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HomeMy WebLinkAbout952712.tiffAa2"bay36 2468536 8-1523 1,-722/20/95� PG 1 OF 45 Weld County CO Clerk Recorder RSC DOC 226.00 UNIT AGREEMENT AND PLAN OF UNITIZATION FOR THE DEVELOPMENT AND OPERATION OF THE LILLI (D -SAND) UNIT AREA COUNTY OF WELD STATE OF COLORADO Township 8 North, Range 58 West Section 1: Lot 4, SW/4NW/4, W/2SW/4 Section 2: ALL Section 3: ALL Section 4: ALL Section 5: ALL Section 6: ALL — LE 0/1,3, Section 7: ALL Section 8: ALL— L,5O1/3 Section 9: ALL Section 10: ALL Section 11: ALL Section 12: W/2NW/4, NW/4SW/4 Section 14: NW/4, W/2SW/4 Section 15: N/2, SE/4, E/2SW/4 Section 16: N/2N/2 Section 17: N/2N/2, SW/4NW/4 Section 18: NE/4, E/2NW/4, Lot 1 Township 8 North, Range 59 West Section 1: ALL Section 2: Lots 1, 2, S/2NE/4, SE/4 Section 11: E/2 Section 12: ALL Section 13: N/2N/2 Township 9 North, Range 58 West Section 32: S/2SW/4 Section 34: S/2 Section 35: 5/2 Township 9 North, Range 59 West Section 36: S/2SE/4 2468536 B-1523 P-724 12/20/95 05:00P PG 2 01 45 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 UNIT AGREEMENT 1 2 FOR THE DEVELOPMENT AND OPERATION 3 4 OF THE 5 6 LILLI (D -SAND) UNIT AREA 7 8 COUNTY OF WELD 9 I0 STATE OF COLORADO 11 12 THIS Agreement, entered into as of the 1st day of November 1995, by and 13 between the parties subscribing, ratifying, or consenting hereto, and herein referred to as the "parties 14 hereto". 15 16 RECITALS: 17 18 A. The parties hereto are the owners of working, royalty, surface or other oil and gas 19 interests in the Unit Area subject to this Agreement, with the purpose to conserve natural resources, 20 prevent waste, and secure other benefits obtainable through development and operation of the area 21 subject to this Agreement under the terms, conditions and limitations herein set forth. 22 23 B. The term "Working interest" as used herein shall mean the interests held in Native 24 Unitized Substances or in lands containing Native Unitized Substances by virtue of a lease, operating 25 Agreement, fee title, or otherwise, which is chargeable with and obligated to pay or bear all or a 26 portion of the costs of drilling, developing, producing, and operating the land under the unit or 27 cooperative Agreement. "Royalty Interest" as used herein shall mean a right to, or interest in, any 28 portion of the Native Unitized Substances or proceeds thereof other than Working interest. "Mineral 29 Owner" as used herein shall mean the owner of the mineral estate as it pertains to the Unitized 30 Formation for the purpose of gas storage. "Surface Owner" as used herein shall mean the owner of 31 the surface as it pertains to the Unitized Formation for the purpose of gas storage. The owner of oil 32 and gas rights that are free of lease or other instrument conveying the Working interest rights to 33 another shall be regarded as a Working interest Owner to the extent of a seven -eighth (7/8ths) 34 interest in and to such oil and gas rights, and as a Royalty Interest Owner to the extent of the 35 remaining one -eighth (1/8th) interest therein. 36 37 C. The Mineral Leasing Act of February 25, 1920, 41 Stat. 437, as amended 30 U.S.C., 38 Secs. 181 et seq., authorized Federal lessees and their representatives to unite with each other, or 39 jointly or separately with others, in collectively adopting and operating a cooperative or unit plan of 40 development or operation of any oil or gas pool, field or like area, or any pats thereof for the 41 purposes of more properly conserving the natural resources thereof whenever determined and 42 certified by the Secretary of the Interior of the United States, hereinafter refer ed to as "Secretary", 43 to be necessary or advisable in the public interest. 44 45 D. Colorado Revised Statute Section 34-60-118, et seq. empowers the Oil and Gas 46 Conservation Commission, State of Colorado, hereinafter tefiaied to as the "Commission", upon 47 application, to determine the need for and make orders providing for the operation as a unit of one or 48 more pools, or parts thereof , in a field after approval of Eighty percent (80%) of the parties 49 involved, which order shall be binding on all parties in said Unit Area. 50 51 NOW, THEREFORE, in consideration of the covenants and agreements herein contained, 52 the parties hereto commit to this Agreement their respective interests in the below -defined Unit Area, 53 and agree severally among themselves as follows: 54 55 1. ENABLING ACT AND REGULATIONS. The Mineral Leasing Act of February 56 25, 1920, as amended, supra, and all valid„ pertinent regulations including operating and unit plan 57 regulations, heretofore issued thereunder or valid, pertinent, and reasonable regulations hereafter S8 issued thereunder are accepted and made a part of this Agreement as to Federal Lands, provided 59 such regulations are not inconsistent with the terms of this Agreement; and as to non -Federal Lands, 60 61 2468536 B-1523 P-724 12/20/95 05:00P PG 3 OF 45 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 the ail and gas operating regulations in effect as of the effective date hereof or the laws of the State of Colorado are hereby accepted and made a part of this Agreement. 2. UNIT AREA. The area specified on the plat attached hereto marked Exhibit "A" is hereby designated and recognized as constituting the Unit Area containing 11,430.74 acres, more or less. Exhibit "A" shows, in addition to the boundary of the Unit Area, the boundaries and identity of tracts in said area to the extent known to the Unit Operator. Exhibit A-1" reflects unit Tract numbers as well as the gross acres and legal description of each unit Tract. Exhibit "B" attached hereto is a schedule showing to the extent known to the Unit Operator the percentage and kind of ownership of oil and gas interests in all tracts in the Unit Area. Exhibit "B-1" attached hereto is a schedule showing a summary by owner of the percentage and kind of ownership of oil and gas interests in all tracts in the Unit Area. Exhibit "C" attached hereto contains a schedule showing the percentage of participation credited to each Tract in the Unit Area for recovery and production of Native Unitized Substances, based upon a presumed one hundred percent (100%) commitment. Exhibit "D" attached hereto contains a schedule showing the percentage of participation credited to each Tract in the Unit Area for storage of non -Native Unitized Substances, based upon a presumed one hundred percent (100%) commitment. Exhibit "D-1" attached hereto contains a schedule showing the percentage of participation credited to each Mineral Owner in the Unit Area for storage of non -Native Unitized Substances, based upon a presumed one hundred percent (100%) commitment. Exhibit "D-2" attached hereto contains a schedule listing the Surface Owners by Tract and the total acres in the Unit Area for storage of non -Native Unitized Substances, based upon a presumed one hundred percent (100%) commitment. (Tract means each parcel of land described as such and given a Tract Number in Exhibit "B".) The corresponding Exhibits" shall be revised by the Unit Operator whenever changes in the Unit Area render such revisions necessary, or when requested by the BLM Authorized Officer, hereinafter referred to as "AO". In such case, not less than four (4) copies of the revised exhibits shall be filed with the AO. A unit boundary and unit participation established by a certified surveyor based upon knowledge of an impending government resurvey is acceptable; however, if the government resurvey indicates the need for boundary and unit participation revision, new corresponding Exhibits will be required. 3. EXPANSION OF UNIT AREA. Any enlargement of the Unit Area shall require approval by the AO, and shall be in accordance with the provisions of Colorado Statutes. The Unit Area may, with the approval of the AO, be expanded to include therein any additional lands whatever such expansion is necessary or advisable to conform with the purposes of this Agreement. Subject to such approval of the AO any such expansion may be accomplished by the Unit Operator negotiating an Agreement or Agreements with the owners of such lands fixing the tract participation of each tract and providing for the commitment of the interest of such owners to this Agreement and to the Unit Operating Agreement, the Unit Operator acting on behalf of the Working interest owners collectively after having been duly authorized by them as provided for in the Unit Operating Agreement. Whenever the Unit Area is enlarged so as to admit additional land qualified for participation, the corresponding Exhibits, shall be revised as set forth in Section 12, Participation and Allocation of Production, and Section 13, Gas Storage Operations. Any such expansion shall be effected in the following manner. (a) Unit Operator, on its own motion, after preliminary concurrence by the AO, or on demand of the AO, shall prepare a notice of proposed expansion describing the contemplated changes in the boundaries of the Unit Area, the reasons therefore, and the proposed effective date thereof; preferably the first day of the month subsequent to the date of notice. (b) Said notice shall be delivered to proper AO and copies thereof mailed to the last known address of each Working interest Owner, lessee, and lessor whose interests are affected, advising that thirty (30) days will be allowed for submission to the Unit Operator of any objections. (c) Upon expiration of the thirty (30) day period provided in the preceding item (b) hereof, Unit Operator shall file with the AO evidence of mailing of the notice of expansion and a copy of any objections thereto which have been filed with the Unit Operator, together with an application and appropriate joinder with sufficient number of copies for approval of such expansion. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 2468536 B-1523 P-724 12/20/95 05:00P PG 4 OF 45 l (d) After due consideration of all pertinent information, the expansion shall, upon 1 2 approval by the AO, become effective as of the date prescribed in the notice thereof or such other 2 3 appropriate date as determined by the AO. 3 4 4 5 4. UNITIZED LAND AND NATIVE UNITIZED SUBSTANCES. All land 5 6 committed to this Agreement provided in Section 5, Tracts Qualified for Participation, as to the 6 7 Unitized Formation defined immediately below, shall constitute land referred to herein as "Unitized 7 8 Land" or "land subject to this Agreement". All oil and gas in and produced from the Unitized 8 9 Formation is unitized under the terms of this Agreement and herein is called "Unitized Substances"; 9 10 and Unitized Substances expressly excludes all gas, water or other substances injected into the 10 11 Unitized Formation to enhance recovery of Unitized Substances or for storage purposes. 11 12 12 13 The Unitized Formation shall mean the "D -Sand formation as identified by the Dual Induction 13 14 log man in the Federal Sooner 4-9 well located in the NW/4NW/4 of Section 9, Township 8 North, 14 15 Range 58 West, Weld County, Colorado, with the top of the Unitized Formation being found at a 15 16 depth of 6,293 feet below the surface (-1,590 subsea) and the base of the Unitized Formation being 16 17 found at a depth of 6,323 feet below the surface( -1,620 subsea) or the stratigraphic equivalent 17 18 18 thereto. 19 19 20 5. TRACTS QUALIFIED FOR PARTICIPATION. Inasmuch as the objective of 20 21 this Agreement is to have lands in the Unit Area operated and entitled to participation under the 21 22 terms hereof no joinder shall be considered a commitment to this Agreement unless the Tract 22 23 involved is qualified under this Section. On or after the effective date hereof; the Tracts within the 23 24 Unit Area which shall be entitled to participation in the production of Native Unitized Substances 24 25 therefrom shall be those Tracts within the Unit Area, more particularly described in Exhibit "B", that 25 26 are qualified as follows: (for the purposes of this Section, the record interest shall replace the Royalty 26 27 Interest as to Federal Land): 27 28 28 29 (a) Each Tract as to which Working interest Owners owning one hundred percent 29 30 (100%) of the Working interest have signed or ratified this Agreement and the Unit Operating 30 31 Agreement and Royalty Owners owning eighty percent (80%) or more of the Royalty Interest 31 32 created by the basic leases have signed or ratified this Agreement. 