HomeMy WebLinkAbout20194321.tiff NADOA Model Form Division Order (Adopted 9/95 )
,/► VERDAD RESOURCES LLC
ye:Rost- 5950 CEDAR SPRINGS RD., SUITE 200 Date : 09/ 18/2019
RESOURCES DALLAS, TX 75235 Effective Date : First Sales 05/01/2019
OS -
PropertyName : BOYD 24- 1H & BOYD 24-4H bU ALL L�
Operator: VERDAD RESOURCES, LLC
Property Description : 24 52- 02N -64W
County and State : WELD/COLORADO
WELD COUNTY
Production : X Oil X Gas Both : COMMIS iONcn
Owner No . Owner Name Interest Type NRI Decimal
6043 WELD COUNTY COLORADO RI 0 . 00020934
PO BOX 758
GREELEY, CO 80632
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 :
Weld County Government
1150 " 0 " Street
SIGNATURE : A.
*ter
.,`.-� � Greeley, CO 80634
BOARD Or . ELD OUNt-, � ;CO. '. ►_ % ISSI • ' � } . i ''
/f�jl.'r ,q � t _.- ��`t Phone : 970-336 -7204
OdaATTES ii .�' Fax : 970-336 -7233
C L E R TC� T E B 161 Tax ID : 84-6000-813
CLERK TI E BOA `
DEPUTY 1 ;Pre
%eV ela. • I -A.
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.
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PLEASE RETAIN THIS COPY 2019 -4321
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Jessica Reid
From: Mary VanPelt < MVanPelt@VerdadOil . com >
Sent: Tuesday, September 17, 2019 1 : 11 PM
To : Jessica Reid
Cc: Lindsay Grose
Subject: Boyd 24 - 1H & Boyd 24-4H FW: Need more info for Division Order
Attachments: 001 .tif; 1023_001 . pdf
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 . Please the lease recording information below along with the RI decimal calculation . The 2 ' attachment is the applicable pages from the title opinion . Thanks !
From : Jessica Reid [ mailto :jreid@weldgov . com ]
Sent : Tuesday, September 17 , 2019 10 : 00 AM
To : Mary VanPelt < MVanPelt@VerdadOil . com >
Subject : Need more info for Division Order
Hi Mary ,
I received the attached Division Order, 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 . — LEASE 4304661
2 . Detailed calculations illustrating how the County' s royalty interest was derived . RI RATE X (TRACT ACREAGE/UNIT ACREAGE ) = UNIT NRI ( RI DECIMAL)
Interest Lease Tract Tract Unit Mineral
Owner Name Type No . No . Acreage Acreage TPF Interest GWI RI Rate Unit NRI
Weld County , Colorado , a political RI 3 3 1 . 4500 1281 . 4050 0 . 00113157 100 . 00% 0 . 00000000 0 . 18500000 0 . 00020934
subdivision of the State of Colorado
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 .
1
Please email me the information requested . Thank you .
Jess Reid
Deputy Clerk to the Board
Weld County
1150 O Street
Greeley, CO 80631
tel: 970-400-4212
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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
Tyson Gurney
, H ova L
Ben Gurney
Ben.Gurney@tghenergylaw.com
Verdad Resources,LLC February 22,2019
5950 Cedar Springs Rd., Suite 200 (Revised March 21, 2019)
Dallas,Texas 75235
Attn: Mr.Rick Rowe
RE: Drilling&Division Order Title Opinion
Attorney File#2221
LANDS COVERED BY OPINION:
Township 2 North.Range 64 West,6th P.M.
Section 13:All
Section 24: All
Weld County,Colorado
Containing 1281.4050 acres,more or less
CERTIFICAHONDATE: February 1,2019
1580 Lincoln Street,Suite 108D Phone(303)652-5040
Denver,Colorado 80203 Fax(303)652-5041
Drilling & Division Order Title Opinion
Sections 13 & 24 T2N R64W
Weld County, Colorado
February 22, 2019 (Revised March 21 , 2019)
Page 13
OWNERSHIP INTERESTS IN TRACT 3
(M/B Tract Located in the 1'VW/4 of Section 13)
SURFACE :
Owner Interest
Weld County, Colorado, a body 100 .0000%
corporate and politic
MINERAL INTERESTS & ROYALTY : (OIL, GAS & ASSOCIATED HYDROCARBONS ONLY)
Mineral Royalty
Owner Lease Req . Interest Interest
Weld County, Colorado, a political 3 100.000000% 18 .500000%
subdivision of the State of Colorado
OVERRIDING ROYALTY INTERESTS : None
LEASEHOLD WORKING INTERESTS :
Lease Lease Lease
Owner Lease Req. WI Mineral 1 R1.
