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HomeMy WebLinkAbout20151682.tiff RETAIN EXTR TION pia Ga. NADOA Model Form Dhklon Order;Adapted 9/9Gl- DIVISION ORDER To: Extraction Oil and Gas,LLC Date:02/17/2015 1888 Sherman Street,Suite 200 Denver,Colorado 80203 Well/Property Name: Diamond Valley East#1 Well API Number: 05-123-38565 Well/Property Number: 14*110 —� �� County and State: Weld County,Colorado I 015_I Well Spacing Location: 6N-67W,Section 22:S/2S/2,Section 27:N/2N/2 Spacing Unit Gross Acres: 317.93 Production Type: X Oil X Gas Other: Owner Number Owner Name Tax Identification Interest Type Interest Decimal 4317 WELD COUNTY COLORADO XXX-XX-0813 RI 0.00035385 PO BOX 758 GREELEY,CO 80632 The undersigned certifies the ownership of their decimal interest in production or proceeds as described above payable by Extraction Oil and Gas,LLC(-Payor). Payor shall be notified,in writing,of any change in ownership,decimal interest,or payment address. All such changes shall be effective within 60 days of notification from Payee. 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 annually,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. A facsimile or scanned copy of a signed copy of this Division Order shall be deemed an original. Federal Law requires you to famish your Social Security or Taxpayer Identification Number. Signatures of itnesses: >,vner(s)Signat : Owner(s)Tax I.D.(SSN or EIN): Attest• • l l Ul- 84-6000-813 Clerk to the Board Barbara K3rkmever Chair • rd of Weld County Commissioners B J � �/J� � !� lie LLS�� Jul e 8 2015 Phone Number(optional): Deputy Cl:' k to a - , .R" 97033607204 •No`�'ss AM Email Address(optional): bkirkmeyer@weldgov.com 2015-1682 6 EXTR4CTION orr Gas RECEIVED February 13, 2015 FEB 2 4 2015 WELD COUNTY COMMISSIONERS RE: Diamond Valley East #1 Township 6 North, Range 67 West Section 22: S/25/2, Section 27: N/2N/2 317.93 gross unit acres Dear Interest Owner, Upon final title examination and survey, it has been determined that the gross unit acres for the captioned well, is 317.93 acres. Your original interest was calculated based on a total of 320 gross unit acres, and therefore this will result in a change to your decimal interest. We will be correcting this change during February's revenue cycle, and you will see the details on your next check stub. This change will be effective from the date of first production, and your account will be adjusted accordingly. We have not suspended any accounts, however we would like you to please sign and return this revised division order. We apologize for any inconveniences this may cause. If you have any questions please contact Tara Peters at tpeters@extractionog.com. Sincerely, Extraction Oil &Gas Tara Peters Lead Division Order Analyst 1888 Sherman St.Suite 200, Denver CO 80203 www.ExtractionOG.com P(720)557-8300 F(720)557-8301 EXTR C:TION O.1&Ga, INSTRUCTIONS TO ALL INTEREST OWNERS EXTRACTION OIL AND GAS LLC. (`EXTRACTION'}HAS ENCLOSED A DIVISION ORDER FOR YOUR EXECUTION. PLEASE REVIEW,AND EXECUTE ONE COPY TO BE RETURNED TO OUR OFFICES,AND ONE COPY FOR YOUR RECORDS. THE ATTACHED DOCUMENT SHOULD NOT BE ALTERED IN ANY WAY EXCEPT TO CORRECT SPELLING ERRORS,UNLESS ACCOMPANIED BY DOCUMENTARY EVIDENCE TO SUPPORT THE CHANGE. If your name and interest are correctly shown: 1. Sign your name as shown on the Division Order. 2. Have your signature witnessed by two competent witnesses. 3. If your name has changed due to marriage or divorce,execute the Division Order using your present name and furnish a copy of the marriage certificate or divorce decree. 4. If signing for a corporation,signature must be attested,corporate seal fixed and title of signatory party reflected. 5. If signed by agent,attorney-in-fact,guardian or any party other than the named interest owner,a certified copy of the power of attorney or other evidence of such party's right to sign must be furnished. 6. Division Orders for partnerships must be executed by all partners or by an authorized partner. A certified copy of the instrument giving said partners authority to sign must be furnished. 7. Federal law requires that you furnish a correct social security or taxpayer identification number. Failure to comply will result in 28%tax withholding required by the Internal Revenue Service and will not be refunded by Extraction. You may also be subject to a further penalty levied by the Internal Revenue Service.The enclosed W-9 form must be completed and returned with your division order.If your tax identification number is pre-printed on the division order,a W-9 form is not required. 8. If the Division Order or Exhibit contains an incorrect mailing address,your correct mailing address should be noted on the exhibit to insure prompt receipt of production proceeds. Please print or type the correct mailing address using no abbreviations. 9. The top copy or the"Original"of the Division Order should be returned to: EXTRACTION OIL AND GAS LLC. 1888 Sherman St.,Suite 200 Denver,Colorado 80203 Attn: Tara Peters 10. Should you have any further questions regarding the enclosed Oil Division Order, please contact Tara Peters at tpeters@extractionog.com 11. Please DO NOT DETACH the exhibit from the Division Order if one is included. 