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HomeMy WebLinkAbout20162422.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: CO045191 Property Name: NORTH PLATTE K31-O34-34HNB Operator: BONANZA CREEK ENERGY INC County and State: Weld County, Colorado Property Townshin 5 North. Range 63 West Description: Section 34: E2W2, W2E2 Date: July 7, 2016 Effective Date: September 1, 2015 YOUR COPY 05-123--41H1 Production: Oil 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 ATTES CLER BY: .� DEPUTY CLER 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 I EKP Opentr-t- Aplcia 1-2.3_1(e Retain this copy for your records 2016-2422 (1 LEDI-10-1 L6o(70-z 1ZO30-3 CO045191 NORTH PLATTE K31-O34-34HNB E2W2; W2E2-34-5N-63W 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 LCOIIO' 39.43 LE011U_ 0.61 L-Eo31tY3 120.04 BEATTY & WOZNIAK, P.C. ATTORNEYS AT LAW 216 SIXTEENTH STREET, SUITE 1 1OO DENVER, COLORADO 80202-5115 TELEPHONE 303-407-4499 Fax 1-800-886-6566 www.bwenergytaw.cnrn RYAN MCKEE 303-407-4449 RMCKEE(t►7RWENERGYLAW.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: E/2E/2, Section 34: All, Township 5 North, Range 63 West, 6t1, 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 ocn 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-A11-34HNC North Platte 14-1 1-34HNB North Platte J14-F11-34I-INC North Platte J-F-34HNB North Platte J-F-34HC North Platte E-A-34HNB North Platte E-A-34HC North Platte 14-1 1-34HC North Platte 21-24-34HNB North Platte K21-O24-34HC Mnrth Platte K 71-(04734T-1Nr l 1 V t i. t t 1 t to L L %, ■ t a.• t v t • ✓ •,. • North Platte K31-O34-34HNB Nnrth P1attr 1 _14A4!4NC 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, 6`h P.M. — 3017.0042 October 20, 2015 Page 3 of 286 1 i . 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.blm.gov/1r2000/sitemap.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 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, Tr acts t : Tract I: Section 34: N/2NE/4, SW/4NE/4 Containing 119.25 acres of land, more or less Tract 2: Section 34: SE/4NE/4, SE/4, less the Cottonwood P.U.I. 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 ' 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 & 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: Tract 4: Tract 5: Tract 6: Tract 7: Tract 8: Tract 9: Tract 10: Tract 11: Intact 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 152.65 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 gcres of lane, more I of 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, 6th P.M. - 3017.0042 October 20, 2015 Page 6 of 286 Tract 29: Section 34: Open Space Cottonwood Falls, P.U.D. Containing 7.10 acres of land, more or less Tract 30: Section 34: 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 Tract 31: Section 34: 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 Tract 32: Section 34: 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 Tract 33: Section 34: 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 Tract 34: Section 33: E/2NE/4 Lying North of the Railroad Right of Way Containing 70.7769 acres of land, more or less Tract 35: Section 33: SE/4NE/4 South of Weld County Road 380 Containing 3.3358 acres of land, more or less Tract 36: Section 33: Railroad ROW/Fee Lands in N/2 Containing 2.9430acres of land, more or less Tract 37: Section 33: Lots A and B of RE2599 in NE/4 Containing 2.1732 acres of land, more or less 3 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, 6th P.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 l: ?c/2NE/4,LSW/4NE/4 of Section 34, T5N, R63W, 6th P.M. Owner Weld County, Colorado Interest 100,000000% TOTAL 100.000000% 'Tract 2: SE/4N �/4 S 4 of section s4, t Sl, Ko J vv 'ow r.tv I "" m "'"`'pro -. 