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HomeMy WebLinkAbout20162421.tiffNADOA Model Form Division Order (Adopted 9/95) DIVISION ORDER To: Bonanza Creek Energy, Inc. 410 17th Street, Suite 1400 Denver, CO 80202 Attn: Erin Pettigrew Property Number: CO045190 Property Name: NORTH PLATTE K21-O24-34HNC Operator: BONANZA CREEK ENERGY INC County and State: Weld County, Colorado Property Township 5 North, Range 63 West Description: Section 34: E2W2, W2E2 pi9l d 5-123 -4}l Sg(P Production: Oil Date: July 7, 2016 Effective Date: September 1, 2015 YO UR COpy Gas Other: ALL PRODUCTS Owner Name OWNER NUMBER: 1041 and Address: WELD COUNTY BOARD OF COMMISSIONERS Type of Interest: RI P O BOX 758 Decimal Interest: 0.07553248 GREELEY, CO 80632-0758 The undersigned certifies the ownership of their decimal interest in production or proceeds as described above payable by Bonanza Creek Energy, Inc. (Payor). (Company Name) Payor 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. Payor 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 Payor any amount attributable to an interest to which the undersigned is not entitled. Payor may accrue proceeds until the total amount equals $100.00, or pay yearly whichever occurs first, or as required by applicable state statute. 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 Payor may have certain statutory rights under the laws of the state in which the property is located. SIGNATURE: BOARD OF \TY `�I 51O ATTEST' CLER BY: DEPUTY CLERK TH BOA 2016 Weld County Government 1150 "O" Street Greeley, CO 80634 Phone: 970-336-7204 Fax: 970-336-7233 Tax ID: 84-6000-813 Federal Law requires you to furnish your Social Security or Taxpayer Identification Number. Failure to comply will result in 31 % tax withholding and will not be refundable by PI EKP Camvu AT'°-' Retain this copy for your records 2016-2421 17 LEOf70-1 LEWY 3 LEOI70-2 CO045190 NORTH PLATTE K21-O24-34HNC EZWZ, WELD COUNTY, CO SPACING UNIT = 317.85 ACRES TRACT 1 , LEASE NO. 22 ON TITLE OPINION: WELD COUNTY LEASE - RECEPTION #3572171 LEASE CONTRIBUTES 80.00 ACRES 20% ROYALTY RATE TRACT 3, LEASE NO. 35 ON TITLE OPINION: WELD COUNTY LEASE - RECEPTION #3870919 LEASE CONTRIBUTES 39.43 ACRES 20% ROYALTY RATE TRACT 33, LEASE NO. 38 ON TITLE OPINION: WELD COUNTY LEASE - RECEPTION #3883079 LEASE CONTRIBUTES 0.61 ACRES 20% ROYALTY RATE 20% * 120.04 / 317.85 = 0,07553248 80.00 LEO I?0 _ I LtOI7OL 39.43 0.61 LE03WW1 120.04 BEATTY & WOZNIAK, P.C. ATTORNEYS AT LAW 216 SIXTEENTH STREET, SUITE. 1 100 DEN V ER, COLORADO 80202-5115 TELEPI-ioNy. 303-407-4499 FAX 1-800-886-6566 www.bwenergylaw.com RYAN MCKEE 303-407-4449 RMCK`:E@RWENERGYLAW.COM October 20, 2015 Bonanza Creek Energy, Inc. Attention: Alexander Newell 410 17th Street, Suite 1500 Denver, CO 80202 COLORADO NEW MEXICO NORTH DAKOTA UTAH WYOMING, Re: Updated Drilling and Division Order Title Opinion Section 33: F/2E/2, Section 34: All, Township 5 North, Range 63 West, 6th P.M. Weld County, Colorado Our File No.: 30 17.0042 Ladies and Gentlemen: Pursuant to Bonanza Creek Energy, Inc.'s ("Bonanza Creek") request, we have examined the materials listed below and based upon that information we submit this Updated Drilling and Division Order Title Opinion ("Opinion") covering the following described lands and wells ("Subject Lands" or "Subject Section" and "Subject Wells"): LANDS COVERED BY TITLE OPINION Township 5 North, Range 63 West, 6th P.M. Section 33: E/2E/2 Section 34: All Weld County, Colorado containing 795.94 acres, more or less WELLS COVERED BY TITLE OPINION North Platte E14-A11-341-INC North Platte 14-1 I -341NB North Platte J14-F1.1-34HNC North Platte J-F-34HNB North Platte J-F-34HC North Platte E-A-34HNB North Platte E-A-34HC North Platte 14-11-34HC North Platte 21-24-34HNB North Platte K21-O24-34HC North Platte K21-O24-34HNC North Platte K3 I -O34-34HNB North Platte 31-34-34HNC North Platte P31-T34-34HNH North Platte P31 -T34-34HC BEATTY & WOZNIAK, P.C. Bonanza Creek Energy, Inc. E/2E/2 of Section 33, All of Section 34, T5N, R63W, 6th P.M. — 3017,0042 October 20, 2015 Page 3 of 286 11. Unrecorded Extension Letter, dated October 26, 2011, from Bayswater Exploration & Production, LLC to Sally Ann Hooks, provided by Alexander Newell of Bonanza Creek Energy, Inc. 12. Unrecorded Farmout Agreement, dated effective November 17, 2000, between CFG Energy, Inc. and Sovereign Energy LLC, provided by Alexander Newell of Bonanza Creek Energy, Inc. 13. Assignment, Bill of Sale and Conveyance, recorded August 31, 2015, at Reception No. 4137934, from Anadarko E&P Onshore LLC to Noble Energy, Inc., provided by Alexander Newell of Bonanza Creek Energy, Inc. 14. Online well information available from the official website of the Colorado Oil and Gas Conservation Commission as of October 1, 2015, accessible at http://cogcc.state.co.us/. 