32 33 33 34 (b) Each Tract as to which Working interest Owners owning one hundred percent 34 35 (100%) of the Working interest have signed or ratified this Agreement and the Unit Operating 35 36 Agreement and Royalty Owners owning less than eighty percent (80%) of the Royalty Interests 36 37 created by the basic leases have signed or ratified this Agreement, as to which (1) all Working 37 38 interest Owners in such Tract join in a request for inclusion of such Tract in Unit Participation upon 38 39 the basis of such commitment status, and fiuther, as to which (2) eighty percent (80%) or more of 39 40 the combined voting interest of Working interest Owners in all Tracts which meet the requirements 40 41 of subsection 5(a) vote in favor of the acceptance of such Tract as qualified. For the purpose of this 41 42 Subsection 5(b), the voting interest of each Working interest Owner shall be equal to the ratio 42 43 (expressed in percentage) which the total of such Working interest owners in all Tracts which qualify 43 44 under said Subsection 5(a), as such percentages are shown on Exhibit "C". 44 45 45 46 (c) Each Tract as to which Working Interest Owners owning less than one hundred 46 47 percent (100%) of the Working interest have signed or ratified this Agreement and the Unit 47 48 Operating Agreement, regardless of the percentage of Royalty Interest therein that is committed 48 49 hereto, and as to which (1) the Working interest Owner who operates the Tract and all of the other 49 50 subscribing Working interest Owner in such Tract have joined in a request for inclusion of such Tract 50 51 in Unit Participation upon the basis of such commitment status and have tendered and executed and 51 52 delivered an indemnity Agreement, indemnifying and agreeing to hold the owners of the Working 52 53 interest in the other qualified Tracts harmless from and against any and all claims and demands that 53 54 may be made by the non -subscribing Working interest Owners in such Tract on account of the 54 55 inclusion of the same Unit Participation, and firrther, as to which (2) eighty percent (80%) or more of 55 56 the combined voting interest of the Working interest Owners in all Tracts which meet the 56 57 requirements of Subsections 5(a) and 5(b) above vote in favor of the inclusion of such Tract. For the 57 58 purpose of this Subsection 5(c), the voting interest of each Working interest Owner shall be equal to 58 59 the ratio (expressed in percentage) which the total of such Working interest Owner's percentage 59 60 participation attributed to Tracts which qualify under Subsections 5(a) and 5(b) bears to the total 60 61 61 2468536 8-1523 P-724 12/20/95 05:00P PG 5 OP 45 1 percentage of all Working interest Owners attributed to all Tracts which qualify under Subsections 1 2 5(a) and 5(b), as such percentages are set out in Exhibit "C". 2 3 3 4 Notwithstanding anything in this Section to the contrary, all Tracts within the Unit Area shall 4 5 be deemed to be qualified for participation and be deemed committed if this Agreement and the Unit 5 6 Operating Agreement are duly approved as the Plan of Unitization and Operating Plan by order of 6 7 the Colorado Oil and Gas Conservation Commission ("Commission"), and the AO as to the Unit 7 8 Agreement, subject to any revisions pursuant to this Agreement. 8 9 9 10 6. UNIT OPERATOR. Walsh Production, Inc., is hereby designated as Unit Operator 10 11 and by signature hereto as Unit Operator agrees and consents to accept the duties and obligations of 11 12 the Unit Operator for the development and production of Native Unitized Substances and gas 12 13 storage operations as herein provided. Whenever reference is made herein to the Unit Operator, 13 14 such reference means the Unit Operator acting in that capacity and as an owner of interest in Native 14 15 Unitized Substances and the term "Working interest Owner" when used herein shall include or refer 15 16 to Unit Operator as the owner of a Working interest when such an Interest is owned by it. 16 17 17 18 7. RESIGNATION OR REMOVAL OF UNIT OPERATOR Unit Operator shall 18 19 have the right to resign at any time, but such resignation shall not become effective so as to release 19 20 Unit Operator from the duties and obligations of Unit Operator and terminate that Operator's rights 20 21 as such for a period of six (6) months after notice of intention to resign has been served by Unit 21 22 Operator on all Working interest Owners and the AO, unless otherwise required by the AO, unless a 22 23 new Unit Operator shall have been selected and approved and shall have taken over and assumed the 23 24 duties and obligations of Unit Operator prior to the expiration of said period. 24 25 25 26 The resignation of Unit Operator shall not release the Unit Operator from any liability for 26 27 default by it hereunder occurring prior to the effective date of its resignation. 27 28 28 29 The Unit Operator may, upon default or failure in the performance of its duties or obligations 29 30 hereunder, be subject to removal by an affirmative vote of the Working Interest Owners of at least 30 31 ninety percent (90%) of the voting interest remaining after excluding the voting interest of the Unit 31 32 Operator. Such removal shall be effective upon notice thereof to the Authorized Officer. 32 33 33 34 In all instances of resignation or removal, until a successor Unit Operator is selected and 34 35 approved as hereinafter provided, the Working interest owners shall be jointly responsible for 35 36 performance of the duties of Unit Operator, and shall, not later than 30 days before such resignation 36 37 or removal becomes effective, appoint a common agent to represent them in any action to be taken 37 38 38 hereunder. 39 39 40 The resignation or removal of Unit Operator under this Agreement shall not terminate its 40 41 right, title or interest as the owner of Working interest or other interest in Native Unitized 41 42 Substances, but upon the resignation or removal of the Unit Operator becoming effective, such Unit 42 43 Operator shall deliver possession of all wells, equipment, materials, and appurtenances used in 43 44 conducting the unit operations to the new duly qualified successor Unit Operator or to the common 44 45 agent if no such new Unit Operator is elected to be used for the purpose of conducting unit 45 46 operations hereunder. Nothing herein shall be construed as authorizing removal of any material, 46 47 equipment, or appurtenances needed for the preservation of any wells. 47 48 48 49 8. SUCCESSOR UNIT OPERATOR. Whenever the Unit Operator shall tender his or 49 50 its resignation as Unit Operator or shall be removed as hereinabove provided, or a change of Unit 50 51 Operator is negotiated by the Working Interest Owners, a successor Unit Operator shall be selected 51 52 by Working Interest Owners voting according to their respective tract participation in all unitized 52 53 land by a majority vote; provided, that, if a majority but less than seventy-five percent (75%) of the 53 54 Working Interests qualified to vote are owned by one party to this Agreement, a concurring vote of 54 55 one or more additional Working Interest Owners shall be required to select a New Operator. Such 55 56 56 selection shall not become effective until: 57 57 58 (a) a Unit Operator so selected shall accept in writing the duties and responsibilities of 58 59 59 Unit Operator; and 60 60 61 (b) the selection shall have been approved by the Authorized Officer. 61 A 2468536 B-1523 P-724 12/20/95 05:00P PG 6 OF 45 55 The UnitOperator shall have the 55 56 right to inject into the Unitized Formation any substances 57 for enhanced recovery purposes in accordance with a plan of operation approved by the AO, 56 58 including the tight to drill and maintain injection wells on the Unitized Land and completed in the 57 59 Unitized Formation for said purpose, and the parties hereto, to the extent of their rights and interests, 58 60 hereby grant to the Unit Operator the right to use as much of the surface of the land within the Unit 59 61 Area as may be reasonably necessary for the operation and development of the Unit Area hereunder, 60 subject to reasonable compensation for actual damages. Unit Operator shall have free use of water 61 1 1 2 If no successor Unit Operator is selected and qualified as herein provided, the Authorized 2 3 Officer at his election may declare this Unit Agreement terminated. 3 4 4 5 9. ACCOUNTING PROVISIONS AND UNIT OPERATING AGREEMENT. If 5 6 the Unit Operator is not the sole owner of Working interest, costs and expenses incurred by the Unit 6 7 Operator in conducting Unit Operations hereunder shall be paid and apportioned among and borne 7 8 by the owners of Working interests, all in accordance with the Agreement or Agreements, whether 8 9 one or more, separately or collectively, entered into by and between the Unit Operator and the 9 10 owners of Working interests. Any Agreement or Agreements, whether one or more entered into 10 11 between the Working interest Owners and the Unit Operator as provided in this Section are herein 11 12 referred to as the "Unit Operating Agreement". 12 13 13 14 Such Unit Operating Agreement shall also set forth such other rights and obligations as 14 15 between Unit Operator and the Working interest Owners as may be agreed upon by the Unit 15 16 Operator and the Working interest Owners; however, no such Unit Operating Agreement shall be 16 17 deemed either to modify any of the terms and conditions of this Agreement or to relieve the Unit 17 18 Operator of any right or obligation established under this Agreement, and in case of any 18 19 inconsistency or conflict between this Agreement and Unit Operating Agreement, this Unit 19 20 Agreement shall prevail. Two (2) true copies of any Unit Operating Agreement executed pursuant 20 21 to this Section shall be filed with the AO prior to approval of this Unit Agreement, and thereafter 21 22 promptly after any subsequent revision or amendment. 22 23 23 24 10. RIGHTS AND OBLIGATIONS OF UNIT OPERATOR Except as otherwise 24 25 specifically provided herein, the exclusive right, privilege, and duty of exercising any and all rights of 25 26 the patties hereto, including surface rights, which are necessary or convenient for prospecting for, 26 27 producing, storing, allocating, and distributing the Native Unitized Substances are hereby delegated 27 28 to and shall be exercised by the Unit Operator as herein provided. Acceptable evidence of title to 28 29 said rights shall be deposited with said Unit Operator and, together with this Agreement, shall 29 30 constitute and define the rights, privileges, and obligations of Unit Operator. Nothing herein, 30 31 however, shall be construed to transfer title to any land or to any lease or operating Agreement, it 31 32 being understood that under this Agreement the Unit Operator, in its capacity as Unit Operator, shall 32 33 exercise the rights of possession and use vested in the parties hereto 33 34 specified. only for the purposes herein 34 35 35 36 11. PLAN OF OPERATION. It is recog nized and agreed by the patties hereto that the 36 37 Unit Area is developed and productive, and only such drilling as is incidental to an enhanced 37 38 recovery program or gas storage operations will be undertake n, including such as is necessary for the 38 39 injection and withdrawal of gas in connection therewith. 39 40 40 41 Inasmuch as the primary purpose of this Agreement is to permit the institution and 41 42 consummation of enhanced recovery program 43P gram for the maximum economic production of Native 42 44Unitized Substances consistent with good engineering and conservation practices, and to permit for 43 5 gas storage operations, Unit Operator, concurrently with the filing of this Unit Agreement for final 44 46 approval, shall submit to the AO for approval a plan of operation for the Unitized Land, and upon 45 approval thereof by the AO, such plan shall constitute the future operating obligations of the Unit 46 47 Operator under this Unit 47 48 Agreement for the period specified therein. Thereafter, from time to time, 49 as determined by the AO, before the expiration of any existing plan, the Unit Operator shall submit 48 for like approval a plan for an additionalspecified period of49 50 operation. These subsequent plans 51 should normally be filed on a calendar year basis not later than Much 1, each year. Said plan or 50 52 plans shall be supplemented when necessary to meet changed conditions, or to protect the interests 51 of allparties to this Unit Agreement.52 53 Reasonable diligence, as determined by the AO, shall be 54 exercised in complying with the obligations of any approved plan of operation. 53 54 2468536 B-1523 P-724 12/20/95 05:00P PG 7 OF 45 1 from the unitized Land for operations hereunder and for operations on adjacent lands as may be 1 2 reasonably necessary for the operation and development of the Unit Area hereunder, except water 2 3 from surface owner's and Royalty Owners, fresh water wells, private lakes, ponds, or irrigation 3 4 ditches. 