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HomeMy WebLinkAbout910547.tiff AR2254357 RESOLUTION RE: APPROVE ASSIGNMENT OF LEASE FROM JOSEPH SCHNEIDER TO SCOUT ENERGY M p CORPORATION o U 0 --- . WHEREAS, the Board of County Commissioners of Weld County, Colorado, Upursuant to Colorado statue and the Weld County Home Rule Charter, is vested with Ca the authority of administering the affairs of Weld County, Colorado, and a 0 3 WHEREAS, Joseph Schneider, P.O. Box 297, Ft. Morgan, CO 80701, has o a requested permission to assign all right, title, and interest of an Oil and Gas +a•wW Lease covering 160 net minerals acres located in the NEI, Section 27, Township 12 a North, Range 58 West of the 6th P.M. , Weld County, Colorado, to Scout Energy 0 U Corporation, P.O. Box 1348, Edmond, OK 73083, and W ini x WHEREAS, said Oil and Gas Lease is recorded in Book 1273, Reception co 112223778, in the records of the Weld County Clerk and Recorder, and O a WHEREAS, the required $25.00 fee has been paid, and mU --- WHEREAS, pursuant to Weld County's Oil and Gas Lease, said assignment must N H be approved by the Board of County Commissioners, and ---..w k.c E o cn WHEREAS, after consideration, the Board deems it appropriate to approve the 3 hereinabove mentioned assignment. r in w 'n 44 NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld v in z County, Colorado, that the assignment of said lease from Joseph Schneider, to N 1 Scout Energy Corporation, be, and hereby is, approved. 0 r w 5 The above and foregoing Resolution was, on motion duly made and seconded, rz adopted by the following vote on the 19th day of June, A.D. , 1991. N O 0 01 M ri BOARD OF COUNTY COMMISSIONERS M w ATTEST: _ WELD COUNTY C ORADO Weld 6 arty Cler Lott Board �. y f� .P_,' Gordo y, n J By: Deputy^ „a __ -9 the Gear e Kennedy, Pro-Tem APPROVED AS FORM: ; Constance L. Harbert C________1__- i> tt-Cj/,2 County Attorney C. W. Kirby W. H. Webster 11-214 910547 h.F_o13(.O ( i ' i; Mid-Continent Association. w.Reassign. STATE OF 601 I ss. COUNTY OF ASSIGNMENT This instrument was filed for record on the OF OIL AND GAS LEASE day of , 19____, at KNOW ALL MEN BY THESE PRESENTS: o'clock __ M., and duly recorded in book That the undersigned, _,IOseph_Solaue:ider Page of the records of this office. PO Box 297, Ft. Morgan, CO 80701 (hereinafter called Assignor), for and in consideration of One Dollar Register of Deeds. ($1.00) the receipt whereof is hereby acknowledged, does hereby sell, When recorded Return to assign, transfer And set over unto__SCQl t_El ergY_COrp. _FS?_Box_J.348,_.Eclu nd,_OK__ 73_483 (hereinafter called Assignee), All of Assignor's right,__ttit].e_and interest in and to the oil and gas lease dated __ &uguat_fl , 199.0_, from Count}_,_Coloradn,_acting_b _and_through fihe_Boarrl_of_County__Cotomissinnprs_nf_thp_Cnitnty_o£_Welcl , Lessor, en O to Gina M, Schwartz_ , Lessee, o U o recorded in book ____1273 Rec,_22237J_8, insofar as said lease covers the following described land in n1 N O Weld County, State of C419kdL1Q A a oW o $ o Township 12 North, Range 58 West • 49- WW Section 27: NEa a O U W n 41 CO ox W cn rn U \ 1/40z N H \ W kin E o to i1] W l e W r1 W *** *** *** • z of Section , Township , Range , and containing 160.00 acres more or less, together N Z with the rights incident thereto and the personal property thereon, appurtenant thereto, or used in connection therewith. N �r o And for the same consideration the Assignor covenants with the Assignee, its or his heirs, successors or assigns; That the • Assignor is the lawful owner of and has good title to the interest above assigned in and to said lease, estate, rights and property, W free and clear from all liens. encumbrances or adverse claims; That said lease is a valid and subsisting lease on the land above described, and all rentals and royalties due thereunder have been paid and all conditions necessary to keep the same N rl in full force have been duly performed; and that the Assignor surrenders and releases all rights of dower and nomestead in rn the remises above described. M a) p H Reserving however, unto the Assignors herein an overriding royalty of None _ W G.i of all the oil, gas and other hydrocarbons produced, saved and marketed from the above described lands. This overriding royalty and all other terms and conditions of this assignment shall apply to any and all extension, renewal and substitute leases obtained by Assignee, its successors or assigns on the land described herein. If said oil and gas lease covers less than the full fee simple estate in the oil, gas and other hydrocarbons under any tract or tracts of the land assigned hereby, the overriding royalty herein reserved by Assignors, with respect to that tract or tracts, shall be proportionately reduced. In the event Assignee desires to surrender said lease as to all or any part of the acreage covered thereby, said Assignee agrees to notify Assignor by registered mail, at least -�_ _. -_ days in advance of the anniversary date specified in said lease, and Assignor hereunder shall then have -0- days after receipt of such notice within which to elect to take a reassignment of said lease as to the portion thereof to be relinquished. Should assignor hereunder elect to receive such a reassignment, same will be delivered by Assignee prior to the anniversary date of the lease. It is under- stood, however, that there shall be no penalty for oversight or clerical error, except liability not to exceed the amnunt that was paid for this assignment. EXECUTED, This ..____ day of ____.11aZ , 19.91, without warranties of any kind. c /L (Seal) X :i...42y1 „L [Jf ic].'l.ca �y.',,s..