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HomeMy WebLinkAbout20082976.tiff 1111111 11111 111111 11111 111111 I I 11111111 I I I1111111111111 8N3589890 11/14/2008 01 :49P Weld County, CO 1 of 1 R 0.00 D 0.00 Steve Moreno Clerk & Recorder WALSH PRODUCTION, INC. PO. BOX 30 STERLING, CO 80751 970-522-1839 October 30, 2008 Board of County Commissioners Weld County Colorado 915 10th Street, P. O. Box 758 Greeley, Colorado 80632 Re: Oil and Gas Lease dated February 9, 2005 between Weld County, Colorado, as Lessor, and Walsh Production, Inc. as Lessee covering the W/2NE/4, SW/4NW/4, E/2NW/4, N/2SW/4 and NW/4SE/4 of Section 28-TI IN-R61 W (the "Weld County Lease") Dear County Commissioners, Pursuant to the attached Assignment of Overriding Royalty Interest dated June 14, 2007, Walsh Production Inc. assigned to William and Veleria M. Fabrizius a proportionately reduced 1 .0% of 8/8ths overriding royalty interest in the Weld County Lease. Pursuant to the attached Partial Assignment of Oil and Gas Leases dated June 22, 2007, Walsh Production, Inc. assigned to Frank H. Walsh, LLC 28.50% and to Channel Petroleum Inc. 5 .00% of its right, title and interest in the Weld County Lease. Walsh Production, Inc. hereby requests the consent to and approval of the assignments referenced above by Weld County, Colorado as required by the terms of the lease. Please advise if there is an assignment charge due or if you need anything further. Thank you for your consideration of this request. Please evidence your consent and approval by execution of a copy of this letter in the space provided below. Sincerely, W LSH PRODUCTION, INC. Dean Gackle Vice-President Consent and Approval granted this 10t1-day of Nov , 2008 Board of County Commissioners, Weld County, Colorado By: William H . Jerke Title: Chair CR � Ilt a.. 2008 2976 NI? C�c' , ro- t // /3 e'd' l-€ 0/ 02a- a 065 1111111 11111 DIN lint HIND III IIIII IIII IIII 3486065 06/26/2007 03:54P Weld County, CO 1 of 2 R 11.00 D 0.00 Steve Moreno Clerk& Recorder ASSIGNMENT OF OVERRIDING ROYALTY INTEREST For Ten Dollars ($10.00)and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,WALSH PRODUCTION,INC.,P.O.Box 30,Sterling,CO 80751,(herein called"Assignor"),does hereby convey,transfer,assign,and set over unto William and Veleria M.Fabrizius, husband and wife,whose mailing address is 61184 WCR 87,Grover, CO 80729,(herein called"Assignee") a ONE PERCENT OF EIGHT-EIGHTS (1.0% of 8/8ths) of all oil, gas, casinghead gas and other hydrocarbon substances produced, saved and marketed from the lands described on Exhibit"A" attached hereto and made a part hereof, under the provisions of the lease(s) described on Exhibit "A", said lands located in Weld County, State of Colorado,as an overriding royalty, free and clear of all cost and expense of development and operation thereof, except taxes applicable to said overriding royalty interest and the production therefrom. To have and to hold the interest herein transferred and assigned unto Assignee,their heirs,devisees, personal representatives,successors and assigns,forever,subject only to the following terms and provisions: that A. The overriding royalty interest herein transferred is payable out of and only out of the oil and gas produced, saved and marketed,pursuant to the terms and provisions of the applicable lease(s) as described on Exhibit "A". B. The overriding royalty interest herein provided for shall not,in any event,be paid or accrued upon any oil,gas,casinghead gas and other hydrocarbon substances used for operating,development or production purposes upon the said described lands or unavoidably lost;and no overriding royalty shall be paid upon gas used for repressuring or recycling operations benefitting said lands. C. This assignment of overriding royalty is made without warranty of title, either expressed or implied. D. If Assignors interest in the oil and gas lease(s) described on Exhibit "A" is less than the entire interest, or if said oil and gas lease(s) cover less than the entire fee title, then the above overriding royalty interest shall be reduced proportionately. In witness whereof, Assignor has executed and delivered this assignment of overriding royalty interest as of this 14th day of June, 2007. WALSH PRODUCTION,INC. WAAA William M. Walsh President STATE OF COLORADO ) ) ss. COUNTY OF at ) On this J-`day of 4' wvsL ,2007,before me personally appears William M. Walsh, President of Walsh Production, Inc., who being duly sworn by me, acknowledged that he executed the foregoing instrument at his act and deed for the uses and purposes therein stated. Witness my hand and official seal. • • ACrA¢. la:O•/3or 3O Notary Pu is ,d Co go7c/ My commission expires: V r y/aVa.007 • 111111111111IDE fill maid 11111111111 ��� 11111 ���� 1111 3486065 06/26/2007 03:54P Weld County, CO 2 of 2 R 11.00 D 0.00 Steve Moreno Clerk & Recorder EXHIBIT "A" Attached to and made a part of that certain ASSIGNMENT OF OVERRIDING ROYALTY dated effective June 14,2007 by and between Walsh Production, Inc. as Assignor and William