Loading...
HomeMy WebLinkAbout20141693.tiff NADOA Model Form Division Order (Adopted 9/95) ORIGINAL DIVISION ORDER To: BILL BARRETT CORPORATION Date: May 5, 2014 1099 18th Street, Suite 2300 Denver, Colorado 80202 Operator: Bill Barrett Corporation Effective Date: See Exhibit "A" Property# and Name: See Exhibit "A" Description : See Exhibit "A" County and State: WELD, CO Production: _ Oil Gas X Both Owner Number: 23849 Type of Interest: See Exhibit "A" Owner Name: WELD COUNTY Decimal Interest: See Exhibit "A" BOARD OF COMMISSIONER 915 10TH ST P O BOX 758 GREELEY, CO 80632-0758 The undersigned certifies the ownership of the decimal interest in production or proceeds as described above payable by Bill Barrett Corporation. Bill Barrett Corporation 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. Bill Barrett Corporation 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 Bill Barrett Corporation any amount attributable to an interest to which the undersigned is not entitled. Bill Barrett Corporation may accrue proceeds until the total amount equals fifty dollars ($50.00), 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 Bill Barrett Corporation may have certain statutory rights under the laws of the state in which the property is located. JUN 0 9 2014 Owner(s) Signature(s): I - !�� (Date) WELD COUNTYMike Free'?? ? tar ir Pro—Tern Owner(s) Tax I.D. Number(s): 84-6000-813 : /1 Owner Daytime Telephone #: 970-336-7204 \\'1 �•: ATTEST : C/.dded%/ SIC Jai' Clerk to the Boar Owner FAX #: 970-33607233 By : , 'Depu Clerk to the Board Federal Law requires you to furnish your Social Sect • o r axpayer Identification Number. Failure to comply will result in 28% tax withholding and will not be refunded by Bill Barrett Corporation. PLEASE KEEP THIS COPY FOR YOUR RECORDS WII/LR l Cris Mal. 2014- 1693 eal stt- - - t wai5 ri isa In CI i 0 0 0 0 0 0 0 0 Y 0 0 0 0 C O O O O O O O O — O O O O mto L L O O O o O 'tj O O O O Cl 0 co a T F t4 CC CC CL CC d L it C CC) 12 13 ct 0 v C >' N �l t � t ct t � - V3 = OriI-1tiI-1 3 o 4, 0000 CX o ? - - - CV . CI �' m o_ a ^ c o m t u o 4.1 10 Y O u 1- m Q Q Q Q 1 C° o o M m O Q Z m to (''s (7 k __ F =O c a d -1� ES u to n sal., c¢` • Q ` l 9_ X 0 u ‘.-1c-i .-i .tiLSI ym W4, H N N N N n3 (1) o Y a w w w w w 11 to to N N _ � 3 ri rl v c tt1 Y 0 LO to to t0 °10 m a z z z CC CC CL CC L( [, CO ' u H H H H 't' i� o 0 Z -{�- m ci to v J 41 011 0 N N 0 \ V �• L U a ti ti m o 1 `t a 13N N N N v ya) ri tLI ri ci t t0 tD ti tD L0O LA \ 1 o to LP)0 o �� lV(`" `vt•] O O0 O ""S l N. K C' C' C' t t O J J W W � J J J J YCJ J J J J N 2- 2- 2 I- J J J J m to to to to Z Z Z ZZ 7 D D TE---- g yA N .r1 Y Y Y Y S Z a N m 'Cr L!) —.e Z rn an CA m CO - - Y r. C111 CO CO co In y N rI N rI N rI N 3 RECEIVED ® Bill Barrett Corporation MAY 0 9 2014 WELD COUNTY COMMISSIONERS Dear Interest Owner, Enclosed are duplicate original Division Orders covering your interest in the referenced property. 1. Please sign exactly as shown on the Division Order. 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. 2. If signing for a corporation, signature must be attested, corporate seal fixed and title of signatory party reflected. If signed by agent, attorney-in-fact,guardian or any party other than the named interest owner, two witnesses must execute the document where indicated. Please provide a certified copy of the power of attorney or other evidence of such party's right to sign. 3. Division Orders for partnerships must be executed by all partners or by an authorized partner. A certified copy of the instrument giving said partner's authority to sign must be furnished. 