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Home My WebLink About20011994.tiff a FRONTIE- CRUDE OIL DIVISION ORDER TO: Frontier Oil and Refining Company Date: May 24, 2001 5340 S. Quebec, Suite 200N Lease No: CO-1165 Englewood, Colorado 80111-1911 Contract No: 9709-00W Telephone (303) 714-0100 Operator Southwestern Prod. Corp. Fax (303) 714-0163 Prepared By: Shelley Border The undersigned, and each of them, guarantee and warrant that they are the legal owners in the proportions set out below of all the oil, condensate and/or other hydrocarbons produced from the SANDY#1 described as: Township 5 North, Range 65 West. 6th P.M. Section 12: NE/4 SW/4 in WELD County, State of COLORADO, and commencing at 7 a.m. on the FIRST day of APRIL, 2001, and until further written notice either from you or us, you are authorized to receive oil therefrom, giving credit as directed below: OWNER NO. CREDIT TO DIVISION/KIND OF INTEREST FOR DIVISION OF INTEREST SEE EXHIBIT"A" ATTACHED HERETO AND MADE A PART HEREOF THE COVENANTS APPEARING ON THE REVERSE SIDE HEREOF ARE ALSO PART OF THIS DIVISION ORDER AND SHALL BE BINDING ON THE UNDERSIGNED,THEIR SUCCESSORS,LEGAL REPRESENTATIVES,AND ASSIGNS: NOTICE: The U.S.Internal Revenue Service requires that owners furnish their Social Security or Employer Identification Number. Please insert this number in the space below the signature line.Read the terms on the back before signing below.If executing on behalf of a corporation,indicateyouroffiicial capacity,impress the corporate seal,and have your signature attested by the secretary of the corporation. Signature of One Signature of ----red Witness or Attest Owner Following Address (Please Print or Type)La � x VcL� 915 10th Street Clerk to the '.a tv + t By: J.' G(07/1861 ('� tW% aQ Title: Chair (07/11/2001) P.O. Box 758 By: ,a /% „ �,Gj),._) 184-6000-813 Greeley, CO 80632 Deputy Clerk tT,�'1: .. Social Security/Employer ID Number • By: Title: Social S.cunly/Employer ID Number 2001-1994 LL ccci • FIRST: The oil received and purchased hereunder shall become your property as soon as the same is received into your custody or that of any carrier designated by you. SECOND: The oil received and purchased hereunder shall be delivered F.O.B.to any carrier designated by you which gathers and receives said oil, and you agree to pay for such oil to the respective owners according to the division of interest above specified at the price posted for oil of the same grade and gravity in the same producing field on the date said oil is received by you. If the oil should be sold by you to another purchaser accepting delivery thereof at the lease tanks, settlement therefor shall be based upon the price received by you for such oil and upon the volume computation made by such purchaser. THIRD: Quality and quantity shall be determined in accordance with the conditions specified in the price posting. You may refuse to receive any oil not considered merchantable by you. FOURTH: Settlements and payments shall be made monthly for oil received and purchased during the preceding month, by check mailed to the respective parties at the address above given,for the amount of such purchase price due said parties respectively, less any taxes required by law to be deducted and paid by you as purchaser. If at any settlement date the amount payable to any party hereunder shall be less than twenty-five dollars($25.00)per month,settlement may be made annually, without interest. FIFTH: Satisfactory abstracts or other evidence of title will be furnished you at any time on demand. In the event of failure to furnish such evidence of title, or in the event of any dispute or question at any time conceming the title to said land and/or the oil produced therefrom, you are authorized to withhold the proceeds of all oil received and run, without interest,until such dispute,defect or question of title is corrected or removed to your satisfaction,or until indemnity satisfactory to you has been