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OIL AND GAS DIVISION ORDER
OPERATOR: KERR-MCGEE ROCKY MOUNTAIN CORPORATION Date: August 21,2003
1999 BROADWAY,SUITE 3600 Effective Date: Date of First Production
DENVER,CO 80202 Well Number: 990351
(303)296-3600
Well Name: HSR-Miller Federal 15-6A
Description: T2N-R66W,Section 6: SE'%.
Formation: Codell
County and State: Weld County,Colorado
Owner: Address: Decimal Interest:
WEL210 915 10TH STREET 0.00142190 RI
WELD COUNTY BOARD OF GREELEY,CO 80632
COMMISSIONERS
The undersigned certifies the ownership of the decimal interest in production or proceeds as described above payable by Kerr-McGee Rocky
Mountain Corporation.
Kerr-McGee Rocky Mountain Corporation shall be held harmless in the event of, and is hereby released from any and all damage or loss which
might arise out of any overpayment or underpayment. The Owner executing this Division Order, in consideration of payments by Kerr-McGee Rocky
Mountain Corporation, agrees to pay any overriding royalty or royalty owners and/or all other persons who may have right, title or interest in the
interest in production set out above and further agrees to protect, indemnify and hold Ken-McGee Rocky Mountain Corporation harmless from and
against any and all loss, cost or expense which it may suffer or sustain by reason of such payment regardless of how any such claim or demand may
arise,including all costs or expenses incurred by Kerr-McGee Rocky Mountain Corporation in defending its position in any such claim,suit or action.
The undersigned agrees to notify Kerr-McGee Rocky Mountain Corporation, in writing, of any change in ownership, decimal interest, or payment
address. All such changes shall be effective the first day of the month following receipt of such notice.
...may:;..
':.'osixelifiltitteitttRocky MountakFObr dstlon le+authorized to withhold paymemyARalbrirrllsulSYmksft*te*epm r+alradderemolaim asserted regarding*"t
the interest in production claimed herein by the undersigned. The undersigned agrees to indemnify and reimburse'K*n'-McGee Rocky Mountain
Corporation any amount attributable to an interest to which the undersigned is not entitled.
KemMcGee Rocky Mountain Corporation may accrue proceeds until the total amount equals twenty-five dollars($25.00),or pay annually,whichever
occurs first,or as required by applicable state statute.
This Division Order does not amend any lease or operating agreement between the undersigned and the lessee or operator or any other contracts for
the purchase of oil or gas.
In addition to the terms and conditions of this Division Order, the undersigned and Kerr-McGee Rocky Mountain Corporation may have certain
statutory rights under the laws of the state in which the property is located.
The undersigned authorizes Kerr-McGee Rocky Mountain Corporation to withhold from the proceeds of any and all production.referred to herein the
amount of any tax placed thereon by any govemmental authority and to pay the same on our behalf.
WitnesslAttest:
Owner(s)Signature(s): n�M(1\11I YL//11 f ,////AA//S//V////
Dav1 .4g, a U9/LL/LUU3 ."k toe oS a
Board of County Co ssioners
Owner(s)S.S.or Tax I.D.# 84-6000-813
f�l Clerk to the Boa
Owner Daytime Telephone# (970)356-4000j'fi
'�/
ft
Owner Fax Telephone# (970) 352-0242
Federal Law requires you to furnish your Social Security or Taxpayer Identification Number.
Failure to comply will result in 31%tax withholding and will not be refundable by Payor.
2003-2718 LEA
���� 659 Recorded .i----` N�e'eipelt,..+p_.-M DEC 2 7 1971 / '
�. - � �Ag3r ;NOEXED
Rec. No .�---- � :. JJ�•----•Ann Spomer, Recorder
Producers 88 (272)3-es-Colorado
OIL, GAS AND MINERAL LEASE e2
THIS AGREEMENT made this 28th day of October 18...71.. between
. Weld County, a political subdivision of the....State....of C.olorado.,....by the...Board...of....County
Commissioners, for its reSpe.Ctive interest
c/6 Board of County Commissioners,._Weld...County...Court...House,...freeley.,...Colorado
Lessor (whether one or more), and AMOCO...Produotion....Company.,....Security.Life.._Bldg...,._Denver..,....Colorado
Lessee, WITNESSETH:
I. Lessor In consideration of "' Ten anti more - Dollars
(%g, 10.00 & more ) in hand paid, of the royalties herein provided, and of the agreement of Lessee herein contained, hereby grants, leases and lets
exclusively unto Lessee for the purpose of investigating, exploring, prospecting, drilling and mining for and producing oil, gas, other hydrocarbons and.