4 5 5 6 The Unit Operator, and each Working Interest Owner, in the proportions specified herein, 6 7 shall have the right to inject into the Unitized Formation and withdraw from the Unitized Formation 7 8 natural gas (including non -Native Unitized Substances) for enhanced recovery operations and gas 8 9 storage operations in accordance with a plan of operation approved by the AO, including the right of 9 10 Unit Operator to drill and maintain injection and withdrawal wells on the Unitized Land and 10 11 completed in the Unitized Formation for said purposes, and the patties hereto, to the extent of their 11 12 rights and interests, hereby grant to the Unit Operator the right to use as much of the surface of the 12 13 land within the Unit Area as may be reasonably necessary for the operation and development of the 13 14 Unit Area hereunder subject to the payment of reasonable compensation for actual damages thereto. 14 15 15 16 12. PARTICIPATION AND ALLOCATION OF PRODUCTION. Beginning at 7:00 16 17 a.m., on the effective date hereof the Tract Participation of each Tract shall be based upon the 17 18 following factors and formula: 18 19 19 20 Surface Acres 5% 20 21 Well Count 5% 21 22 Pore Volume 10% 22 23 Current Oil Production 20% 23 24 Current Gas Production 20% 24 25 Cumulative Oil Production 5% 25 26 Cumulative Gas Production 5% 26 27 Remaining Primary Oil 15% 27 28 Remaining Primary Gas 15% 28 29 100% 29 30 30 31 Exhibit "C" attached hereto lists the tracts within the Unit Area and the allocation of 31 32 percentage of each such tract in the recovery of Native Unitized Substances. 32 33 33 34 With respect to gas cycled, gas injected and withdrawn during secondary recovery 34 35 operations, all liquefiable hydrocarbons recovered from the Unitized Formation shall be considered 35 36 as Native Unitized Substances. 36 37 37 38 The allocations on Exhibit "C" represent the Tract Participation to which such Tract is 38 39 entided if all tracts are committed hereto as of the effective date of this Agreement. 39 40 40 41 Promptly after approval of the Unit Agreement, if all Tracts are not qualified hereto, Unit 41 42 Operator shall revise Exhibit "C" to show the Tracts qualified for participation under this Agreement 42 43 by setting forth opposite each Tract a revised Tract Participation therefore, which shall be calculated 43 44 by using the same Tract factors and formula which were used to arrive at the Tract Participation of 44 45 each Tract as set out in the original Exhibits, but applying the same only to those Tracts which are 45 46 qualified for participation effective as of the effective date of this Unit Agreement. Said revised 46 47 Exhibits shall be subject to approval by the AO and shall be effective as of the date of this 47 48 Agreement. 48 49 49 50 If; alter the effective date of this Agreement, any Tract or Tracts are subsequently committed 50 51 hereto and qualified because of expansion of the Unit Area under Section 3, Expansion of Unit Area, 51 52 or aay Tract or Tracts are subsequently qualified under the provisions of Section 5, Tracts Qualified 52 53 for participation, and Section 32, Subsequent Joinder, or if any Tract is limited from the Unit 53 54 Agreement as provided in Section 31, Loss of Title, the schedule of participation as shown in 54 55 Exhibits "C" and "D", shall be revised by the Unit Operator to show the new Tract Participation of 55 56 all the then qualified Tracts; and the revised Exhibits, upon approval by the AO, shall govern the 56 57 Allocation of Production from the effective date thereof until a new schedule is so approved. In any 57 58 such revised Exhibit, pursuant to this paragraph, the Tract Participation of the retained previously 58 59 qualified Tracts shall remain in the same ratio one to the other. 59 60 60 61 61 6 2468536 8-1523 P-724 12/20/95 05:00P PG 8 OF 45 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 On the effective date of this Agreement and thereafter, all Native Unitized Substances 1 produced hereunder (except any part thereof used in conformity with good operating practices for 2 drilling, operating, camp, and other production or development purposes for enhanced recovery 3 operations in accordance with plan of operation approved by the AO or unavoidably lost) shall be 4 deemed to be produced from the several Tracts or Unitized Land, and for the purpose of determining 5 any benefits accruing under this Agreement, each such Tract shall have allocated to it the percentage 6 of said production equal to its Tract Participation effective hereunder during the respective period 7 such Native Unitized Substances were produced. 8 9 The amount of Native Unitized Substances allocated to each Tract shall be deemed to be 10 produced from such Tract irrespective of the location of the wells from which the same produced 11 and regardless of depletion of wells or Tracts. In the absence of a controlling contract or Agreement 12 to the contrary, when two or more leases or part or parts thereof have been combined into a single 13 Tract, the percentage participation assigned to such Tract shall for all purposes be divided among the 14 separate leases or part or parts thereof which have been put into such Tract, in proportion to the 15 number of surface acres contained in said Tract. For unleased Federal acreage, the Unit Operator 16 must set aside all fiords attributable to unleased Federal acreage in an interest earning escrow or trust 17 account. 18 19 13. GAS STORAGE OPERATIONS. It is agreed that the Unit Operator shall be 20 allowed hereunder to establish a "gas storage reservoir" comprising the Unitized Formation under 21 the lands shown on Exhibit "A" hereto. The Unit Operator proposes to utilize the said gas storage 22 reservoir for the underground storage of natural gas, whether or not gas injected for the purposes of 23 gas storage is produced from lands subject to this agreement. 24 25 No gas storage operations shall be conducted prior to the consent, approval or certification 26 of the Federal Energy Regulatory Commission (FERC), or other authorizing agency, allowing gas 27 storage operations. The Unit Operator shall provided notice of such approval to the BLM and the 28 State of Colorado prior to conducting any storage operations, and shall provide an updated Plan of 29 Operations to the AO detailing said storage operations. 30 31 Upon approval of the authorizing agencies, this date shall be established whereby all gas 32 injection thereafter shall be considered storage gas and subject to the provisions of this Section 13. 33 34 For the purposes of this agreement, unless directed otherwise by the AO and/or by judicial 35 order, the fits related to gas storage operations shall be allocated to the Mineral Owners of the 36 Unitized Formation under the lands shown on Exhibit "A" hereto. Unit Operator agrees to pay to the 37 Mineral Interest Owners an injection fee of $.0028 Mcf and a withdrawal fee of S.0112 per Mcf of all 38 gas injected into the Unitized Formation that is deemed Storage Gas. Allocation of the fees of 39 injected and withdrawn gas shall be based upon the following factors and formula: 40 41 42 Gross Tract Pore Volume 75% 43 Surface Acres 25% 44 100% 45 46 Payment of the injection and withdrawal fees in excess of S25.00 shall be paid within thirty 47 (30) days after each calendar year quarter. All accounts which represent an amount of less than 48 $25.00 will be paid on an annual basis. In addition, Unit Operator further agrees that an annual 49 storage fee will be paid to both the mineral owners and the non -Federal Surface Owners of the 50 surface area under the lands shown on Exhibit "A" hereto. The annual storage fee will be S1.12 per 51 net mineral acre, or fraction hlametaTrd by the mineral owners, and a payment of $1.12 per net 52 surface acre owned by the/Suurfaace olyners, in the Unit Area. The annual storage fees will become 53 due and payable not later than thirty (30) days after Unit Operator first receives fees for injection of 54 gas for storage purposes and shall be paid on or prior to the anniversary date established thereby for 55 each year injection fees are received by the Unit Operator. 56 57 Liquid hydrocarbons recovered during the processing of natural gas subsequent to the 58 commencement of storage operations shall be considered to be Native Unitized Substances and 59 royalties will be paid according to the formula set forth in Section 12, and allocated in accordance 60 with Exhibit "C" of this agreement. 61 2468536 B-1523 P-724 12/20/95 05:00P PG 9 OF 45 l 1 2 Upon approval to conduct storage operations, no remaining native methane gas would be 2 3 deemed recoverable. When storage operations cease and all non-native gas is removed, then any gas 3 4 recovered thereafter would be deemed native and royalty will be due on the sale of that gas. 4 5 5 6 Notwithstanding anything to the contrary contained herein, for the purposes of this 6 7 agreement the owners of both the mineral and surface estates subject to this agreement shall be 7 8 compensated for the storage of gas as provided for in this Section 13. In the event a court having 8 9 jurisdiction over this matter rules to the contrary, then from that date forward allocation of gas 9 10 storage fees shall be tendered to those parties as a result of the court's ruling. No adjustment will be 10 I made for fees paid prior to that date. 11 12 12 I3 The amount of fees set out in this Section 13, shall be renegotiated with the AO at the end of 13 14 five years from the effective date of consent, approval or certification of the Federal Energy 14 15 Regulatory Commission (FERC), or other authorizing agency. At the end of each successive five 15 16 year period that this agreement remains in effect, the amount of injection, withdrawal and storage 16 17 fees shall be renegotiated with the AO. At any point while this agreement is in effect the fees for 17 18 injection, withdrawal and storage are revised as a result of renegotiation with the AO, the Unit 18 19 Operator agrees to pay to the mineral and surface owners in accordance with this Section 13, the 19 20 newly negotiated rates or the rates then in effect, whichever is the higher. 20 21 21 22 14. NATIVE GAS. Any remaining Native Gas will be recovered through liquid recovery 22 23 processing. Fuel usage for the operation will be calculated and/or metered and subtracted from the 23 24 remaining native methane gas on a quarterly basis. Continued cycling of native and non-native 24 25 methane gas would result is additional Natural Gas liquids (NGL) recovery until no native methane 25 26 exists. Fuel usage for the continued cycling operation after all native gas has been recovered or used, 26 27 shall he subtracted from the non-native methane gas. The working interest owners committed hereto 27 28 shall bear all costs associated with the usage of non-native methane gas. 28 29 29 30 The value of the native gas will be deemed to be recovered proportionately in accordance 30 31 with the formula found in Section 12, and reflected on Exhibit "C" hereof All liquefiable 31 32 hydrocarbons recovered from the Unitized Formation shall be considered as native Unitized 32 33 Substances and shall be allocated in accordance with Exhibit "C" of this Agreement. The value 33 34 would be their proportionate share of the products sold. 34 35 35 36 Unless otherwise directed by the AO, all payments due the United States provided for herein, 36 37 shall be paid to the order of the United States Minerals Management Service, Royalty Management 37 38 Program, P. O. Box 5810, Denver, Colorado 80217-5810. 38 39 39 40 15. ROYALTY SETTLEMENT. Settlement for Royalty Interest shall be made by the 40 41 operator responsm"ble, therefore, under existing contracts, laws, and regulations on or before the last 41 42 day of each month for oil included within the Native Unitized Substances produced during the 42 43 preceding calendar month and on or before the last day of each month for gas included within the 43 44 Native Unitized Substances produced during the second preceding calendar month; provided, 44 45 however, that nothing herein contained shall operate to relieve the responsible parties of any land 45 46 from their respective lease obligations for the payment of any royalties due under their leases. The 46 47 oil and gas leases committed hereto as to the lands involved as well as unit or other agreements 47 48 which are affected are hereby modified to the extent that no royalties shall accrue and be payable 48 49 thereunder on any stored gas removed from the unitized formation pursuant to this Agreement. 49 50 50 51 If gas obtained from lands or formations not subject to this Agreement is introduced into the 51 52 Unitized Formation hereunder for use in repressuring, stimulation or production, increasing ultimate 52 53 recovery or gas storage operations, which shall be in conformity with a plan first approved by the 53 54 AO, a like amount of gas less appropriate deduction for loss or depletion from any cause, may be 54 55 withdrawn from the Unitized Formation, royalty free as to dry gas, but not as to the products 55 56 extracted therefrom; provided, that such withdrawal shall be at such time as may be provided in the 56 57 approved plan of operations or as may otherwise be consented to by the AO as conforming to good 57 58 petroleum engineering practice; and provided further that such right of withdrawal shall terminate on 58 59 the termination of this Unit Agreement. 