furnished;and in the event any action or suit is filed in any court affecting the title to the land above described or the oil produced therefrom,to which any of the undersigned is a party,written notice of the filing of such suit or action shall be immediately furnished you by the undersigned,stating the court in which the same is filed and the title of such suit or action. You will not be responsible for any change of ownership in the absence of actual notice and satisfactory proof thereof. You are hereby relieved of responsibility for determining if and when any of the interests hereinabove set forth shall revert to or be owned by others as a result of the completion or discharge of any payment or the termination of any estate or disability. SIXTH: This Division Order shall become valid and binding on each and every owner above named as soon as signed by him or her regardless of whether or not any of the other above named owners have so signed; and in consideration of the purchase of oil hereunder, consent is hereby given to you and/or any pipeline company which you may cause to connect with the wells and/or tanks on said land, to disconnect and remove such pipelines, in case of termination by either you or us of purchase under this Division Order. Any change in interest or ownership shall be effective as to Purchaser ' on the first day of a calendar month, following date of receipt. SEVENTH: Working Interest Owners and/or Operators who sign this Division Order,and each of them,guarantee and warrant, for your benefit and that of any pipeline or other carrier designated by you to run or transport said oil, that all oil tendered hereunder has been or will be produced in accordance with applicable laws and official rules and regulations. Royalty Owners who sign this Division Order recognize as valid and subsisting in full force and effect all oil and gas leases of record held by the within named Working Interest Owners, which cover or purport to cover Royalty Owner's interest in the above described lands as well as any unit and the same are hereby ratified, adopted and confirmed. Insofar as necessary to effect the purposes of this provision, this instrument shall be construed as containing words of present grant. • • ff ' a FRONTIER EXHIBIT"A" ATTACHED TO AND MADE PART OF FRONTIER OIL AND REFINING COMPANY CRUDE OIL DIVISION ORDER DATED MAY 24,2001 SANDY#1 • Lease No. CO-1186 Page 1 of 2 OWNER NO. CREDIT TO DIVISION/KIND OF INTEREST 4456 Gerrie Bishop .00556020 RI 103 East Powell Road Cheyenne,Wyoming 82009-1719 4457 Roy C. Bishop .00556020 RI P.O. Box 2552 Cheyenne,Wyoming 82001 2510 Hoshiko Farms, Inc. .00401540 RI 28607 Weld County Road 50 Kersey, Colorado 80644 5930 David W. Law and Sandra K. Law, J/T .00370700 RI 1617 Fairacres Road Greeley,Colorado 80631 4460 Frances A. Loustalet .00988940 RI 313 Salem Court Aurora, Colorado 80011 4461 Francis M. Loustalet .03336570 RI 1618 37th Avenue Place Greeley,Colorado 80634-3442 4462 Gary H. Loustalet .00123250 RI 14201 East Idaho Place Aurora,Colorado 80012-5530 4463 Wade Andre Loustalet .00123250 RI 313 Salem Court Aurora, Colorado 80011 5931 Gerald Leon Marble and Jan Marble, J/T .01235590 RI P.O. Box 294 Canyon, Texas 79015-0294 5932 Marguerite Nelson Neid .03875950 RI 5021 East Edgewood Avenue Mesa,Arizona 85206-2803 5933 Helen Nelson Patton Trust .03875950 RI Wells Fargo Bank West, N.A.,Trustee P.O. Box 5383 Denver, Colorado 80217 4465 Ardith Renee Loustalet Simon .00123250 RI 2942 Skimmerhorn Street Fort Collins, Colorado 80526 5050 SW Production Company .01235590 RI 1675 Larimer Street, Suite 820 Denver, Colorado 80202 2313 Weld County Board of Commissioners .00112800 RI P.O. Box 758 Greeley, Colorado 80632-0758 RI Sub-Total .16915420 (Suspense- Title Requirement) EXHIBIT"A"-Continued • SANDY#1 Lease No.CO.1165 Page 2 of 2 OWNER NO. CREDIT TO DIVISION/KIND OF INTEREST 1814 Ted E. Amsbaugh .00347590 ORI 10781 Lake Loop.Road W Bottineau, North Dakota 58318-8018 1815 Jeanne