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Home My WebLink About20042144 a 4191' DEPARTMENT OF PLANNING SERVICES PHONE (970) 353-6100, EXT.3540 FAX (970)304-6498 1555 N. 17TH AVENUE O GREELEY, COLORADO 80631 COLORADO August 12, 2003 TO: SURROUNDING PROPERTY/MINERAL OWNERS CASE NUMBER: PZ-521 There will be a Public Hearing before the Weld County Planning Commission on Tuesday, September 16, 2003, at 1:30 p.m.,at the Southwest Weld County Complex,4209 CR 24%, Longmont, Colorado concerning the request of: NAME: Don & Linda Owens - Gloraloma Estates FOR: Change of Zone from A(Agricultural)to PUD for 19 lots with Estate Uses along with 15 acres of open space in addition to 36 acres of open spaces and equestrian uses located on Tract A. LEGAL DESCRIPTION: Lot B RE-1921; part SE4 Section 9, T2N, R67W of the 6th P.M., Weld County, Colorado. LOCATION: North of and adjacent to CR 22; west of and adjacent to CR 19. Your property is within five-hundred (500) feet of the property on which this request has been made or you may have an interest in the minerals located under the property. For additional information write or telephone Chris Gathman, Planner. Comments or objections related to the above request should be submitted in writing to the Weld County Department of Planning Services, 1555 N. 17th Avenue, Greeley, Colorado 80631, on or before the date of public hearing. For your convenience, the Department of Planning Services has instituted a Planning Commission Agenda Phone Line. In some circumstances cases need to be continued to a later date. To ensure that this case is being heard, you may call 970-304-6499, up to the day of the scheduled hearing for this information. 2004-2144 SURROUNDING PROPERTY OWNERS AND/OR SUBSURFACE ESTATES/INTEREST OWNER PZ-521 SURFACE ESTATE OWNERS FARMERS RESERVOIR& IRRIGATION CO 80 S 27T"AVENUE BRIGHTON CO 80601 GARDNER 111 SHELLY MARIE CIRCLE ANCHORAGE AK 99515 KAUFFMAN LAND & DEVELOPMENT LLC 1675 BROADWAY SUITE 2800 DENVER CO 80202-4628 MARTIN 8592 CR24 FORT LUPTON CO 80621 PARKER TRUST C/O MC FEEDERS REALTY 221 W PLATTE AVENUE FORT MORGAN CO 80701 SPRAGUE .-. 2450 AIRPORT ROAD #M1124 LONGMONT CO 80503 STALCUP 10475 CR 19 FORT LUPTON CO 80621 STREAR FARMS CO C/O CON AGRA INC 1 CON AGRA DRIVE CC 362 OMAHA NE 68102-5001 STREAR FARMS CO 6825 E TENNESSEE AVE BLDG 1 #235 DENVER CO 80224 MINERALS AND/OR SUBSURFACE OWNERS ECKSTINE 2745 DEBRA LANE CORPUS CHRISTI TX 78418 FARMERS RESERVOIR& IRRIGATION CO 80 S 27T"AVENUE BRIGHTON CO 80601 EN CANA ENERGY RESOURCES INC 950 17T"STREET SUITE 2600 DENVER CO 80202 PATINA OIL & GAS CORP 1625 BROADWAY SUITE 2000 ."` DENVER CO 80202 KERR MCGEE ROCKY MOUNTAIN CORP 1999 BROADWAY SUITE 3600 DENVER CO 80202 BOUDREAU 1414 10TH STREET LAKE CHARLES LA 70601 DEGENHART 6505 160TH AVENUE BRIGHTON CO 80602 FIELD 2440 PALMER AVENUE NEW ORLEANS LA 70118 HILL PO'BOX 425 CLARENDON TX 79226 HOOVLER 805 MEADOW RUN GOLDEN VO 80403 LOWREY rte'` BOX 70 MT NACHES ROUTE WOODVILLE TX 75979 CERTIFICATE OF MAILING I hereby certify that I have placed a true and correct copy of the surrounding property owners and owners and lessees of minerals in accordance with the notification requirements of Weld County in Case Number PZ-521 in the United States Mail, postage prepaid First Class Mail by letter as addressed on the attached list this 12'" day of August, 2003. DCULDO Donita May C a tjl" DEPARTMENT OF PLANNING SERVICES ' PHONE (970) 353-6100, EXT.3540 FAX (970)304-6498 1555 N. 17TH AVENUE O GREELEY, COLORADO 80631 COLORADO July 30, 2003 TO: SURROUNDING PROPERTY/MINERAL OWNERS CASE NUMBER: PZ-521 There will be a Public Hearing before the Weld County Planning Commission on Tuesday, September 16, 2003, at 1:30 p.m.,at the Southwest Weld County Complex,4209 CR 24'/:, Longmont,Colorado concerning the request of: NAME: Don & Linda Owens - Gloraloma Estates FOR: Change of Zone from A(Agricultural)to PUD for 20 lots with Estate Uses. LEGAL DESCRIPTION: Lot B RE-1921; part SE4 Section 9, T2N, R67W of the 6th P.M., Weld County, Colorado. LOCATION: North of and adjacent to CR 22;west of and adjacent to CR 19. Your property is within five-hundred (500)feet of the property on which this request has been made or you may have an interest in the minerals located under the property. For additional information write or telephone Chris Gathman, Planner. Comments or objections related to the above request should be submitted in writing to the Weld County Department of Planning Services, 1555 N. 17th Avenue, Greeley, Colorado 80631, on or before the date of public hearing. For your convenience, the Department of Planning Services has instituted a Planning Commission Agenda Phone Line. In some circumstances cases need to be continued to a later date. To ensure that this case is being heard, you may call 970-304-6499, up to the day of the scheduled hearing for this information. r SURROUNDING PROPERTY OWNERS AND/OR SUBSURFACE ESTATES/INTEREST OWNER PZ-521 SURFACE ESTATE OWNERS FARMERS RESERVOIR& IRRIGATION CO 80 S 27T"AVENUE BRIGHTON CO 80601 GARDNER 111 SHELLY MARIE CIRCLE ANCHORAGE AK 99515 KAUFFMAN LAND & DEVELOPMENT LLC 1675 BROADWAY SUITE 2800 DENVER CO 80202-4628 MARTIN 8592 CR 24 FORT LUPTON CO 80621 PARKER TRUST C/O MC FEEDERS REALTY 221 W PLATTE AVENUE FORT MORGAN CO 80701 SPRAGUE , --, 2450 AIRPORT ROAD#M1124 LONGMONT CO 80503 STALCUP 10475 CR 19 FORT LUPTON CO 80621 STREAR FARMS CO C/O CON AGRA INC 1 CON AGRA DRIVE CC 362 OMAHA NE 68102-5001 STREAR FARMS CO 6825 E TENNESSEE AVE BLDG 1 #235 DENVER CO 80224 MINERALS AND/OR SUBSURFACE OWNERS ECKSTINE 2745 DEBRA LANE CORPUS CHRISTI TX 78418 FARMERS RESERVOIR& IRRIGATION CO 80 S 27T"AVENUE BRIGHTON CO 80601 EN CANA ENERGY RESOURCES INC ,^ 950 17T" STREET SUITE 2600 DENVER CO 80202 r PATINA OIL & GAS CORP 1625 BROADWAY SUITE 2000 DENVER CO 80202 KERR MCGEE ROCKY MOUNTAIN CORP 1999 BROADWAY SUITE 3600 DENVER CO 80202 BOUDREAU 1414 10TH STREET LAKE CHARLES LA 70601 DEGENHART 6505 160TH AVENUE BRIGHTON CO 80602 FIELD 2440 PALMER AVENUE NEW ORLEANS LA 70118 HILL PO BOX 425 CLARENDON TX 79226 HOOVLER 805 MEADOW RUN GOLDEN VO 80403 LOWREY BOX 70 MT NATCHES ROUTE WOODVILLE TX 75979 CERTIFICATE OF MAILING I hereby certify that I have placed a true and correct copy of the surrounding property owners and owners and lessees of minerals in accordance with the notification requirements of Weld County in Case Number PZ-521 in the United States Mail, postage prepaid First Class Mail by letter as addressed on the attached list this 30'" day of July, 2003. } l/U I�I�NCP Qat Donita May ` AFFIDAVIT OF INTERESTEI'1AND OWNERS ^ Page 1 of 2 AFFIDAVIT OF INTERESTED LAND OWNERS SURFACE ESTATE Subject Parcel: 131109400065 THE UNDERSIGNED, states that to the best of his or her knowledge the attached list is a true and accurate list of the names, addresses, and the corresponding Parcel Identification Number assigned by the Weld County Assessor of the owners of the property (the surface estate) within 500 feet of the property being considered. This list was compiled utilizing the records of the Weld County Assessor available on the Weld County Internet Mapping site, http://www.co.weld.co.us, and has not been modified from the original. The list compiled from the records of the Weld Coun Assesso w s assembled within thirty days of the application's submission date. `HAAS! Signature Date Property Owners Within 500 ft. of Parcel# 131109400065 NAME MAILING ADDRESS PARCEL IDENTIFICATION # COLORADO STATE OF 131116000002 EXEMPT, 80 S 27 AVE FARMERS RESERVOIR & 131109000062 IRRIGATION CO BRIGHTON,CO 80601 111 SHELLY MARIE CIR GARDNER TERRY RUTH 131109000003 ANCHORAGE,AK 99515 1675 BROADWAY SUITE 2800 KAUFFMAN LAND & 131109400064 DEVELOPMENT LLC DENVER,CO 80202-4628 8592 COUNTY RD 24 MARTIN RUTH M 131109000068 FORT LUPTON,CO 80621 8592 COUNTY RD 24 MARTIN RUTH M 131109000069 FORT LUPTON,CO 80621 8592 COUNTY RD 24 MARTIN RUTH M 131109000006 FORT LUPTON,CO 80621 C/O MCFEEDERS REALTY PARKER HELEN M COLO APPRAISAL & MGMT 131116000015 TRUST 9/16 INT & 221 W PLATTE AVE FORT MORGAN,CO 80701 http://maps.merrick.com/website/weld/setSgl.asp?cmd=buffer&PIN=1 3 1 1 09400065&Par l... 6/18/2003 AFFIDAVIT OF INTERESTEF^4ND OWNERS ^ Page 2 of 2 2450 AIRPORT RD # M1124 SPRAGUE TINA KAY 131109000005 LONGMONT,CO 80503 STALCUP RICHARD D & 10475 WELD CO RD 19 CYNTHIA A 131109000060 _ FORT LUPTON,CO 80621 C/O CONAGRA, INC STREAR FARMS CO 1 CONAGRA DR CC362 131110000011 OMAHA,NE 68102-5001 C/O CONAGRA, INC STREAR FARMS CO 1 CONAGRA DR CC362 131110000012 OMAHA,NE 68102-5001 6825 E TENNESSEE AVE BLDG 1 STREAR FARMS CO #235 131115000016 DENVER,CO 80224 http://maps.merrick.com/website/weld/setSql.asp?cmd=buffer&PIN=1 3 1 1 09400065&Par l... 6/18/2003 AFFIDAVIT OF INTEREST OWNERS MINERALS AND/OR SUBSURFACE Property Legal Description: Lot B of RE No. 1311-09-4-RE1921, Section 9, Township 2N, Range 67 West of the 6th P.M. , Weld County, Colorado. Parcel Number t�1 n I�I I 'I 1 r"1 ❑0 o-EDE (12 digit number-found on Tax I.D.information,obtainable at the Weld County Assessor's Office,or www.co.weld.co.us). (Include all lots being included in the application area, If additional space is required,attach an additional sheet) STATE OF COLORADO )ss. COUNTY OF WELD THE UNDERSIGNED, being first duly sworn, states that to the best of his or her knowledge, the attached • list is a true and accurate list of the names and addresses of all mineral owners and lessees of mineral owners !^on . or under the parcel of land which is the subject of the application as their names appear upon the real property records in the Weld County Clerk and Recorder's Office. By: Title: 4-6' � The foregoing instrument was subscribed and sworn to me this )O day of - J-t- L Llk Z Co WITNESS my hand and official seal. My Commission Expires: .?la/ OL pRY,P(/B�/ 1 t JENNIFER = 4, J N fy Public O ,,��. ZINK Poi 9rFOF CO\�-Site -16- Arlen J. Hershberger 1561 Ivy Denver, CO 80220 June 11, 2003 Kuhn, Carnes and Anderson 1525 Seventeenth Street Denver, CO 80202 Attn: Kip Anderson Re: Mineral Ownership Search Don and Linda Owens ((((((((((((((((-')))))N)))))))) LIMI 1'hD MEMORANDUM OF ABSTRACT OF TITLE The following information has been obtained from a careful search of: a.) Records of the Weld County, Colorado, Clerk and Recorder as identified by indices maintained by TransNation Title Company, Greeley, Colorado, insofar as the same pertain to the subject lands from Patent to 5-20-03. b.) Records of the Weld County, Colorado Tax Assessor DESCRIPTION OF SUBJECT LANDS: T2N-R67W, 6th P.M., Section 9: Part of the SE1/4: Lot B of Recorded Exemption No. 1311-09-4-RE 1921. * Surface: Don& Linda Owens 8585 Weld County Rd. 22 Fort Lupton, CO 80621 Parcel No.: 131109400065 -1- * Description is taken largely verbatim from the Assessor's printout and may differ in wording from the description appearing in the body of this report. INSTRUMENTS FILED OF RECORD: 1. Instrument: Deed Date: 10-5-1885 Recorded: B50 P155 Recording Date: 11-2-1885 Grantor: Trustees of the Union Pacific Railway Company Grantee: Dennis Sullivan Conveys: " . . the following described real estate . ." Description: T2N-R67W, 6th P.M.. Sections 3. 5. 7 & 9 T3N-R67W, 6th P.M., Section 33: S1/2,NW1/4 Reservation: " . . to said Company . . .all coal that may be underneath the surface of the land herein described . . ." Comments: 2. Instrument: Patent Date: 2-26-1897 Recorded: B153 P40 Recording Date: 3-18-1897 Grantor: United States of America Grantee: Union Pacific Railway Company, Successor to the Denver Pacific Railway Company Conveys: " . . the tracts of land listed . . ." Description: T2N-R67W, 6th P.M., Sections 1: W1/2; All of 3, 5, 7, 9 & 11; 13: Wl/2; 23: All; 25: NW1/4,N1/2 SW1/4; 31: E1/2; 33: All; 35: SW1/4, N1/2 Reservation: " . . yet excluding and excepting from the transfer . . . "All Mineral Lands" should any be found to exist in the tracts described . . but this exclusion and exception . . . shall not be construed to include coal and iron lands." Comments: 3. Instrument: Warranty Deed Date: 2-16-06 Recorded: B234 P374 Recording Date: 5-26-06 Grantor: Dennis Sullivan Grantee: Robert B. Sullivan Conveys: " . . an undivided one-half interest in and to all of the following parcels and subdivisions of lands and water rights . ." -2- Description: T2N-R67W, 6th P.M., Sections 3, 5, 7, 9,11, 13 & 23; 12: S1/2, E1/2 NE1/4; 24: N1/2, SE1/4; 25: NE1/4 Reservation: none Comments: "together with all water rights and rights to the use of water and irrigating ditches . . . ," and other water rights . . 4. Instrument: Commissioner's Deed Date: 10-9-08 Recorded: B283 P440 Recording Date: 10-10-08 Grantor: Elbert G. English(appointed Commissioner) Grantee: Dennis Sullivan Conveys: " . . all the estate, right, title and interest of and in all the following described lands . ." Description: T2N-R67W, 6th P.M., Sections 3, 5, 9,11, 13 & 23; 12: S1/2; 24: N1/2, SE1/4; 25: NE1/4 (and other lands & rights) Reservation: none Comments: "together with all water rights and rights to the use of water and irrigating ditches . . .," and other water rights References civil action, partitioning lands re: Dennis Sullivan vs. Mary M. Sullivan, et. al., final decree of District Court of 8-31-08 No mention of prior one-half interest 5. Instrument: Warranty Deed Date: 11-24-08 Recorded: B289 P109 Recording Date: 12-2-08 Grantor: Dennis Sullivan Grantee: Harry J. Bone Conveys: ". . all the following described lots or parcels . . ." Description: T2N-R67W, 6th P.M., Sections 3, 5, 9,11, 13 & 23; 12: S1/2; 24: N1/2, SE1/4; 25: NE1/4 (and other lands & rights) Reservation: none Comments: "together with all water rights and rights to the use of water and irrigating ditches . . .except The Lupton Meadows Irrigation Company & Coal Ridge Irrigation Company . ." 6. Instrument: Warranty Deed Date: 11-24-08 Recorded: B289 P111 Recording Date: 12-2-08 Grantor: Harry J. Bone Grantee: The Lupton Meadows Land Company -3- Conveys: ". . all the following described lots or parcels, water rights . . ." Description: T2N-R67W, 6th P.M., Sections 3, 5, 9,11, 13 & 23; 12: S1/2; 24: N1/2, SE1/4; 25: NE1/4 (and other lands & rights) Reservation: none Comments: 7. Instrument: Sheriffs Deed Date: 12-2-15 Recorded: B429 P55 Recording Date: 12-6-15 Grantor: Samuel McAfee, Sheriff of Weld County Grantee: The Lupton Coal Ridge Land Company Conveys: . . . those certain parcels or tracts of land and water rights . . ." Description: T2N-R67W, 6th P.M., Sections 3: All; 5: WI/2, WI/2 E1/2; 9: All; 10: W2/3 N1/2; 11: W1/2; 23: All Reservation: none Comments: References German American Trust Company vs. The Lupton Meadows Land Company, et. al . 