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HomeMy WebLinkAbout20222623.tiffNADOA Model Form Division Order (Adopted 9/95 —Amended 1/17) Confluence DJ LLC Return To: CONFLUENCE DJ LLC 1001 17TH Street, Suite 1250 DENVER, CO Property Number: Property Name: Operator: County/Parish and State: Property Description: Production: 802C2 102052 Willow 22-4-4L Confluence DJ LLC Weld County, Colorado Township 1 North, Range 65 West Section 10: E2SW, W2SE Section 15: E2W2, W2E2 Section 22: E2W2, W2E2 Containing 800.0000 gross acres ❑ Oil ❑ Gas Other OIL & GAS DIVISION ORDER Date Prepared: 08/11/2022 Effective Date: First Sales Prepared By: MJB APT_ 05 �a3-- X All Products 65`tY`i RECEIVED AUG 162022 WELD COUNTY COMMISSIONERS AC CO 1 _ - -- - - , - _- _ �-- OWNER # OWNER NAME AND ADDRESS INT. TYPE DECIMAL INTEREST WELD COUNTY, COLORADO 2066 1150 O ST RI 0.00077997 GREELEY, CO 80631 The undersigned certifies the ownership of the decimal interest in production or proceeds as described above payable by Confluence DJ LLC (Confluence). GAO o r`y Confluence 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. Confluence 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 Confluence any amount attributable to an interest to which the undersigned is not entitled. Confluence 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 Confluence may have certain statutory rights under the laws of the state in which the property is located. Special Clauses: / NONE BOARD OF EV� ATTEST: CLERK T BY: DEPUTY CLERK TO BARD SEP 1 4 2022 Weld County Government AIR P.O. Box 758 Greeley, CO 80632-0758 hone: 970-400-4225 x: 970-336-7233 -oilandgasleasing@weldgov.com x ID: 84-6000813 ayer Identification Number. Failure to comply will result in 24% tax be refundable by Confluence. Co vnso.,\ P\ctnckct /#4''2 tto (�ex�G� cgt C1 14 - PLEASE SIGN AND RETAIN THIS COPY FOR PLEASE SIGN AND RETAIN THIS COPY FOR OUR RECORDS 9f ��-ate uaooto - 2022-26230) EXHIBIT A -4(a): CONSOLIDATED OWNERSHIP FOR THE WILLOW 22-4-4L Well 2nd SUPPLEMENTAL DDOTO dated November 12, 2021, covering TIN, R65W, 6th P.M., Section 10: E/2SW/4, W/2SE/4, Section 15: E12, E/2W/2, Section 22: E/2, E/2W/2 Designated Spacing Unit: T1 N, R65W, 6th P.M., Section 10: E/2SVV/4, W/2SE/4, Section 15: W/2E/2, E/2W/2, Section 22: W/2E/2, E/2W/2 Spacing Unit Acres: 800.0000 ± Limited to the CodeII and Niobrara Formations Further Limited to Production From the Wellbore of the Willow 22-4-4L Well Certification Date 09/09/2021 Tract Tract Description 10-12 T1N R65W 6th P M Section 10 N/2NW/4SW/4SE/4 Tract Acreage Tract Acres Unit Acres Allocation (Tract Acres / Unit Acres) = Tract Acreage Allocation 4 9918 800 0000 0 623975% 0.6239750% '<eq.. 10-13 LANDOWNER ROYALTY ("LOR") Mineral Interest ("MI") x Lease Royalty x Tract Acreage Allocation Weld County, Colorado Tract Lease 10-12 10-M Non -Rounded Tract Acreage Non -Rounded Rounded Tract Unit LOR Lease MI Lease Royalty Allocation Tract LOR LOR for Owner 100 000000% 12 500000% 0 623975% 0 0007799688 0 00077997 0 0007799688 ROUNDED UNIT LOR Type of FOR OWNER Interest 0.00077997 LOR Total Landowner Royalty Interests 0.00077997 ✓ LOR Willow 22-4-4L (102052) Page 1 of 1 A EXHIBIT A -3(I : OIL AND GAS LEASEHOLD OWNERSHIP FOR TRACT 10-12 2nd SUPPLEMENTAL DDOTO dated November 12. 2021. covering T1 N. R65W. 6th P.M.. Section 10: E/2SW/4, W/2SE/4, Section 15: E/2, E/2W/2, Section 22: E/2. E/2W/2 All Depths and Formations Certification Date 09/09/2021 Tract 10-12 Tract Description T1 N. R65W 6th P.M.. Section 10 N/2NW/4SW/4SE/4 Tract Acres 4.9918 Opinion Burden ID 1 10-13 LANDOWNER ROYALTY ("LOR") Mineral Interest x Lease Royalty Tract Weld County. Colorado 10-12 Lease 10-M Lease MI Lease Royalty 100.000000% 12.500000% Non -Rounded Tract LOR 0.1250000000 Rounded Tract LOR 0.12500000 Non -Rounded Tract LOR for Owner 0.1250000000 Rounded Tract Type of LOR for Owner Interest 0.12500000 LOR Total Landowner Ro alt Interests 0.12500000 LOR Opinion Burden ID Req. OVERRIDING ROYALTY INTERESTS ("0RI") Tract ORI x Lease MI x WI Burdened None Lease ORI in Lease Prop. Reduced by Lease MI WI Burdened Non -Rounded Tract ORI Rounded Tract ORI Non -Rounded Tract ORI for Owner Rounded Tract ORI for Owner Type of Interest Total Overriding