13 , , , , ,�,,,�, 1 �1:4 1� � 1 V�J 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. E12E/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, TSN, R63W, 6th P.M. Owner Weld County, Colorado TOTAL 0.100776% 100.000000% Interest 100.000000% 100.000000% Tract 4: NW14NW/4, S/2NW/4 and 32 Acre Tract of Section 34, T5NL 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% T :& oad 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 R.M. - 3017.0042 October 20, 2015 Page 21 of 286 Tract 32: That portion of a strip of land fifty feet (50') in medal- lying between Sections 34 and 35, the same being twenty-five feet (25') on each side of the Section linen 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 Weld County, Colorado" TOTAL Interest 100.000000% 100.000000% Tract 33: A strip of land fifty feet (50') in width off the entire South side of the S/2SE/4 of geciioii 34, 115N, R63W, 6th P.M.L except those portionsvacated by Resolution adopted by Weld County Board of County Commissioners on August 12, 1996, recorded at Reception No. 2507157 Owner Weld County, Colorado'' TOTAL Interest 100.000000% 100.000000% Tract 34: E/2NE/4 Lying North of the Railroad Right of Way in Section 33, 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% 17 See Prior Comment and Requirement No. 26. IS 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, 6`h P.M. - 3017.0042 October 20, 2015 Page 153 of 286 VII. OWNERSHIP OF OIL AND GAS, AND THE PROCEEDS FROM THE SALE OF OIL AND GAS, AS TO THE !NUM I H FLA 1116 1<41-044-_54ftC ME NORTH PLATTE ifitl. ' 24-34HNC, AND THE NORTH PLATTE K31-034-34HNB WELLS, LOCATED Wi•••._..• .-�r. TiiT 7r, �7 �,.Tn r�1�x��-Z OF SECTION 34: i-HN A UNIT COMPRISED yr i raa vvr�c,r� M �.+ r.e�.rrr TOWNSHIP 5 NORTHI 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 0.162403 65 0.01635992 0.00072361 0.05619003 0.13688847 0.2497 7190 0.00191914 Bonanza Creek Energy Operating Company, LLC Tract 1 (1.00 WI x 0.80 NRI OGL x 0.25169105 PF) Tract 3 (1.00 WI x 0,80 NRI OGL x 0.12405223 PF) Tract 4 (0.97070312 WI x 0.8750 NRI OGL x 0.16240365 PF) — (0.97070312 WI x 0.0650 ORI x 0.16240365 PF) - (0.97070312 WI x 0.01 ORI x 0.16240365 PF) - (0.35 15625 WI x 0.0085 ORI 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 Interest Interest Lease Type No. 0.90345864 0.73473665 WI 2-6, 8- 13, 16, 18, 20, 22, 35, 38, 43- 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 KLB Energy, LLC Tract 8 (0.00005052 WT x 0.01583334 OR1 x 0.05619003 PF) (0.00008337 WI x 0.01583334 0RI x 0.05619003 PF) Tract 7 (0.00002526 WI x 0.01583334 ORE x 0.13688847 PF) (0.00004168 WI x 0.01583334 ORI x 0.13688847 PF) Madant Energy, LLC Tract 8 (0.00280644 WI x 0.01583334 0RT x 0.05619003 PF) 4- (0.00463158 WI x 0.01583334 OR1 x 0.05619003 PF) 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 0RT x 0.05619003 PF) (0.00463158 WI x 0.0025 0RI x 0.05619003 P9 Tract 7 (0.00140322 WT x 0.0025 OR! x 0.13688847 PF) (0.00231579 WI x 0.0025 0RI x 0.13688847 PF) Weld County, Colorado Tr? rl 1 ((.00 MI x 0.20 LOR x 0.25169105 PE) Tract 3 (1.00 MI x 0.20 L0R x 0.12405223 PF) Tract 33 (1.00 MI x 0.20 LOR x 0.00191914 PF) Dorothy Baldwin and Ernest Baldwin, as joint tenants Tract 4 (0.20 MI x 0.1250 LOR x 0.16240365 PF) Working Net Revenue Interest Interest Lease Type No. 0.00000026 ORI 21 0.00001468 ORI 21 0.00000232 OR.I 21 0.07553248 RI 22, 35, 38 0.00406009 RI 5 BEATTY & WOZNIAK, P.G. Bonanza Creek Energy, Inc. E/2E/2 of Section 33, All of Section 34, T5N, R63W, 6th P.M. — 3017.0042 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 F.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, 6`" 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 oerri, Jing. 