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HomeMy WebLinkAbout20220720.tiffRECEIVED FEB 2 4 2022 WELD COUNTY rOMMlSSlpNERS VERDAD RESOURCES LLC NADOA Model Form Division Order (Adopted 9/95) VERDdD 5950 SHERRY LANE, SUITE 700 Date: 02/23/2022 RESOURCES DALLAS, TX 75225 Effective Date: FIRST SALES 11/01/2021 F0Pz os - l as - SoSS1 ) 05 - \ 3 - 0588x) 054-Nt a3 -508453 05 - ‘13 - 5 0 $alo Property Name: � KBL 1930-8H, KBL 1930-9H, KBL 1930-11H, KBL 1930-12H --1` Operator: VERDAD RESOURCES, LLC Property Description: S2 SEC 18, ALL SEC 19, ALL SEC 30 - TOWNSHIP 2 NORTH - RANGE 63 WEST County and State: WELD/COLORADO Production: x Oil x Gas Both: Owner No. Owner Name Interest Type NRI Decimal 6043 1150 WELD BOARD GREELEY 0 COUNTY OF STREET CO COUNTY COLORADO COMMISSIONERS RI 0.00099864 80631 The undersigned certifies the ownership of the decimal interest in production or proceeds as described above payable by Verdad Resources, LLC (Verdad). Verdad shall be notified, in writing, of any change in ownership, decimal interest, or payment address. All such changes shall be effective the first day of the month following receipt of such notice. Verdad is authorized to withhold payment pending resolution of a title dispute or adverse claim asserted regarding the interest in production claimed herein by the undersigned. The undersigned agrees to indemnify and reimburse Verdad any amount attributable to an interest to which the undersigned is not entitled. Verdad may accrue proceeds until the total amount equals $100.00, or pay annually, whichever occurs first, or as required by applicable state statutes. This Division Order does not amend any lease or operating agreement between the undersigned and the lessee or operator or any other contracts for the purchase of oil or gas. In addition to the terms and conditions of this Division Order, the undersigned and Verdad may have certain statutory rights under the laws of the state in which the property is located. Special Clauses: SIGNATURE: BOARD OF VVU 5 CO , NTY eRMSeyENEIRS, CHAIR ATTEST 0 Cte tiR CLE5X BY: MAR 72022 DEPUTY CLERK 0 THE BOAR Weld County Government P.O. Box 758 Greeley, CO 80632-0758 hone: 970-400-4225 x: 970-336-7233 -oilandgasleasing@weldgov.com ID: 84-6000813 Federal Law requires you to furnish your Social Security or Taxpayer Identification Number, Failure to comply will result in additional tax withholding and will not be refundable by Verdad. Cons.-, k Rctnckn 3 _'1- aoaa PLEASE RETAIN THIS COPT( Zr � 7 -ate 2022-0720 () Schedule 1(a) Amended Dnlling and Division Order Title Opinion dated January 9, 2020 Tiomehoi & Hack LLC Township 2 North, Range 63 West Section 18: S/2 Section 19. All Section 30: All Tract Breakdown Division of Interest Well Name. KBL 1930-8H, KBL1930-9H, KBL 1930-11H, KBL 1930-12H Total spacing unit acreage: 1,633 47 Formations Covered: Codell Niobrara Interes: Owner Name Interest Type Tract No Tract Acres Lease No. Leased Mineral Int Unleased Mineral Int Landowner Roy Lease Royalty Royalty Overtidng Royalty WI (Prop Red.) Lease ORRI Leasehold WoAdng Interest Lease WI Lease LRI Burden ORRI Burden on WI Lease NRI Lease NRI Rate Unit WI Unit NRI As Originally Calculated as Unleased Interests Weld County, State of Colorado UL 22 7.25 100.000000% 100 000000% 0 000000% 0.000000% 100 000000% 100 000000% 0 443840% 0 443840% As Leased by OGL 4566660 dtd 2.10.2020 Weld County, State of Colorado Verdad Resources LLC LRI WI 22 22 7 25 7.25 4566660 4566660 100 000000% 100.000000% 22 500000% 100 000000% 100 000000% 22 500000% 0 000000% 77 500000% 77 500000% 0 000000% 0 443840% 0 099864% 0 343976% Interest Breakdown Weld County, State of Colorado Verdad Resources LLC Int Type LRI W Tract No OGL Tract Acres Unit Acres TPF Mineral Int% 22 4566660 7.25 1,633.47 0.00443840 100.000000% 22 4566660 7 25 WI% 1.633 47 0 00443840 100.000000% 100 000000% RI% 22.500000% ORRJ% WI% Tract WI Tract NRI Unit WI Unit NRI 0.00000000 0.22500000 0.00000000 0.00099864 77.500000% 1 00000000 0 77500000 0.00443840 0 00343976 0 443840% 0 443840% 0 443840% 0 443840% TRUE TRUE Jessica Reid From: Sent: To: Cc: Subject: Attachments: Lindsay Grose <LGrose@VerdadResources.com> Wednesday, February 23, 2022 2:06 PM CTB-Oil and Gas Leasing Kelsey Taylor RE: [External]:Weld County - Division Orders & Calculations Contact 6043 Weld County Colorado - Emailed 2.23.2022 (4mos 1st Sales) - REVISED.pdf Caution: This email originated from outside of Weld County Government. Do not click links or open attachments unless you recognize the sender and know the content is safe. Let's go with March payment. I don't want to rush your work & would definitely prefer to have it paid correctly for y'all right away. I've updated the DO — Weld County's interest itself isn't any different than the original DOs from Feb. 10`", I've just updated the l" Sales effective date & today's date. Thanks, Liodsa4 arose From: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Sent: Wednesday, February 23, 2022 10:07 AM To: Lindsay Grose <LGrose@VerdadResources.com>; CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Cc: Kelsey Taylor <KTaylor@VerdadResources.com> Subject: [External]:Weld County - Division Orders & Calculations Contact Whatever is easier for you. Sometimes (not necessarily from Verdad) we start getting paid on wells before we even receive a DO and then once we submit it the operator makes adjustments, if necessary. We're flexible in that aspect because we know if it's not accurate right out of the gate, it will get corrected and we will get compensated accordingly. Regards, Jess Reid Deputy Clerk to the Board Weld County 1150 O Street Greeley, CO 80631 tel: 970-400-4212 Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. 