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HomeMy WebLinkAbout20001252.tiff • • gate• Fit C 4 . 11sti �ls May 1 , 2000 ' Pe , .ft lit MAY 0 2 200O � I isq WELD CCU uNrif • - Mr. Bruce T . Barker f: 711ORN E•s on--0)(4.-at Weld County Attorney' s Office 915 Tenth Street P . O . Box 1948 Greeley, Colorado 80632 RE : Division Order for the Dacono 1 , 2 , and 3 Wells Dear Mr. Barker: Pursuant to your letter dated April 21 , 2000, enclosed please find a copy of an Oil , Gas and Mineral Lease covering your interest. The Dacono wells are directional wells that have the wellhead in Section 1 of T1N-R68W but the bottom hole, or where the minerals are being drained from, are in Section 6 of T 1 N-R67W. It appears that the original acreage on the lease was later determined to be incorrect. The lease has the acreage as 25 . 13 acres, and it was later determined to be 15 . 28926 acres . The royalty interest is calculated using the following formula: acres owned / acres in the unit x royalty from lease = royalty interest in well 15 .28926 ac / 151 . 17 ac x 12 . 5 % = 0 . 01264250 RI If you have any questions or need additional information, please do not hesitate to give us a call . Very Truly Yours, 60-tyzit Carrie Eggleston Division Order Analyst Enclosure cc : file 4,eAdo, eDtIt . � - _ - - 1. 10104 -- 5801 WEST 11TH STREET, SUITE 300 • GREELEY, COLORADO 80634 • PHONE (970) 336-1000 • FAX (970) 346-3777 ErCEnicir joco /n� COUNTY ATTORNEY STAFF APPROVAL This is to affirm the attached Division Order or 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 of royalties, if applicable. BY: — Co my Attorney DATE: OIL AND GAS DIVISION ORDER TO: Bataa Oil,Inc. 5801 West 110 Street,Suite 300 Greeley,Colorado 80634 Date: April 11,2000 Well: Dacono 1,2,and 3 The undersigned,and each of us,certify and guarantee that we are the legal owners of,or are entitled to dispose of and received payment for all oil,natural gas,condensate and/or all other gaseous or liquid hydrocarbons produced(hereinafter referred to as"production")from the Dacono 1 2 and 3 wells, located in Weld Cot Colorado more particularly described as follows: Townshi 1 North Ran e 68 West 6th P.M. Section l:NE/4 effective 7:00 a.m.from the date of February 1,2000,and until further written notice you are authorized and directed,subject to the provisions hereof,to sell the production and give credit for the proceeds received from such sale of production,as follows: CREDIT TO ADDRESS DIVISION OF INTEREST Board of County Commissioners 915-10th Street Weld County,Colorado Greeley,CO 80632 0.01264250 RI The following covenants and agreements are a part of this division order,and shall be binding upon the undersigned,their successors,legal representatives,heirs and assigns: FIRST:The price to be paid for production attributable,to the interest of each of the undersigned shall be the price being received by you at the wellhead for such production;provided that if such production is sold or delivered at some point other than at the wellhead where produced,then the price to be paid for such production attributable to the interest of each of the undersigned shall be the amount received by you at such actual delivery point less an amount to be retained by the undersigned's pro rata part of all reasonable costs incurred by you in tra sportingrcmpress ng,t for dehydrating or otherwise causing such production to be acceptable to the purchaser thereof at the point of such delivery. SECOND:The production sold hereunder shall become the property of the purchaser and the undersigned agree to look solely to Bataa Oil,Inc.for payment of production sold hereunder and shall have no claim or recourse against any purchaser of said oil,natural gas,condensate and/or other hydrocarbons. THIRD:Payments may be made monthly by your checks delivered or mailed to the undersigned thereto entitled at the addresses given above;however,if the amount payable to any party hereunder shall be less that One Hundred Dollars($100.00),you may defer payment without interest until the next regular settlement date when amount payable to such party equals or exceeds such sum.You hereby are authorized to withhold from the payments hereunder the amount of any tax placed by any governmental authority on the production referred to herein,paid by you the purchaser. FOURTH:In the case of any adverse claim of title or in case title shall not be satisfactory to you at any time during the term of this Division Order,each of the undersigned agrees to furnish evidence of title satisfactory to you and authorize you to withhold pay ut liability nd without bliation to pay interest on the amount so withheld,until satisfactory in ent ldemnity th shall be furnished to you against such adverse claims or any defects in title,or until title shall be made satisfactory to you. FIFTH:The undersigned severally agree to notify you in writing of any change of ownership and no transfer or an interest of any nature or change in the right to receive payments,however accomplished, shall be effective as to you until 7:00 a.m.on the first day of the calendar month next ensuing in which you are given actual written notice and are furnished proper Division or Transfer Orders and proof satisfactory to you of such transfer or change.You are hereby