8. Instrument: Untitled(Warranty Deed) Date: 12-2-18 Recorded: B509 P115 Recording Date: 1-10-19 Grantor: The Lupton Coal Ridge Land Company Grantee: Scott Pease Conveys: ". . all the following described lot or parcel . . ." Description: T2N-R67W, 6th P.M., Section 9: S1/2 Reservation: none (references existing reservations) Comments: 9. Instrument: Untitled (Warranty Deed) Date: 10-28-19 Recorded: B572 P397 Recording Date: 11-20-19 Grantor: Scott Pease Grantee: William F. Knapp Conveys: ". . all the following described lot or parcel . . ." Description: T2N-R67W, 6th P.M., Section 9: SE1/4 Reservation: none Comments: 10. 690-387814 Cannot find this instrument. TN Index, which indicates that this is a Warranty Deed, is incorrect. -4- 11. Instrument: Untitled(Warranty Deed) Date: 10-26-25 Recorded: B787 P42 Recording Date: 10-27-25 Grantor: Grace Knapp Grantee: S. U. Watson Conveys: ". . all the following described lot or parcel . . ." Description: T2N-R67W, 6th P.M., Section 9: SE1/4 Reservation: none Comments: 12. Instrument: Untitled(Warranty Deed) Date: 3-10-26 Recorded: B787 P307 Recording Date: 3-11-26 Grantor: S. U. Watson Grantee: Martha E. Watson Conveys: ". . all the following described lot or parcel . . ." Description: T2N-R67W, 6th P.M., Section 9: SE1/4 & 10 shares of Farmers Reservoir and Irrigation Company r Reservation: none Comments: 13. Instrument: Untitled (Public Trustee's Deed) Date: 7-25-28 Recorded: B808 P571 Recording Date: 7-28-28 Grantor: Thomas M. Welsh, Public Trustee, Weld County Grantee: Eva Harrison Conveys: ". . all the premises hereinafter described . . ." Description: T2N-R67W, 6th P.M., Section 9: SE1/4 & 10 shares of Farmers Reservoir and Irrigation Company Reservation: none Comments: References Deed of Trust from S. U. Watson to Eva Harrison @ B785 P353, upon which default occurred 14. Instrument: Untitled (Quit Claim Deed) Date: 2-11-31 Recorded: B909 P571 Recording Date: 3-5-31 Grantor: The Coal Ridge Ditch Company Grantee: Eva Harrison -5- Conveys: all right, title and interest Description: "The filings maps . . under the name of Coal Ridge Reservoir No 2 . . . covering certain waters . . on the land . . SE1/4, Section 9, T2N-R67W, 6th P.M. . . ." Reservation: none Comments: 15. Instrument: Warranty Deed Date: 5-18-39 Recorded: B1043 P114 Recording Date: 5-25-39 Grantor: Thirsa J. Smith Grantee: James W. Brook & Rhoda Harriet Gardiner Conveys: Land in Section 8 and a right of way in S1/2 of Sec. 9 Comments: Does not apply to this chain of title 16. B1213 P575 Same as preceding. Does not apply to Subject Lands 17. B1218 P389 Same as preceding. Does not apply to Subject Lands 18. B1411 P298 Oil and Gas Lease;Eva Harrison, released 19. Instrument: Untitled (Warranty Deed) Date: 4-16-62 Recorded: B1612 P235 Recording Date: 4-19-62 Grantor: Eva Harrison Grantee: The Farmers Reservoir and Irrigation Company Conveys: ". . all the following described lot or parcel . . ." and, " all right, title and interest in the Filings, Maps and Statements relating to the Coal Ridge Reservoir No. 2 located on the above-described land together with all water, ditch and reservoir rights, priorities or appropriations which may be connected therewith . . ." Description: T2N-R67W, 6th P.M., Section 9: SE1/4 Reservation: " . . and Grantor expressly excepts and reserves to herself. . . an undivided one-half interest in and to all oil, gas, and other minerals underlying said lands. . . and all water rights not conveyed herein." Comments: 20. Instrument: Untitled(Warranty Deed) Date: 7-10-62 Recorded: B1620 P8 Recording Date: 7-13-62 -6- 00, Grantor: The Farmers Reservoir and Irrigation Company Grantee: Jack O. Eckstine and Verna LaVonne Eckstine,joint tenants Conveys: ". . all the following described lot or parcel . . ." Description: T2N-R67W, 6th P.M., Section 9: SE1/4 except"a tract of land . . . as follows: Considering the East line of said Section 9 as bearing due North and commencing at the Southeast corner of said Section 9; thence North 89°35' West along the South line of said Section 9 a distance of 266.00 feet to the true point of beginning; thence North 89°35' West 1929.00 feet; thence North 0°00' East 1500 feet; thence South 89°35' East 1274 feet; thence South 0°00' East 1440 feet; thence South 89°35' East 655 feet; thence South 0°00' East 60 feet to the true point of beginning; also a strip of land 30 feet wide, the center line of which is described as follows: Commencing at the Southeast corner of said Section 9, thence 89°35' West 921 feet; thence North 0°00' East 1500 feet; thence 89°35' East 728.8 feet to the true point of beginning of the center line of said 30 foot strip; thence North 10°22' West a distance of 1112 feet, more or less, to the center line of Coal Ridge Ditch. Reservation: "No water rights of any kind are conveyed . . but (Grantee) is granted a perpetual right of use of the excepted land for agricultural and grazing purposes, and of the lake . . for fishing and hunting . ." No reservation of oil, gas, or other minerals Comments: Hunting and fishing privileges to third parties is no authorized (See corrected description at 1307-2259700) 21. Instrument: Executor's Deed Date: 5-29-69 Recorded: B611 Rec.# 1533475 Recording Date: 6-30-69 Grantor: Denver United States Bank and William L. Rice as Co-Executors of the Estate of Eva Harrison, deceased Grantee: The Farmers Reservoir and Irrigation Company Conveys: " . . all the right, title interest and estate which said Eva Harrison had in her lifetime and at the time of her death in and to: An undivided one-half interest in and to all oil, gas, and other minerals underlying . . ." Description: T2N-R67W, 6th P.M., Section 9: SE1/4 Reservation: none Comments: References Weld County Probate filed 4-17-67 22. Instrument: Untitled (Warranty Deed) Date: 9-12-69 Recorded: B615 Rec.# 1537257 -7- Recording Date: 9-26-69 Grantor: Jack O. Eckstine and Verna LaVonne Eckstine Grantee: Michael O. Eckstine Conveys: " the following real property..." Description: "A tract of land in the SE1/4 of Section 9, T2N-R67W, 6th P.M. . . . . as follows: Commencing at the East quarter corner of said Section 9, and considering the East line of the SE1/4 to bear due South, and with all other bearings contained herein being relative thereto; thence South along the East line of the SE1/4, 30 feet to the True Point of Beginning; thence continuing South along the East line of the SE1/4 180 feet; thence West 272 feet; thence North 180 feet; thence East 272 feet to the True Point of Beginning" Reservation: none Comments: 23. Instrument: Oil, Gas and Mineral Lease Date: 2-7-70 Recorded: B623 Rec.# 1544890 Recording Date: 4-3-70 Lessor: Jack O. Eckstine and Verna LaVonne Eckstine, husband and wife Lessee: T.S. Pace Description: T2N-R67W, 6th P.M., Section 9: SE1/4 Comments: 10 year term (very difficult to read) 24. Instrument: Assignment Date: 7-10-70 Recorded: B636 Rec.# 1557837 Recording Date: 11-23-70 Assignor: T.S. Pace Assignee: Pan American Petroleum Corporation Conveys: " . . . all of his right, title and interest in and to those certain oil and gas leases . . . Exhibit A . . ." Lease(s): Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 Well(s): none shown Reservation: none Comments: Exhibit A is extremely difficult to read 25. Instrument: Quit Claim Deed Date: 4-1-71 Recorded: B644 Rec.# 1565712 Recording Date: 4-14-71 Grantor: Union Pacific Railroad Company Grantee: Union Pacific Land Resources Corporation -8- Conveys: all right,title and interest Description: T2N-R67W, 6th P.M., Section 9: All Comments: 26. Instrument: Oil and Gas Lease Date: 4-30-71 Recorded: B650 Rec.# 1572094 Recording Date: 7-13-71 Lessor: The Farmers Reservoir and Irrigation Company Lessee: Bel Oil Corporation Description: "Those certain tracts of land . . . as more fully described (by Book and Page of the recorded document by which the same were obtained by Lessor) in Exhibit A,hereto attached." Exhibit A: T2N-R67W, 6th P.M., Section 9: SE1/4 Harrison(Grantor) 100.263 acres Lupton Meadows (Grantor) 2.22 acres Comments: Format is a little confusing 27. 655-1577425 Assignment of Overriding Royalty Interest from Bel Oil to Paul V. Hoovler. Assigns 1/16th overriding royalty in 650-1572094, Farmers Reservoir and Irrigation Company to Bel Oil. 28. Instrument: Assignment Date: 10-21-71 Recorded: B656 Rec.# 1577509 Recording Date: 10-26-71 Assignor: Paul V. Hoovler Assignee: Bob Hill and Marcus Degenhart Conveys: " . . .an overriding royalty . . . a separate 1/48th of 8/8th of all the oil, gas, casinghead gas . . . and other hydrocarbon substances . . produced, saved and marketed . . ." Lease(s): Farmers Reservoir to Bel Oil @ 650-1572094 Well(s): none shown Reservation: none Comments: 29. 661-1583403 Assignment of Overriding Royalty Interest from Paul V. Hoovler. to Bob Hill, et. al. Assigns 1/48th overriding royalty in 650- 1572094, Farmers Reservoir and Irrigation Company to Bel Oil. A re-recording of 656-1577509. 30. Instrument: Assignment of Oil and Gas Lease Date: 4-1-73 -9- Recorded: B699 Rec.# 1620706 Recording Date: 9-6-73 Assignor: Bel Oil Corporation Assignee: Medical Research Inc. of Dallas Conveys: " all of its right, title, and interest in and to the oil and gas lease, Farmers Reservoir, etc. to Bel Oil @ 650-1572094. Comments: Lease is released @ 1069-2009383 31. Instrument: Assignment of Oil and Gas Lease Date: 4-1-73 Recorded: B699 Rec.# 1620707 Recording Date: 9-6-73 Assignor: Medical Research, Inc. Assignee: Sun Oil Company Conveys: " all of its right, title, and interest in and to the oil and gas lease, dated 4-23-71, from Farmers Reservoir and Irrigation Company to Bel Oil Corporation @ 650-1572094. Comments: Lease is Released @ 1069-2009383 32. Instrument: Assignment of Overriding Royalty Interest Date: 4-1-73 Recorded: B703 Rec.# 1625240 Recording Date: 11-23-73 Assignor: Bel Oil Corporation Assignee: J. P. Field Conveys: " ..an overriding royalty in the amount of 1% of Assignor's income interest of all the oil and gas.... produced, saved and marketed from the following described land ...(per).. the Oil and Gas Lease, dated 4-23-71, from Farmers Reservoir and Irrigation Company to Bel Oil Corporation @ 650-1572094. Comments: Lease released @ 1069-2009383 33. Instrument: Assignment Date: 4-1-75 Recorded: B758 Rec.# 1679940 Recording Date: 1-28-76 Assignor: Amoco Production Company Assignee: Machii-Ross Petroleum Co. Conveys: " . . all of its right, title and interest in and to the J Sand formation under the oil and gas leases . . on Exhibit A . . ." Exhibit A: Lease(s): Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 Well(s): none specified -10- Reservation: "Except that there is hereby reserved unto the Assignor as royalty 3.5% of the value . . of the oil and gas produced, saved and sold from the lands included in this assignment . ." Comments: Proportionately reduced as to leasehold ownership 34. Instrument: Declaration of Unitization Date: 2-10-78 Recorded: B847 Rec.# 1768971 Recording Date: 10-4-78 Declaring Entity: W. B. Macey &Paul M. Mershon, Jr. Pooled Area: " . . the following described land . ." There is no description! Pooled Leases: Archie Sprague to W. B. Macey Paul Mershon @ 775-1697438 Ruth& James Schlieker to W.B Macey & Paul Mershon @ 775- 1697439 Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 Farmers Reservoir to Bel Oil @ 650-1572094 Pooled Formation: Unspecified. (presumed to be the E1/2) 35. 847-1768972 Assignment of Oil and Gas Lease, Sun Oil to W. B. Macey & Paul M. Mershon, Jr. of 650-1572094, released @ 1069-2009383. 36. Instrument: Assignment Date: 10-2-78 Recorded: B849 Rec.# 1771390 Recording Date: 10-31-78 Assignor: Machii-Ross Petroleum Co. Assignee: W. B. Macey & Paul M. Mershon, Jr. Conveys: " . . the premises hereinafter described . ." Lease(s): Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 Well(s): none shown Reservation: 1/8 overriding royalty Comments: "Subject to . . .option to convert . . as specified in Article IX of Exhibit B attached hereto." (There is no Exhibit B) 37. 898-1820320 Assignment of Oil and Gas Lease, Macey & Mershon to Sun Gas Co. of 50% interest in Farmers Reservoir to Bel Oil @ 650- 1572094. Lease is released @ 1069-2009383. 38. Instrument: Assignment of Oil and Gas Lease Date: 11-1-79 Recorded: B900 Rec.# 1822052 Recording Date: 4-14-80 Assignor: W. B. Macey & Paul M. Mershon, Jr. -11- Assignee: Machii-Ross Petroleum Co. a partnership consisting of KAR Petroleum Company and TSK Enterprises, Inc. Conveys: " . .an undivided 50% interest in and to the oil and gas lease . . ." Lease(s): Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 T2N-R67W, 6th P.M., Section 9: SE1/4 ". . only insofar as lease covers the oil, gas and mineral rights from the surface . . to depth of 8075 feet." Well(s): none shown Reservation: none Comments: 39. 924-1845819 Assignment of Overriding Royalty Interest of 2.083333% in Farmers Reservoir to Bel Oil @ 650-1572094. Lease is released @ 1069-2009383. 40. Instrument: Oil and Gas Lease Date: 7-1-78 Recorded: B950 Rec.# 1872025 Recording Date: 10-16-81 Lessor: Michael O. Eckstine Lessee: W. B. Macey &Paul M. Mershon, Jr. Description: T2N-R67W, 6th P.M., Section 9: "That part of the SE1/4 as follows: Commencing at the East quarter corner of said Section; thence South along the East line of said SE1/4 30.00 feet to the true point of beginning; thence continuing South along the East line of the see of said Section 180.00 feet;thence West 272.00 feet; thence North 180 feet; thence East 272.00 feet, (more or less)to the True Point of Beginning." Comments: 5 year paid up. 1/5th L.O.R. 41. Instrument: Untitled (Warranty Deed) Date: 10-14-81 Recorded: B951 Rec.# 1872727 Recording Date: 10-26-81 Grantor: Michael O. Eckstine Grantee: Michael O. Eckstine & Linda R. Eckstine,joint tenants Description: T2N-R67W, 6th P.M., Section 9: "That part of the SE1/4 as follows: Commencing at the East quarter corner of said Section; thence South along the East line of said SE1/4 30.00 feet to the true point of beginning; thence continuing South along the East line of the see of said Section 180.00 feet; thence West 272.00 feet; thence North 180 feet; thence East 272.00 feet, (more or less) to the True Point of Beginning." -12- Reservation: none Comments: 42. 963-1885956 Affidavit of Production, Sun Exploration and Production Co. of Farmers Reservoir to Bel Oil @ 650-1572094. Lease is released by Sun @ 1069-2009383. 43. Instrument: Assignment of Oil and Gas Leases Date: 5-4-82 Recorded: B976 Rec.# 1902807 Recording Date: 9-3-82 Assignor: Paul M. Mershon, Jr. Assignee: Paul M. Mershon, Jr., Trustee under Declaration of Trust, 5-4-82 Conveys: all right, title and interest Lease(s): Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 Farmers Reservoir to Bel Oil @ 650-1572094 Michael Eckstine to W.B. Macey & Paul M. Mershon @ 950- 1872025 Well(s): none specified Reservation: none Comments: 44. 