Interest
Noble Energy, Inc. 3 100 .000000% 100.000000% 81 .500000%
Summary of Lease 3: (Covering a 100%mineral interest in Tract 3)
Dated: April 13,2017
Recorded: May 24,2017 at Reception No.4304661
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,
for its respective interest,do Board of County Commissioners
Lessee: Noble Energy,Inc.
Lands Covered: Township 2 North,Range 64 West,6°''P.M.
Section 13: That portion of a metes and bounds tract described in a Warranty
Deed, dated May 9, 1980, recorded at Reception No. 1825452 on May 21,
1980,lying in the W/2NW/4 further described:
Beginning at the Northwest corner of Section 13 and running along the North
line of Section 13, N. 89°09'41" E., 5.58 feet to a point on the new Eastern
right-of-way line of County Road 59;thence along said new Eastern
right-of-way line along a curve to the left having a radius of 2,834.79 feet, an
arc length of 174.78 feet and a chord which bears S.4°44'23"E., to a point;
thence S.6°30'21"E.,768.76 feet to a point; thence along a curve to the right
having a radius of 4,531.26 feet,an arc length of 460.36 feet and a chord which
bears S.3°35'43"E.,to a point on the Eastern right-of-way line of County Road
59 as traveled; thence S.89°18'55"W., 60.00 feet to a point on the Western
right-of-way line of County Road 59 as traveled;thence along the new Western
right-of-way line along a curve to the left having a radius of 4,471.26 feet an
arc length of 454.27 feet and a chord which bears N.3°35'43"W., to a point;
thence N.6°30`21"W., 239.16 feet to a point on the West line of Section 13;
thence along said West line N. 1°39'12"W., 707.35 feet to the point of
beginning
Weld County,Colorado
Containing 1.45 acres,more or less
Term: Until April 13, 2020, with a six (6) month option to extend and so long
thereafter as oil and gas is produced
Royalty: 18.5%
Post-Production Costs: None,royalties shall be free of all costs of any kind
Delay Rentals: None,this is a Paid-Up Lease
Shut-in Royalty Clause: Yes,gas only,in an amount of$2.50 per acre per year to be paid on the next
anniversary date of the lease. The minimum amount of such shut-in royalty
shall be $240. The maximum extension of the lease due to the existence of a
shut-in well shall be five(5)years.
Lesser Interest Clause: Yes
Pooling Clause: Yes, broad form with no acreage limitation. Such pooling shall be
accomplished or terminated by filing of record and with the COGCC a
Drilling and Division Order Title Opinion
Sections 13 and 24
Weld County,Colorado
Page 5
declaration of pooling or declaration of termination of pooling, and by mailing
or tendering a copy to Lessor.
Entireties Clause: None
Warranty Clause : None
Pugh Clause: Yes, voluntary horizontal pugh clause. When only a portion of the land under
this lease is committed by an agreement, Lessor may segregate the land and
issue a separate lease for each portion not committed thereunder. Non-
producing leases shall terminate on the first anniversary date of the lease
following the termination date of the unit
Special Provisions : Lease contains numerous unique lease provisions including but not limited to
the following provisions :
Lessee may make a written application to Lessor for an extension of this lease .
The granting of such extension shall be at the sole option of Lessor, according
to the following conditions : no lease term will be extended or more than six (6)
months from the original expiration date, the lessee shall pay to Lessor the sum
of one-third of the original bonus, and the royalty will remain the same.