59 60 60 61 61 2468536 B-1523 P-724 12/20/95 05:00P PG 10 OF 45 3 1 i 5 7 3 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 14 15 46 47 48 49 50 51 52 53 54 55 56 57 58 59 SO 51 If natural gasoline, liquid petroleum gas fractions, or other liquid hydrocarbon substances (herein collectively called "LPGS") which were not extracted from gas produced from the Unitized Formation and upon which royalty waspaid at the time of production are injected in the Unitized Formation, which shall be in conformity with a plan of operation first approved by the AO, Working interest Owners shall be entitled to recover, royalty free, part or all of such LPGS pursuant to such conditions and formulas as may be prescribed or approved by the AO. Royalty due to the United States shall be computed as provided in the Federal operating regulations in 30 CFR Sec. 201-209and paid in value or delivered in kind as to all Native Unitized Substances on the basis of the amounts hereof allocated to Unitized Federal Land as provided herein as to the rates specified in the respective Federal leases, or at such lower rates as may be authorized by law or regulation; provided, that for such leases on which the royalty rate depends on the daily average production per -well, said average production shall be determined in accordance with the operating regulations as though the Unitized Lands were a single consolidated lease. As to non -Federal Lands, any royalty or other payment which varies under the terms of the instrument creating it, according to actual production from a Tract, or according to the capabilities of wells located thereof to produce, shall, on or after the effective date, be computed upon that portion of the Native Unitized Substances allocated to the particular Tract and not upon the actual production of oil and gas from the Tract or the capability of the well(s) thereon to produce. Any virgin or original oil and/or gas subsequently discovered in other formations within the Unit Area shall be produced only under the terms and conditions of the respective oil and gas leases, unit agreement, or other agreements covering such formation within the Unit Area. 16. RENTAL SETTLEMENT. Rental or minimum royalties, due on leases committed hereto shall be paid by parties responsible therefore, under existing contracts, laws, and regulations, provided that nothing herein contained shall operate to relieve the responsible parties of any land from their respective lease obligations for the payment of any rental or minimum royalty in lieu thereof due under their leases. Rental and minimum royalty for lands of the United States subject to this Agreement shall be paid at the rate specified in the respective leases from the United States unless such rental or minimum royalty is waived, suspended, or reduced by law or by approval of the Secretary or his duly authorized representative. 17. CONSERVATION. Operations hereunder and production of Native Unitized Substances shall be conducted to provide for the most economical and efficient recovery of said substances without waste, as defined by or pursuant to State or Federal law or regulation. 18. DRAINAGE. The Unit Operator shall take appropriate and adequate measures to prevent drainage of Native Unitized Substances from Unitized Land by wells on land not subject to this Agreement, or with prior consent of the Authorized Officer, pursuant to applicable regulations pay a fair and reasonable compensatory royalty as determined by the Authorized officer. in the event Compensatory royalty is so paid, it shall be treated in the same manner as Unitized Substances. 19. GAUGE OF MERCHANTABLE OIL. Unit Operator shall make proper and timely gauge of all leases and other tanks within the Unit Area and associated with the operation of Unitized Land in order to ascertain the amount of merchantable oil above the pipeline connections in such tanks at 7:00 a.m. on the effective date hereof. All such oil shall be and remain the property of the parties entitled thereto the same as if the Unit has not been formed and such parties shall promptly remove said oil from said tanks. Any such oil not so removed shall be sold by Unit Operator for the account of parties entitledthereto, subject to the payment of all royalties, overriding royalties, production payments, and all other payments under the terms and provisions of the applicable lease, leases, or other contracts. All stored gas shall be measured when injected into and withdrawn from storage, and a record thereof shall be kept. Unit Operator agrees to render to the authorized officer within thirty (30) days after each calendar year quarter, a statement certified by Unit Operator showing the total amount and But content of gas injected into and withdrawn from said gas storage formation during that preceding calendar year quarter. The amount of gas reported as injected and withdrawn each quarter shall be computed at a standard pressure of 14.73 pounds per square inch absolute and a standard temperature of 60 degrees Fahrenheit, regardless of the pressure and temperature at which a 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 2468536 B-1523 P-724 12/20/95 05:00P PG 11 OF 45 1 the gas was actually measured. The statements herein required shall be filed in duplicate with the 1 2 authorized officer. 2 3 3 4 20. LEASES AND CONTRACTS CONFORMED AND EXTENDED. The terms 4 5 and conditions, and provisions of all leases, subleases, and other contracts relating to exploration, 5 6 drilling, development, or operation for oil or gas on lands committed to this Agreement are hereby 6 7 expressly modified and amended to the extent necessary to make the same conform to the provisions 7 8 hereof but otherwise to remain in full force and effect; and the parties hereof by this duly authorized 8 9 representative, do hereby establish, alter, change, or revoke the drilling, producing, rental, minimum 9 10 royalty, and royalty requirements of Federal leases committed hereto and the regulations in respect 10 11 thereto to conform said requirements to the provisions of this Agreement and, without limiting the 11 12 generality of the foregoing, all leases, subleases, and contracts are particularly modified in 12 13 accordance with the following: 13 14 14 15 (a) The development and operation of lands to this Agreement, under the terms hereo$ 15 16 shall be deemed full performance of all obligations for development and operation with respect to 16 17 each and every part or separately owned Tract subject to this Agreement, regardless of whether there 17 18 is any development of any particular part or Tract of the Unitized Land, notwithstanding anything to 18 19 the contrary in any lease, operating Agreement, or other contract by and between the parties hereto, 19 20 or their respective predecessors in interest, or any of them. 20 21 21 22 (b) Drilling, producing and/or gas storage operations performed hereunder upon any 22 23 tract of Unitized Land will be accepted and deemed to be performed upon and for the benefit of each 23 24 and every tract of Unitized Land, and no lease shall be deemed to expire by reason of allure to drill 24 25 or produce wells situated on the land therein embraced. 25 26 (c) Suspension of drilling or producing operations or gas storage operations on all 26 27 Unitized Land pursuant to direction or consent of the AO or his duly authorized representative shall 27 28 be deemed to constitute such suspension pursuant to such direction or consent as to each and every 28 29 Tract of Unitized Land. But, if a suspension of those operations is limited to specific lands, it shall 29 30 be applicable only to such lands. 30 31 31 32 (d) Each lease, sublease, or contract relating to the exploration, drilling, development, or 32 33 operation for oil and gas on lands committed to this Agreement which, by its terms, might expire 33 34 prior to the termination of this Agreement, is hereby extended beyond any such term so provided 34 35 therein so that it shall be continued in full force and effect for and during the term of this Agreement. 35 36 36 37 (e) The segregation of any Federal lease committed to this Agreement is governed by the 37 38 following provision in the fourth paragraph of Section 17(m) of the Mineral Leasing Act, as amended 38 39 by the Act of September 2, 1960 (74 Stat. 781-784, 30 USC 226 m): "any (Federal) lease heretofore 39 40 or hereafter committed to any such (unit) plan embracing lands that are in part within and in part 40 41 outside of the area covered by any such plan shall be segregated into separate leases as to the lands 41 42 committed and the lands not committed as of the effective date of unitization. Provided, however 42 43 that any such lease as to the non -unitized portion shall continue in force and effect for the terms 43 44 thereof but for not less than two years from the date of such segregation and so long thereafter as oil 44 45 and gas is produced in paying quantities." 45 46 46 47 (1) Working Interest Owners shall have the fiill right to use the Unitized Formation for all 47 48 necessary injection, storage and withdrawal of gas in connection with gas storage operations and 48 49 activities provided for or authorized hereunder. 49 50 50 51 21. COVENANTS RUN WITH LAND. The covenants herein shall be construed to be 51 52 covenants running with the land with respect to the interest of the parties hereto and their successors 52 53 in interest until this Agreement terminates, and any grant, transfer, or conveyance of interest in land 53 54 or leases subject hereto shall be and hereby is conditioned upon the assumption of all privileges and 54 55 obligations hereunder by the grantee, transferee, or other successors in interest. No assignment or 55 56 transfer of any Working interest shall be binding upon Unit Operator, nor shall any transfer of any 56 57 Royalty Interest or other interest be binding on the Working interest Owner responsible for payment 57 58 or settlement thereof until the first day of the calendar month after Unit Operator or the responsible 58 59 Working interest Owner, as the case may be, is furnished with the original, photostat, or certified 59 60 copy of the recorded instrument of transfer. 60 61 61 In 2468536 B-1523 P-724 12/20/95 05:00P PG 12 OF 45 1 22. EFFECTIVE DATE. This Agreement shall become binding upon each party who I 2 executes or ratifies it as of the date of execution or ratification by such party and shall become 2 3 effective as of 7:00 a.m. on the first day of the calendar month next following theapproval of this 3 4 Agreement by the Secretary or his duly authorized delegate. 4 5 5 6 Unit Operator shall within sixty (60) days after the effective date of this Agreement file for 6 7 record in Weld County, Colorado, a copy of this Agreement executed by the Unit Operator and a 7 8 certificate to the effect that this Agreement has become effective according to its terms and stating 8 9 further the effective date. 9 10 10 11 23. TERM. The term of this Agreement shall be for and during the time that Native 11 12 Unitized Substances can be produced in quantities sufficient to pay for the cost of producing same 12 13 from wells on Unitized Land and for as long thereafter as drilling, reworking, or other operations are 13 14 prosecuted on Unitized Land without cessation of more than sixty (60) consecutive days, and so long 14 15 thereafter as Native Unitized Substances can be produced as aforesaid, or so long as the Unitized 15 16 Formation is being utilized for the injection, withdrawal or storage of natural gas, whether or not that 16 17 natural gas is considered Native Unitized Substances, unless sooner terminated by the AO as 17 18 provided in Section 8, Successor Unit Operator, by the Working interest Owners as provided in 18 19 Section 24, Termination by Working interest Owners. 19 20 20 21 24. TERMINATION BY WORKING INTEREST OWNERS. This Agreement may 21 22 be terminated at any time by Working interest Owners owning ninety percent (90%) or more of the 22 23 pai1i,'ipation percentage in the Unitized Land with the approval of the AG Notice of any such 23 24 termination shall be given by the Unit Operator to all parties hereto. 24 25 25 26 Upon termination of this Agreement, the parties hereto shall be governed by the terms and 26 27 provisions of the leases and contracts affecting the separate Tracts. 27 28 28 29 If not specified otherwise by the leases unitized under this Agreement, the Basic Royalty 29 30 Owners hereby grant Working interest Owners a period of six (6) months -after termination of this 30 31 Agreement in which to salvage, sell, distribute, or otherwise dispose of the personal property. and 31 32 facilities used in connection with unit operations. 