1 From: Lindsay Grose <LGrose@VerdadResources.com> Sent: Wednesday, February 23, 2022 9:03 AM To: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Cc: Kelsey Taylor <KTaylor@VerdadResources.com> Subject: RE: [External]:RE: [External]:RE: Weld County - Division Orders & Calculations Contact Caution' This email originated from outside of Weld County Government. Do not click links or open attachments unless you recognize the sender and know the content is safe. Hi Jess, I reached out to confirm the 1" sales dates with our Ops group & 1" sales occurred in November 2021 rather than October 2021, referenced in the Division Orders I sent you on the 10`h, so if we need to push payment out to March, we would still be within the 4mos. requirement to submit revenues following 1" sales. If you'd prefer that we wait until you're able to review & I provide an updated 1" Sales date on the Division Order, I'm happy to get that to you today. Let me know how you'd like to proceed. Thanks, LindsAL{ rose From: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Sent: Wednesday, February 23, 2022 9:53 AM To: Lindsay Grose <LGrose@VerdadResources.com>; CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Cc: Kelsey Taylor <KTaylor@VerdadResources.com> Subject: [External]:RE: [External]:RE: Weld County - Division Orders & Calculations Contact Hi Lindsay, I'm sorry I haven't had a chance to look at this. I should be able to early this afternoon. Regards, Jess Reid Deputy Clerk to the Board Weld County 1150 O Street Greeley, CO 80631 tel: 970-400-4212 Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. 2 From: Lindsay Grose <LGrose@VerdadResources.com> Sent: Wednesday, February 23, 2022 8:47 AM To: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Cc: Kelsey Taylor <KTaylor@VerdadResources.com> Subject: RE: [External]:RE: Weld County - Division Orders & Calculations Contact Importance: High Caution: This email originated from outside of Weld County Government. Do not click links or open attachments unless you recognize the sender and know the content is safe. Good Morning Jess, This is last call for February payment for Weld County's interest in the KBLs — we do need confirmation from Weld County (with or without the executed DO) that there are no objections to be able to release payment to avoid having to reconcile any corrections in future months. Thanks, Lividsay Girosc From: Lindsay Grose Sent: Tuesday, February 22, 2022 7:46 AM To: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Subject: RE: [External]:RE: Weld County - Division Orders & Calculations Contact Hi Jess, I wanted to follow-up & make sure you didn't have any questions or issues with the interest laid out in my previous email. We're scheduled to start check processing today & want to make sure we get Weld County paid on the KBLs, so long as everything looks to be in line from your end as well. Please let me know as soon as you can. Have a great day! Thanks, Lividsay rose From: Lindsay Grose Sent: Thursday, February 10, 2022 11:17 AM To: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Subject: RE: [External]:RE: Weld County - Division Orders & Calculations Contact Importance: High Hi Jess, Apologies for the delayed response to provide Weld County with their KBL 1930 details. Attached, please find DOs, title pages, lease & calculations for Weld County's interests in the KBL 1930 DSU wells in Weld County, Colorado. Please note, at the time of our Title Opinion, Weld County's specific tract interest was determined to be unleased, however, as noted by the attached OGL, this interest was leased to Verdad Resources at 22.5% royalty prior to 1" Sales on these wells — 1St Sales occurred in October 2021. 3 The KBL 1930 DSU includes the KBL 1930-08H, KBL 1930-09H, KBL 1930-11H & KBL 1930-12H wells — spaced as follows: SPACING and UNIT INFORMATION Distance from completed portion of proposed wellbore to nearest completed portion of offset welbore permitted or completed in the same formation: 612 Feet Distance from Completed Portion of Welibore to Nearest Unit Boundary 460 Feet (Enter 5280 for distance greater than 1 mile.) Federal or State Unit Name (if appl): Unit Number: SPACING & FORMATIONS COMMENTS Spacing Order Information: Township 2 North . Range 63 West Section 18: S/2 Section 19: All Section 30: All tf this Farm 2 is associated with a Dries and Spacing Unit application, provide docket number. 