Ro alty Interests 0.00000000 OR! Req. 10-13 WORKING INTERESTS ("WI") I NET REVENUE INTERESTS ("NRI") WI x MI x NRI [100%- Burdens] Tract Verdad Resources LLC 10-12 Lease 10 -NI WI in Lease 100.000000% 100.000000% 87.500000% Lease MI Lease NRI Non -Rounded Tract NRI Rounded Tract NRI 0.8750000000 0.87500000 Non -Rounded Tract NRI for Owner 0.8750000000 Rounded Tract Type of NRI for Owner Interest 0.87500000 WI/NRI Total Working Interests/Net Revenue /nterests 0.87500000 WI/NRI Total All Interests Ex. A -3(I) Tract 10-12 Page 43 of 93 1.00000000 A BOOK95 RECEPTION 18:7P..61-;.11_ DATE _ - 81 TIME/?! MARY ANN FEUERSTEIN, Clerl aftd Recorder, Weld County, Colorado4 WELD COUNTY COLORADO OIL AND CAS LEASE 4e/ This AGREEMENT made tntsOa iday ofL 7U , 192/ between Weld County, Colorado, a political subdivision of c", the State of Colorado, by the Board of County Commissioners for its respective interests, r/0 Board of County commis- sioners Weld County Centennial Center, 915 10th Street, Greeley, Colorado 80631, Lessor (whether one or more) end O H. L WILLETT, 25O Denver Club Bldg., Denver, CO ;essee, wITNE.ETH 1 lessor in constderation of One thousand fifty and no cents Dollars (5 1,050.0P )• in hand paid, of the royalties herein provided, and of the agreement of Lessee hereto contained, hereby grants, eases and lets exclusively unto Lessee for the purpose of investigatin, exploring prospecting, drilling and mining °o� and o producing oil gas and other hydrocarbons, laying pipe lines building tank Gower staions, telephone lines and e'ner structures thereon to produce, save, take care of, treat, transport and own raid products and housing its employees, (sub'et to all applicable Weld County Zoning Regulation, the following tract of land with any reversionary rights o therein being situated in the County of Weld State of Corado and described as follows IS Township 1 North, Range 65 West of the 6th P M Section 10 N'NW1/4SW.,,SE1/4 and containing 5 acres, more or less (_� net mineral acres) r i 2 Subject to the other provisions herein contained this lease shall be fora term of 3 years from this date �'— (called "primary term") std as long thereafter as oil, gas or other hydrocarbons, is produced from said from hereunder or drilling or reworking operations are conducted thereon 3 The royalties to be paid by Lessee are (a) on oil, one -eighth of that produced and saved from said land, the same to be delivered at the wells, or to the credit of Lessor into the pipe line to which the wells may be connected, Lessee may from time to time purchase any royalty oil 1n its possesion, paying the market price therefor prevailing for the field where produced on the date of purchase, (b) on gas, including casinghead gas or other hydrocarbon sub- stance, produced from said land and sold or used off the premises or 1n the manufacture of gasoline or other Qroducis therefrom, the market value at the well of one -eighth of the gas so sold or used, provided that on gas sold at the wells the royalty shall be one -eighth of the amount realized from such sale, on sulfur the royalty shall be fifty cents (tot) per long ton Lessee shall have free use of oil, gas, coal, wood and water from said land, except water from Lessor's wells, for all operations hereunder, and the royalty on oil and gas shall be computed after deducting any so used If a well capable of producing gas in paying quantities is completed on the above described land and is shut in, this lease shall continue in effect for a period of one year from the date such well 1s shut in Lessee or any assignee may thereafter, in the manner provided herein for the payment or tender of delay rentals, pay or tender ,to Lessor as royalty, on or before one year from the date such well is shut in, the sum of 5100 00 per well, and, if such payment or tender is made, this lease shall continue in effect for a further period of one year In like manner and upon like payments or tenders annually, made on or before each anniversary of the shut-in date of such well, this lease shall continue in effect for successive periods of twelve (12) months each 4 If operations for drilling are not commenced on said land as hereinafter provided, on or before One yrar from this