12. Please visit our website at ExtractionOG.com to learn more about Extraction Oil and Gas. EXTRACTION OIL AND GAS,LLC,1888 SHERMAN ST,SUITE 200,DENVER,CO 80203-PHONE 720-557-8300 Karla Ford From: Tara Peters [TPeters@extractionog.com] Sent: Wednesday, April 15, 2015 3:52 PM To: Karla Ford Subject: RE: Division Order- Diamond Valley East#1 Karla. The interest for this well is coming from lease at Doc#3423946, which contains a 1/8 royalty. The tract covered in this spacing contains 0.9 acres and the total unit size is 317.93 acres. .9/317.93*.125 =0.00035385 Here is the title opinion page: Tract 40: Section 27: That portion of the following described parcel of land that is located in the NW/4NW./4: A tract of land more particularly described in a Quit-Claim Deed dated May 26, 1936, recorded in Book 995, Page 167 at Reception No_ 741541 as follows: That part of the W/2 of Section 27, T6N, R67W, 6th P.M., as follows: Commencing at the NW corner of Sec. 27,Twp. 6 N., R. 67 W., thence 30 ft. E. on the N. line of said Section to a point. Beginning at said point thence S. 0°09' W. paralleF. to the W. line of Sec. 27, Twp. 6 N., R. 67 W. for a distance of 5277.5 ft., more or less, to a point on the S. Section line of said Section 30 ft. E. of the SW corner of said Section; thence E. on the S. Section line of said Section for a distance of 10 ft.; thence N. 0°09' E. parallel to the W. line of said Section for a distance of 5277.5 ft.,more or less, to a point on the N. Section line of said Section; thence W. on the N. Section line of said Section for a distance of 10 ft.,more or less to a point, said point being the beginning point; containing 1.21 acres,more or less. (Containing 0.900 acre,±.) 1 Tract 40 - Surface Ownership: Weld County, Colorado 100.000000% Total 100.000000% Tract 40 - Oil and Gas Ownership: Weld County, Colorado 100.000000% Total 100.000000% Tract 40 - Leasehold Ownership: Name WI NRI LEASE Grizzly Petroleum Company,LLC 100.000000% 80.000000% C Dynasty Royalty Company, LLC 7.500000% (ORI) C Weld County, Colorado ------ 12.500000% (LOR) C Total 100.000000% 100.000000% Also, the SPUD dates and completion dates can be found on the COGCC website. Regards, Tara Peters Lead Division Order Analyst Extraction Oil & Gas Direct: 720-557-8316 1888 Sherman Street, Suite 200 Denver, CO 80203 2 1111I1111111111111111111111111111111111111111 lilt IIII y` 3610177 03111/2009 01:05P Weld County, CO 1 of 2 R 11.00 D 0.00 Steve Moreno Clerk&Recorder DECLARATION OF POOLING KNOW ALL MN BY THESE PRESENTS: ' 1 Great Western Oil and Gas Company.LLC is the owner of the oil and gas leases (Teases')set forth on Exhibit A attached hereto covering the lands in Weld County, Colorado,more specifically described on Exhibit A. 2 Each of the Leases contains provisions authorizing the'essee to unitize or pool the Leases and the 'ands covered thereby,in whole or n part,with other leases and lands so as to create a unit or pool as maybe required to conform to applicable ales and orders of the Colorado Oil and Gas Conservation Commission. 3. Acting under and by virtue of the pooling authority contained in the Leases,the undersigned hereby pools,combines and designates the following lands(and the leasehold,mineral and royalty rights thereunder)as a unit for the drilling and production of oil,gas and associated liquid hydrocarbons from the Codell/Niobrara formations) Township 6 North,Range 67 West,6m P.M. Section 27: NW'/4 IN WITNESS WHEREOF,this instrument is executed as of this 24'"day of February,2009,but shall be effective for all purposes as of the date of first production from the Great Western#27- 11, 27-12,27-21,27-22 and 27-52 wells In the NWY,of said Section 27. Great Western Oil and Gas Company,LLC 6y Keith Kress, President STATE OF COLORADO ss. CITY&COUNTY OF DENVER ) The foregoing instrument was acknowledged before me this 24'"day of February, 09 Keith Kress as President of Great Western Oil and Gas Company,LLC. a limited!aby by ilit company,on behalf of said company. ,v1O3 dpi Witness my nand and official seal. • .`'p 7. 9P1)-- Q-:0'- Notary Public' ,... ='�'�►: My commission expires: 'V k:\s, Rg I IIIIII Ii1il!!1111 IIII 110!1 III!1111111 ill 11111 1111 III 3610177 03/11/2009 01:O5P Weld County,CO 2 of 2 R 11.00 D 0.00 Steve Moreno Clerk&Recorder EXHIBIT A DECLARATION OF POOLING LEASE SCHEDULE 1. Lease Date:June 26,2006 Recorded: July 11,2006 under Reception No.3402015 Lessor: Town of Windsor Lessee: Great Western Oil and Gas Company,LLC Description: Township 6 North,Range 67 West,6"'P. M. Section 27: North 65 feet thereof 2. Lease Date: September 18, 2006 Recorded: October 2,2006 under Reception No. 3423946 Lessor Weld County, Colorado,acting by and through The Board of County Commissioners of Weld County Lessee: Great Western Oil and Gas Company, LLC Description: Township 6 North.Range 67 West,6e'P. M. Section 27 ' 21 acre tract in the W% 