988-1917261 Affidavit of Production and Extension, Sun Oil Company of Oil and Gas Lease 650-1572094. Released @ 1069-2009383 45. 993-1923401 Affidavit of Production and Extension, Sun Oil Company of Oil and Gas Lease 650-1572094. Released @ 1069-2009383 (a re- recording of 988-1917261) 46. Instrument: Quit Claim Assignment Date: 10-4-83 Recorded: B1010 Rec.# 1943439 Recording Date: 10-13-83 Assignor: Paul M. Mershon, Jr. Assignee: Paul M. Mershon, Jr., Trustee of the Paul M. Mershon Jr. Trust Conveys: all right, title and interest Lease(s): Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 Farmers Reservoir to Bel Oil @ 650-1572094 Michael Eckstine to W.B. Macey & Paul M. Mershon @ 950- 1872025 Well(s): none specified Reservation: none Comments: -13- 47. Instrument: Quit Claim Assignment Date: 12-1-84 Recorded: B1053 Rec.# 1992662 Recording Date: 12-20-84 Assignor: Paul M. Mershon, Jr.as Trustee of the Paul M. Mershon Jr. Trust, Paul M. Mershon Jr., Beneficiary aka Paul M. Mershon, Jr, as Trustee under Declaration of Trust dated 5-4-82 Assignee: Mershon, Inc. Lease(s): Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 Farmers Reservoir to Bel Oil @ 650-1572094 Michael Eckstine to W.B. Macey & Paul M. Mershon @ 950- 1872025 Well(s): none specified 48. Instrument: Release of Non-producing Oil, Gas and Mineral Leases Date: 5-2-85 Recorded: B1069 Rec.# 2009383 Recording Date: 5-13-85 Grantor: Sun Exploration and Production Company Releases: Farmers Reservoir, etc. to Bel Oil @ 650-1572094 "all of its right, title and interest in and to the . . lease . . as to all lands covered thereby . . ." Covering 1292.18 acres,more or less Description: numerous acquisitions by Farmers Reservoir and Irrigation Company in Weld County Comments: 49. Instrument: Disclaimer Date: 4-18-86 Recorded: B1113 Rec.# 2054077 Recording Date: 5-20-86 Grantor: Farmers Reservoir and Irrigation Company Grantee: Public Comments: " . . has and asserts no right,title and interest in and to the oil, gas, and other minerals in and under . . lands . . . in Exhibit A . . ." Exhibit A: "That parcel for the Brighton Lateral Ditch in Section 34, T2N- R66W, 6th P.M." "The one-half interest in mineral rights as reserved in the Deed from Harrison to Farmers Reservoir and Irrigation Company in Section 9, T2N-R67W, 6th P.M. . . . @ B1612-P235." "That parcel for Beebe Canal conveyed by Frank Gittlein Sr. to Farmers Reservoir and Irrigation Company in Section 4, T1N- R65W, 6th P.M @ 1021-1956346" -14- Comments: See correction @ 1299-2250759, below 50. Instrument: Oil and Gas Lease Date: 2-1-86 Recorded: B1118 Rec.#2059797 Recording Date: 7-7-86 Lessor: Farmers Reservoir and Irrigation Company Lessee: Macey & Mershon Oil, Inc. Description: T2N-R67W, 6th P.M., Section 19: SE1/4 Comments: Paid up 1/8 L.O.R. 51. Instrument: Disclaimer Date: 9-11-86 Recorded: B1131 Rec.# 2072914 Recording Date: 10-10-86 Grantor: Sun Exploration& Production Company Grantee: Public Comments: . . has and asserts no right, title and interest in under" T2N- R67W, 6th P.M., Section 9: SE1/4 52. Instrument: Assignment of Oil and Gas Leases Date: 7-28-87 Recorded: B1166 Rec.# 2109784 Recording Date: 8-7-87 Assignor: Macey& Mershon Oil Inc. Assignee: W. B. Macey 50% Mershon, Inc. 50% Conveys: . . all of its right,title and interest in and to the oil and gas leases . . . . on Exhibit A . . ." Lease(s): Farmers Reservoir to Macey & Mershon @ 1118-2059797 Well(s): no wells shown Reservation: none Comments: 53. Instrument: Quit Claim Assignment Date: 11-17-87, effective 11-1-87 Recorded: B1182 Rec.#2127270 Recording Date: 1-7-88 Assignor: W. B. Macey Assignee: The Macey Corporation Conveys: all right, title and interest in and to the property and interests Lease(s): Farmers Reservoir to Bel Oil @ 650-1572094 (released) Michael Eckstine to W.B. Macey & Paul M. Mershon -15- @ 950-1872025 T2N-R67W, 6th P.M., Sec. 9: 1.12 acre tract in SE1/4 Farmers Reservoir to Macey & Mershon @ 1118-2059797 T2N-R67W, 6th P.M., Sec. 9: SE1/4 Wel1(s): none specified 54. 1239-2186684 Assignment of Overriding Royalty, Medical Research/Sun Oil Co. Original lease is released @ 1069-2009383 55. Instrument: Quit Claim Deed Date: 11-28-89 Recorded: B1250 Rec.# 2199155 Recording Date: 12-4-89 Grantor: Jack O. Eckstine and Verna LaVonne Eckstine Grantee: Michael O. Eckstine and Linda R. Eckstine,joint tenants Conveys: all right, title and interest Description: T2N-R67W, 6th P.M., Sec.. 9: "a tract of land in the SE1/4 . . . as follows: Commencing at the East quarter corner, being the True Point of Beginning, and considering the East line of the SE1/4 of Section 9 to bear South 00°00'00" East and with all other bearings contained herein being relative thereto; thence continuing South 00°00'00" East along the East line of the SE1/4 of Section 9, 30 feet; thence North 90°00'00" West 272 feet;thence North 00°00'00" West 30 feet; thence South 90°00'00" East 272 feet to the True Point of Beginning." Reservation: none Comments: 56. Instrument: Assignment of Oil and Gas Leases Date: 8-15-89 Recorded: B1258 Rec.# 2208197 Recording Date: 3-19-90 Assignor: The Macey Corporation and Mershon,Inc. Assignee: James A. Brown, Kenneth D. Ibsen& Keith H. Heimbuck Conveys: " . . in equal shares as tenants in common, an undivided 21% of its right, title and interest in and to the oil and gas leases in Exhibit A . insofar as the leases cover lands in the E1/2 of Section 9, T2N- R67W, 6th P.M. . . ." Lease(s): Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 Michael Eckstine to W.B. Macey & Paul M. Mershon @ 950- 1872025 Farmers Reservoir to Macey & Mershon @ 1118-2059797 Ruth Schlieker, et. vir to W. B. Macey & Paul M. Mershon, Jr. -16- @ 775-1697439 (NE1/4) Archie Sprague to W. B. Macey & Paul M. Mershon, Jr. @ 775-16974898 (sic) (NE1/4) Well(s): none shown Reservation: " . . reserving unto Assignors. . . Wattenberg J Sandstone formation production from the Sprague #1 well in NE1/4 NE1/4 of said Section 9." Comments: J defined as stratigraphic equivalent of 7,874 feet to 7,956 feet . . . as in Maier# 1 well in NE1/4 NE1/4 of Section 28, T2N-R66W, 6th P.M. 57. Instrument: Assignment of Oil and Gas Properties Date: 3-30-90, effective 1-1-90 Recorded: B1259 Rec.# 2209455 Recording Date: 3-30-90 Assignor: Macey & Mershon Oil Inc., The Macey Corporation, Mershon, Inc., James A. Brown, Kenneth D. Ibsen, Keith H. Heimbuck, and Barbara Macey Todd Assignee: North American Resources Company 95% Tower Energy Corporation 5% Conveys: ".. all of Assignors' right,title, and interest .... in and to all the oil, gas and mineral interests of every nature in the lands described on Exhibit A. . .the wells described on Exhibit B. . . agreements. . . personal property . .(etc.). . ." Exhibit A: Lease(s): Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 (SE1/4) Michael Eckstine to W.B. Macey & Paul M. Mershon @ 950- 1872025 (1.124 acres in SE1/4) Farmers Reservoir to Macey & Mershon @ 1118-2059797 (SE1/4) Exhibit B: Well(s): Sprague #1 (NWNE) Reservation: none Comments: 58. Instrument: Assignment, Agreement and Bill of Sale Date: 1-31-91 Recorded: B1289 Rec.# 2240690 Recording Date: 2-6-91 Assignor: Tower Energy Corporation Assignee: North American Resources Company Assignor: North American Resources Company Assignee: Tower Energy Corporation Conveys: such interests as to effect the intent(below) -17- Lease(s): Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 Michael Eckstine to W.B. Macey & Paul M. Mershon @ 950- 1872025 Farmers Reservoir to Macey & Mershon @ 1118-2059797 Ruth Schlieker, et. vir to W. B. Macey & Paul M. Mershon, Jr. @ 775-1697439 (NE1/4) Archie Sprague to W. B. Macey & Paul M. Mershon, Jr. @ 775-1697438 (NE1/4) Well(s): none specified Reservation: none Comments: Intent is to cross convey interests so that NARCO owns both the NARCO and Tower interest in the J sand in E1/2 of 9 together with personal property in Sprague #1 well in NE1/4, and the NARCO and Tower interest below J in E1/2 as well as the NARCO and Tower interests in production from surface to J in NWNE and SESE of Section 9 And, That Tower owns both the NARCO and Tower interest from surface to top of J from NENE, S2NE,N2SE, and SWSE 59. Instrument: Ratification of Leases and Pooling Date: 5-17-91 Recorded: B1299 Rec.# 2250758 Recording Date: 5-21-91 Lease: Farmers Reservoir to Bel Oil @ 650-1572094 Michael Eckstine to W.B. Macey & Paul M. Mershon @ 950- 1872025 Ratifier: Farmers Reservoir and Irrigation Company "the owner of 100% of oil, gas, and other minerals (except coal) in the following described parcel and "the owner of an undivided 50% interest in all oil, gas, and other minerals (except coal) in balance of SE1/4 . ." Description: T2N-R67W, 6th P.M., Section 9: That part of the SE1/4 . . . as follows: Considering the East line of said Section 9 as bearing due North and commencing at the Southeast corner of said Section 9; thence North 89°35' West along the South line of said Section 9 a distance of 266.00 feet to the true point of beginning; thence North 89°35' West 1929.00 feet; thence North 00°00' East 1500 feet; thence South 89°35' East 1274 feet; thence South 00°00' East 1440 feet; thence South 89°35' East 655 feet; thence South 00°00' East 60 feet to the true point of beginning; also a strip of land 30 feet wide, the center line of which is described as follows: Commencing at the Southeast corner of said Section 9, thence 89°35' West 921 feet;thence North 00°00' East 1500 feet; thence 89°35' East 728.3 feet to the true point of beginning;thence North -18- 10°22' West a distance of 1112 feet, more or less." Comments: Farmers Reservoir and Irrigation Company, by Oil and Gas Lease @ 650-1572094, leased its interest in the SE1/4 of Section 9. By release @ 1069-2009383 Sun Exploration& Production, then the owner of a 50% leasehold interest in this lease from the surface to a depth of 8,075 feet and the owner of a 100% leasehold interest from a depth of 8,075 feet to center of the earth, released and relinquished its interest in this lease. By lease dated 2-1-86 @ 1118-2059797, Frico leased to Macey & Mershon . . the interest which had been released by Sun . . ." "Frico confirms, ratifies . . the current effectiveness of Farmers Reservoir to Bel Oil @ 650-1572094 insofar as it covers 50% of oil and gas from surface to 8,075 feet(the interest not released and relinquished by Sun . .) and the lease originally granted to Macey & Mershon(covering the interest released . . by Sun . .)" Frico additionally ratifies Declaration of Unitization @ 847- 1768971 as amended and to be amended covering lands and leases pooled to form unit in E1/2 of Section 9 60. Instrument: Correction of Disclaimer Date: 3-17-91 Recorded: B1299 Rec.# 2250759 Recording Date: 5-21-91 Declaring Party: Farmers Reservoir and Irrigation Company Terms: By Warranty Deed @ B1612-235, Frico acquired the SEI/4 of Section 9, T2N-R67W, 6th P.M. from Eva Harrison, subject to her reservation of V2 of the minerals. By Executor's Deed @ 611- 1533475 Frico acquired this 50% mineral interest from Eva's estate. By Disclaimer, etc. @ 1113-2054077, Frico disclaimed its interest in the minerals reserved by Eva. Frico "intended only to indicate that it asserted no interest contrary to Eva Harrison's reservation; it certainly did not intend to disclaim the conveyance later made to it by the Co-Executors of her estate." Frico hereby deletes, from the disclaimer @ 1113-2054077, the 50% interest shown on Exhibit A, thereto. Frico additionally confirms its current ownership in the 50%mineral interest reserved by Eva Harrison. Description: T2N-R67W, 6th P.M., Section 9: SE1/4 61. Instrument: Assignment Date: 5-14-91, effective 1-1-90 Recorded: B1304 Rec.# 2256526 Recording Date: 7-17-91 Assignor: Macey & Mershon Oil Inc, The Macey Corporation, Mershon, Inc., -19- James A. Brown, Madeline L. Brown,Kenneth D. Ibsen, Keith H. Heimbuck, Barbara Macey Todd and Tower Energy Corporation Assignee: North American Resources Company Conveys: all right, title and interest in and to any oil and gas leases in Weld County, insofar as (they) cover lands described in Exhibit A Exhibit A: Lease(s): Sprague (El/2, Sec. 9, T2N-R67W, 6th P.M.) Well(s): none shown Reservation: none Comments: does not appear to affect Subject Leases 62. Instrument: Ratification of Oil and Gas Lease and Pooling Date: 7-31-91 Recorded: B1307 Rec.# 2258854 Recording Date: 8-6-91 Lease: Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 Ratifier: Jack O. Eckstine and Verna LaVonne Eckstine Description: T2N-R67W, 6th P.M., Section 9: SE1/4 Comments: . . revive . . lease, let and demise . .and . . hereby ratify the Declaration of Unitization @ 847-1768971, as amended . . ." 63. Instrument: Correction of Description in Warranty Deed Date: 8-6-91 Recorded: B1307 Rec.# 2259700 Recording Date: 8-15-91 Grantor: Farmers Reservoir and Irrigation Company Grantee: Jack O. Eckstine and Verna LaVonne Eckstine Conveys: those interests conveyed at B1620-P8 Description: T2N-R67W, 6th P.M., Section 9: SE1/4 except (the following): Parcel A: "Commencing at the Southeast corner of said Section 9 as bearing North 0000'00" East, with all other bearings being relative thereto; thence North 89°35' West along the South line of said Section 9 a distance of 266.00 feet to the true point of beginning; thence North 89°35' West 1929.00 feet; thence North 00°00' East 1500 feet; thence South 89°35' East 1274 feet; thence South 00°00' East 1440 feet; thence South 89°35' East 655 feet; thence South 00°00' East 60 feet to the true point of beginning, containing 44.77 acres, (more or less) and; Parcel B: "A continuous strip of land 30 feet wide from the Northerly line of Parcel A to the center line of Coal Ridge Ditch, said strip of land being 15 feet either side of a centerline described as follows: Commencing at the Southeast corner of said Section 9, thence 89°35' West 921 feet; thence North 00°00' East 1500 feet; -20- thence 89°35' West a distance of 729 feet to the true point of beginning; thence North 09°20'38" West a distance of 1112.00 feet, (more or less)to the center line of said Coal Ridge Ditch and the point of terminus, containing .80 acres, (more or less)." Comments: This corrects description in Deed to Eckstines @ 1620-8, wherein the land reserved from the SE1/4 was described incorrectly 64. Instrument: Quit Claim Deed(Correction) Date: 7-22-91 Recorded: B1310 Rec.