�,�"`I (Seal) Joseph Schneider (seal) 910547 LEO/3 (l Printed by P&M Printing,511 16th St.,Suite 222,(303)893-1681 STATE OF 1 Oklahoma, Kansas, New Mexico, Wyoming, Montana, Colorado, Utah, }is. Nebraska, North Dakota, South Dakota COUNTY OF ACKNOWLEDGMENT—INDIVIDUAL __ BEFORE ME, the undersigned, a Notary Public, in and for acid County and State, on this day of 19 personally appeared and o U to me known to be the identical person -described in and who executed O the within and foregoing instrument of writing and acknowledged to me that duly executed the same as free r,�j CI and voluntary act and deed for the uses and purposes therein set forth. U a IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal the day and year last above written. W My Commission Expires 0 3 — Notary Public. • 0 a vi- W Cl 0 STATE OF COLORADOOklahoma, Katwa, New Mexico, Wyoming, MonUma ,aColondo, Utah, O ss. Nebraska, North D oe South V COUNTY OF MORGAN ACKNOWLEDGMENT—INDIVIDUAL 1` BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on this N .. ,n 03 day of May 19 9i 0 .''G personally appeared_ xlos.e.�?1a...SS<tllxei.sieX a ELI - rn U and km 2 , to me known to be the identical person described in and who executed N H ."-- W the within and foregoing instrument of writing and acknowledged to me that. he duly executed the same as .1115 free o � and voluntary act and deed for the uses and purposes therein set forth. C4 t` D IN WITNESS WHEREOF, I have hereunto set my hand and affixey notarial seal the day anrz.-yeir las W t above written. ILO -�,�y/J, o . n M My Commission Expires 7- { f..- 5 L _._.�,� / ! / :._.'. .�1 V_ .er ataxy Public. to z — 0 Slate of ) V i i - }ss. ACKNOWLEDGMENT (For dirck,'��'�+orpIIISI � LI 0 County of J " .1 a N N On this day of A. D. 19 before me personally appeared M0 r.„..°1 PIR to me personally known, who, being by ~ ~ me duly sworn, did say that he is the of q k+ and that the seal affixed to said instrument is the corporate seal of said corpora- tion and that said instrument was signed and sealed in behalf of said corporation by authority of its Board of Directors, and said acknowledged said instrument to be the free act and deed of said corporation. Witness my hand and seal this day of A. D. 19 (SEAL) Notary Public. My Commission expires m .9 C at 4 ... T 'O V o U P h, _T Q i T V Q0 . O -0 0 u '2 c p c .C C p>, O T. �QpQ v O O cid O V •• ( a -0 0 0 -2 ¢a. F � `o W d u g ...+4J 2 Z o a 0 3 i 0 E a 2 E. d ^� a F-. . � > m ' � 'NT"%..,N. 91° 4DI OFFICE OF COUNTY ATTORNEY ing` PHONE(303)3564000 EXT.4391 \\ P.O. BOX 1948 GREELEY, COLORADO 80632 C. COLORADO May 30 , 1991 Joe Schneider Rival Services, Inc . P. O. Box 297 14400 Highway 34 Fort Morgan, CO 80701 RE: Oil and Gas Lease in the Northeast Quarter , Section 27-12-58 , Weld County, Colorado Dear Mr. Schneider: This letter is in response to your letter dated May 24 , 1991 , requesting information regarding the Weld County Oil and Gas Lease in the Northeast Quarter of Section 27 , Township 12 North, Range 58 West of the 6th P .M. , Weld County, Colorado. Your letter asks whether Impact Energy ever executed the extension option in the Lease which it held as Lessee and which was dated October 28 , 1987 . I find no record in the Clerk to the Board file which shows that Impact Energy ever requested or was granted an extension of the Lease . Please be informed, however, that this letter is not to be construed as a warranty of Weld County' s title in the leased minerals , nor is it to be construed as a guarantee that no persons or corporations may claim to hold the minerals by production. If you should have any further questions regarding this Lease, please feel free to call me at ( 303 ) 356-4000 , Ext. 4391 . Sincerely, / C-- ruce T. Barker f �� Assistant Weld County Attorney BTB: rm t91-054" rm nnir -J Rival A≤►er;v�;c�es, Inc , ti Inc. hi�Y �� 9l U f C P.O. BOX 297 l -_) 14400 HIGHWAY 34 EL C COUNTY FORT MORGAN,COLORADO 80701 DvITORNEY'S OF-riCE R 303/867-9437 May 24 , 1991 OFFICE OF COUNTY ATTORNEY P.O. BOX 948 GREELEY, COLORADO 80632 ATTN: MR. BRUCE BARKER, ASSISTANT WELD COUNTY ATTORNEY Dear Mr . Barker , As a follow up on our telephone conversation this morning concerning a Weld County Oil and Gas Lease in the NE a Sec 27-12N-58w, Weld County Colorado , originally purchased at a weld County Lease Auction by Gina Schwartz on my behalf and the reassignment of the lease from me to Scout Energy Corporation of Edmond, Oklahoma. Scout Energy Corporation plans to re-enter a well in the NE-Ne Sec 27-12N-58W, Weld County, Colorado in the near future and in order to clear the title on the lease I would appreciate it very much if you could give us a Certificate stating that the previous Lease Owner Impact Energy has not executed the option on a three year extension of this lease . Thank you very much for your help. ince ielyR ,, , Joe Schneider JS :cw S.1.0342`2 • • ; 6 , ipm,H44D OFFICE OF COUNTY ATTORNEY PHONE(303)3564000 EXT. 4391 P.O. BOX 1948 GREELEY,COLORADO 80632 WI ige COLORADO May 21, 1991 Joseph Schneider P.O. 297 Fort Morgan, CO 80701 RE : Assignment of Oil and Gas Lease for Property Located in: Northeast Quarter, Section 27 , Township 12 North, Range 57 West of the 6 p.m. , Weld County, Colorado Dear Mr. Schneider: The Board of County Commissioners of Weld County, Colorado, has received your Assignment of Oil and Gas Lease for the above described property. Pursuant to Weld County Ordinance 84-L, lessees who wish to assign oil and gas leases must pay Weld County the sum of $25 . 00 for each assignment . A copy of the ordinance is enclosed herein. Please remit the sum of $25 . 00 to the Board of County Commissioners of Weld County, P.O. Box 758, Greeley, CO 80632 . Once the Board receives your $25 . 00 payment, it will then considered your Assignment. If you should have any questions regarding this letter or regarding the enclosed Ordinance, please feel free to call the Clerk to the Board of County Commissioners of Weld County at ( 303) 356-4000 , Ext . 