without restriction to such enumerated minerals, all other minerals whether similar or dissimilar to those particularly specified herein, laying pipe lines.
building tanks, power stations, telephone lines and other structures thereon to produce, save, take care of. treat, transport and own said products, and
housing its'employees, the following described land In Weld County,Colorado.to-wit:
Tract No. 1:- 1.82 acres of land, more or less, out of the W/2 SE/Lt Section 6, Township 2
North, Range 66 West and being the same land described in that certain deed recorded in
Book 43, at Page 156 of the Weld County Records.
Tract No. 2: 1.50 acres of land, more or less, out of the W/2 SW/4 Section 7, Township 2
North, Range 66 West and being the same land described in that certain deed recorded in
ik/ Book 76, at Page 366 of the Wald County Records.2gem Rem
In addition to the land above described, Lessor hereby grants.grants, leases and lets exclusively unto Lessee e same extent as if specifically
described herein all lands owned or claimed by Lessor which are adjacent, contiguous to or form a part of the lands above particularly described, in-
cluding all oil, gas, other hydrocarbons and all other minerals underlying lakes, rivers, streams, roads, easements and rights-of-way which traverse or
adjoin any of said lands. For rental payment purposes, the land included within this lease shall be deemed to contain 3=32 acres,
whether it actually comprises more or less. gel 2. Subject to the other provisions herein contained, this lease shall be for a term of gefh from this date (called "primary term") and as long
thereafter as oil, gas, other hydrocarbons, or other mineral is produced from said land hereunder, or drilling or reworking operations are conducted
thereon.
3. The royalties to be paid by Lessee are: (a) on oil, one-eighth of that produced and saved from said land, the same to be delivered at the
wells, or to the credit of Lessor into the pipe line to which the wells may be connected; Lessee may from time to time purchase any royalty oil in its
ose possession,n paying the
market price
therefor o prevailing aid lin for
the field
ld where
off the produced on the date of purchase; (b) on gas, including easinghead gas or
y p [ premises or in the manufacture of gasoline or other products therefrom,
the market value at the well of one-eighth of the gas so sold or used, provided that on gas sold at the wells the royalty shall be one-eighth of the amount
realized from such sale; (e) on all other minerals mined and marketed, one-tenth either in kind or value at the well or mine, at Lessee's election, except
that on sulfur the royalty shall be fifty cents (504) per long ton. Lessee shall have free use of oil, gas. coal, wood and water from said land, except
water from lessor's wells, for all operations hereunder, and the royalty on oil and gas shall be computed after deducting any so used. U a well capable
of producing gas in paying quantities is completed on the above described land and is shut in, this lease shall continue in effect for a period of one
year from the date such well is shut in. Lessee or any assignee may thereafter, in the manner provided herein for the payment or tender of delay
rentals,pay or tender to Lessor as royalty, on or before one year from the date such well is shut in, the sum of$100.00 per well, and, if such payment or
tender is made. this lease shall continue in effect for a further period of one year. In like manner and upon like payments or tenders annually, made on
or before each anniversary of the shut-in date of such well. this lease shall continue in effect for successive periods of twelve (12) months each.