and Veleria M. Fabrizius as Assignee. LOCATED IN WELD COUNTY, COLORADO Lessor: Weld County, Colorado Lessee: Walsh Production, Inc. Date: February 9, 2005 Recording: Not Recorded Description: Township 11 North, Range 61 West, 6`h P.M. Section 28: W/2NE/4, SW/4NW/4, E/2NW/4, N2SW/4,NW/4SE/4 111111111111111111111111111111111111111 I I 11111111111111 3486066 06/26/2007 03:54P Weld County, CO 1 of 2 R 11.00 D 0.00 Steve Moreno Clerk& Recorder PARTIAL ASSIGNMENT OF OIL AND GAS LEASE KNOW ALL MEN BY THESE PRESENTS: THAT,as of 7:01 a.m.,C.S.T.on the 15th day of June,2007,hereinafter called the"Effective Time,"the undersigned,WALSH PRODUCTION,INC.,P.O.Box 30, Sterling,Colorado 80751, hereinafter referred to as Assignor,for and in consideration of the sum of$10.00 and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, does hereby bargain,sell,assign,set over and convey THIRTY THREE AND ONE HALF PERCENT(33.50%) of Assignor's right title and interest in and to the Oil and Gas Lease,more fully described in Exhibit "A" (Lease), attached hereto by this reference, unto the following parties in the percentages stated herein: FRANK H. WALSH,LLC, TWENTY EIGHT AND ONE HALF PERCENT (28.50%), P.O.Box 30,Sterling,CO 80751 and CHANNEL PETROLEUM INC.,FIVE PERCENT(5.00%), 32 Mountain Laurel Drive,Littleton,CO 80127,collectively referred to as Assignee,with all rights incident to said interest and personal property, appurtenant thereto, or obtained in connection therewith, insofar as said Lease affects the described lands in Weld County, Colorado. TO HAVE AND TO HOLD this interest unto the Assignee, its successors and assigns forever, subject, however to the following: a. This Assignment is made subject to the terms and conditions of the Oil and Gas Lease described in Exhibit A. b. This Assignment is made subject to the terms and conditions of the Assignment of Overriding Royalty Interest dated effective June 14, 2007 by and between Walsh Production, Inc. and William and Veleria M. Fabrizius The Assignor represents that it has not assigned the interest hereunder to any other party;but otherwise, Assignor conveys this interest without warranty of title, either express or implied. Dated this 22-6' day of , 2007, but effective as of the Effective Time. WALSH PRODUCTION,INC. Willi M. Walsh, President STATE OF COLORADO ) )ss. COUNTY OF LOGAN ) The foregoing instrument was acknowledged before me thisaand day oftWn_2, 2007, By William M. Walsh, as President of Walsh Production, Inc. WITNESS my hand and official seal My commission expires: j2/2//Doo7 Notary Pub c. /3ax 30 q Co yo 7S 1111111 1111111111! "III 1111111111111111111111111111 IIII 3486066 06/26/200/ 03:54P Weld County, CO 2 of 2 R 11.00 D 0.00 Steve Moreno Clerk& Recorder EXHIBIT A Attached to and made a part of the certain Partial Assignment of Oil and Gas Lease dated effective June 15, 2007, between Frank H. Walsh, LLC, Channel Petroleum Inc. and Walsh Production, Inc. LEASE: Located in Weld County, Colorado Lessor: Weld County, Colorado Lessee: Walsh Production, Inc. Date: February 9, 2005 Recording: Not Recorded Description: Township 11 North, Range 61 West, 6th P.M. Section 28: W/2NE/4, SW/4NW/4, E/2NW/4, N2SW/4, NW/4SE/4 SURFACE OWNER AGREEMENT 547 WHEREAS, Walsh Production, Inc., hereinafter referred to as "WPI", and William and Veleria M.Fabrizius, hereinafter collectively referred to as"Fabrizius",have previously entered into an Oil and Gas Lease, hereinafter referred to as " Fabrizius Lease", dated October 14, 2004 and amended December 8, 2004, which Fabrizius Lease is attached hereto as Exhibit"A"; and WHEREAS, Fabrizius is the surface owner for the following lands in Weld County, Colorado: T l ON-R61 W Section 3: N/2,N/2S/2, Section 4: NE/4,and Section 11: NW/4 T11N-R61 W Section 13: All, Section 23: All, Section 24: W/2, Section 26,N/2, SW/4, Section 27: All, Section 28: All, except that portion of land contained in the Grover Cemetery, Section 33: All, and Section 34: W/2 All of the lands owned by Fabrizius and described above are hereinafter referred to as "Fabrizius Lands"; and WHEREAS, Fabrizius does not own a mineral interest under a portion of the Fabrizius Lands; and WHEREAS,WPI has drilled the Weld#5-28 Well located in the SWNW of Section 28- T1 IN-R61 W, Weld County, Colorado on the Fabrizius Lands; and WHEREAS, WPI and Fabrizius desire to enter into a Surface Owner Agreement covering all of the Fabrizius Lands. NOW THEREFORE in consideration of Ten Dollars and other mutual benefits derived pursuant to this Surface Owner Agreement, WPI and Fabrizius agree as follows: 1. Surface Damage Payment WPI agrees to pay Fabrizius $3,000 as consideration for surface damages for each drillsite constructed on the Fabrizius Lands. Said payment will be tendered to Fabrizius in advance of any major din work to build the location. Upon receipt of each $3,000 consideration Fabrizius agrees to execute a"Damage Payment Receipt and Waiver"for each drillsite in the same form attached hereto as Exhibit"B"to this Surface Owners Agreement,which Exhibit is made a part of this Surface Owner Agreement for all purposes. 