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Home My WebLink About910482.tiff AR2253023 RESOLUTION RE: APPROVE DIVISION ORDER WITH PERMIAN OPERATING LIMITED PARTNERSHIP AND AUTHORIZE CHAIRMAN TO SIGN WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested o with the authority of administering the affairs of Weld County, Colorado, and � r rs w wo r WHEREAS, Weld County, Colorado, has received a Division Order with Permian N Operating Limited Partnership, P.O. Box 1183, Houston, Texas 77251-1183, and E C] K 0 WHEREAS, said Division Order covers land more particularly described as 2 N follows: 2 to w 'Vo Township 5 North, Range 66 West, 6th P.M. tv C H Section 33: NE; SW,' Weld County, Colorado ti) • 0 Limited to production obtained from the py --- surface of the earth to the top of the N r Niobrara Formation. r• � WHEREAS, Weld County is entitled to a one-eighth royalty interest on tzi production, and 7e c Q ., N WHEREAS, in order to receive said royalty interest, Weld County must execute said Division Order, a copy of which is attached hereto and incorporated p herein by reference, and O Pi if xo WHEREAS, said Division Order has been reviewed by a member of the Weld M o County Attorney's staff and found to be in order, and rO n O �- WHEREAS, the Board deems it advisable to approve said Division Order on the parcel of land described herein. n o O a NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Division Order with Permian Operating Limited Partnership, P.O. Box 1183, Houston, Texas 77251-1183, on the hereinabove described parcel of land be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chairman be, and hereby is, authorized to sign said Division Order. 910482 'Fm y-1 r, Page 2 RE: DIVISION ORDER - PERMIAN OPERATING LIMITED PARTNERSHIP The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 5th day of June, A.D. , 1991. .,spy � r ATTEST: Wa4eBOARD OF COUNTY COMMISSIONERS m o l WELD COUNT C COMMISSIONERS w Weld County Clerk to the Board n Gordo c , rman K By: N Cx' w e' l�o' the Board Geo ge K nedy, Pro-Tem 2 .nk,ice ��•..� o y.APPROVED AS , A b � ., • onstance L. Harbert � ��// [9 County Attorney C. W. Kirby 2 nv W. H. Webster 0 N 2 w tt A O [a v 2 o E o [i o r b A ON O O 1a 910482 DIVISION ORDER Lease No. 040139 March 27, 1991 T0: PERMIAN OPERATING LIMITED PARTNERSHIP dba PERMIAN P.O. Box 1183, Houston, Texas 77251-1183 The undersigned, and each of us, certify and guarantee that we are the legal owners of and hereby warrant the title to our respective interests as set out below in all oil produced from all wells on the w r f+ FRANCIS ENERGY. INC. RORER #1w o farm or lease, located in Weld County, State of Colorado, more particularly described as follows: 0 bN "L N zu w h1 0 C+7 N q � ti] CO NE/4 SW/4`, Section 33, Township 5 North, Range 66 West, 6th P.M. , Weld County, I-3 rn Colorado. Limited to production obtained from the surface of the earth down to H the top of the Niobrara Formation, Z (J �o ✓ � t� z x � 0 N W m and commencing at 7 A.M. , first runs and until further written notice either from you or us o you are authorized to receive oil therefrom, purchase it and pay for it as follows: o DIVISION OF z o CREDIT TO INTEREST MAILING ADDRESS E o m o ROYALTY INTEREST e A Louis E. Spomer 9.36405% x .1875 0 ca) (.0175576) o o � Weld County, Colorado 90.63595% x .125 P.O. BOX 758 (. 1132949) GREELEY, CO 80632 OVERRIDING ROYALTY INTEREST Steven W. Shefte ( .0100000) Harry A. Ells, Jr. 9.36405% x .0125 (.0011705) Energy Minerals Corporation 90.63595% x .06 (.0543816) WORKING INTEREST Francis Energy, Inc. 9.36405% x .79 plus 90.63595% x .805 (.8035954) 910482 MAKE SURE YOUR CORRECT MAILING ADDRESS IS SHOWN ABOVE PC 259 (8-90) _\ The following covenants are also parts of this division order and shall be binding on the undersigned, their heirs, devisees, successors, legal representatives and assigns. FIRST: The oil received and purchased hereunder shall become your property as soon as the same is received into your a custody, or that of any pipe line company or carrier designated by you, and the undersigned agree to look solely to you for \-� payment of oil purchased hereunder and shall have no claim or recourse against any subsequent purchaser of said oil. SECOND: The oil received and purchased hereunder shall be delivered F. O. B. to any pipeline or carrier designated ,1 by you which gathers and receives said oil, and you shall pay for such oil to the respective owners according to the division of mterest above set forth at the same price per barrel received by the operator of the lease covered by this division order. _ The word "oil" used herein shall mean crude oil and condensate (or distillate) delivered hereunder. THIRD: Quality and quantity shall be determined in accordance with the conditions specified in the purchase agree- ment with lease operator. The oil shall be steamed when necessary to make merchantable and you may refuse to receive any oil not considered merchantable by you. `,'.