relieved of any responsibility for determining if and when any of the interests hereinabove set forth shall or should revert to or be owned by other parties and if any limited,reversionary or sliding scale interest is owned or retained by any party to this Division Order,such party hereby relieves you of any obligation to determine if and when payment for such interest shall commence,change or cease and to hold you harmless for any erroneous payment made prior to receipt of said written notice. t.1.O k6 -1 2000-1252 SIXTH: You may assign this Division Order without notice to the undersigned and any assignee hereof shall succeed to all rights hereunder. WITNESSES: OWNERS: i Clerk to the Board/4 0 R Board of County Conm issioners Le Weld C�unty, Colorado p tcct By:,* [{ l '-1ci /1; Gib .Y�� C_'_ arbara J. Kirktneyer \ � Tn Chair (05/08/2000) �J Title Zdies ,2_ '✓e _ Tax 113# 84-6000-813 Deputy Clerk to the Board ------ 0 67 • J-,---f as/5`7 �l(:,�l r Record '_V` __o'clock 7) DEC G7 �.^,75 MI M.- (1a 0 0 0580313 Produces 88 (272}s.ea.--Cotorndo � Roc No. OIL, GAS AND MINERAL LEASE '' -' '-'---`---.-.Ann sooner, Incordw THIS AGREEMENT made this 28th day of October _Weld .County,...a...noliti.cal....subdivision._of the....S.tate Of....Colox to, by the...Board...of County between Comnisni.ones.,,..for..its_respectivc.interest `� .c/o Board of County Comnissioners,._We.1d...CountY Court ?sous , 0reeler, Colorado Lessor (whether one or more), and.,MI0 • CO .Q..ductJ..Qn Qornp.an:r, Security 1,i e _ •.., \ /Lessee, WITNESSETH: d� .DenVBX'., Coloradox 1. Lessor in consideration of Ten and More - - - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ —dl ($3.0.00_.. t More ) in hand paid. of the royalties herein provided, and of the agreement of Lessee herein contained, hereb Dollars exclusively unto Lessee for the purpose of Investyalting, exploring, prospecting, drilling and mining for and costa q yt grantraids, leases and lets \ without restriction to such enumerated minerals, all other minerals whether similar or dissimilar to those particularly specified herein. Ing Ipe lines. building tanks. p producing oil, as. other hrocarrbone and. power stations, telephone lines and other;structures thereon to produce, save, take care of. treat, transport and own sal Droduct., and housing its employees, the following described land in Weld County. Colorado, to-wit: (See attached description rider) • • That portion of the Town of Dacono, Colorado situated in the i'T'1/4 Section 6, Township 1 North, Range 67 West of the 6th PM described as follows: Block 1: Lots 4 and 5 Block 2: Lots 1 thru 8 Block 3: Lots 6 thru 8 Block 8: Lots 6 and 8 Block 9: Lots 1 thru 8; 10 thru 12 Block 16: Lots 1 thru 3; 5 thru 8; 10 thru 12 Block 17: Lots 5 thru 8; 10 Block 19 : Lots 15 thru 18 • Block 20: Lots 5 thru 15 Block 28: Lots 1 thru 3; 7 then 18 Block 29: Lots 2, 3, 5, 6; 9 thru is. Block 30 : Lots 1 thru 4; 10 thru 14 Block 31: Lots 1 thru 12 Block 32: Lots 1, 4; 5 thru 8; 10 Block33: Lots 1 thru 3; 6; 10 thru. 12 ments Identifying and describing the pooled acreage. The entire acreage so pones into a unit blictil VC LI Cate.. WI Ai. pu,pvao. CL ',el.,„. ,.., ......- ". 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 zs r shut.-i n gas wet:. shall be considered for ail 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. t 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 lime 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 1 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, front 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 he deemed modified to conform to the terms, conditions, and provisions of such approved cooperative or unit plan of development or operation and. par- t 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 i all obligation as to the acreage surrendered. Lessee shall have the right at any time during or after the expiration of this lease to remove all property and fixtures placed by Lessee nn said land. Including the right to draw and remove all casing. When required by Lessor, Lessee will bury all pipe lines below ordinary plow depth. and no well shall be drilled within'two hundred 12001 feet of any residence or barn now on 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 operations of Lessee. 2. 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. le Upon the termination of this lease in whole or in part by election or by failure to make payments as aforesaid, lessee or his within assigns shall 930 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 Coun`Les or boards of-County Commissioners and provision herein in conflict therewith shall be inoperative, and void. GC.