# 2262271 Recording Date: 9-6-91 Grantor: Michael O. Eckstine Grantee: Michael O. Eckstine & Linda R. Eckstine,joint tenants Conveys: all right, title and interest Description: T2N-R67W, 6th P.M., Section 9: "Commencing at the East quarter corner of said Section 9; and considering the East line of the SE1/4 of said Section to bear due South, and with all bearings contained herein being relative thereto; thence South along the East line of the SE1/4 of said Section 30.00 feet to the true point of beginning; thence continuing South along the East line of the SE 1/4/4 of said Section 180.00 feet; thence West 272.00 feet; thence North 180 feet; thence East 272.00 feet, to the True Point of Beginning." Reservation: none Comments: This is made solely to correct the legal description @ 951-1537257 65. Instrument: Assignment of Oil and Gas Leases Date: 10-28-91 Recorded: B1315 Rec.# 2267744 Recording Date: 10-31-91 Assignor: Tower Energy Corporation, formerly Mamma Turnkey Contactors Assignee: Gerrity Oil & Gas Corporation Conveys: " . . . all of its right, title and interest in and to the oil and gas leases . . . in Exhibit A . . only . . to . . the specific lands described . ." Exhibit A: Lease(s): Michael Eckstine to W.B. Macey &Paul M. Mershon @ 950- 1872025 T2N-R67W, 6th P.M., Sec. 9: tract in NE1/4 SE1/4 from Surface to top of J Farmers Reservoir to Macey &Mershon @ 1118-2059797 Farmers Reservoir to Bel Oil @ 650-1572094 T2N-R67W, 6th P.M., Sec. 9: N1/2 SE1/4, SW1/4 SE1/4 from Surface to top of J Well(s): none shown -21- Reservation: none Comments: Depth limitations appearing on Exhibit A are only to limit certain warranties, not to limit interests conveyed. Intent is to convey all. 66. Instrument: Assignment and Bill of Sale Date: 12-6-91 Recorded: B1321 Rec.# 2273490 Recording Date: 12-30-91 Assignor: Machii-Ross Petroleum Co. Assignee: North American Resources Company Conveys: " . . . all of its right,title and interest, of every kind . . in and to the oil and gas leases . . on Exhibit A . . and the Wells . .on Exhibit B . . only insofar as such leases cover the tracts specifically described on Exhibit C . . ." Exhibit A: "This assignment shall be effective as to depths between the surface and top of"J" . . unless otherwise indicated." Leases: No Subject Leases appear Exhibit B: Wells: No Subject Wells appear Exhibit C: T2N-R67W, 6th P.M., Sec. 9: SE1/4 and other lands Reservation: no reservation of interest Comments: Assignor Expressly excepts herefrom and reserves to itself. . all interests below the base of the"J", all interests in the NE1/4 of Sec. 32, T2N-R67W, 6th P.M. . . per Development Agreement of 12-30-86 and all formations from surface to base of Shannon underlying the NE1/4 of Section 32, T2N-R67W, 6th P.M. and the four oil and gas wells in NE1/4 known as the Gumeson 31-32, 32- 32, 41-32 and 42-32. 67. Instrument: Cross Assignment and Agreement Date: 1-27-92 Recorded: B1327 Rec.#2279790 Recording Date: 3-2-92 Assignor: Gerrity Oil & Gas Corporation Assignee: North American Resources Company Conveys: " . . all of its right, title and interest in and to the Leases . . insofar . . . as (they) cover the NE1/4 SE1/4 of Section 9, T2N-R67W, 6th P.M. and only as to . . Codell &Niobrara . ." Assignor: North American Resources Company Assignee: Gerrity Oil & Gas Corporation Conveys: " . . all of its right,title and interest in and to the Leases . .insofar . . . .as (they) cover the SE1/4 SE1/4 of Section 9, T2N-R67W, 6th P.M. and only as to the surface to top of"J" formation . . ." -22- Lease(s): Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 Michael Eckstine to W.B. Macey & Paul M. Mershon @ 950- 1872025 Farmers Reservoir to Macey & Mershon @ 1118-2059797 Ruth Schlieker, et. vir to W. B. Macey & Paul M. Mershon, Jr. @ 775-1697439 (NE1/4) Archie Sprague to W. B. Macey &Paul M. Mershon, Jr. @ 775-1697438 (NE1/4) Well(s): none specified Reservation: none Comments: The intent of the previous agreement was to cross convey interests so that NARCO owns both the NARCO and Tower interest in the J sand in E1/2 of 9 together with personal property in Sprague #1 well in NE 1/4,/4, and the NARCO and Tower interest below J in E1/2 as well as the NARCO and Tower interests in production from surface to J in NWNE and SESE of Section 9 And, That Tower owns both the NARCO and Tower interest from surface to top of J from NENE, S2NE,N2SE, and SWSE As Tower sold all its interest to Gerrity @ 1315-2267744, Gerrity and NARCO no desire to amend the original agreement. Other provisions apply as to segregation of lands, option to purchase and allocation of proceeds. 68. Instrument: Assignment of Oil and Gas Lease Date: 8-1-92 Recorded: B1355 Rec.# 2307378 Recording Date: 10-20-92 Assignor: Gerrity Oil & Gas Corporation Assignee: North American Resources Company Conveys: "All of Assignor's right, title and interest in and to the Leases . . in Exhibit A . . .limited from surface to top of J formation . . only insofar as Leases cover the NE1/4 SE1/4 . ." Lease(s): Farmers Reservoir to Bel Oil @ 650-1572094 Farmers Reservoir to Macey & Mershon @ 1118-2059797 Michael Eckstine to W.B. Macey & Paul M. Mershon @ 950- 1872025 Well(s): none shown Reservation: none Comments: 69. Instrument: Valve Site Contract Date: 10-7-93 Recorded: B1410 Rec.# 2358494 -23- Recording Date: 11-8-93 Grantor: Jack O. Eckstine and Verna L. Eckstine Grantee: Associated Natural Gas, Inc. Conveys: ". . . the right to construct, install . . .maintain . . . remove . .(etc.) . . a pipeline gate . . ." Description: T2N-R67W, 6th P.M. Section 9: Part of SE1/4 Comments: 70. Instrument: Warranty Deed Date: 12-2-93 Recorded: B1415 Rec.# 2362550 Recording Date: 12-3-93 Grantor: Michael O. Eckstine and Linda R. Eckstine Grantee: Richard D. Stalcup and Cynthia A. Stalcup,joint tenants Conveys: "all the real property, together with improvements ...." Description: "A tract of land in the SE1/4 of Section 9, T2N-R67W, 6th P.M. . as follows: Commencing at the East quarter corner of said Section, and considering the East line of the SE1/4 to bear due South, and with all other bearings contained herein being relative thereto; thence South along the East line of the SE1/4 of said Section 9, 30 feet to the True Point of Beginning; thence continuing South along the East line of the SEI/4 180 feet; thence West 272 feet; thence North 180 feet;thence East 272 feet to the True Point of Beginning." Reservation: "Excepting and reserving all oil, gas, and other mineral rights . . presently owned by Grantors . . ." Comments: Description is corrected @ 1430-2376990 71. Instrument: Assignment, Bill of Sale and Conveyance Date: 11-22-93, effective 10-1-93 Recorded: B1416 Rec.# 2363954 Recording Date: 12-14-93 Assignor: Basin Exploration, Inc. Assignee: Gerrity Oil & Gas Corporation Conveys: "An undivided 100% interest in and to the oil and gas leases . . . in Exhibit A . . . insofar as . . . the land described . ." Exhibit A: Lease(s): Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 T2N-R67W, 6th P.M., 9: SE1/4, surface to base of Shannon Well(s): none shown Reservation: none Comments: Intent is to convey "not less than an 80% net revenue interest . ." -24- 72. Instrument: Warranty Deed (Correction) Date: 2-22-94 Recorded: B1430 Rec.# 2376990 Recording Date: 3-7-94 Grantor: Michael O. Eckstine and Linda R. Eckstine Grantee: Richard D. Stalcup and Cynthia A. Stalcup,joint tenants Conveys: "all the real property,together with improvements ...." Description: "A tract of land in the SE1/4 of Section 9, T2N-R67W, 6th P.M. . . as follows: Commencing at the East quarter corner of said Section, and considering the East line of the SE1/4 to bear due South, and with all other bearings contained herein being relative thereto; thence South along the East line of the SE1/4 of said Section 9, 210 feet; thence West 272 feet; thence North 210 feet; thence East 272 feet to the True Point of Beginning." Reservation: "Excepting and reserving all oil, gas, and other mineral rights . . . presently owned by Grantors . . ." Comments: Corrects Legal description @ 1415-2362550 73. Instrument: Amended Declaration of Pooling and Unitization Date: 6-26-92 Recorded: B1448 Rec.# 2394803 Recording Date: 6-27-94 Declaring Entity: North American Resources Company & Gerrity Oil & Gas Corporation Pooled Area: T2N-R67W, 6th P.M., Section 9: E1/2 ("J") T2N-R67W, 6th P.M., Section 9: W1/2 NE1/4, E1/2 NE1/4,N1/2 SE1/4, S1/2 SE1/4 (Codell,Niobrara& Sussex) Pooled Leases: Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 Michael Eckstine to W.B. Macey & Paul M. Mershon @ 950- 1872025 Farmers Reservoir to Macey & Mershon @ 1118-2059797 Ruth Schlieker, et. vir to W. B. Macey & Paul M. Mershon, Jr. @ 775-1697439 (NEI/4) Archie Sprague to W. B. Macey & Paul M. Mershon, Jr. @ 775-1697438 (NE1/4) Farmers Reservoir to Bel Oil @ 650-1572094 Catherine Sprague to Entech @ 1318-2270561 Ray K. Davis to Entech @ 1230-2279793 Pooled Formation: see foregoing 74. Instrument: Assignment of Oil and Gas Leasehold Interests Date: 8-24-94 Recorded: B1459 Rec.# 2406344 -25- Recording Date: 9-13-94 Assignor: W. B. Macey Assignee: North American Resources Company Conveys: ".. all of his oil and gas leasehold interests...on Exhibit A.." Lease(s): Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 Michael Eckstine to W.B. Macey & Paul M. Mershon @ 950- 1872025 Farmers Reservoir to Macey & Mershon @ 1118-2059797 Ruth Schlieker, et. vir to W. B. Macey & Paul M. Mershon, Jr. @ 775-1697439 (NE1/4) Archie Sprague to W. B. Macey & Paul M. Mershon, Jr. @ 775-1697438 (NEI/4) Well(s): none shown Reservation: " This Assignment shall not be effective to assign any overriding royalty interests... (but) shall effect only... leasehold interests..." Comments: 75. Instrument: Reassignment of Overriding Royalty Date: 1-8-96, effective 8-1-88 Recorded: B1529 Rec.#2473680 Recording Date: 1-29-96 Assignor: Ken Perkins Oil and Gas, Inc. Assignee: Sun Operating Limited Partnership Conveys: "..all right, title and interest acquired by Assignor from Assignee under the aforementioned Assignment of Overriding Royalty at 1239-2186684 (Sun Operating Limited Partnership to Ken Perkins Oil & Gas) Description: Medical Research to Sun Oil @ 699-1620707 (CLC Gas Unit 1, CLC Unit 41538, CLC Unit B, Matt 1-Manning) No legal descriptions shown. 76. Instrument: Release and Quitclaim Deed Date: Effective 9-28-95 Recorded: Rec.# 2661201 Recording Date: 12-17-98 Grantor: Union Pacific Railroad Company Grantee: Union Pacific Land Resources Corporation Conveys: "..all of Railroad's right,title, and interest which Railroad has in the Property by virtue of this Railroad Reservation, excepting from this Release and Quitclaim and reserving unto Railroad...(1)the General Railroad Reservation in and to any and all portions of the Property which are not owned of record in fee by Resources on the Effective Date and (2) Railroad's right, title, and interest in the -26- Property, if any,which Railroad has other than by virtue of the General Railroad Reservation." Description: T2N-R67W, 6th P.M., Section 9: All Comments: References prior deed of 4-14-71 @ B644-P23-1 in which Railroad quit claimed to Resources all of its right, title, and interest in the lands shown on this instrument, reserving the following: "...its railroad operating rights of way,together with all its right, title, and interest in the lands upon which any such right of way are located, and in and to any and all lands used or held for use in transportation service...." It is the intent that"the reservation recited in Paragraph A above (the General Railroad Reservation) by modified by the cancellation and release of the General Railroad Reservation as to any and all portions of the Property which are owned of record in fee on the Effective Date by Resources, Union Pacific Resources Group, Inc., Union Pacific Resources Company or Rock Springs Royalty Company, and the substitution of certain other rights to be granted by Resources to Railroad by separate instruments of even date herewith." 77. Instrument: Assignment Date: 2-12-96, effective 10-23-93 Recorded: B1532 Rec.# 2476424 Recording Date: 2-14-96 Assignor: Amoco Production Company Assignee: Gerrity Oil & Gas Corporation Conveys: " . . all of its right,title and interest in and to the Eckstine V 9-10, 9-15 and 9-16 wells in SE1/4 of Section 9, T2N-R67W, 6th P.M. . . . insofar as . . derived from the oil and gas leases on Exhibit A A . Lease(s): Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 T2N-R67W, 6th P.M., Section 9: NW1/4 SE1/4, S1/2 SE1/4, from 5,500 feet to top of"J"formation. Well(s): see above Reservation: "Assignor hereby excepts and reserves to itself. . the following overriding royalty: 7.5% of 8/8ths of all oil, gas, casinghead gas . . . and other hydrocarbon substances . . . produced and saved . ." Comments: 78. 1570-2513889 Recorded Exemption No. 1311-09-4-RE 1921, Part of the SE1/4 of Section 9, T2N-R67W, 6th P.M. 79. Instrument: Warranty Deed Date: 10-15-96 Recorded: B1572 Rec.# 2516330 -27- Recording Date: 10-18-96 Grantor: Jack O. Eckstine and Verna LaVonne Eckstine Grantee: 1031-D Land Corporation Conveys: "all the real property, together with improvements ...." Description: Lot B,Recorded Exemption No. 1311-09-4-RE 1921, part of the SE1/4 of Section 9, T2N-R67W, 6th P.M. Reservation: "Reserving,however, to Grantor all minerals of whatsoever kind or character in, under and upon or that may be produced . . ." Comments: Property Address: 8585 Weld County Rd. 22, Fort Lupton, CO 80621 80. Instrument: Warranty Deed Date: 11-1-96 Recorded: B1572 Rec.# 2519288 Recording Date: 11-5-96 Grantor: Jack O. Eckstine and Verna LaVonne Eckstine Grantee: Kauffman Land& Development, L.L.C. Conveys: "all the real property, together with improvements ...." Description: Lot A, Recorded Exemption No. 1311-09-4-RE 1921, part of the SE1/4 of Section 9, T2N-R67W, 6th P.M. Reservation: "Reserving, however, to Grantor all minerals of whatsoever kind or character in, under and upon or that may be produced . . .and a perpetual non-exclusive easement over the property for the benefit of Lot B . . .for a domestic natural gas line . . @ 1570-2513889" Comments: Property Address: 10137 Weld County Rd. 19, Fort Lupton, CO 80621 81. Instrument: Warranty Deed Date: 2-5-97 Recorded: B1590 Rec.# 2532509 Recording Date: 2-6-97 Grantor: 1031-D Land Corporation Grantee: Don Owens and Linda Owens,joint tenants Conveys: "all the real property, together with improvements ...." Description: Lot B, Recorded Exemption No. 1311-09-4-RE 1921, part of the SE1/4 of Section 9, T2N-R67W, 6th P.M. Reservation: none Comments: 82. Instrument: Amended Affidavit of Production and Extension of Leases Date: 12-11-97 Recorded: Rec.