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HomeMy WebLinkAbout20162419.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: CO045188 Property Name: NORTH PLATTE 21-24-34HNB Operator: BONANZA CREEK ENERGY INC County and State: Weld County, Colorado Property Township 5 North, Ranee 63 West Description: Section 34: E2W2 API- 05-123-0-1 i'03 Production: X Oil X Gas X Date: July 7, 2016 Effective Date: September 1, 2015 Other: all products YOUR COPY Owner Name OWNER NUMBER: 1041 and Address: WELD COUNTY BOARD OF COMMISSIONERS Type of Interest: RI P O BOX 758 Decimal Interest: 0.04995882 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. Special Clauses: Owner(s) Signature(s): Owner Daytime Telephone Email Address SIGNATURE: TY\;.-kca1.2.t------- BOARD OF tiD C UNT ATTEST: CLER BY: DEPUTY CLERK Tiff THr BOAR JUL 272°16 AIR 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 Se Failure to comply will result in 31 % tax withholding an WI Identification Nu_L-_. not be refundable by P EKP Retain this copy for your jjecords 2016-2419 (I) ) Usilout A 7 Io in -7- CO045188 NORTH PLATTE 21-24-34HNB E2W2-34-5N-63W WELD COUNTY, CO SPACING UNIT = 157.85 ACRES WELD COUNTY LEASE - RECEPTION #3870919 LEASE CONTRIBUTES 39.43 ACRES 20% ROYALTY RATE 20% * 39.43/157.85 = 0.04995882 BEATTY & WOZNIAK, P.C. ATTORNEYS AT LAW 216 SIXTEENTH STREET, SUITE 1 100 DENVER, COLORADO 80202-5115 TELEPHONE 303-407-4499 FAX 1 -800-886-6566 www.bwenergylaw.com RYAN MCKEE 303-407-4449 RMcKEE@BwENERGyLAw.com October 20, 2015 Bonanza Creek Energy, Inc. Attention: Alexander Newell 410 17`h Street, Suite 1500 Denver, CO 80202 COLORADO NEW MEXICO NORTH DAKOTA UTAH WYOMING Re: Updated Drilling and Division Order Title Opinion Section 33: E/2E/2, Section 34: All, Township 5 North, Range 63 West, 6th P.M. Weld County, Colorado Our File No.: 3017.0042 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 14-11-34HNB North Platte J14-F11-341-INC 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 K31-O34-34HNB North Platte 31-34-341-INC North Platte P31-T34-34HNB 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 4 of 286 Tract 3: Section 34: NE/4NW/4 Containing 39.43 acres of land, more or less Tract 4: Section 34: NW/4NW/4, S/2NW/4, and a 32.00 acre tract Containing 152.65 acres of land, more or less Tract 5: Section 34: 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 Tract 6: Section 34: Lots 13-15 of Block 2 in the Town of Hardin Containing 0.96 acres of land, more or less Tract 7: Section 34: 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 Tract 8: Section 34: Blocks 4, 5, C, & D in the Town of Hardin Containing 46.10 acres of land, more or less Tract 9: Section 34: 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 Tract 10: Section 34: Lots 11-12 and 19-20 of Block 2 in the Town of Hardin Containing 0.97 acres of land, more or less Tract 11: Section 34: Lots 1-8, 23-30 of Block 2 in the Town of Hardin Containing 4.20 acres of land, more or less Tract 12: Section 34: Lots 9 and 22 of Block 2 in the Town of Hardin Containing 0.48 acres of land, more or less Tract 13: Section 34: Lot 10 of Block 2 in the Town