3. Lease Date: June 19,2007 Recorded June 22.2007 under Reception No. 3485276 Lessor: Northern Colorado Royalties,LLC Lessee: Great Western Oil and Gas Company, LLC Description: Township 6 North,Range 67 West,6e P M. Section 27:WY:,except the North 65 feet thereof After recording,please return to: End of Exhibit. Great western Oil&Gas Attn:Kelly Fagan 1 7OO Broadway.Suite 1 17O Denver.CO 8O29O I 111111111 111 IIIII 111111 IIII IIIIIf III IIIII IIII III! 3751697 02/22/2011 03:06P Weld County, CO 1 of 2 R 16.00 D 0.00 Steve Moreno Clerk & Recorder OIL AND GAS LEASE 697 AGREEMENT,entered into the 26t day of January 201I by and between Betty Jane Becht holds,a widow,whose address is 4644 West 21" St Circle,Greeley,CO 80634 hereinafter called lessor and RAR Energy LLC whose address is PO Box 2984, Denver,CO 80201 hereinafter called Lessee: W ITNESSETH,That the Lessor,for and in consideration of Teo and more D'rdlars(S10.00+)cash in hand paid,the receipt of which is hereby acknowledged,and the covenants and agreements hereinafter costa toed,has granted,demised,leased,and let, and by these presents does grant,demise,lease,and let exclusively unto the said lessee,the land hereinafter described,with the exclusive right for the purpose of mining,exploring by geophysical and oche•methods, and operating for and producing therefrom oil and all gas of whatsoever nature or kind,specifically including•coalbed methane and any and all substances produced in association therewith from coal-bearing formations,with rights of way and easements for laying pipe lines,and erection of structures thereon to produce,save,and take care of said products,all that certain tract of land situated in the county of Weld,State of Colorado,described as follows,to-wit: Township 7 North,Range 67 Wcat,6's P.M. Sections 35;That part of the SE ax more specifically described In Warranty Deed dated 412/1965, recorded at reception no.1460486 on 416'1965,and that part of the NE as more fully described In Warranty Deed dated 12191t067,recorded In book 589 as Reception no.1511303 on 12/27/1967 Containing 150.63 acres,more or less including any interests therein which Lessor stray hereafter acquire by reversion,prescription or otherwise Notwithstanding any particular description,it is nevertheless the intention of Lessor to include within this lease,and Lessor dies hereby lease,not only the land an described but also any and all other land owned or claimed by Lessor in the herein named survey or surveys,or in adjoining surveys,and adjoining the herein described land up to the boundaries of the abutting landcwners,including all lands and rights acquired or retained by Lessor by avulsion,accretion,reliction or otherwise as the result of a change in the boundaries or centerline of any river or stream traversing or adjoining the lands described above,as well as et;riparian lands and rights which may be incident,appurtenant,related or attributed to Lessor in any lake,reservoir,stream or river traversing or adjoining the lands described above,and further,all lands included in any road,easement or right-of-way traversing or adjoining the lands described above,which are or may be incident,appurtenant,related or attributed to Lessor by virtue of Lessor's ownership of the lands described above. For the putpeee of determining the bonus or any other payments hereinafter provided for,said land is estimated to comprise 150.63 acres,whether it actually comprises more or less. 1. It is agreed that this lease shall remain in force for a tern of Three(3)years from September 25,2011 and as long thereafter as oil or gas of whatsoever nature ix kind,specifically including eoalbed methane and any and all substances produced in association therewith from coal-bearing formations,is produced from said leased premises or on acreage pooled therewith,or drilling operations are continued as henelnaller provided. lf,at the expiration of the primary tern of this lease,oi!or gas is not being produced ott the leased premises or on acreage pooled therewith but Lessee is then engaged in drilling or reworking operations thereof,then this lease shall continue in force so long as operations are being continuously prosecuted on the I ased premises or on acreage pooled therewith;and operatiots shall be considered to be continuously prosecuted if not more than one hundred eighty(180)days shall elapse between the completion or abandonment of one well and the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas el said land or on acreage pooled therewith,the production thereof should cease from uny cause atter the primary term,this lease shall not terminate if Lessee commences additional drilling or reworking operations within one hundred eighty(180)days from date of cessation of production or from date of completion of dry hole. If oil or gas shall be discovered and produced as a result of such operations at of after the expiration of the primary tern:of this lease,this lease shall continue in force so Icing as oil or gas is produced from the leased premises or on acreage pooled