4200 . Sincerely, �! `__ --‘1::;) ruce T. Barker Asst . Weld County Attorney BB:cgt xc : Clerk to the Board 21.031" tt - � OFFICE OF COUNTY ATTORNEY PHONE(303)356-4000 EXT. 4391 P.O. BOX 1948 GREELEY,COLORADO 80632 1111111e May 28 , 1991 COLORADO William E. Crews Crews and Zeren 1223 28th Avenue, Suite 2 Greeley, CO 80631 RE : Scout Energy Corp. , Weld County County No . 1-R Oil and Gas Well , Northeast Quarter, Northeast Quarter, Section 27-12-58 Dear Mr. Crews : This letter is in response to your letter dated May 22 , 1991 , concerning Scout Energy Corporation' s intentions to re-enter an old well for Weld County No . 1-R Oil and Gas Well, Northeast Quarter Northeast Quarter, Section 27-12-58 , Weld County, Colorado. I accept your letter and the associated information as notification in compliance with Section 18 of the Oil and Gas Lease between Weld County and Gina M. Schwartz, dated August 8, 1990 . It is my understanding that the Lease has been assigned by Ms . Schwartz to Joseph Schneider. Mr. Schneider recently assigned his interest in the Lease to Scout Energy Corporation. Please be advised that Weld County has no objection to your commencing drilling opertations, as long as you comply with the permit and all of the conditions and requirements from the United States Forest Service. Weld County' s consent is also conditioned upon your compliance with any and all requirements of the First Interstate Bank' s Restoration Bond. If I can be of any further assistance in this matter, please feel free to call me at 356-4000 , Ext . 4391 . Sincerely, BY`uce T. Barker Assistant Weld County Attorney BTB: rm 531O,54-1-1 L.]IN CREWS & ZEREN PETROLEUM LAND CONSULTANTS 1223 28TH AVENUE, SUITE 2 GREELEY.COLORADO 80631 (303)3510733 GREELEY (303)659-7710 DENVER (303)351-0867 FAX May 22, 1991 Bruce Barker, Esq. Weld County Attorney's Office P.O. Box 1948 Greeley, CO 81632 Re: Scout Energy Corp. Weld County #1-R Oil and Gas Well NE'/aNEV4-27-12n-58w, Weld County Dear Bruce: Enclosed please find a complete copy of the permit application which Scout Energy Corp. is making to the United States Forest Service for a permit to reenter an old well under the applicable Weld County lease. Scout is providing a $2,000 certificate of deposit for the life of the well to ensure restoration, and will comply with U.S.Forest Service requirements regarding surface management. The assignment from Joseph Schneider to Scout Energy Corp., I am told, was sent for recording recently by Mr. Schneider, along with a separate request to Weld County for approval of the assignment and the required fee. I have omitted the articles of incorporation, by-laws, etc. for Scout which are a one-time filing requirement for the Forest Service. Scout is an Oklahoma corporation, properly registered with the Colorado Secretary of State, and maintains its principal office in Edmond, OK If you have a need for these many pages of documents, just let me know. Please confirm to me as soon as possible that Scout has permission from Weld County to commence drilling operations. If you need anything else, kindly let me know. Regards, William G. Crews, CPL Agent for Scout Energy Corp. WGC/mm CREWS & ZEREN enclosures PETROLEUM LAND CONSULTANTS VIA HAND DELIVERY 1213 26TH AVENUE. SUITE 2 GREFI FY COLORADO 60631 (303)351 0733 GREELEY (303)659-7710 [DENVER WILLIAM G. CREWS. CPL (30313624010 RESIDENCE 21.03_P NATIVE CULTURAL SERVICES ARCHAEOLOGICAL SURVEY OF SCOUT ENERGY CORPORATION'S WELD COUNTY #1 WELL LOCATION WELD COUNTY, COLORADO by Anna P. Harrison Submitted to Scout Energy Corporation P .O. Box 1348 Edmond, Oklahoma 73083-1348 Submitted by Peter J. Gleichman Principal Investigator Native Cultural Services U. S .F. S. Special Use Permit No . 88003 May 7 , 1991 at ors1.0 INTRODUCTION On May 6, 1991 , Native Cultural Services conducted a cultural resource inventory of 42 . 3 acres containing the proposed Weld County #1 well location and access road. The work was performed at the request of Crews and Zeren of Greeley, Colorado on behalf of Scout Energy Corporation, in compliance with current Federal regulations concerning the protection of cultural resources during land disturbing activities on Federal lands . The proposed well pad is on U. S . Forest Service land in the Pawnee National Grasslands , Weld County, Colorado. The intent of the cultural resource inventory was to locate archeological sites and assess their significance so that appropriate management decisions may be made regarding their protection. The project area includes 40 acres of U. S.F. S. land in the NE 1/4 of the NE 1/4 , Section 27 , T12N , R58W, 6th P .M. Inventoried access for this parcel begins at the point where County Road 129 enters USES land at the midpoint of the section line along Sections 27 and 26 . The access will proceed north 1/4 mile along the section line , within Section 27 , to the 40 acre well pad parcel (Figure 1) . Fieldwork was performed under U. S . F. S . Special Use Permit No . 88003 ( expires August 1 , 1991 ) . Anna P. Harrison performed the field inventory. ENVIRONMENT The project area is in the short-grass prairie of the Great Plains . This is an area of gently rolling terrain with ridges and small drainages and ephemeral streams. The proposed well pad is generally flat with a gentle south-east facing slope in the SE quadrant of the parcel . Elevation is approximately 5230 feet . Vegetation in the project area consists of short grasses and prickly pear. Some Astragalus is present . Soils are tan sandy loam with limestone pebbles and cobbles outcropping in places on the south-east facing slope. The land is currently used as pasture, and may have been cultivated in the past . Land is cropped to the immediate north of the project area with grazing occurring to the south and west . 