}S ,� )yh -- - a £T&09“6ez bozeo TL;LZ-330 _ / • 4 . . BC°K 65, 1580913 rubott addition to the land above described, Lessor hereby In grants, leases and lets exclusively unto Lessee tohe 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 rightfsrof-way which traverse or adjoin any of said lands. For rental payment purposes, the land included within this lease shall be deemed to contain ZZ 113 whether it actually comprises more or less. 7. -- acres, 2. ect to tne her visions ein s lease thereafter asuoil, gas, other t hydrocarbons, or r other mineral is!produced from said for a term of ID land hereunder. or s om drillings or e reworking led operationsope ations ar and as e 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 possession, paying the market price therefor prevailing for the field where produced on the date of purchase; (b) on gas, including casinghead gas or other hydrocarbon substance, produced from said land and sold or used off the 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; (c) 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 (50O 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. If 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 $100.00 per well, and. if such payment or tender is made, this lease shall continue in effect for a further period of one year. In like manner and upon like payments or tenders annually, made on or before each anniversary of the shut-in date of such well, this lease shall continue in effect for successive periods of twelve (12) months each. 4. If operations for drilling are not commenced on said land as hereinafter provided. on or before one year from this date, the lease ell then terminate as to bgth parties, unless on or before such anniversary date Lessee shall pay or tender to Lessor or to the credit of Lessor gt t shall of �ms/a 9?tr� l.lntV Colmthe depository o l�moals .a hereunder-regardless (which cress it are onv agent and shall continue as the depository for all rentals payable hereund r'rregartllesa of changes in ownership of sal lend or the rentals either by conveyance or by three death or incapacity of Lessor) the sum of TWenty...Five_..and...13/100 — — — — — — — — — -- ----- — — Dollars ($ 25.1.3 ), (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 at 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 fall 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 Lessee shall, 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's 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 depository paid 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 terns 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 lroduction 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 (60) 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 operations for more than sixty (60) consecutive days. 6. Lessee, at 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 (90) acres, plus an acreage tolerance of ten per cent 110',61 of forty (40) acres. for oil. and not exceeding six hundred and forty (640) acres, plus an acreage tolerance of ten per cent 1 l0'4..i of six hundred and forty 164111 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 .is 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 iintru- 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 (Isis lease. whether or not the well or wells be located on the premises covered by this lease. 1 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 royally 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 tine 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 unitir rtion 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 nett following the filing thereof. In the absence of production Lessee may ;ei mina r any 1 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 lc Ise 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- t titularly. 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 ,roduction 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 remises 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 lease 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 a.) pipe lines below ordinary plow depth. and no well shall be drilled within- two hundred 12001 feet of any residence or barn now on 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 operations of Lessee. 2. Notwithstanding any provision of this. lease to the contrary, no operations •sha11 be conducted on the above described land without the written consent of lessor. • 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 Counties or boards of,.County Commissioners and provision herein in conflict therewith shall be inoperative, and void. _ iyh -- - a C16085Io9z 60200 TL;L2-030 • . 3-3 9 The rights of either party hereunder may be assigned, in whole or in cart. and the provisions hereof shall extend to the heirs. successors and s.igns of the parties hereto. but no change or division in ownership of the land. ,entals, or royalties, however accomplished, shall operate to enlarge the litigations or diminish the shills of Lessee. No change in the ownership of th, hind.or any Interest therein, shall be binding on Lessee until Lessee shall e furnished with a certified copy of all recorded Instruments. all court proceed' '' and all other necessary evidence of any transfer. Inheritance. or sale f said rights. In event of the assignment of this lease as to a segregated portion , i said land, the rentals payable hereunder shall be apportionable among se several leasehold owners ratably according to the surface area of each, anti i. Cult In rental payment by one shall not affect the rights of other lease- old owners hereunder. In case Lessee assigns this lease. In whole or In part. I ' 'se shall be relieved of all obligations with respect to the assigned por- tal or portions arising subsequent to the date of assignment. 