�? FOURTH: Settlements and payments shall be made monthly by check mailed from your office to the respective parties at the addressee above given, for the amount of such purchase price due said parties, respectively, less any taxes required by the law to be deducted and paid by you as purchaser. FIFTH: Abstracts and other evidence of title satisfactory to you will be furnished to you at any time on demand. In the event of failure to so furnish such evidence of title, or in the event of any dispute or question at any time concerning title to the above lands, or the oil produced therefrom, you may hold the proceeds of all oil received and run, without interest, until indemnity satisfactory to you has been furnished or until such dispute or question of title is corrected or removed to your satisfaction. And in the event any action or suit is filed in any Court affecting title either to the real property above described or to the oil produced therefrom in which any of the undersigned are parties, written notice of films of such action shall immediately be_ furnished you by the undersigned, stating the Court in which the same is filed and the title of such action or suit, and you or any carrier transporting oil for your account shall be held harmless from any judgment rendered in such suit and all reasonable costa and expenses incurred in defending against said claim, whether in your defense or in the defense of the carrier transporting oil for your account, and the undersigned shall pay said judg- ment and said costs and expenses. SIXTH: The undersigned severally shall notify you of any change of ownership, and no transfer of interest shall be .(1..1.; w binding upon you until a transfer order and the recorded instrument evidencing such transfer, or a certified copy thereof, O shall be furnished to you. Transfers of interest shall be made effective not earlier than the first day of the calendar month in to F, which notice is received by you. You are relieved hereby of any responsibility for determining if and when any of the in- terests hereinabove set forth shall or should revert to or be owned by other parties as a result of the completion or discharge gg xl of money or other payments from said interest and the signers hereof whose interests are affected by such money or other T+ to payments, if any, assume said responsibility and shall give you notice in writing by registered letter addressed to you at ''AA A the above address, when any such money or other payments have been completed or discharged or when any other division l< of interest than that set forth above shall, for any reason, become effective and to furnish transfer orders accordingly, and 0 that in the event such notice shall not be received, you shall be held harmless in the event of, and are hereby released from LT: any and all damage or lose which might arise out of any overpayment. ca SEVENTH: This division order shall become valid and binding on each and every owner above named as soon as signed by et bbyy him or her regardless of whether any of the other above named owners have so signed; and in consideration of the pur- pi to c[iaee of oil hereunder, consent is given hereby to you and any pipe line company which you may cause to connect with the C iJ wells or tanks on said land, to disconnect and remove such pipe lmes. in case of termination by either you or us of purchases CU under this division order. m o EIGHTH: Working interest owners and operators who sign this division order, and each of them, guarantee and warrant 0-3 \ for your benefit and that of any pipe line or other carrier designated by you to run or transport said oil, that all oil tend- ered hereunder has been and will be produced and handled in compliance with the Fair Labor Standards Act of 1938, and H any amendments thereto, and all other federal, state and municipal laws, rules and regulations. Ni CI • I-. IN ACCORDANCE WITH FEDERAL LAW, PLEASE INDICATE YOUR SOCIAL SECURITY te N• r 84-6000813 0 OR IDENTIFICATION NUMBER: t+ " N M co Pi TNES tOF IGN TURES =WNERS SIGN BELOW 0 O ATTEST' { `�"^.'ro / / / tr1'v BOARD GORt . L r IRMAN 6/3/91 M O (-.fIR Y,w'i �' " WELD COUNTY BOA OF COMMISSIONERS E c i ;� rp.;f .