4. Federal Law requires that you include the proper Social Security Number or Tax Identification Number, whichever applies, in the space provided. Should you fail to provide the correct Social Security or Tax Identification Number,the law provides that we withhold 28%of all production proceeds due. You may also be subject to a further penalty levied by the IRS. 5. If form W-9, Request for Taxpayer Identification Number and Certification, has been included, please complete applicable information, sign and return. 6. If the address shown on our Division Order is incorrect, please insert the correct address to ensure prompt receipt of production proceeds. (Please print or type and do not abbreviate.) After executing the enclosed Division Orders, please return one copy in the enclosed envelope provided for your convenience,along with a completed W-9 form, if one was provided. Retain the second copy for your records. PLEASE NOTE that BBC is now offering direct deposit of your revenue checks into your bank account. If you are interested in participating in this program, complete the enclosed BBC ACH Program Add/Change Form and return it with a void check in the enclosed envelope. If you have any questions or concerns regarding direct deposit, contact the BBC Owner Hotline at(303)312-8579. If you have any questions or require additional information, please contact the undersigned at 303-312-8787 or via email at Iutherford@billbarrettcorD.com. Sincerely, Lisa Rutherford Division Order Assistant 1099 18th Street Suite 2300 DENVER, CO 80202 USA T 303.293.9100 F 303.291 .0420 www.BILLBARRETTCORP.com BJORK • LINDLEY • LITTLE • PC LAWYERS REM,A.BRIM' 'Also aMYned In Morning LAUNA LINDLEY Also adnllned In lw Dlsulel or colimiula Own,R.LITru: •Aba annllitei In NOM Dakoln RolERT C.MATI NISI' 'Special Counsel KATHLEEN C.SCHRODER •W onMnylicsldCnl Counsel DARIN R.Su mu" JILL D.CANTWAT• SARAI,Sonu:i And CASTRURN• HEAHINN R.BILLER' ALLISON E Roams ERIN K.MURPHY' March 12,2013 DRILLING AND DIVISION ORDER TITLE OPINION Bill Barrett Corporation 1099 18`h Street,Suite 2300 Denver,CO 80202 Attention: Ms.Colleen M.Kennedy Senior Landman Re: Sandborn 8-21 H Well All of Section 21-5N-61W Weld County,Colorado Ladies and Gentlemen: Pursuant to your request, we have examined title to the following described lands located in Weld County, Colorado,for drilling and division order purposes,and give you our opinion thereon as follows: DESCRIPTION Township 5 North,Range 61 West,6111 P.M. Section 21: All containing 640.00 acres,more or less Note: For the purposes of identification and convenience we have further delineated the lands as Tracts I,II,III and IV as follows: TRACT I Township 5 North,Range 61 West,6th P.M. Section 21: SE/4 containing 160.00 acres,more or less 1600 STOUT STREET•SUITE 1400•DENVER.COLORADO 8020231 10 TELEPHONE:303802-1400•F sinii.E:303-892-1401•www.bjorklindley.com Bill Barrett Corporation Page 2 Sandbom 8-2111 Well March 12,2013 TRACT II Township 5 North,Range 61 West.6m P.M. Section 21: NE/4 containing 160.00 acres,more or less TRACT III Township 5 North,Range 61 West,6th P.M. Section 21: NW/4 containing 160.00 acres,more or less TRACT IV Township 5 North,Range 61 West,6th P.M. Section 21: SW/4 containing 160.00 acres,more or less MATERIALS EXAMINED 1. Drilling and Division Order Title Opinion dated November 4, 2011, prepared by this fine and directed to BOG Resources, Inc., covering all of the subject lands, based upon abstract coverage certified for the period of time from inception of records to April 25,2011 at 8:00 a.m. 2. Supplemental Abstract, unnumbered,prepared by Percheron, LLC/Mason Dixon Energy, covering all of the subject lands,containing fifteen additional entries, and certified for the period of time from April 1, 2011 at 8:00 a.m.to January 9,2013 at 7:00 a.m. 3. We also examined other related materials supplied by you, including the following: (a) Copy of the Last Will of Mary A. Bresnahan,the First Codicil to Last Will and Testament of Mary A. Bresnahan, together with Informal Probate of Will and Informal Appointment of Personal Representative, Letters, and Verified Statement of Personal Representative Closing Administration in the Probate Court for the City and County of Denver, Case No. 1992PR681; Bill Barrett Corporation Page 4 Sandborn 8-2111 Well March 12,2013 2012 at Reception No.3850150 of the county records;and (j) Pipeline Right-of-way Grant With Receiver/Valve Site recorded February 21,2013. 