1 1 '') I (43) `..-22 23 i � I ' f I / f I szz9 5!vs. II � 5NID J " I 1 ^`b ° . 4 11 X11 ,. . 1 ` � A', ,�I I. 1 P• x 1 -1 311 _ a ; - ,1 y\�t, � vI r 1 . a; ''zoo I1 fli _ ':\(� AI, szsJmPaw Ii u I 'I' .0de ic....‘'I \ ) (I ) �I'� ( 1 I 'll �,°IjI( �I I I I _I \ /v(hv{T� so I =ass =/1' I I'" . I I 1 �' I 5 1 tl 1 I 5d0�� 1 .i is IISJilatto. l I 59_15/57 ... �. � .—\ Well 1 x I _ Draw —�`\ jl I'.' I II II n / �... „".�' x ........ I,itt_. 1 A �. .f _ y '. (. 1 I \ 5 . ( 34_ _ wen �� ....� � I I I I ' j J ' J _ -- —- —'-135\ 1 •vd I� r 1 1 —� / I �II lU i / / I , ) I j / I' j i,� )� 1 �I II f� ( 1 We I ' ' I ', ---5- 5Q4.4 11 5,5] I I� i �� Wells ',,, ., \ i 1 y + 5,�- 1 ly - ��n / l ' i Figure 1 . Project Area Location . Section 27 , T12N, R58W, USGS Vim School , CO ( 1977 ) 7 . 5 ' Quadrangle. EXISTING DATA AND LITERATURE REVIEW The known culture history of the general area is summarized in Eighmy (1984) . A file search was conducted at the Colorado Office of Archeology and Historic Preservation on May 23 , 1991 . No previous surveys have been conducted in the project area, and no known sites are present . OBJECTIVES The primary objectives of the present project were to provide the U. S. Forest Service with an inventory of significant archeological and historic sites , and to produce recommendations on how to avoid adverse impacts to those resources from the proposed well and access road. Prehistoric sites in the Pawnee National Grasslands are generally limited to small scatters of lithic debris and tools left by groups following a hunter-gatherer adaptation. These sites tend to be in areas near water sources . Most historic sites in the area are homesteads from the early 20th century - sites which were abandoned during the dust bowl of the 1930 ' s . It was expected that if prehistoric cultural resources were located within the project area, information obtained from those resources would be applicable to a number of research concerns such as regional chronology , settlement patterns , resource utilization, site function, and cultural affiliation. Many of these issues are outlined in Eighmy 's (1984) "Colorado Plains Prehistoric Context" . The proposed well location is several kilometers from major drainages and springs , in an area of slight or no topographical relief . Numerous playas and ridge systems are present east and south of the project area, and prehistoric use of the vicinity was probably oriented toward those features . This parcel therefore was not expected to contain sites . FIELD METHODS The 40 acre parcel was inventoried by walking adjacent linear transects , 20-25 meters apart , 404 meters long , until the entire parcel was covered. The access route was inventoried by walking two 50 foot (15 meters) transects to cover a 100 foot ( 30 meters) wide corridor along the eastern section line fence . 3 131.05 4") Evidence of cultural resources was sought in the form of material debris , structural remains , or any unusual surface anomaly. Isolated Finds were defined as areas with fewer than four artifacts in a space of 100 x 100 meters . Sites were minimally defined by the presence of four artifacts or at least one structure or feature . RESULTS No cultural resources were located during the inventory of the project area . The absence of sites is probably attributable to the lack of topographic relief and water in the area. RECOMMENDATIONS No cultural resources are located in the project area . Since no significant resources will be effected by disturbance associated with the proposed well and access , it is recommended that the project be allowed to proceed as planned. 7az r1, Gle1 s -Vq/ Peter J . Gleichman Date Principal Investigator 4 HHLLiHRRFt_ELL/"FT .MG . CO . TEL No . 3036679137 303'6679137 May 21 , 91 91 15 : 35 P . 01 01 Reception No. : BOOK 93?htt 987 Mid-Continent Association. w.aeaasige. ►ej25(1195 STATIC OF COLORADO sa' COI / IG v ASSIGNMENT COUNTY OF This Instrument was was filed for record on the OF OIL AND GAS LEASE day of MAY 1 6 1181 at_3.?..9 KNOW ALL MEN BY THESE PRESENTS: O'clock P M„ and duly recorded In book 932 That the undersigned, _,losaph.Sc,buaidex Page 987 of the records of this office. .f`11.IiQX._29Ze_F4,.1J4rgetn,_cn BQ7Q1 Fay A. Johnson .(hereinafter called Assignor), for and In consideration of One Dollar Register of Deeds. 'Man) the receipt whereof is hereby acknowledged, does hereby sell, µ'hen recorded Iteturn to assign, transfer and set over unto-.SD:Wt..Enargy_Corp ..EQ.UPX.1349 _1Oupp4_0K.._731183 (hereinafter called Assignee), .A11,..O1;.11tmigflor,t.B..Xl ]t,-_t title_and Interest In end to the oil and gas lease dated ...A1tlgUat.A._............. 1990-, from „WA. through. She , Lessor, to , Lessee, • recorded in book ....12.73 , (gt Rec...2223728, Insofar as said lease covers the following described land In weld .. County, Slate of CAlorada Township 12 North, Range. 