of Hardin Containing 0.25 acres of land, more or less Tract 14: Section 34: Lot 21 of Block 2 in the Town of Hardin Containing 0.23 acres of land, more or less Tract 15: Section 34: 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, 6th P.M. — 3017.0042 October 20, 2015 Page 8 of 286 Owner Interest Alex Speros TOTAL Tract 3: NE/4NW/4 of Section 34, T5N, 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, T5N, 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% Tract 5: Railroad Lands of Section 34, T5N, 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 121 of 286 IV. OWNERSHIP OF OIL AND GAS, AND THE PROCEEDS FROM THE SALE OF OIL AND GAS, AS TO THE NORTH PLATTE 21-24-34HNB WELL, LOCATED WITHIN A UNIT COMPRISED OF THE E/2W/2 OF SECTION 34, TOWNSHIP 5 NORTH, RANGE 63 WEST, 6TH P.M. FROM THE SURFACE TO THE BASE OF THE CODELL FORMATION78: 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 3: Tract 4: Tract 5: Tract 7: Tract 8: Tract 10: Owner 0.24979411 0.32701932 0.03294267 0.27564143 0.11314539 0.00145708 Bonanza Creek Energy Operating Company, LLC Tract 3 (1.00 WI x 0.80 NRI OGL x 0.24979411 PF) Tract 4 (0.97070312 WI x 0.8750 NRI OGL x 0.32701932 PF) - (0.97070312 WI x 0.0650 ORI x 0.32701932 PF) - (0.97070312 WI x 0.01 ORI x 0.32701932 PF) - (0.3515625 WI x 0.0085 ORl x 0.32701932 PF) - (1.00 WI x 0.00234375 ORI x 0.32701932 PF) Tract 7 (0.54958678 WI x 0.8125 NRI OGL x 0.27564143 PF) (0.03512397 WI x 0.8750 NRI OGL x 0.27564143 PF) - (0.03512397 WI x 0.01 ORI x 0.27564143 PF) Tract 8 (0.59917355 WI x 0.8125 NRI 0GL x 0.1 1314539 PF) (0.07024794 WI x 0.8750 NRI OGL x 0.11314539 PF) - (0.07024794 WI x 0.01 ORI x 0.1 1314539 PF) (39.43 acres/157.85 acres) (51.62 acres/157.85 acres) (5.20 acres/157.85 acres) (43.51 acres/157.85 acres) (17.86 acres/157.85 acres) (0.23 acres/157.85 acres) Working Net Revenue Interest Interest 0.80560233 0.64664337 Lease Type No. WI 2-6, 8- 13, 16, 35, 43- 50, 52, 53-55, 57-60 7R Per request of Bonanza Creek, this Opinion has been limited from the surface to the base of the Codell formation for those leasehold chains in which the ownership has been depth severed. 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 130 of 286 Owner Working Net Revenue Lease Interest Interest Type No. RECCE Investments, LLC 0.00000080 ORT 21 Tract 7 (0.00003789 WI x 0.01583334 ORI x 0.27564143 PF) (0.00006253 WI x 0.01583334 ORI x 0.27564143 PF) Tract 8 (0.00007577 WI x 0.01583334 ORI x 0.1 1314539 PF) (0.00012505 WI x 0.01583334 ORI x 0.1 1314539 PF) KLB Energy, LLC Tract 7 (0.00002526 WI x 0.01583334 ORl x 0.27564143 PF) (0.00004168 WI x 0.01583334 ORI x 0,27564143 PF) Tract 8 (0.00005052 WI x 0.01583334 ORI x 0.1 1314539 PF) (0.00008337 WI x 0.01583334 ORI x 0.1 1314539 PF) 0.00000053 ORT 21 Madant Energy, LLC 0.00002955 ORI 21 Tract 7 (0.00140322 WI x 0.01583334 OR1 x 0.27564143 PF) (0.00231579 WT x 0.01583334 ORI x 0.27564143 PF) Tract 8 (0.00280644 WI x 0.01583334 ORI x 0.1 1314539 PF) (0.00463158 WI x 0.01583334 ORT x 0.1 1314539 PF) Westco Family Limited Partnership 0.00000467 ORI 21 Tract 7 (0.00140322 WI x 0.0025 ORI x 0.27564143 PF) (0.00231579 WI x 0.0025 