� / _ d BY: DE'U C TO THE BOARD p a . 0 O 0 Oa BE SURE YOUR SIGNATURE IS WITNESSED AND YOUR CORRECT'ADDRESS I3 SHOWN C 91-0lif_4Z l\c‘ v s • [�'- F The Permian Corporation �l c ,��. ?V ! i� '' - P.O.Box 1183 \11 i MAY 2 B 1991 lit Houston,Texas 77251-1183 U, /j FAX 713/787-2503 MOM WELD COUNTY 713/787-2500 ATTORNEY'S OFFICE May 22, 1991 Re: Lease No. 040139 - Francis Energy, Inc. - Spomer #1 Weld County, Colorado Attn: Bruce T. Barker Assistant County Attorney P.O. Box 1948 Greeley CO 80632 Dear Mr. Barker: We have received your letter dated April 8, 1991, attaching copy of division order reflecting the Weld County, Colorado royalty interest. These division orders were based upon title opinions furnished this office by the operator, Francis Energy, Inc. We therefore suggest you contact the operator regarding the opinions. The address for Francis Energy, Inc. is 1220 - 11th Ave. , Ste. 203, Greeley, Co 80632. If we may be of other service, please contact us. Yours very truly, PERMIAN Margie Thornton rmc 91.43487, WILLIAM M. FOSTER ATTORNEY AT LAW 6093 SOUTH QUEBEC SUITE 202 ENGLEWOOD. COLORADO 80111-4544 (303)721-0495 March 11, 1991 Permian Operating Limited Partnership P.O. Box 1183 Houston, TX 77251-1183 Francis Energy, Inc. 1220 Eleventh Avenue, Suite 203 Greeley, CO 80631 Attn: Mr. Nicholas D. Francis Re: Spomer No. 1 Well Spomer No. 33-14-1 Well Permian Lease No. 040139 Weld County, Colorado DIVISION ORDER TITLE OPINION Gentlemen: At your request I have examined the data described below. My Division Order Title Opinion as to the land described below follows: LAND DESCRIPTION Township 5 North, Range 66 West, 6th P.M. Section 33: NE;SW$, S4SW1 9104801 Permian Operating L.P./Francis Energy, Inc. Spomer Nos. 1 and 33-14-1 Wells - DOTO Permian Lease No. 040139 - March 11, 1991 - Page 2 DATA EXAMINED 1. Drilling and Division Order Title Opinion dated August 2, 1989, covering the subject lands, prepared by Pendleton & Sabian, Attorneys at Law, Denver, Colorado, based upon prior title opinions and an examination of the records of the Clerk and Recorder of Weld County, Colorado, and other material for the period from inception of title to May 2, 1989, at 7:45 a.m. 2. Drilling Title Opinion dated October 25, 1990, covering the subject lands, prepared by the undersigned and based upon copies of all recorded instruments affecting title to the subject lands from the records of the Clerk and Recorder of Weld County, Colorado, for the period from May 2, 1989, at 7:45 a.m. , to October 8, 1990, at 7:45 a.m. , furnished by Gerrity Oil & Gas Corporation. 3. Copies of all recorded instruments affecting title to the subject lands from the records of the Clerk and Recorder of Weld County, Colorado, for the period from October 8, 1990, at 7:45 a.m. , to February 15, 1991, at 7:45 a.m. , furnished by Colorado Land Services. 4. Copy of a Survey Plat covering the subject lands dated February 1, 1991, prepared by Billy G. Holloway, Registered Land Surveyor. 5. Copy of a Declaration of Pooling dated March 5, 1991, effective January 2, 1991, and recorded in Book 1292 under Reception No. 2243096 of the records of Weld County, Colorado, executed by Francis Energy, Inc. 6. Copy of a Declaration of Pooling dated March 5, 1991, effective January 2, 1991, and recorded in Book 1292 under Reception No. 2243097 of the records of Weld County, Colorado, executed by Francis Energy, Inc. FEE TITLE OWNERSHIP Tract 1 Township 5 North. Range 66 West. 6th P.M. Section 33: A 150-foot strip of land in the NEkSW'i, being 100 feet on the North side and 50 feet on the South side of the centerline of the Denver, Laramie, and Northwestern Railway. Surface and Minerals: Louis E. Spomer All Oil and Gas Leasehold Estate: As to all formations from the surface to the top of the Niobrara formation: Francis Energy, Inc. All 910f^7 Permian Operating L.P./Francis Energy, Inc. Spomer Nos. 1 and 33-14-1 Wells - DOTO Permian Lease No. 040139 - March 11, 1991 - Page 3 Overriding Royalty: Steven W. Shefte 1% Harry A. Ells, Jr. 1 .25% Oil and Gas Leasehold Estate: As to all formations between the top of the Niobrara formation and 100 feet below the base of the Codell formation: George Soros 90.000000% Michael Steinberg 1 .283450% Joan Steinberg .150007% Justin Steinberg .116605% Gavin Steinberg . 