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MGF
OIL CORPORATION
Ninth Floor, Metrobank Building•475 Seventeenth Street • Denver,Colorado 80202•303: 534-0784
January 20, 1981
Keitha White
Weld County Commissioner
P.O. Box 459
Greeley, Colorado 80632
Re: Weld County Lease
Weld County, Colorado
N.E. Riverside #1184
Dear Ms. White:
Per our telephone conversation on January 19, 1981, we
have enclosed a copy of the Assignment from Crystal Exploration
and Production Company into MGF Oil Corporation, dated Oct. 21, 1980.
We hope this will complete your files so that the Affidavit of Lease
Extension or Production, dated December 29, 1980 may be recorded
by your office.
We are sorry for the inconvenience. Thank you for your
prompt attention to this matter.
Very truly yours,
iMG$ OIL CORPORATIO
olene Bjell'
' ease Records
Enclosures
cc: Tom David
County Attorney
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An Exploration and Production Office of MGF OIL CORPORATION Midland,Texas 800007 J
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Rec.No._113_42292
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State of Colorado, Weld County Clerk C7 Recorder
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STATE OF COLORADO Il �Q a°"'
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COUNTY OF WELD 0 � •-
ASSIGNMENT
KNOW ALL MEN BY THESE PRESENTS:
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That, in consideration of the sum of One Dollar ($1 .00) and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged CRYSTAL
^-i EXPLORATION AND PRODUCTION COMPANY, a corporation authorized to do business in the
State of Colorado, hereinafter referred to as "Crystal", and as "Assignor", hereby
u does bargain sell, assign, transfer and convey unto MGF OIL CORPORATION, hereinafter
referred to as "Assignee", all of Crystal' s right, title and interest in and to the
following referenced oil and gas lease, covering lands situated in Weld County, State
of Colorado, said lease being more particularly described as follows, to wit:
Oil and Gas Lease dated August 25, 1975
Weld County - Lessor
Charter Exploration and Production Company - Lessee
Recorded: Book 751, Reception No. 1673042, in the
County of Weld, State of Colorado records
insofar as said lease covers the following described land in said County and State, to
wit:
Township 5 North, Range 61 West, 6th P.M.
Section 21 : NE4
--Section 22: SE4
Section 28: Ez
Section 34: Sk
subject to the following terms , covenants and conditions :
1. The lease acreage covered hereby is assigned by the Assignor and accepted by
the Assignee subject to the overriding royalties , production payments , net profits
obligations, carried working interests and other payments out of or with respect to
production which are of record and with which said lease acreage is encumbered; and
the Assignee hereby assumes and agrees to pay, perform or carry, as the case may be, each
of said overriding royalties, production payments , net profits obligations , carried
working interests and other payments out of or with respect to production, to the ex-
tent that it is or remains a burden on the lease acreage herein assigned.
2. rot in addition to but including therein any and all other overriding roy-
alties , production payments and other encumbrances to which said lease acreage may be
subject , the Assignor hereby excepts and reserves unto itself, its successors or assigns,
an overriding royalty of 5 .0% of 8/8ths of all oil, gas and associated liquid hydro-
carbons produced and saved from said lease acreage under said lease, the market value
(at the well) of which shall be paid to Crystal free of all cost and expense, except
taxes on production.
3. With respect to the overriding royalty herein excepted and reserved by Crystal,
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C 1842797
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Crystal and Assignee agree, as follows:
(a) That oil and gas used in drilling and operations on said lease acreage
and in the handling of production therefrom shall be deducted before said over-
riding royalty is computed.
(b) That Assignee shall furnish to Crystal authentic itemized monthly reports
of all production from said lease acreage, such reports to be mailed not later
than the fifteenth day of the month following that for which the report is made.
(c) That in the event said lease covers less than all the oil and gas mineral
rights in and to the land described in said lease and covered by this conveyance,
said overriding royalty shall be proportiontely reduced so as to be equal to that
proportion of 5.0% of 8/8ths which the interest in and to said oil and gas rights
in the land described in said lease and covered by this conveyance bears to the
full and undivided oil and gas mineral estate herein.
(d) This conveyance is hereby made subject to that certain Farmout Contract
between the parties hereby dated July 16, 1980, covering the above described and
other lands.