180100025 OBJECTIVE FORMATIONS QuisKalixtramiligaiki balitignidade litatiAcreneissiiiined to Well Ilatraelimatianittagasai I0GRARA NBRR J 4074326 T1600 -- 1 Per title, the spacing unit encompasses a total of 1633.47 acres, more or less. Weld County's interests fall in Tract No. 22 — I've included the DSU calculations directly from the Title Opinion as well as the spreadsheet breakdown from the title attorney as well. Please reach out if you have any questions. We are scheduled to release funds this month for Weld County's interests to abide by the 4mo. terms of payment within the lease. Thanks, Lindsay &irosc From: Lindsay Grose Sent: Monday, January 31, 2022 10:10 AM To: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Subject: RE: [External]:RE: Weld County - Division Orders & Calculations Contact Hi Jess, Perfect, I will be sending you our KBL 1930 DOs, calculations & affiliated lease/title details this week for February payment. Thanks, Lividsay 6rvse From: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Sent: Monday, January 31, 2022 10:09 AM To: Lindsay Grose <LGrose@VerdadResources.com> Subject: [External]:RE: Weld County - Division Orders & Calculations Contact Hi Lindsay, Yes, this is still the correct email to send all oil and gas lease related items. Regards, Jess Reid Deputy Clerk to the Board 4 Weld County 1150 O Street Greeley, CO 80631 tel: 970-400-4212 Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Lindsay Grose <LGrose@VerdadResources.com> Sent: Monday, January 31, 2022 9:04 AM To: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Subject: Weld County - Division Orders & Calculations Contact Caution: This email originated from outside of Weld County Government. Do not click links or open attachments unless you recognize the sender and know the content is safe. Good Morning, I wanted to reach out & make sure this was still the correct email to send new division orders & calculations with regards to Weld County's interests in oil & gas wells. Please let me know if anything has changed so we can update our records accordingly & provide the required information in a timely manner. Thanks, Livprose Lindsay Grose Division Order Analyst Verdad Resources, LLC 5950 Sherry Lane, Suite 700 Dallas, Texas 75225 P: 214.838.2765 F: 214.357.9358 Email: Igrosegverdadresources. com Owner Relations: askverdadglislv.com 5 TJORNEHOJ & HACK LLC ATTORNEYS AT LAW July 14, 2020 SECOND AMENDED DRILLING AND DIVISION ORDER TITLE OPINION Verdad Resources LLC 401 17'h Street, Suite 925 Denver, Colorado 80202 Attention: Mr. Dave Sullivan RE: KBL 1918 and KBL 1930 Pads Township 2 North. Range 63 West, 6d P.M. Section 18: S/2, SW/4NW/4 Section 19: All Section 30: All Township 2 North, Ranee 64 West, 6'h P,M. Section 13: E/2SE/4, SE/4NE/4 Section 24: E/2 E/2 Section 25: E/2E/2 Weld County, Colorado certified to July 30, 2019 Ladies and Gentlemen: Mt/10130 VtNtr • bIO1,iwm trill twit a'i • VViU to • �I-t�gN,lttfi,i2�}- t^✓N • tant9) KrnUN t' .7L 5Iimml VN IGl • AWL 5Vrt0N W. RH' (AINDININti tUV).Aft AOaft - In accordance with your request, we have conducted an examination of title to the following described lands located in Weld County, Colorado (the "Subject Lands"), for drilling and division order purposes, and we give you our opinion thereon as follows: DESCRIPTION Township 2 North,. Range 63 West. 6" P.M, Section 18: S/2, SW/4NW/4 Section 19: All Section 30: All 636 COFFMAN STREET, SUITE 301 • LONGMONT CO 80501 PHONE 303.682.2351 • WWW.THLAWOROUP.COM Verdad Resources LLC July 14, 2020 Page 2 Township 2 North, Range 64 West, 6th P M Section 13 E/2SE/4, SE/4NE/4 Section 24 E/2E/2 Section 25 E/2E/2 containing 2,115 49 acres, more or less' Note For purposes of this Opinion, we have divided the Subject Lands into the twenty-eight (28) tracts descnbed below Tract 1 Township 2 North, Range 63 West, 6t' P M Section 18 W/2SW/4, lying North of the centerline of the ROW line of U S Interstate 76 -and- Section 18 SW/4NW/4 containing 112 30 total acres, more or less Tract 2 Township 2 North, Range 63 West, 6th P M Section 18 W/2SW/4, lying South of the centerline of the ROW line of U S Interstate 76 containing 16 92 acres, more or less Tract 3 Township 2 North, Range 63 West, 66 P M Section 18 E/2SW/4, lying North of the centerline of the ROW line of U S Interstate 76 containing 20 85 acres, more or less I See Title Comment and Requirement No 2 Verdad Resources LLC July 14, 2020 Page 3 Tract 4 Township 2 North, Range 63 West, 6th P.M. Section 18: E/2SW/4, lying South of the centerline of the ROW line of U.S. Interstate 76 containing 58.49 acres, more or less Tract 5 Township 2 North, Range 63 West, 6th P.M. Section 18: SE/4 containing 158.42 acres, more or less Tract 6 Township 2 North, Range 63 West, 6th P.M. Section 19: All that part of the N/2 and SE/4, lying North and West of the Chicago, Burlington & Quincy Railroad Right -of - Way containing 290.74 acres, more or less Tract 7 Township 2 North, Range 63 West, 6th P.M. Section 19: that part of the SW/4 described as Lot A of Recorded Exemption No. 1303 -19 -3 -RE -4346 at Reception No. 3373994 containing 6.54 acres, more or less Tract 8 Township 2 North, Range 63 West, 6th P.M. Section 19: that part of the SW/4 described as Lot B of Recorded Exemption No. 1303 -19 -3 -RE -4346 at Reception No. 3373994 containing 16.12 acres, more or less Tract 9 Township 2 North, Range 63 West, eh P.M. Section 19: that part of the SW/4 described as Lot A of Recorded Verdad Resources LLC July 14, 2020 Page 4 Exemption No. 1303 -19 -3 -RE -2864 at Reception No 2813264 contammg 20 77 acres, more or less Tract 102 Township 2 North. Range 63 West, 6'h P M Section 19• SW/4, except for that parcel conveyed to the Burlmgton & Colorado Railroad Company by Warranty Deed at Book 97, Page 235, recorded at Reception No 38106 and bemg descnbed as Tract 12 below, and except for that parcel described by Warranty Deed at Reception No 2296642, more fully described herein as Tracts 7, 8 and 9 above containing 121 77 acres, more or less Tract 11 Township 2 North. Range 63 West, 6th P M Section 19: all that part of the E/2 lymg South of the Chicago, Burlington & Quincy Railroad Right -of -Way containing 181 28 acres, more or less Tract 12 Township 2 North. Range 63 West. 6th P M Section 19. a strip of land 200 ft. wide over and across Section 19 as descnbed in Warranty Deed at Book 97, Page 235, recorded at Reception No 38106 containing 22 70 acres, more or less Tract 13 Township 2 North. Range 63 West. 6th P M Section 30 that part of the W/2W/2NW/4 descnbed as Lot A of Recorded Exemption 1303-30-2-AMRE210, recorded at Reception No 1689917 contammg 2 00 acres, more or less 2 See Title Comment and Requirement No 8 regarding inclusion of the Weld County right-of-way in this tract Verdad Resources LLC July 14, 2020 Page 5 Tract 14 Township 2 North, Range 63 West, 6th P.M. Section 30: W/2W/2NW/4, less and except Lot A of Recorded Exemption 1303-30-2-AMRE210, recorded at Reception No. 1689917, described herein as Tract 13 above containing 43.72 acres, more or less Tract 153 Township 2 North, Range 63 West, 6th P.M. Section 30: the N/2 of Section 30, less and except Tracts 13, 14, 16, 17 and 18 herein containing 262.39 acres, more or less Tract 16 Township 2 North, Range 63 West, 6th P.M. Section 30: that part of the NW/4 described as Lot A of Recorded Exemption 1303-30-2-RE3279 recorded at Reception No. 2951015 containing 5.94 acres, more or less Tract 17 Township 2 North, Range 63 West, eh P.M. Section 30: that part of the NE/4 described as Lot A of Recorded Exemption 1303-30-1-RE2906 recorded at Reception No. 2915929 containing 5.24 acres, more or less Tract 18 Township 2 North, Range 63 West, 6th P.M. 3 The Prior Examiners described this tract as a sum of lots from several recorded exemptions, as follows: that part of the NW/4 described as Lot B of Recorded Exemption 1303-30-2-AMRE210 recorded at Reception No. 1689917, less and except that portion situated in the W/2W/2NW/4 and described as part of Tract 13 above, together with that part of the NW/4 described as Lot B of Recorded Exemption 1303-30-2-RE3279 recorded at Reception No. 2951015 and that part of the NE/4 described as Lot C of Recorded Exemption 1303-30-1-RE2906 recorded at Reception No. 2915929. For the sake of brevity and ease of tract identifiability, we have revised the description, as shown above. Verdad Resources LLC July 14, 2020 Page 6 Section 30: that part of the NE/4 described as Lot B of Recorded Exemption 1303-30-1-RE2906 recorded at Reception No. 2915929 containing 6.07 acres, more or less Tract 19 Township 2 North, Range 63 West, 6th P.M. Section 30: that part of the SW/4 described as Lot A of Recorded Exemption 1303-30-3-RECX15-0146 recorded at Reception No. 4230947 and Lot A and Lot B of Recorded Exemption 1303- 30-3-RECX 15-0147 recorded at Reception No. 4230948, less and except that portion of that parcel of land situated in the SW/4 conveyed to Weld County by instrument at Reception No. 455566 described as Tract 22 herein containing 83.78 acres, more or less Tract 20 Township 2 North, Range 63 West, 6th P.M. Section 30: that part of the SW/4 described as Lots A and B of Recorded Exemption 1303-30-3-RE2114 recorded at Reception No. 2597403, less and except that portion of that parcel of land situated in the SW/4 conveyed to Weld County by instrument at Reception No. 455566 described as Tract 22 herein containing 79.15 acres, more or less Tract 21 Township 2 North, Range 63 West, 6th P.M. Section 30: SE/4, less and except that parcel of land conveyed to Weld County by instrument at Reception No. 455566 described as Tract 22 herein containing 155.89 acres, more or less Tract 22 Township 2 North, Range 63 West, 6th P.M. Section 30: that parcel of land conveyed to Weld County by instrument at Reception No. 455566, described as a strip of land Verdad Resources LLC July 14, 2020 Page 7 being the North 60 feet of the S/2 containing 7.25 acres, more or less Tract 23 Township 2 North, Range 64 West, 6th P.M. Section 13: that portion of Lot B as described in Recorded Exemption 1305-13-3-RE91, recorded at Reception No. 1625288, situated in the E/2SE/4, SE/4NE/4 containing 119.99 acres, more or less Tract 24 Township 2 North, Range 64 West, 6th P.M. Section 24: E/2NE/4 lying North and West of the centerline of the ROW line of U.S. Interstate 76 containing 27.02 acres, more or less Tract 25 Township 2 