2. Overriding Royalty Assignment In the event WPI drills a well on the Fabrizius Lands and the mineral estate is not covered by the Fabrizius Lease, (in other words Fabrizius has no minerals in the drillsite spacing unit), WPI agrees to assign Fabrizius a 1.0%of 8/8ths overriding royalty interest. If WPI's interest in the drillsite is less than the entire interest,or if the applicable oil and gas lease(s) cover I ess than the entire fee title,then the above overriding royalty interest shall be reduced proportionately. Upon execution of this Surface Owner Agreement WPI will assign Fabrizius a 1.0%of 8/8ths overriding royalty interest in the Weld#5-28 Well and associated Weld County Oil and Gas Lease. Said Assignment of Overriding Royalty is attached hereto as Exhibit "C". 3. Right-Of-Way Agreement In the event a Right-Of-Way, ("ROW"), across the Fabrizius Lands is needed for roads, pipelines,etc.by WPI,WPI and Fabrizius agrees to execute a formal ROW agreement in the same forms attached hereto as Exhibit"D"(for Pipelines)and Exhibit"E"(for Roads)to this Surface Owners Agreement, which Exhibits are made a part of this Surface Owner Agreement for all purposes. WPI agrees to pay Fabrizius $.50 per foot as consideration for said ROWs. 111111111111111111111111111111111111111111 11111 1111111 3499547 08/24/2007 01:55? Weld County, CO 1 of 13 R 66.00 0 0.00 Steve Moreno Clerk& Recorder 11111111111111111111111 IIII 11111111111 III 11111 IIII 1111 3499647 08/24/2007 01:55? Weld County, CO 2 of 13 R 66.00 D 0.00 Steve Moreno Clerk& Recorder 4. Term of Agreement For a term often years from the date hereof,and as long thereafter as WPI,its successors and assigns, shall operate any oil and gas wells,maintain any roads or pipelines,any structures, equipment,appliances and appurtenances upon the Fabrizius Lands,together with the right of free ingress and egress to and from said premises. This shall be a covenant running with the land and shall burden the land and the successors,heirs or assigns of WPI and Fabrizius for the term of the Surface Owner Agreement. // IN WITNESS WHEREOF: Executed this /91I day of JCI — ,2007,but made effective as of June 14, 2007. WALSH PRODUCTION,INC. Dean . Gackle, Vice President WILLIAM FABRIZIUS VELERIA M. FABRIZIUS 1/7.... Acknowledgments STATE OF COLORADO ) )ss. COUNTY OF LOGAN ) The foregoing instrument was acknowledged before me this hill day of (J — 2007, By Dean It. Gackle,as Vice President of Walsh Production, Inc. WITNESS my hand and official seal al„ \fai d ' t• 1ta fission expires: 2,�S ' 0n p1 p Notary Public. >? : STATE OF COLORADO ) )ss. COUNTY OF ) The foregoing instrument was acknowledged before me this �9 day of QOM- 2007,By William and Veleria M. Fabrizius. ,G i JCWITNESS my hand and official seal •�pT/.Ry A�tcl * ; My eemmissioq ekpires:W Z/461/41P Notary Public. �' n. Bl tC AID ID 11111 111111111111 IIII 1111 11111 III 11111 IIII IIII 3499547 08/24/2007 01:55P Weld County, CO 3 of 13 R 66.00 D 0.00 Steve Moreno Clerk& Recorder EXHIBIT A Attached to and made a part of the certain SURFACE OWNER AGREEMENT dated effective June 14, 2007, by and between Fabrizius and WPL LEASE lar " " OIL AND GAS LEASE 2004 ydb.exm AOREIRUNT.leads anodiseanodise, b-.r 14th ._aye( rtrtn William F. Fabrizius end Veleria N. f abrizius, husband and wife ear ddm,in 61184 WCR 89. Grover, CO 80729 met Ste mace L 'x,(dsmr tee d.a.)add Wan A.hal.e ha edam pea em a.deer bra me.30,pah{,cda.bnelfl,Iwda0a std taon: WTARURih.Rd b L .fat end h wlliSS.*road irg Sies Nth be bdfa It mil/el tab be bwdy.dmsdedpd alb oaa..bd yns0.ois Wmwr Sac pupae flS Mn%ow*p tine siadygaut 060180 dlrv,*ad Nathan death.vabaabdw riptbbpupae dwbii-vlm. ddedamdsda •dept10osbdPtl'rlslU aWp'oa Wli0.s WWW rmnss eLwhbtibtryd Re*ixpM Nom,. dwgv..teem msu come,awe w..clt medtlidpa*ah a Sid*strand Ididdibamyd Neld SW.dOd.de dm+iW a fonm.•w.i.: Township 11 North, Mange 61 West, 6th. P.M, section 22; 51/251/2, SW1/45t1/4, b1W1/4NN1/4, 51/25W1/4 leas 10 acres as described in hook 419, page 17, Township 10 North, Range 61 West, 6th P.M. 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Bills 8241771 12/2712004 12:10 Weld County,CO 1 of 3 A 11.00 D 0.00 Sam Mono Clerk 4 Nwmder Y /// / /des�4/(Q/al Veleria M. Fabrizius� /) • 111111111111111111111111 liii 11111111111 III 11111 IIII Ill! 3499547 08/24/2007 01:55P Weld County, CO • 4 of 13 R 66.00 D 0.00 Steve Moreno Clerk&Recorder STATE OF COLORADO ) ACKNOWLEDGMENT-INDIVIDUAL WELD )ss. COUNTY Of BEFORE ME,The mdeeeiw,cd a Notary Public la and for said County Ind State,ten thia day of Be ._i 20,4 pavuWlytppeved William P. Fabrizius and Velar's M. Fabrizius, husband and wi ae to me known m be the idertial person t,described in and who emend the within end! - erwyltinp and acknowledged to Inc RIMS duly executed the Omen theft-fac and kr the ave therein sat forth. ,�ee� _Peep wWITNESS WHEREOF,I have hereunto ammyland Yw/ 00'not the year tad then written. My oammssia apirra: APRIL 4,2001 (t ESFC:A S.