15. Online acreage information available from the official website of the Bureau of Land Management as of October 1, 2015, accessible at http://www.bim.gov/lr2000/sitetnap.htm. Unless otherwise indicated, book and page recording information shown in this Opinion pertains to the records of the Office of the Clerk and Recorder of Weld County, Colorado. OWNERSHIP M Based upon the Materials Examined and subject to the Comments and Requirements set forth herein, we find title to the Subject Lands and leases, as of August 6, 2015, to be owned and encumbered as follows: TRACTS For purposes of identification and convenience, we have divided the Subject Lands into the following Tracts': Tract 1: Section 34: Tract 2: Section 34; N/2NE/4, SW/4NE/4 Containing 119.25 acres of land, more or less SE/4NE/4, SE/4, less the Cottonwood P.U.O. as described at Reception No. 2990418 and those metes and bounds tracts herein described as Tract Nos. 16-33 Containing 166.23 acres of land, more or less 1 See Prior Comment and Requirement Nos. 2-3 regarding this Opinion's reliance on outside surveys and deed plotting software for the determination of the acreage totals given to the below described Tracts. BEATTY $4 Wortloax, P.C. Bonanza Creek Energy, Inc. E/2E/2 of Section 33, All of Section 34, T5N, R63W, 6th P.M, — 3017.0042 October 20, 2015 Page 4 of 286 Tract 3: Tract 4: Tract 5: Tract 6: Tract 7: Tract 8: Tract 9: Tract 10: Tract 11: Tract 12: Tract 13: Tract 14: Tract 15: Section 34: Section 34: Section 34: Section 34: Section 34: Section 34: Section 34: Section 34: Section 34: Section 34: Section 34: Section 34: Section 34: NE/4NW/4 Containing 39.43 acres of land, more or less NW/4NW/4, S/2NW/4, and a 32.00 acre tract Containing 1.52.65 acres of land, more or less Those lands described in the Right of Way Deed, recorded in the records of Weld County, Colorado at Reception No. 6909 Containing 18.38 acres of land, more or less Lots 13-15 of Block 2 in the Town of Hardin Containing 0.96 acres of land, more or less 43.51 acre tract more particularly described in that Warranty Deed, recorded in the Records of Weld County, Colorado at Reception No. 172820. Containing 43.51 acres of land, more or less Blocks 4, 5, C, & D in the Town of Hardin Containing 46.10 acres of land, more or less Lots 16-18 of Block 2 and Lots 1.2 and 28-29 of Block 3 in the Town of Hardin Containing 2.22 acres of land, more or less Lots 11-12 and 19-20 of Block 2 in the Town of Hardin Containing 0.97 acres of land, more or less Lots 1-8, 23-30 of Block 2 in the Town of Hardin Containing 4,20 acres of land, more or less Lots 9.and 22 of Block 2 in the Town of Hardin Containing 0.48 acres of land, more or less Lot 10 of Block 2 in the Town of Hardin Containing 0.25 acres of land, more or less Lot 21 of Block 2 in the Town of Hardin Containing 0.23 acres of land, more or less Lots 3-27 of Block 3 in the Town of Hardin Containing 6.56 acres of land, more or less BEATTY & WOZNIAK, P.C. Bonanza Creek Energy, Inc. E/2E/2 of Section 33, All of Section 34, T5N, R63W, 6`" P.M. - 3017.0042 October 20, 2015 Page 6 of 286 Tract 29: Section 34: Tract 30: Section 34: Tract 31: Section 34: Tract 32: Section 34: Tract 33: Section 34: Tract 34: Tract 35: Tract 36: Tract 37: Open Space Cottonwood Falls, P.U.I. Containing 7.10 acres of land, more or less A 3,25 acre metes and bounds tract located in the SE/4SE/4 more particularly described at Reception No. 2440048 Containing 3.25 acres of land, more or less A 3.02 acre metes and bounds tract located in the SE/4SE/4 lying East of tract more particularly described at Reception No. 2440048, North of Tract No. 33, and West of Tract No. 32 Containing 3.02 acres of land, more or less That portion of a strip of land fifty feet (50') in width lying between Sections 34 and 35, the same being twenty-five feet (25') on each side of the Section line, less that portion lying within the NW/4 of Section 35 and that portion of