date, the lease shall then terminate as to both parties, unless on or before such anniversary date Lessee shall nay or tender to Lessor, and shall continue as the depository for all rentals payable hereunder regardless of changes in ownership of said land or the rentals either by conveyance or by the death or incapacity of Lessor, the sum of Five Gild no/��(� Dollar(s) (b 1.001 per net mineral cre, (herein called rental), which shell cover the privilege o e erring commencement of operations for drliiing for a period of twelve (12) months In like manner and upon like payments or tenders annually the commencement of operations for drilling may be further deferred for successive periods of twelve (12) months each during the primary term The payment or tender of rental herein referred to may be made in currency, or check at the option of the Lessee, and the depositing of such currency, or check in any post office, properly addressed to the Lessor, on or before the rental paying date, shall be deemed pay- ment as herein provided The down cash payment is constderation for the lease according to its terms end shall not be allocated as mere rental for a period Lessee may it any time execute and deliver to Lessor or place of record a release or releases covering any portion or portions of the above described premises and thereby surrender this lease as to such portion or portions and be relieved of all obligations as to the acreage surrendered, and thereafter the rentals payable hereunder shall be reduced 1n the proportion that the acreage covered hereby is reduced by said release or releases 5 Should any well drilled on the above described land during the primary term before production is obtained be a dry hole, or should production be obtained during the primary term and thereafter cease, then and in either event, if operations for drilling an additional well are not commenced or operations for reworking an old well are not pur- sued on said land on or before the first rental paying date next succeeding the cessation of production or drilling or reworking on said well or wells, then this lease shall terminate unless Lessee, on or before said date, shall re- sume the payment of rentals Upon resumption of the payment of rental, Section 4 governing the payment of rentals, shall conttpue in force ,lust as though there had been no interruption in the rental payments If during the lest year of the pn mary teen and prior to the discovery of oil, gas, or other hydrocarbons on said land Lessee should drill a dry hole thereon, or if after discovery of nil, gas or other hydrocarbons before or during the last year of the primaryttenn the production thereof should cease during the last year of said term from any cause, no rental pavirent or operations are necessary in order to keep the lease in force during the remainder of the primary term If, at the expiration of the primary term, Lessee is conducting operations for drilling a new well or reworking an old well, this lease nevertheless shall continue in force as tong as such drilling or reworking operations continue, or if, after the expiration of the pnmary term, production on this lease sha11 cease, this lease nevertheless shall continue 1n force if drilling or reworking operations are commenced within sixty (60) days after such cessation of production, if pro- duction is restored or additional production is discovered as a result of any such drilling or reworking operations, conducted without cessation of more than sixty (60) days, this lease shall continue as long thereafter as oil, gas, other hydrocarbons or other mineral is produced and as long as additional drilling or reworking operations are had without cessation of such drilling or reworking erations for more than sixty (60) consecutive days 6 Lessee,at its option, is hereby given the right and power to pool or combine the land covered by this lease, or any portion thereof, as to oil and gas, or either of them, with any other land lease or leases when in Lessee's judgment it is necessary or advisable to do so in order to properly develop and operate said premises, such pooling to be into a well unit or units not exceeding forty (,40) acres plus an acreage tolerance of ten per cent (lot) of