\ J twr MAAS ' Public if (.•:11: STATE OP_ ) ACKNOWLEDGMENT-INDIVIDUAL )a. COUNTY OF ) BEFORE:ME,The undersigned,ableary Public In and kr aid Canty end Stale.on this day of 200_., FermemBY.Ppwed In me 6owe to be the blended paraon__,daalbed in nod who cxccwod tin within and ferepoing Instrument of writing and sannwledged to me that__ddy executed are Inc is free and voluntary act and dctd for the uses end purposes thotein sat forth N WITNESS WHEREOF,I have mec uto sot my hand end affixed my notarial real the day and scar last above written. My commission expires: Notary Public AddIessL..._� • STATE OF ) ACKNOWLEDGMENT-CORPORATION COUNTY OF 1 On Ws,day of ._.200 bafae me pasmsllyeperd tome personally known,Win,being by ae duly away did say that hcitthe _ of and that the real affixed to said instrument is the aeperme seal of said capaadai end that mid instrument was stated and sold in behalf ofsaid corporation by authority of Its Bard of Directors,and aid eaporation r said ecbowldgd said iaaumer to be free a and deed of said corporation. WITNESS my had and seal the date end year last above written. My commission expires: Notary Public Addrnr . 1111111111111111111111111111�I1111III1111111IIII --- 3446778 12/47/2004 12:164 Wald County,CO 2 of 3 R 18.00 D 0.00 6uw Wino Clerk!Reeolder . I I ��S 1 . 1 2 e 1 € l a m� • 1111111111111111111111111111?INIII Ilitl HE MB 3245 11:16P Weld Must CO 3 of 73 11110 00 00 0.00 Nam Norm Chub 8 rise ter • / ADDENDUM /// Attached to and made a part of that certain Oil and Gas Lease dated October 14,2004 by an between William F. Fabrizius end Valerie M. Fabrizius as lessor and Walsh Production, Inc. as lessee. Anything to the contrary herein notwithstanding 1. Pursuant to the orders, ruins and regulations of the Colorado State Oil and Gas Conservation Commission, prim to commencement of any operations being conducted on said lands by Lessee, Its successors, or assigns, Lessors shall be contacted end advised of the proposed operations, access route end timing. All operations and access shall be conducted in such a manner as to minimize conflicts with Lessors farming or ranching operations. In the event Lessee's operations result in permanent production facilities Lessee agrees,when requested by Lessor,to fence said facility to prevent injury of livestock.Whenever possible, Lessee shall utilize existing roads. 2. Lessee shell comply with as orders, rules and regulations of the Colorado State Oil arid Gas Conservation Commission and agrees that it will restore ell lands utilized In its drilling activities as to near Its former conditions as practicably possible, including,said restoration shall commence as soon as practicably possible as allowed by weather and soil conditions. SIGNED FOR IDENTIFICATION: William F.Fabrizius r1u eid` - Valerie M.Fabtizius I 111111 VIII 111111111111111111111111 III 11111 IIII 1111 3498647 06/24/2007 01:55P Weld County, CO 5 of 13 R 66.00 D 0.00 Steve INoreno Clerk&Recorder 111111111111111111111111 I I I 111111111111 I I 111111 I I I 1101 3499547 08/24/2007 01:55P Weld County, CO 6 of 13 R 66.00 0 0.00 Steve Moreno Clerk& Recorder r� AMENDMENT OF DESCRIPTION IN LEASE Whereas,we the undersigned.as!Odors.did udder date of October 14,2004 make and execute unto Walsh Production,Inc,as lessee,ow certain oil and gas lease,covering certain lands owned by us,situated in Weld County,State of Colorado,and deeaihae in UP ease as follows,to wit Thematic 11 Nddh,Rate 61 West,ee P.M. Section 28;E1/2E1/2,SW1MSE1/4.NW/MNW1M,$126WIM less 10 acres as desalbed In book 419,page 17. I°I6lmlai 10 North.Rance 61 West.Se P.M. Section 3:N12,N12N12612 and scorning 710.00 acres,more or leas. Said lease recorded In reospilon number tithe records of said County and WHEREAS,sail description S kwamplete and Indetinae,and the lands Intended to be covered by said lease are more accurately aerated as follows,to wit: Townehio 11 Non'.Rands 61]Nest.6'P.M. Section 13:N12.SE1M Section 24:W1/2 Section 20:W1/2,NE1/4 Seaton 2e:E1/2E1/2,6W1/488114,NWI/4NWf/4,8128W1/4 less 10 acts as described in book 419,page 17. Section 34:W12 Townshio to f&,Th.Rance 91'Wed a'P d. Section 4:NE11 Nt/2N1/2812 I l4IIp II�'4II'II�'Y'll� ��'1II1 III Section NET/4 IjJI I0 u+ and conalabdrg 2,470.00 saes,tae or leas;. 1?/27/YOW 1Y:76p Mean Okdn 8 Amiga In said County and State: NOW THEREFORE,in consideration of the premises.and for the purpose of making the said lease more definite and certain in respell to the Identity of the lands Wended to be covered thereby,we do betty daces that it was and is our intention to lease tor oil and gas purposesthe Cerium'tract of land last stove described;and we hereby amend.said lease in rasped tore description of the lands included therein,as aforesaid,and ratify and adopt the same as so amended. Executed this 801 day of Decanter.2004. William F.Fabdz Valada M.Fediziut STATE OF COLORADO )as. COUNTY OF WELD Before me the undersigned,a Notary Public,vM'in and for said County and State on this 'day of December,2004,personally appeared William F.Padizka and VaNda