A.Anderson .00017380 ORI 7490 West Coal Mine Avenue, Unit A Littleton,Colorado 80128 1816 Buddy Baker .00125030 ORI P.O. Box 9190 Denver, Colorado 80209-0190 5934 Andrew C. Boden .00125030 ORI P.O. Box 14 Mussoorie U P 248179 INDIA 1900 Conquest Oil Company .01000000 ORI 1610 29th Avenue Place, Suite 200 Greeley, Colorado 80631-4823 3821 Stephen B. Evans, d/b/a Taku Resources LLC .00347590 ORI P.O. Box 3190 Littleton, Colorado 80161-3190 1600 Francis Energy, Inc. .00500000 ORI P.O. Box 2331 Greeley,Colorado 80632 3615 Ken Kamon .02000000 ORI P.O. Box 10589 Midland,Texas 79702 5935 David Wayne Law and Kimberly Jean Law .00417010 ORI 1617 Fairacres Road Greeley, Colorado 80631 4468 Sandy Law .00417010 ORI 329 Walnut Street Fort Morgan, Colorado 80701 1827 Barry L.Snyder .00347580 ORI 7500 West Mississippi Avenue, Suite B-2 Lakewood, Colorado 80226-4541 1828 Christina L. Snyder .00052140 ORI 5562 South Golf Course Drive Morrison, Colorado 80465-2103 3600 SOCO Wattenberg Corporation .00783940 ORI 1625 Broadway, Suite 2000 Denver, Colorado 80202 1830 Vicki L.Wambolt .00052140 ORI 13722 Douglass Ranch Drive Pine, Colorado 80470-9545 1831 Laurence N.Watts .00052140 ORI P.O. Box 280642 Lakewood, Colorado 80228-0642 ORI Sub-Total .06584580 5050 SW Production Company .76500000 NWI 1675 Larimer Street, Suite 820 Denver, Colorado 80202 TOTAL 1.00000000 RI •Royalty Interest ORI•Overriding Royalty Interest NW-Net Working Interest(Net Revenue Interest) FRONTIER OIL and REFINING COMPANY a Subsidiary of Frontier Refining£t Marketing Inc. FRONTIER 5340 S.QUEBEC STREET.SUITE 200N GREENWOOD VILLAGE.COLORADO 80111-1911 1303)714-0100 May 24, 2001 TO ALL INTEREST OWNERS Re: SANDY #1 Weld County, Colorado Lease No. CO-1165 Ladies and Gentlemen: Effective April 1, 2001, Frontier Oil and Refining Company began purchasing the crude oil production from the above-referenced property and assumed responsibility for disbursing proceeds to all interest owners. Plains Marketing previously purchased the oil from the Sandy #1 and paid revenues to you. Accordingly, enclosed are two copies of our Crude Oil Division Order. Please refer to the attached instruction sheet and execute both copies. You may retain one copy for your records, and please return the other executed copy to my attention at the above address. As soon as we receive your properly executed Division Order, we should be able to place your account in line for payment. Thank you for your cooperation in this matter, and please don't hesitate to contact us should you have any questions. Sincerely, Ott L.( �r „�z Shelley Border Division Order Department enclosures FRONTIER OIL and REFINING COMPANY INSTRUCTIONS TO ALL INTEREST OWNERS Please read carefully before signing the instrument: 1. Your interest as shown on this instrument should not be altered in any way unless accompanied by documentary evidence to support the change. We may reject any orders changed without our approval. 2. Sign your name EXACTLY AS IT APPEARS ON THE INSTRUMENT. Have your signature witnessed by one (1) disinterested party. 3. If signing for a corporation, signature must be attested, corporate seal affixed and title of signatory party shown. 4. If signing for a partnership,all partners must sign,unless signed by an authorized partner and we are famished a certified copy of his/her authority. 5. If the instrument is signed by an agent, attorney-in-fact, guardian, estate representative, trustee or any party other than the named interest owner,we must have evidence of the rights vested in the signatory party. 6. If an interest is shown jointly for more than one person, each party must sign the division order in the manner that his or her name is shown thereon. In the event one party has been designated agent for the joint interest shown or he/she has been granted a power of attorney for the other party (ies), we must have evidence to this effect. 