32 33 34 UnitOperator shall, within 33 11, sixty (60) days after the termination of this Agreement has been 34 35 determined, pursuant to Section 8 and 24 hereof file for record in the office or offices where a 35 36 counterpart of this Agreement is recorded, a certificate setting forth the fact of such termination and 36 37 the date thereof 37 38 38 39 25. RATE OF PROSPECTING. DEVELOPMENT. AND PRODUCTION. The AO 39 40 is hereby vested with authority to alter or modify from time to time in his discretion the quantity and 40 41 rate of production under this Agreement when such quantity and rate of production are not fixed 41 42 pursuant to Federal or State law or does not conform to any statewide or voluntary conservation or 42 43 allocation program which is established, recognized, and generally adhered to by the majority of 43 44 operators in such state, such authority being hereby limited to alteration or modification in the public 44 45 interest, the purpose thereof and the public interest to be served thereby to be stated in the order of 45 46 alteration .or modification. Without regard to the foregoing, the AO is also hereby vested with 46 47 authority to alter or modify from time to time at his discretion the rate of prospecting and 47 48 development and the quantity and rate of production under this Agreement when such alteration or 48 49 modification is in the interest of attaining the conservation objectives stated in this Agreement -and is 49 50 not in violation of any applicable Federal or State law. 50 51 51 52 Powers in this Section vested in the AO shall only be exercised after notice to Unit Operator 52 53 and opportunity for hearing to be held not less than fifteen (15) days from notice. 53 54 54 55 26. APPEARANCES. Unit Operator shall„: after notice to other parties affected, have 55 56 the right to appear for and on behalf of any and all interests affected hereby before the Department of 56 57 Interior and to appeal from orders issued under the regulations of said Department or to apply for 57 58 relief from any of said regulations or in any proceedings relative to operations before the Department 58 59 of the Interior or -any other legally constituted authority; provided, however, that any other interested 59 60 party shall also have the right at his own expense to be heard in any such proceeding. 60 61 61 Ii 2468536 B-1523 P-724 12/20/95 05:00P PG 13 OF 45 1 27. NOTICES. All notices, demands, or statements required hereunder to be given or 1 2 rendered to the parties hereto shall be deemed fully given if given in writing, or personally delivered 2 3 to the party or sent by postpaid, registered, or certified mail, addressed to such party at the address 3 4 such party has furnished to the party sending the notice, demand, or statement. 4 5 5 6 28. NO WAIVER OF CERTAIN RIGHTS. Nothing in this Agreement contained shall 6 7 be construed as a waiver by any party hereto of the right to assert any legal or constitutional right or 7 8 defense as to the validity or invalidity of any law of the State of Colorado, or of the United States, or 8 9 regulations issued thereunder in any way affecting such party, or as a waiver by any such party of any 9 10 right beyond his or its authority to waive, provided, however, each party hereto except the United 10 11 States covenants that during the existence of this Agreement, such party shall not resort to any action I 1 12 at law or in equity to partition the Unitized Land or the facilities used in the development or 12 13 operation thereof and to that extent waives the benefits of all laws authorizing such partition. 13 14 14 15 29. UNAVOIDABLE DELAY. All obligations under this Agreement, except the 15 16 payment of money, shall be suspended while, but only so long as Unit Operator, despite the exercise 16 17 of due care and diligence, is prevented from complying with such obligations, in whole or in part, by 17 18 strtices, acts of God, Federal, State or municipal law or agencies, unavoidable accidents, 18 19 uncontrollable delays in transportation, inability to obtain necessary material in open market, or other 19 20 matters beyond the reasonable control _of the Unit Operator whether similar to matters herein 20 21 enumerated or not. 21 22 22 23 30. NON-DISCRIMINATION. In connection with the performance of work under this 23 24 Agreement, the Unit operator agrees to comply with all the provisions of Section 202(1) to (7) 24 25 inclusive, of Executive Order 11246, 30 CFR 12319, as amended, which are hereby incorporated by 25 26 reference in this Agreement. 26 27 27 28 31. LOSS OF TITLE. In the event title to any Tract of Unitized Land shall fail and the 28 29 true owner cannot be induced to join this Unit Agreement, such tract shall be automatically regarded 29 30 as not committed hereto and there shall be such readjustment of fixture costs and benefits as may be 30 31 required on account of the loss of such title. In the event of a dispute as to titleas to any Royalty or 31 32 Working interest, or other interests subject hereto, payment or delivery on account thereof may be 32 33 withheld, but such finds shall be deposited as directed by the AO to be held as unearned money 33 34 pending final settlement of the title dispute, and then applied as earned or returned in accordance 34 35 with such final settlement. 35 36 36 37 Unit Operator as such is relieved from any responsibility for any defect or failure of any title 37 38 hereunder. 38 39 39 40 In order to avoid title failure which might incidentally cause the title to a Working interest or 40 41 Interests to fail, the owners of (a) the surface rights to land subject to this Agreement, (b) severed 41 42 minerals or Royalty Interests in said land, and (c) improvements located on said lands, but not 42 43 utilized for unit operations, shall indivitnally, when taxed separately be responsible for the rendition 43 44 and assessment for property tax purposes of all such property, and for payment of such taxes, except 44 45 as otherwise provided in any contract or Agreement between such owners and a Working interest 45 46 Owner or in the Unit Operating Agreement. If any property taxes are not paid by such owners 46 47 responsible, therefore, when due, the Unit Operator may, at any time prior to tax sale, pay the same, 47 48 redeem such property, and discharge such tax liens as may arise through non-payment. In the event 48 49 the Unit Operator makes any such payment or redeems any such property from tax sale, the Unit 49 50 Operator shall be reimbursed, therefore, by the Working interest owners in proportion to their 50 51 respective percentages of Unit Participation; and the Unit Operator shall withhold from the proceeds 51 52 otherwise due to said delinquent taxpayer or taxpayers an amount sufficient to defray the costs of 52 53 such payment or redemption, such withholdings to be distributed among the Working interest owners 53 54 in proportion to their respective contributions toward such payment or redemption. 54 55 55 56 32. SUBSEOUENT JOINDER. After the effective date of this Agreement, the 56 57 commitment of any interest in any Tract within the Unit Area shall be upon such equitable terms. as 57 58 may be negotiated by Working interest owners and the owner of such Interest. After the effective 58 59 date hereof joinder by a Royalty Owner must be consented to in writing by the Working interest 59 60 Owrer committed hereto and responsible for the payment of any benefits that may accrue hereunder 60 61 on behalf of such Royalty Interest. Joinder by any Royalty Owner at any time must be accompanied 61 12 2468536 8-1523 P-724 12/20/95 05:00P PG 14 OF 45 1 or preceded by appropriate joinder by the Owner of the corresponding Working interest in order for 1 2 the interest to be regarded as effectively committed. Joinder to this Unit Agreement by a Working 2 3 interest Owner at any time must be accompanied by appropriate joinder to the Unit Operating 3 4 Agreement in order for the Interest to be regarded as committed to this Unit Agreement. Except as 4 5 may otherwise herein be provided, subsequent joinders to this Agreement shall be effective as of the 5 6 date of the filing with the AO of duly executed counterparts of all or any paper necessary to establish 6 7 commitment of any Tract to this Agreement unless objection to such joinder is made within sixty 7 8 (60) days by the AO. 8 9 9 10 33. COUNTERPARTS. This Agreement may be executed in any number of 10 11 counterparts, no one of which needs to be executed by all parties, or may be ratified or consented by 11 12 separate instrument in writing specifically referring hereto and shall be binding upon all those parties 12 13 who have executed such counterpart, ratification, or consent hereto with the same force and effect as 13 14 Wall such pasties had signed the same document and regardless of whether or not it is executed by all 14 15 other parties owning or claiming an interest in the lands within the above described Unit Area. 15 16 16 17 In the event any of the parties hereto own both Working Interests and Royalty Interests, as 17 I8 such interests ,are shown on Exhibit "B", it shall not be necessary for such party to execute this 18 19 Agreement in both capacities in order to commit both classes of Interest. Execution hereof by any 19 20 such party in one capacity shall also constitute execution in the other capacity, provided said interest 20 21 ownar has also executed the Unit Operating Agreement in its capacity as a Working interest Owner. 21 22 22 23 34. REVENUE OWNER'S TAXES. Unless otherwise specifically provided by law, 23 24 Unit Operator will, on behalf of each Revenue Owner, render and pay all ad valorem taxes, including 24 25 ad valorem taxes measure by production levied against its royalty or mineral interest, and Unit 25 26 Operator will have the right to withhold from revenues otherwise due each non-exempt Revenue 26 27 Owner, an amount as deemed necessary by the Unit Operator to cover the ad valorem tax accruing 27 28 on and which will be due on that Revenue Owner's interest. Unit Operator shall pay, as an agent for 28 29 the Working interest Owners, each Owner's share of all taxes other than ad valorem taxes levied on 29 30 or measured by the Native Unitized Substances -in and under, or that may be produced, gathered, and 30 31 sold from the lands subject thereto or upon the proceeds or net proceeds derived therefrom. No 31 32 such taxes shall be charged to the United States, the State of Colorado, the County of Weld or to 32 33 any lessor who has a contract with lessee which requires the lessee to pay such taxes. 33 34 34 35 35. NO PARTNERSHIP. It is expressly agreed that the relation of the parties hereto is 35 36 that of independent contractors and nothing this Agreement contained, expressed or implied, nor any 36 37 operations conducted hereunder, shall create or be deemed to have created a partnership or 37 38 association between the parties hereto or any of them. 38 39 39 40 36. BORDER AGREEMENTS. Unit Operator, subject to the provisions of this Unit 40 41 Agreement and subject to approval of the AO, may enter into an Agreement or Agreements with the 41 42 Working interest Owners of adjacent lands with respect to operations designed to increase the 42 43 ultimate recovery of oil and/or gas from the Unitized Formation, prevent waste and protect the 43 44 correlative rights of the parties and to protect the integrity of any gas storage operations conducted 44 45 in the Unitized Formation. 45 46 46 47 37. CORRECTION OF ERRORS. It is hereby agreed by all parties to this Agreement 47 48 that Unit Operator is empowered to correct any mathematical or clerical errors which may exist in 48 49 the pertinent Exhibits to this Agreement; provided, however, that correction of any error other than 49 50 mathematical or clerical shall be made by Unit Operator only after first having obtained approval of 50 51 Working interest Owners and the AO. If any such corrections are made, Unit Operator shall file not 51 52 less than four (4) copies of the corrected pages of this Agreement or of the Exhibits hereto with the 52 53 AO. 53 54 54 55 38. SPECIAL SURFACE STIPULATIONS. Nothing in this agreement shall modify 55 56 the special Federal lease stipulations attached to the individual Federal oil and gas leases. 56 57 57 58 39. WILDLIFE STIPULATION. Nothing in this Unit Agreement shall modify the 58 59 special Federal lease stipulations applicable to the lands under the jurisdiction of the United States 59 60 Fish :end Wildlife Service. 60 61 61 13 2468536 8-1523 P-724 12/20/95 05:OOP PG 15 OF 45 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 40. FOREST LAND STIMULATION. Notwithstanding any other terms and conditions contained in this Agreement, all of the Stipulations and conditions of the individual leases between the United States and its lessees or their successors or assigns embracing lands within the unit are included for the protection of lands or functions under the jurisdiction of the Secretary of Agriculture shall remain in full force and effect the same as though this Agreement had not been entered into, and no modification thereof is authorized except with the prior consent in writing of the Regional Forester, United States Forest Service. 