M..Fabritus,to me personally known to be the identical persons who wweded the within and foregoing Instrument and acknowledged to me at they executed the some as their free and voluntary act and deed forte uses aid purposes therein set forth. �s''4'"•cM' WITNeSS WHEREOF.I have hereunto set my hand and official seal the day and year lad above written. n t .o-a.6- i Notary Pu 'y % �'VBU .r.) ' y� ��/ after recording return to: 44 eCOMIl0ep420UE t taC Bison Energy Corp Or co- ,r' C..Zi'� I. [+.0. Doe 3234 """"" Littleton, co 80161 EXHIBIT B Attached to and made a part of the certain SURFACE OWNER AGREEMENT dated effective June 14, 2007,by and between Fabrizius and WPI. DAMAGE PAYMENT RECEIPT AND WAIVER KNOW ALL MEN BY THESE PRESENTS: The undersigned represents and warrants to be the Owner of the (description of land) ,Weld County,Colorado,and that for and in consideration of the payment of Three Thousand Dollars($3,000.00) by Walsh Production,Inc.,hereinafter referred to as"WPI", receipt of payment which is hereby acknowledged,does hereby release,discharge and acquit said WPI from all liability to the undersigned for damages claimed by the undersigned arising or caused by the drilling,completing, surface and drilling pit reclamation,setting ofpumping unit and/or other method of producing,burying of lines,constructing battery facilities and roads for the (name of wellLto be located in the (well legal location) in Weld County, Colorado. If cattle will be present in the pasture during drilling operations WPI agrees to fence the pits for the drilling rig and install cattle guards as needed. Drilling mud will be allowed to dry in the open pits prior to burial and final reclamation.All disturbed fencing will be repaired to landowners satisfaction. The undersigned hereby acknowledges that the drilling consultation requirement for the Fabrizius #1-28 Well, as set forth in the Colorado Oil and Gas Conservation Commission's Rule 306 a., has taken place. EXECUTED this day of SURFACE OWNER William F. Fabrizius OPERATOR WALSH PRODUCTION,INC. By: Dean R.Gackle,Vice President 1111111111111111111111111111 11111111111 III 11111 III! IIII 3499547 06/2412007 01:55P Weld County, CO 7 of 13 R 66.00 0 0.00 Steve Moreno Clerk& Recorder 1111111 11111 111111111111101 111111 11111 III 11111 111111 3499547 08/24/2007 01:55P Weld County, CO 8 of 13 R 66.00 D 0.00 Steve Moreno Clerk& Recorder EXHIBIT C Attached to and made a part of the certain SURFACE OWNER AGREEMENT dated effective June 14,2007, by and between Fabrizius and WPL ASSIGNMENT OF OVERRIDING ROYALTY INTEREST For Ten Dollars($10.00)and other good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged,WALSH PRODUCTION,INC.,P.O.Box 30,Sterling,CO 80751,(herein called"Assignor"),does hereby convey,transfer,assign,and set over unto William and Veleria M.Fabrizius, husband and wife,whose mailing address is 61184 WCR 87,Grover,CO 80729,(herein called"Assignee") a ONE PERCENT OF EIGHT-EIGHTS (1.0% of 8/8ths) of all oil, gas, casinghead gas and other hydrocarbon substances produced, saved arid marketed from the lands described on Exhibit"A" attached hereto and made a. part hereof, under the provisions of the lease(s) described on Exhibit "A", said lands located in Weld County, State of Colorado,as an overriding royalty,free and clear of all cost and expense of development and operation thereof, except taxes applicable to said overriding royalty interest and the production therefrom. To have and to hold the interest herein transferred and assigned unto Assignee,their heirs,devisees, personal representatives,successors and assigns,forever,subject only to the following terms and provisions: that A. The overriding royalty interest herein transferred is payable out of and only out of the oil and gas produced, saved and marketed,pursuant to the terms and provisions of the applicable lease(s)as described on Exhibit"A". B. The overriding royalty interest herein provided for shall not,in any event,be paid or accrued upon any oil,gas,casinghead gas and other hydrocarbon substances used for operating,development or production purposes upon the said described lands or unavoidably lost;and no overriding royalty shall be paid upon gas used for repressuring or recycling operations benefitting said lands. C. This assignment of overriding royalty is made without warranty of title, either expressed or implied. D. If Assignors interest in the oil and gas lease(s) described on Exhibit"A"is less than the entire interest, or if said oil and gas lease(s)cover less than the entire fee title, then the above overriding royalty interest shall be reduced proportionately. In witness whereof, Assignor has executed and delivered this assignment of overriding royalty interest as of this 14th day of June, 2007. WALSH PRODUCTION,INC. William M. Walsh President STATE OF COLORADO ) ss. COUNTY OF_ _) On this__day of ,2007, before me personally appears William M. Walsh, President of Walsh. Production, Inc., who being duly sworn by me, acknowledged that he executed the foregoing instrument