7. Insert your Tax Identification Number or Social Security Number,whichever is applicable, in the space provided. We may withhold partial payment until such number is received. 8. Insert the address to which checks are to be mailed in the space provided. 9. You should notify us promptly, in writing,of any changes in your mailing address. Always include your owner number which appears on your check and your old address, and then state your new address. 10. Return the executed instrument without delay to the address below. KEEP ONE COPY FOR YOUR RECORDS. FRONTIER OIL AND REFINING COMPANY 5340 S. QUEBEC STREET, SUITE 200N ENGLEWOOD, COLORADO 80111-1911 ATTENTION: DIVISION ORDER DEPARTMENT 106 FRONTIER OILFr and REFINING COMPANY a Subsidiary of Frontier Refining£r Marketing Inc. L FRONTIER 5340 S.QUEBEC STREET,SUITE 200N GREENWOOD VILLAGE.COLORADAD11 (303)714-0100 O 1 May 24, 2001 Weld County Board of Commissioners P.O. Box 758 Greeley, Colorado 80632-0758 Re: Sandy #1 Weld County, Colorado Lease No. CO-1165 Gentlemen: Enclosed is your Crude Oil Division Order package regarding the above-referenced well. As is noted on Exhibit "A" to the Division Order, the Weld County royalty interest is being held in suspense pending resolution of an outstanding title issue. We are uncertain as to whether or not the title requirement was ever cured. We suspect not because Plains Marketing, the previous crude oil purchaser, also suspended the Weld County royalty interest. Enclosed are the relevant pages from a 1988 Division Order Title Opinion discussing the matter. We would appreciate your reviewing the opinion and your records and advising us as to whether the title issue was settled. Your cooperation and assistance are appreciated. Sincerely, Ol e Shelley Border Division Order Department enclosures LOHF, SHAIMAN & ROSS A PROFESSIONAL CORPORATION ATTORNEYS AT LAW 900 CHERRY TOWER 950 SOUTH CHERRY OENVER,COLORADO 80222 303 753-9000 TELECOPIER 303 753-999> Revised September 21, 1988 MAILING ADORES$: P, 0 00X 24158 DENVER.COLORA00 8O224 DAVID G. EBNER Francis Energy, Inc. 1988 #1 Joint Venture P.O. Box 2331 Greeley, Colorado 80632 - ( O t Silverado Ltd. #1-88 3400 West 16th Street, Suite 1DD Greeley, Colorado 80631 The Permian Corporation P.O. Box 1183 Houston, Texas 77251 DIVISION ORDER TITLE CPINICN Subject Well: Sandy #1 Pooled Producing Unit: Township 5 North, Range 65 West, 6th P.M. Section 12: E/2 SW/4 Weld County, Colorado Permian Lease No. : 042493 I. MATERIALS EXAMINED 1. Drilling Title Opinion prepared by the law firm of Corporon, Keene & Hoehn, Denver, Colorado, dated December 9, 1985 and covering the SE/4 and E/2 SW/4 of Section 12 from inception to 7:45 a.m. on October 30, 1985. 2. Abstract of Title No. 152,989 covering the captioned lands, consist— ing of 187 numbered pages and certified from October 5, 1985 to 7:45 a.m. on January 18, 1988, by Transamerica Title Insurance Company. 3. Copies of all documents recorded in the real property records of Weld County between January 18, 1988 and 7:45 a.m. on August 25, 1988, which Ms. Cynthia A. E. Zeren, an independent landman in Greeley, Colorado, believed mate- rial in determining title to the captioned lands, as reflected in the tract indices maintained by Transamerica Title Insurance Company, Greeley, Colorado. 2—Silverado Ltd. #1-88 September 21, 1988 II. TITLE Specific legal descriptions for the road parcel and the four tracts described by letter designations appear in Appendix 1. Based upon our examin— ation of the materials described in Section I, and subject to the matters set forth herein, we find title to the captioned lands vested as of 7:45 a.m. on August 25, 1988, as follows: Surface Ownership Tract A, as described in Appendix 1 to this opinion William F. Wickersham and Toni M. Wickersham, joint tenants 100% Tract B, as described in Appendix 1 to this opinion David W. Law and Sandra K. Law, joint tenants 100% Road Parcel, as described in Appendix 1 to this opinion Weld County, Colorado 100% Mineral Ownership Tract C, as described in Appendix 1 to this