4. If operations for drilling are not commenced on said land as hereinafter provided, on or before one year from this date. the lease Aral) then
terminate as to both parties, unless on or before such anniversary date Lessee shall pay or tender to Lessor or to the credit of Lessor74Wfio.. r _
of County Commissioners, at .Greeley,. Colorado which E®�S�n31O g B ccesson are Lessor's agent
and shall continue as the depository for a ren a s payable hereunder regardless less of changes in ownership of said an or the rentals either by conveyance
or by the death or incapacity of Lessor) the sum of Thx'e.e...and...32/100 - - - - - ., - .....-.__....-...-...__.. ._...._...Dollars
(g 3.32 ), (herein called rental), which shall cover the privilege of deferring commencement of operations for drilling for a period of
twelve (12) months. In like manner and upon like payments or tenders annually the commencement of operations for drilling may be further deferred
for successive periods of twelve (12) months each during the primary term. The payment or tender of rental herein referred to may be made in currency
draft or check al the option of the Lessee; and the depositing of such currency,draft or check in any post office,properly addressed to the Lessor,or said
bank,on or before the rental paying date, shall be deemed payment as herein provided. If such bank (or any successor bank) should fail, liquidate or be
succeeded by another bank, or for any reason fail or refuse to accept rental, Lessee shall not be held in default for failure to make such payment or tender
of rental until thirty (30) days after Lessor shall deliver to Lessee a proper recordable instrument, naming another bank as agent to receive such pay-
ments or tenders. The down cash payment is consideration for this lease according to its terms and shall not be allocated as mere rental for a period.
Lessee may at any time execute and deliver to Lessor or to the depository above named or place of record a release or releases covering any portion or
portions of the above described premises and thereby surrender this lease as to such portion or portions and be relieved of all obligations as to the
acreage surrendered, and thereafter the rentals payable hereunder shall be reduced in the proportion that the acreage covered hereby is reduced by said
release or.releases. .
If Levee-shill, on or before any rental date, make a bona fide attempt to pay or deposit rental to a Lessor entitled thereto under this lease
according to Lessee'[records or to a Lessor who, prior to such attempted payment or deposit, has given Lessee notice, in accordance with the terms of
this lease hereinafter set forth. of his right to receive rental, and if such payment or deposit shall be erroneous in any regard (whether deposited in the
wrong depositorytpatd to persons other than the parties entitled thereto as shown by Lessee's records, in an incorrect amount, or otherwise). Lessee
shall be unconditionally obligated to pay to such Lessor the rental properly payable for the rental period involved, but this lease shall be maintained in
the same manner as if such erroneous rental payment or deposit had been properly made, provided that the erroneous rental payment or deposit be cor-
rected within 30 days after receipt by Lessee of written notice from such Lessor of such error accompanied by any documents and other evidence neces-
sary to enable Lessee to make proper payment.
5. Should any well drilled on the above described land during the primary term before production is obtained be a dry hole, or should production
be obtained during the primary term and thereafter cease, then and in either event, if operations for drilling an additional well are not commenced or
operations for reworking an old well are not pursued on said land on or before the first rental paying date next succeeding the cessation of production
or drilling or reworking on said well or wells, then this lease shall terminate unless Lessee, on or before said date, shall resume the payment of rentals.
Upon resumption of the payment of rentals. Section 4 governing the payment of rentals, shall continue in force just as though there had been no inter-
ruption in the rental payments. If-during the last year of the primary term and prior to the discovery of oil, gas, or other hydrocarbons on said land
Lessee should drill a dry hole thereon,.or if after discovery, of oil, gas, or other hydrocarbons before or during the last year of the primary term the
Production thereof should cease during the last year of-said term from any cause, no rental payment or operations are necessary in order to keep the
ease in force during the remainder of the primary term. If, at the expiration of the primary term, Lessee Is conducting operations for drilling a new
well or reworking an old well, this lease nevertheless shall continue in force as long as'such drilling or reworking operations continue. or if. after the
expiration of the primary:term, production on this lease shall cease. this lease nevertheless shall continue in force if drilling or reworking operations
are commenced within sixty (60) days after such cessation of production; if production is restored or additional production is discovered as a result of
any such drilling or reworking operations,.conducted without cessation of more than sixty (80) days. this lease shall continue as long thereafter as oil.
gas. other hydrocarbons or other mineral is produced and as long as additional drilling or reworking operations are had without cessation of such drill-
ing or reworking opqeslstions for more than sixty (60) consecutive days.