58 west ' Section 27: NEk • of Section *** Township *kA Range *** , and containing acres more or less, together with the rights incident thereto and the personal properly thereon, appurtenant thereto, or used in connection therewith. And for the same consideration the Assignor covenants with the Assignee, Its or Ills heirs, successors or assigns; That the Assignor is the lawful owner of and has good title to the interest above assigned in and to said lease, estate, rights and property, free and clear from all liens. encumbrances or adverse claims; That said lease is a valid and subsisting lease on the land above described, and all rentals and royalties due thereunder have been paid and alt conditions necessary to keep the same in full force have been duly performed; and that the Assignor surrenders and releases all rights of dower and nomestcact in the premises above described. Reserving however, onto the Assignors herein an overriding royally of ,,14one_� . ._.. _.. of all the oil, gas and other hydrocarbons produced, saved and marketed from the above described lands. This overriding royalh and all other terms and conditions of this assignment shall apply to any and all extension, renewal and substitute leases obtained by Assignee, its successors or assigns on the land described herein, If said nil and gas lease Covers less than the full fee simple estate In the oil, gas and caber hydrocarbons under any tract or tracts of the lanai assigned hereby, the overriding royalty herein reserved by Assignors, with respect to that tract or (rads, shall be proportionately reduced. In the event Assignee desires to surrender said lease as lu all or any part of the acreage covered thereby, said Assignee agrees to notify Assignor by registered mail, at leas( .,... _`O^ ........,days In advance of the anniversary date specified in said lease, and Assignor hereunder shall then have —O^ _ _ days after receipt of such notice within which to elect to take a reassignment of said lease as to the portion thereof to be relinquished, Should assignor hereunder elect to receive such a reassignment, same will be delivered by Assignee prior to the anniversary date of the lease. it is under. stood, however, that there shall be no penalty for oversight or clerical error, except liability not to exceed the annum that was paid for this assignment, EXECUTED, This .__ day of ._May , 19.91., without warranties of any kind, (Seal) s X � l/�.��s . q. (Seal) Jos ph chneider (Seal) Printed by P&M Printing,all 18th St.,Snit 222,(303)89340M WM. 932,15E 988 STATE. OP Oklahoma, Kansan, Now Mexico, {Wyoming, Montana, Colorado, Utah, JJJJJ COUNTY OP Ise. Nebraska, North Dakota, South Dakota ACKNOWLEDGMENT—INDIVIDUAL BEFORE ME, the undersigned, a Notary Public in and for said County and State, on this day of 19 personally appeared sad , to me known to be the identical pen& -described in and who executed the within and foregoing instrument of writing and acknowledged to me that duly executed the same as free and voluntary act and deed for the uses and purposes therein set forth. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal the day and year last above written. MY Commission Repines ....._— Notary Public. -.._ STATE OP .,.,••...COWIE° Oklahoma, Kansas, New Mexico, Wyoming, Montana, Colorado, Utah, 1st Nebraska, North Dakota, South Dakota COUNTY OP ...R:K?.??�M ACKNOWLEDGMENT—INDIVIDUAL BEFORE MP., the undersigned, a Notary Public, In and for said County and State, on this day of may 19„.9.1 personally appeared l.k),S.P.pf1,..S.chne.i.cleS mod_ ...... _... —• - --• � -.--- , to me known to be the identical person , described ih and who executed the within an foregoing Instrument of writing and acknowledged to me that. he dui executed the.same'ax. I ,�> 2 9 g 2 y .......,,.RL •_......,....free and voluntary act and deed Mr the uses and purposes therein set forth. 1.\ .' IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal the day and year last above:written. My Commission Expires 7..fa.-94- .........`��„.v `occLy/ .......... M , • No;. c1; • .,, ;,;/ •I, (qN Stott of ACKNOWLEDGMENT (Tor use by l".orpb'ratian) Isl. County of On this day of A. O. 19.,......,.., before me personally appeared to me personally known, who, being 6a, me duly sworn, did say that he is the of and that the seal affixed to said instrument is the corporate seal of said corpora- tion and that said instrument was signed and sealed in behalf of said corporation by authority of its Board of Directors, and said - - acknowledged said instrument to be the fret act and Jett of said corporation. Witness my hand and seal this day of A. D. 19 • I SEAL) Notary Public, My Commission expires • I f i i ( i x g il! I �i I i i ( Cii7 �. Z� I il i i ! i a ! V� Ci I i •5 7 a. �`i. ` C! il �<1 i c 1 .,., 3 , 1, till Di 1 rit w � I IF I I coi0 � i `R I }� ! I S I 5 ' u A C, Nt I `1 j i 3 ¢� Q .a T. \al ! i ° �! 3 .,,, N-1! �� \l I i i o ! I I ;4., A ! 1 <:r� i1 1 �a1 Ci ! F •�� I tea.\ �`ti. I ; '....a..1., 1 l • • CREWS & ZEREN May 22, 1991 PETROLEUM LAND CONSULTANTS 1223 28TH AVENUE,SUITE 2 Mr. Bud Phillips GREELEY,COLORADO 80831 Pawnee National Grassland Office 303)331-0]33 ORE DENVER (303) 03)351- DENVER 660 "O" Street 303)381-088] FAX Greeley, CO 80631 Re: Request for Permit VIA HAND DELIVERY Scout Energy Corp. Weld County #1-R Oil and Gas Well NE%NEYs-27-12n-58w, Weld County Dear Bud: Enclosed please find the following: 1. Form FS2700-3 with the following attachments: A. Survey Plat B. Well location and access route plat C Pad layout diagram D. Cut/Fill information E. Proposed production facility layout F. Corporate information for the Forest Service 2. Copy of approved Colorado Oil and Gas Conservation Commission drilling permit. 3. Copies of the Weld County lease to Gina Schwartz, the assignment from Schwartz to Joseph Schneider,and the assignment from Joseph Schneider to Scout Energy Corp.which has been sent for recording and County approval. 