Tract No. 33 lying in the SE/4SE/4 of Section 34 Containing 2.97 acres of land, more or less A strip of land fifty feet (50') in width off the entire South side of the S/2SE/4 of Section 34, except those portions vacated by Resolution adopted by Weld County Board of County Commissioners on August 12, 1996, recorded at Reception No. 2507157 Containing 1.72 acres of land, more or less Section 33: E/2NE/4 Lying North of the Railroad Right of Way Containing 70.7769 acres of land, more or less Section 33: SE/4NE/4 South of Weld County Road 380 Containing 3.3358 acres of land, more or less Section 33: Railroad ROW/Fee Lands in N/2 Containing 2.9430 acres of land, more or less Section 33: Lots A and B of RE2599 in NE/4 Containing 2.1732 acres of land, more or less Lot 13 was initially conveyed as platted in the Cottonwood Falls P.U.D. recorded at Reception No. 3128714; however, in subsequent conveyances, Lot 13 was described as Lot 13, Amended Cottonwood Falls, P.U.D. See Prior Comment and Requirement No. 30 regarding the assumed ineffectiveness of the Amended Cottonwood Falls, P.U.D. BEATTY & WOZNIAK, P.C. Bonanza Creek Energy, Inc. E/2E/2 of Section 33, All of Section 34, T5N, R63W, 6`h F.M. - 3017.0042 October 20, 2015 Page 7 of 286 Tract 38: Tract 39: Tract 40: Section 33: Weld County Road 380 in S/2NE/4 Containing 0.7711 acres of land, more or less Section 33: SE/4SE/4 Containing 40,00 acres of land, more or less Section 33: NE/4SE/4 Containing 40.00 acres of land, more or less SURFACE Per the instruction of Bonanza Creek, the surface ownership has not been determined for the drafting of this Opinion. If Bonanza Creek would like a surface ownership determination, it should contact this office so that the surface ownership may be determined and added to this Opinion. OIL, GAS AND OTHER MINERALS (EXCLUDING COAL) Tract 1: N/2NE/4 SW/4NE/4 of Section 34J5N, R63W, 6th P.M. Owner Weld County, Colorado TOTAL Interest 100.000000% 100.000000% Tract 2: SE/4NE/4, SE/4 of Section 34, T5N, R63W, 6th P.M., less Tract Nos. 16-33 Owner Interest Rex Monahan Family Trust., dated June 16, 1979, Doris L. 49.000000% Monahan Trustee The Prospect Company 70 Ranch, LLC Full Sea Equities, L.L.C. DAX 2020, LLC 25,500000% 20.461200% 2.519400% 2.418624% BEATTY & WOZNIAK, P.C. Bonanza Creek Energy, Inc. E/2F,/2 of Section 33, All of Section 34, T5N, R63W, 6th P.M. — 3017.0042 October 20, 2015 Page 8 of 286 Owner Interest Alex Speros TOTAL Tract 3: NEB/4NW/4 of Section 34, TSN, R63W, 6th P.M. Owner Weld County, Colorado TOTAL 0.100776% 100.000000% Interest 100.000000% 100.000000% Tract 4: NW/4NW/4, S/2NW/4 and 32 Acre Tract of Section 34, TSN, R63W, 6th P.M. Owner Interest Dorothy Baldwin and Ernest Baldwin, as joint tenants 20.000000% James Robert Mondt, as Trustee of the James Robert Mondt Trust 20.000000% Jack R. Mondt 20.000000% William E. Mondt and Jo Ann W. Mondt, as joint tenants 20.000000% Ervin L. Mondt and Patsy H. Mondt, as joint tenants 20.000000% TOTAL 100.000000% 3"racd 5; A nilroad Lands of Section 34, TSN, R63W, 6th P.M. Owner Interest Anadarko Land Corp, 100.000000% TOTAL 100.000000% BEATTY & WOZNIAK, P.C. Bonanza Creek Energy, Inc. E/2E/2 of Section 33, All of Section 34, T5N, R63W, 6th P.M. - 3017.0042 October 20, 2015 Page 21 of 286 Tract 32: That portion of a strip of land fifty feet (50') in width lying between Sections 34 and 35., the sea being twenty-five feet (25') on each side of the Section line, less that portion lying within the NW/4 of Section 35 and that portion of Tract No. 33 lying in the SE/4SE/4 of Section 34, T5N,_ R63W, 6th P.M. Owner Interest Weld County, Colorado's 100.000000% TOTAL 100.000000% Tract 33: A ;Strip of land fifty feet (SO'? in width off the entire South side of the S/2SE/4 o! geEtioii 34, i'SN, R63W, 6th P.M., except those portions vacated by Resolution adopted by Weld County Board of County Commissioners on August 12, 1996, recorded at Reception No. 2507157 Owner Weld County, Colorado's TOTAL Interest 100.000000% 100.000000% Tract 34: E/2NE/4 Lying North of the Railroad Right of_Way in Section 33, ,TSN, ,R63W, 6th P.M. Owner Interest Dorothy Baldwin and Ernest Baldwin, as joint tenants 20.000000% James Robert Mondt, as Trustee of the James Robert Mondt Trust 20.000000% Jack R. Mondt 20,000000% William E. Mondt and Jo Ann W. Mondt, as joint tenants 20.000000% Ervin L. Mondt and Patsy H. Mondt, as joint tenants 20.000000% TOTAL 100.000000% " See Prior Comment and Requirement No. 26. 