opinion Gerrie Bishop 6.25000% (Lease 1) Roy C. Bishop 6.25000% (Lease 2) Marlyn James Johnson and Christine Johnson, joint tenants 12.50000% (Lease 3) Francis M. Loustalet 35.53125% (Lease 5) Gary H. Loustalet 1.31250% (Leases 5-6) Wade Andre Loustalet 1.31250% (Leases 5-6) Warren H. Loustalet 10.53125% (Lease 6) Gerald Leon Marble and Jan Marble, joint tenants 12.50000% (Lease 3) Ardith Renee Loustalet Simons 1.31250% (Leases 5-6) William F. Wickersham and Toni M. Wickersham, 12.50000% (Lease 4) joint tenants Tract D, as described in Appendix 1 to this opinion Gerrie Bishop 6.25000% (Lease 1) Roy C. Bishop 6.25000% (Lease 2) Marlyn James Johnson and Christine Johnson, joint tenants 12.50000% (Lease 3) David W. Law and Sandra K. Law, joint tenants 12.50000% (Lease 4) Francis M. Loustalet 35.53125% (Lease 5) Gary H. Loustalet 1.31250% (Leases 5-6) Wade Andre Loustalet 1.31250% (Leases 5-6) Warren H. Loustalet 10.53125% (Lease 6) Gerald Leon Marble and Jan Marble, joint tenants 12.50000% (Lease 3) Ardith Renee Loustalet Simons 1.31250% (Leases 5-6) 3—Silverado Ltd. #1-88 September 21, 1988 Mineral Ownership - Continued NE/4 SW/4 Marguerite Nelson Neid 50% (Lease 7) United Bank of Greeley, National Association, 50% (Lease 8) as Trustee of the Helen Nelson Patton Trust Road Parcel, as described in Appendix 1 to this opinion Weld County, Colorado* 100% (Lease 9) * Mineral ownership in the Road Parcel is a matter of dispute between Weld County, Colorado and the record mineral owners of Tract C. See Require- ment No. 1, below. Oil and Gas Leasehold Estate: As to the NE/4 SW/4 from the surface of the earth to the tine of the rrria11 formation only* Francis Energy, Inc. 1988 #1 Joint Venture 50% (Leases 7-8) Silverado Ltd. #1-88 50% (Leases 7-8) Royalties, Production Payments and Other Burdens: As to production obtained from the Ccdell and Niobrara formations in the NE/4 SW/4 oily* Tract C Gerrie Bishop 1.12500% landowner royalty interest (Lease 1) Roy C. Bishop 1.12500% landowner royalty interest (Lease 2) Marlyn James Johnson and 2.50000% landowner royalty interest Christine Johnson, joint tenants (Lease 3) Francis M. Loustalet 6.75094% landowner royalty interest (Lease 5) Gary H. Loustalet .24937% landowner royalty interest (Leases 5-6) Wade Andre Loustalet .24937% landowner royalty interest (Leases 5-6) Warren H. Loustalet 2.00094% landowner royalty interest (Lease 6) 4—Silverado Ltd. #1-88 September 21, 1988 Royalties, Production Payments and Other Burdens - Continued Tract C - Continued Gerald Leon Marble and 2.50000% landowner royalty interest Jan Marble, joint tenants (Lease 3) Ardith Renee Loustalet Simons .24938% landowner royalty interest (Leases 5-6) William F. Wickersham and Toni M. 1.56250% landowner royalty interest Wickersham, joint tenants (Lease 4) Conquest Oil Company 1.00000% overriding royalty interest (Leases 1-6) Francis Energy, Inc.** .50000% overriding royalty interest (Leases 7-8) David W. Law .84375% overriding royalty interest (Leases 1, 2, 4, 5, 6) Sandy Law .84375% overriding royalty interest (Leases 1, 2, 4, 5, 6) Silverado Oil, Inc.** 2.00000% overriding royalty interest (Leases 7-8) 23.50000% total royalty burdens Tract D, as described in Appendix 1 to this opinion Gerrie Bishop 1.12500% landowner royalty interest (Lease 1) Roy C. Bishop 1.12500% landowner royalty interest (Lease 2) Marlyn James Johnson and 2.50000% landowner royalty interest Christine Johnson, joint tenants (Lease 3) David W. Law and Sandra K. Law, 1.56250% landowner royalty interest joint tenants (Lease 4) Francis M. Loustalet 6.75094% landowner royalty interest (Lease 5) Gary H. Loustalet .24937% landowner royalty interest (Leases 5-6) Wade Andre Loustalet .24937% landowner royalty interest (Leases 5-6) Warren H. Loustalet 2.00094% landowner royalty interest (Lease 6) Gerald Leon Marble and Jan Marble, 2.50000% landowner royalty interest joint tenants (Lease 3) Ardith Renee Loustalet Simons .24938% landowner royalty interest (Leases 5-6) Conquest Oil Company 1.00000% overriding royalty interest (Leases 1-6) 5—Silverado Ltd. #1-88 September 21, 1988 Royalties, Production Payments and Other Burdens - Continued Tract D - Continued Francis Energy, Inc.