4. Cultural Resources Survey from Peter J. Gleichman (Native Cultural Services). A certificate of deposit in the amount of$2,000 has been sent to you directly by Scout Energy Corp. If it has not been received, please let me know. We are ready to commence reentry of the old well just as soon as you let me know that our permit has been approved. If you need anything else, please let me know. Cordially, William G. Crews, CPL Agent for Scout Energy Corp. enclosures WGC/mm cc: Bruce Barker, Esq. Weld County Attorney's Office P.O. Box 1948 Greeley, CO 80632 (w/o corporate attachments) Q1 v 41-y CERTIFICATR OF SURVmY for Scout Exploration Weld County,Colorado REENTRY -Tied iessit) 6Play � •S s! �� �riS � �✓ FFEp/rRi5Couregra Ono✓ /V,/I stn vo,,,,,644 de. �rVe cam 4)uryaft3Z ' CH SE '- 27 SCAtEI'-TODD /2614.9 • I hereby state that thm above plat is an aom•rate representation of a correct survey shaaing the approimate location of a surface casing in the NriNE} Sec.27 T12N R58W 6PM to be reentered as Scout Rxploration Weld County No.1 Cilwell.The elevation � pi ground is 5232 feet above sea level from U.S.C. " 1° rp, S• Benc�,v � ,qr„7;k!,Quad. Fort Morgan,Colorado p}p.• .�' '`�• ":r: '.'; March 22, 1991 �+ ` /?c Regiat rea Pry 'aeion8l Engineer �;�State Zp10I, d0 �•n. . t{r / V r„.‘ � 741:. �l; S D�l .t`. • C 531_03•1°*, First 0First Interstate ednh ol Denver.NA J1484016 Interstate 6333 Seventeenth tree'Denver Certificate of Deposit Receipt Den er.CN ComaEo 80210 Bank The following has been deposited with us: Interest gate Issue Dale Maturity Date c8483016�sItNo. $m 2,000.00 ount l 5-20-91 5-20-92 5.75 % Received From: Interest to be paid: )fX Monthly ❑ Quarterly ❑ Semi-Annually ❑ Yearly Payable To: Interest to be paid by: De>osil to Checking Account Number • Scout Energy Corp. or USDA Forest SerVloe rii Deposit to Savings Account Number P.O. Box 1348 Edmond, OK 73083 ❑ Mail Remittance KX Reinvest Surface Restoration Bond R E C E I`v E D • Sec 27 12N-58W ' `Weld Count , CO #1 Weld County Re-Entry ExViniiion MAY 21 1991 B7 Q/�� . ���;� sx zz o3s t5185)[30A1 PA W Ngie reverse side for Terms of Renewal and for Pe ties for Early Withdrawal. q 05gr WAN No. JLY6- Expires 9/30/8t USDA•Foroet Service FORF SERVICE USE ONLY Date n Received Region ,.amber State Code County Code SPECIAL-USE APPLICATION AND REPORT oo (Ref.:FSM 273$36 CFR 251.54) __/_ _ Congressional Forest Code Unit 10 Symbol Diet. Number (Admen. Unit No.) (NFFIO No.) INSTRUCTIONS; Applicant should request a meeting with the Forest ____ Service representative responsible for processing the application, prior to completing this.forth.This meeting Ranger Dist. No. User Number Kind of Use Code will allow a discussion of the form's requirements and (Rosa Dist.) Identity those items to be omitted. PART I—APPLICATION (Applicant Completes) 3. Applicant Name and Address 2. Authorized Agent Name, Title and Address (in. 3. Area Code and Telephon (include Zip Cods) elude Zip Code) if different from Item 1. Number Scout Energy Corp. William G. Crews (agent) a. Applicant's P.O. Box 1348 1223 28th Avenue, Ste. 2 (405) 348-5486 Edmond, OK 73083-1348 Greeley, CO 80631 b. Authorized Agent's (303) 351-0733 4. As applicant are you? (Mark one box with"X") 5. Specify what application Is for. (Mark one box with "X") a. O Individual a. M; New authorization• b. a Corporation* b. 0 Renew existing authorization e. Partnership/Association• e. 0 Amend existing authorization• d. 0 State Government/State Agency d. . Others e. O Local Government •if marked"x",provide details under Item 7. f. Federal Agency • •If marked"X",complete PART it. 6. If you are an individual or partnership, are you also a citizens) of the United States? O Yes 0 No 7. Describe in detail the land use, including: (a).type of use, activity, or facility; (b) related structures and facilities: (c) physical speci- fications (length, width, acres, etc.); (d) term of years needed; (e) time of year of use or operation; (f) duration and timing of con struction; (E) temporary work araas needed for construction; and (h) anticipated need for future expansion. (If extra space is needed. use Page 3, REMARKS). Use is for oil and gas exploration and production. Applicant will reenter an existing (but plugged) wellbore and attempt to complete a well. A.normal rotary drilling rig will be used and is expected to be on the site for approximately three days. If production is obtained, production activities will continue for the' life of the well. The drillsite area will be approximately 230'x300' and will be reduced after drilling to a small production facility area. If the well is productive, additional wells may be drilled in the NEIZ, for which amendment of the permit will, be sought. The minerals are severed and are owned by Weld County, Colorado. The well for which this permit is sought is located in the NEZNE1/4 of Section 27, Township 12 North, Range 58 West, and is being drilled pursuant to an agreement between Applicant and Joseph Schneider, the record owner of the oil and gas lease from Weld County. S. Attach map covering area and show location of proposed use and/or furnish legal description of the land. NE11 of Section 27, Township 12 North, Range 58 West, 6th P.M. , Weld County, Colorado 9. Give statement of your technical and financial capability to construct,operate,and terminate the use for which authorization is requested. including the protection and restoration of Federal lands. (If extra apace Is needed, use page 3,REMARKS). Applicant is an experienced oil and gas operator with expertise in the activities for which this permit is sought. Applicant will either prepay contractors and suppliers or will be extended industry credit on normal terms. Previous edition Is obsolete. - (OVER) FS-270O-3 (10/33 2 I C ,y .y . _ . 