18 See Prior Comment and Requirement No. 26. BEATTY & WOZNIAK, P.C. Bonanza Creek Energy, Inc. E/2E/2 of Section 33, All of Section 34, T5N, R63W, 6ch P.M. — 3017.0042 October 20, 2015 Page 153 of 286 VI.I. OWNERSHIP OF OIL AND GAS, AND THE PROCEEDS FROM THE SALE OF OIL AND GAS, AS TO THE NORTH PLATTE K21-O24-34HC, THE NORTH PLATTE K21-O24-34HNC, AND THE NORTH PLATTE K31-O34-34HNB WELLS,LOCATED WITHIN A UNIT COMPRJSED OF THE W/2E/2 AND E/2W/2 OF SECTION 34, TOWNSHIP 5 NORTH, RANGE 63 WEST, 6TH P.M. FROM THE SURFACE TO THE BASE OF THE CODELL FORMATION: The total proceeds of production from the subject spacing unit have been apportioned in our Division of Interest according to each Tract's participation factor ("PF"), as follows: Tract 1: Tract 3: Tract 4: Tract 5: Tract 11: Tract 8: Tract 7: Tract 2: Tract 33: As to Oil Production Owner 0.25169105 0.12405223 0.16240365 0.01635992 0.00072361 0.05619003 0.13688847 0.24977190 0.00191914 Bonanza Creek Energy Operating Company, LLC Tract 1 (1.00 WI x 0.80 NRI 0GL x 0,25169105 PF) Tract 3 (1.00 WI x 0.80 NRI Oa x 0.12405223 PF) Tract 4 (0.97070312 WI x 0.8750 NRI 0GL x 0,16240365 PF) - (0.97070312 WI x 0.0650 0RI x 0.16240365 PF) - (0.97070312 WI x 0.01 0RI x 0.16240365 PF) - (0.3515625 WI x 0.0085 0RI x 0.16240365 PF) - (80,00 acres/317.85 acres) (39.43 acres/317.85 acres) (51.62 acres/317.85 acres) (5.20 acres/317.85 acres) (0.23 acres/317.85 acres) (17.86 acres/317.85 acres) (43.51 acres/317.85 acres) (79.39 acres/317.85 acres) (0.61 acres/317.85 acres) Working Net Revenue Lease Interest Interest Type No. 0.90345864 0.73473665 WI 2-6, 8- 13, 16, 18, 20, 2(fi 2� , 35, 38, 13- 50, 51, 53.55, 57-60 BEATTY & WOZNIAK, P.C. Bonanza Creek Energy, Inc, E/2E/2 of Section 33, All of Section 34, T5N, R63W, 6th P.M. — 3017.0042 October 20, 2015 Page 163 of 286 Owner ILB Energy, LLC Tract 8 (0.00005052 WT x 0.01583334 ORI x 0.05619003 PF) (0.00008337 WI x 0.01583334 O121 x 0.05619003 PF) Tract 7 (0,00002526 WI x 0.01583334 ORI x 0.13688847 PF) (0.00004168 WI x 0.01583334 ORT x 0.13688847 PF) Madant Energy, LLC Tract 8 (0.00280644 WI x 0.01583334 ORE x 0.05619003 PF) (0.00463158 WI x 0.01583334 ORE x 0.05619003 PE) Tract 7 (0.00140322 WI x 0.01583334 ORI x 0.13688847 PF) (0.00231579 WI x 0.01583334 ORI x 0.13688847 PF) Westco Family Limited Partnership Tract 8 (0.00280644 WI x 0.0025 ORI x 0,05619003 PF) (0.00463158 WI x 0,0025 ORI x 0.05619003 PF) Tract 7 (0.00140322 WI x 0.0025 ORI x 0.13688847 PF) (0.00231579 WI x 0.0025 OR1 x 0.13688847 PE) Weld County, Colorado Tract 1 (1.00 MI x 0.20 LOR x 0.25169105 PF) Tract 3 (1.00 MI x 0,20 LOR x 0.12405223 PF) Tract 33 (1.00M1x0.20LOR x0.00191914PF) Dorothy Baldwin and Ernest Baldwin, as joint tenants Tract 4 (0.20 MI x 0.1250 LOR x 0.16240365 PF) Working Net Revenue Lease Interest Interest Type No. 0.00000026 ORI 21 0.00001468 ORI 21 0.00000232 ORI 21 0.07553248 RI 22, 35, 38 0.00406009 RI 5 BEATTY & WOZNIAK, P.C. Bonanza Creek Energy, Inc. E/2E/2 of Section 33, Ali of Section 34, T5N, R63W, 6`~ P.M. — 301 7.0042 October 20, 2015 Primary Term: Royalty: Delay Rental: Shut-in Clause: Pooling/Unitization Clause: Entireties Clause: Pugh Clause: Special Provisions: Extension: Affidavits of Production: OIL AND GAS LEASE NO.22 Dated: Recorded: Lessor: Lessee: Lands Covered: Primary Term: Royalty: Delay Rental: Shut-in Clause: Five (5) years, and as long thereafter; option to extend the primary term for three (2) [sic] additional years by mailing a bonus consideration equal to one hundred fifty percent (100%) [sic] of the bonus consideration originally paid for this lease, 1/8th None; Paid -up lease One Dollar per year per net royalty acre Yes; broad form pooling and unitization clause with a provision for a cooperative or unit plan of development or operation approved by applicable government authority. None None This lease shall cover all Lessor's right, title and interest in the above described lands including streets, roads, alleys and any reversionary or after acquired interest therein. Top lease clause By Affidavit of Lease Extension dated November 8, 2011, recorded December 2, 2011, at Reception No. 3809507, by Bayswater Exploration & Production, LLC stating that it has extended the Lease, See Exhibit C of this Opinion for the Affidavits of Production covering this lease as to the Subject Lands. July 16, 2008 August 14, 2008 Reception No. 3572171 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 Bonanza Creek Energy Operating Company, LLC Township 5 North, Range 63 West, 6th P.M. Section 34: N/2NE/4, SW/4NE/4 Containing. 