# 2587762 Recording Date: 1-6-98 -28- Affiant: James Benner,North American Resources Company Lease Extended: Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 Michael Eckstine to W.B. Macey & Paul M. Mershon @ 950- 1872025 Farmers Reservoir to Macey & Mershon @ 1118-2059797 Ruth Schlieker, et. vir to W. B. Macey & Paul M. Mershon, Jr. @ 775-1697439 (NE1/4) Archie Sprague to W. B. Macey & Paul M. Mershon, Jr. @ 775-1697438 (NE1/4) Farmers Reservoir to Bel Oil @ 650-1572094 Producing Well: Sprague#3-9 Well Location: T2N-R67W, 6th P.M., Section 9: NE1/4 SE1/4 83. Instrument: Assignment and Bill of Sale Date: 12-15-97, effective 12-1-97 Recorded: Rec.# 2592990 Recording Date: 2-6-98 Assignor: Amoco Production Company Assignee: I-IS Resources, Inc. Conveys: "All of Assignor's right, title and interest in, to an under, or derived from the oil and gas leasehold interests, fee interests, royalty interests, overriding royalty interests, mineral interests, production payments, net profits interests and surface interests which are described in Exhibit"A" and all rights..appurtenant.. All of the Assignor's right title and interest in....presently existing and valid unitization, communitization and pooling declarations, orders, and agreements (voluntarily and under order)..to the extent they relate to ..interests ..in Exhibit"A" All of Assignor's right, title, and interest in....presently existing and valid oil sales contracts, casinghead gas sales contracts, gas sales contracts..processing, gathering..transportation... rights-of- way, surface and subsurface leases, permits, farmout/farmin contracts, and other contracts.... described in Exhibit`B"...to the extent they relate to any of the interests which are described in Exhibit"A"..or the production of oil, gas, or other hydrocarbon...attributable thereto.... improvements, fixtures, equipment..geological and/or geophysical information..and data..oil, gas, and mineral leases,royalties.."..etc., all ...right, title, and interest in and to ...the partnerships described in Exhibit"C".. And, all of Assignor's right, title, and interest in and to all oil, gas and mineral leases, fee interests, royalties, overriding royalties... and all other interest of every kind...located in Weld, Adams, Boulder, Arapahoe and Larimer Counties...." -29- Exhibit A: Lease(s): Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 Comments: Paragraph (g) of Assignment (see above) assigns everything Amoco owns in Weld, Adams, Boulder, Arapahoe and Larimer Counties. Assignor reserves some seismic, geologic and geophysical information, any and all pipelines, equipment, facilities, properties and interests necessary to vest in True Oil Company, etc. described on Exhibit"D" This Assignment is made in accordance with..and subject to Purchase and Sale Agreement of 11-25-97 between Amoco and HS 84. Rec.#2608672 Memorandum, of Fractionation Agreement, dated 4-21-98, effective 3-31-98, gives notice of 4-21-98 Agreement between Duke Energy Field Services and TEPPCO Colorado, Inc., dedicating to TEPPCO, for fractionation, all of Duke Energy's gas, plants, contracts, etc. in large blanket area including T2-R67. 85. Rec.#2685465 Operating Agreement,NARCO 86. Rec.# 2697096 Map, Special Review, (see attached copy) 87. Instrument: Memorandum of Surface Use Agreement Date: 2-21-00 Recorded: Rec.# 2754631 Recording Date: 3-9-00 Grantor: Don Owens and Linda Owens Grantee: North American Resources Company Conveys: certain rights ...." .. providing for the use of the surface of the land described below in connection with certain oil and gas operations... and compensation ....(therefor) ...." Description: T2N-R67W, 6th P.M., Section 9: SE1/4 SE1/4 Comments: References in-house copy available from Narco 88. Instrument: Quit Claim Assignment of Interests Date: effective 3-1-2000 Recorded: Rec.# 2757739 Recording Date: 3-27-00 Grantor: Nebil G. Zarif Grantee: Ace Royalties, LLC Conveys: ".. all of Assignor's undivided right, title, and interest in and to the Overriding Royalty Interests ...in, to under or derived from the wells, leases and lands within: -30- Description: Townships 1 North through 12 North, Ranges 56 West through 68 West, all of the 6th P.M...." Comments: 89. Instrument: Memorandum of Surface Use Agreement Date: 2-26-00 Recorded: Rec.# 2770400 Recording Date: 5-24-00 Grantor: Don Owens and Linda Owens Grantee: North American Resources Company Conveys: certain rights ...." .. providing for the use of the surface of the land described below in connection with certain oil and gas operations... and compensation ....(therefor) ...." Description: T2N-R67W, 6th P.M., Section 9: NW1/4 SE1/4 Comments: References in-house copy available from Narco 90. Instrument: Memorandum of Surface Use Agreement Date: 5-24-00 Recorded: Rec.# 2800050 Recording Date: 10-13-00 Grantor: Don Owens and Linda Owens Grantee: North American Resources Company Conveys: certain rights ...." .. providing for the use of the surface of the land described below in connection with certain oil and gas operations... and compensation ....(therefor) ...." Description: T2N-R67W, 6th P.M., Section 9: NE1/4 SEl/4 Comments: References in-house copy available from Narco 91. Instrument: Notice of Oil and Gas Interests and Surface Use Date: 10-27-00 Recorded: Rec.# 2811269 Recording Date: 12-6-00 Grantor: HS Resources, Inc. Grantee: Public Notice: That HS Resources, Inc. is the owner of certain oil and gas leasehold rights and that such rights derive from those leases listed on Exhibit A and,that HS Resources, Inc. has certain rights to "occupy and make use of the surface of the Lands. This Notice is to remain in effect for so long as the Leases .... remain in effect as to any portion of the Lands. Description: T2N-R67W, 6th P.M., Section 9: E1/2 Lease: Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 Comments: -31- 92. Instrument: Affidavit Date: 7-17-01 Recorded: Rec.# 2868135 Recording Date: 7-24-01 Affiant: Stacey Q. Miller dba Poudre Production Properties, Inc. Deposition: that she purchased all oil, gas, mineral, overriding royalty and working interest of Michael Haydn Frizzell dba Frizzell Oil Company and that such sale/purchase was confirmed by U.S. Bankruptcy Court, attached, and Letter Agreement Description: Townships 1 to 12 North, Ranges 56 to 68 West, Weld County and lands in Sheridan County, MT; Johnson& Weston Counties, WY 93. Instrument: Request For Notification of Surface Development Date: 4-24-02 Recorded: Rec.#2955324 Recording Date: 5-28-02 Grantor: RME Petroleum Company (formerly known as Union Pacific Resources Company) & RME Land Corp. Grantee: Public Subject: RME as Mineral Estate Owners underlying the following described lands "hereby requests written notification of any and all Applications for Development(as defined) and all other proposed surface development activities on the Subject Lands . . " Description: T2N-R67W, 6th P.M., Section 9: All Comments: Address to which notice is to be given is: c/o Anadarko Petroleum Corporation P. O. Box 9149 The Woodlands, TX 77387-9147 94. Instrument: Affidavit of Production and Extension of Lease Date: 5-23-02 Recorded: Rec.# 2957500 Recording Date: 6-3-02 Affiant: Robert J. Bram, EnCana Energy Resosurces Inc. Lease Extended: Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 Farmers Reservoir to Macey & Mershon @ 1118-2059797 Ruth Schlieker, et. vir to W. B. Macey & Paul M. Mershon, Jr. @ 775-1697439 (NE1/4) Archie Sprague to W. B. Macey & Paul M. Mershon, Jr. @ 775-1697438 (NE1/4) Farmers Reservoir to Bel Oil @ 650-1572094 Producing Well: Sprague 31-9 Well Location: T2N-R67W, 6th P.M., 9: NW 1/4 NE1/4 -32- 95. Instrument: Affidavit of Production and Extension of Lease Date: 5-23-02 Recorded: Rec.#2957505 Recording Date: 6-3-02 Affiant: Robert J. Bram, EnCana Energy Resosurces Inc. Lease Extended: Jack O. Eckstine, et. ux. to T.S. Pace @ 623-1544890 Farmers Reservoir to Macey &Mershon @ 1118-2059797 Ruth Schlieker, et. vir to W. B. Macey & Paul M. Mershon, Jr. @ 775-1697439 (NE1/4) Archie Sprague to W. B. Macey & Paul M. Mershon, Jr. @ 775-1697438 (NE1/4) Farmers Reservoir to Bel Oil @ 650-1572094 Producing Well: Ewing 34-30 Well Location: T2N-R67W, 6th P.M., Section 30: SW1/4 SE1/4 96. Rec.#2987975 Town of Frederick, Colorado Ordinance No. 627, Amending Article VIII of Chapter 4 of the Frederick Municipal Code Concerning the Southwest Weld Service Area Road Impact Fee Program, 11-29-01 End of Report -33- Arlen Hershberger 1561 Ivy,Denver,CO 80220 Phone:303-359-9339 Fax: 303-322-6937 June 17, 2003 Ed Pruss Co'dwell Banker 3300 28"' Street Boulder, CO 80301 Re: Title Services Mineral Notification Dear Ed, This is the report I promised you a couple of weeks ago. There are two documents, one from Kip Anderson, a title attorney with Kuhn, Carnes, &Anderson, P.C. and the other,the title chain summary(Abstract Brief)that I gave him for examination. As you probably inferred from looking at the index when I met you at TransNation, it is a pretty involved title, with effective oil and gas leases, overriding royalties, and various working interests. I ran the entire Southeast quarter, as it was just as simple as dividing things as I go. Therefore, I have probably provided a little more information than you really need. Accordingly, and in order to keep the costs as low as possible, I have deducted 8 hours from my total time, and have not included in my time, nor charged for, mileage, copies or any other incidental costs, as is customary. The legal fee is a direct pass-through of those charges. If you have any questions or need anything else, please call me. I trust this is satisfactory and thank you for the opportunity to work for you. Finally, I note in the report that Mr. Anderson did not include the address for Union Pacific, probably assuming everyone knows that. (In Oil and Gas,they do.) It is: RME Petroleum Company C/O Anadarko Petroleum Corporation P. O. Box 9149 The Woodlands, TX 77387-9147 Sincere Arlen Hershberger r^� Arlen Hershberger 1561 Ivy, Denver, CO 80220 Phone: 303-389-9339 Fax: 303-322-6937 June 17, 2003 Don & Linda Owens 8585 Weld Co. Rd. 22 Fort Lupton, CO 80621 Re: Title Services Mineral Notification INVOICE Township 2 North-Ranee 67 West Section 14: Lot B, Recorded Exemption No. 1311-09-4-RE 1921 Weld County, Colorado Abstract Brief 25 hrs. @$45.00 $ 1,125.00 Legal Report(Kuhn, Carnes and Anderson) 405.00 Total: $ 1,530.00 Thank you KUHN, CARNES, & ANDERSON, P.C. ATTORNEYS AT LAW 1525 SEVENTEENTH STREET DENVER, COLORADO 80202 (303) 308-0100 FAX (303) 308-1434 June 13, 2003 Don and Linda Owens 8585 WCR 22 Ft. Lupton, CO 80621 Re: Mineral and Leasehold Title Examination Certified to May 20, 2003 at 7:45 a.m. Township 2 North, Range 67 West Section 9:Lot B, Recorded Exemption No. 1921 (Containing 105.732 acres, m/1) Weld County, Colorado Dear Mr. and Mrs. Owens: Pursuant to the request of Mr. Ed Pruss of Coldwell Banker, this office has examined title to the above captioned lands to provide information regarding ownership of the mineral estate and related leasehold title underlying these lands as defined by C.R.S.§ 24-65.5-102. Title materials examined included a Limited Memorandum of Abstract of Title, prepared by Arlen J. Hershberger, petroleum landman, based upon his examination of the records of Transnation Title Insurance Company and the corresponding recorded documents found in the Weld County Clerk and Recorder's office in Greeley, CO, covering the captioned lands from inception of records, to May 20, 2003, at 7:45 a.m. Each interest tabulated below is an undivided interest and has been proportionately reduced where appropriate. Based upon the title data examined, and subject to the exceptions, encumbrances, comments and requirements set forth herein, the undersigned finds title to the captioned mineral lands and leasehold title, as of May 20, 2003, at 7:45 a.m., to be owned and encumbered as follows: Owens C.R.S.§ 24-65.5-102 Title Exam June 13, 2003 Page 2 Mineral Ownership: (Except Coal) Interest% Lse. No. Tract I: Lot B, Recorded Exemption No. 1921 Jack O. Eckstine and Verna LaVonne Eckstine, 50.0000 1 joint tenants 2745 Debra Lane Corpus Christi, TX 78418 The Farmers Reservoir & Irrigation Company 50.0000 2,3 80 S. 27th Ave. Brighton, CO Totals: 100.0000 Oil and Gas Leasehold Ownership: Tract I: EnCana Energy Resources Inc. 950 17th St., Suite 2600 Denver, CO 80202 Patina Oil & Gas Corporation 1625 Broadway, Suite 2000 Denver, CO 80202 Ker-McGee Rocky Mountain Corporation 1999 Broadway, Suite 3600 Denver, CO 80202 The Farmers Reservoir and Irrigation Company Margaret Field Boudreau 1414 10th St. Lake Charles, LA 70601 Marcus Degenhart (apparently deceased 1-19-02) 6505 160th Ave. Brighton, CO 80602 Betty Field 2440 Palmer Ave. Owens C.R.S.§ 24-65.5-102 Title Exam June 13, 2003 Page 3 New Orleans, LA 70118 Bob Hill P.O. Box 425 Clarendon, TX 79226 Matthew R. Hoovler 805 Meadow Run Golden, CO 80403 Janis Lowrey Box 70 Mt. Naches Route Woodville, TX 75979 Jack O. Eckstine and Verna LaVonne Eckstine,joint tenants Coal Ownership: (Unleased) Tract I: Union Pacific Land Resources Corporation Oil and Gas Leases: Lease No.1: Date: February 7, 1970 Lessor: Jack O. Eckstine and Verna LaVonne Eckstine, husband and wife Lessee: T. S. Pace Description: Township 2 North, Range 67 West Section 9: SE/4 Royalty: 12.5% Pooling/Unitization Clause: Yes; 40 + 10% acres oil; 640 acres + 10% gas Special Provisions: None Recording Data: Book 623, No. 1544890 Lease No. 2: Date: April 23, 1971 Lessor: The Farmers Reservoir and Irrigation Company Lessee: Bel Oil Corporation Description: Township 2 North, Range 67 West Owens C.R.S.