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, All 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 $10.00 per net acre which payment shall be made to Lessor at P.O. Box 173779, Denver, Colorado 80217- 3779, ATTN: Manager, Land Administration, on or before the 90th day from and after the date on which such well is or was shut-in, and annually thereafter a similar payment may be made on or before the anniversary date on which such well was shut-in. If such payment, or payments, are timely made, it shall be considered that gas is being produced in paying quantities from the Leased Premises under all the terms and provisions of this Lease (but only for so long as the well continues to be capable of producing in paying quantities). Notwithstanding the foregoing, Lessee may not maintain this Lease by making Shut-in Well Payments as to any well more than three (3) cumulative years during any five (5) year period. Yes; Lessee may not commit the Leased Premises or any portion thereof to a federal unit without prior written consent of Lessor. Any such pooling shall be into a well unit or units not exceeding forty (40) acres plus an acreage tolerance of ten percent (10%), for oil, and not exceeding one hundred sixty (160) acres, plus acreage tolerance of ten percent (10%), for gas, except that larger units may be created to conform to any spacing or well unit pattern that may be prescribed by A-30 BEATTY & WOZNIAK, P.C. Bonanza Creek Energy, Inc. E/2E/2 of Section 33, All of Section 34, T5N, Ft63W, 6th P.M. - 3017.0042 OIL AND GAS LEASE NO. 3$ Dated: Recorded: Lessor: Lessee: Lands Covered: Primary Term: Royalty: Delay Rental: Shut-in Clause: Pooling/Unitization Clause: Entireties Clause: Pugh Clause: Special Provisions 61 : 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 r ga s 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. 16% There are numerous non-standard provisions incorporated in this lease agreement. See lease agreement for full descriptions of all such provisions. A-42 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 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, 6'h 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 October 23, 2012 Reception No. 3883079 Weld County, Colorado Bonanza Creek Energy Operating Company, LLC Township 5 North, Range 63 West, 6`h 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. Et2E/2 of Section 33, All of Section 34, T5N, R63W, 6Ih 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 3. 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 /6th 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 rna wtsT in OF awcnaN 34. TOWNSHIP 5 NORTH. RIMERS WEST of THE SOH PRINCIPAL swmIAN. COUNTY w WELD. STATE OF (W*AUO SCALA" AU. UNEAR DISTANCES ARE MEASURED in rat AND DECIMAL FEET mass SatiZ"jai2 1 1, i 46449450 112,40 110MT 3 1,605}$1 4141 !M►TICA*RLMUIR5 4 y 1004.703 lases 1t$4 6.96». _ ` 1iAif 16cl�ia 6 $6,1191 141 LUIZ * 7 41.0441 094 1COWIAN Awe "7 LUTZ -� [7.41111 %WI SOW= VIM* 163-7 1(2 Iir®96 Or Can 11 421 _ aoaY 13 21,2444 0* i *WOOS 13 142310 4.1 $SWTZ 14 2.047$13 4146 T*TIAlICUI TOTAL UP74Sid,4T6 315S$ ALLEY TAYLUli .4 DUKE, Lit MI6 ..w w. W. M ins c.s.M. M... (in) SAD .Mm 54>le2Yat saws I) Mk errs *s uthn Not noseS4 front or./..nr s.... tl ..0n S. MOS mo..nan.lk n. town. 1 4>:1RTIC 1M� C104024 fark 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 AREA ALLOCATION AST OF SEMEN 14, TOWNSHIPS NORTH, RANOE 63 WEST OF THE 471 FRIINCAL AIERMIAN. COUNTY OF VELA nn OF COLORADO d SOY ARV SOW! I'se AU.. LNtEAR =TAMES ARE MEASURED Pd FEEL AND 0EOMAt. FUT UNITS AA&IALLOCATXR' TAUS N ORIPI 'TRACT 4 num. _ Dinawr A[W walLn WILDCOUNIT NM= 3$30 ALLIES TAYLOR A' DUKE. Lit attn. as. vs* S erns S Ins* Nitett 1101it._ ) . r- s4 tNw ost — Asa .r re& Ito nod pass en N IM I?Ult St3C K I Tis ace ox, to xi" lam At:f YE Oa. e..,r,..T. -..... ..-.+•,..., 1...,.-.-....•.