** .50000% overriding royalty interest (Leases 7-8) David W. Law .84375% overriding royalty interest (Leases 1, 2, 4, 5, 6) Sandy Law .84375% overriding royalty interest (Leases 1, 2, 4, 5, 6) Silverado Oil, Inc.** 2.00000% overriding royalty interest (Leases 7-8) 23.50000% total royalty burdens NE/4 SW/4 Marguerite Nelson Neid 7.75000% landowner royalty interest (Lease 7) United Bank of Greeley, National 7.75000% landowner royalty interest Association, as Trustee of the (Lease 8) Helen Nelson Patton Trust Ted E. Amsbaugh .69500% overriding royalty interest (Leases 7-8) Jeanne A. Anderson .03475% overriding royalty interest (Leases 7-8) Buddy Baker .25000% overriding royalty interest (Leases 7-8) Barrett Energy Company 1.22000% overriding royalty interest (Leases 7-8) Andrew C. Baden .25000% overriding royalty interest (Leases 7-8) Conquest Oil Company 1.00000% overriding royalty interest (Leases 7-8) Stephen B. Evans .69500% overriding royalty interest (Leases 7-8) Francis Energy, Inc.** .50000% overriding royalty interest (Leases 1-8) Silverado Oil, Inc.** 2.00000% overriding royalty interest (Leases 1-8) Barry L. Snyder .69500% overriding royalty interest (Leases 7-8) Christinia L. Snyder .10425% overriding royalty interest (Leases 7-8) Vicki L. Wambolt .10425% overriding royalty interest (Leases 7-8) 6—Silverado Ltd. #1-88 September 21, 1988 Royalties, Production Payments and Other Burdens - Continued NE/4 SW/4 - Continued Laurence N. Watts .10425% overriding royalty interest (Leases 7-8) Zenith Drilling Corporation .34750% overriding royalty interest (Leases 7-8) 23.50000% total royalty burdens Road Parcel, as described in Appendix 1 to this opinion Weld County, Colorado*** 21.00000% landowner royalty interest (Lease 9) Conquest Oil Company 1.00000% overriding royalty interest (Lease 9) Francis Energy, Inc.** .50000% overriding royalty interest (Leases 7-8) Silverado Oil, Inc.** 2.00000% overriding royalty interest (Leases 7-8) 24.50000% total royalty burdens * By Correction Assignment, dated December 17, 1987 and recorded in Book 1182 under Reception No. 2127102, all working interest owners in the leases (insofar as the leases cover the E/2 SW/4 fran the surface of the earth to the base of the Codell formation) agreed that the owners of the leases insofar as the leases cover the NE/4 SW/4 would be the sole owners of Codell/Niobrara production fran wells located on such lands NE/4 SW/4 and that the owners of the leases insofar as they cover the SE/4 SW/4 would be the sole owners of Codell/Niobrara production from wells located on such lands. ** The .5% Francis Energy overriding royalty interest is borne by Francis Energy, Inc. 1988 #1 Joint Venture; the 2% Silverado overriding royalty interest is borne by Silverado Ltd #1-1988. *** Mineral ownership in the Road Parcel is a matter of dispute between Weld County, Colorado and the record mineral owners of Tract C. See Require- ment No. 1, below. 7—Silverado Ltd. #1-88 September 21, 1988 III. DIVISICN OF PRODUCTION Subject to the matters set forth herein, we believe production proceeds attributable to the Sandy #1 well in the NE/4 SW/4 of Section 12 should be divided and paid as follows: Gerrie Bishop* (.01125 LEI x .4942374 .0055602 103 East Powell Road acreage factor) Cheyenne, Wyoming 82001 Roy C. Bishop* (.01125 LRI x .4942374 .0055602 P. 0. Box 2552 acreage factor) Cheyenne, Wyoming Marlyn James Johnson and (.025 LEI x .4942374 .0123559 Christine Johnson, acreage factor) joint tenants* 16015 Weld County Road 49 LaSalle, Colorado 80645 David W. Law and Sandra K. (.015625 LRI x .2372486 .0037070 Law, joint tenants acreage factor) 25122 Moimtair Lane Greeley, Colorado 80631 Francis M. Loustalet* (.0675094 LRI x .4942374 .0333657 2015 Buena Vista Drive