North, Range 64 West, 6t" P.M. Section 24: E/2NE/4 lying South and East of the centerline of the ROW line of U.S. Interstate 76 lying in the E/2NE/4 and situated North of the Southern border of the ROW line of U.S. Interstate 76 and extending to the centerline thereof containing 50.88 acres, more or less Tract 26 Township 2 North, Range 64 West, eh P.M. Section 24: that part of the SE/4 described as Lots A and B of Recorded Exemption No. 1305-24-4 RE -4013 dated July 29, 2005 at Reception No. 3307851, to the extent they lie within the E/2SE/4, together with that portion of Weld County Road 398 and the North 50' of the BNSF Railroad Right -of -Way lying adjacent thereto containing 52.72 acres, more or less Verdad Resources LLC July 14, 2020 Page 43 HRM Resources 11, LLC 50.000000% 40.000000% 25 Tract 21 Township 2 North, Range 63 West, 6th P.M. Section 30: SE/4, less and except that parcel of land conveyed to Weld County by instrument at Reception No. 455.566 described as Tract 22 herein containing 155.89 acres, more or less Oil, Gas and Associated Hydrocarbons OGL Ronald M. Rome and Jeri E. Dyer, joint tenants 100.000000% 26 Oil and Gas Leasehold OGL Landowner's Royalty Interest Ronald M. Rome and Jeri E. Dyer, joint tenants 18.750000% 26 (18.75% LRI x 100.00% M I ) Overriding Royalty Interest None Working Interest WI NRI OGL Verdad Resources LLC 100.000000% 81.250000% 26 Tract 22 Township 2 North, Range 63 West, 6th P.M. Section 30: that parcel of land conveyed to Weld County by instrument at Reception No. 455566, described as a strip of land being the North 60 feet of the S/2 containing 7.25 acres, more or less Oil, Gas and Associated Hydrocarbons eld County, State of Colorado 100.000000% OGL =t� 1.615 P r°111/.7. OW/ 45&14&&O.2.lo.141O Verdad Resources LLC July 14, 2020 Page 44 Working Interest Weld County, State of Colorado '/F€t'AV 12&4UM iztec 'Al WI NRI 100.000000%= =-100.000000% kg') . !}00 9!i 91 • Irk'! Tract 23 OGL Township 2 North, Range 64 West, 6'11P.M. Section 13: that portion of Lot B as described in Recorded Exemption 1305-13-3-RE91, recorded at Reception No. 1625288, situated in the E/2SE/4, SE/4NE/4 containing 119.99 acres, more or less Oil, Gas and Associated Hydrocarbons Monte Peak Minerals, LLC DSBT Farms, LLC Oil and Gas Leasehold Landowner's Royalty Interest Monte Peak Minerals, LLC (20.00% LRI x 50.00% MI) DSBT Farms, LLC (18.75% LRI x 50.00% MI) Overriding Royalty Interest None Working Interest Verdad Resources LLC WI 100.000000% Tract 24 50.000000% 50.000000% 10.000000% 9.375000% {J L- 4Viten.1 D OGL 27`5 28, 29 OGL 27 28 29 NRI OGL 80.625000% 27-29 Township 2 North, Range 64 West, 6'h P.M. Section 24: E/2NE/4 lying North and West of the centerline of the ROW line of U.S. Interstate 76 45 We direct your attention to the horizontal and vertical Pugh clauses contained within OGL 27. Schedule I(a) to that Second Amended Drilling and Division Order Title Opinion dated July 14, 2020 Division of Interest: Drilling Spacing Unit No. 1 Prepared by Tjornehoj & Hack LLC chodule Ilan Second Amended Drfln9 and Division Order 116e Opinion dated JO 14. 2020 Tpmohoi d Hack LLC Interest Owner Name Ruth C. Bounds Farrty Revocable Trust. Dated March 12, LRI 2015 Aired R Cuyitendat Jeannette C Roller John H Woodworth Unrversity of Colorado School of Medicine University of Denver Mary J. 1Nuodwo lh Noble Energy, Inc Kauffman Brothers Limited Partnership Juftus A, Pluss Noble Energy. Inc. Roth C Bounds Far-dy Revocable Trust, Dated Marc21 12. 2015 Afraid R. Cuy►.endal Jeannette C Roger John H Woodworth University of Colorado School of Medicine UnrvoRdy of Denver Mary J. WoodAorth Kerr-McGee Od & Gas Onshore LP RKC. Inc, Foundation Energy Fund II LLC Kauffman Brothers lrnted Partnership Julius A. Pluss Ken Gee Of & Gas Onshore LP RKC. Inc. Foundation Energy Fund II LLC Kauffman Brothers Linvtud Partnership Julius A Pluss Ken -McGee Oi 6 Gas Onshore LP Katnne Maxey The Cal L. Maxey Partnership U.S Mineral 6 Royalty Corporation Arthur W. Berglund Robert Kent Berglund. Trustee of the Revocable Trust of Robert Kent Berglund U/A dated October 29. 2015 Amxta M. Tudor Janet B. Warda Gary Douglas Myers VuMad Resources LLC Dahno L. Amok) Linda L and Lonnie 0 Schneider Eleanor L HOee1 Arnold Lott). Clararnay Arnold Wayen Hers of Wynona Mao Arnold Wayne V. Arnold Evonne LaRue Adams Daly L. Arnold Carol Ann Spetts nice Eline Gutierrez Richard Raymond Arnold Eugene A tititoUe fiances L Sanders. her 01 Michael Wore Edna Mane Amold Green Kathy L Heavers Susan J. Kooneke Robert A. Koenekr Thomas D. Koeneke James Steven Glantz, hew of Ruth E. Glantz Richard L. Glantz. her of Ruth E Glantz Myrna R Wins. her of Ruth E Glantz Voided Resources LLC Vended Resources LLC Verdad Resources LLC Vended Resources LLC Verdad Resources LLC Ott ?'o b47 /1 • 11970 Tovrrstllo 2 North_ Rango53 YYo,M Section 1& S/2 Section 19. Al Section 30: Al Tract Breakdown Division of Interest weft Name : Total spaczig unit acreage: 1633.47 Formations Cnvnrnd• Caring Niobrara Interest _Type Tract Acres LRI 1 67.44 CM 1 67.44 LRI 1 87.44 LRI 1 67.44 LRI 1 67.44 LRI 1 67.44 Al 1 67.44 LRI 2 16.92 LRI 2 16 92 Al 2 16.92 