at his act and deed for the uses and purposes therein stated. Witness my hand and official seal. Notary Public My commission expires: 11111111111111111111111 111111 IIIII III HIM 3499547 06/24/2007 01:558 Weld County, CO 9 of 13 R 66.00 0 0.00 Steve Moreno Clerk 8 Recorder EXHIBIT "A" Attached to and made a part of that certain ASSIGNMENT OF OVERRIDING ROYALTY dated effective June 14,2007 by and between Walsh Production, Inc. as Assignor and William and Veleria M. Fabrizius as Assignee. LOCATED IN WELD COUNTY, COLORADO Lessor: Weld County, Colorado Lessee: Walsh Production, Inc. Date: February 9, 2005 Recording: Not Recorded Description: Township 11 North,Range 61 West,6'h P.M. Section 28: W/2NE/4, SW/4NW/4, E/2NW/4,N2SW/4,NW/4SE/4 • EXHIBIT D Attached to and made a part of the certain SURFACE OWNER AGREEMENT dated effective June 14,2007, by and between Fabrizius and WPL RIGHT OF WAY AND EASEMENT AGREEMENT (PIPELINE) KNOW ALL MEN BY THESE PRESENTS:That the undersigned(hereinafter called"OWNER",whether one or more),for and in consideration of the sum of Ten&More Dollars($10.00+)in hand paid,the receipt of which is hereby acknowledged,does hereby grant,sell and convey unto Walsh Production,Inc.,PO Box 30,Sterling,Colorado 80751, its successors and assigns,hereinafter called ("COMPANY"),a right of way and easement Thirty feet(30') in width reduced to Twenty feet(20')after construction for the purposes of laying,constructing,maintaining,operating,repairing, replacing and removing pipelines(with fittings,tie-overs,cathodic protection equipment and all appliances appurtenant thereto)for the transportation of oil,gas or any other liquids or substances for COMPANY'S operations across lands of OWNER,situate in the County of Weld,State of Colorado described as follows: (Legal description of land) Note:(description of ROW) COMPANY shall have two (2) years from the date hereof to begin initial installation and construction, If COMPANY does not begin initial installation and construction within two(2)years from the date hereof,OWNER shall retain all bonus consideration paid and shall have no obligation to reimburse COMPANY. This shall be a covenant running with the land and shall burden the land and the successors,heirs or assigns of OWNER and COMPANY. COMPANY shall bury the top if its pipe at least forty (40) inches below the surface of the ground. The undersigned OWNER,his successors,heirs or assigns,reserves all oil,gas and minerals on and under said lands and the right to farm,graze and otherwise fully use and enjoy said lands,provided,however,that COMPANY shall have the right hereafter to cut and keep clear all trees,brush and other obstructions that may injure,endanger or interfere with the construction and use of said pipelines, or fittings, tie-overs, cathodic protection equipment and appliances appurtenant thereto. COMPANY shall have all privileges necessary or convenient for the full use of the rights herein granted,together with ingress and egress along said pipelines and over and across said lands described. COMPANY agrees to comply with all applicable state and local regulations. COMPANY shall indemnify,defend and save and hold harmless OWNER from any and all claims,demands, causes of action,or liability for damages,loss or injuries that arise out of COMPANY'S operations on the land. COMPANY shall restore the land as soon as practicable after the pipelines are completed. Restoration shall be made as near as possible to the condition when COMPANY first entered onto the land. OWNER hereby warrants and agrees to defend the title to the above described premises. OWNER shall have the use of such right of way and easement except for any use which conflicts with the purposes for which this right of way and easement is granted; provided, however, OWNER shall not build or construct nor permit to be built or constructed any building or other improvement over or across said right of way and easement except necessary fencing. TO HAVE and HOLD said right of way and easement unto said COMPANY,its successors and assigns,until such pipelines are constructed and so long thereafter as a pipeline is maintained thereon;and the undersigned hereby bind themselves, their heirs, executors, administrators, successors and assigns, against every person whomsoever lawfully claiming or to claim the same,or any part hereof. Executed this day of OWNER COMPANY WILLIAM FABRIZIUS WALSH PRODUCTION,INC. By: Dean It Gackle Title:Vice President 11111 11111 111I 11111 Mal 111111 BUM 1111 3499547 00/24/2007 001,05P Weld County, co 10 of 13 R 66.00 D Steve Moreno Clerk& Recorder Acknowledgments STATE OF COLORADO )ss. COUNTY OF LOGAN The foregoing instrument was acknowledged before me this day of ,By Dean R.Gackle,as Vice President of Walsh Production,Inc. WITNESS my hand and official seal My commission expires: Notary Public. STATE OF )ss. COUNTY OF The foregoing instrument was acknowledged before me this day of , ,By William Fabrizius. WITNESS my hand and official seal My commission expires: Notary Public. IIIn 111111 