116605% The Robert Gerrity Company 4.000000% Gerrity Oil & Gas Corporation 4.333333% Overriding Royalty: Steven W. Shefte .04% Harry A. Ells, Jr. 1 .25% Tract 2 Township 5 North. Range 66 West. 6th P.M. Section 33: A 150-foot strip of land in the SEkSW1, being 100 feet on the North side and 50 feet on the South side of the centerline of the Denver, Laramie, and Northwestern Railway. Surface and Minerals: Louis E. Spomer All Oil and Gas Leasehold Estate: As to all formations from the surface to the top of the Niobrara formation: Francis Energy, Inc. All Overriding Royalty: Steven W. Shefte 1% Oil and Gas Leasehold Estate: As to all formations between the top of the Niobrara formation and 100 feet below the base of the Codell formation: George Soros 90.000000% Michael Steinberg 1 .283450% Joan Steinberg . 150007% Justin Steinberg . 116605% 910482 Permian Operating L.P./Francis Energy, Inc. Spomer Nos. 1 and 33-14-1 Wells - DOTO Permian Lease No. 040139 - March 11, 1991 - Page 4 Gavin Steinberg . 116605% The Robert Gerrity Company 4.000000% Gerrity Oil & Gas Corporation 4.333333% Overriding Royalty: Steven W. Shefte .04% Tract 3 Township 5 North, Range 66 West. 6th P.M. Section 33: EkSWk, less Tracts 1 and 2 above. Surface: Louis E. Spomer 1/2 Elizabeth Louise Spomer 1/4 Eric Louis Spomer 1/4 Minerals: Weld County, Colcrado All Oil and Gas Leasehold Estate: As to all formations from the surface to the top of the Niobrara formation: Francis Energy, Inc. All Overriding Royalty: Steven W. Shefte 1% Energy Minerals Corporation 6% Oil and Gas Leasehold Estate: As to all formations between the top of the Niobrara formation and 100 feet below the base of the Codell formation: George Soros 90.000000% Michael Steinberg 1.283450% Joan Steinberg . 150007% Justin Steinberg . 116605% Gavin Steinberg .116605% The Robert Gerrity Company 4.000000% Gerrity Oil & Gas Corporation 4.333333% Overriding Royalty: Steven W. Shefte .04% Energy Minerals Corporation 6% 91.048? Permian Operating L.P./Francis Energy, Inc. Spomer Nos. 1 and 33-14-1 Wells - DOTO Permian Lease No. 040139 - March 11, 1991 - Page 5 Tract 4 Townshio 5 North. Range 66 West. 6th P.M. Section 33: A 150-foot strip of land in the SW$5Wk, being 100 feet on the North side and 50 feet on the South side of the centerline of the Denver, Laramie, and Northwestern Railway. Surface and Minerals: Louis E. Spomer All Oil and Gas Leasehold Estate: As to all formations from the surface to the top of the Niobrara formation: The Robert Gerrity Company All Overriding Royalty: Steven W. Shefte 1% Oil and Gas Leasehold Estate: As to all formations between the top of the Niobrara formation and 100 feet below the base of the Codell formation: George Soros 90.000000% Michael Steinberg 1.283450% Joan Steinberg .150007% Justin Steinberg .116605% Gavin Steinberg .116605% The Robert Gerrity Company 4.000000% Gerrity Oil & Gas Corporation 4.333333% Overriding Royalty: Steven W. Shefte .04% Tract 5 Township 5 North. Range 66 West, 6th P.M. Section 33: SWkSWk, less Tract 4 above. Surface: Louis E. Spomer 1/2 Elizabeth Louise Spomer 1/4 Eric Louis Spomer 1/4 Minerals: Weld County, Colorado All 91C482^y Permian Operating L.P./Francis Energy, Inc. Spomer Nos. 1 and 33-14-1 Wells - DOTO Permian Lease No. 040139 - March 11, 1991 - Page 6 Oil and Gas Leasehold Estate: As to all formations from the surface to the top of the Niobrara formation: The Robert Gerrity Company All Overriding Royalty: Steven W. Shefte 1% Energy Minerals Corporation 6% Oil and Gas Leasehold Estate: As to all formations between the top of the Niobrara formation and 100 feet below the base of the Codell formation: George Soros 90.000000% Michael Steinberg 1.283450% Joan Steinberg .150007% Justin Steinberg . 116605% Gavin Steinberg . 