41. RECLAMATION LANDS. Nothing in this Agreement shall modify the special Federal lease stipulations applicable to land under the jurisdiction of the Bureau of Reclamation. 42. POWERSITE. Nothing in this Agreement shall modify the special Federal lease stipulations applicable lands under the jurisdiction of the Federal Energy Regulatory Commission. IN RTINESS WHEREOF, the parties hereto have caused this agreement to be executed and have set opposite their respective names the date of execution. UNIT OPERATOR AND WORKING INTEREST OWNER Address: 20479 U.S. Highway 6 P. O. Box 30 Sterling, Colorado 80751 STATE OF COUNTY OF COLORADO ) )ss• LOGAN ) WALSH PRODUCTION, INC. — By \lJ' M U V l mil! WW - Date of Execution September 20, 1995 The foregoing instrument was aclmowledged before me by William M. Walsh as Vice President of Walsh Production, Inc. This 20th day of September , 1995. My Commission Expires: Decomber 21, 1997 UNff OPERATOR SIGNATURE PAGE FOR THE LILLI (D -SAND) UNIT AGREEMENT WELD COUNTY, COLORADO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 1 2 C275 1 36 C27508 10 C27508 1 • 30 N 0 OD w 4 5 9C58653 11 C28083 • 0 17 31 D 32 18 0 C29892 6 • • 29 19 i 01 01 6 C56654 12 f7 u 14 • 13 • • 12 7 4- 15 • 16 A,• C29692 20 • q 33 Unit Boundary 30 1 31 31 I45 46 C29892A 32 C29692A 53 4 34 • C27507 • 35 • • 5 47 JT 54 56 C29892A 55 5 3 88 67 05▪ 4038 69 C46918 c56651 T9N 70 0 2 T8N 58 C49179 59 C48910 71 036459 72 • C46913 73 36 • • 23 • • • 34 • • 37 • + 38 24 38 40 4 39 • 48 • C29692A 49 • • C29892A 42 '52 C298/2A 50 51 ID m 9---- C29692A 51 1 60 C25025 Q* 82 C49175 74 75 60 C29692A + 15 0 0 13 5 9 W d • C46917 28 C54038 R 18 5 8 W 19 4X 1 44 0540' - 1 7 53 + + 16 • • • 61 C29692A 77 C540 78 79 604 81 C25025 C540 63 64 82 ; 83 C49167 84 • • • * * • • 65 15 66 SCALE 79 12 4 1 MILE 13 v ( ZO'Le8 ene A•e•elem. Inc. Mate ate , EXHIBIT "A LULU FIELD UNIT AGREEMEN UNIT AND TRACT BOUNDARIE WELD COUNTY, COLORADO 25 • SCALE AS SHOWN 2468536 B-1523 P-724 12/20/95 05:00P PG 17 OF 45 EXHIBIT "A-1" LILLI FIELD UNIT AGREEMENT TRACT NUMBER. ACREAGE. LEGAL DESCRIPTION 1. 320.66 ACRES, LOTS 3, 4, S/2NW/4 SEC. 1 AND LOTS 1, 2, SW/4NE/4 SEC 2 -8N -59W 2 40 ACRES, SE/4NE/4 SEC. 2 -8N -59W 3 80 ACRES, W/2SE/4 SEC. 2 -8N -59W 4 80 ACRES, E/2SE/4 SEC. 2 -8N -59W 5. 80 ACRES, N/2NE/4 SEC. 11 -8N -59W 6. 80 ACRES, S/2NE/4 SEC. 11 -8N -59W 7. 80 ACRES, N/2SE/4 SEC. 11 -8N -59W 8. 120 ACRES, S/2SE/4 SEC. 11 AND NW/4NW/4 SEC. 13 -8N -59W 9. 80 ACRES, S/2SE/4 SEC. 36 9N -59W 10. 182.65 ACRES, LOTS 1, 2, S/2NE/4 SEC. 1 -8N -59W 11. 320 ACRES, S/2 SEC. 1 -8N -59W 12. 80 ACRES, W/2NW/4 SEC. 12 -8N -59W 13. 320 ACRES, NE/4, E/2NW/4, N/2SE/4 SEC 12 -8N -59W 14. 80 ACRES, W/2SW/4 SEC. 12 -8N -59W 15. 200 ACRES, E/2SW/4 SEC. 12, N/2NE/4, NE/4NW/4 SEC 13 ALL IN 8N -59W 16. 80 ACRES, S/2SE/4 SEC 12 -8N -59W 17. 279.91 ACRES, LOTS 8, 9, 10, 11, 13, 14 SEC 6 -8N -58W 18. 185.71 ACRES, LOTS 1, 2, S/2NE/4 SEC 6 -8N -58W 19. 80.1 ACRES, LOTS 12 AND 15 SEC. 6 -8N -58W 20. 160 ACRES, SE/4 SEC. 6 -8N -58W 21. 156.81 ACRES, LOTS 1, 2, E/2NW/4 SEC 7 -8N -58W 22. 160 ACRES, NE/4 SEC. 7 -8N -58W 23. 236.53, LOTS 3, 4, E/2SW/4, W/2SE/4 SEC. 7 -8N -58W 24. 80 ACRES, E/2SE/4 SEC 7 -8N -58W 25. 38.16 ACRES, LOT 1 SEC 18 -8N -58W 26. 40 ACRES, NE/4NW/4 SEC. 18 -8N -58W 27. 80 ACRES, N/2NE/4 SEC. 18 -8N -58W 28. 120 ACRES, S/2NE/4, SE/4NW/4 SEC. 18 -8N -58W 29. 80 ACRES, S/2SW/4 SEC. 32 -9N -58W 30. 108.51 ACRES, LOTS 3 AND 4 SEC. 5 -8N -58W 31. 275.6 ACRES, LOTS 1, 2, SE/4NE/4 SEC. 5 AND W/2 LOT 3, LOT 4, SW/4NW/4 SEC. 4 -8N -58W 32. 80 ACRES, S/2NW/4 SEC. 5 -8N -58W "A -N' #1 Ainti 4 A •nn� 2468536 B-1523 P-724 12/20/95 05:OOP PO 18 OF 45 33. 40 ACRES, SW/4NE/4 SEC. 5 -8N -58W 34. 240 ACRES, SW/4 OF SEC. 5 AND N/2NW/4 SEC. 8 -8N -58W 35• 240 ACRES, SE/4 SEC. 5 AND W/2SW/4 SEC. 4 -8N -58W 36. 160 ACRES, NE/4 SEC. 8 -8N -58W 37. 80 ACRES, S/2NW/4 SEC. 8 -8N -58W 38. 40 ACRES, NW/4SW/4 SEC. 8 -8N -58W 39. 40 ACRES, SW/4SW/4 SEC. 8 -8N -58W 40. 80 ACRES, E/2SW/4 SEC. 8 -8N -58W 41. 200 ACRES, NW/4SE/4, S/2SE/4 SEC. 8 AND N/2NE/4 SEC. 17- 8N -58W 42. 40 ACRES, NE/4SE/4 SEC. 8 -8N -58W 43. 80 ACRES, N/2NW/4 SEC. 17 -8N -58W 44. 40 ACRES, SW/4NW/4 SEC 17 -8N -58W 45. 365.99 ACRES, LOT 2, E/2 LOT 3, SE/4NW/4, S/2NE/4, SE/4 SEC. 4 -8N -58W 46. 58.14 ACRES, LOT 1 SEC. 4 -8N -58W 47. 80 ACRES, E/2SW/4 SEC. 4 -8N -58W 48. 80 ACRES, N/2NW/4 SEC. 9 -8N -58W 45. 80 ACRES, S/2NW/4 SEC. 9 -8N -58W 50. 80 ACRES W/2NE/4 SEC. 9 -8N -58W 51. 320 ACRES, E/2NE/4, N/2SE/4 SEC. 9 AND NW/4 SEC. 10 -8N -58W 52. 240 ACRES, SW/4, S/2SE/4 SEC. 9 -8N -58W 5_. 160 ACRES, N/2N/2 SEC. 16 -8N -58W 54. 160 ACRES, SW/4 SEC. 34-9N-58 55. 160 ACRES, SE/4 SEC. 34 -9N -58W 5f. 197.61 ACRES, LOTS 3, 4, S/2NW/4 SEC. 3 -8N -58W 198.95 ACRES, LOTS 1, 2, S/2NE/4 SEC. 3 -8N -58W 59. 160 ACRES, SW/4 SEC. 3 -8N -58W 59. 160 ACRES, SE/4 SEC. 3 -8N -58W 60. 160 ACRES, NE/4 SEC. 10 -8N -58W 61. 160 ACRES, SW/4 SEC. 10 -8N -58W 63. 160 ACRES, SE/4 SEC. 10 -8N -58W 63. 160 ACRES, NW/4 SEC. 15 -8N -58W 64. 160 ACRES, NE/4 SEC. 15 -8N -58W 6i. 80 ACRES, NW/4SE/4, NE/4SW/4 SEC. 15 -8N -58W 66. 160 ACRES, E/2SE/4, SW/4SE/4, SE/4SW/4 SEC. 15 -8N -58W 67. 40 ACRES, SW/4SW/4 SEC. 35 -9N -58W "A-1" #2 2468536 B-1523 P-724 12/20/95 05:00P PG 19 OF 45 68. 280 ACRES, SE/4, SE/4SW/4, N/2SW/4 SEC 35 -9N -58W 69. 200.58 ACRES, 70. 202.48 ACRES, 71. 160 ACRES, 72. 160 ACRES, 73. 182.35, 74. 160 ACRES, 75. 160 ACRES, 76. 40 ACRES, 77. 40 ACRES, 78. 80 ACRES, 79. 120 ACRES, 80. 40 ACRES, 81. 120 ACRES, 82. 40 ACRES, 83. 80 ACRES, 84. 120 ACRES, 11,430.74 ACRES LOTS 3, 4, S/2NW/4 SEC. 2 -8N -58W LOTS 1, 2, S/2NE/4 SEC. 2 -8N -58W SW/4 SEC. 2 -8N -58W SE/4 SEC. 2 -8N -58W LOT 4, SW/4NW/4, W/2SW/4 SEC. 1 -8N -58W NW/4 SEC. 11 -8N -58W, NE/4 SEC. 11 -8N -58W NW/4NW/4 SEC. 12 -8N -58W NW/4SW/4 SEC. 11 -8N -58W NE/4SW/4, NW/4SE/4 SEC. 11 -8N -58W NE/4SE/4 SEC. 11 AND SW/4NW/4, NW/4SW/4 SEC. 12 -8N -58W SW/4SW/4 SEC. 11 -8N -58W S/2SE/4, SE/4SW/4 SEC. 11 -8N -58W NW/4NW/4 SEC. 14 -8N -58W E/2NW/4 SEC. 14 -8N -58W W/2SW/4, SW/4NW/4 SEC. 14 -8N -58W ALL IN WELD COUNTY, COLORADO "A-1" #3 N 0 V 1 0 1995 i111ii111 1111! a Hill MP m 1 a 0 a00000O*O*Mi gg 0000 000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O o 0 0 0 e 0 0 0 0 0 158: . ggga ai ig V, yu O O � N PPOP Hill OWN OO �w YUOO aO NIA Oiii• Oaiiiii mmwm0PPOP0OPP 1111111111 I IIalllI a *9*SOo9*MMAOMMOMMM000f Oof 7y Iiiiiiilliiill a ffoof00000fo*M G:00r0$Q{0,`01080;(YJ {0�`O,000OOOyY yO OO y000000000 iila§$R11JJ ! A4ggiii �ipOssi88pOS �rQQ1. tF g §i2 ill 000000000000000000000000000 1111$1111111 iii AiiI IIIIIIso 1111111 it 1111 *A*A OO0f2000000AAA000*00*01 CFA mII giCCC <OC<OC!!i� !� 111rS " $ g yy O y Si 00000000000 lei;e000. 0. . 0. 0 mm 000�gj �gI }�QQjjmmmi iSi5liS��i 0e0c00oe00P Y e + O r 0 000000e0000ee000000oe0000g Og.AONrIJVaaats + VN e p S 11111111111iiiiiiill AAO'j.'j.OAFAAAAOAO*Ofoi sg--11ill 'I S AXMOFa*Oa*aA77aaaaa02X*0*Oi m���rri�Am 7C i r rli!!!IIIIIiillEI'lliiillffi mm II �1 Q-1 x yys$I 2 t7�i y!lww0 '"OO ASR XAGF h hmmm0'�1RIT54E0M "I I% w mm s.1`. �p1 � 6T II 11 s ilgi4S111;ril S 4 p O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O r,p g 1: ggl IlUxog MINH N Mil o000e0! I82$a' HO!0 0% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O o K o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o O o$ 0 0 0 0 0 0 0 323587 R GENE V 8 DOROTHY L CURLEE 0.0023437 0.00028 53 32573 R SALLE C LUTIN 0.0014757 0.0001670 324853 R KATHRYN B YANK 0.0020633 0.0002355 338541 R LUCILLE P BOLLMAN 0.0072917 0.0008253 338584 R MNRJORE LUTIN VANT 0.0008945 0.0000786 336589 W JAMES B MCNAY 00177642 0.0020130 338577 R MADELEN E LUTIN 0.0008945 0.0000786 341322 0 SAMUEL P S ELEAABETH L GREEN, JT 0.0060625 0.0005730 341322 R SAMUEL P 8 ELIZABETH L GREEN. JT 0.0048975 0.0006.308 341322 W SAMUEL P S ELIZABETH L GREEN, JT 0.0107641 0.0012104 341323 0 BILLY Ali JUDY VANDNGRIFF, JT 0.0033750 0.0003820 341323 R BILLY AA 8 JUDY VANDAGRFF, JT 0.0031250 0.0003537 341323 W BILLY JIM 8 JUDY VANDAGR IFF, JT 0.0066520 0.0007416 342038 0 R H STANLEY It C M SUU NAN CO PR. 0.0050000 0.0005680 TOTALS 10000000 0.1131900 OWNER • TYPE NAME TRACT /2 %UNIT 712 000009 R BUREAU OF LAND MANAGEMENT C58656 0.0837500 0.0000092 006558 W FRANK H WALSH 0.6768610 0.0008454 008556 0 FRANK H WALSH 0.0001750 0.0000002 143425 W WALSH PRODUCTION, NC 0.1808552 0.0001525 143425 0 WALSH PRODUCTION, INC 0.0004083 0.0000004 296266 R COLORADO NAIL SK TRSTE 0.0005208 0.0000005 266288 R ROBERT E OCONNELL TRSTE 0.0005208 0.0000005 317918 R JAMES B & NANCY L MCNAY, JT 0.0078125 0.0000074 323557 R =REV& i DOROTHY I. CURLEE 0.0023437 0.0000022 323573 R SALLE C LUTIN 0.0014757 0.0000014 324853 R KATHRYN B YAM 0.0020633 0.0000020 338541 R LUCILLE P BOLLMAN 0.0072917 0.0000069 338564 R MARJORE LUTIN VANT 0.0008945 0.0000007 336960 W JA ESBMCNAY 0.0177842 0.0000180 338577 R HADELENE LUTIN 0.0006946 0.0000007 341322 R SAMUEL P i ELIZABETH L GREEN, JT 0.0046875 0.0000045 341322 W SAMUEL P i ELIZABETH L GREEN, JT 0.0107641 0.0000102 341323 R BILLY JIM i JUDY VANDAGRFF, JT 0000/250 0.0000030 341323 W BMLY JAI & JUDY VAN DAG RFF. JT 0.0069522 0.0000062 TOTALS 1.0000000 0.0009510 OWNER 6 TYPE NAME TRACT 13 %UNIT T 13 008558 0 FRANC H WALSH 0.0012984 0.0001114 006556 W FRANK H WALSH 0.1540806 00132152 022135 R PROSPECT COMPANY 0.0126953 0.0010690 143425 0 WALSH PRODUCTION, INC 0.0030297 0.0002599 143125 W WALSH PRODUCTION, NC 0.5276392 0.0452804 298266 R COLORADO NIL BK TRSTE 0.0014848 0.0001256 290205 R ROBERT E OCOIMELL TRSTE 0.0014648 0.0001258 317916 0 JAMES B 8 NANCY L MCNAY, JT 0.0031975 0.0002743 323573 R SALLE C LUTN 0.0029297 0.0002513 323598 R HOMER E NORTHUP 0.0382500 0.0031095 337094 0 GEORGE W ANSWORTH 0.0010158 0.0000971 337695 R MARTHA BLISS DUNCAN 0.0070313 0.0008031 337696 R CHARLOTTE BUSS CLAYTON 0.0210937 0.0015094 337697 R FARMERS STATE BANK. TRUSTEE 0.0190430 0.0018335 337696 R RALPH W FARR, TRUSTEE 0.0343750 0.0029487 338569 W JAMES BMCNAY 0.0692022 0.0073943 341322 0 SAMUEL P SELIZABETH L GREEN, JT 0.0019183 0.0001515 341322 W SAMUEL P i ELIZABETH L GREEN, JT 0.0521593 0.0044742 341323 W BILLY I4 i JUDY VANDAGRFF, JT 00318525 0.0027323 341323 0 BILLY JIM S JUDY VA DAGRBFF. JT 0.0012789 0.00011187 TOTALS 1.0000000 0.0857790 OWNERS TYPE NAME TRACT 14 %UNIT T 14 008550 0 FRANC H WALSH 0.0021300 0.0000053 006556 W FRANK H WALSH 0.1440695 0.0003554 143425 0 WALSH PRODUCTION. INC 0.0049700 0.0000123 143425 W WALSH PRODUCTION. NC 0.4175215 0.0010306 312054 R EWING INVESTMENT COMPANY 0.0012500 0.0000031 317916 R JAMES B 8 NANCY L MCNAY, JT 00143750 0.0000356 317918 0 JAMES 1511 NANCY L MCNAY, JT 0.0135100 0.0000333 324095 R KIMBERLY MCKEE EATON 0.0000625 0.0000002 324096 R BEVERLY MCKEE EATON 0.0003125 0.0000008 324097 R LAWRENCE C EATON 0.0000825 0O000002 324095 R NANCY LEIGH EATON 0O000625 0.0000002 324099 R REX C EATON 9 0.0000625 0.0000002 324100 R ROBERT LAWRENCE EATON 0.0008260 0.0000015 337993 R PENNY ANN EATON HANCOCK 0.0000625 0.0000002 337694 R LLOYD K COX 0.0050000 0.0000123 337695 R ERMA JEAN BERGENDAHL 0.0575000 0.0001419 397894 0 GEORGE W ANSWORTH 0.0018006 0.0000041 337699 R SYLVAKCLEMA 00104169 0.0000257 337700 R JOHN F KOTOUC 0.0069444 0.0000171 337701 R THOMAS O KOTOUC 0.0089441 0.0000171 337702 R AN KOTOUC OLEY 0.0009444 0.0000171 336589 W JAMES B MCNAY 0.1405114 0.0003188 341322 0 SAMUEL i ELIZABETH L GREEN, JT 0.0081080 0.0000200 341322 W SAMUEL P 8 ELIZABETH L GREEN, JT 0.0050463 0.000096 341322 R SAMUEL P i ELIZABETH L GREEN, JT 0.0069250 0.0000213 341323 W BILLY 3815 JUDY VANNDKR6FF, JT 0.0517074 0.0001277 341323 0 B.LY JIM B .MAY VANDAGRFF, JT 0.0064040 0.0000133 341323 R BILLY JIM i JUDY VANDAGNFF, JT 0.0057500 0.0000142 TOTALS 1.0000000 0.0024370 OWNER 6 TYPE NAME 009558 0 FRANK H WALSH 006656 W FRANK H WALSH 143425 0 WALSH PRODUCTION, NC 143425 W WALSH PRODUCTION. NC 312054 R EWNG INVESTMENT COMPANY 317916 R JAMES B i NANCY L MCNLY, JT 317910 0 JAMES BBNANCYL MORAY, JT 324095 R IOMBERLY MCKEE EATON 324096 R BEVERLY MCKEE EATON 324097 R LAWRENCE C EATON 324098 R NANCY LEIGH EATON 324099 R REX C EATON II 324100 R ROBERT LAWRENCE EATON 337683 R PENNY ANN EATON HANCOCK TRACT 16 %UNIT T 16 0.0027800 0.0000059 0.157692 0.0003310 0.0064400 0.0000136 0.3810063 0.0008199 0.0025000 0.0000054 0.0287500 0.0000816 00145200 0.0000311 0.0001250 0.0000003 0.0006250 00000013 0.0001250 0.0000003 0.0001250 0.0000003 0.0001250 0.0000003 0.0012500 0.0000027 0.0001250 0.0000003 MIT11N 1 A �nnr 337885 R ERMA JEAN BER(ENDAIIL 0.0363750 0.0000644 338566 W JAMES B MCNAY 0.1519810 0.0003258 338628 R DELBERT 0 CASTOR 0.0043750 0.0000094 341322 0 SAMUEL P 8 ELIZABETH L GREEN, JT 0.0087120 0,0000167 341322 W SAMUEL P a ELIZABETH L GREEN, JT 0.0919663 0.0001972 341322 R SAMUEL P a ELIZABETH L GREEN, JT 0.0172500 0.0000370 341323 W BLLY AM & JUDY VAIDAGREF, JT 0.0559930 0.0001200 