5. We examined the Colorado Oil and Gas Infonnation System ("COGIS") on March 1,2013 for information regarding production from the Pronghorn#31-21 Well located in the NW/4NE/4 of the subject lands. 6. Electronic Business and Licensing records maintained by the Colorado Secretary of State on March 11,2013 with regard to Grey Bull Royalty Company LLC. DIVISION OF PRODUCTION FROM THE SUBJECT LANDS. ASSUMING APPROPRIATE POOLING OR UNITIZATION THEREOF.AS OF JANUARY 9.2013 AT 8:00 A.M.: 01f • Name NRI Lease No. Lois Ann Rovira p I: 1 x 0.1666667 x 160/640 Y/��1 /y Qf/0.04116667 p�//�((LOR e 1 �(� e� t 1� , o oral° 0I`�f' lr-.V-S44�r(„ {may• toga le. /2-1) II: 1 x 0.125 x 160/640 � > 0.0312500 U LOR 8 '(Q David F.Kunsemiller r" '9 v III: 1 x 0.18 x 160/640 0.0450000 LOR 4 n � I �w Colorado State Bank and Trust � Company, N.A., Trustee of the P.E. 60 1 ' ' m McClintock T/U/W for the benefit of Elizabeth M.Nikoloric 05 IV: 0.25 x 0.1666667 x 160/640 0.0104167 LOR 2 F US Bank, N.A., Trustee of the P.E. McClintock T/U/W for the benefit of Mary M. Swift IV: 0.25 x 0.1666667 x 160/640 0.0104167 LOR 3 Bill Barrett Corporation Page 7 Sandborn 8-21H Well March 12,2013 First Interstate Bank of Denver, N.A. and Jenrose G. Billote, Trustees of the Family Trust created May 24, 1985 IV: 0.125 x 160/640 0.0312500 U Bill Barrett Corporation I: 0.5 x 160/640 1 III: 0.492 x 160/640 4 IV: 0.3121667 x 160/640 0.3260416 WI 2,3,5-7 Anschutz Exploration Corporation I: 0.2898333 x 160/640 1 III: 0.3065 x 160/640 4 IV: 0.1865 x 160/640 0.1957083 WI 2,3,5-7 Bonanza Creek Energy Operating Company,LLC II: 0.875 x 160/640 0.21875001 WI 8 TOTAL: 1.0000000 Record title to Oil and Gas Lease No. 8 remains in El Camino Resources, Inc. and Raymund A. Torella. From the materials examined,however, it appears Bonanza Creek Energy Operating Company,LLC may have succeeded to El Camino Resources,Inc.and Raymund A.Torella's interest in the same. See Title Comment and Requirement No.6. OWNERSHIP TRACT I Surface and All Minerals Lois Ann Rovira All Bill Barrett Corporation Page 9 Sandborn 8-2111 Well March 12,2013 Working Interest Lease No. Bill Barrett Corporation 60.00000% (50.00000%NRI) 1 Anschutz Exploration Corporation 40.00000% (28.98333%NM) TRACT II Surface Xor Chia Moua and May See Moua, as joint tenants All Oil.Gas and Other Minerals Weld County,Colorado All Oil and Gas Leasehold Landowner's Royalty Interest Lease No Weld County,Colorado 12.50000% 8 Overriding Royalty Interest None of record Working Interest Lease No. Bonanza Creek Energy Operating All' 8 Company,LLC (87.50000%NM) Record title to Oil and Gas Lease No. 8 remains in El Camino Resources, Inc. and Raymund A. Torella. From the materials examined, however, it appears Bonanza Creek Energy Operating Company, LLC may have succeeded to El Camino Resources, Inc.and Raymund A.Torella's interest in the same. SeeTtle Comment and Requirement No.6. nw Bill Barrett Corporation Page 23 Sandbom 8-21H Well March 12,2013 Date: September 17,2010 Description: Township 5 North,Range 61 West,6th P.M. Section 21: SW/4 containing 160.00 acres,more or less Term: Five years and so long thereafter. Royalty: 1/6 Delay Rentals: None;this is a paid-up lease, Lease Form: Producers 88 Rocky Mountain 1989 (Paid-Up Rev. 1996 adc) Lesser Interest Clause: Yes Entireties Clause: No Shut-In Gas Royalty