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Home My WebLink About20211075.tiffKEEP THIS COPY FOR YOUR RECORDS TO: NICKEL ROAD OPERATING DIVISION ORDER Date: March 22, 2021 1600 STOUT STREET, STE 1850 Effective Date: Date of First Sales DENVER CO 80202 The undersigned certifies the ownership of their decimal interest in production or proceeds as described below payable by Nickel Road Operating (Nickel Rd). Nickel Rd 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. OWNER NAME/ADDRESS OWNER: 0020218 WELD COUNTY GOVERNMENT ATTN: OIL AND GAS LEASING 1150 O STREET GREELEY CO 80631 Nickel Rd 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 Nickel Rd any amount attributable to an interest to which the undersigned is not entitled. Nickel Rd 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 Nickel Rd may have certain statutory rights under the laws of the state in which the property is located. Special Clauses: None REVENUE INT INTEREST TYPE PROD 1031 ELDER 5X-HNB-09-07-65 WELD OPERATOR: NICKEL ROAD OPERATING, LLC AP1 o5 -/P -. a 8' CO 0.00030067 RI IMPORTANT: TO AVOID DELAY IN PAYMENT, YOUR SOCIAL SECURITY NUMBER OR TAX IDENTIFICATION NUMBER MUST BE SHOWN BELOW. FAILURE TO FURNISH YOUR SOCIAL SECURITY OR TAX IDENTIFICATION NUMBER WILL RESULT IN WITHHOLDING TAX IN ACCORDANCE WITH FEDERAL LAW AND ANY TAX WITHHELD WILL NOT BE REFUNDABLE BY NICKEL RD. BE SURE YOUR SIGNATURE IS WITNESSED AND YOUR CORRECT ADDRESS IS SHOWN. WITNESSES/ATTEST: SIGNATURE: /S/t-i" - /' BOARD OF VNYYMIQN ATTEST: CLERK O F BOA DEPUTY CLERK TOTHE BOAR OWNERS SIGN HERE �Id County Government 50 O Street eeley, CO 80631 ne: 970-400-4225 970-336-7233 I D: 84-6000813 TAX I.D./SOCIAL SEC. NO. Jessica Reid Subject: Attachments: FW: Elder Division Order DOTO_Sec 9 -7N -65W - Weld County Ownership Pages_Redacted.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. Jessica, Sorry for the delay, was already out of the office when you sent this and went camping with the family for Spring Break. I'm back in the saddle now. In response to your below email I have the following bits of information: 1- 4491818 and 4491819 2- See below for calculations: Lease Tract Lease Req. Mineral Lease Tract Unit Type of Leasehold Royalty Owners Section No. No. No. Interest Royalty Acres Acres Tract LOR TOTAL UNTI LOR- Interest Weld County, Colorado, a quasi -municipal corporation S9 13A 41 1.00000000 0.18500000 1.21 1279.77 0.00017491 0.00030067 — LOR L�5 Weld County, Colorado, a quasi- municipal corporation Lto 9 qy 13B 40 1.00000000 0.18500000 0.87 1279.77 0.00012576 -. LOR 3- Pages from Opinions are attached. Per the opinion, it was drafted for the sole benefit of NRO and the pages being provided are informational only to assist in crunching the interests. 4- Unavailable. In looking this over I see that we assigned an ORRI to Source Rock Royalty LLC and I need to follow up with a formal approval of that per the leases. How do you all like to handle? Something of record or just a letter and space for signatures? Does that need to just run past you or is it something the Board of Commissioners officially approves? Let me know so I can get that in process. Thanks, Blake Leavitt - CPL I VP -Land I Cell - 970-590-2343 Nickel Road Operating LLC - 1600 Stout Street, Suite 1850 - Denver, CO 80202 Blake.Leavitt@NickelRoadOperating.com From: Jessica Reid <ireid@weIdgov.com> Sent: Friday, March 26, 20214:03 PM 1 To: Blake Leavitt<blake.leavitt@nickelroadoperating.com> Subject: Elder Division Order Hi Blake, I received the Elder 5X-HNB-09-07-65 DO. 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. 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 information requested so I can start processing this DO. Thank you. If this is an oil and gas communication please use the email address ctb-oilandgasleasin_g(a weld_gov.com opposed to my personal email address. 