120.00 acres, more or less Three (3) years, and as long thereafter 20.00% $120.00 per year, computed at the rate of $1,00 per net mineral acre or fraction thereof per year Yes, upon Lessor approval, with payment of $2,00 per A-28 BEATTY & WOZNIAK, P.C. Bonanza Creek Energy, Inc. E/2E/2 of Section 33, All of Section 34, T5N, R63W, 6th P.M. — 3017.0042 October 20, 2015 Pooling/Unitization Clause: Entireties Clause: Pugh Clause: Special Provisions: Affidavits of Production: acre of lease per annum in addition to the annual rental, The minimum amount of such shut-in royalty payment shall be $240.00. The maximum extension of the leases, due to the existence of a shut-in well, shall be five years beyond the extension term as described in the Extension paragraph included within the oil and gas lease. Yes, requires recording of declaration in addition to mailing a copy of any such declaration to the Lessor or to the depository bank. Unitization only upon approval of Lessor. None None -Lessor reserves the right to conduct exploration on the leased land provided such exploration does not interfere with the rights granted herein -Lessee, with prior written consent of Lessor, shall have the right to assign the entire leasehold interest of said Lessee in all or part of the land covered hereby, but not less, however, than contiguous tracts of approximately forty (40) acres or Governmental lot corresponding to a quarter -quarter section for any partial assignment, and for approval of such assignments Lessor shall make an assignment charge in an amount to be determined by Lessor. -Lessee shall notify Lessor of all other assignments of undivided percentages or other interest, though no approval is required. -Any and all reservations or assignments or [sic] overriding royalties shall be subject to approval by Lessor. The total of said overriding royalties shall not exceed five percent (5%), including any overriding royalty previously provided for unless production exceeds a monthly average of fifteen (15) barrels per day or ninety thousand cubic feet of gas per day (90 MCF/D). In the event production drops to this amount or less, any overriding royalties which exceed five percent (5%) may be suspended. -Upon discovery of oil and gas or either of them on the leased land, Lessee shall proceed with reasonable diligence to develop said land at a rate and to an extent commensurate with the economic development of the field in which the leased land lies. See Exhibit C of this Opinion for the Affidavits of A-29 BEATTY & WOZNIAK, P.C. Bonanza Creek Energy, Inc. E/2E/2 of Section 33, An of Section 34, T5N, R63W, 6th P.M. -- 3017.0042 October 20, 2015 Production covering this lease as to the Subject Lands. OIL AND GAS LEASE NO.23 Dated: Recorded: Lessor: Lessee: Lands Covered: Primary Term: Royalty: Delay Rental: Shut-in Clause: Pooling/Unitization Clause: December 1, 2009 November 15, 2011 Reception No. 3805724 Anadarko E&P Company LP and Anadarko Land Corp. Kerr-McGee Oil & Gas Onshore LP Township 5 North, Range 63 West, 6th P.M. Section 33: N/2SE/4, Limited to those depths and formations from the surface to the stratigraphic equivalent of 7,322 feet, as found in the Hergenreder 13-33U well located in the NW/4SW/4. Containing 80.00 acres, more or less Twenty-four (24) months, and as long thereafter 20.00% None; paid -up $10.00 per net acre which payment shall be made to Lessor at P.O. Box 173779, Denver, Colorado 80217- 3779, ATTN: Manager, Land Administration, on or before the 90th day from and after the date on which such well is or was shut-in, and annually thereafter a similar payment may be made on or before the anniversary date on which such well was shut-in. If such payment, or payments, are timely made, it shall be considered that gas is being produced in paying quantities from the Leased Premises under all the terms and provisions of this Lease (but only for so long as the well continues to be capable of producing in paying quantities). Notwithstanding the foregoing, Lessee may not maintain this Lease by making Shut-in Well Payments as to any well more than three (3) cumulative years