LRI 3 20 85 Lease No 1 1 1 1 1 1 1 1 1 1 2 LRI 3 20 85 2 L RJ 3 20.85 t RI 3 20 85 2 LRI 3 20.85 2 LRI 3 20.85 2 LRI 3 20.85 2 ORRI 3 20.85 2 Y.1 3 20.85 2 i'rl 3 20.85 2 LRI 4 58 49 2 LRI a 58 49 2 ORRI 4 56 49 2 0.1 4 58 49 2 '.ti1 4 58.49 2 LRI 5 150.42 2 L121 5 158.42 2 ORRI 5 158.42 2 ORRI 5 158 42 2 ORRI 5 158.42 2 W1 5 158.42 2 IRS 6 290 74 3 LRI 6 290 74 4 2 LRI 6 290, 74 5 LRI 6 290.74 6 UL 6 290.74 WI 6 290.74 3-8 LRI 7 8.54 8 LRI 7 8.54 7 Ul 7 6.54 UL 7 8.54 UL 7 6.54 UL 7 6.54 UL 7 6.54 UL 7 6 54 UL 7 6.54 UL 7 6.54 Lk 7 6.54 LRI 7 6.54 9 2.500000% LRl 7 6.54 10 2.500000% Leased Mineral Int UL 7 6.54 LRI 7 8.54 14 l RI 7 6.54 15 LRI 7 6.54 16 LRI 7 8.54 17 LRI 7 6.54 11 LRI 7 6.54 12 LRI 7 6.54 13 'Al 7 8.54 8 'Al 7 6.54 7 At 7 6 54 9 Wt 7 6.54 10 Al 7 6.54 14 18.750000% 19 750000% 18.750000% 6.250000% 6.250000% 6 250000% 100.000000% 50.000000% 50.000000% 100.000000% 25.000000% 18.750000% 18.750000% 18 750000% 6.250000% 6.250000% 6.250000% 100.000000% 100 000000% 100.000000% 50.000000% 50 000000% 100.000000% 100.000000% 100.000000% 50.000000% 50 000000% 100.000000% 100.000000% 100.000000% 100.000000% 12.500000% 12.500000% 12.500000% 12.500000% 50 000000% 5 000000% 55.000000% 1.250000% 1 250000% 1.250000% 1.250000% 1.688661% 1.666667% t 686566% 5 000000% 55.000000% 2.500000% 2.500000% 1.250000% unlea sed u ioillInt 12 500000% 50 000000% 5 000000% 5.000000% 2 500000% 0.5000009. 0.500000% 0.500000% 0.500000% 0.500000% 5.000000% 5 000000% 11-1 111-f lease Roynity 12 500000% 12 500000% 12 500000% 12.500000% 12.500000% 12.500000% 12.500000% 12.500000% 12 500000% 12.500000 % 12.500000% 12 500000% 12.500000% 12.500000% 12 500000% 12.500000% 12 500000% 12 500000% 12 500000% 18.750000% 18 750000% 18.750000% 18.750000% 18 000000% 16.000000% 18 686670% 18 000000% 18 000000% 18 000000% 18.000000% 18.000000% 18.668670% 16 666670% 16.6886709E Overriding Royaky WI (Pr p. 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Amuia Carol Ann Spots Ake Elaine Gutierrez Richard Raymund Amuk1 Eugene A Wolfe Frances L Sanders. her of Mchael Wolfe Edna Mane Amour Green Katny L Heavers Susan .1 Koono►.e Rotten A Ktuenoke Thomas D. Kooneke Janos Sloven Glantz, hair of Ruth E. Glantz Richard L Glantz, hew of Ruth E Glantz Myrna R Witt new of Ruth E. Glantz Richard C Stsa Verded Resources LLC Venial Resources LLC Venial Resources LLC Vented Resources LLC Vordad Resources LLC Venial Resources LLC Venial Resources LLC Verdad Resources LLC Venial Resources LLC Venial Resources LLC Venial Resources LLC Venial Resources LLC Venial Resources LLC Verdad Resources LLC Julius A Puuss Kauffman Brothers Limited Pannorshrp Ve dad Resources LLC Burlington tionnem Railroad M $ Currie RoCrick A. Dudley Venial Resources LIC M S Cumo Julius A Nuts Venial Resources LLC Julius A Plus° Kauffman Brothers Limited Pannership Venial Resources LLC Julius A. Pk.ss Jason Fox Fronch Verdad Resources LLC Julius A Puss Gregory L Leconte and Kell -Sue Laconic. Vernal Resources LLC Julius A. Pkiss Shane A. Leper Darn 5 Ziegler Vordad Resources LLC 'Kenneth G Clemens and Roxeno L Clemens Playa Pefrobum(LC BM Barrett Corporation Rose Lee Persacaetle Playa Petroleum LLC Bin Barrett Corporation Ronald PA Ftomo and Jen E. Dyer Venial Resources LLC Weld County. 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Pr rig/ 1 R 100.000000% 100 000000% 2/24/22, 4:08 PM Facility Detail COGIS - WELL INFORMATION Scout Card Surface Location Data for API # 05-123-50889 ria-4 Related R Insp':-- MIT O GIS EA Doc a COA t Wellbore LI Orders ':-1t Bradenhead Status: PR - 11/1/2021 KBL #1930-08H (click well name Well Name/No: Click Here for Transporter Gatherer Info For production) Operator: VERDAD RESOURCES LLC - 10651 Federal Or State Lease #: Facility Status: PR Status Date 11/1/2021 FacilitylD: 473175 LocationID: 471229 NWSE 19 2N63W Municipality/County: KEENESBURG / WELD #123 Location: 6 Field: WATTENBERG - #90750 Elevation: 4862 ft. Planned Location: 1806FSL 2066 FEL Frac Focus Chemical Disclosure Lat/Long Source: Lat/Long: 40.121607 / -104.478230 Field Measured Registry Job Date: 10/3/2021 Reported: 10/22/2021 Job End Date: 10/11/2021 Days to report: 11 Wellbore and Formation Details -- select either a wellbore or formation to expand. Wellbore Data for the original wellbore Wellbore Permit Permit #: Prop Depth/Form: 14856 ft. Surface Mineral Owner Same: No PR - 11/1/2021 Measured TD. HORIZONTAL Expiration Date: 3/10/2022 Mineral Owner: FEE Surface Owner: FEE Unit: Unit Number: Formation And Spacing: Code: NBRR , Formation: NIOBRARA , Order: 407-2326 , Unit Acreage: 1600, Drill Unit: 18:S2; 19&30:ALL Casing: String Type: CONDUCTOR, Hole Size: 24 in., Size: 16 in., Top: 0 ft., Depth: 80 ft., Weight: 65 , Citings Type: PLANNED Cement: Sacks: 70, Top: 0 ft., Bottom: 80 ft. Casing: String Type: SURF, Hole Size: 13.5 in., Size: 9.625 in., Top: 0 It, Depth: 1700 ft., Weight: 36 , Citings Type: PLANNED Cement: Sacks: 462, Top: 0 ft., Bottom: 1700 ft. Casing: String Type: 1ST, Hole Size: 8.5 in., Size: 5.5 in., Top: 0 ft., Depth: 14856 ft., Weight: 20 , Citings Type: PLANNED Cement: Sacks: 1901, Top: , Bottom: 14856 ft. Wellbore Completed