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 AMINI LAW FIRM, PLLC P.O. Box 16999 Sugar Land, Texas 77496 Telephone (713) 502-0781 January 4, 2021 Nickel Road Operating LLC 1600 Stout St, Suite 1850, Denver, CO 80202 Th s Op non has been rendered for the exc us ve use of N cke Road Operat rig LLC. Re: 639.74 acres, more or less' Section 9, Township 7 North, Range 65 West, 6th PM Weld County, Colorado2 DIVISION ORDER TITLE OPINION SUBJECT LAND: 639.74 acres of land, more or less, being all of Section 9, Township 7 North, Range 65 West, 6th PM, Weld County, Colorado, comprised of the following 14 Tracts: TRACT 1: 146.59 acres of land, more or less, located in the NW/4 of Section 9, being the land described in the Deed (Reception No. 1101231) dated February 21, 1951, from Theodore Tegtman and Hope L. Tegtman to Frank B. Neff3; TRACT 2: 93.80 acres of land, more or less, being the land excepted in the Deed (Reception No. 1101231) dated February 21, 1951, from Theodore Tegtman and Hope L. Tegtman to Frank B. Neff, being a portion of the NW/4 of Section 93, and the W/2NE/4 of Section 9; TRACT 3: 34.90 acres of land, more or less, located in the S/2SW/4 of Section 9, being designated as Lot A of RE 0709 -9 -3 -RE -4901 (Reception No. 3632639) LESS AND EXCEPT that portion of Tract 13A lying within the boundaries of said tract; TRACT 4: 115.78 acres of land, more or less, consisting of the following 2 subtracts: TRACT 4A: 77.18 acres of land, more or less, located in the N/2SW/4, being designated as Lot B of ARE 0709-9-3-AMRE-3319 (Reception No. 2989643); and TRACT 4B: 38.60 acres of land, more or less, located in the SE/4SW/4, being designated as Lot B of RE 0709 -9 -3 -RE -4901 (Reception No. 3632639) LESS AND EXCEPT that portion of Tract 13A lying within the boundaries of said tract. ii TRACT 5: 79.69 acres of land, more or less, consisting of the following 2 subtracts: TRACT 5A: 78.04 acres of land, more or less, being the E/2NE/4, LESS AND EXCEPT Tract 10; and TRACT 5B: 1.65 acres of land, more or less, located in the E/2SE/4, being described by metes and bounds in a Bargain and Sale Deed (Reception No. 3691431) dated May 3, 2010. TRACT 6: 77.88 acres of land, more or less, being the W/2SE/4, LESS AND EXCEPT Tract 9 and Tract 14; TRACT 7: 74.02 acres of land, more or less, being the E/2SE/4, LESS AND EXCEPT Tract 5B, Tract 8, and Tract 13B4; TRACT 8: 2.89 acres of land, more or less, located in the E/2SE/4, designated as Lot B of RE 0709 -09 -4 -RE -4126 (Reception No. 3329939); TRACT 9: 0.64 acres of land, more or less, located in the W/2SE/4, designated as the "Excepted Parcel" of RE 0709 -09 -4 -RE -1 025 (Reception No. 2121315); TRACT 10: 1.59 acres of land, more or less, being that portion of Lot C of RE 0709- 09 -4 -RE -4126 (Reception No. 3329939) located within the boundaries of the E/2NE/44; TRACT 11: 4.71 acres of land, more or less, located in the SW/4SW/4, designated as Lot A of ARE 0709-09-3-AMRE-3337 (Reception No. 2989642) LESS AND EXCEPT that portion of Tract 13A lying within the boundaries of said tract; TRACT 12: 4.02 acres of land, more or less, located in the N/2SW/4, designated as Lot A of ARE 0709-09-3-AMRE-3319 (Reception No. 2989643); TRACT 13:'2.08 acres of land, more or less, consisting of the following 2 subtracts: TRACT 13A: 1.21 acres of land, more or less, located in the S/2SW/4, described by metes and bounds in a Quit Claim Deed (Reception No. 877360) dated. March 20, 1941; and TRACT 13B: 0.87 acres of land, more or less, located in the E/2SE/4 described by metes and bounds in a Quit Claim Deed (Reception No. 877350).dated March 21, 1941. TRACT 14: 1.15 acres of land, more or less, located in the W/2SE/4 designated as Lot A of RE 0709 -09 -4 -RE -1025 (Reception No. 2121315). Ladies and Gentlemen: At your request, this Opinion is based