10a. Describe other reasonable alternative proposals considered. Due to lack of geological information, no other reasonable alternative exists. • 10b. Give explanation of why It is necessary to utilize Federal lands and why the ahematives in item l0a were not selected. The existing wellbore is essential to the success of the endeavor.,_ • 11. Provide statement of need for proposed use, including the economic feasibility and Items such as: (a) cost of proposal (construction, operation, and maintenance); (b) estimated cost of next best alternative; and (e) expected public benefits. (If extra space is needed, use Page 3, REMARKS). Available geology suggests that the intended reentry will result in production of oil and gas, which the State of Colorado deems to be in the public interest. The cost of reentering the existing wellbore is expected to be far less than drilling a new hole. .2. Describe probable effects on the area population,including social and economic aspects,and rural lifestyles, No effect in the vicinity of the operations. • 3. Describe likely environmental effects that the proposed use will have on: (a)air quality;(b)visual Impact;(e)surface and ground water quality and quantity; (d) control or structural change on any stream or other body of water, (e) existing noise levels; (f) land surface, in. eluding vegetation, permafrost, soil and soil stability and (g) populations of fish, plant,wildlife and marine life,including threatened and endangered species. (If extra space is needed, use page 3, REMARKS). • There should be no -adverse effects except for the visual impact of the rig, while drilling, and the production facilities if a well is completed,. The area disturbed by Applicant's operations will be restored,, and there will be no damage to water or wildlife. ..� Agem .;x f≥r�3 ❑n;uour .�o . re Describe what actions will be taken to protect the environment from the effects of the proposed use. The premises will be restored upon completion of the well, and activities' will be confined to the drillsite area and access road. . Name ell Federal, State, County or other department(a)/agency(ies) where an application for this is being filed. Attach appropriate license, building permit, certificate or other approval document. I Colorado Oil and.,Gas, Conservation Commission. . • "cREBY CERTIFY, that I am of legalese and authorized to do business in the State and that I have personally examined the information 'stained in the application and that this information is correct to best of my knowledge. 16s. (Sign in ink) 16b. bete, IMay 10, 91 e 16, U.S.C. Section 1001, makes It e crime for any person knowingly and willfully to make to any department or agency of the United States false, fictltleus, or fraudulent statements or representations as to any matter within Its jurisdiction ;.21.1..LED �._. "J • • P / PART '' SUPPLEMENTAL INFORMATION (App nt Completes) MARK "X" IN APPRc .,. PRIATE BOX BELON ° I--PRIVATE CORPORATIONS ATTACHED FILED' a. Articles of Incorporation ❑ • b. Corporation Bylaws X® ❑ a A certification from the State showing the corporation is in good standing and is entitled to operate within the State. • d. Copy of resolution authorizing filing see below ❑ ❑ e. The name and address of each shareholder owning 3 percent or more of the shares, together with the number and percentage of any class of voting shares of the entity which such shareholder is authorized to vote and the name and address of each affiliate of the entity together with, in the ease of an affiliate controlled by the entity, the number of shares and the percentage of any class of voting stock of that affiliate owned, directly or ❑indirectly, by that entity, and In the can of an affiliate which controls that entity, the number of shares and below the percentage of any class of voting stock of that entity owned, directly or indirectly, by the affiliate. f. If application is for an oil or gas pipeline, describe any related right-of-way or temporary use permit applica• ❑ ❑ tions,and identify previous applications. • g. If proposed land use involves other Federal lands identify each agency Impacted by proposal. ❑ ❑ II-PUBLIC CORPORATIONS a. Copy of law forming corporation ❑ ❑ b. Proof of organization ❑ ❑ c. Copy of Bylaws ❑ ❑ d. Copy of resolution authorizing filing _ ❑ ❑ e. If application is for an oil or gas pipeline, provide information required by Item "1•f" and "I•g" above. • ❑ ❑ 111-PARTNERSHIP OR OTHER UNINCORPORATED ENTITY • a. Articles of association, if any ❑ ❑ b. If one partner Is authorized to sign,resolution authorizing action is ❑ ❑ e. Name and address of each participant,partner,association,or other ❑ ❑ d. If application is for an oil or gas pipeline, provide information required by Item "I•f" and "I•g"above, ❑ ❑ • If the required information is already filed with the Forest Service and is current, cheek box titled "Filed." Provide the file identificatim information (e.g., number, date, code, name and office at which filed). If not on file or current, attach requested information. REMARKS: (This space is provided for more detailed responses to PART I.),Please Indicate the item numbers to which these response! apply.Attach sheets, if additional apace is needed. d. James A. Hutchison, as President and owner of 100% of the shares of Scout Energy Corp. , has directed William G. Crews to make this application on behalf of Applicant under the powers vested in him as President. e. 100% of the stock of Scout Energy Corp, is owned by James H. Hutchison, P.O. Box 2837, Estes Park, CO 80517. • PART III—REPORT ON APPLICATION (Forest Officer Completes) 4 1. General description of the area and adaptability for the proposed use. Outline area on separate map'if needed to clarify proposed use. j ?. If previously under authorization Indicate: ~ a. Name of Holder b. Date Authorized c. Date Closed i 3. Describe any encumberances on the land, such as withdrawals, power projects, easements, rights-of-way, mining claims, leases, etc. Show on map provided. i. State approximate amount and kinds of timber to be cut, recommended stumpage prices, method of scaling; include recommendation on disposal of merchantable timber: (a) to holder at current damage appraisal Or (b) to others than holder under regular timber sale procedure. fa. Will proposed use conform to Forest Land and Resource Management Plant O Yes ❑ No b. Has an Environmental Assessment boon prepared? O Yes(Attach) ❑ No c. Has an Environmental Impact Statement(P.L.91-190,42 USC 4321) been prepared? O Yes(Attach) No (Note: If"No" is marked with an "X"in any of the above questions,explain In item 6 below.) _. S. Recommendations, Including any factors which might affect the granting of the authorization or future use of the land. • 7. List mandatory and optional clauses which should be made a part of this authorization(See FSM 2760). • 3. Fee recommendation (Describe here or on computation sheet attached). - - 3a. RECOMMEND Approval* or b. Signature (Sign in ink) - --.