therewith.Lessor and Lessee acknowledge that the lands described in this Lease are presently subject to an Oil and Gas Lease dated 9/25/2006, at Reception No. 3422254 in the Records of Weld County,Colorado, from Betty Jane Beehtholdt,as Lessor,to Petro-Canada Resources Inc,as Lessee(the"Prior Lease"). The primary term of the Prior Lease expires on 9!25/2011. Lessor covenants and agrees riot to extend,renew,amend,or modify the Prior Lease. If the Prier Leese is extended beyond its primary term by drilling operations,reworking operations,or production from the lands covered by the Prior Lease,ur on land with which the Prior Lease has been pooled,this Lease shall not become effective and Lessee shall be relieved of all abltgetions provided for in this Lease. If the Prior Lease terminates at the end of Its primary term,this Lease shall immediately become effective upon the l'rlor Lease's termination. Lessor warrants there are no other leases or top lenses on any of the lease premises and agrees that no other top leases covering all or any part of the lease premises will he executed by Lessor. 2. This is a PAID•LlP LEASE. In consideration of the down cash payment,Lsssor agrees that Lessee shall not be obligated, except as otherwise provided herein,to commence or continue any operations during the primary term. Lessee may al arty time or times during or anon the primary tern:surrender this lease as to all or any portion of said land and as to any strata or stratum by delivering to Lcssnr or by tiling for record a release or releases,and be relieved of all obligation thereafter accruing as to the acreage surrendered. 3. In consideration of the premises lie said Lessee covenants and agrees: 1". To pay,as royalty,or deliver to the credit of Lessor,free of cost,except for severance and other applicable federal, state,or local taxes,in the pipeline to which Lessee may connect wells on said land,the equal 20%part of all oil produced aid saved front the leased premises. 't'o pay Lessor on gas and casinghcad gas produced from.said land(I)when sold by Lessee,20"/s of the net proceeds derived from such sale,or when used by Lessee off said land or in the manufacture of gasoline on other products,the market value,at the mouth of the well,of 20%of such gas and casittghead gas. Lessor's interest,in either case,to bear 20% of the cost of compressing,dehydrating.processing,and otherwise treating such gas or eaeinghead gas to tender it marketable or usable and 20%of the cost of gathering and transporting such gas and cos nghead gas from the mouth of the well to the point of sate or use. 3t°. To pay Lessor for gas produced from any oil well and used off the premises or in the manufacture of gasoline or any other product a royalty of 20%of the proceeds,at the mouth of the well,payable monthly at the prevailing market rate. 4. During any period(whether before or after expiration of the primary term hereof)when gas is not being so sold or used and the well or wells are shut in and there is no current production of oil or operations on said leased premises sufficient to keep this lease in force,Lessee shall pay or tender a royalty of One Dollar(51.00)per year per net acre covered hereby,such payment or tender to be mate on or before the anniversary date of this lease next ensuing alter dm expiration of ninety(90)days from the date such well is shut in and thereafter on the anniversary date of this lease during the perod such well is shut in,to the royalty owners. When such payment or tender he made,it will be considered that gas is being produced within the meaning of the entire lease. 5. If said Lessor owns a less interest in the above described land than the entire and undivided fee simple estate therein,then the royalties(including any shut-in gas royalty)herein provided for shell be paid rho to the lessor only in the proportion which 1 1111111 11 111111111 III 111111111111111111111C1111111111 3751697 02/22/2011 03:06P Weld Couny, 2 of 2 R 16.00 D 0Lessor's r00 Steve ►�orento and Clerk Recorder r Rl�coder e whole 6. Lessee shall have the right to use,free of cost,gas,oil,and water produced on said land for Lessee's operation thereon, except water from the wells of Lessor. 7. When requested by Lessor,Lessee shall bury Lessee's pipeline below plow depth. 8. No well shall be drilled nearer than 200 feet to the house or barn now on said premises without written consent of Lessor. 9. Lessee shall pay for damages caused by Lessee's operations to growing crops and livestock on said land. 10. Lessee shall have the right at any time to remove all machinery and fixtures placed on said premises,including the right to draw and remove casing, 11. The rights of Lessor and Lessee hereunder may be assigned in whole or part. No change in ownership of Lessor's interest(by assignment or otherwise)shall be binding on Lessee until Lessee has been furnished with notice,consisting of certified copies of all recorded instruments or documents and other information necessary to establish a complete chain of record title from lessor, and then only with respect to payments thereafter made. No other kind of notice, whether actual or constructive,shall be binding on Lessee. No present or future division of Lessor's ownership as to different portions or parcels of said land shall operate to enlarge the obligations or diminish the rights of Lessee, and all Lessee's operations may be conducted without regard to any such division, If all or any part of this lease is assigned,no leasehold owner shall be liable for any act or omission of any other leasehold owner. 