5%NRI
[100% - 12.5% LOR [311
[Tract 5] x (74.6807/639.6200 acres)
100% WI [Lease C, D] x 100% MI x 85.0%NRI
[100% - 15% LOR [2]]
[Tract 6] x (160.0600/639.6200 acres)= 0.81998552 NRI
7. Laurie J. McDonald
100% WI [Unleased] x 100%MI x 100%NM
[Tract 4] x (4.7858/639.6200 acres) = 0.00748226 NM
8. Board of County Commissioners of Weld County, Colorado
100% WI [Unleased] x 100% MI x 100%NM
[Tract 7] x (1.207/639.6200 acres) = 0.00188706 NRI
VI. OIL AND GAS LEASES
See Exhibit A for a complete description, including lands covered and provisions of
Subject Oil and Gas Leases A, B, C, D, E and F covering the captioned lands. Below are the
date, recording information, lessor and lessee and the interest covered, for identification purposes
within this opinion.
Lease A
Date: January 1, 2010
Recorded: Reception No. 3695992 on May 27, 2010
(00456024.1 I 10
ORIGINAL DOCUMENT OF DUFFORD&BROWN,P.C.
Lessor: Cheryl Gorski, Individually and as Attorney in Fact for Darrell
White, and Darrell White
Lessee: Hannon& Associates, Inc.
''Interest Covered: 100% mineral interest in Tract 5
Lease B
Date: December 22, 2009
Recorded: Reception No. 3695953 on May 27, 2010
Lessor: Jason C. Kern and Anne B. Kern
Lessee: Hannon& Associates, Inc.
I3Interest Covered: 50%mineral interest in Tract 3
Lease C
Date: December 22, 2009
Recorded: Reception No. 3695915 on May 27, 2010
Lessor: Charles T. Jones, a/k/a Charles Thomas Jones, and Mary E. Jones,
husband and wife, Charles T. Jones, Trustee of the Charles
Thomas Jones Trust, Charles T. Jones as sole Trustee under the Iva
L. Jones Trust, under Trust Agreement dated February 7, 1979, in
accordance with Amendment to the trust Agreement dated June, 1,
1982, and the Coal Creek Gelbvieh III, dated March 15, 1996,
Mary E. Jones and Charles T. Jones, Trustees
Lessee: Hannon & Associates, Inc.
14Interest Covered: 50% mineral interest in Tract 3 and the mineral interest of Charles
T. Jones in Tract 6 that is held in joint tenancy with Donald O.
Magnuson and Jeanette R. Magnuson
Lease D
Date: December 22, 2009
12 Examiner's attribution of lease coverage,not stated on actual lease.
13 Examiner's attribution of lease coverage, not stated on actual lease.
14 Examiner's attribution of lease coverage,not stated on actual lease.
(00456024 1) 1 1
ORIGINAL DOCUMENT OF DUFFORD& BROWN,P.C.
Recorded: Reception No. 3695962 on May 27, 2010
Lessor: Donald O. Magnuson a/lc/a Donald Oren Magnuson and Jeanette
R. Magnuson, husband and wife
Lessee: Hannon & Associates, Inc.
Interest Covered: Mineral interest of Donald O. Magnuson and Jeanette R.
Magnuson in Tract 6 that is held in joint tenancy with Charles T.
Jones
Lease E
Date: December 28, 2009
Recorded: Reception No. 3670464 on January 15, 2010
Lessor: Weld County, a political subdivision of the State of Colorado,
acting by an through the Board of County Commissioners of the
County of Weld
Lessee: Hannon & Associates, Inc.
16Interest Covered: 100% mineral interest in Tract 1
Lease F
Date: December 28, 2009
Recorded: Reception No. 3670463 on January 15, 2010
Lessor: Weld County, a political subdivision of the State of Colorado,
acting by an through the Board of County Commissioners of the
County of Weld
Lessee: Hannon & Associates, Inc.
I7Interest Covered: 100% mineral interest in Tract 2
VII. ASSIGNMENT(S) OF OIL AND GAS LEASES
See Exhibit A for a description of the Assignments identified in the materials examined
and reviewed by the examiner.
15 Examiner's attribution of lease coverage,not stated on actual lease.
16 Examiner's attribution of lease coverage, not stated on actual lease.
u Examiner's attribution of lease coverage, not stated on actual lease.
(00456024.I} 12
ORIGINAL DOCUMENT OF DUFFORD&BROWN,P.C.
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