6. Lsssef,al its option, is hereby given the right and power to pool or combine the land covered by this lease, or any portion thereof, as to oil
and gas,or either of them, with any other land. lease or leases when in Lessee's judgment it is necessary or advisable to do so in order to properly
develop and operate said premises, such pooling to be into a well unit or units not exceeding forty (40) acres. plus an acreage tolerance of ten per cent
110%) of forty (40) acres, for oil, and not exceeding six'hundred and forty (640) acres, plus an acreage tolerance of ten per cent (10%) of six hundred
and forty (640).acres. for gas,•except that larger units may be created to conform to any spacing or well unit pattern that may be prescribed by govern-
mental authorities having jurisdiction.Lessee may pool or combine acreage covered by this lease, or any portion thereof. as above provided.as to oil or gas
in any one or more strata,and units so formed need not conform in size or area with the unit or units into which the lease is pooled or combined as to
any other stratum or strata, and oil units need not conform as to area with gas units. The pooling in one or more instances shall not exhaust the rights
of the Lessee hereunder to pool this lease or portions thereof into other units.Lessee shall execute in writing and place of record an instrument or instru-
ments identifying and describing the pooled acreage. The entire acreage so pooled into a unit shall be treated for all purposes, except the payment of
royalties,as if it were included in this lease. and drilling or reworking operations thereon or production of oil or gas therefrom.or the completion thereon
of a well as a shut-in gas well. shall be considered for all purposes, except the payment of royalties, as if such operations were on or such production
were from or such completion were on the land covered by this lease. whether or not the well or wells be located on the premises covered by this lease.
In lieu of the royalties elsewhere herein specified. Lessor shall receive from a unit so formed. only such portion of the royalty stipulated herein as the
amount of his acreage placed in the unit or his royalty interest therein bears to the total acreage so pooled in the particular unit involved. Should any unit
as originally created hereunder contain less than the maximum number of acres hereinabove specified,then Lessee may at any time thereafter,whether be-
fore or after production is obtained on the unit, enlarge such unit by adding additional acreage thereto. but the enlarged unit shall in no event exceed
the acreage content hereinabove specified. In the event an existing unit is so enlarged. Lessee shall execute and place of record a supplemental declara-
tion of unitization identifying and describing the land added to the existing unit; provided, that if such supplemental declaration of unitization is not
filed until after production is obtained on the unit as originally created, then and in such event the supplemental declaration of unitization shall not
become effective until the first day of the calendar month next following the filing thereof. In the absence of production Lessee may terminate any
unitized area by filing of record notice of termination.
7. Lessee also shall have the right to unitize,pool, or combine all or any part of the above described lands with other lands in the same general
area by entering into a cooperative or unit plan of development or operation approved by any governmental authority and, from time to time. with
like approval. to modify. change or terminate any such plan or agreement and, in such event. the terms. conditions, and provisions of this lease shall be
deemed modified to conform to the terms, conditions, and provisions of such approved cooperative or unit plan of development or operation and, par-
ticularly, all drilling and development requirements of this lease. express or implied. shall be satisfied by compliance with the drilling and development
requirements of such plan or agreement, and this lease shall not terminate or expire during the life of such plan or agreement. In the event that said
above described lands or any part thereof, shall hereafter be operated under any such cooperative or unit plan of development or operation whereby
the production therefrom is allocated to different portions of the land covered by said plan, then the production allocated to any particular tract of land
shall. for the purpose of computing the royalties to be paid hereunder to Lessor, be regarded as having been produced from the particular tract of land
to which it is allocated and not to any other tract of land; and the royalty payments to be made hereunder to Lessor shall be based upon production
only as so allocated. Lessor shall formally express Lessor's consent to any cooperative or unit plan of development or operation adopted by Lessee and
approved by any governmental agency by executing the same upon request of Lessee.
8. Lessee shall have the right at any time without Lessor's consent to surrender all or any portion of the leased premises and be relieved of
all obligation as to the acreage surrendered. Lessee shall have the right at any time during or after the expiration of this tease to remove all property
. and fixtures placed by Lessee on said land. Including the right to draw and remove all casing. When required by Lessor. Lessee will bury all pipe
lnn below ordinary, plow depth, and no well shall be drilled within two hundred 1200) feet of any residence or barn now op said land without
Lessor's consent. The Lessee agrees to promptly pay to the owner thereof any damages to crops, or improvements, caused by or resulting from any
operatives of Lessee.
opera ions of Lessee.
12. Notwithstanding any provision of this lease to the contrary, no operations shall
be conducted on the above described land without the written consent of Lessor.
13. Upon the termination of this lease in whole or in part by election or by failure to
make payments as aforesaid, lessee or his assigns shall within 30 days release by
written instrument the land or portion thereof which said lease terminates, and
said notice shall also be sent to the lessor giving the book and page of said lease.