12. Lessee,at its option,is hereby given the right and power at any time and from time to time as a recurring right,either before or after production,as to all or any part of the land described herein and as to any one or more of the formations hereunder,to pool or unitize the leasehold estate and the mineral estate covered by this tease with other land,lease,or(cases in the immediate vicinity for the production of oil and gas,or separately for the production of either,when in Lessee's judgment it is necessary or advisable to do so,and irrespective of whether authority similar to this exists with respect to such other land,lease, or leases. Likewise,units previously formed to include formations not producing oil or gas may be reformed to exclude such non-producing formations. The forming or reforming of any unit shall be accomplished by Lessee executing and filing of record a declaration of such unitization or reformation,which declaration shall describe the unit. Any unit may include land upon which a well has theretofore been completed or upon which operations for drilling have theretofore been commenced. Production, drilling,or reworking operations or a well shut in for want of a market anywhere on a unit which includes all or a part of this lease shall be treated as if it were production,drilling,or reworking operations or a well strut in for want of a market under this lease. In lieu of the royalties elsewhere herein specified,including shut-in gas royalties,Lessor shall receive on production from the unit so pooled royalties only on the portion of such production allocated to this lease•,such allocation shall be that propodioe of the unit production that the total number of surface acres covered by this lease and included in the unit bears to the total number of surface acres in such unit. In addition to the foregoing,Lessee shall have the right to unitize,pool,or combine all or any part of the described lands as to one or more of the formations thereunder wilts other lands in the same general area by entering into a cooperative or unit plan of development or operation approved by any governmental authority and,from time to time,with like approval,to modify,change,or termirete any such plan or agreement and,in such event,the terms,conditions, and provisions of this lease shall be deemed modified to conform to the terns,conditions,and provisions of such approved cooperative or unit plan of development or operation and,particularly,all drilling and development requirements of this lease, express or implied,shall be satisfied by compliance with the drilling and development requirements of such plan or agreement, and this lease shall not terminate or expire during the life of such plan or agreement. In the event that said above described lands or any part thereof,shall hereafter be operated under any such cooperative or unit plan of development or operation whereby the production tlaxefrom is allocated to different portions of'the land covered by said plan,then the production allocated to arty particular tract of land shall,for the purpose of computing the royalties to be paid hereunder to Lessor,be regarded as having been produced Fran the particular tract of land to which it is allocated and not to any other tract of land;and the royalty payments to be made hereunder to Lessor shall be based upon production only as so allocated. Lessor shall formally express Lessor's consent to arty cooperative or unit plan of development or operation adopted by Lessee and approved by any governmental agency by executing the same upon request of Lessee. 13. All express or Implied covenants of this lease shall be subject to all Federal and State Laws,Executive Orders,Rules,or Regulations,and this lease shall not be terminated,in whole or in part,nor Lessee held liable for damages,for failure to comply therewith,if compliance is prevented by,or if such failure is the result of,any such Law,Order,Rule,or Regulation. 14.Lessor hereby warrants and agrees to defend the title to the lands herein described,and agrees that the Lessee shall have the right at any time to redeem for Lessor,by payment,any mortgages,taxes,or other liens on the above described lands,in the event of default of payment by Lessor and be subrogated to the rights of the holder thereof,and the undersigned Lessors,for themselves and their heirs,successors,and assigns,hereby surrender and release all right ofdower and homestead in the premises described herein,insofar as said right of dower and homestead may in any way affect the purposes for which this lease Is made, as recited herein. 