Lessor reserves the right to conduct exploration on the leased land provided
such exploration does not interfere with rights granted herein
Lessee agrees to protect the leased land from drainage by offset wells located
on adjoining lands not owned by Lessor
At the option of Lessor, and with sixty (60) days ' notice to Lessee, Lessor may
take its royalty oil in king
No refund of any bonus consideration shall be made by Lessor if they own a
lesser interest in the oil and gas deposits than the entire undivided fee simple
estate
All royalties shall be payable within 120 days following the first commercial
sale and no more than sixty days after the end of the month following the month
during which production takes place. Subject to the Shut-in provisions of
Paragraph 16, upon failure to pay Lessor as provided, Lessor may elect to
terminate this lease by sending written notice to Lessee. Lessee shall cure
within 45 days or receive written approve by Lessor to defer such payment.
Lessor may elect to terminate this lease by filing a Notice of Termination with
the Weld County Clerk and Recorder
Lessee may assign the lease upon a payment of $ 100 . 00 and prior written
consent of the Lessor. A partial assignment shall require a new lease issued to
the assignee covering the assigned land. Lessee shall notify Lessor of all
assignments of undivided percentage or other interests
Overriding royalties shall not exceed 5 % unless production exceeds a monthly
average of 15 barrels per day or 90 IMF/D.
Drilling and Division Order Title Opinion
Sections 13 and 24
Weld County , Colorado
Page 6
Affidavits of Lease Extension: Documentation evidencing the extension of the subject Lease by the
production of oil and/or natural gas has been recorded including those documents recorded at Reception No.
4430551.
Pooling and Unitization Declarations: Documentation evidencing the polling and unitization of the subject
Lease by the production of oil and/or natural gas has been recorded including those documents recorded at
Reception Nos.4429817 and 4432786.
Assignments of Working and Overriding Royalty Interests: None
Drilling and Division Order Title Opinion
Sections 13 and 24
Weld County,Colorado
Page 7
Drilling & Division Order Title Opinion
Sections 13 & 24 T2N R64W
Weld County, Colorado
February 22, 20 19 (Revised March 21 , 2019)
Page 80
24 .
Document: Grant of Easement
Dated : July 8, 2009
Recorded : July 9, 2009 at Reception No. 3635264
Grantor : Vince C. Gerkin, Helena A . Gerkin & Carole A . Gerkin
Grantee : United Power, Inc.
Lands Traversed: Township 2 North . Range 64 Jest
Section 13 : Tract 1 , described herein
Weld County, Colorado
Grants : Easement for electrical and communication facilities
25 .
Document : Nonexcludive License Agreement Concerning Installation of 20" Water
Pipeline for Gas/Oil Operations
Dated : August 20, 2012
Recorded : September 13 , 2012 at Reception No. 3873083 , rerecorded at Reception No .
3910120
Grantor: Board of County Commissioners of Weld County Colorado
Grantee : Ken McGee Gathering, LLC
Lands Traversed: Township 2 North, Range 64 West
Section 13
And other lands
Weld County, Colorado
Grants : Permit for a 20" Water Pipeline
26 .
Document: Right-Of-Way Grant
Dated : October 9, 2012
Recorded: December 12, 2012 at Reception No. 3895519
Drilling&Division Order Title Opinion
Sections 13&24 T2N R64W
Weld County,Colorado
February 22,2019(Revised March 21,2019)
Page 86
IV. Other Surface Use Documents:
1.
Document: Map
Dated: July 31, 1908
Recorded: March 10, 1909,recorded at Reception No. 139314
Parties: The Farmers Reservoir&Irrigation Company and the Public
Lands Covered: Township 2 North,Range 64 West 6th P.M.
Section 13: Part
And other Lands
Weld County, Colorado
Summary: A map showing the location of the Big Hudson Canal West Branch running
through the subject lands
2.
Document: Right-Of-Way Map
Dated: August 31, 1928
Recorded: September 13, 1928,recorded at Reception No. 545994
Parties: Chicago,Burlington&Quincy Railroad Company
Lands Covered: Township 2 North,Range 64 West 6t`'P.M.
Section 13: SE/4
And other Lands
Weld County,Colorado
Summary: A map showing the location of the Chicago Burlington & Quincy Railroad
Right-of-Way running through the subject lands
2.
Document: Resolution
Dated: March 10, 1953
Recorded: April 20,2000,recorded at Reception No.2762876
Drilling & Division Order Title Opinion
Sections 13 & 24 T2N R64W
Weld County, Colorado
February 22, 2019 (Revised March 21 , 2019)
Page 87
Parties : The Board of County Commissioners of Weld County and the Public
Lands Covered: To nsh i p 2North_ Range 64 West 6h P. M ..