116605% The Robert Gerrity Company 4.000000% Gerrity Oil & Gas Corporation 4.333333% Overriding Royalty: Steven W. Shefte .04% Energy Minerals Corporation 6% Note: The above-mentioned Drilling and Division Order Title Opinion dated August 2, 1989, is limited to all formations from the surface to 100 feet below the base of the Codell formation in the subject lands. Consequently, this Division Order Title Opinion is necessarily limited to the same formations. TAXES The material submitted for examination indicates that the taxes assessed against the subject lands are paid for 1989 and all prior years. ENCUMBRANCES None. 91,C 48x2 Permian Operating L.P./Francis Energy, Inc. Spomer Nos. 1 and 33-14-1 Wells - DOTO Permian Lease No. 040139 - March 11, 1991 - Page 7 EASEMENTS AND RIGHTS-OF-WAY . The above-mentioned Drilling and Division Order Title Opinion dated August 2, 1989, mentioned that several rights-of-way were listed in prior title opinions, and refers you thereto for further details, and lists two additional pipeline easements conveyed by Louis E. Spomer to Natural Gas Associates and Associated Natural Gas, Inc. , across the subject lands. OIL AND GAS LEASES Lease A Date: December 10, 1982 Form: Producers 88 FMcB (Gross Rental ) Rev. 1981 Lessors: Louis E. Spomer and Janet M. Spomer, husband and wife Lessee: Harry A. Ells, Jr. Land Description: Tract 1 described above and other lands Containing 206.05 acres, more or less Term: Three years and as long thereafter as oil or gas is produced Royalty: 3/16 for oil and gas Shut-In Gas Well Royalty: An amount equal to the delay rental , payable annually • Delay Rental : $206.05 per year Depository: The Central Bank of Denver Denver, Colorado Lesser Interest Clause: Yes Pooling Clause: Yes, but not to exceed units of 80 acres in size unless authorized by a valid spacing order. Entireties Clause: No 911592 Permian Operating L.P./Francis Energy, Inc. Spomer Nos. 1 and 33-14-1 Wells - DOTO Permian Lease No. 040139 - March 11, 1991 - Page 8 Special Provisions: The lease contains an attached Exhibit "B" with special provisions for surface operations and surface damages, and a provision that a producing well will extend the primary term of the lease only as to the lands within a spacing unit established by the Oil & Gas Conservation Commission or only as to an 80-acre tract or lands pooled with other lands to form an 80-acre drillsite. The lease was amended to delete certain provisions from Exhibit "B" by an amendment to oil and gas lease dated July 14, 1989, and recorded in Book 1239 under Reception No. 2187219 of the records of Weld County, Colorado. Recorded: December 27, 1982, in Book 985 under Reception No. 1912292 of the records of Weld County, Colorado Note: Lease A originally covered Tracts 2 and 4 in addition to Tract 1 . However, Lease A expired as to Tracts 2 and 4 because of the above-mentioned limitation in the pooling clause, and Tracts 2 and 4 are now covered by Lease B. Lease B Date: March 8, 1989 Form: Producers 88 FMcB (Paid-Up) Rev. 1985 Lessors: Louis E. Spomer and Janet M. Spomer, husband and wife Lessee: The Robert Gerrity Company Land Description: Tracts 2 and 4 described above Containing 7.263 acres, more or less Term: Two years and as long thereafter as oil or gas is produced Royalty: 3/16 for oil and gas Shut-In Gas Well Royalty: $1 .00 per acre per year Delay Rental : None; this is paid-up lease Depository: None 91.048`; Permian Operating L.P./Francis Energy, Inc. Spomer Nos. 1 and 33-14-1 Wells - DOTO Permian Lease No. 040139 - March 11, 1991 - Page 9 Lesser Interest Clause: Yes Pooling Clause: Yes, but not to exceed units of 80 acres in size unless authorized by a valid spacing order. Entireties Clause: No Special Provisions: The lease contains an attached Exhibit "A" with special provisions for surface operations and surface damages, and a provision that a producing well will extend the primary term of the lease only as to the lands within a spacing unit established by the Oil & Gas Conservation Commission or only as to an 80-acre tract or lands pooled with other lands to form an 80-acre drillsite. Recorded: August 3, 1989, in Book 1239 under Reception No. 2187209 of the records of Weld County, Colorado Lease C Date: January 6, 1982 Form: The lease is a printed form prepared especially for Weld County Lessor: Weld County, Colorado, acting by and through the Board of County Commissioners Lessee: Energy Minerals Corporation Land Description: Township 5 North. Range 66 West. 6th P.M. Section 33: SW$ Containing 160 acres, more or less Term: Three years and as long thereafter as oil or gas is produced in paying quantities Royalty: 1/8 for oil and gas Shut-In Gas Well Royalty: $100.00 per well per year Delay Rental : $1 .00 per net mineral acre per year 91..C;. Permian Operating L.P./Francis Energy, Inc. Spomer Nos. 1 and 33-14-1 Wells - DOTO Permian Lease No. 040139 - March 11, 1991 - Page 10 Depository: Board of County Commissioners Weld County Centennial Center 915 Tenth Street Greeley, Colorado 80631 Lesser Interest Clause: Yes Pooling