15. Should any one or more of the parties hereinabove named as Lessor fail to execute this lease,it shall nevertheless be binding upon all such parties who do execute it as Lessor. Tire word"Lessor,"as used in this tease,shall man any one or more or all of the parties who execute this lease as Lessor. All the provisions of this lease shall be binding on the heirs,successors,and assigns of Lessor and Lessee. 16. Extension of Primary Term. For the consideration herein recited,Lessor hereby grants to lessee the exclusive right and option to extend the primary terns of this lease for one(t)additional year by mailing to Lessor at the address listed en this lease, on or before the end of this primary term.a bonus consideration equal to one hundred percent(100.00%)of the bonus consideration originally paid for this lease,which payment shall reprcscnt payment in fall of consideration for this extension. zdi... fNESS Wtlus t�t is executed the date first above written. y ho)dt STATE OFD COUNTY OFd Bti nq ME/ae and easgaey yblie in sod Ear laid Canty and Slate.as Oa day of t 3ajL,penonaayappaxed l5Cfpr�t/t—14Fie_ (ar 4t-at known to h:the identical pa n(s)drsaited in and wins meshed the whits and forcaoin notnnneat ofwaa ins and acknowledged to me Oat they duly executed the same as hen and colonary aet asd dent forlhc uses and papaws seven at font. IN WITNESS animator.t have hereunto act try hand and rdnacd my,,omsrslrea7 the day < and yunr last'Nave wmlen. 61 a"/' —^` ../ 11 1 V FIM *I'''...E.-13 t t DORN c 2t 4TF d F C04�Q�o • 630 gecordad.r..Q«Jo�leek..� M J U L 31 1970 o BOOK +� l tU Rec.Noti..__.,-.,_ y,.5�2243 .� 1 No. 941. PRODUCERS SC—Bradford Publishing Co.,1524-45 Stoat Strati,Drava.Colando Ann Sporn'',Recorder .--1 OIL AND GAS LEASE ' AGREEMENT Made and entered into the nth*..day of January., ,19..7.01, by and between Carl A. Miller, 415-•Airy:Street, of Longmonnt....Colorado _...party of the first part,hereinafter called lessor(whether M one or more) and. T.M.S.-.-Co., 1J Sri..Wad8worth,...ffiffia,...11lheat...Ridge,...Co1o.,party of the second part,hereinafter called lessee. Zone 80033; N WITNESSETH,That the said lessor,for and in consideration of DOLLARS, t\t cash in hand paid,receipt of which is hereby acknowledged and of the covenants and agreements hereinafter con- t11 tained on the part of lessee to be paid,kept and performed,has granted,demised,leased and let and by these presents LIN does grant,demise,lease and let unto the said lessee,for the sole and only purpose of mining and operating for oil "'"t and gas,and laying pipe lines,and building tanks,power stations and structures thereon to produce,save and take or or care of said products,all that certain tract of land situate in the County of Weld, Nit State of CD1P'e.Q9a ,described as follows,to wit: •-i The...Borth- al! (14)..and Southwest Quarter, and Northeast Quarter of Nuth9aat o North(darters-.�ectinn..17.,...Ts>tlictell�p...� , Range 67 West r, o Lesaor...iitu�l Lessee iautua11y .agrees that unless Lessor or its aspigns eommenee o a well by July 15th, 1970 in any one or more of the following sectiOnAT- ,8, 17 or 18-T.2"N., 1:671C., or-{ ..6'th, P:Bf.s Weld-County, Colorado-, Lossee-•loa7 terminate tbie."Ieuse The here'irr'Oil li' ale-Lease is"exetuted.'to"'t;over. fgq.' R mineral interest-in •said lands herein Aescribed; Mof Section.....1.7 Township....2..1 Range 62 W and containing 520 acres,more or less. 1 It is agreed that this lease shall remain in force for a term of.......5 years from this date,and as long there- a� after as oil and gas,or either of them,is produced from said land by the lessee. In consideration of the premises the said lessee covenants and agrees: 1. To deliver to the credit of the lessor,free of cost,in the pipe line to which the lessee may connect his wells, the equal one eight part of all oil produced and saved from the leased premises as royalty or, at lessee's election,to pay the lessor for such royalty the market prise prevailing the day the oil is run into the , pipe line,or in storage tanks.To pay the lessor as royalty One..&ight of all other minerals and hydrocarbons which the lessee produces and saves from said lands. 2. To pay for the gas from each well found upon the said premises, which shall produce gas in marketable quantitie ,a royalty of l2} per cent of the net proceeds derived from the sale of such gas,or of the gasoline that such gas may be converted into and marketed off the premises. If no well be commenced on said land on or before the 15th.. day of J 4...t.f••••••••f 19 ?0! this lease shall terminate as to both parties,unless the lessee on or before that date shall pay or tender to the lessor, or to the lessor's credit in the Bank of or its successors,which shall continue as the depository regardless of changes in the ownership of said land,the sum of Two...Hundred..Sixty. COLLARS,which shall operate as a rental and cover the privilege of deferring the commencement of a well for 12 months from said data.In like manner and upon like