§ 24-65.5-102 Title Exam June 13, 2003 Page 4 Section 9: SE/4,plus much other land in other sections and townships Royalty: 12.5% Pooling/Unitization Clause: Yes; 80 + 10% acres oil; 640 acres + 10% gas Special Provisions: See lease; provisions include requirement of lessor written consent prior to operations (unless enough acreage for well location permitted by COGCC Recording Data: Book 650, No. 1572094 Lease No. 3: Date: February 1, 1986 Lessor: The Farmers Reservoir and Irrigation Company Lessee: Macey & Mershon Oil Inc. Description: Township 2 North, Range 67 West Section 9: SE/4 Royalty: 12.5% Pooling/Unitization Clause: Yes; broad provision Recording Data: Book 1118, No. 2059797 Please note that the above addresses for parties with ownership interest were obtained from the materials reviewed and that some of this information may be outdated or in error. The above named parties should be notified pursuant to C.R.S. §24-65.5-103, 30 days prior to the initial public hearing on your development application. Please note the term "application for development" is broadly defined to include a preliminary or final plat for a subdivision, a planned unit development, or any other similar land use designation used by a local government. The term includes application for zoning, re-zoning, general development plans, and special use permits where such application is in anticipation of new surface development. The term does not include building permit applications. This opinion is subject to and conditioned upon the accuracy and completeness of the title data examined, including but not limited to the Limited Memorandum of Abstract of Title, prepared by Arlen J. Hershberger, petroleum landman, which is based on the tract book, computer and miscellaneous records of Transnation Title Insurance Company in Greeley, CO and the records of the Weld County Clerk and Recorder's office in Greeley. These records have been shown to be incomplete or inaccurate at times. You should be aware of these potential deficiencies. Also, the undersigned can express no opinion as to the following: Railroad and other rights-of-way or claims not reflected by the data examined, the existence of which may be determined by physical examination of the lands; possessory rights and discrepancies of survey or location which might be reflected by physical examination of the lands; zoning or other land use controls; special districts or special assessments not revealed by the data examined; pending litigation not reflected by a recorded notice of lis pendens; matters of fact not disclosed of record which vary from statutorily permitted presumptions of fact or statutorily created prima facie Owens C.R.S.§ 24-65.5-102 Title Exam June 13, 2003 Page 5 evidence of facts; and mechanic's liens,judgment liens, or other statutory liens not reflected by the data examined. This letter is neither intended to, nor does it constitute an opinion as to the quality of your title in or to the captioned lands. Should you later acquire an interest in the mineral estate, you are encouraged to retain the same by reservation or exception in any subsequent conveyance you might make. I wish to thank you for allowing our office to assist you in this matter and should you have any questions, please feel free to call me. Sincerely, KUHN, CARNES, & ANDERSON, P. C. Kip And rson KAA/ab Chris Gathman 20 June, '03 Weld County Planner Chris, Re Gloraloma Estates submittal, specifically, Surface Use Agreement with Patina Oil and Gas, and Agreement for Compatable Development with EnCana Emergy, Don and Linda Owens have signed and had their signatures notarized on the two documents supplied by the respective oil companies (enclosed with submittal.) They will present their signed copies to the respective oil companies upon the successful recording of the final plat of the Gloraloma Estates Subdivision. Sincerely, \ • Edward F Pruss 3-07-03 Draft SURFACE USE AGREEMENT THIS SURFACE USE AGREEMENT (the "Agreement") is made and entered into this day of Mardi, 2003, (the "Effective Date") by and among PATINA OIL & GAS CORPORATION ("Patina"), a Delaware corporation, 1625 Broadway Suite 2000, Denver, Colorado 80202 and Don and Linda Owens ("Developer") , 8585 WCR 22, Ft. Lupton, Colorado . RECITALS A. Developer is the owner or has an option to purchase the surface estate of a 106 acre tract of land of which is located in the SE/4 of Section 9 Township 2 North, Range 67 West of the 6'h P.M., County of Weld, State of Colorado (the "Property"). The Property is more specifically described on Exhibit "A-1" attached hereto and made apart hereof. B. The mineral estate in and under the Property is presently subject to valid and subsisting oil and gas leases (the "Leases"), which leasehold interest is owned of record by Patina. The Leases are more specifically described on Exhibit "A-2" attached hereto and made apart hereof. C. Patina's leasehold rights include, among other things, the right of ingress and egress for the purposes of exploration, development, drilling, re-drilling, testing, completion, re-completion, re-entry, deepening, fracturing, re-fracturing, stimulation, reworking, production and maintenance operations associated with oil and gas wells from the surface to the top of the J Sand formation and the associated pipelines and production facilities to be located on the Property. D. Patina currently operates the Eckstine V 9-16 well located in the SE/4SE/4 on the Property and the Eckstine V 9-10 & 9-15 (collectively the"Wells") located off the Property, all in the SE/4 of Section 9, Township 2 North, Range 67 West of the 6'h P.M., and their associated flow lines and production facilities located on the Property. E. Developer desires to undertake certain development of the surface of the Property, including residential housing. F. Patina and Developer enter into this Agreement to provide for the coexistence and joint development of the surface estate and the oil and gas estate of the Property, and to delineate the process by which the parties shall comply with respect to the development of the two estates. NOW, THEREFORE, in consideration of the covenants set forth herein and the mutual benefits to be derived by the parties hereto, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties do hereby agree as follows: 1. AREA RESERVED FOR OIL AND GAS OPERATIONS. 1.1. Oil and Gas Operations. Patina shall have the continued right to deepen, recomplete, fracture, re-fracture, stimulate and rework the Wells. In order to provide for such, Developer shall, and does hereby ratify and, to the extent necessary, grant to Patina an easement, to utilize the area depicted and/or described on Exhibit "A" attached hereto and made apart 1 3-07-03 Draft hereof as the "Oil and Gas Operations Arca(s)" for the wellsite, production facilities, pipelines and access roads for such operations. The Oil and Gas Operations Area(s) shall be deemed to include the area measuring one hundred filly feet (150') radius from any well, two hundred feet (200') from any tank or separator, fifteen feet (15') from any pipeline, and the surface area of the fifteen foot (15') access road. 1.2 Oil and Gas Operations Area(s). The Oil and Gas Operations Area(s) shall be reserved and utilized for the exclusive purpose of any and all oil and gas operations by Patina, including, but not limited to, drilling and production activities, workovers, well deepenings, recompletions, fracturing, drilling of replacement wells, and re-fracturing, among other things. 1.3 Pipeline Easements. Patina shall have the right to construct, operate and maintain pipelines on the Property. In order to provide for such, Developer shall, and does hereby ratify to the extent necessary, grant to Patina an easement, substantially in the form of Exhibit "B", attached hereto and made a part hereof to utilize the areas depicted and/or described on Exhibit "A" as the "Pipeline Easements". 1.4 Limitation on Use of the Property. Except for the Oil and Gas Operations Area(s) and Pipeline Easements, and access as provided in Section 8, Patina shall not use or occupy any part of the surface of the Property except in the event of an emergency or for necessary incidental and temporary activities. As part of the consideration for this limitation by Patina, of what would otherwise be the right to make reasonable use of any part of the Property in the conduct of their operations, and without limiting the applicability of Sections 11 and 12 below, Patina shall not be obligated to pay, and Developer hereby waives any right to receive, any further surface damage payments, license or use fees, now or in the future, associated with the operations of Patina within the Oil and Gas Operations Area(s) and Pipeline Easements and access. 1.5 Developer shall place no property lines, buildings, structures or improvements of any kind (including streets, sidewalks, curbs and gutters) within the Oil and Gas Operations Area(s) or Pipeline Easements unless agreed to in writing by Patina. 1.6. Without prior written consent from Patina, Developer shall not construct or allow the construction of dwellings or structures intended for human occupancy within sixty (60) feet on either side of the Pipeline Easements except at those locations where the pipeline is to be sleeved. At the locations where the pipeline is sleeved, without the prior written consent from Patina, Developer shall not construct or allow the construction of dwellings or structures intended for human occupancy within twenty-five (25) feet on either side of the Pipeline Easements. 1.7 Waiver of Certain Requirements. So long as Patina's operations have not substantially breached any material terms of this Agreement, Developer waives all setback requirements in Colorado Oil and Gas Conservation Commission ("COGCC") Rule 603, or any successor rule or amendment to the COGCC setback rules, and to any other state or local setback requirements or other requirements or regulations that are or become inconsistent with this Agreement or that would prohibit or interfere with the rights of Patina to explore for and produce the oil and gas in accordance with this Agreement. Developer understands that Patina may cite the waiver in this Section 1.7 in order_ to obtain a location requirement exception or variance under COGCC rules or from a local jurisdiction. Developer also agrees that it will not object in 2 3-07-03 Draft any forum to the use by Patina of the surface of the Property consistent with this Agreement and that it will also provide Patina with whatever support in writing they may reasonably require to obtain permits from the COGCC or any local jurisdiction. 2. PRODUCTION FACILITIES. Patina operates tanks, separators or other production facilities located on the Property within the Oil and Gas Operations Area(s) as described in Section 1.1 above. Without the prior written consent of the Developer, Patina shall not locate additional facilities on the Property in the future. Patina shall install and maintain fences, gates and locks reasonably necessary for the security of the Well and/or production facilities in the Oil and Gas Operations Area. Such fences, gates and locks shall be installed at the expense of Developer and maintained at the expense of Patina and shall be of a type and quality selected by Developer and approved by Patina. 3. PIPELINE CONSTRUCTION AND REMOVAL. Developer may request relocation and removal of certain pipelines in the future. In such event, Patina shall install the relocated pipelines from the Wells to the intersection of that portion of pipeline that is not to be relocated within the Pipeline Easement and remove the abandoned segments of the pipeline. The pipeline will be constructed with casing sleeves and risers, all in accordance with the following terms and conditions: 3.1 Construction of Pipeline. In the event Developer desires that Patina relocate pipelines in the future, Developer shall submit a scaled plat to Patina indicating the exact location of pipelines to be relocated and abandoned as set forth in Section 5. Developer shall complete the field staking for the installation of the new pipeline alignment and its required depth as provided below after giving written notice to Patina. The field staking will consist of a marker every thirty (30) feet, marking the desired depth of the pipeline, and the beginning and ending locations of portions of the pipeline. Casing sleeves shall be installed as identified on the scaled plat. The sleeved segments of the pipeline shall have casing risers at each end of the sleeved segments and the field staking shall identify the location of casing risers and beginning and ending of each sleeve. Within ninety (90) days following the completion of the field staking of the pipeline location, Patina will complete the construction of the pipeline along the routes staked in the field and identified by Developer on the scaled plat. The pipeline shall be buried to a depth sufficient to result in forty-eight (48) inches below the proposed finished grade of the surface. In no event shall Patina be required to install pipelines at a depth exceeding eight (8) feet below the grade exiting at the time of installation. 3.2 Removal of Abandoned Pipeline. On the completion of construction of the new pipeline, Patina will remove that portion of the pipeline that was abandoned. 3.3 Line Crossings. If Developer's surface development of the Property requires the crossing of Patina's relocated pipeline (within five (5) feet of a location that is not sleeved or two (2) feet of a location that is sleeved) by a sewer line, water line or other utility, Developer shall notify Patina (a) of the date and time of the line crossing (the "Commencement Time"), and (b) when the line crossing has been completed (the "Completion Time"). If in response to Developer's notification, Patina suspends production through the pipeline, then Developer shall pay Patina for each calendar day or part thereof between the Commencement Time and the Completion Time, the sum of three hundred fifty dollars ($350) per well per day. Such payments shall be the agreed amount to compensate Patina for its response and any lost or delayed 3 3-07-03 Draft production, and shall be made to Patina within thirty (30) days of receipt of an invoice from Patina. Any such payments shall be in addition to the payment for lost and/or delayed production contained in the Relocation Costs as defined below. Developer shall maintain a distance of a minimum two (2) feet above or below the pipeline at any such crossings. 3.4 New Survey and Easement. If pipelines are moved to locations different than those depicted on Exhibit A, Developer shall survey the new locations and revise Exhibit's A & B accordingly. 4. CONSTRUCTION COORDINATION. Upon commencement by Patina of the construction operations pursuant to Section 3 above, Developer shall cease those operations on the Property that would be likely to interfere with Patina' obligations pursuant to this Agreement. To the extent that Developer's operations delay Patina's operations or upon the occurrence of an event of force majeure, Patina will not he subject to the performance time frames set forth in Sections 3 and 5. 