upon the materials described in Exhibit "B" attached hereto. We find title to the lands under examination herein to be vested as set out below subject to the comments and requirements stated herein for the period of time from the date of the Patents to October 5, 2020 (hereinafter referred to as the "Effective Date"). RECORD OWNERSHIP Subject to the objections, requirements, and limitations below, we are of the opinion that title to the Subject Land was vested as of October 5, 2020, as follows: TRACT 13 2.08 acres of land, more or less SURFACE — TRACT 13 Weld County, Colorado, a quasi -municipal corporation [100%] 1.00000000 OIL AND GAS RIGHTS — TRACT 13 Weld County, Colorado, a quasi -municipal corporation [100%] 1.00000000 ROYALTY — TRACT 13 Owner Source Weld County, Colorado, a quasi - municipal corporation [18.5% RI] 0.18500000 L40, L41 23 OIL AND GAS LEASEHOLD ESTATE — TRACT 13 OVERRIDING ROYALTY —TRACT 13 Owner Source Source Rock Royalty LLC L40, L41 / [(20% less 18.5%) ORRI(7)] 0.01500000 A26 WORKING INTEREST —TRACT 13 Net Working Revenue Owner Interest Interest Source Nickel Road Development LLC [81.5% less (20% less 18.5%) ORRI(7)] 1.00000000 0.80000000 L40, L41 SUMMARY OF OIL AND GAS INTERESTS TRACT 13 Royalty Interest 0.18500000 Nonparticipating Royalty Interest 0.00000000 Unleased Oil & Gas Interest 0.00000000 Overriding Royalty Interest 0.01500000 Net Revenue Interest 0.80000000 1.00000000 24 General Comment This Opinion is rendered solely and exclusively for the benefit of Nickel Road Operating, LLC, and it is not a representation of the title to the property to any other party. Sincerely, Amini Law Firm PLLC JIM/JZY/AKA 63 EXHIBIT "A" OIL AND GAS LEASES (The "Subject Leases") 64 Lease 40 (L40): Dated: April 30, 2019 Filed: May 24, 2019 Recorded: Reception No. 4491818 Lessor: Weld County, Colorado, a political subdivision of the State of Colorado, acting by and through the Board of County Commissioners of the County of Weld Lessee: Nickel Road Development LLC Lands Described: Township 7 North. Range 65 West, 6th P.M. Section 9: 0.87 acres of land, more or less, as described by metes and bounds therein Interests Covered: 100% mineral interest in Tract 13B Primary Term: Ending on April 30, 2022 Royalty: 18.5% Delay Rentals: None; paid -up lease Pooling Provisions: Yes Warranty: None Special Provisions: Lessor reserves the right to conduct exploration on the leased land provided such exploration does not interfere with rights granted herein Provision 9A: Lessee, upon payment of a $100.00 fee and prior written consent of Lessor (which shall not be 82 unreasonably withheld), shall have the right to assign the entire leasehold interest of said Lessee in all or part of the land covered hereby. Provision 9B: If any assignment of a portion of the land covered hereby shall be approved, a new lease shall be issued to the assignee covering the assigned land, containing the same terms and conditions as this lease, and limited as to term as this lease is limited, and the assignor shall be released and discharged from all further obligations and liabilities as to that portion so assigned. Provision 9C: Lessee shall notify Lessor of all assignments of undivided percentage or other interests. Provision 10: Any and all reservations or assignments of overriding royalties shall be subject to approval by Lessor. Lease 41 (L41): Dated: April 30, 2019 Filed: May 24, 2019 Recorded: Reception No. 4491819 Lessor: Weld County, Colorado, a political subdivision of the State of Colorado, acting by and through the Board of County Commissioners of the County of Weld Lessee: Nickel Road Development LLC Lands Described: Township 7 North, Range 65 West, 6th P.M. Section 9: 1.21 acres of land, more or less, as described by metes and bounds therein Interests Covered: 100% mineral interest in Tract 13A Primary Term: Ending on April 30. 