10. All express or implied covenants of this lease shall be subject to all ''feral and State Laws. Executive Orders, Rules or Regulations. and this ,ase shall not be terminated, in whole or in part, nor Lessee held liable in dmr'' for failure to comply therewith. if compliance Is prevented by, or If soh failure is the result of, any such Law, Order, Rule or Regulation. or if pr. d by an act of God, of the public enemy. labor disputes. inability to btain material, failure of transportation, or other cause beyond the control of '�' cie. If. during the term of this lease, oil or gas or other hydrocarbons or othc, ' 'neral Is discovered upon the leased premises. but Lessee is prevented rom producing the some by reason of any of the causes set out in this Section, this 1•-':e shall nevertheless be considered as producing and shall continue t full force and effect until Lessee is•permitted to produce the oil, gas, other hydro,-^Ions. or other mineral rind as long thereafter as such production nntinues in paying quantities or drilling or reworking opendions are continued as elsewhere herein provided. II. Lessor ',grel's that Lessee at Its option may discharge any tax, mortgage or then lien upon sal an . e er n w o e or pa • an n even esse oes so, t shall be subrogated to such lien with the right to enforce same and pply rentals and royalties accruing hereunder toward satisfying same, Without Impairment of Lessee's rights under the warranty in event of failure of i tie, 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 ,e 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 ssigns. 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 ,arties. IN WITNESS WHEREOF, this instrument Is executed on the date first above written. VIVI@4E3s WELD...COUNTY ..A....POL POLITICAL SUBDIVISION •--•ATTFST: Cf" 4y OF TH-1 STATE,' COLORADO BY T3Y TH.E...BC,AIzD OF . • QQVIr „X r j�/ t�r• !'SUN Px Cl„L' iCa".t n • B'i: /�t„r,!,Gs.!r- /Y...:�l /mil y�K ILND S�Q'tIl t BY; ' )-J(ii f C( &L<v _ STATt}O }Cl7LORAD9i 0 * } SS. Colorado Acknowledgment County of; ' 1 el 111 .- 7 The foregoing instrument was acknowledged before me this 15th day of ]December A.D. 19 71 by , Marshall H. Anderson, • S 'Glenn K. BillinDs, Harry S. Ashley, The Board of County Commissioners, • ., Weld cQupty,....CQ.iA.Fa.da . • 1 '+, �rr . . k."7 VWttldss mvharyl an (facial seal: • Mythoilt• aisNgti expir ..,. Notary Public. STATE OF COLORADO, 1 F SS. Colorado Acknowledgment County of 111 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. _ o -o v . s. 5 , oF. 0 G c al • . . ti r: A. • Vd V P Q .6 .0 `o • W m2 c o J c 0 ��^ c0 v J a TO 4 z n C) W C) C W Z O 9 v 4. a 4' • 0. �� L/ .) to Ci F s ' ' C V ei Z °n is, c 0 eL td t I-24 Cr.nn t N Oa o E O U/ b n V Z o ri Q ° 5 ? 6\ _9Lsi O c6 0 �.r /� E 6 O `o `€1 ° 777 a a W O V 'O O O F" �' o L0.' O v < 5Ba f l a WELD COUNTY ATTORNEY'S OFFICE (Ito ti %1)s\ PHONE: (970) 356-4000, EXT. 4391 PHONE (970) 336-7235 FAX: (970) 352-0242 915 TENTH STREET ' P.O. BOX 1948 C. GREELEY, COLORADO 8063'. COLORADO April 21, 2000 Ms. Carrie Eggleston Division Order Analyst Bataa Oil, Inc. 5801 West 11th Street, Suite 300 Greeley, CO 80634 Re: Division Order for Dacono 1, 2, and 3 Wells Dear Ms. Eggleston: Enclosed is a copy of an Oil and Gas Division Order recently received by the Board of County Commissioners of Weld County and concerning the Dacono 1, 2, and 3 wells. We are uncertain how Bataa Oil calculated the royalty interest. We are also wondering to which lease this division order pertains. I therefore respectfully request that you provide me with this information. I may be reached by mail at the above address or by telephone at(970) 356-4000, ext. 4390. Sincerely, Bruce T. Barker i Weld County Attorney Encl. pc: Clerk to the Board 6a,taactS . March 27, 2000 Dear Interest Owner(s): Effective February 1, 2000 Bataa Oil, Inc. Bataa' will assume the responsibility of distiibu`-ng the oil revenues for all Bataa operated wells that have been paid by TEPPCO Crude Oil, LLC"TEPPCO". There will be an initial delay of approximately twenty (20) days from the date that you would normally receive your check from TEPPCO. This delay allows for the transition and for our accounting department to set up and process the revenues. Therefore, your March check should be received by Apri115th and then around the 15th for each month thereafter. We apologize for any inconvenience that this may cause you. Enclosed please find two (2) copies of an Oil Division Order. Please execute both copies. Return one copy to Bataa in the enclosed sell-addressed envelope and keep one copy for your records. Additional instructions are enclosed for your reference. After Bataa has received a properly executed Oil Division Order we will place your interest in line for payment. There will be a grace period until May 1, 2000,where we will not place any interest in suspense to allow for the transition and the vii Division Orders to be returned. After May 1,2000, any interest owner(s) that have not executed and returned a Oil Division Order will be placed in suspense until we receive an executed copy. If you have any questions concerning this change, please feel free to give us a call at 970-336-1000. Very truly yours, Carrie Eggleston Division Order Analyst 5801 WEST 11TH STREET, SUITE 300 • GREELEY, COLORADO 80634 • PHONE (970) 336-1000 • FAX (9701 346-3777 Hello