341323 0 BLLY JIM a JUDY VADAORFF, JT 0.0039060 0.0000125 341323 R BLLY AA & JUDY VMDAGRFF, Jr 0.0115000 0.0000247 348256 R WADES CASTOR 0.0043750 0.0000004 310259 R DELAID 1000 CASTOR 0.0043750 .0.0000094 TOTALS 1.0000000 0.0021440 OWNER I TYPE NAME 000356 0 FRANK H WALSH 000356 -W FRANK H WALSH 143425 0 WALSH PRODUCTION. INC 143425 W WALSH PRODUCTION, INC 312051 R EWNG INESTMENT COMPANY 317916 R JAMES B 8 NANCY L MCNAY, JT 317916 0 JAMES B 8 NANCY L MOANS, JT 324095 R I W BERLY MCKEE EATON 324086 R BEVERLY MCKEE EATON 324007 R LAWRENCE C EATON 324098 R NANCY LEIGH EATON 324088 R REX C EATON N 324100 R ROBERT LAWRENCE EATON 337683 R PENNY ANN EATON HA NCOCK 337694 R LLOYD K COX 337585 R ERMA JEAN BERGENDAIL 339596 W JAMES B MCNAY 341322 0 SAMUEL P 8 ELIZABETH L GREEN IT 341322 W SAMUEL P 8 ELIZABETH L GREEN, JT 341322 R SAMUEL P B EU ZABETH L GREEN, JT 341323 W BLLYJ4 8 JUDY VAIAAGRFF, JT 341323 0 BLLY AM 8 JUDY VANDAGRFF, JT 341323 R BLLY JIM 8 JUDY VAIDAGRFF, JT TOTALS TRACT 18 %UNIT T /6 0.0027900 0.0000556 0.1557882 0.0031376 0.0064400 0.0001297 0.3810083 0.0076735 0.0025000 0.0000504 0.0261500 0.0005790 0.0145200 0.0002924 00001250 0.0000025 0.0006250 0.0000128 0.0001250 0.0000025 0.0001250 0.0000025 0.0001250 0.0000025 0.0012500 0.0000252 0.0001250 0.0000025 00100000 0.0002014 0.0525000 0.0010574 0.1519610 0.0030600 0.0067120 0.0001756 0.081.688 0.0018528 0.0172500 0.0003474 0.0550830 0.0011277 0.0058000 0.0001170 00115000 0.0002316 1.0000000 0.0201400 OWNER 6 TYPE NAME TRACT 17 %UNIT T 17 006556 R FRANC H WALSH 0.0018663 0.0000733 006556 W FRANC H WALSH 02160623 0.0063656 053723 R WELD COUNTY CLERK TO TIE BOARD 0.0163910 0.0030427 143425 W WALSH PRODUCTION, NC 0.5041452 0.0195969 143425 R WALSH PRODUCTION. NC 0.0044058 0.0001710 306327 0 ACORN RESOURCES NC 0.0074999 0.0002811 317916 R JAMES 8 8 NANCY L MCNAY, JT 0.00842(9 0.0003266 317916 0 JAMES 8 a NANCY L MCNAY, Jr 0.0036914 0.0001433 330036 R ROBERT M (IL.BERT 03362546 0.0014071 338569 W JAMES B MCNAY 0.0635625 00024070 341322 0 SAMUEL P & ELIZABETH L GREEN, Jr 0.0022146 0.0000680 341322 W SAMUEL P 8 ELEASETH L DEER, Jr 0.0361375 0.0014502 341322 R SAMUEL P 8 ELIZABETH L GREEN, JT 0.0050524 0.0001961 341323 W BLLY JIM 8 JUDY VNNDAGRFF, Jr 0.0254250 0.0008696 341323 0 BELT JIM a JUDY VA DAGRFF, JT 0.0014769 0.0000573 341323 R ILLY JIM & JUDY VAIDAGRFF, J7 0.0033962 0.0001307 TOTALS 1.0000000 0.03.6120 OWNER • TYPE NAME TRACT 16 'W112719 000000 R BUREAU OF LAND IA VIAGEMENT C29802 0.1250000 0.0007854 006558 W FRANK H WALSH 0.2627616 0.0016060 009556 0 FRANK H WALSH 0.0008132 0.0000903 17:425 W WALSH PRODUCTION, INC 0.5256578 0.0032196 143425 0 WALSH PRODUCTION, INC 0.0220674 0.0001406 317918 0 DALES B a NANCY L M(2NAY, JT 0.0016750 0.0000115 320955 0 KEY PRODUCTION COMPANY INC 0.0500000 0.0003082 341322 0 SAMUEL P a ELPJVIETH L GREEN. JT 0.0011250 0.0000069 341323 0 BLLY JIM 8 JUDY VA DAGRFF, JT 0.0007500 0.0000046 TOTALS 1.0000000 0.0061230 OWNER 9 TYPE NAME TRACT 16 %UNIT T 16 000069 R BUREAU OF LAND MANAGEMENT 040196 0.0624666 0.0021384 008656 W FRANC H WALSH 2317733 0.0079336 008536 R FRANK H WALSH 0009446 0.0000323 053723 R WELD COUNTY CLERK TO THE BOARD .0302109 00013424 143425 R WALSH PRODUCTION. INC .0022040 00000754 143425 W WALSH PRODUCTION, NC 3406044 0.0165123 306327 0 ACORN RESOURCES NC 0.0037516 0.0001204 317910 R JAMES B& NANCY L MCNAY, JT .0042124 00001442 317916 0 JADES B a NANCY L MCNAY. Jr 0.00184607 0.0000832 323584 0 W J LANGLEY, TRUSTEE .0249676 00006554 330036 R ROBERT MOLEERT .0181363 00006206 336560 W JAMES B MCNAY 0317971 0.0010681 341322 0 SAMUEL P 8 ELIZABETH L GREEN, JT .0011060 0.0000379 341322 R SAMUEL P 8 ELIZABETH L GREEN, Jr 0.0025274 0.0000885 341322 W SAMUEL P a ELIZABETH L GREEN, JT 00190783 0.0006531 341323 0 8LLY JIM 8 JUDY VANDAGRFF, Jr 0.0007366 0.0000253 341323 R BLLY JIM 1. JUDY VADAORFF, JT 0.0016849 00000577 341323 W BLLY .21.14 JUDY VADAGRFF, Jr 00127155 .0.0004354 TOTALS 10000000 0.0342310 OWNER 9 TYPE NAME TRACT 20 %UNIT 720 000.%9 0 FRANC H WALSH 00070312 0.0002384 006558 -W FRANC H WALSH 0.2007657 00071115 143425 0 WALSH PRODUCTION, INC 0.0164084 0.0005562 143425 W WALSH PRODUCTION, NC 0.4318359 0.0214205 317910 0 JAMES B B NANCY L MCNAY, AY, JT -0.0029387 0.0000804 323697 R ELNA KAMEN 0.0078125 0.0002049 323598 R HOMER E NORTHUP 0.1216750 0.0041310 341322 0 SAMUEL P 8 ELIZABETH L GREEN. 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L CALLA FIELD UNIT AGREEMENT SUMMARY OF OIL I GAB OWNERSHIP BY OWNER OWNER I TYPE NAME 306327 0 ACORN RESOURCES INC 338897 R ALBERT MILLER, TRUSTEE 323547 0 ALEXANDRA C WOODS 309957 0 ANDREW S ALLEN 338545 R ANN CHEAIRS HAYDEN 337702 R ANN KOTOUC DUEY 345688 R ANTHONY & EVELYN KREIFELS TRSTE 3301:28 R ARTHUR A TURNEY 338901 R ARTHUR BEN GUERRERO 3246'34 R BARBARA GUERRERO 338558 R BARBARA LOU CHEAIRS PLASTER 338594 0 BARRY W SPECTOR 338902 R BENNY E UNDSEY 324096 R BEVERLY MCKEE EATON 341323 0 BILLY JIM & JUDY VANDAGRIFF, JT 341323 W BILLY JIM & JUDY VANDAGRIFF, JT 341323 R BILLY JIM & JUDY VANDAGRIFF, Jr 324857 R BLAINE L WALKER 340050 R BOATMENS 1ST NATL BK, TRUSTEE 0441131 0 BONNIE J BROWN 323610 O BOOMER SOONER ONE INC 323810 R BOOMER SOONER ONE INC 000099 R BUREAU OF LAND MANAGEMENT 344538 R C J NORGREN & V J SCHAAF, TRSTES 348240 R CAROLYN B BRUENN 338555 R CAROLYN RUTH MCARTHUR 120184 R CHARLES T ZIMMERMAN 337898 R CHARLOTTE BLISS CLAYTON 346275 R CHARLOTTE J NORGREN 338543 R CLARAL & WILLIAM LLOYD FARIS 348233 R CLARENCE R MOTIS 296256 R COLORADO NATL BK TRSTE 346238 R DALE R SCHMEECKLE 348237 R DANIEL J MOTIS 324530 R DEAN NOLIE MATTHEWS 346259 R DELAND TODD CASTOR 338625 R DELBERT D CASTOR 323706 R DENNIS D BRINOELSON AND 323&34 R DIXIE B ACKMAN 348291 W DON SELF 346291 R DON SELF 3235'9 R DONALD ALBERT ZORN 323643 R DORIS E KINDT 338891 R DORIS VANGRAEFSCHEPE 328822 R EDITH B FRITZ 3235'2 R EDITH C LOUDDER 346246 R EDWARD DEANE MOTIS 344506 R EDWARD RADEMACHER AND 323684 R EDWIN & MURIEL MCLAUGHLIN 3245:12 R ELLEN S HOLMES 323597 R ELNA KIBBEN 323685 R ELSIE M ACKMAN 337685 R ERMA JEAN BERGENDAHL 338899 R ERMA JEAN PALVEN 323569 R EUGENE W ENDORF 312054 R EWING INVESTMENT COMPANY 337697 R FARMERS STATE BANK, TRUSTEE 338895 R FERMA C MANWEILER 338559 R FIRST INTERSTATE BK, TRUSTEE 338889 R FLORENCE ISABELLE STAMM 338560 R FLORENCE SELANDER 338893 R FORREST F HAMILTON 323548 R FORT MORGAN CONSOLIDATED 338887 R FRANCIS MAUDE KARNS 323878 R FRANK F SWEIGARD 006556 0 FRANK H WALSH 006558 W FRANK H WALSH 006556 R FRANK H WALSH 348270 R FRANKLIN G STRANSKY 324499 R FREDA R ENGEL ESTATE 3235f.3 0 GAIL SIEGAL 338551 R GARY G LAGER 32354 0 GAY MILDRED CURTISS-LUSHER 3482E 6 R GAYETTA F OUENEMOEN 348417 R GAYLE I LEBSACK TRUSTEE 3235E 7 R GENE V & DOROTHY L CURLEE 3389E 3 R GEORGE L LINDSEY 33763'4 0 GEORGE W AINSWORTH 32363'•1 R GERTRUDE J GILBERT 293335 0 GOOLSBY BROTHERS & ASSOC 346271 R GRAHAM A O'CONNOR 3462` 7 R GREELEY GREASEWOOD OIL CO 3241(5 R HARRY RICHARD HIBBS II 3385f6 R HELEN M MCCULLOUGH ..,eneo_ ,eoo n_1OA i0/9NOQ n5•nnP Pa 36 OP 45 % UNIT TOTALS 0.0004195 0.0039809 0.0000073 0.0000636 0.0000093 0.0000248 0.0014424 0.0000047 0.0000087 0.0000087 0.0000187 0.0003740 0.0000874 0.0000190 0.0010017 0.0092297 0.0014388 0.0003053 0.0000186 0.0002307 0.0001449 0.0000483 0.0540549 0.0002984 0.0000041 0.0000381 0.0000844 0.0018094 0.0001146 0.0000747 0.0000008 0.0001908 0.0000245 0.0000008 0.0000018 0.0000211 0.0000211 0.0038776 0.0000847 0.0000217 0.0000031 0.0000282 0.0004978 0.0002783 0.0000217 0.0000211 0.0000008 0.0005736 0.0000764 0.0000381 0.0002845 0.0001695 0.0013888 0.0004715 0.0000093 0.0000740 0.0016335 0.0004715 0.0001493 0.0008190 0.0000381 0.0004715 0.0015259 0.0006190 0.0002479 0.0036606 0.2285207 0.0004194 0.0000013 0.0000305 0.0001340 0.0000016 0.0008318 0.0000219 0.0005188 0.0008153 0.0000874 0.0000943 0.0000521 0.0004987 0.0000013 0.0000002 0.0000118 0.0001493 III Al 4 n .nnr JLJ.7t'O R nvnlcn C 19VR I nut - 346202 R HOMER EARL SELF, JR 324525 R HORACE M & JOHN GAINS CO-TRSTE 1479;•1 0 HOWELL SPEAR 338552 R INGA SVEA OLSSON LAGER 34004 8 R IRMA J ALLEN 324101 R J CHALMERS EWING 34627'3 R J CHALMERS EWING AND 323571 R J H JONES, JR 331619 R J ROBERT NICOLA TRUSTEE 3385;.9 R .1 V BOGGS 323578 R JAKE WOLF & L STUMBAUGH, CO CON 338559 W JAMES B MCNAY 317916 0 JAMES B & NANCY L MCNAY, JT 317916 R JAMES S & NANCY L MCNAY, JT 324407 R JAMES H ELLIFF 3241(4 R JAMES KERR HIBBS 340317 R JANE A & JOHN S WAGNER 338549 R JANICE CHEAIRS HOFFMAN 338544 R JEANNE EVANS GRAVES 3385'57 W JEFFREY EVANS MODESITT 33858.7 R JEFFREY EVANS MODESITT 338777 0 JERRY W WEBB 323656 R JIM D ANDERSON 338542 R JOAN LEE CHEAIRS 346279 R JOANNE P MACKAY 293384 0 JOAO E CARDOSO 3244f 8 R JOHN E ELUFF 3377(0 R JOHN F KOTOUC 03601'3 R JOHN H WILSON II 340049 R JOHN HERBERT SEVERS 3241C3 R JOHN WILUAMS HIBBS 323678 R JOYCE MILLARD-HOIE 338888 R KAREN KESTER 324853 R KATHRYNI3 YAHN 323580 0 KELLY THOMASON SCHMIO 323570 R KENNETH K ENDORF 3236f 3 R KENNETH L UTTLEFIELD 338540 R KENNETH & MARY LOU BOHNS 320958 0 KEY PRODUCTION COMPANYINC 3240E5 R KIMBERLY MCKEE EATON 3240(7 R LAWRENCE C EATON 346278 R LAWRENCE F. WOMACK 345675 R LENA UNDSEY, TRUSTEE 325513 R LENDYL J WALKER 345669 R LEONE A CAREY, TRUSTEE 348155 R LILI LEE JENNINGS TRUSTEE 346274 R LILLIAN M ARMIT 338566 R LINDA JEFFREY, SUC TRUSTEE 323667 R LINDA I ANDERSON 338778 0 LLOYD ALWRAN 337684 R LLOYD K COX 328255 R LMA ROYALTIES LTD 324525 R LOIS M GATES 323680 R LOLA M FRANCIS 338541 R LUC ILLE P BOLLMAN 338577 R MADELEN E LUTIN 323668 R MARGARET ANDERSON 338892 R MARILYN .1 CARMICHAEL 346277 -R MARILYN .1 SAMBER 338564 R MARJORIE LUTIN VANT 340051 R MAROUOKETA RENKEL 337695 R MARTHA BUSS DUNCAN 346272 R MARY ALICE GUENZEL 346264 R MARY ANN MOTIS RITZ 323551 0 MICHAEL LANCE THOMASON 308554 R MILDRED G EVANS, TRUSTEE 018493 R MOBIL OIL CORPORATION 12224) R MORENERGY EXPLORATION CO 12224) 0 MORENERGY EXPLORATION CO 32357 5 R NANCIE ZORN SHELLENBAUM 32409.3 R NANCY LEIGH EATON 323583 0 NATHAN L ANDERSOHN 331613 R NICOLA PROPERTIES 345671) R NORMA SULLIVAN, TRUSTEE 00110' R NORTH CENTRAL OIL CORP 30472!1 0 NORWEST BANK WY CASPER TRSTE 304720 0 NORWEST BANK WY CASPER TRSTE 324589 R 0 C LUTENER 070665 0 0 L RICKARD 292950 0 OSCAR STRONGIN 323689 R OWNERS ROYALTY POOL INC 324600 R PATRICIA PETTENGILL 338565 R PATTY JEANE & MARK H THOMAS, J/T 324102 R PAUL H & PENNY E HANCOCK 3488911 R PAULINE & EARL E STEFFEN, NT 33788:1 R PENNY ANN EATON HANCOCK 324665 R PETER 14 GUERRERO 324607 R PETERSBURG HOSPITAL INC .........� .. .Cnn .. .,.. .�. I�.n lnc Hennm no .e U.WUI £JUO 0.0000031 0.0000350 0.0000525 0.0000018 0.0000031 0.0002477 0.0000328 0.0000466 0.0000066 0.0001991 0.0000169 0.0251499 0.0033764 0.0036000 0.0002489 0.0000118 0.0002169 0.0000187 0.0001493 0.0010453 0.0001493 0.0005864 0.0002441 0.0000124 0.0000041 0.0004987 0.0002489 0.0000248 0.0000020 0.0000186 0.0000118 0.0002441 0.0002783 0.0002605 0.0002529 0.0000093 0:0000155 0.0001493 0.0080405 0.0000038 0.0000038 0.0000055 0.0012507 0.0003053 0.0004976 0.0004976 0.0000184 0.0000305 0.0002441 0.0005664 0.0002582 0.0018297 0.0000152 0.0000764 0.0012403 0.0001366 0.0002441 0.0004715 0.0001146 0.0001386 0.0000155 0.0006031 0.0000020 0.0000008 0.0002529 0.0000241 0.0004050 0.0000080 0.0001951 0.0000282 0.0000038 0.0000418 0.0000066 0.0004976 0.0039034 0.0015170 0.0007585 0.0000305 0.0005889 0.0002839 0.0000458 0.0000152 0.0000152 0.0000003 0.0002763 0.0000035 0.0000087 0.0005660 tIna 4 n .nnr 338593 346269 346261 294099 338547 YLLI.J 342076 0 344750 0 337658 R 330127 R 3240(9 R 3388(8 R 3462E2 R 296258 R 064359 R 346255 R 3241(0 R 330076 R 338550 R 323945 0 338552 R 323573 R 346250 R 3385(1 R 341322 W 341322 R 341322 0 331620 R 3240(4 R 3235E6 R 005556 R 338553 R 323554 0 3246*6 R 324459 R 337699 R .324093 R 337701 R 338904 R 3245(1 R 346276 R 3237C7 R 3235E2 R 323677 R 324106 R 323554 0 346258 R 143425 0 143425 W 143425 R 028501 R 41� 0 R R 0 R R H STANLEY & C SULLIVAN CO P.R. R R J MILLER PARTNERSHIP RALPH W FARR, TRUSTEE RAYMOND D T@IRNEY REX C EATON IN RICHARD DALE NICKLAS, SR RICHARD TRUXAW ROBERT E OCONNELL TRSTE ROBERT E ZIMMERMAN, JR. ROBERT F MOTIS ROBERT LAWRENCE EATON ROBERT M GILBERT ROBERT M ISAAC ROGER BARTON, TRUSTEE RUTH L SULLNAN SALLIE C LUTIN SALLY C DEVORE SALLY CNIEAIRS SMITH SAMUEL P & ELIZABETH L GREEN, JT SAMUEL P & ELIZABETH L GREEN, JT SAMUEL P & ELIZABETH L GREEN, JT SHERRY N BAILEY, SUC TRUSTEE STACEY RICHARD DEAN STANLEY M BESON STATE OF COLORADO SUE ELLEN CHEAIRS TICKNOR SUE WORTHEY SUSAN GUERRERO SVEA VIRGINIA DELONG SYLVA K CLEMA THOMAS MURDOCK DEAN THOMAS 0 KOTOUC TOWN OF NEW RAYMER VERA A MATTHEWS VICKI JO SCHAAF VIOLA B BRINGELSON VIOLET M MCLAUGHLIN VIRGINIA A NIXT VIRGINIA M HICKMAN W J LANGLEY, TRUSTEE WADE E CASTOR WALSH PRODUCTION, INC WALSH PRODUCTION, INC WALSH PRODUCTION, INC WAY ENTERPRISES INC WILBURN C MADDOX WILDA M SWEIGARD WILLIAM A GIFFORD, JR., TRUSTEE WILLIAM C KIRKWOOD ZELMA HINDE 2458536 B-1523 P-724 12/20/95 05:OOP PG 38 OF 45 0.0005689 0.0005238 0.0029487 0.0000047 0.0000038 0.0005668 0.0000082 0.0001908 0.0001287 0.0000008 0.0000379 0.0020279 0.0001493 0.0002038 0.0001195 0.0005930 0.0000092 0.0000093 0.0145413 0.0021552 0.0015025 0.0000066 0.0000118 0.0004073 0.0001580 0.0000124 0.0000256 0.0000087 0.0000381 0.0000535 0.0000118 0.0000248 0.0000384 0.0000016 0.0001146 0.0017027 0.0000896 0.0002441 0:0000118 0.0016181 0.0000211 0.0085479 0.5492590 0.0006303 0.0018297 0.0003740 0.0000038 0.0000082 0.0019077 0.0000152 1.0000000 \I n V 1 n 4rtnr 2468536 8-1523 P-724 12/20/95 05:OOP PG 39 OF 45 EXHIBIT "C" LILLI FIELD UNIT AGREEMENT TRACT PARTICIPATION PERCENTAGES FOR NATIVE SUSBSTANCES lEAGI PERCENTAGE TRACT PERCENTAGE TRACT PERCENTAGE 1. 