2022 Royalty: 18.5% Delay Rentals: None; paid -up lease Pooling Provisions: Yes Warranty: None Special Provisions: Lessor reserves the right to conduct exploration on the leased land provided such exploration does not interfere with rights granted herein Provision 9A: Lessee, upon payment of a $100.00 fee and prior written consent of Lessor (which shall not be unreasonably withheld), shall have the right to assign the entire leasehold interest of said Lessee in all or part of the land covered hereby. Provision 9B: If any assignment of a portion of the land covered hereby shall be approved, a new lease shall be issued to the assignee covering the assigned land, containing the same terms and conditions as this lease, and limited as to term as this lease is limited, and the assignor shall be released and discharged from all further obligations and liabilities as to that portion so assigned. Provision 9C: Lessee shall notify Lessor of all assignments of undivided percentage or other interests. Provision 10: Any and all reservations or assignments of overriding royalties shall be subject to approval by Lessor. 4/15/2021 Facility Detail Scout Card Related . Insp MIT it GIS R+. Doc EI COA Mfr WellboreZ2 Orders Ins; Bradenhead Surface Location Data for API # 05-123-50228 Status: PR - 9/1/2020 Well Name/No: ELDER #5X-HNB-09-07-65 (click well Click Here for Transporter Gatherer Info name For production) Operator: NICKEL ROAD OPERATING LLC - 10669 Federal Or State Lease #: Facility Status: PR Status Date 9/1/2020 FacilitylD: 465637 LocationiD: 465636 County: WELD #123 Location: NWSW 11 7N65W 6 Field: WATTENBERG - #90750 Elevation: 4865 ft. Planned Location: 2019FSL 181 FWL Lat/Long: 40.586480 / -104.638674 Lat/Long Source: Field Measured Chemical Disclosure Registry Job Date: 8/24/2020 Reported: 10/19/2020 Job End Date: 9/3/2020 Days to report: 46 Wellbore and Formation Details -- select either a wellbore or formation to expand. Wellbore Data for the orgna weflbore PR - 9/112020 Measured TDB; Wellbore Permit HORIZONTAL Permit #: Expiration Date: 6/25/2021 Prop Depth/Form: 17001 ft. Surface Mineral Owner Same: No Mineral Owner: FEE Surface Owner: FEE Unit: Unit Number: Formation And Spacing: Code: NBRR, Formation: NIOBRARA, Order: 407-2580, Unit Acreage: 1280, Drill Unit: S.9&10 - ALL Casing: String Type: CONDUCTOR, Hole Size: 24 in., Size: 16 in., Top: 0 ft., Depth: 80 ft., Weight: 42, Citings Type: PLANNED Cement: Sacks: 100, Top: 0 ft., Bottom: 80 ft. Casing: String Type: SURF, Hole Size: 13.5 in., Size: 9.625 in., Top: 0 ft., Depth: 1530 ft., Weight: 36, Citings Type: PLANNED Cement: Sacks: 405, Top: 0 ft., Bottom: 1530 ft. Casing: String Type: 1ST, Hole Size: 8.5 in., Size: 5.5 in., Top: 0 ft., Depth: 17109 ft., Weight: 20, Citings Type: PLANNED Cement: Sacks: 2245, Top: 1000 ft., Bottom: 17109 ft. Wellbore Completed Completion Date: N/A Spud Date: 2/17/2020 Spud Date Is: NOTICE Measured TD: Measured PB depth: True Vertical TD: True Vertical PB depth: Top PZ Location: Sec:10 Twp: 7N 65W Footage: 2219 FSL 460 FEL Depth Bottom Hole Location: Sec:9 Twp: 7N 65W Footage: 2231 FSL 460 FWL Depth Completed information for formation NOT COMPLETED Status: PR 1st Production Date: Formation Name: Production Method: Open Hole Completion: Tubing Size: Tubing Packer Depth: Open Hole Top: 3/1/2020 Choke Size: 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. https://cogcc.state.co.us/cogisdb/Facility/FacilityDetail?api=12350228 1/1 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): Elder 5X-HNB-09-07-65 File Location(s): LE0494, LE0495 II - BY: /��17�t /" DATE: 9/ Gabe KS'I� usek — Assistant County Attorney NOTES: 1.21 mineral acres / 1279.77 acres spacing unit *.185 = 0.00017491 MATCH 0.87 mineral acres / 1279.77 acres spacing unit *.185 = 0.00012576 MATCH = 0.00030067 TOTAL Hello