It is expressly understood that this lease is subject to and controlled by any law
of the State of Colorado now in effect restricting or limiting the powers of Countes
or boards of-County Commissioners and provision herein in conflict therewith shall
be inoperative and void. •
o3s0/
£300 C - - 6 o£6OR≤t& z 9 Z Z O O ILL 2-330
°ooK 659 158O
9. The rignta of either party hereunder may be assigned, in whole or in part, and the provisions hereof shall extend to the heirs. rs and
assigns of the parties hereto, but no change or division In ownership of the land, rentals, or royalties, however accomplished, shall operate to enlarge,the
obligations or diminish the rights of Lessee. No change in the ownership of the land,or any interest therein,shall be binding on Lessee until Lessee shall
be furnished with a certified copy of all recorded instruments, all court proceedings and all other necessary evidence of any transfer, inheritance, or sale
of said rights. In event of the assignment of this lease as to a segregated portion of said land, the rentals payable hereunder shall be apportionable among
the several leasehold owners ratably according to the surface area of each, and default in rental payment by one shall not affect the rights of other lease-
hold owr,ere hereunder. In case Lessee assigns this lease, in whole or in part. Lessee shall be relieved of all obligations with respect to the assigned por-
tion or portions arising subsequent to the date of assignment.
10. All express or implied covenants of this lease shall be subject to all Federal and State Laws, Executive Orders. Rules or Regulations, and this
lease shall not be terminated,in whole or in part, nor Lessee held liable in damages. for failure to comply therewith, If compliance is prevented by, or if
such failure is the result of. any such Law, Order, Rule or Regulation, or if prevented by an act of God, of the public enemy, labor disputes, inability to
obtain material, failure of transportation, or other cause beyond the control of Lessee.
If. during the term of this lease,oil or gas or other hydrocarbons or other mineral is discovered upon the leased p remises,but Lessee is prevented
from producing the same by reason of any of the causes set out in this Section. this lease shall nevertheless be considered producing and shall continue
in full force and effect until Lessee is permitted to produce the oil, gas, other hydrocarbons. or other mineral and as long thereafter as such production
continues in paying quantities or drilling or reworking operations are continued as elsewhere herein provided.
11. Lassos agrees that Lessee at its option may discharge any tax, mortgage or
other lien upon sal ,e even ssee oes so, t shall be subrogated to such lien with the right to enforce same and
apply rentals and royalties accruing hereunder toward satisfying same. Without impairment of Lessee's rights under the warranty in event of failure of
title,it is agreed that if Lessor owns an interest in said land less than the entire fee simple estate, then the royalties and rentals to be paid Lessor shall
be reduced proportionately.
All of the provisions of this lease shall inure to the benefit of and be binding upon the parties hereto, their heirs, administrators, successors and
assigns.
parties.This agreement shall be binding on each of the above named parties who sign the same, regardless of whether it is signed by any of the other
IN WITNESS WHEREEOOF,, this instrument L executed on the date first above written.
Wn�+/�j��►m f tJ ?r1ELD...C.QUNTI...Q.OLQRAD.Q,...A....POLITICAT,,,JBDIPISIQ!
ATTEST.: OF THE . VIM....OF COLQR4DO.,...BI.... -._BOARD OF.
i.y..l j COLT . .. as.
Bea & I. BI:...
9ti'ATE P E�bkliff}' L.u/r Clear BY: - ' i
Coun ty bf WELD
, SS. Colorado Acknowledgment
ledgment
r
M1'.. The foregoing instrument was acknowledged before me this 15th day of
December , A.D., 19 71 �, Marshall H. Anderson, Glenn K. Billings
L.. 1..lignia"y...Ashl ey.,,..Ihe„Bnard..A.E..Conn-ty._Cnmmisalonaxs.a...Weid...CC ll)t.Y-a.,.gnl.R,l d AA
• ittE3r m V ti y official seal:
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ym;tomiasioh expire '/6:1. r L21 s
.-• . ......
Notary Public.
•
STATE OF COLORADO, __
•
Coun of 1 SS. Colorado Acknowledgment
ry
The foregoing instrument was acknowledged before me this day of
A,D., 19 by
Witness my hand and official seal: •
My commission expires
. - Notary Public.