during any five (5) year period. Yes; Lessee may not commit the Leased Premises or any portion thereof to a federal unit without prior written consent of Lessor. Any such pooling shall be into a well unit or units not exceeding forty (40) acres plus an acreage tolerance of ten percent (10%), for oil, and not exceeding one hundred sixty (160) acres, plus acreage tolerance of ten percent (10%), for gas, except that larger units may be created to conform to any spacing or well unit pattern that may be prescribed by A-30 BEATTY & WOZNIAk:, P.C. Bonanza Creek Energy, Inc. E/2E/2 of Section 33, All of Section 34, TSN, R63W, 6th P.M. - 3017.0042 October 20, 2015 OIL AND GAS LEASE NO. 35 Dated: Recorded: Lessor: Lessee: Lands Covered: Primary Term: Royalty: Delay Rental: Shut-in Clause: Pooling/Unitization Clause: Entireties Clause: Pugh Clause: Special Provisions161: August 27, 2012 September 5, 2012 Reception No. 3870919 Weld County, Colorado Bonanza Creek Energy Operating Company, LLC Township 5 North, Range 63 West, 6th P.M. Section 34: NE/4NW/4 Containing 40.00 acres, more or less Until August 27, 2015 20% $40.00, computed at a rate of $ 1.00 per mineral acre per year. $2.00 per acre of the lease per annum in addition to the annual rental. The minimum amount of such shut-in royalty payment shall be $240. The maximum extension of the lease, due to the existence of a shut-in well, shall be five years beyond the extension term. Yes; broad form pooling and unitization clause with provision for the issue of a separate lease for lands not committed thereunder. None None Assignments: upon payment of a $25 fee and prior written consent of Lessor. Overriding Royalty: subject to approval by Lessor and shall not exceed five percent (5%), including any overriding royalty previously provided for unless production exceeds a monthly average of fifteen (15) barrels per day or ninety thousand cubic feet of gas per day (90 MCF/D) . Extension: A) No lease term will be extended for more than six (6) months from the original expiration date, B) Lessee shall pay to the Lessor the sum of one-third of the original bonus, with a minimum bonus of Ten Dollars ($10.00) per acre, C) Lessee must pay to the Lessor the sum of One Dollar ($1.00) per acre leased as delayed rental for the term of the extension, and D) the royalty will remain the same. 161 There are numerous non-standard provisions incorporated in this lease agreement. See lease agreement for full descriptions of all such provisions. A-42 BEATTY & WOZNIAFC, Y.c. Bonanza Creek Energy, Inc. E/2E/2 of Section 33, All of Section 34, T5N, R63W, 6tb P.M. — 3017 0042 October 20, 2015 Lessee: Lands Covered: Primary Term: Delay Rental: Royalty: Shut-in Clause: Pooling/Unitization Clause: Warranty of Title: Lesser Interest Clause: Pugh Clause: Other/Special Provisions: Affidavits of Production: OIL AND GAS LEASE NO. 38 Dated: Recorded: Lessor: Lessee: Lands Covered: Primary Term: Delay Rental: Royalty: Shut-in Clause: Pooling/Unitization Clause: Bonanza Creek Energy Operating Company, LLC Township 5 North, Range 63 West, 6th P M Section 34: A strip of land fifty feet in width lying between Sections 34 and 35, Township 5 North, Range 63 West, the same being 25 feet on each side of the section line (insofar as same lies within said Section 34) Containing 2.97 acres, more or less Three years and so long thereafter as oil or gas of whatsoever kind or nature are produced N/A, paid -up lease 20% One dollar per year per net mineral acre Yes No Yes No -Lessor's consent to assignment required. Shall not be unreasonably withheld. -Lessor to give 45 -day notice of claimed default. -Lessee shall not conduct operations of any kind upon the surface of the lands herein described without the express written consent of Lessor. Such consent shall not be unreasonably withheld. See Exhibit C of . this Opinion for the Affidavits of Production covering this lease as to the Subject Lands. October 10, 2012 Octobe-1 y 1O12 Reception No. 3883079 Weld County, Colorado Bonanza Creek Energy Operating Company, LLC Township 5 North, Range 63 West, 6th P.M. Section 34: A strip of land fifty feet in width off the entire south side of the SE/4 Containing 3.00 acres, more or less Three years and so long thereafter as oil or gas of whatsoever kind or nature are produced N/A, paid -up lease 20% One dollar per year per net mineral acre Yes