acreage factor) Greeley, Colorado 80631 Gary H. Loustalet* (.0024937 LRI x .4942374 .0012325 14408 East Arkansas Drive acreage factor) Aurora, Colorado 80011 Wade Andre Loustalet* (.0024937 LRI x .4942374 .0012325 2502 South Rifle Street acreage factor) Aurora, Colorado 80013 Warren H. Loustalet* (.0200094 LRI x .4942374 .0098894 313 Salem Court acreage factor) Aurora, Colorado 80011 Gerald Leon Marble and Jan (.025 LRI x .4942374 .0123559 Marble, joint tenants* acreage factor) Route 3, Box 502 Canyon, Texas 79015 8—Silverado Ltd. #1-88 September 21, 1988 Marguerite Nelson Neid (.0775 LRI x .5001226 .0387595 2152 East Farmdale Avenue acreage factor) Mesa, Arizona 85204 9 United Bank of Greeley, (.0775 LRI x .5001226 .0387595 ov' clCIPO National Association, acreage factor) as Trustee of the Helen Nelson Patton Trust 1025 Ninth Avenue Greeley, Colorado 80631 Ardith Renee Loustalet Simons* (.0024938 LEI x .4942374 .0012325 1906 D Ross Court acreage factor) Fort Collins, Colorado 80526 Weld County, Colorado* (.21 LRI x .00564 acreage .0011844 Weld County Centennial Center factor) 915 Tenth Street Greeley, Colorado 80631 William F. Wickersham and (.015625 LRI x .2569887 .0040154 Toni M. Wickersham, acreage factor) joint tenants* P.O. Box 238 Kersey, Colorado 80644 Ted E. Amsbaugh (.00695 0RR x .5001226 .0034759 P.O. Box 1415 acreage factor) Brownfield, Colorado 80020 Jeanne A. Anderson (.0003475 ORR x .5001226 .0001738 405 Urban Street, Suite 302 acreage factor) Lakewood, Colorado 80228 Buddy Baker (.0025 0RR x .5001226 .0012503 25 Sherman Street acreage factor) Denver, Colorado 80203 Barrett Energy Company (.0122 0RR x .5001226 .0061015 1125 Seventeenth Street, #2109 acreage factor) Denver, Colorado 80202 Andrew C. Boden (.0025 0RR x .5001226 .0012503 Suite M-76 acreage factor) 1616 Seventeenth Street Denver, Colorado 80202 9—Silverado Ltd. #1-88 September 21, 1988 Conquest Oil Company (.01 ORR x 1.0 acreage factor) .0100000 Suite 6L 3400 West Sixteenth Street Greeley, Colorado 80631 Steven B. Evans (.00695 ORR x .5001226 .0034759 405 Urban Street, Suite 302 acreage factor) Lakewood, Colorado 80228 Francis Energy, Inc. (.005 ORR x 1.0 acreage .0050000 P.O. Box 2331 factor) Greeley, Colorado 80632 David W. Law* (.0084375 ORR x .4942374 .0041701 2512 Mountair Lane acreage factor) Greeley, Colorado 80631 Sandy Law (.0084375 x .4942374 .0041701 1621 Elder Avenue acreage factor) Greeley, Colorado 80631 Silverado Oil, Inc. (.02 ORR x 1.0 acreage .0200000 3400 West Sixteenth Street factor) Suite 1DD Greeley, Colorado 80631 Barry L. Snyder (.00695 ORR x .5001226 .0034758 405 Urban Street, Suite 302 acreage factor) Lakewood, Colorado 80228 Christina L. Snyder (.0010425 ORR x .5001226 .0005214 405 Urban Street, Suite 302 acreage factor) Lakewood, Colorado 80229 Vicki L. Wambolt (.0010425 ORR x .5001226 .0005214 405 Urban Street, Suite 302 acreage factor) Lakewood, Colorado 80229 Lawrence N. Watts (.0010425 ORR x .5001226 .0005214 405 Urban Street, Suite 302 acreage factor) Lakewood, Colorado 80228 Zenith Drilling Corporation (.003475 ORR x .5001226 .0017379 505 Fourth Financial Center acreage factor) Wichita, Kansas 67202 10—Silverado Ltd. #1-88 September 21, 1988 Francis Energy, Inc. 1988 #1 (.5 WI x .79 NRI x .99436 .3899718 Joint Venture acreage factor + .5 WI x P.O. Box 2331 .78 NRI x .00564 acreage Greeley, Colorado 80632 factor - .005 ORR x 1.0 acreage factor) Silverado Ltd. #1-88 (.5 WI x .79 NRI x .99436 .3749718 3400 West Sixteenth Street acreage factor + .5 WI x Suite 1DD .78 NRI x .00564 acreage Greeley, Colorado 80631 factor — .02 ORR x 1.0 acreage factor) 1.0000000 * This division of production is tabulated as if Weld County owned the minerals in the Road Parcel, a matter as to which we can provide no assur— ance. See Requirement No. 1 and Appendix 3, below. IV. THE LEASES A summary tabulation of the concerned leases appears in Appendix 2 to this opinion. V. LEASE HISTORY Leases 1-6 1. The Leases. Leases 1-6 were jointly obtained by Cache Exploration, Inc. and Conquest Oil Company at various times in 1984 and 1985. By Affidavit of Extension of Oil and Gas Leases, dated March 4, 1986 and recorded in Book 1106 under Reception No. 2046316, representatives of Conquest and Cache provided notice of the extension of Leases 1-6 beyond their primary terms as a result of production fran the Conquest Law #1 well in the NE/4 SE/4 of Sec- tion 12 and the Cache CEI Law #1 well in the NW/4 SE/4 of Section 12. 