1111 007 1111 111111 I�III III 11lu?11111II 3499547 11 UI 13 R 66.00 0 0.00 Steve Moreno Clerk&Recorder EXHIBIT E Attached to and made a part of the certain SURFACE OWNER AGREEMENT dated effective June 14, 2007, by and between Fabrizius and WPL RIGHT OF WAY AND EASEMENT AGREEMENT (ROADWAY) KNOW ALL MEN BY THESE PRESENTS: That the undersigned(hereinafter called"OWNER",whether one or more),for and in consideration of the sum of Ten&More Dollars($10.00+)in hand paid,the receipt of which is hereby acknowledged,does hereby grant,sell and convey unto Walsh Production,Inc.,PO Box 30,Sterling,Colorado 80751, its successors and assigns,hereinafter called("COMPANY"),a right of way and easement(the"Easement")Thirty feet (30')in width for roadway purposes,over and across the lands(the"Lands")of OWNER,situate in the County of Weld, State of Colorado described as follows: f Legal description of land) Note:(description of ROW) This Easement is granted for the purpose of affording COMPANY (description of access and purpose) This Easement shall exist for the life of the Lease,to which reference is made for its terms and provisions. COMPANY shall only use so much of the Lands as are reasonably necessary for access to the lands covered by the Lease and shall use existing roadways whenever possible. The consideration paid to OWNER by COMPANY for the execution and delivery of this Easement is deemed fill payment for COMPANY's use of such Easement during its entire term. COMPANY shall have two(2)years from the date hereof to begin construction,If COMPANY does not begin initial construction within two(2)years from the date hereof,OWNER shall retain all bonus consideration paid and shall have no obligation to reimburse COMPANY. This shall be a covenant miming with the land and shall burden the land and the successors,heirs or assigns of OWNER and COMPANY. COMPANY shall indemnify,defend and save and hold harmless OWNER from any and all claims,demands, causes of action,or liability for damages,loss or injuries that arise out of COMPANY'S operations on the land. OWNER.hereby warrants and agrees to defend the title to the above described premises. OWNER shall have the use of such right of way and easement except for any use which conflicts with the purposes for which this right of way and easement is granted; provided, however, OWNER shall not build or construct nor permit to be built or constructed any building or other improvement over or across said right of way and easement except necessary fencing. Executed this day of OWNER COMPANY WILLIAM FABRIZIUS WALSH PRODUCTION,INC. By: Dean R. Gackle Title: Vice President 1 111111 11111 111111 111111 lilt 11111111111III111111 III IIII 3499547 08/24/2007 01.55P Weld County, CO 12 or 13 R 66.00 0 0.00 Steve Moreno Clerk& Recorder • Acknowledgments STATE OF COLORADO )ss. COUNTY OF LOGAN The foregoing instrument was acknowledged before me this _day of , By Dean R.Gackle,as Vice President of Walsh Production,Inc. WITNESS my hand and official seal My commission expires: Notary Public. STATE OF _ ) )ss. COUNTY OF_ ) The foregoing instrument was acknowledged before me this day of — _,By William Fabrizius. WITNESS my hand and official seal My commission expires: Notary Public. 1111111 hill 111111 1Ut 1111 lilt��llt III 1111111111111 34gSyt7111018111200111171111,1 08/24/2007 01:56P Weld County, CO 13 of 13 R 65.00 0 0.00 Steve Moreno Clerk& Recorder • FIRST AMENDMENT TO SURFACE OWNER AGREEMENT 5i This First Amendment to Surface Owner Agreement is dated if.-Z3 , 2007, and is by and between Walsh Production, Inc., hereinafter referred to as "WPI", and William and Veleria M. Fabrizius, hereinafter collectively referred to as"Fabrizius". RECITALS: A. WPI and Fabrizius have previously entered into a Surface Owner Agreement executed June 19, 2007, but effective as of June 14, 2007 (the "Surface Owner Agreement"), covering the following lands located in Weld County, Colorado: T10N-R61W Section 3: N/2, N/2S/2, Section 4:NE/4, and Section 1]:NW/4 T11N-R61W Section 13: All, Section 23: All, Section 24: W/2, Section 26, N/2, SW/4, Section 27: All, Section 28: All, except that portion of land contained in the Grover Cemetery, Section 33: All,and Section 34: W/2 All of the lands owned by Fabrizius and described above are hereinafter referred to as "Fabrizius Lands";and B. Fabrizius and WPI desire to amend certain provisions of the Surface Owner Agreement. NOW THEREFORE in consideration of Ten Dollars and other mutual benefits derived pursuant to this Surface Owner Agreement, WPI and Fabrizius agree as follows: 1. Paragraph 2, Overriding Royalty Assignment, of the Surface Owner Agreement is hereby amended to add the following sentence to the end of Paragraph 2: "In the event that any leasehold estate, working interest or other interests of WPI under which an overriding royalty interest has been assigned to Fabrizius reverts to the mineral owner, for any reason, then the overriding royalty interest assigned to Fabrizius under such reverted interest shall terminate and cease immediately and automatically upon such reversion." 