- - -- e. Title d. Date Disapprovers _. la. FINAL Approval* or b. Signature (Sign In Ink) - a Title d. Date Disapproval* elate one by lining It out. —�— L. - 'CPO : 1983 0 - 4191190er ' " ... _. Scout Energy Corp. Proposed Access Route Weld County #1-R Well NE'/aNE'/a-27-12n-58w Weld County, CO 1;E01.UG1(.:AL SUItVIEY . ) FOR USDA FOREST SERVICE USE .9640.-t g) '9A( go 'Willer Tena : i ^a '' 21 ,� ~'Water Tana ♦ " ( •j$ �ty l a;�6..tt j �, +^' ° � k is ,......,'"%/S--. 1 \ �Wala (0 52,00 We F1 F Y r, I /i .1 • t ; I / �.. " : a _ ...."..\e ,> > I .0 ;< ;' d 127 „ 28 „4 *i 1 ti; P i \ b T f 'h ` . ° iyltyaea as - i i 1 i 4 V'VLo Kj wi i� ..f .:-.:.N I 61, i'. I f k 1\ ^ .,,,, F * 4 i 1 a `fir F r` T I { a IJ{+� s , �- _ TT.TYYLY YT1Y LTxY TYYYYYY'•Y Tt ,y' a 0W \' !.11::::::::::t.1'. $ � ..� •.mow "w— E / 1 b FI , �' tl Carew " »° k l . � 1 3Q y#elk°',4..Yr,, .tre �, IF 33 /g'� .•-7N...... ..7,(...7•• ::::':::,•::::-.Y"':•••:.'.•:::::::li k Y �I }I. • V b It�..< t\ \ a _x, - c o U g = U N cc + s. �i t-- C 7�- L� =\ U — W L) ` -' O U Z � M x a a._ w3 x C6 �° z -rII } aI - . cz.., o ci E _ ' _4- `Y` f _ .. ._. . 4 -\•/\_..__. f. a 4 -- / DL/ iN i I � 4 / O _ /7 ,4—i G u ! zi O ,� a + 4j�` • -t) X -17 a. .1a c� + J 0° e s C V► 1 0. --I- -g r--- ,I,,. �Y CL c �n 15 F° 3_ t3 4 h o �� to d OG 1i z O C5 V ' "Poi uJn8 4A1 t� - h,y Scout Energy Corp. Cut & Fill Information Weld County #1-R Well NE'/eNE'/a-27-12n-58w Weld County The drillsite area is essentially flat, and no cutting or filling is anticipated in connection with the drilling and completion other than that necessary, if any, to level the drilling rig on site. Water and reserve pits will be dug in accordance with standard industry practice, with topsoil separated and replaced in its proper order at time of site restoration. Scout Energy Corp. Production Facility Layout Weld County #1-R Well NE'/aNE'/n-27-12n-58w Weld County I I 4--------------gas pipeline if needed flowline turnaround — s — separator wellhead & pumpjack w_ �_� berm --� -_ 300 l T_ 300 bbbbl wateroiltank tank L ' acme road t • { 5100 • • • nL :, B4 ~ f: •n: l s *t fSee detail above ' ` P T� : ' „ .�.` t • l * 4 I n �.. . � '' 9 }�. `` r 1 i !!. . ii L 11 _ ��� i , "•• • I . I t I e�»oopc sirrlk•a•. : ., , k , a f 415fl . t mq '- pan •ooeaew1000:e�a+sarsc' a � Y ., ¢9+ 1� f k'• Tssimats ` 1Ne11 } e Y 3 • ....4:. {III ' '�iwr..r .wwwi .1 i,�. i ` . .:, : S, _'1 i 4.L . MAY 14 '91 13:25 COLO.OIL & GAS COMM. RECGI Y El:/ STATE OP COLOMDO MAY 97 1991 R°«ara OIL AND GAS CONSERVATION COMNOSSION (A� 1, eNARTMtar 01 eAT1 1.4 RIIOORGY CY�0�1LI IIOCIEIAOVr.-nl7v gObiAN APPLICATION S A�(�j�}� FOR PERMIT TO DRILL, DEEPEN, OR REENTER AND OPERATE S.If tND1AN.ALLOmt m nit NAMI It nn°I"Is DRILL DEEPEN RE•ENTERCD I.UNIT ACM.IMINTWAR A nn Of MRµ on 1� .nu. O DTIM V CB Miwru O R/ARM OR UAL NAM WUL S.MON(NO. Ithi ip{SntY OPSMTOW Scout Energy Crop. 1 405) 81.4AuoRRaR P.O. Sox 1348 348-5486 q.nu)AND.00 • 1.oA wu.00AT CITY: Edmund STATE: OR zip. 73083 b LOCATION OI FALL IRgWII nano MaOY IINI in NOndaMni rah pµ}M moorri g.n.i Wildcat "ow 660' Tn. 660' PEL (SEVEN) I ICI mU4TR.114.1.R.ANO MiCIDTRIT''' M P11DNO/Iaa/aril (same) ' NI zmx3c47—I2N-58W, 6th P.M. 14 DInANCt.It 1.1$1714414 MIT.11014 ATIY OCCOMO II K. KONA 1040.AaOVR DIOUN O'moree RINI OR IF cduNN MI RADA. 1001'404&ONIVRKr MOP II.METANCE IEOM FROMM LEKATIOY TO NMRLIT U NO i6 NTH itPM O IN LOU is br10 TO nti COIL IL ORILL14o FAIT POPERY.'OR KASE RISC R 660' ,Alui I11 MARV O.N.IIM.111m^ IA OyECT1YL IOIMAnON 11.UISrANLE PROM rRop101R0 LO{.�Tro Ie ntAltitT WELL. It 110!0360 OEITM DRILLING.GOM.ON T "n" a OR OWED FOR.ON THIS S r R. n A n9n ESQ[LLYATW nI{SRw•RPM!GR M Ry I1,OMLLINO CON C'f0� IIIONE NO. ii.APPROX.DAYS WORA WIN.BART 5232 GR Gear Drilling Co. 623-4422 May 10, 1991 IS 14010/40 CASING AND CEMLNTINC IIOGRAM Nu OF nou IIII or tenet MtlDnr M 1001 urRw Mr* vmem nl IaMwT 12101 A Ai& 206 989 y fl annp• • 7 7/A" a1/4" in AAI1 A #.755 A. VIVI �T Se Berle■ 1413 IVRlACE OWNtt ALSO TIIC MINIMA.OWNEAP YES O NO SE PLEASE YILLIN AMROPRIATI If NOT,unlrn•frond m•u he on Ws at naps N*Say sponnon1 nu.N b lumnAN 1.00141 If MAIN IW.man RPM SUWON multi 01LR,NO, 77nZ2 • US Poreac Service band or security will be in place ORLR Na 33170 •In4CRIRE LEASE tY QTR QT11.KC-TWNINI.INT.. 31[1.0 NW 999Y9 Lease dated 8/8/90 recorded in Book 1273 under Rec. No. 2223778 from Weld County, Colorado to Gina M1 Schwartz covering the Nt."41 pgND2 NEIA-27-1214-SAW. IOW 00, .,— . m4.4.- �_ . MTV! William G. Crews 410NC0_-ornaY mtE Agent DATE May 1..._ 1901 s- . Thaw*.nn Irdne-0•.Tr, 11 1991 91 - 349 AMROYAL DATE MAY 1 4 1991 EY/IMnON 0411 SEP1414417 NO. TT -- /� �Y/J?t1IC K• _ La 6, Tn i, rnrentie WI MAY 14 1,991 APPROVED 1Y ai�J od R Cal Comm.Comm, CO NOMON$O/APIAOYAL II ANTI `//WO A.P.I. NUMBER � Sf rod dwri gacio,R/ ff.ru.n/ setamd mold 1 ii P 820' � �Fe Dl vitae Ssnir. V trb,cndo�o/ OS /2 a 7331 1 ,$"r0./K (. in tnatructiona On REr1nf Side sc/ pal e 02/ 76t JOrnr Purycl c i/A Qd ditton, 14b, atfcer YegairGAPlarr1• , (Ate 1 y Hello