Completion Date: N/A https://cogcc.state.co.us/cogisdb/Facility/FacilityDetail?api=12350889 1/2 2/24/22, 4 08 PM gud Y -6m3 - Measured TD True Vertical TD Top PZ Location Bottom Hole Location Sec 19 Twp 2N 63W Sec 30 Twp 2N 63W Completed information for formation NOT COMPLETED Status PR - 11/1/2021 1st Production Date 1/1/2021 Choke Size Formation Name NOT COMPLETED Commingled Production Method Open Hole Completion Tubing Size Tubing Setting Depth Tubing Packer Depth Tubing Multiple Packer Open Hole Top Open Hole Bottom No Initial Test Data was found for formation N-COM No Perforation Data was found for formation N-COlVI Facility Detail Spud Date Is Measured PB depth True Vertical PB depth Footage 2180 FSL 698 FWL Footage 460 FSL 698 FWL NOTICE Depth Depth https //cogcc state co us/cogisdb/Facility/FacilityDetail'api=12350889 2/2 2/24/22, 4:08 PM Facility Detail COGIS - WELL INFORMATION Scout Card Surface Location Data for API # 05-123-50882 -i'1 Related R Insp(-2k MIT 0 GIS a Doc C0A its Wellbore ."Y Orders r Bradenhead Status: PR - 11/1/2021 KBL #1930-09H (click well name Well Name/No: Click Here for Transporter Gatherer Info For production) Operator: VERDAD RESOURCES LLC - 10651 Federal Or State Lease #: Facility Status: PR Status Date 11/1/2021 FacilitylD: 473168 LocationID: D: 471229 NWSE 19 2N63W Municipality/County: KEENESBURG / WELD #123 Location: 6 Field: WATTENBERG - #90750 Elevation: 4862 ft. Planned Location: 1806FSL 2051 FEL FracFocus Chemical Disclosure Registry Lat/Long Source: Lat/Long: 40.121607 / -104.478177 Field Measured Job Date: 10/3/2021 Reported: 10/22/2021 Job End Date: 10/11/2021 Days to report: 11 Wellbore and Formation Details -- select either a wellbore or formation to expand. Wellbore Data for the original wellbore Wellbore Permit HORIZONTAL Permit #: Expiration Date: 3/10/2022 Prop Depth/Form: 14557 ft. Surface Mineral Owner Same: No Mineral Owner: FEE Surface Owner: FEE Unit: Unit Number: Formation And Spacing: Code: NBRR , Formation: NIOBRARA , Order: 407-2326 , Unit Acreage: 1600, Drill Unit: 18:S2: 19&30:ALL Casing: String Type: CONDUCTOR, Hole Size: 24 in., Size: 16 in., Top: 0 ft.. Depth: 80 ft., Weight: 65 , Citings Type: PLANNED Cement: Sacks: 70, Top: 0 ft., Bottom: 80 ft. Casing: String Type: SURF, Hole Size: 13.5 in., Size: 9.625 in., Top: 0 ft., Depth: 1700 ft., Weight: 36 , Citings Type: PLANNED Cement: Sacks: 462, Top: 0 ft., Bottom: 1700 ft. Casing: String Type: 1ST, Hole Size: 8.5 in., Size: 5.5 in., Top: 0 ft., Depth: 14557 ft., Weight: 20 , Citings Type: PLANNED Cement: Sacks: 1868, Top: , Bottom: 14557 ft. PR - 11/1/2021 Measured TO Wellbore Completed Completion Date: N/A https://cogcc.state.co.us/cogisdb/Facility/FacilityDetail?api=12350882 1/2 2/24/22, 4 08 PM SpeAcra6e- ; '1Y201 0 1 Measured TD True Vertical TD Top PZ Location Bottom Hole Location Sec 19 Twp 2N 63W Sec 30 Twp 2N 63W Completed information for formation NOT COMPLETED Status PR - 11/1/2021 1st Production Date 1/1/2021 Choke Size Formation Name NOT COMPLETED Commingled Production Method Open Hole Completion Tubing Size Tubing Setting Depth Tubing Packer Depth Tubing Multiple Packer Open Hole Top Open Hole Bottom No Initial Test Data was found for formation N-COM No Perforation Data was found for formation N-COM Facility Detail Spud Date Is Measured PB depth True Vertical PB depth Footage 2180 FSL 1310 FWL Footage 460 FSL 1310 FWL NOTICE Depth Depth https //cogcc state co us/cogisdb/Facility/FacilityDetad7api=12350882 2/2 2/24/22, 4:08 PM Facility Detail COGIS - WELL INFORMATION Scout Card D-•® Related CInspr-- , MIT GIS a Doc a COA JL Wellbore Surface Location Data for API # 05-123-50883 Well Name/No: Operator: Facility Status: FacilitylD: KBL #1930-11H (click well name For production) VERDAD RESOURCES LLC - 10651 Federal Or State Lease #: PR 473169 Municipality/County: KEENESBURG / WELD #123 Field: WATTENBERG - #90750 Planned Location: 1806FSL 2036 FEL Frac FOCUS Chemical Disclosure Registry Job Date: 9/27/2021 Job End Date: 10/2/2021 Status Date LocationiD: Location: Elevation: Orders'-- Bradenhead Status: PR - 11/1/2021 Click Here for Transporter Gatherer Info 11/1/2021 471229 NWSE 19 2N63W 6 4861 ft. Lat/Long Source: Lat/Long: 40.121606 / -104.478123 Field Measured Reported: 10/22/2021 Days to report: 20 Wellbore and Formation Details -- select either a wellbore or formation to expand. Wellbore rata for the original wellbore PR - 11/1/2021 Measured TD. Wellbore Permit HORIZONTAL Permit #: Expiration Date: 3/10/2022 Prop Depth/Form: 14447 ft. Surface Mineral Owner Same: No Mineral Owner: FEE Surface Owner: FEE Unit: Unit Number: Formation And Spacing: Code: NBRR , Formation: NIOBRARA , Order: 407-2326 , Unit Acreage: 1600, Drill Unit: 18:S2; 19&30:ALL Casing: String Type: CONDUCTOR, Hole Size: 24 in., Size: 16 in., Top: 0 ft., Depth: 80 ft., Weight: 65 , Citings Type: PLANNED Cement: Sacks: 70, Top: 0 ft., Bottom: 80 ft. Casing: String Type: SURF, Hole Size: 13.5 in., Size: 9.625 in., Top: 0 ft., Depth: 1700 ft., Weight: 36 , Citings Type: PLANNED Cement: Sacks: 462, Top: 0 ft., Bottom: 1700 ft. Casing: String Type: 1ST, Hole Size: 8.5 in., Size: 