payment or tenders the commencement of a well may be further deferred for a like period of the same number of months suc- cessively. And it is understood and agreed that the consideration first recited herein, the down payment, covers not only the privileges granted to the date when said first rental is payable as aforesaid,but also the lessee's option of extending that period aforesaid,and any and all other rights conferred. Should the first•.well drilled on the above described land be a dry hole,then and in that event,if a second well is not commenced on said land within twelve months from the expiration of the last rental period which rental has been paid,this lease shell terminate as to both parties, unless the lessee on or before the expiration of said twelve months shall resume the payment of rentals In the same amount and in the same manner as hereinbefore provided. And it is agreed that upon the resumption of the payment of rentals,as above provided that the last preceding para- graph hereof,governing the payment of rentals and the effect thereof,shall continue in force just as though there had been no interruption in the rental payments. If said lessor owns a less interest in the above described land than the entire and undivided fee simple estate therein, then the royalties and rentals herein provided Shall be paid the lessor only in the proportion which his interest bears to the whole and undivided fee. Lessee shall have the right to use,free of cost,gas,oil and water produced on said land for Its operation thereon, except water from wells of lessor. When requested by lessor,lessee shall bury its pipe lines below plow depth. No well shall be drilled nearer than 200 feet to the house or barn now on said premises,without the written consent of the lessor. Lessee shall pay for damages caused by its operations to growing crops on said land. Lessee shall have the right at any time to remove all machinery and fixtures placed on said premises,including the right to draw and remove easing. If the estate of either party hereto is assigned,and the privilege of assigning in whole or in part is expressly allowed—the covenants hereof shall extend to their heirs,executors,administrators,successors or assigns,but no change in the ownership of the land or assignment of rentals or royalties shall be binding on the lessee until after the lessee has been furnished with a written transfer or assignment or a true copy thereof;and It is hereby agreed that in the event this lease shall be assigned as to a part or as to parts of the above described lands and the assignee or assigns of such part or parts shall fail to make default in the payment of the proportionate part of the rents due from ham or them such default shall not operate to defeat or affect this lease in so far as it covers a part or parts of said lands upon which the said lessee or any assignee thereof shall make due payment of said rental, Lessor hereby.warrants and agrees to defend the title to the lands herein described,and agrees that the lessee 1 shall have the right at any time to redeem for lessor,by payment,any mortgages,taxes or other liens on the above described lands,in.tIte event of default of payment by lessor,and be subrogated to the rights of the holders thereof. War Clause footti�,�Oil and Gas Lease: This lease'ahall not be terminated,In whole or in part,nor shall lessee be held liable in damages,for failure to comply With-the,express or implied covenants hereof,if compliance therewith fa prevented by, or if such failure is iI the result,of,ahy Federal or State laws,executive orders, rules, or regulations.If,at the end of the primary term hereof such term has not been extended by production or drilling as in this lease provided,and lessee,by reason of any of.the above recited causes,is unable to drill a well on the leased premises for oil or gas,the primary term and the rental provision hereof shall be extended automatically from year to year until the first anniversary hereof occur- ring ninety.(90)or more clays following the removal of such delaying cause.During any period that lessee is unable to I)rdduce and/or market any products from the leased premises by reason of any of the above recited causes, this lease shall'remain in full force and effect. In Testimony Whereof We Sign,this the 11th day of March 19 70 • Witness: �1 l%`-90 �r/r—` 1 x Y 1 (SEAL) �( (SEAL) • fj . a 630 1552243 . , ACKNOWLEDGMENT TO THE LEASE STATE OF COLORADO .._...._ _.____.....__....» _-__.__.._..._.. _..Coast, of IIQVilap. ».._}a` I. Fg@wesSleeth _......_..,a Notary Public to sad for sold._—...B93d.J.0-V. .._.._......_County,in the State aforesaid.do hereby certify that-- CARL A. MILLER, __._...._..._.._._................_......._....._.............._.._........._._._._, who......._1$.........._...._.......... parfunally knows to me to be the person_—.— wbo*"Mue__` •.uli+cvtbed to the foregoing Lave,appeared before mhisday k person,and acmwledged that he ,.. a cd caljlepdr�ayeed�dclirc the said budrumest of writing as.