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KERR-MCGEE ROCKY MOUNTAIN CORPORATION
1888 BROADWAY•SURE 3800•DENVER,COLORADO 80202
PHONE.333298-3800
September 16,2003 FM:303/298-3801
Weld County Attorney's Office D Q v
t)
P.O.Box 758 2003Greeley,CO 80632 N 8 2003
Attention: Bruce T.Barker
ATTORNEY'S
SOFFICE
RE: Division Orders for SE/4 Section 6-2N-66W
HSR-Miller Federal 15-6A
Weld County,Colorado
Dear Mr.Barker,
Pursuant to your letter dated August 26, 2003,enclosed is a copy of the lease that corresponds
to the referenced well.
Should you have any questions or need additional information concerning this,feel free to contact
me at 720-264-2822..
Yours truly,
KERR-MCGEE ROCKY
MOUNTAIN CORPORATION
staLtd a
thze
Rebecca A.Bell
Sr.Division Order Analyst
/rab
ends.
I ! I 1 Fl
4$111:;111 -11 WELD COUNTY ATTORNEY'S OFFICE
915 TENTH STREET
P.O. BOX 758
GREELEY, CO 80632
ID WEBSITE: www.co.weld.co.us
C. PHONE: (970) 336-7235
FAX: (970) 352-0242
COLORADO August 26, 2003
Rebecca A. Bell
Kerr-McGee Rocky Mountain Corporation
1999 Broadway, Suite 3600
Denver, CO 80202
RE: Division Order for Weld County, Colorado
Dear Ms. Bell:
The Board of County Commissioners of Weld County, Colorado has received from you a
Division Order for various leased oil and gas interests it has in the South Half of Section 6-2-66
for the HSR-Miller Federal 15-6A well. A copy of the Division Order is enclosed.
We are having trouble finding the lease or other documentation which would correspond to the
well in question. We would appreciate if you could provide any information regarding the well
and the ownership interest Weld County has in the minerals.
Please feel free to call me at(970) 356-4000, extension 4390, if you need any further information
from me or if we may discuss.
Sine y,
ce. . er
Weld County Attorney
Enclosure
pc: Clerk to the Board
F
KERR-MCGEE ROCKY MOUNTAIN CORPORATION
1999 BROADWAY•SUITE 3600•DENVER,COLORADO 80202
PHONE:303/298.3600
August 22, 2003 FM 303/298-3601
RE: HSR-Miller Federal 15-6A
T2N-R66W, Section 6: S'13
Weld County, Colorado
Dear Interest Owner:
In preparation for drilling the subject well, an examination of title to the captioned lands was
conducted. The enclosed Division Order reflects your interest according to the records of Weld
County, Colorado. If you no longer own this interest, please advise.
Please read the following instructions carefully before signing the enclosed division order:
1. Be sure that your interest is correct.
2. Sign your name in the space provided exactly as it is shown BEFORE TWO WITNESSES.
3. Your SOCIAL SECURITY NUMBER or TAX IDENTIFICATION NUMBER must be
shown in the space provided. Failure to provide the number may result in withholding of
your production proceeds, as required by law, and you may also be subject to a penalty
imposed by the Internal Revenue Service.
4. Verify the address to which checks should be mailed.
5. If the interest is owned by a CORPORATION, the division order must be signed by a duly
authorized officer and attested. The corporate seal must be affixed and the title of the
signing officer shown.
6. If the interest is owned by a PARTNERSHIP, the division order must be signed by the
general partner or managing partner and evidence of such authority to sign must be
furnished.
7. If the division order is signed by anyone other than the named owner such as an AGENT,
ATTORNEY-IN-FACT,or GUARDIAN,evidence of authority must be provided.
After you have completed and signed the division order, please return the original to me. The copy
is for your records. Should you have any questions or concerns, feel free to contact me.
Sincerely,
Rebecca A. Bell
Senior Division Order Analyst
enclosures
i 1
COUNTY ATTORNEY STAFF APPROVAL
This is to affirm the attached Division Order and Authorization to
Receive Payment for an Oil and Gas Well has been reviewed by
the County Attorney's staff as to form, legal description, and
percentage o 'es, if applicabl
BY:
Co Attorney
DATE: 1 ) t 15-'v
c F r 1 , -
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