2. Exhibit "C", attached to the Surface Owner Agreement is hereby amended by deleting it in its entirety and replacing it with the attached revised Exhibit "C". IN WITNESS WHEREOF: Executed this 9-3 day of Nictrf , 2007, but made effective as of June 14, 2007. WALSH PRODUCTION,INC. ean R. Gackle, Vice President WILLIAM FABRIZIUS 4 1111111111111111111111111111111111111111111111111111111 VELERIA M. FABRIZIUS 3499548 08/2412007 01:55P Weld County, CO p y 1 of 5 R 26.00 D 0.00 Steve Moreno Clerk& Recorder / J Acknowledgments STATE OF COLORADO ) )ss. COUNTY OF LOGAN ) The foregoing instrument was acknowledged before me this a3J day of jay, „1- , 2007, By Dean R.Gackle,as Vice President of Walsh Production, Inc. C) WITNESS my hand and official seal r My commission expires: l /al/cow? Notary Pu ic. STATE OF COLORADO )ss. COUNTY OF , ) The foregoing instrument was acknowledged before me this P'+Ada day of 46 4.8.421 , 2007, By William and Veleria M. Fabrizius. UU WITNESS my hand and official seal My commission expires: 1 aki)acy,? Notary Publi . 1111111 11111 1111111111111111 11111111111111011131JB 3499548 08/24/2007 01:55P Weld County, CO 2 of 5 R 26.00 D 0.00 Stave Moreno Clerk& Recorder • EXHIBIT C Attached to and made a part of the certain SURFACE OWNER AGREEMENT dated effective June 14,2007, by and between Fabrizius and WPI. ASSIGNMENT OF OVERRIDING ROYALTY INTEREST For Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, WALSH PRODUCTION, INC., P.O. Box 30, Sterling, CO 80751, (herein called "Assignor"),does hereby convey, transfer, assign, and set over unto William and Veleria M. Fabrizius, husband and wife, whose mailing address is 61184 WCR 87, Grover, CO 80729, (herein called "Assignee") a ONE PERCENT OF EIGHT-EIGHTS (1.0% of 8/8ths) of all oil, gas, casinghead gas and other hydrocarbon substances produced, saved and marketed from the lands described on Exhibit "A" attached hereto and made a part hereof, under the provisions of the lease(s) described on Exhibit "A", said lands located in Weld County, State of Colorado, as an overriding royalty, free and clear of all cost and expense of development and operation thereof, except taxes applicable to said overriding royalty interest and the production therefrom. To have and to hold the interest herein transferred and assigned unto Assignee, their heirs, devisees, personal representatives, successors and assigns, forever, subject only to the following terms and provisions: that A. The overriding royalty interest herein transferred is payable out of and only out of the oil and gas produced, saved and marketed, pursuant to the terms and provisions of the applicable lease(s) as described on Exhibit"A". B. The overriding royalty interest herein provided for shall not, in any event, be paid or accrued upon any oil, gas, casinghead gas and other hydrocarbon substances used for operating, development or production purposes upon the said described lands or unavoidably lost; and no overriding royalty shall be paid upon gas used for repressuring or recycling operations benefitting said lands. C. This assignment of overriding royalty is made without warranty of title, either expressed or implied. D. If Assignors interest in the oil and gas lease(s)described on Exhibit"A" is less than the entire interest, or if said oil and gas lease(s) cover less than the entire fee title, then the above overriding royalty interest shall be reduced proportionately. E. If Assignor's interest in any of the oil and gas leases described on Exhibit"A" reverts, for any reason, to the mineral owner of the minerals covered by such leases, then upon such reversion this overriding royalty shall cease and terminate immediately and automatically upon such reversion as to the interests that reverted to the mineral owner. In witness whereof, Assignor has executed and delivered this assignment of overriding royalty interest as of this 14th day of June, 2007. WALSH PRODUCTION,INC. William M. Walsh President 111111111111111111111111111111111111111III11111lIIIIIII - 3499548 08/24/2007 01:55P Weld County, CO 3 of 5 R 26.00 D 0.00 Steve Moreno Clerk 8 Recorder STATE OF COLORADO ) )ss. COUNTY OF On this day of , 2007, before me personally appears William M. Walsh, President of Walsh Production, Inc., who being duly sworn by me, acknowledged that he executed the foregoing instrument at his act and deed for the uses and purposes therein stated. Witness my hand and official seal. Notary Public My commission expires: 111111111111 1111111111IIII11111111111 III IIIII IIII IIII 3499548 08/24/2007 01:55P Weld County, CO 4 of 5 R 26.00 D 0.00 Steve Moreno Clerk& Recorder • EXHIBIT "A" Attached to and made a part of that certain ASSIGNMENT OF OVERRIDING ROYALTY dated effective June 14,2007 by and between Walsh Production,Inc. as Assignor and William and Veleria M. Fabrizius as Assignee. 1111111 11111 111111111111 IIII 11111111111 III 11111 IIII Jill 3499548 08/24/2007 01:55P Weld County, CO 5 of 5 R 26.00 0 0.00 Steve Moreno Clerk& Recorder Hello