•••- t 4TININ11 �MAI . HMS 1.11411414.Ft 2RAI ACA MINN T4 COIRQTv ROAD PARCR/1 72 168 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. SE/4NE/4169 AREA ALLOCATION 0' - Sr S U4NEu4 WSECTION M TOWNSHIP 5 NORTH, ROM 63 MST OPUS Ent PRINCIPAL tit, Comm OP WELD, STATE OP= RAC° FIRT SOUS PasAn ALL LINEAR DISTANCES ARE MEASURED IN FEET ARO DECIMAL FEET UNITS .AREA ALLOCATKIN rats TRMT SWAIM TErt ACTSM#8 OW71F� 2 E47O7 4.13 WILD COUNTY $ 423.44$ 'UI 74 Rat= 79 90.700 142 HILTON LI 13, in t,21 ItWOMAN MAW Ed" NA. u am 1,05 VALID TWO LT 33,1n et UTAWY K. t*K MN IA MALI 145 SARA It WAGNER LS MAO 1.11 JUAN OtTA 1.t _ 32,311 0.7a 7111EY a MOODY Li 61.470 IAA JERRY & MARY CUTTER LT 04410 1.24 WRY L MOM 10 ant III stoma tnu s snv7L11NQ Le L14 *011 I_IS WVWAMPt1CONNTsITAa.T1AN LII AM 1.1T tx7OY&JORDAN MYERS L12 5914 127 1WIBY &TRACY KELLEY $t14ThMALiONTIIOMt9OW.4 UWTONWOOO PALLS 100A L13 3 126 OPEN SP. 303,Tt2 k97 TOTAL 1,71 UST 39.32 ALLES mYEAR DUKE. LW �M aJw.. M• ewe.. 0Wn••► as tin sins art ?Mee" stenzaiiia- I) Tit a rb••hw .«o• IIIMPwrrld — OS — dela S reset. N. IWI mrww«a•rM• were taw►. 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° $WASEAm SECTION 14 TOWNSTEP 5 N0RTE, RANGE AI WST Of THE 6111 PRINCIPAL I IEDI N, COUNTY or WWII, SATE CV COLORADO • il" r ALL LINEAR DISTANCES ADE MEASUEED IN iftt MD DEC1NAt (EET LIMITS Ain ALLOCATION TASta SLt` ,With ra __ d+f1 s 'a !ill/ 701A3O [LC I TOTAL 1.f *.21a MO ALLIS TAYLOR It DUAL LW isor s...ti at* a a-+w *Oaa t f w aw li TAh wit olio's.** us +M J*I&1 a r. got.l+ «N *..S 41 TS 15 ROAD ABANDONMENT T3 COUNTY ROAD PARCEL#3 5001 s 1/4 COR SEC 34. "° 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 C Related C4r Insp. Clfr MIT O GIS a Doc ( COA 'If Wellbore Surface Location Data for API # 05--123-41887 Status: PR Well Name/No: Operator: Status Date: County: Field: Planned Location North Platte #K31-O34-34HNB (click well name for production) BONANZA CREEK ENERGY OPERATING COMPANY LLC - 8960 11/1/2015 WELD #123 WATTENBERG - #90750 1170 FSL 2482 FwL Job Date: 10/25/2015 Frac Focus Job End Date: 10/26/2015 Chemical Disclosure Registry Wellbore Data for Sidetrack #00 Spud Date: 8/25/2015 Spud Date is: ACTUAL Wellbore Permit HORIZONTAL Permit #: Expiration Date: 711 2/201 7 9:24:19 AM Prop Depth/Form: 11087 Surface Mineral Owner Same: Mineral Owner: FEE Surface Owner FEE Unit: Unit Number Formation and Spacing: Code: NBRR , Formation: NIOBRARA , Order: , Unit Acreage: 320, Drill Unit: GWA Casing: String Type: SURF , Hole Size: 13.5, Size: 9.625, Top: 0, Depth: 1640, Weight: 36 Cement: Sacks: 800, Top: 0, Bottom: 1640, Method Grade: Casing: String Type: 1ST , Hole Size: 8.75, Size: 7, Top: 0, Depth: 6810, Weight: 26 Cement: Sacks: 500, Top: 2500, Bottom: 6810, Method Grade: Casing: String Type: 1ST LINER , Hole Size: 6.125, Size: 4.5, Top: 6710, Depth: 11087, Weight: 11.6 Cement: Sacks: , Top: , Bottom: , Method Grade: Wellbore Completed Completion Date: NIA Measured TD: Measured PB depth: True Vertical TD: True Vertical PB depth: Top PZ Location: Sec: 34 Twp: 5N 63W Footage: 531 FFNLL 2443 FFELL Depth Bottom Hole Location: Sec: 34 Twp: 5N 63W Footages: 470 FFSLL 2397 FFELL Depth Formation Log Top Log Bottom Cored Status: PR 11/1/2015 Federal or State Lease #: Location: Elevation: Lat/Long: 40.36643/-104.42237 Orders 11/1/2015 SESW 27 5N63W 6 PM 4,541 ft. Lat/Long Source: Field Measured Reported: 11/3/2015 Days to report: 8 Status: PR 11/1/2015 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: PR DSTs http://cogcc,state.co.us/cogls/FaeilityDetail.asp?facid=12341887&types-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-O24-34HC File Location(s): LE0170-1 NORTH PLATTE K21-O24.34HNC LE0170-2 NORTH PLATTE K31-034-34HNB LEO31O--3 BY::71,<""� Bruce" Barker - County Attorney DATE: NOTES: Three leases = 120.04 mineral acres/ 1317.85 acres spacing unit * 20% = 0.07553248 MATCH Hello