ORT x 0.27564143 PF) Tract 8 (0.00280644 WI x 0.0025 ORI x 0.11314539 PF) (0.00463158 WI x 0.0025 ORl x 0.1 1314539 PF) Weld County, Colorado Tract 3 (1,00 MT x 0.20 LOR x 0.24979411 PF) 0.04995882 RI 35 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 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 EXHIBIT F SECTION 34: W/2't lREA QCN11ON THE WEST In OF SWIM i 341, TOWNSHIP 1 NORTH. RAP4M 63 WEST OFIRE SIR NI1NIPAL talIZRAN, COUNTY OP WU.D STATE OF COLORADO sous $ war ALL LINEAR DISTANCES ARE MEASURED M FEET AND DECIMAL. FEET UNITS Try fEE AGE I ,T} f f42 n.#3 D ciou 1f 2 ti ASS, 151.6$ 0101011 3 I,Ji1'S.331 43,11 4avesaturnotas i MINI Mt �1�2L �RQAif %AD 1.35 tern a. I ;tom . ,. ,. Xb1ENS Nam '12, 'Mg bG?10�D1.0iiii l i0 11 1 I SA nom RM an ao r t?, am *0. Haiti IJ MVO i3Q J 46.l0 Vii: It 2,07,13 - 10 Iltie T1 IVM •121002,Pi __,. 3094 A M'S 7A.YG91? DUNE lie 3010 gymnit as we • IkSa • w *fla • ISM atMal, r nil •A.ma Am am sec34 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 1 of 1 COGIS - WELL Information Scout Card Do''(9 Related Q Insp. MIT GIS a Doc a COA 1L Wellbore ., Orders Surface Location Data for API # 05-123-41883 Well Name/No: Operator: Status Date: County: Field: Planned Location Status: PR 11/1/2015 North Platte #21-24-34HNB (click well name for production) BONANZA CREEK ENERGY OPERATING COMPANY LLC - 8960 11/1/2015 Federal or State Lease #: WELD #123 Location: WATTENBERG - #90750 Elevation: 1119 FSL 2453 FWL Lat/Long: 40.36629/-104.42248 Job Date: 10/22/2015 Frac FOCUS Job End Date: 10/23/2015 Chemical Disclosure Registry Wellbore Data for Sidetrack #00 Spud Date: Wellbore Permit Permit #: Prop Depth/Form: Mineral Owner: Unit: Formation and Spacing: Casing: Cement: Casing: Cement: Casing: Cement: Wellbore Completed Completion Date: Measured TD: True Vertical TD: Top PZ Location: Bottom Hole Location: Formation SESW 27 5N63W 6 PM 4,541 ft. Lat/Long Source: Field Measured Reported: 10/30/2015 Days to report: 7 Status: PR 11/1/2015 8/19/2015 Spud Date is: ACTUAL HORIZONTAL Expiration Date: 7/12/2017 9:24:19 AM 11083 Surface Mineral Owner Same: FEE Surface Owner: FEE Unit Number: Code: NBRR , Formation: NIOBRARA , Order: , Unit Acreage: 160, 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: 6802, Weight: 26 Sacks: 500, Top: 2500, Bottom: 6802, Method Grade: String Type: 1ST LINER , Hole Size: 6.125, Size: 4.5, Top: 6702, Depth: 11083, Weight: 11.6 Sacks: , Top: , Bottom: , Method Grade: N/A Sec: 34 Twp: 5N 63W Sec: 34 Twp: 5N 63W Log Top Measured PB depth: True Vertical PB depth: Footage: 531 FFNLL 2042 FFWLL Depth Footages: 470 FFSLL 2067 FFWLL Depth Log Bottom 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 . Choke Size: Open Hole Completion: Production Method: Status: Tubing Setting Depth: Tubing Multiple Packer: Open Hole Bottom: Cored DSTs Status: PR 11/1/2015 PR http://cogcc.state.co.us/cogis/FacilityDetail.asp?facid=12341883&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 21-24-34HNB File Location(s): LE0170-2 BY: Bru Barker - County Attorney DATE: 7(7,((((,. NOTES: 39.43 mineral acres/ 157.85 acres spacing unit * 20% = 0.04995882 MATCH Hello