A-44 BEATTY & WOZNIAK, P.C. Bonanza Creek Energy, Inc. E/2E/2 of Section 33, All of Section 34, T5N, R63W, 6`h P.M. - 3017,0042 October 20, 2015 Warranty of Title: Lesser Interest Clause: Pugh Clause: Other/Special Provisions: Affidavits of Production: OIL AND GAS LEASE NO. 39 Dated: Recorded: Lessor: Lessee: Lands Covered: Primary Term: Royalty: Delay Rental: Shut-in Clause: Pooling/Unitization Clause: Entireties Clause: Pugh Clause: Special Provisions: Affidavits of Production: No Yes No -Lessor's consent to assignment required. Shall not be unreasonably withheld. -Lessor to give 45 -day notice of claimed default. -Lessee shall not conduct operations of any kind upon the surface of the lands herein described without the express written consent of Lessor. Such consent shall not be unreasonably withheld. See Exhibit C of this Opinion for the Affidavits of Production covering this lease as to the Subject Lands. July 1, 2012 December 7, 2012 Reception No. 3894189 William D. Thompson, Tina R. Thompson, and Jason J. Thompson, as joint tenants Bonanza Creek Energy Operating Company, LLC Township 5 North, Range 63 West, 6th P.M. Section 34: Lot 13, Cottonwood Falls PUD, according to that certain map or plat thereof recorded March 29, 2007 under Reception No. 3465185, being located in the E/2 of Section 34 Containing 1.6963 acres, more or less Three (3) years, and as long thereafter 1/6`i' None, Paid -up Lease Yes, $10.00 per year per net mineral acre Yes None None Notwithstanding anything to the contrary herein contained, this is a non -surface use oil and gas lease and no operations of any kind shall be conducted on the lands herein -above described. See Exhibit C of this Opinion for the Affidavits of Production covering this lease as to the Subject Lands. EXHIBIT F SECTION 34: W/2167 AREA ALLOCATION TNTwar 14 OPSECTION 34. TOWNSHIP 3 N0RTTL RANGE 63 WEST OF4M PRINCIPAL 54BSIDIAN. COUNTY OF WELD, STATE, OF COLORADO D' 6C47 IMO' /W SC4Llitra00r ALL UNCAP DISTANCES ARE MEASURED IN FEE1 AND DECIMAL FEET warts AISA ALLOCATION OC TION TABLE wan BCIiMSEFELT ACREAGE , KIIrrQ I 1.717.542 WO WUDC 10tH Y 2 6,610.555 en -es motor 4 2,!41,131 an MI7CARATATIOWS 4 BOMB IAm RAILROAD 3 ImS, r 6 *100 133 Lures. 9 41.00 4a it OAN s ___x010 040 1.01* 0 ^1 4.}7 SCHOOL OWL NIL? IA iu1M 6.23 CARRY it IRAN •t GIGOT 12 211010 6S MANION It 1ttl1A 420 f"RUNT& 14 . 2$0°7.113 46. to 10RA11CIi TOTAL 13,.762,076 3054 ALLKS TAYLOR h. DUKE, LIT, MO Meg on- .,* t Ham.. CU...w 41110 We) ago toast yfYOR NOTE; 1) TAM arm a11aa!►Isn was aaarn6he ham fools and Seas of mated. Ifs grid ersasrserwls veto farm, .� 110111N Mt a'w,u —44 ;iez Wcwttac IOC;4 - Colt VACS atm ro i.y nit fart J1 11AI DTt Mellon 314 VCR NIC al ^h C :.y fOR !Er k, 167 The tract numbers given in this plat do not correspond with the tract numbers used in this Opinion. This plat has been included for acreage determination purposes only. For more information concerning the method used for determining the tract acreage used for the drafting of this Opinion please see Prior Comment and Requirement No. 2. EXHIBIT G SECTION 34: E/2168 N/2NE/4, SW/4NE/4, NW/4SE/4 .7CALE J eJIer AIL U DEAR DISTANCES ARE MEASURED IN PUT AND DECIMAL FUT UNITS 1111 MAP AL1&S TAYLOR a Dun; LI t Poo 1 IS e air s PANT Of SECTION93. TOWNIES 5 NOOK *MM 42 WEST Of ma tnt PUNCIIrAL , ca in' 4x wnn STATE OF COLORADO >m�ooe rmoc�. DI Di a SS wei sioslpil Imo filie• ail MS et omit lor 0040 parressiri Ss 168 The tract numbers given in this plat do not correspond with the tract numbers used in this Opinion. This plat has been included for acreage determination purposes only. For more information concerning the method used for determining the tract acreage used for the drafting of this Opinion please see Prior Comment and Requirement No. 2. SE14NE14'69 AREA ALLOCATION SR1U4NFIM c7PSECTION 34, TOWNSHIP $ NORTH. CANOE a WET OF TI$ 6T}1 TIMBAL laktiAN, COUNTY OP WELD, STATE UP COLORADO ttt�tstttwwNw AU. UNEAR DISTMICES ARE ItaEASURED NI FEET AND DECIMAL FEET OMITS AREA ALLOCATION TASTE TRACT SQUARE FEET - ALITEA*ID 01WNBR 2 52,76, ILTI WELD COUSIN S d23ARI 14.31 TORA?IC I,U.C • 37 9'0.301 1.62 mum L I SLIM • 1.22 IP )*ORGAN CflAAE DAMN A. C3 OM)I.05 REALM RRX) U 13.,71 MA DART R. DUX* L4 69.216 1.AS BABA I& WAONEL LS 41,401 1.11 JUAN ORTA 5.4 32,112 0.74 Titre LA MOODY L7 614Z 141 DEWS MARY COTTER U 41,41) 1.14 W.1Y R. ORNDIIN IS 61377 144 RAC Ms ulva twain LP Ito WAO :pis Wilma, iik stone Stitinial L I I 1r1,9S2 1.17 _ SOY * MEDAN 10111111 Ll3 5914 LIT T5CIlWY*TRACY TELLYY LIT Mal Lk PILL. MA* JASON DIOSIPtfl4 (Wan V. HOMO 4.!'