5.5 in., Top: 0 ft.. Depth: 14447 ft., Weight: 20 , Citings Type: PLANNED Cement: Sacks: 1856, Top: , Bottom: 14447 ft. Wellbore Completed Completion Date: N/A https://cogcc.state.co.us/cogisdb/Facility/FacilityDetail?api=12350883 1/2 2/24/22, 4 08 PM SpudB_..a Measured TD True Vertical TD Top PZ Location Sec 19 Twp 2N 63W Bottom Hole Location Sec 30 Twp 2N 63W Completed information for formation NOT COMPLETED Status PR m 11/1/2021 1st Production Date 1/1/2021 Choke Size Formation Name NOT COMPLETED Commingled Production Method Open Hole Completion Tubing Size Tubing Setting Depth Tubing Packer Depth Tubing Multiple Packer Open Hole Top Open Hole Bottom No Initial Test Data was found for formation N-COM No Perforation Data was found for formation N-COM Facility Detail Spud Date Is Measured PB depth True Vertical PB depth Footage 2180 FSL 1993 FWL Footage 460 FSL 1993 FWL NOTICE Depth Depth https //cogcc state co us/cogisdb/Facility/FacilityDetail7api=12350883 2/2 2/24/22, 4:08 PM Facility Detail COGIS - WELL INFORMATION Scout Card Surface Location Data for API # 05-123-50886 Well Name/No: Operator: Facility Status: FacilitylD: KBL #1930-12H (click well name For production) VERDAD RESOURCES LLC - 10651 Federal Or State Lease #: PR 473172 Municipality/County: KEENESBURG / WELD #123 Field: WATTENBERG - #90750 Planned Location: 1806FSL 2021 FEL Frac Focus Chemical Disclosure Registry Job Date: 9/27/2021 Job End Date: 10/2/2021 Status Date LocationID: D: Location: Elevation: Related C Inspg MIT 0 GIS a Doc a COA 1L Wellbore Orders '4, Bradenhead Status: PR - 11/1/2021 Click Here for Transporter Gatherer Info 11/1/2021 471229 NWSE 19 2N63W 6 4860 ft. Lat/Long Source: Lat/Long: 40.121606 / -104.478069 Field Measured Reported: 10/22/2021 Days to report: 20 Wellbore and Formation Details -- select either a wellbore or formation to expand. Wellbore Data for the original weilbore Wellbore Permit Permit #: Prop Depth/Form: 14254 ft. Surface Mineral Owner Same: No PR - 11/1/2021 Expiration Date: Measured T HORIZONTAL 3/10/2022 Mineral Owner: FEE Surface Owner: FEE Unit: Unit Number: Formation And Spacing: Code: NBRR , Formation: NIOBRARA , Order: 407-2326 , Unit Acreage: 1600, Drill Unit: 18:S2; 19&30:ALL Casing: String Type: CONDUCTOR, Hole Size: 24 in., Size: 16 in., Top: 0 ft., Depth: 80 ft., Weight: 65 , Citings Type: PLANNED Cement: Sacks: 70, Top: 0 ft., Bottom: 80 ft. Casing: String Type: SURF, Hole Size: 13.5 in., Size: 9.625 in., Top: 0 ft., Depth: 1700 ft., Weight: 36 , Citings Type: PLANNED Cement: Sacks: 462, Top: 0 ft., Bottom: 1700 ft. Casing: String Type: 1ST, Hole Size: 8.5 in., Size: 5.5 in., Top: 0 ft., Depth: 14254 ft., Weight: 20 , Citings Type: PLANNED Cement: Sacks: 1853, Top: , Bottom: 14254 ft. Wellbore Completed Completion Date: N/A https://cogcc.state.co.us/cogisdb/Facility/FacilityDetail?api=12350886 1/2 2/24/22, 4 08 PM Sp cr to ; Measured TD True Vertical TD Top PZ Location Bottom Hole Location Sec 19 Twp 2N 63W Sec 30 Twp 2N 63W Completed Information for formation NOT COMPLETED Status PR - 11/1/2021 1st Production Date 1/1/2021 Choke Size Formation Name NOT COMPLETED Commingled Production Method Open Hole Completion Tubing Size Tubing Setting Depth Tubing Packer Depth Tubing Multiple Packer Open Hole Top Open Hole Bottom No Initial Test Data was found for formation N-COM No Perforation Data was found for formation N-COM Facility Detail Spud Date Is Measured PB depth True Vertical PB depth Footage 2180 FSL 2640 FWL Footage 460 FSL 2640 FWL NOTICE Depth Depth https //cogcc state co us/cogisdb/Facility/FacilityDetad?api=12350886 2/2 Jessica Reid From: Sent: To: Subject: Lindsay Grose <LGrose@VerdadResources.com> Friday, February 25, 2022 6:33 AM Jessica Reid; CTB-Oil and Gas Leasing RE: [External]:RE: Division Orders & Calculations Contact Caution This email originated from outside of Weld County Government. Do not click links or open attachments unless you recognize the sender and know the content is safe. Good Morning Jess, Email works, but if you'd like to mail the hard copy as well, please send here: Verdad Resources LLC Attn: Lindsay Grose 5950 Sherry Lane, Suite 700 Dallas, TX 75225 Happy Friday! Thanks, LivOsaui Grvse From: Jessica Reid <jreid@weldgov.com> Sent: Thursday, February 24, 2022 5:19 PM To: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us>; Lindsay Grose <LGrose@VerdadResources.com> Cc: Kelsey Taylor <KTaylor@VerdadResources.com> Subject: [External]:RE: Division Orders & Calculations Contact Or would you just like it emailed somewhere? Regards, Jess Reid Deputy Clerk to the Board Weld County 1150 O Street Greeley, CO 80631 tel: 970-400-4212 Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. 1 COUNTY ATTORNEY STAFF APPROVAL This is to affirm the attached Division Order and authorization to receive payment for an oil and gas well has been reviewed by the County Attorney's staff as to form and legal description. Well Name(s): KBL 1930-8H, KBL 1930-9H, KBL 1930-11H, KBL 1930-12H File Location(s): LEO5q£� BY: DATE: Bruce Barker — County Attorney NOTES: 7.25 mineral acres / 1,633.47 acres spacing unit * .225 = 0.00099864 MATCH Hello