Clause: Yes Entireties Clause: No Special Provisions: The lease contains several special provisions not ordinarily found in commercial lease forms, and you are referred thereto for further details. Recorded: January 12, 1982, in Book 958 under Reception No. 1879730 of the records of Weld County, Colorado ASSIGNMENTS The above-mentioned Drilling and Division Order Title Opinion dated August 2, 1989, does not list the assignments of the subject oil and gas leases and assignments of overriding royalty recorded prior to May 2, 1989, at 7:45 a.m. The assignments recorded subsequent to May 2, 1989, at 7:45 a.m. , are listed below: 1. The Robert Gerrity Company assigned an undivided 90% interest in Lease A as to all formations between the top of the Niobrara formation and 100 feet below the base of the Codell formation in the NEkSWk of Section 33, Township 5 North, Range 66 West, 6th P.M. , and an undivided 90% interest in Lease C as to all formations between the top of the Niobrara formation and 100 feet below the base of the Codell formation in the NEkSW} and SWkSWk of Section 33, Township 5 North, Range 66 West, 6th P.M. , to George Soros by an assignment dated May 26, 1989, and recorded May 26, 1989, in Book 1233 under Reception No. 2180839 of the records of Weld County, Colorado. 2. The Robert Gerrity Company assigned an undivided 90% interest in Leases A and C as to all formations between the top of the Niobrara formation and 100 feet below the base of the Codell formation in the SE;SWk of Section 33, Township 5 North, Range 66 West, 6th P.M. , to George Soros by an assignment dated July 20, 1989, and recorded August 3, 1989, in Book 1239 under Reception No. 2187205 of the records of Weld County, Colorado. Permian Operating L.P./Francis Energy, Inc. Spomer Nos. 1 and 33-14-1 Wells - DOTO Permian Lease No. 040139 - March 11, 1991 - Page 11 3. The Robert Gerrity Company assigned an undivided 90% interest in Lease B as to all formations between the top of the Niobrara formation and 100 feet below the base of the Codell formation in Tracts 2 and 4 to George Soros by an assignment dated August 17, 1989, and recorded August 23, 1989, in Book 1241 under Reception No. 2189470 of the records of Weld County, Colorado. 4. The Robert Gerrity Company assigned an undivided 1/6 of its interest in the subject oil and gas leases as to all formations from the surface to 100 feet below the base of the Codell formation in the subject lands to the assignees shown below in the proportions set forth below by an assignment dated March 12, 1990, and recorded April 6, 1990, in Book 1260 under Reception No. 2210138 of the records of Weld County, Colorado: Michael Steinberg 77.0070% Joan Steinberg 9.0004% Justin Steinberg 6.9963% Gavin Steinberg 6.9963% 5. The Robert Gerrity Company assigned an undivided 2/5 of its interest in the subject oil and gas leases as to all formations from the surface to 100 feet below the base of the Codell formation in the subject lands to William Forster by an assignment dated March 12, 1990, and recorded April 6, 1990, in Book 1260 under Reception No. 2210139 of the records of Weld County, Colorado. 6. The Robert Gerrity Company assigned all of its remaining interest in the subject oil and gas leases as to all formations between the top of the Niobrara formation and 100 feet below the base of the Codell formation in the subject lands to Gerrity Oil & Gas Corporation by an assignment dated August 22, 1990, and recorded August 22, 1990, in Book 1273 under Reception No. 2224423 of the records of Weld County, Colorado. 7. Michael Steinberg, Joan Steinberg, Justin Steinberg, and Gavin Steinberg assigned all of their right, title, and interest in the subject oil and gas leases as to all formations from the surface to the top of the Niobrara formation in the subject lands to The Robert Gerrity Company by an assignment dated October 24, 1990, and recorded November 7, 1990, in Book 1281 under Reception No. 2232395 of the records of Weld County, Colorado. 8. William Forster assigned all of his right, title, and interest in the subject oil and gas leases as to the subject lands to The Robert Gerrity Company by an assignment dated December 17, 1990, and recorded January 3, 1991, in Book 1286 under Reception No. 2237565 of the records of Weld County, Colorado. 