4. In the event that Assignee should elect to surrender, abandon, or release all
or any of its rights in said lease acreage, or any part thereof, Assignee shall notify
Assignor not less than thirty (30) days in advance of such surrender, abandonment, or
release and, if requested so to do by Assignor, Assignee immediately shall reassign
such rights in said lease acreage, or such part thereof, to Assignor, subject only to
the overriding royalties and lease burdens in existence at the time Assignee acquired
its interest from Assignor and free and clear of all overriding royalties , lease burdens
or encumbrances created, conveyed or made by Assignee, its successors or assigns.
5. This conveyance is made subject to all the terms and the express and implied
covenants and conditions of said lease, to the extent of the rights hereby assigned,
which terms , covenants and conditions Assignee hereby assumes and agrees to perform
with respect to the lands covered hereby. Said terms, covenants and conditions , insofar
as the said lease acreage is concerned, shall be binding on Assignee, not only in favor
of the lessor but also in favor of Crystal and its successors and assigns .
6. This conveyance is made without warranty of any kind.
7. All notices, reports and other communications required or permitted hereunder,
or desired to be given with respect to the rights or interest herein assigned or reserved,
shall be deemed to have been properly given or delivered when delivered personally or
when sent by certified mail or telegraph, with all postage or charges fully prepaid,
and addressed to Crystal and Assignee, respectively, as follows :
Assignor: Crystal Exploration and Production Company
One Park Central
1515 Arapahoe Street
Suite 405
Denver, Colorado 80202
Assignee: MGF .Oil Corporation
475 Seventeenth Street
Suite 900
Denver, Colorado 80202
8. CRYSTAL EXPLORATION AND PRODUCTION COMPANY reserves and excepts unto itself, its
successors and assigns, the option and exclusive right at any time, at all times and
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from time to time, to purchase 50% of all oil produced and saved from said lease
acreage. Payment for any oil purchased hereunder shall be made at the prevailing price
for production of similar kind and quality prevailing in the field or area where
produced on date of delivery. CRYSTAL EXPLORATION AND PRODUCTION COMPANY further reserves
the right of first refusal to purchase 100% of all gas, casinghead gas and distillate
produced and saved from said lease acreage. Said right shall be attributable to each
governmental quarter section as it applies, in which a well is completed as a prdducer
capable of producing gas , and shall be for a period of ninety (90) days from notification
in writing by MCF that said well has been completed for production, and is awaiting sales
connection.
The base price for all gas, casinghead gas, and distillate purchased and delivered
to Crystal from the lease acreage pursuant to the above right of first refusal, shall
be at the highest price offered by a third party bona fide purchaser, including adjust-
ments and escalation for production of similar kind and quantity.
Failure by Crystal to purchase and deliver the gas, casinghead gas and distillate
from the lease acreage, within the ninety (90) days as hereinabove mentioned and in
accordance with the terms and conditions of the contract, shall be considered an
election by Crystal not to exercise their right of first refusal. In such case Crystal
shall have relinquished all their rights to purchase the gas attributable to that
particular governmental quarter section as it applies and as hereinabove described.
9 . The terms, covenants and conditions hereof shall be binding upon, and shall
inure to the benefit of, Crystal and Assignee and their respective successors and
assigns; and such terms , covenants and conditions shall be covenants running with
the lands herein described and the lease acreage herein assigned and with each transfer
or assignment of said land or lease acreage.
TO HAVE AND TO HOLD said lease acreage unto Assignee, his or its successors , heirs
and assigns, subject to the terms, covenants and conditions hereinabove set forth.
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vANTEED ehig -te day of COSIt"/r#(1980.
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ATTEST: t i r CPA CRYSTAL EXPLORATION AND PRODUCTION COMPANY
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I Xl Richard D. Miler VicePresident
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STATE OF LOUISIANA )
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PARISH OF CADDO )
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On this 2 :� i• , 1980, before me personally appeared
.' day
to me personally known, who being by me duly sworn,
did say that he is the Vice President of Crystal Exploration and Production Company and
that the seal affixed to said instrument is the corporate seal of said corporation and
that said instrument was signed and sealed in behalf of said corporation by authority
of its Board of Directors , and said / ". /„.c ./ /) N-) : /, _r acknowledged said instru-
ment to be the free act and deed of said corporation. ao
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Notary Public lila& 11(0.7/ }.rO a ,� ?Pub'uc
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(Seal) My Commission etx ies : "174z,), J h/. i ,4"e
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