5. INITIAL CONSIDERATION, CONSTRUCTION AND RELOCATION COSTS. Upon execution of this Agreement, Developer shall pay Patina the sum of Two Thousand Five Hundred dollars ($2,500.00) (the "Initial Consideration") to enter into this Agreement and as a pre-payment against the costs of the construction and relocation operations that may be requested by the Developer in the future, including land consulting fees and expenses. In the event the Developer does not require relocation of pipelines, the Initial Consideration described above shall be retained in full by Patina. Should Developer desire that Patina relocate pipelines, Developer shall submit a scaled plat identifying the pipelines to be relocated (the "Relocation Cost Request"). Within thirty (30) days from receipt thereof, Patina shall submit to Developer an estimate of the cost to relocate the pipeline deducting the Initial Consideration, (the "Relocation Costs"). Thirty (30) days prior to the date Developer requires Patina to commence relocation operations, Developer shall submit written notice and pay Patina the Relocation Costs. Patina shall complete construction within ninety (90) days from the date the Relocation Costs are paid and notice of staking as set forth in Section 3.1 has been received, whichever is the later. The estimate of Relocation Costs shall expire one hundred twenty (120) days from the date of submitting the Relocation Cost Request. If the Developer desires at a subsequent date to request relocation of pipelines, Developer shall resubmit a relocation Cost Request. Patina will prepare and submit a revised estimate of Relocation Costs without deduction of the Initial Consideration and the Developer shall then pay the revised amount. 6. ACCESS. 6.1 Developer shall at all times provide Patina access to the Oil and Gas Operations Area(s) and Pipeline Easements, though the location of that access may vary from time to time in accordance with the needs and progress of such surface development. 6.2 Developer will construct paved roads, access roads, reinforced curbs, reinforced gutters and reinforced sidewalks to accommodate Patina's access to the Oil and Gas Operations Area(s) and Pipeline Easements and shall provide curb cuts at all "Access Points" as shown on Exhibit "A". The curb cuts at the Access Points shall be at least thirty (30) feet wide. The paved roads leading to the Access Points and the curbs, gutters and sidewalks at the Access Points shall 4 3-07-03 Draft be reinforced to accommodate a gross vehicle weight of at least 28,000 pounds per axle. Within thirty (30) days following completion of the pipeline relocation or paved road construction, whichever is the first to occur, Developer will construct access roads from the Access Points, as depicted on Exhibit A with a width of 15 feet, provide a 6 inch aggregate base course, and turn such roads over to Patina for maintenance. 7. LANDSCAPING. Developer and/or assigns may install and maintain ground cover, landscaping and watering systems ("Landscaping") within the Pipeline Easements at its own expense and risk, acknowledging that Patina's normal operations may from time to time disturb or destroy said Landscaping. Developer hereby agrees to install and maintain said Landscaping in such a way as to not violate the COGCC regulations or impede Patina's access and/or operations. Developer and/or assigns hereby accepts all responsibility for the cost of installation, repair and/or replacement of said Landscaping within the Pipeline Easements and Patina shall not be responsible for damage to said Landscaping resulting from its future access or operations. Prior to commencing installation of the Landscaping, Developer shall consult with and obtain written approval from Patina to ensure that there are no adverse impacts upon Patina's ability to perform future operations, which consent shall not be unreasonably withheld 8. NOTICE OF FUTURE OPERATIONS. Patina shall provide at least seven (7) days prior written notice to Developer in advance of any operations (other than the drilling of new wells) within the Oil and Gas Operations Area(s) in connection with the reworking, fracturing, deepening or other unusual or other than routine operations on the Wells; provided, however, that Patina shall have immediate access in the event of an emergency. 9. NOTICES TO HOMEOWNERS AND BUILDERS. Developer shall record a plat or map showing the Oil and Gas Operations Area(s), Wells and Pipeline Easements in the real property records of Weld County, Colorado. In addition, Developer shall record in the real property records of Weld County, Colorado a "Notice of Oil and Gas Operations", substantially in the form attached hereto as Exhibit "C" that conspicuously states that: 9.1 there may be ongoing oil and gas operations in the Oil and Gas Operations Area(s) and Pipeline Easements; 9.2 Purchasers of all or a portion of the Property, as successors in interest to Developer, will be acquiring a proportionate interest in Developers' rights and obligations under this Agreement and will be subject to the waivers contained in this Agreement which, with respect to operations within the Oil and Gas Operations Area(s) and subject to paragraph 1.7 above, shall constitute a waiver of the setback requirements provided in Commission Rule 603.e.(6) or any successor or amended state setback rule and also local setback requirements, among other obligations. 10. FUTURE OPERATIONS. Patina shall make all reasonable efforts to pursue any drilling, re-drilling, reworking and/or recompletion operations in a diligent manner so as to minimize the total time period on location and to avoid rig relocations or startup delays during the course of drilling. Developer waives and shall not assert any right to require that wellhead or production equipment be located in conformance with setback requirements different from those agreed to in this Agreement (including but not limited to those concerning any "high density" rules of the COGCC). 5 3-07-03 Draft 11. GOVERNMENTAL PROCEEDINGS. x- 11.1 Developer shall not, directly or indirectly, oppose or encourage opposition to Patina in any agency, administrative or other governmental proceedings, including but not limited to the COGCC, Weld County or other governing body proceedings, related to the operations of Patina on the Property, including but not limited to drilling and production activities, workovers, well deepenings, recompletions, fracturing, replacement wells and re- fracturing, provided that the position of Patina in such proceedings is not materially inconsistent with this Agreement. 11.2 Patina shall not directly or indirectly oppose or encourage opposition to Developer in any agency, administrative, Weld County or other governing body proceedings, relating to Developer's operations on and development of the Property, including residential and associated development, provided that Developer's position in such proceedings is not materially inconsistent with this Agreement. 12. FORCE MAJEURE 12.1 In the event either party is rendered unable, by an event of Force Majeure (defined below) to perform, wholly or in part, any obligation set forth in this Agreement, other than the obligation to pay money, then the performance by the affected party will be suspended during the continuance of such event of Force Majeure. The party experiencing an event of Force Majeure will provide reasonable notice to the other party as soon as possible with all reasonable dispatch. As used herein, the term "Force Majeure" shall mean any act of God, acts of the public enemy, wars, blockages, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, severe weather, floods, washouts, arrests and restraints of the federal, state or local government, civil disturbances, explosions, breakage or accidents to machinery or lines of pipe, the binding order of any court or governmental authority which has been resisted in good faith by all reasonable legal means, delay in securing environmental approvals, the inability to obtain necessary supplies, material, equipment, machinery or labor and any other causes, whether of the kind herein enumerated or otherwise not within the control of the party claiming suspension and which by the exercise of due diligence such party is unable to prevent or overcome. 13. LIMITATION OF LIABILITY, RELEASE AND INDEMNITY. 13.1. NO PARTY SHALL BE LIABLE FOR, OR BE REQUIRED TO PAY FOR, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES TO ANY OTHER PARTY FOR ACTIVITIES UNDERTAKEN WITHIN THE SCOPE OF THIS AGREEMENT. 13.2 Each party shall be and remain responsible for all liability for losses, claims, damages, demands, suits, causes of action, fines, penalties, expenses and liabilities, including without limitation attorneys' fees and other costs associated therewith (all of the aforesaid herein referred to collectively as "Claims"), arising out of or connected with each such party's ownership or operations, including each such parties' employees, agents, contractors, sub- contractors or other invitees on the Property, no matter when asserted, subject to applicable statutes of limitations. Each such party shall release, defend, indemnify and hold the other parties, their officers, directors, employees, successors and assigns, harmless against all such Claims that arise from its negligence. This provision does not, and shall not be construed to, create any rights in persons or entities not a party to this Agreement, nor does it create any 6 • 3-07-03 Draft separate rights in parties to this Agreement other than the right to be indemnified for Claims as provided herein. 14. EXCLUSION FROM INDEMNITIES. The indemnities of any party herein shall not cover or include any amounts, which the indemnified party may recoup from any third party, or that for which the indemnified party is reimbursed by any third party. The indemnities in this Agreement shall not relieve any party from any obligations to third parties. 15; NOTICE OF CLAIM FOR INDEMNIFICATION. If a Claim is asserted against a party for which another party would be liable under the provisions of Section 13 above, it is a condition precedent to the indemnifying party's obligations hereunder that the indemnified party give the indemnifying party written notice of such Claim setting forth all particulars of the Claim, as known by the indemnified party, including a copy of the Claim (if it is a written Claim). The. indemnified party shall make a good faith effort to notify the indemnifying party within thirty (30) days of receipt of a Claim and shall affect such notice in all events within such time as will allow the indemnifying party to defend against such Claim. 16. REPRESENTATIONS. Each party represents that it has the full right and authority to enter into this Agreement and Developer specifically confirms its capacity to validly execute the rights of way and easements provided for herein. Patina represents that it owns the oil and gas leasehold interest in the Leases from the surface to the top of the J formation under the Property as set forth in Recital C. Patina does not represent and specifically asserts that it does not have the right to bind any other oil and gas interest owner or lessee for the Property. 17. SUCCESSORS. The terms, covenants and conditions hereof shall be binding upon and shall inure to the benefit of the parties and their respective heirs, devises, executors, administrators, successors and assigns. This Agreement and all of the covenants herein shall be covenants miming with the land. 18. NOTICES. Any notice or other communication required or permitted under this Agreement shall be sufficient if deposited in the U.S. Mail, postage prepaid, with a copy sent via facsimile, addressed to each of the following: If to Patina Oil & Gas Corporation: Patina Oil & Gas Corporation 1625 Broadway, Suite 2000 Denver, Colorado 80202 Attention: Land Department FAX (303) 595-7410 If to Developer Don and Linda Owens 8585 WCR 22, Ft. Lupton, Colorado . FAX Any party may, by written notice so delivered to the other party, change the address, fax number or individual to which delivery shall thereafter be made. 7 3-07-03 Draft 19. RECORDING. The Notice of Oil and Gas Operations and the plat or map required pursuant to Section 10 above shall be promptly recorded in the Office of the Clerk and Recorder for Weld County by Developer, and Developer shall provide the other parties with a copy thereof showing the recording information as soon as practicable thereafter. 20. SURFACE USE AGREEMENT. In consideration of the parties' respective rights, obligations and benefits, as outlined herein, this Agreement shall constitute a surface use or surface damage agreement provided for under the COGCC's Rules and Regulations or under any oil and gas leases covering the Property. 21. APPLICABLE LAW. This Agreement shall he governed by and construed in accordance with the laws of the State of Colorado, without reference to its conflict of laws provisions. 22. ENTIRE AGREEMENT. This Agreement sets forth the entire understanding among the Parties regarding the matters addressed herein, and supersedes any previous communications, representations or agreement, whether oral or written. This Agreement shall not be amended, except by written document signed by all parties. 23. HEADINGS. The section headings contained herein are for convenience in reference and are not intended to define or limit the scope of any provision of this Agreement. 24. TIME OF ESSENCE. Time is of the essence in this Agreement. 25. NON-WAIVER. Waiver by either party or of the failure of any party to insist upon the strict performance of any provision of this Agreement shall not constitute a waiver of the right or prevent any such party from requiring the strict performance of any provision in the future. 26. SEVERABILITY. Any covenant, condition or provision herein contained that is held to be invalid by any court of competent jurisdiction shall be considered deleted from this Agreement, but such deletion shall in no way affect any other covenant, condition or provision herein contained so long as such deletion does not materially prejudice a party in its rights and obligations contained in valid covenants, conditions or provisions. In the event that any part of this Agreement would otherwise be unenforceable or in conflict with applicable laws due to the term or period for which such part is in effect, the tern or period for which such part of this Agreement shall be in effect shall be limited to the longest period allowable which does not cause such part to be unenforceable or in conflict with applicable laws. 27. NO JOINT VENTURE. This Agreement is not intended to, nor shall it be interpreted to create a joint venture, partnership or any other relationship among the parties. 28. COUNTERPARTS. This Agreement may be executed by facsimile and in any number of counterparts, each of which shall be deemed an original instrument, but all of which together shall constitute but one and the same instrument. 8 3-07-03 Draft The parties have executed this Agreement as of the day and year first above written. PATINA O11, & GAS CORPORATION 13v: David W. Siple, Vice President DEVELOPER Bv: Don Owens. By: Linda Owens. 9 . 