9. The Robert Gerrity Company assigned a 1% overriding royalty interest in the subject oil and gas leases as to the subject lands, subject to proportionate reduction, to Steven W. Shefte by an assignment of overriding royalty dated January 1, 1991, and recorded January 22, 1991, in Book 1288 under Reception No. 2239079 of the records of Weld County, Colorado. 910482 Permian Operating L.P./Francis Energy, Inc. Spomer Nos. 1 and 33-14-1 Wells - DOTO Permian Lease No. 040139 - March 11, 1991 - Page 12 10. The Robert Gerrity Company assigned all of its right, title, and interest in the subject oil and gas leases as to all formations from the surface to the top of the Niobrara formation in the EkSW$ of Section 33, Township 5 North, Range 66 West, 6th P.M. to Francis Energy, Inc. , by an .assignment dated January 2, 1991, and recorded, January 22, 1991, in Book 1288 under Reception No. 2239080 of the records of Weld County, Colorado. POOLING 1. The Robert Gerrity Company and George Soros executed a Declaration of Pooling dated September 22, 1989, and recorded in Book 1246 under Reception No. 2194469 of the records of Weld County, Colorado, which pools all rights under Leases B and C as to the oil and gas produced from the Codell and Niobrara formations in the SkSW$ of Section 33, Township 5 North, Range 66 West, 6th P.M. 2. Francis Energy, Inc. , executed a Declaration of Pooling dated March 5, 1991, effective January 2, 1991, and recorded in Book 1292 under Reception No. 2243096 of the records of Weld County, Colorado, which pools all rights under Leases A and C as to the oil and gas produced from all formations between the surface and the top of the Niobrara formation in the NEkSWk of Section 33, Township 5 North, Range 66 West, 6th P.M. Under the terms of the pooling clauses in Leases A and C, the production of oil and gas from all formations between the surface and the top of the Niobrara formation in the NEkSWk of Section 33 is allocated as follows (that part of Tract 3 within the NEkSWk of Section 33 is designated Tract 3A) : Tract 1 3.74 acres 9.36405% of production Tract 3A 36.20 acres 90.63595% of production 3. Francis Energy, Inc. , executed a Declaration of Pooling dated March 5, 1991, effective January 2, 1991, and recorded in Book 1292 under Reception No. 2243097 of the records of Weld County, Colorado, which pools all rights under Lease B and C as to the oil and gas produced from all formations between the surface and the top of the Niobrara formation in the SEkSWk of Section 33, Township 5 North, Range 66 West, 6th P.M. Under the terms of the pooling clauses in Leases B and C, the production of oil and gas from all formations between the surface and the top of the Niobrara formation in the SEkSWk of Section 33 is allocated as follows (that part of Tract 3 within the SEkSWk of Section 33 is designated Tract 36) : Tract 2 1.04 acres 2.61767% of production Tract 3B 38.69 acres 97.38233% of production 91145? Permian Operating L.P./Francis Energy, Inc. Spomer Nos. 1 and 33-14-1 Wells - DOTO Permian Lease No. 040139 - March 11, 1991 - Page 13 DIVISION OF INTEREST - SPOMER NO. 1 WELL • Based upon the material examined and subject to the Title Comments and Requirements below, it is my opinion that the division of production of oil and gas from all formations between the surface and the top of the Niobrara formation in the Spomer No. 1 Well in the NE$5W} of Section 33, Township 5 North, Range 66 West, 6th P.M. , is as follows: Owners Net Revenue Interests Francis Energy, Inc. (9.36405% x .79) + (90.63595% x .805) .8035954 W. I. Steven W. Shefte .0100000 O.R.R. I. Harry A. Ells, Jr. (9.36405% x .0125) .0011705 O.R.R. I . Energy Minerals Corporation (90.63595% x .06) .0543816 O.R.R. I. Louis E. Spomer (9.36405% x .1875) .0175576 R. I. Weld County, Colorado (90.63595% x .125) . 1132949 R. I. DIVISION OF INTEREST - SPOMER NO. 33-14-1 WELL Based upon the material examined and subject to the Title Comments and Requirements below, it is my opinion that the division of production of oil and gas from all formations between the•surface and the top of the Niobrara formation in the Spomer No. 33-14-1 Well in the SE}SW3 of Section 33, Township 5 North, Range 66 West, 6th P.M. , is as follows: Owners Net Revenue Interests Francis Energy, Inc. (2.61767% x .8025) + (97.38233% x .805) .8049346 W. I . Steven W. Shefte .0100000 O.R.R. I . • 91_C F E7`,A Permian Operating L.P./Francis Energy, Inc. Spomer Nos. 1 and 33-14-1 Wells - DOTO Permian Lease No. 040139 - March 11, 1991 - Page 14 Energy Minerals Corporation (97.38233% x .06) .0584294 O.R.R. I . Louis E. Spomer (2.61767% x .1875) .0049081 R. I. Weld County, Colorado (97.38233% x .125) .1217279 R. I. TITLE COMMENTS AND REQUIREMENTS 1 . All of the requirements contained in the above-mentioned Drilling and Division Order Title Opinion dated August 2, 1989, and Drilling Title Opinion dated October 25, 1990, are either satisfied or advisory in nature. Requirement: None, advisory only. 2. The primary terms of the subject oil and gas leases have expired; however, Energy Minerals Corporation recorded an Affidavit of Lease Extension for Leases A and C in 1985, and The Robert Gerrity Company recorded an Affidavit of Extension of Oil and Gas Leases for all the subject oil and gas leases in 1989, which provide constructive notice that the primary terms of the subject oil and gas leases have been extended by production. Requirement: None, advisory only. 3. A Memorandum of Fifth Amendment to Gas Purchase and Processing Agreement recorded in Book 1245 under Reception No. 2193026 of the records of Weld County, Colorado, indicates that The Robert Gerrity Company committed the subject oil and gas leases to a Gas Purchase and Processing Agreement dated December 1, 1998, with .Associated Natural Gas, Inc. , under which the buyer has agreed to purchase, gather, transport, and process any and all gas produced and saved for the price and upon the terms contained in the Agreement. Requirement: None, advisory only. 91C482 Permian Operating L.P./Francis Energy, Inc. Spomer Nos. 1 and 33-14-1 Wells - DOTO Permian Lease No. 040139 - March 11, 1991 - Page 15 This opinion is limited to matters reflected by the data examined, as described above. Colorado Land Services advised that first sales of oil from the captioned wells commenced on February 13, 1991. Title to the subject lands, in my opinion, is adequate to support payments made under division orders prepared in accordance with the division of interest set forth above as of the date of first production. Very truly yours, William M. Foster WMF/gmb cc: Colorado Land Services 91 148 ------ P. FEB 0` '91 12:04 Certificate of Acreage Calculations Colorado S:J'-, Section 33 T5N R66W 6th P.n. (Weld County, rI (Not to be recorded in Weld County records) I 1316' 1316' m 0 U T NE;SWs Total Acres=39.94'± m t J.� ._,.j NW�SW- 1 Railroad acres=3.741 `l^ 0' 2d p'5pp' 0 39.43±acres I Net acres leis=36.'10' Scale 1"=5U0' 0 f mf �� Denver Laramie,and Northwestern Railwa (150'RUW) v 0 co 1 i I SE�SW `� oTotal4Acres=39.22± Total Acres=39.731 c, Railroad acres=4.961 Railroad acres=1.04± c Net Acres'`left=34.26± Net acres left=38.69 0 1 ! 1302' l 1302' I Surveyor's Certificate i T, Billy G. Hollowayarcertify that the above plat 's correct to the best j of my knowledge and belief. February 1, 1991 Registereld a d urveyor N - 2858 State of Colorado sonMM Sita5nteesf t• Q i 4. �1 Tj ADAM BMA * 1 rt 2853 7� LANDMIIN y "�A1� Colorado LandSeivices , %e .ate �. •.4. �• ``'•rF OF ca.. ,• LON MNT,COL RADOCIRCL N•�,•M• LONGNONT,COLORADO 80501 PHONE:(303)530788 RES:530-9819 OIL AND GAS LEASES (6)=ND .TILE TAKE-OFF ,('� RIGHT OF WAY ACQUISITION �' 1. � NOTARY PUBLIC LEASE RECORDS MAINTENANCE 482 i • by ',v �-,.,,:„,i.1.14-,,,;,....:� r f -'Y •wi .y r `;.;;.;:"i.::Y °-- _ Nei hf,,i4c- al wi iit ,r [;- wS l i,„ •CR.� , l - `'�: L G r •f y 4�. 1�.t if Ir v� rT,(��k.ip. �` If Q ,s �,''C 1 N> tvtf ' a.... a>e .t,Xf.: ,-flpirenirr. +Cif,' . , rrjpy 3 0 T+ SS s.: 1f { %^ntrft.*1 ir.b �"' • - b.*r: 'i `' .�_t , .• , ,` .ate h",k'q.a S v `�•i,.{'�L-ela nkiO' v, y 1,. �'^i^ • ,-- I�^ ,� fir.^,,.a J 113410i & ' i \.] / rG flr I I 5' M S46 I % k1, _.ti l �t /R l • 32EKOy i } 1 f . . L $ a FkTS'�,omeri' ,. f r' 1N)' I'.-_. •.dc. . ..fit . . •l`Z'� i� r.,l /' Jr-- ac. Y k c ;. • \ • , ,y-IRA Cr 3 �`"- t� , ...�_ r,..- rar '• , *-4": 4:•‘•-+ if fi. • i.kt•c� �� Y• it �' 3 7rPli SPorried ' L r' :•4::;1-a3'44-1 tF�2$z?��,.. `' a .1 f1� _i980_. � _ �� - . . ��,y s � I�r`r,. ,� '750f �'%"T�'FS • I .:. - -,.•-a r'V�. t T4�'" :,, i• !k w S..-4'�L 3',,.� • e I C c. T 5 'hkN' f PA # , l�A - ` ..4m� � l•.ti) ,,.I+.r , i r 74 ,2r-r 13 I I iM,R,,"r iN i .r I i • �jy, tr'+,: xya' . . ; 1111 '- Y719a FR5. -011"G,,ly%} 1l'• •l� i �"�� ,.C; t, -0 '';,L I � � �i i i. C �.. .TA,,r r i t 1 • —{ 3+Fa d ,fir to �9 ��`" 4L.,,4'. TOWNSHIP 5 NORTH, RANGE 66 WEST OF THE 6th P.M. rxIffit SECTION 33: ALL r, r f' I; � WELD COUNTY, STATE OF COLORADO ` 0 .r-• • ►� knot not to scale) • leirsi:iispy l may. ! ... u Y �. N +dS �fda�,� atirat 1 t'I; v 91.0483 Hello