___..............._..._._. free and voluntary act and deed for the men and anthems lti`QdHH� y, 4.X. t *pad lea ..._.._....._ _. .at art.._. ,..day of.. .yam ��k...._(./)))J/. —7 I9.79- A , /V n7u ly isl so �• 1.-- ,19............. 4 - t? /!�'c't.�""ICt ... Notary Public. � • n G.. ....••'q t ASEIONMENT C'3L KNOW..4LE.MEN HT THESE PRESENTS,That I, .............._.._.._....».... the wlthis named lessee, in consideration of the sum of one dollar ($1.00) end other good and valuable co dderattoos to me lu band paid,the receipt whereof Is hereby confessed sod acknowledged,do hereby sell,assign.transfer,tot over,and convey 0010 ----•-- ...__ ............_...._.......____.__..._._.._..__ his beia and assigns,the within ha".slant and conveyance,to have sud to hold the same for the trm and under tie.conditionstherein ccar•t..,+d IN WITNESS WHEREOF.I have hereunto set my band and seal this._............_....................__...day of__................._........._._......... ...._...._..., 19 ACKNOWLEDGMENT TO ASSIGNMENT STATEOF...................»...._.........._................ ............_.._.... ........_County of ..._.......__._......._.._._ I. .. .._..............._.................................................».......__................................................. ... .............c xoeary Public r red t« sold.._._._............__.. .._...__....__._County,in the State aforesaid.do hereby certify that ....- ...__.__................._.......... .... ........... who persanally knows to ma to be the 9ersee........_ whose erne subscribed to the foregoing Lease,appeared before me this day in person,and acknowledged dm1 ---•- signed,staled and delivered the said iastrumeot of writing as......................_.....__...._...free and vorarry'set cud dead for the uses and pmpeaaa therein set forth. Given ceder my hand and ...... ......... seal.this ...................day ol.................._._....................... 19._....._.. My commission upirea ...._.... .19..»_._._. Notary Public. • ■■■■■■■E■■■o■EmoMo■■■E�EM C�:Co`iCisiiiiii�iiii'iiims • ■mMMmm■■MME■■■■■■E■■■EEE ill■■■■moll■■■■■■■■E■■■EE. ■Eomul1UEl7M■rimorRU ri x ssiimommiammaiimiiiiiiiiiiiimaliniallifail ■■MMmm■o■u•■m■o.EM■u•u "e MME■■EmomE■■Em■m■M■■■mm' L milli iii iiaiaiMwriai E■E■..MMail...■■Cm.■M■■i � z MEMO■■■■■■E■ME■EMMM■MEM■ a ■■a■m/U■■e7■■!I■■tM■■tE■ e, C■■■M■mEmialMILam■iia■■ a■ ■■■■■■■■■aE■■■E■■ammo■■ CZ ■coo■MIME M■M■■MmmMM■■MIME - ilk■MUM.ra■■rimarfMWell. ■I•■■■lm■6iM■iv■ilia■■ " ■ a■■■■■is■■EMMa■m■M■■mmmE . ■■eiII■■■■■■aa■/m■■■■■m■■■ , ' MIINIM ■r ■Mi!7■■tlmmM9M ' •'. Em E ■aa■d■■oii�■miM■■ME■■gam . : , m... eh IIIRIIIIIIIIIIIIIIIIIIIIIIIIIMEMIIIMMIIIIIIIIIIIIIN s . • - a , g d a w l, b , CI E cal • ono . . • .. .. ..m ! Is a ; I is _ 1 x 8 I i $O >, c c'ii • . ctil I '�. r1y ! O Y G O ! h. 0 V A --� H 4a Al�. t _ 01 COGCC Data Page 1 of 1 Home I Contact Us I Help About Us Complaints Data Government Library Maps Permits Regulation ..... _,..-- _._......---- . . -,, COGIS Database Downloads Imaged Documents Production By County Click here to open page in a new tab/windowI COGIS - WELL Information " • Scout Card o-'®Related Cl Inst.) Q MIT O GIs la Doc RIt COA it Wellbore t Orders Surface Location Data for API #05-123-38565 Status: DG 12/21/2013 Well Name/No: DIAMOND VALLEY EAST#1(click-well name for production) Operator: EXTRACTION OIL&GAS LLC-10459 Status Date: 12/21/2013 Federal or State Lease#: County: WELD#123 Location: SWSW 23 6N 67W 6 PM Field: WATTENBERG -#90750 Elevation: 4,769 ft. Planned Location 800 FSL 155 FM. Lat/Long:40.4674/-104.86981 Lat/Long Source:Field Measured Job Date: 6/8/2014 Reported: 4/24/2015 Days to report: 320 r is!"-~• Job End Date: 6/8/2014 p Chemical Disclosure Registry Wellbore Data for Sidetrack#00 Status: DG 12/21/2013 Spud Date: 12/21/2013 Spud Date is: ACTUAL Wellbore Permit HORIZONTAL Permit#: Expiration Date' 11/28/2015 11:01:26 AM Prop Depth/Form: 11890 Surface Mineral Owner Same: Mineral Owner: FEE Surface Owner: FEE Unit: Unit Number: Formation and Spacing: Code:COOL,Formation:CODELL,Order:,Unit Acreage:320,Drill Unit:GWA Casing: String Type:SURF,Hole Size:12.25,Size:9.625,Top:0,Depth:500,Weight:36 Cement: Sacks'265,Top:0,Bottom:500,Method Grade: Casing: String Type:1ST,Hole Size.8.75,Size:7,Top:0,Depth:7596,Weight:23 Cement: Sacks:732,Top:3000,Bottom:7596,Method Grade: Casing: String Type:1ST LINER,Hole Size:6.125,Size:4.5,Top:6459,Depth:11890,Weight: 11.6 Cement: Sacks:,Top:,Bottom:,Method Grade: Wellbore Completed Completion Date: N/A Measured TD: Measured PB depth: True Vertical TD: True Vertical PB depth: Formation Log Top Log Bottom Cored DSTs Completed information for formation N-COM Status: PR 12/21/2013 1st Production Date: N/A Choke Size: Status Date: 12/21/2013 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. v http://cogcc.state,co.us/data.html 5/20/2015 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): Diamond Valley East #1 File Location(s): LEO239 BY: DATE: Wald' a 7,013 Brad Yatabe - sistant County Attorney NOTES: 0.9 mineral acres/ 317.93 acres spacing unit *12.5 % = .003538 MATCH Hello