Section 13 : South line, tract 1 herin
And other Lands
Weld County, Colorado
Summary : A Resolution to vacate and abandon a road between Sections 13 , 24 and 18 and
19
3 .
Document : Deed of Access Rights
Dated : August 20, 1959
Recorded : August 27, 1959, recorded at Reception No . 1311518
Parties : Harlan E. Shaklee and Helen A . Shaklee and the Department of Highways,
State of Colorado
Lands Covered : Township 2North, Range 64 West 6iit . . ,
Section 24: SE/4
Weld County, Colorado
Summary : Grants right of Access for Interstate Hwy 76
Document: Deed of Access Rights
Dated : August 24, 1959
Recorded : September 10, 1959, recorded at Reception No. 1312387
Parties : James H. Blinn and Lucy Jean Blinn and the Department of Highways, State of
Colorado
Lands Covered : Townsl ip 2 North, Range 64 West 6th } ► «
Section 24 : SE/4
Weld County, Colorado
Summary : Grants right of Access for Interstate Hwy 76
COGIS - WELL Information Page 1 of 1
COGIS - WELL Information
Scout Card ' '. t�' Related Q Insp . CI MIT . GIS 1--(?a. Doc F-45 COA Y Wellbore Orders
Surface Location Data for API # 05- 123-46594 Status : PR 6/ 1 /2019
Well Name/No : BOYD #24- 1 H (click well name for production)
Operator: VERDAD RESOURCES LLC - 10651
Status Date: 6/1 /2019 Federal or State Lease #:
FacilitylD: 454526 Location ID : 454529
County : WELD #123 Location : NESW 24 2N64W 6 PM
Field : WATTENBERG - #90750 Elevation : 4 , 923 ft.
Planned Location 1441 FSL 2255 FWL Lat/Long : 40 . 120602/- 104 .501071 Lat/Long Source: Field Measured
Fr
Job Date: 4/2/2019 Reported : 8/5/2019 Days to report: 111
c ai' Fucs Job End Date : 4/16/2019 Originally Reported : 5/9/2019 Days to report: 23
Chemical Disclosure Registry
Wellbore Data for Sidetrack #00 Status : PR 6/ 1 /2019
Spud Date: 1 /9/2019 Spud Date is : NOTICE
Wellbore Permit HORIZONTAL
Permit #: Expiration Date : 3/23/2020 2 : 31 :47 PM
Prop Depth/Form : 17352 Surface Mineral Owner Same:
Mineral Owner: FEE Surface Owner: FEE
Unit: Unit Number:
Formation and Spacing : Code: NBRR , Formation : NIOBRARA , Order: 407-1192 , Unit Acreage: 1280 , Drill Unit: S :24 & S : 13 All
Casing : String Type : CONDUCTOR , Hole Size: 24, Size: 16, Top : 0 , Depth : 80 , Weight: 65
Cement: Sacks : 70, Top : 0, Bottom : 80 , Method Grade:
Casing : String Type : SURF , Hole Size : 13 . 5 , Size : 9 . 625 , Top: 0, Depth : 1700 , Weight: 36
Cement: Sacks : 462 , Top : 0 , Bottom : 1700, Method Grade:
Casing : String Type: 1ST , Hole Size: 8 .5, Size : 5.5, Top : 0, Depth : 17352 , Weight: 20
Cement: Sacks : 2176, Top: , Bottom : 17352, Method Grade :
Wellbore Completed
Completion Date : N/A
Measured TD : Measured PB depth :
True Vertical TD : True Vertical PB depth :
Top PZ Location : Sec: 24 Twp : 2N 64W Footage: 460 s 480 w Depth
Bottom Hole Location : Sec: 13 Twp : 2N 64W Footages : 460 FNS 480 FWL Depth
Formation Log Top Log Bottom Cored DSTs
Completed information for formation N-COM Status : PR 6/ 1 /2019
1st Production Date: 1 /1 /2019 Choke Size :
Status Date : 6/1 /2019 Open Hole Completion :
Commingled : Production Method :
Formation Name : NOT COMPLETED Status : PR
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
https ://cogccostateocoous/cogis/FacilityDetaileasp?facid= 12346594&type=WELL 9/ 17/2019
COGIS - WELL Information Page 1 of 1
7 sF.J Si ELL Inf. rniatt. n
Scout Card Related Q Insp . Q MIT GIS a Doc '. s COA Wellbore Orders
Surface Location Data for API # 05- 120-46590 Status : PR 6/ 1 /2019
Well Name/No : BOYD #24-4H (click well name for production)
Operator: VERDAD RESOURCES LLC - 10651
Status Date : 6/1 /2019 Federal or State Lease #:
FacilitylD: 454528 LocationiD: 454529
County: WELD #123 Location : NESW 24 2N64W 6 PM
Field : WATTENBERG - #90750 Elevation : 4 , 923 ft.