forty (40) acres, for oil, and not exceeding six hundred, and forty (640) acres, plus an acreage tolerance of ten per cent (10t) of six hundred and forty (640) acres, for gas, except that larger units may be created to conform to any spacing or well unit pattern that may be prescribed by governmental authorities having jurisdiction Lessee may pool or com- bine acreage covered by this lease, or any portion heref, as above provided, as to oil or gas in any one or more strata, and units so formed need not conform in size or area with the unit or units into which the lease is pooled or combined as to any other stratum or strata, and oil units need not conform as to area with gas units The pooling to Page 2 of 7, T 1 N, R65W, Sec. 10: W/2SE/4 I\ \Survey\ 1702009\Drawrngs\Willow SW Lease Acreage Exhibit iwg DALEY LAND SURVEYING, INC. PARKER, CO. 80134 303.953.9841 LEASE AREA ACREAGE EXHIBIT SOUTHEAST QUARTER, SECTION 10, T.1N., R.65W., 6TH P.M. .t I TRACT lemo%L '!t `-TRACT e (70 /0--9 TRACT■ IC #/ TRACT le NW/4 SE/4 40.1648 Ac. 1O'1O TRACT le TRACT SW/4 SE/4 40.3916 Ac. .11/0 emin NE/4 SE/4 40.0886 Ac. v lU -TRACT SE/4 SE/4 40.3154 Ac. = within Willow 22-4-4L Spacing Unit Tract 10-12 = N2NWSWSE (Weld County Lease) I 0 50C SCALE 1' = 500' NOTES: 1. THIS MAP DOES NOT REPRESENT A BOUNDARY SURVEY, IT IS NOT A LAND SURVEY PLAT OR AN IMPROVEMENT SURVEY PLAT AND IT IS NOT TO BE RELIED UPON FOR THE ESTABLISHMENT OF FENCE, BUILDING OR OTHER FUTURE IMPROVEMENT ONES. 2. ACREAGE FIGURES SHOWN HEREON WERE CALCULATED FROM FIELD SURVEYS OF EXISTING SECTION CORNER MONUMENTATION PERFORMED BY DALEY LAND SURVEYING, INC., USING THE NORMAL STANDARD OF CARE OF PROFESSIONAL LAND SURVEYORS PRACTICING IN COLORADO. 3. TRACT AND PARCEL DESCRIPTIONS WERE PROVIDED BY MATTHEWS MICHALAKC REIS LLC. Drawing Dote 3/04/20 Jessica Reid From: Sent: To: Cc: Subject: Malea Broyles <MBroyles@confluencelp.com> Friday, September 2, 2022 2:22 PM CTB-Oil and Gas Leasing Jessie Speicher RE: Willow 22-4-4L Division Order 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, You are welcome! Great question. Verdad Resources is the active leasehold owner of this lease. Confluence DJ LLC drilled and is the operator of the Willow 22-4-4L well, and it's our responsibility to disburse revenue to Weld County under the terms of your lease with Verdad Resources. Please let me know what other questions you might have, and have an awesome 3 day weekend. Malea Broyles From: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Sent: Monday, August 29, 2022 3:12 PM To: Malea Broyles <MBroyles@confluencelp.com>; CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Cc: Jessie Speicher <jspeicher@confluencelp.com> Subject: RE: Willow 22-4-4L Division Order Hi Malea, Thank you for the information! I show Verdad Resources owns this lease, how is Confluence DJ, LLC, involved with the Willow 22-4-4L well? 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: Malea Broyles <MBroyles@confluencelp.com> Sent: Tuesday, August 23, 2022 8:23 PM To: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Cc: Jessie Speicher <jspeicher@confluencelp.com> Subject: RE: Willow 22-4-4L Division Order 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, Thank you for your email! This was my first time sending division orders to Weld County, and have made note of the additional documentation required. Please find answers to your requests below: 1. Oil and Gas Lease at Reception #1873614, attached 2. An excerpt from our title opinion detailing out the county's royalty interest (with calculations and spacing unit description and acres) is attached 3. An excerpt from our title opinion showing leasehold ownership for Weld County (Tract 10-12) 4. A plat with the tract that shows the SE quarter of Section 10, with Weld County's tract outlined in Red. Please let me know if you have any questions. Thank you, Malea Broyles Land Analyst Confluence Rt50wRCES RISQuRCES Confluence DJ LLC Confluence Resources LP 1125 17th St., Ste 1550 Denver, CO 80202 Ph: 303.226.9503 https://www.confluenceresources.com From: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Sent: Tuesday, August 16, 2022 4:26 PM To: Malea Broyles <MBroyles@confluencelp.com> Cc: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Subject: Willow 22-4-4L Division Order Hi Malea, Regarding the above mentioned Division Order we received, please be advised that the following information must accompany all division orders which are submitted to Weld County Board of County Commissioners for approval: 1. The reception number(s) or copy of the lease that shows Weld County's mineral interest. 