3-07-03 Draft ACKNOWLEDGMENTS STATE OF COLORADO ) ss. CITY & COUNTY OF DENVER ) The foregoing instrument was acknowledged before me this day of 2003, by David W. Siple, Vice President for Patina Oil & Gas Corporation, a Delaware corporation, on behalf of that corporation. Witness my hand and official seal. Notary Public My Commission expires: STATE OF COLORADO ) ss. COUNTY OF WELD The foregoing instrument was acknowledged before me this day of �� Ct, , 2003, by Don Owens and Linda Owens. Witness my hand and official seal. u/ fits Notar Public My Commission expires: a0O9 _ N SOT( 9 • <:x OF eIG•"o0 COLOPP 10 AGREEMENT FOR COMPATIBLE DEVELOPMENT 'PHIS AGREEMENT FOR COMPATIBLE DEVELOPMENT is made and entered into this day of dewy, 2003, by and between EnCana Energy Resources Inc. ("EnCana") with an address for business of 950 17th Street, Suite 2600, Denver, Colorado 80202, and Don Owens and Linda Owens ("Owens"), with an address for business of 8585 Weld County Road 22, Fort Lupton, Colorado 80621_. RECITALS A. Owens are the owners of the surface estate described as Lot "B" of Recorded Exemption it 1921, being a portion of the E%ASE% of Section 9 of Township 2 North, Range 67 West of the 61' P. M., Weld County, Colorado as recorded at Reception Number 2532509 of the records of Weld County, Colorado (the "Property"). B. Owens imend to develop a housing development on the surface estate. C. EnCana is the owner of certain oil and gas leasehold and/or mineral rights in the Property. D. EnCana, as owner of the oil and gas leasehold and mineral interests, has the right to explore for, develop, produce, transport and market oil and gas and associated products from the Property, and to utilize such portion of the surface as is reasonable for such purposes. E. Oil and gas well sites, production sites, oil and gas facilities, wellsite access roads and pipelines are located on the Property as of the date of this agreement, and there may be additional oil and gas operations in the future. F. Rule 318.a. of Colorado Oil and Gas Conservation Commission ("COGCC") rules and regulations currently allow the owners and/or lessees of the oil and gas in the Property to locate at least five drillsite locations within each quarter-section tract within the governmental section upon which the Property lies. G. The parties enter into this Agreement for Compatible Development("Agreement") to provide for the co-existence and joint development of the surface estate and the oil and gas estate and to establish the process through which EnCana and Owens will develop the two estates. NOW THEREFORE, in consideration of the covenants and the mutual promises set forth herein, including the representations set forth in the recitals, the parties agree as follows: 1. Definitions. A. Application for development is a proposed subdivision plat, a planned unit development, a specially planned area plan, a development or annexation request, any zoning or special use permit application, or any other designation for a surface development application used by a local jurisdiction. B. COGCC is the Colorado Oil and Gas Conservation Commission. Page 1 of 1 Pages a . C. Impact Mitigation is defined as those products or services used for improving aesthetic or environmental conditions on or around drillsite or production site locations, equipment or appurtenances thereto. D. Oil and Gas is all oil, gas, and associated liquid hydrocarbons, coal gas, coalbed methane, nitrogen, carbon dioxide, helium and all other related substances. E. Operator means that party responsible for day-to-day operations of an oil and gas well as defined by common industry practice. I . Pipeline whether singular or plural, refers to the tubular equipment, valves, connections and other related equipment, usually underground, used to transport oil and gas from the wellhead to points of processing. This may include lines for gathering from the wellhead or connecting lines carrying oil and gas from several wellheads. G. Production site means that area surrounding proposed well site or other accessory equipment required in oil and gas production, at which may also be located tanks and tank batteries, exclusive of transmission and gathering pipelines. H. Surface use agreement means an agreement governing specifics of surface use as referred to herein. Well site means that area surrounding a proposed or existing well or wells and accessory structures and equipment necessary for drilling, completion, recompletion, workover, development and production activities. 2. Future Well Site and Production Site Locations. A. All surface development and oil and gas development shall be in accordance with statutes, laws and rules of the State of Colorado. B. EnCana shall have continuing access to all of its well sites, production sites, pipelines, roadways and other facilities. Should Owens wish to move the location of any pipeline or surface facility, Owens shall bear the costs and expenses of EnCana's compliance with such a request. C. Owens shall request a meeting with EnCana to locate existing pipelines and to coordinate proposed surface construction activities with current and prospective oil and gas operations. The meeting will take place no later than ten (10) days after such request. D. Owens shall allow EnCana to choose the location of future well site and production site locations to be installed on the Property. The parties shall enter into a separate surface use agreement for each individual wellsite to be developed. E. Each surface use agreement shall provide for: r—. Page 2 of 2 Pages r well and production site locations, each of which constituting a circular area ` 300 feet in diameter or a square area of approximately 300 feet by 300 feet; 2. location of related facilities, including gathering and pipelines; 3. temporary and permanent access routes to all facilities; 4. the possibility of more than one well being located on a well or production site; 5. Owen's reimbursing EnCana for the cost differential between drilling a "straight" hole or "directional" hole, in the event that Owens wishes to develop the surface of a COGCC legally designated location, and Cana agrees to move the location and drill directionally from the exception location. However, Owens understands that EnCana is under no obligation to agree to any such directional drilling. F. The parties hereto shall provide for sufficient setbacks between buildings, building units and lot lines and well sites and production sites to comply with state and local setback regulations to drill a well and to conduct subsequent oil and gas operations. 3. Impact Mitigation. Owens shall bear all costs to install impact mitigation Owens requests at or around existing and future well sites and production sites beyond those measures required by governmental authority. This shall include, but not be limited to, all noise and visual impact mitigation; provided, however, the operator of the well site or production site shall have reasonable discretion to veto or protest the type and location of impact mitigation measures in order to allow for safe oil and gas operations. 4. Access and Pipeline Easements. All existing and future access roads and pipeline easements shall, at a minimum, meet the following criteria as follows: A. Roads used for access and portions of access routes that do not follow paved roads shall be at least thirty(30) feet in width. B. Owens shall keep access roads that are jointly used by surface occupants, the public and the EnCana in good condition and repair until they are dedicated to a local jurisdiction. C. Neither EnCana nor Owens shall unreasonably interfere with the use by the other of access roads. D. All pipeline easements shall be fifty (50) feet in width during construction, replacement and repair activities and thirty (30) feet in width during operations, transportation and maintenance activities. Owens shall grant the pipeline easements (for production from the property and other lands)to EnCana at the time they request them and at no cost to EnCana. E. EnCana may install one or more pipelines within the easements, and may change the size of the pipelines if deemed necessary. Page 3 of 3 Pages 5. Plat and Local Applications. EnCana shall provide to Owens, and Owens shall identify on plats, and in applications for development, the locations and size of possible future well sites, production sites, other oil and gas facilities; possible future access roads and pipeline easements; setbacks between well sites and production sites in relation to planned and existing lot lines. Owens shall record all plats in the office of the Clerk and Recorder of Weld County alter they are approved by appropriate governmental authority. 6. Notice of Application for Development. A. Owens shall provide EnCana with (30) days written notice prior to Owens's filing an application for development with any applicable local jurisdiction. 13. Owens shall provide notice to all owners of mineral rights and/or leasehold rights who have an interest in the Property or portions of the Property included in an application for development of all hearings to be held in the local jurisdiction on the application. At Owens's request, EnCana shall provide any' title materials EnCana may have in its possession to facilitate this request. C. Owens shall provide EnCana a copy of all its surveys for its development. 7. Waiver of Surface Damages. As consideration for any inconvenience to EnCana of surface construction activities that affect existing or future well sites and production sites, access, or pipeline easements, Owens agrees to waive all right to surface damages for those well sites and production sites, access routes and pipeline easements which EnCana has located or will locate on the Property beyond the repair of Owens's facilities existing at the time of such damage. 8. Waiver of Certain Requirements and Objections. Owens agrees to waive state regulations or other requirements inconsistent with this Agreement or a surface use agreement and to not object in any forum to the use by EnCana of the surface of the Property consistent with this Agreement or a surface use agreement. Owens shall provide EnCana with all approvals and waivers, as surface owner, that are convenient or necessary to drill a well or to conduct oil and gas operations on the Property because of any law or regulation, including any regulations of the COGCC. 9. Compliance with Rules and Regulation. Except as may be otherwise provided in paragraph 9, Owens and EnCana agree to comply with all valid and applicable federal and state regulations that pertain to the development of the surface estate and the exploration and development of Oil and Gas on the Property. EnCana shall make reasonable efforts to other mineral and/or leasehold owners to enter into surface use agreements with Owens. 10. No Objection to Development. EnCana agrees that they will not object to a request by Owens to annex, rezone, or plat all or any portion of the Property to the extent such request is consistent with the use by EnCana of the surface of the Property in the manner identified in this Agreement and a surface use agreement. 11. Surface Owner Consent. Owens, itself and its successors and assigns, agrees that it will not withhold its consent as surface owner of the Property(if EnCana in its sole discretion requires such consent) if EnCana exercises its rights to explore for and develop the Oil and Gas under Page 4 of 4 Pages the Property in accordance with this Agreement and surface use agreements referenced herein. 12. Indemnification. Owens agrees to defend, indemnify and hold EnCana harmless for injuries to persons and damages to property caused by Owens's operations or by the operations of any agent, representative, contractor or subcontractor on the Property. 13. Individual Liability of Parties. The liability of EnCana and Owens to perform any obligations pursuant to this Agreement shall be several and individual only and not joint and collective. 14. No Limitation on Rights. Nothing in this Agreement is intended to limit the rights of the EnCana to drill wells in legal COGCC locations or to apply to the C:OOOC for exception locations. 15. Successors and Assigns. This Agreement and all of the covenants in it shall be binding upon the personal representatives, heirs, successors and assigns of all of the parties and the benefits of this Agreement shall inure to their personal representatives, heirs, successors and assigns. This Agreement and all of the covenants in it shall be covenants running with the land. 16. Recording. This Agreement or a Memorandum of this Agreement shall be recorded with the Clerk and Recorder of Adams County. 17. Governing Law. The validity, interpretation and performance of this Agreement shall be r governed and construed in accordance with the laws of the State of Colorado. 18. Severability. If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void insofar as it conflicts with such laws; however, the remainder of this Agreement shall be in full force and effect. 19. Notices. Any notice or communication required or permitted by this Agreement shall be given in writing either by (a) personal delivery; (b) expedited delivery service with proof of delivery; (c) United States mail, postage prepaid, and registered or certified mail with return receipt request; the receipt of which shall be acknowledged, addressed as follows: To EnCana: EnCana Energy Resources Inc. 950 17°i Street, Suite 2600 Denver, Colorado 80202 To Owens: Don Owens and Linda Owens 8585 Weld County Road 22 Fort Lupton, Colorado 80621 20. Counterpart Executions. This Agreement may be executed in counterparts, each of which shall be deemed an original. 21. Entire Agreement. This Agreement sets forth the entire understanding among the parties and supersedes any previous communications, representations or agreements, whether oral or Page 5 of 5 Pages written. No change of any of the terms or conditions herein shall be valid or binding on any party unless in writing and signed by an authorized representative of each party. IN WftNESS WHEREOF, the undersigned parties have caused this Agreement to be effective the first day of October, 1998, but executed on the dates acknowledged below. EnCana Energy Resources Inc Don Owens 13y: James J. Benner Its: Vice-President- Gathering Services Linda Owens ACKNOWLEDGMENTS State of Colorado ) ) §• County of Weld ) The foregoing Agreement was acknowledged before me this& day of JM++r+My 2003 by Don Owens and Linda Owens Witness my hand and official seal. My Commission Expires:1,��(J-LL � r U ��.... Not..yPur'ic =.�.NE.�::. roTAftNet i i i N •`. !o% 1 III,-v;'cc/8`\.'q5 i sr State of Colorado ) \F of oo\-o. City and ) § ANA County of Denver ) The foregoing Agreement was acknowledged before me this day of January 2003 by James J. Benner as Vice-President, Gathering Services of EnCana Energy resources Inc. Witness my hand and official seal. My Commission Expires: Notary Public Page 6 of 6 Pages Hello