Planned Location 1441 FSL 2275 FWL Lat/Long : 40. 120601 /- 104. 500999 Lat/Long Source: Field Measured
Job Date: 4/3/2019 Reported : 8/5/2019 Days to report: 111
Fr o, Job End Date : 4/16/2019 Originally Reported : 5/9/2019 Days to report: 23
Chemical Disclosure Registry
Welibo re Data for Sidetrack #00 Status : PR 6/ 1 /2019
Spud Date: 1 /10/2019 Spud Date is : NOTICE
Wellbore Permit HORIZONTAL
Permit #: Expiration Date: 3/23/2020 2 : 31 :47 PM
Prop Depth/Form : 17358 Surface Mineral Owner Same:
Mineral Owner: FEE Surface Owner: FEE
Unit: Unit Number:
Formation and Spacing : Code: NBRR , Formation : NIOBRARA , Order: 407-1192 , Unit Acreage : 1280 , Drill Unit: S :24 & S : 13 All
Casing : String Type: CONDUCTOR , Hole Size: 24, Size : 16 , Top : 0 , Depth : 80, Weight: 65
Cement: Sacks : 70, Top: 0, Bottom : 80, Method Grade:
Casing : String Type: SURF , Hole Size: 13. 5, Size : 9. 625, Top: 0, Depth : 1700 , Weight: 36
Cement: Sacks: 462 , Top: 0, Bottom : 1700 , Method Grade:
Casing : String Type: 1ST , Hole Size: 8.5, Size : 5. 5 , Top : 0, Depth : 17358 , Weight: 20
Cement: Sacks : 2177, Top: , Bottom : 17358, Method Grade :
Wellbor ' Completed
Completion Date: N/A
Measured TD : Measured PB depth :
True Vertical TD : True Vertical PB depth :
Top PZ Location : Sec: 24 Twp : 2N 64W Footage: 460 s 1152 w Depth
Bottom Hole Location : Sec: 13 Twp: 2N 64W Footages: 460 FNL 1152 FWL Depth
Casing : String Type: CONDUCTOR , Hole Size: 24, Size : 16 , Top : 0, Depth : 80, Weight: 65
Cement: Sacks : 70, Top: 0, Bottom : 80, Method Grade:
Casing : String Type : SURF , Hole Size : 13 . 5, Size: 9. 625, Top: 0 , Depth : 1726, Weight: 36
Cement: Sacks: 800 , Top: 0 , Bottom : 1750 , Method Grade:
Casing : String Type: 1ST , Hole Size: 8. 5, Size : 5. 5 , Top : 0, Depth : 17342 , Weight: 20
Cement: Sacks : 2200, Top: , Bottom : 17342 , Method Grade:
Formation Log Top Log Bottom Cored 0STs
Completed information for formation N-COM Status : PR 6/ 1 /2019
1st Production Date: 1 /1 /2019 Choke Size:
Status Date : 6/1 /2019 Open Hole Completion :
Commingled : Production Method :
Formation Name: NOT COMPLETED Status : PR
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
httpsa//cogcc . state . co . us/cogis/FacilityDetail . asp?facid= 12346596&type=WFLL 9/ 17/2019
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 ) : BOYD - 4- 1 H , BOYD 24-4H
File Locajion ( s ) : ,.LE-0-007
BY: e,tr
ev-r,21./ Av:
DATE : I/ ( . f j
Bruce $ rker - County Attorney
1/4
NOTES : 1 .45 mineral acres/ 1281 . 4050 acres spacing unit * 18 . 5% = 0 . 00020934 MATCH
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