2 2 Detailed calculations illustrating how the County's royalty interest was derived 3 Title opinion pages that refer to Weld County's royalty interest 4 If available, a letter sized copy of the plat reflecting the complete spacing unit with Weld County's mineral interest outlined and highlighted related to the division order Also, please provide all acreage labels necessary to support the calculations used to arrive at the County's royalty interest Please email me the requested information Thank you 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 3 8/29/22, 3:04 PM COGIS - WELL INFORMATION Facility Detail Scout Card Surface Location Data for API # 05-123-50949 Well Name/No: Operator: Facility Status: FacilitylD: County: Field: Planned Location: Frac Focus Chemical Disclosure Registry Wellbore and Formation Details -- select either a wellbore or formation to expand. Willow #22-4-4L (click well name For production) CONFLUENCE DJ LLC - 10518 PR 475441 WELD #123 WATTENBERG - #90750 185FSL 1296 FWL Job Date: 12/3/2021 Related (Jib InspR MIT O GIS a Doc a COA lr Wellbore 4: Orders f Bradenhead Status: PR - 2/1/2022 Well Classification: OW Click Here for Transporter Gatherer Info Federal Or State Lease #: Status Date LocationiD: Location: Elevation: 2/1/2022 466977 SWSW 22 1 N65W 6 5092 ft. Lat/Long: 40.030170 / -104.654960 Lat/Long Source: Field Measured Reported: 2/4/2022 Job End Date:: 12/22/2021 Wellbore Data for the original wellbore Wellbore Permit Permit #: Prop Depth/Form: 20191 ft. Surface Mineral Owner Same: No Mineral Owner: Unit: Formation And Spacing: Casing: Cement: Casing: Cement: Casing: Cement: Wellbore Completed Completion Date: Spud Date: Measured TD: True Vertical TD: Top PZ Location: PR - 2/1/2022 Expiration Date: Days to report: 44 Measured TO: HORIZONTAL 4/14/2022 FEE Surface Owner: FEE Unit Number: Code: CODL . Formation: CODELL , Order: , Unit Acreage: 800, Drill Unit: GWA String Type: CONDUCTOR, Hole Size: 26 in., Size: 16 in., Top: 0 ft., Depth: 80 ft., Weight: 43 , Citings Type: PLANNED Sacks: 400, Top: 0 ft., Bottom: 80 ft. String Type: SURF, Hole Size: 13.5 in., Size: 9.625 in., Top: 0 ft., Depth: 1500 ft., Weight: 36 , Citings Type: PLANNED Sacks: 878, Top: 0 ft., Bottom: 1500 ft. String Type: 1ST, Hole Size: 8.5 in., Size: 5.5 in., Top: 0 ft., Depth: 20191 ft., Weight: 20 , Citings Type: PLANNED Sacks: 2268, Top: , Bottom: 20191 ft. N/A 5/16/2021 Sec:22 Twp: 1N 65W Spud Date Is: Measured PB depth: True Vertical PB depth: Footage: 470 FSL 2420 FWL NOTICE Depth https://cogcc.state.co.us/cogisdb/Facility/FacilityDetail?api=12350949 1/2 8/29/22, 3 04 PM Facility Detail Bottom Hole Location Sec 10 Twp 1N 65W Footage 2174 FSL 2420 FWL Depth Completed information for formation NOT COMPLETED Status PR - 2/1/2022 lst Production Date 6/1/2021 Choke Size Formation Name Production Method Open Hole Completion Tubing See Tubing Packer Depth Open Hole Top NOT COMPLETED Commingled Tubing Setting Depth Tubing Multiple Packer Open Hole Bottom No Initial Test Data was found for formation N-COM No Perforation Data was found for formation N-COM Well Designation Designations Defined Inactive N Date Noticed Inactive N Inactive Exception N Low Producing N Out Of Service N Out Of Service Repurposed N Reported Plugged N BOE/MCFE/GOR Calculations Production for Previous 12 Months May 2021 - April 2022 j Total Oil Produced (Barrels) 21274 Total Gas Produced (MCF) 25604 GOR 1203 GOR Determination BOE Average BOE per Day 112 399 Average MCFE per Day 651 910 Federal Financial Assurance Tribal Wel, No https //cogcc state co us/cogisdb/Faahty/FacilityDetadnap=12350949 2/2 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): Willow 22-4-4L File Location(s): LE0062-2 d Bruce Barker — County Attorney DATE: grl I ta-Z, NOTES: 4.9918 mineral acres / 800 acres spacing unit * .125 = 0.00077997 MATCH Hello