3.2219 29. .0522 57. 3.7149 2. .0175 30. .0664 58. 2.7938 3. .0350 31. .1211 59. 3.0944 4. .0350 32. .0562 60. 3.2145 5. .0386 33. .0175 61. 1.0906 6. .0440 34. 3.7233 62. .6527 7. .0457 35. 2.6032 63. 1.8905 8. .0552 36. 1.6272 64. .5225 9. .0385 37. .4665 65. .0418 10. 2.3758 38. .0437 66. .0750 11. 11.3190 39. .0512 67. .0275 12. .0951 40. .4416 68. .1227 13. 8.5779 41. .0888 69. .5797 14. .2467 42. .0281 70. .1625 15. .2144 43 .4523 71. .5840 16. 2.0140 44. .0182 72. 1.1174 17. 3.8812 45. .2561 73. .0861 18. .6123 46. .0255 74. .6198 19. 3.4231 47. 1.4838 75. 1.4273 20. 3.3902 48. 1.3143 76. .0262 21. 4.4216 49. 1.9500 77. .0618 22. 2.0681 50. .1675 78. .0819 23. 6.3817 51. 4.1402 79. .0582 24. 1.9997 52. .2764 80. .0280 25. .1175 53. .0879 81. .0546 26. .0469 54. .3991 82. .0184 27. .5279 55. 1.3439 83. .0350 28. .0588 56. 1.1599 84. .0528 TOTAL 100.0000 •Al n II 1 n .nn.• 2468536 B-1523 P-724 12/20/95 05:OOP PG 40 OF 45 $XNIBIT "D" LILLI FIELD UNIT AGREEMENT TRACT PARTICIPATION PERCENTAGES FOR STORAGE FEES IBA= PERCENTAGE TRACT PERCENTAGE TRACT PERCENTAGE 1. .8322 29. .3038 57. 4.4258 2. .0875 30. .3790 58. 4.0377 3. .1750 31. .6067 59. 4.4534 4. .1752 32. .3343 60. 4.4927 5. .2015 33. .0875 61. 2.7175 6. .2423 34. 2.3770 62. 2.6666 7. .2550 35. 1.6197 63. .8807 8. .2825 36. 1.0998 64. 1.3125 9. .2010 37. .5834 65. .2259 10. 1.3621 38. .2841 66. .3874 11. 1.9101 39. .3403 67. .1626 12. .6101 40. .2807 68. .6144 13. 4.4504 41. .4470 69. 2.3030 14. .5811 42. .1672 70. .9976 15. 1.3888 43 .3252 71. 2.3890 16. .8971 44. .0929 72. 1.1641 17. 2.0947 45. 1.5209 73. .4465 18. 1.1983 46. .1279 74. 2.4744 19. 1.1200 -47. .5111 75. 1.5152 2C. 2.0790 -48. 1.2115 76. .1528 2]. 2.3763 49. 1.0737 77. .4200 22. 1.8657 50. 1.1684 78. .5268 22. 3.1273 51. 7.6836 79. .3050 24. .9760 52. 1.8103 80. .1666 2!. .2173 53. .4846 81. .2786 2E. .3081 54. .5618 82. .0946 27. .6773 55. 2.1543 83. .1750 28. .3098 56. 2.3107 84. .2645 TOTAL 100.0000 NOV 1 A inom E)UBBR'0-1" OWNER* TYPE NAME 338897 R ALBERT MILLER. TRUSTEE 338545 R ANN CHEAIRS HAYDEN 337702 R ANN KOTOUC DUEY 345668 R ANTHONY S EVELYN KREIFELS TRSTE 330128 R ARTHUR A TURKEY 338901 R ARTHUR BEN GUERRERO 324664 R BARBARA GUERRERO 338558 R BARBARA LOU CHEAIRS PLASTER 338902 R BENNY E LINDSEY 324096 R BEVERLY MCKEE EATON 341323 R BILLY JIM & JUDY VANDAGRIFF, JT 324857 R BLAINE L WALKER 3400.50 R BOATMENS ISTNATL BK. TRUSTEE 323670 a BOOMER SOONER ONETNC 000089 R BUREAU OF LAND MANAGEMENT 344538 R C J NORGREN 8 V J SCHAAF, TRSTES 346280 R CAROLYN B BRUENN 338555 R CAROLYN RUTH MCARTHUR 120184 R CHARLES T ZIMMERMAN 337696 R CHARLOTTE BLISS CLAYTON 346275 R CHARLOTTE.' NORGREN 338543 R CLARAL & WILLIAM LLOYD FARIS 346263 R CLARENCE R MOTIS 296288 R COLORADO NATL. BK TRSTE 346268 R DALE R SCHMEECKLE 346267 R DANIEL J MOTIS 324590 R DEAN HOLE MATTHEWS 346259 R DEL ND TODD CASTOR 338825 R DELBERT D CASTOR 323706 R DENNIS D BRINGELSON AND 323664 R DIXIE B ACKMAN 348291 R DON SELF 323579 R DONALD ALBERT ZORN 323883 R DORIS E KINDT 338891 R DORIS VANGRAEFSCHEPE 328822 R EDITH B FRITZ 323572 R EDITH C LOUDDER 316268 R EDWARD DEANE MOTIS 344506 R EDWARD RADEMACHER AND 323684 R EDWIN & MURIELMCLAUGHUN 324532 R ELLEN S HOLMES 323597 R ELNA KIBBEN 323885 R ELSIE M ACKMAN 337885 R ERMA JEAN BERGENDAHL 338899 R ERMA JEAN PALVEN 323569 R EUGENE W ENDORF 312054 R EWING INVESTMENT COMPANY 337897 R FARMERS STATE BANK, TRUSTEE 338895 R FERMA C MANWEILER 336559 R FIRST INTERSTATE BK, TRUSTEE 3381389 R FLORENCE ISABELLE ST/VAM 336560 R FLORENCE SELANDER 338893 R FORREST F HAMILTON 323548 R FORT MORGAN CONSOLIDATED 338887 R FRANCIS.MAUDE KARINS 323878 R FRANK F SWEIGARD 008586 R FRANK H WALSH 346270 R FRANIOi1N 0 STRANSKY 324499 R FREDA R ENGEL ESTATE 338551 R GARY O LAGER 346256 R OAYETTA F QUENEMOEN 348417 R GAYLE I LEBSACK TRUSTEE 323587 R GENE V S DOROTHY L CURLEE 338803 R GEORGE L LINDSEY 323881 R GERTRUDE J GIL BERT 346271 R GRAHAM A O'CONNOR 346257 R GREELEY GREASEW000 OIL CO 338558 R HELEN M MCCULLOUGH 323598 R HOMER E NORTHUP 346292 R HOMER EARL SELF, JR 324525 R HORACE M & JOHN GAINS CO-TRSTE 338552 R INCA SVEA OLSSON LAGER 340048 R IRMA J ALLEN 346273 R J CHALMERS EWING AND 323571 R J M JONES, JR 331619 R J ROBERT NICOLA TRUSTEE 338539 R J V S000S 323578 R JAKE WOLF 8 L STUMBAUGH, CO CON 317916 R JAMES 8 & NANCY L MCNAY, JT 324497 R JAMES H ELLIFF 340317 R JANE A & JOHN S WAGNER 338549 R JANICE CHEAIRS HOFFMAN 338544 R JEANNE EVANS GRAVES 338557 R JEFFREY EVANS MODESITT 323688 R JIM D ANDERSON 338542 R JOAN LEE CHEAIRS 348279 R JOANNE P MACKAY 324498 R JOHN E ELLIFF 337700 R JOHN F KOTOUC % UNIT TOTALS 0.03397559 0.00003861 0.00083872 0.00842275 0.00004207 0.00019950 0.00019060 0.00007723 0.00187713 0.00018784 0.00951193 0.00234653 0.00015783 0.00026098 0.47883540 0 00355500 0.00010938 0.00016712 0.00034798 0.00751005 0.00120644 0.00030890 0.00003798 0.00068229 0.00113925 0.00003798 0.00002533 0.00087127 0.00067127 0.0314520D 0.00045825 0.00002831 0.00030512 0.00458414 0.00355500 0.00034917 0.00022884 0.00003798 0 00550825 0.00083875 0.00016712 0.00162130 0.00091650 0.01428231 0.00485386 0.00008413 0.00098478 0.00451994 0.00455366 0.00081780 0.00711000 0.00018712 0.00485368 0.01334744 0.00711000 0.00127444 0.00188411 0.00005922 0.00013369 0.00002533 0.00087500 0.00883800 0.00224948 0.00167713 0.00051343 0.00005922 0.00000946 0.00081780 0.03074887 0.00002631 0.00079802 0.00002533 0.00002631 0.00087500 0.00042066 0.00025487 0.00081780 0.00015258 0.02382333 0.00077225 0.00889430 0.00007723 0.00061780 0.00081780 0:00108880 0.00003861 0.00010936 0.00077225 0.00063672 11/111 1 n ♦nnr 346261 R 338547 R 036023 R 340049 R 323678 R 336888 R 324653 R 323570 R 323893 R 338540 R 324095 R 324097 R 348278 R 345875 R 325513 R 345889 R 348155 R 348274 R 338589 R 323867 R 337884 R 328255 R 324528 R 323680 R 338941 R 338577 R 323668 R 338692 R 348277 R 338584 R 340051 R 337895 R 346272 R 348264 R 308554 R 018498 R 122240 R 323575 R 324088 R 331618 R 345870 R 001107 R 324589 R 323885 R 324608 R 338589 R 346898 R 337883 R 324689 R 324807 R 022135 R 3376838 R 330127 R 324099 R 338898 R 348282 R 296288 R 064389 R 348265 R 324100 R 330038 R 338550 R 338582 R 323573 R 348260 R 339581 R 341322 R 331620 R 323586 R 005586 R 338563 R 324868 R 324489 R 337899 R 337701 R 338904 R 324591 R 346278 R 323707 R 323562 R 323677 R 346258 R 143425 R 028501 R JOHN H WILSON II JOHN HERBERT REVERS JOYCE MILLARD-HOIE KAREN KESTER KATHRYN B YAHN KENNETH K ENDORF KENNETH L LITTLEFIELD KENNETH & MARY LOU BOHNS KIMBERLY MCKEE EATON LAWRENCE C EATON LAWRENCE F. WOMACK LENA UNDSEY, TRUSTEE LENDYL J WALKER LEONE A CAREY, TRUSTEE LILI LEE JENNINGS TRUSTEE LILLIAN M ARMIT LINDA JEFFREY, SUC TRUSTEE UNDA L ANDERSON LLOYD K COX LMA ROYALTIES LTD LOIS M GATES LOLA M FRANCIS LUCILLE P BOLLMAN MADELEN E LUTIN MARGARET ANDERSON MARILYN J CARMICHAEL MARILYN J SAMBER MARJORIE LUTIN VANE MAROUOKETA RENKEL MARTHA BLISS DUNCAN MARY ALICE GUENZEL MARY ANN MOTIS RITZ MILDRED G EVANS, TRUSTEE MOBIL OIL CORPORATION MORENERGY EXPLORATION CO NANCIE ZORN SHELLENBAUM NANCY LEIGH EATON NICOLA PROPERTIES NORMA SULLNAN, TRUSTEE NORTH CENTRAL OIL CORP O C LUTENER OWNERS ROYALTY POOL INC PATRICIA PETTENGILL PATTY JEANE & MARK H THOMAS, JIT PAUUNE & EARL E STEFFEN, JIT PENNY ANN EATON HANCOCK PETER M GUERRERO PETERSBURG HOSPITAL INC PROSPECT COMPANY RALPH W FARR, TRUSTEE RAYMOND D TURNEY REX C EATONIIII RICHARD DALE NICKLAS, SR RICHARD TRUXAW ROBERT E OCONNELL TRSTE ROBERT E ZIMMERMAN, JR. ROBERT F MOT18 ROBERT LAWRENCE EATON ROBERT M GILBERT ROBERT M ISAAC RUTH L SULUVAN SALLIE C LUTIN SALLY C DEVORE SALLY CHEAIRS SMITH SAMUEL P & ELIZABETH I GREEN, JT SHERRY N BAILEY, SUC TRUSTEE STANLEY M BESON STATE OF COLORADO SUE ELLEN CHEAIRS TICKNOR SUSAN GUERRERO SVEA VIRGINIA DELONG SYLVA K CLEMA THOMAS 0 KOTOUC TOWN OF NEW RAYMER VERA A MATTHEWS VICKI JO SCHAAF VIOLA B BRINGELSON VIOLET M MCLAUGHUN VIRGINIA A NIXT WADE E CASTOR WALSH PRODUCTION, INC WAY ENTERPRISES INC -R -WILDA M SWEIGARD WILLIAM A GIFFORD, JR., TRUSTEE ZELMA HINDE 24685c16 B-1523 P-724 12/20/95 05:OOP PG 42 OF 45 0.00009024 0.00015783 0.00109980 0.00355500 0.03056304 0.00008413 0.00013205 0.00081780 0.00003357 0.00003357 0.00021875 0.01288825 0.00234853 0.00458414 0.00458414 0.00078403 0.00013389 0.00109980 0.00268548 0.00401079 0 00008685 0.03083875 0.00332980 0.00039361 0.00109980 0.00485386 0.00120844 0.00039381 0.00013205 0.00250335 0.00009024 0.00003798 0.00100750 0.03758800 0 00004350 0.00030512 0.00003357 0.00025467 0.00458414 0.00855635 0.00013389 0.03031938 0.00006885 0.00008885 0.00355500 0.00003357 0.00019950 0.00213909 0.01440481 0.01223880 0.00004207 0.00003357 0.00485386 0.00037975 0 03088229 0.00069597 0.00000798 0 00033569 0.00630998 0.00081780 0.00049424 000218650 0.00013581 0.00003881 0.01428790 0.00025487 0.00387490 0.00885600 0.00003861 0.00019950 0.03018712 0.00171458 0.00083672 0.00077110 0.00002533 0.00120844 0.01113200 0.00125550 0.00109980 0.00087127 0.00295471 0.00401079 +4r -ha''' 0.00017484 0.00037975 0.00006685 1.00003000 2468536 8-1523 P-724 12/20/95 05:00P PG 43 OF 45 $XHIBIT "D-2" LILLI FIELD UNIT AGREEMENT LISTING OF SURFACE OWNERS. TRACTS OWNED AND TOTAL ACRES OWNED 0011069 BUREAU OF LAND MANAGEMENT 335625 DELBERT D CASTOR 344258 WADE E CASTOR 345259 DELAND TODD CASTOR XXKXXX COLBY-N VANCLEAVE AND SANDRA K VANCLEAVE, J/T 50985 WCR 135 NEW RAYNER, CO 80742 345668 ANTHONY & EVELYN KRIEFELS, TRUSTEES 344506 EDWARD C RADEMACHER AND MADGALEN RADEMACHER, TRUSTEES 323706 DENNIS D AND NANCY L BRINGELSON, J/T 346273 J CHALMERS EWING AND MARIE F EWING, J/T 338888 KAREN NESTER 338891 DORIS VANGRAEFSCHEPE 344538 CHARLOTTE J NORGREN AND VICKI JO SCHAAF, TRUSTEES UNDER ALLEN BOX TRUST 346898 PAULINE AND EARL E STEFFEN, J/T 1, 2, 3, 4, 5, 6, 10, 11, 12, 17, 18, 19, 20, 40 ac of 27, 28, 29, 30, 32, 34, 36, 37, 41, 42, 43, 44, 48, 49, 50, 51, 52, 56, 58, 40 ac of 59, 60, 61, 62, 67, 68, 140.04 ac of 69, 71, 40 ac of 72, 73, 74, 80 ac of 75, 77, 78, 80, 81, 84 TOTAL ACRES 6397.54 1/3RD OF (7, 8, 9, 14, 15, 16, 25, 26) TOTAL ACRES 1/3RD OF (7, 16, 25, 26) TOTAL ACRES 1/3RD OF (7, 16, 25, 26) TOTAL ACRES 13, 21, 22, 23, 40 24, 40 ac of 27, TOTAL ACRES 8, 9, 8, 9, 14, 15, 14, 15, ac of 99.34 40 ac of 24, 38, 20 ac of 40 TOTAL ACRES 39, 60ac of 40 TOTAL ACRES 31, 35, 45, 47 TOTAL ACRES 33 TOTAL ACRES AMQ 1/4TH of (46, 54, 55) TOTAL ACRES 94.51 1/4TH of (46, 54, 55) TOTAL ACRES MAI 1/4TH of (46, 54, 55), and 20 ac of 76 TOTAL ACRES ]11.53 1/4TH of (46, 54, 55) TOTAL ACRES ISOM DIM 2 2468536 B-1523 P-724 12/20/95 05:OOP PG 44 OF 45 005566 STATE OF COLORADO 53 TOTAL ACRES ]S0.00 333897 ALBERT MILLER, TRUSTEE 57, 120 ac of 59 TOTAL ACRES 2]@,g2 324657 BLAINE L WALKER 1/2 of (63, 70.6 ac of 64, 65, 66) TOTAL ACRES 2shaa 325513 LENDYL J WALKER 1/2 OF (63, 70.6 ac of 64, 65, 66) TOTAL ACRES 235.30 338902 BENNY E LINDSEY 1/2 of (80 ac of 64, 82) TOTAL ACRES DAM 338903 GEORGE L LINDSEY 1/2 OF (80 ac of 64, 82) TOTAL ACRES _Q2 338904 TOWN OF NEW RAYNER 9.4 ac of 64 TOTAL ACRES �_4Q 340317 JANE A AND JOHN S WAGNER, 60.54 ac of 69 J/T TOTAL ACRES 111.54 345675 LENA LINDSEY, TRUSTEE OF THE 70, 120 ac of 72 HARRY AND LENA LINDSEY TRUST TOTAL ACRES 322.48 324107 GAYLE I LEBSACK, TRUSTEE 40 ac of 75, 79 TOTAL ACRES ]60.00 346275 CHARLOTTE J NORGREN 1/3RD of (40 ac of 75, 83) TOTAL ACRES !QS 346276 VICKI JO SCHAAF 1/3RD of (40 ac of 75, 83) TOTAL ACRES 40.00 346277 MARILYN J SAMBER 1/3RD of (40 ac of 75, 83) TOTAL ACRES ___ X):XXXX MARGARET L BOX 20 ac of 76 BOX 509 BRIDGEPORT, NE 69336 TOTAL ACRES GRAND TOTAL ACRES 11,430.74 2468536 B-1523 P-724 12/20/95 05:00P PG 45 OF 45 EXHIBIT "D" LILLI FIELD UNIT OPERATING AGREEMENT WORKING INTEREST OWNERS. ADDRESSES. AND OWNERSHIP 006556 FRANK H. WALSH P.O. BOX 30 STERLING, CO 80751 970-522-1839 143425 WALSH PRODUCTION, INC. P.O. BOX 30 STERLING, CO 80751 970-522-1839 338557 JEFFREY EVANS MODESITT 6037 S. BELLAIRE WAY LITTLETON, CO 80121 303-741-2961 3'x8569 JAMES B. MCNAY 208 DELMAR STERLING, CO 80751 970-522-1839 or 970-522-7140 341322 SAMUEL P. GREEN AND ELIZABETH L. GREEN, J/T 12310 BEVERLY LANE STERLING, CO 80751 970-522-1839 or 970-522-0032 341323 BILLY JIM VANDAGRIFF AND JUDY VANDAGRIFF, J/T 13040 CR 33.5 STERLING, CO 80751 970-522-1839 or 970-522-9731 346291 DON SELF 11733 TIVOLI N.E. ALBUQUERQUE, NM 87111 505-294-6089 27.73568% 66.323636% .119460% 2.990912% 1.730520% 1.097314% .002478% November 10, 1995 Hello