/ WI I'CswocDPAILSHOA TOTAL 1,712.11171 TRW ALLAN TAYLOR & DUKE, LW ate as a.,wwill bea Cana* la SI*44 . QS II IS IMPS IMIZI >AMYL1ti1! IIi.Ct 1a TS en gN...r.w w.. lallet "I I I,s pia end r..M .1 a.ut1. N. nab ara IMMIS wet 3*..tt. a s I*I Ike -wet O.S. 'S. E 1/4 COR SEC 34 COUNTY ROAD PARCEL#2 12 169 The tract numbers given in this plat do not correspond with the tract numbers used in this Opinion. This plat has been included for acreage determination purposes only. For more information concerning the method used for determining the tract acreage used for the drafting of this Opinion please see Prior Comment and Requirement No. 2. SW/4SE/417° ALLOCAnor A *WWII O. SECTION i4, TOWNSHIP 5 NORTM. RANGE [3 rat OP nit MI PRINCIPAL Amni , courtly' (W WILD, STATIC OF C LORADO a SCALE "XV AU. LINEAR DISTANCES ARE MEASURED IN FEET AND DECIMAL FEET UNITS AMA ALLOCATIM YAZ*P a sass in 401tAauC !MAL 1.74214 ]1.d0 ALLIS TAYLOR it DUAZ LW *»a. a.. rn. ..e Wa aressimt 1a! IMR sera 1) ml, n dowse .aawrl a h s .Is aml Opts .l e...N. Ma Wad rssssws.s sta .an Sas aash TS 15 c- ROAD ABANDONMENT 11 COUNTY ROAD PARCELS/7\ 502- . __ ,....„..„____....„ icrCR50 S 1/4 COR SEC 34 1?0 The tract numbers given in this plat do not correspond with the tract numbers used in this Opinion. This plat has been included for acreage determination purposes only. For more information concerning the method used for determining the tract acreage used for the drafting of this Opinion please see Prior Comment and Requirement No. 2. COGIS - WELL Information Page 1of1 COCIS - WELL Information Scout Card Related Ck Insp. a MIT # OIS a Doc E COA Wellbore Surface Location Data for API # 05-123-41886 Status: PR Well Name/No: Operator: Status Date: County: Field: Planned Location Franc Focus North Platte #K21-O24-34HNC (clic,k well name for production) BONANZA CREEK ENERGY OPEFZATING COMPANY LLC - 8960 11/1/2015 Federal or State Lease #: WELD #123 Location: WATTENBERG - #90750 Elevation: 1153 FSL 2473 FwL Lat/Long: 40.36638/-104.4224 Job Date: 10/18/2015 Job End Date: 10/20/2015 Chemical Disclosure Registry VVellbore Data Tor JIaetrac IFUU Spud Date: 8/23/2015 Wetlhnre Permit 7-Y • •M M• v • W••.•• - Permit #: Prop Depth/Form: Mineral Owner: Unit: Formation and Spacing: Casing: Cement: Casing: Cement: Casing: Cement: Wellbore Completed Completion Date: N/A Measured TD: True Vertical TD: Top PZ Location: Sec: 34 Twp: 5N 63W Bottom Hole Location: Sec: 34 Twp: 5N 63W Formation Log Top Completed information for formation N-COM 1st Production Date: N/A Status Date: 11/1/2015 Commingled: Formation Name: NOT COMPLETED Tubing Size: Tubing Packer Depth: Open Hole Top: No Initial Test Data was found for formation N-COM . No Perforation Data was found for formation N-COM t Orders 11/1/2015 SESW 27 5N63W 6 PM 4,542 ft. Lat/Long Source: Field Measured Reported: 10/30/2015 Days to report: 10 Spud Date is: HORIZONTAL Expiration Date: 7/12/2017 9:24:19 AM 11137 Surface Mineral Owner Same: FEE Surface Owner FEE Unit Number: Code: NBRR , Formation: NIOBRARA , Order: , Unit Acreage: 320, Drill Unit: GWA String Type: SURF , Hole Size: 13.5, Size: 9.625, Top: 0, Depth: 1640, Weight: 36 Sacks: 800, Top: 0, Bottom: 1640, Method Grade: String Type: 1ST , Hole Size: 8.75, Size: 7, Top: 0, Depth: 6860, Weight: 26 Sacks: 500, Top: 2500, Bottom: 6860, Method Grade: String Type: 1ST LINER , Hole Size: 6.125, Size: 4.5, Top: 6760, Depth: 11137, Weight: 11.6 Sacks: , Top: , Bottom: , Method Grade: Status: PR 11/1/2015 ACTUAL Measured PB depth: True Vertical PB depth: Footage: 531 FFNLL 2409 FFWLL Depth Footages: 470 FFSLL 2446 FFWLL Depth Log Bottom Choke Size: Open Hole Completion: Production Method: Status: Tutng Set :ing Depth: Tubing MUitiple Packer: Open Hole Bottom: Status: PR PR Cored 11/1/2015 DSTs http://cogec.state.co.us/cogis/FacilityDetail.asp?facid=123418$6&type=WELL 7/20/2016 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): NORTH PLATTE K21 -024-34H0 File Location(s): LE0170-1 NORTH PLATTE K21-O24-34HNC LE0170-2 NORTH PLATTE K31-034-34HNB LE0310-3 BY: Bruc'Barker - County Attorney DATE: i d (7 6_, NOTES: Three leases = 120.04 mineral acres/ 1317.85 acres spacing unit * 20% = 0.07553248 MATCH Hello