2. David Law and Sandy Law Overriding Royalties. By Assignment of Overriding Royalty Interest, dated October 2, 1985 and recorded in Book 1094 under Reception No. 2035119, Cache Exploration, Inc. and Conquest Oil conveyed to each of David W. Law and Sandy Law a 0.125% overriding royalty interest (before proportionate reduction) on all production from the SE/4 SW/4 of Section 12, noting that the "assignment is the difference between the 18% 21--Silverado Ltd. 41-88 September 21, 1988 VIII. REQUIP isMENTS 1. Disputed County Road Mineral Ownership. By Quit Claim Deed, dated April 10, 1936 and recorded in Book 976 at page 291, Frank Loustalet, George H. Loustalet, Walter B. Loustalet, Grace L. Hunter, Winifred H. Klett, Anna Green Beardsley and Loustalet Green conveyed to Weld County their entire interest "in and to that irregular roadway as now laid out and used being and lying in the" SE/4 SW/4 of Section 12, extending in a northerly direction from the county road and Hyde bridge to the north boundary line of the SE/4 SW/4. While we believe that this instrument conveyed only a right of way (not a fee interest) to Weld County, we can provide no assurance that a court would reach the same result if presented with the question; indeed, we understand that Lee D. Morrison, the assistant county attorney for Weld County, has reculuuended that the County not disclaim any mineral interest it might have beneath the roadway. We accordingly have tabulated the mineral interest in this roadway as though it were owned by Weld County. Cache Exploration, Inc. and Conquest Oil Canpany obtained a protection lease, dated December 19, 1985 and recorded in Book 1099 under Reception No. 2039432, fran Weld County. This lease, insofar as it covers the concerned road way, is now owned by Conquest Oil, Inc., but was impliedly assigned to Silverado for purposes of the Sandy #1 well, subject to a landowner royalty of 21% and a 1% Conquest overriding royalty. Since it is not certain whether the minerals contained in the Road Parcel are owned by the County or by the Tract C mineral owners, payment of production proceeds attributable to the Road Parcel should be suspended until resolution of this dispute. REQUIREMENT: Suspend payment of the production proceeds attributable to the Road Parcel (other than in respect to the working interest and Conquest Oil, Francis Energy and Silverado Oil overriding royalties, which will be unchanged in either event) until an agreement of the parties cr a final judgment fran a court of competent jurisdiction is obtained. Appendix 3 summarizes the division of production if Weld County owns the minerals in the Road Parcel (Case 1) and if the Tract C mineral owners own the Road Parcel minerals (Case 2) . 2. Delinquent Taxes: Tracts B and D. A Certificate of Taxes Due, dated September 9, 1988 and issued by the Weld County Treasurer, indicates that 1987 taxes on the interest of David W. Law and Sandra Law in Tracts B and D are delinquent in the amount of $1,488.52. If this delinquency is not satisfied before such interests are sold by the Weld County Treasurer for payment of the 1987 taxes, and if the interests are not redeemed fran such sale within the time provided by law, the tax sale purchaser will acquire such interests free and clear of Lease 4 herein. 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 = egal description, and percentage of r 'es, if a.. scab BY: Coun orney DATE: 1 1r-1 / f A (-4 t1c)tv-- 4- r v c- fice- .--/ 'S-(7 _ 'IN % I Hello