Clause: Yes; $1.00 per year per net mineral acre covered by the lease. Pooling or Unitization Clause: Yes;broad form. Special Provisions: Lessee is granted an option to renew this lease under the same terms and provisions for an additional two years from the end of the primary term for a sum of $200.00 per net acre prior to expiration of said lease. Recording Data: Recorded December 17, 2010 at Reception No. 3739814 of the Weld County records. Lease No. 8 Lessor: Weld County, Colorado, a political subdivision of the State of Colorado, acting by and through the Board of County Commissioners of the County of Weld Bill Barrett Corporation Page 24 Sandborn 8-21H Well March 12,2013 Lessee: El Camino Resources, Inc. and Raymund A. Tonella Date: July 9,2003 Description: Township 5 North.Range 61 West,6"P.M. Section 21: NE/4 containing 160.00 acres,more or less Term: From July 9, 2003 until twelve o'clock noon on July 8, 2006 and so long thereafter; by Resolution this lease was extended an additional six months commencing July 8, 2006 and ending January 8, 2007 pursuant to the lease terms. Please see Paragraph No. 1 under the topic"Extensions of Oil and Gas Leases" and Title Comment and Requirement No. 6. Royalty: 12.5% Delay Rentals: If this lease is extended for an additional term as provided for in the extension paragraph described under the special provisions below, Lessee shall pay to Lessor the sum of$1.00 per acre for the land covered hereby as delayed rental for the term of the extension. Rentals set at the time of established production shall be paid during the remaining life of this lease, annually, in advance • on or before each anniversary date. Lease Form: None Lesser Interest Clause: Yes Entireties Clause: No Shut-In Gas Royalty Clause: Yes; except, however, that beginning on the anniversary date next, of the year of an extension of the lease by reason of a shut-in well, Lessee shall pay to lessor a shut-in royalty equal to $2.00 Bill Barrett Corporation Page 26 Sandbom 8-2111 Well March 12,2013 monthly average of 15 barrels per day or 90 MG./D. 5. Lessee agrees to protect the leased land from drainage by offset wells located on the adjoining lands not owned by Lessor, when such drainage is not compensated for by counter-drainage. 6. Lessee may make a written application to Lessor for an extension of this lease. This lease will be extended no more than 6 months from the original expiration date, lessee shall pay Lessor one-third of the original bonus, with a minimum bonus of$10.00 per acre, and the Lessee must pay Lessor the sum of$1.00 per acre leased as delayed rental for the term of the extension. 7. Lessor does not warrant title to the leased premises. Recording Data: Recorded August 18, 2003 at Reception No. 3096557 of the Weld County records. RATIFICATION OF OIL AND GAS LEASE By Instrument dated December 3, 2010, recorded February 28,2011 at Reception No. 3752979 of the county records, Peggy DeLidle, a/k/a/ Petty Ann DeLidle, as Successor Personal Representative of the Estate of George Richard Foreman,ratified Oil and Gas Lease No. 5 effective as of September 15,2010. EXTENSIONS OF OIL AND GAS LEASES 1. By Resolution dated July 5, 2006, recorded August 11, 2006 at Reception No. 3411222 of the county records, Weld County granted Bonanza Creek Energy Operating Company,LLC's request to extend Oil and Gas Lease No. 8 for a period of six months,commencing July 8, 2006 and ending January 8, 2007. See Title Comment and Requirement No.6. 2. By Affidavit of Extension of Oil and Gas Leases executed August 3,2011, recorded August 11, 2011 at Reception No, 3785811 of the county records, Ralph E. MePhetridge, as Senior Vice President Corporate Development/Land of Bonanza Creek Bill Barrett Corporation Page 25 Sandbom S-21H Well March 12,2013 per acre 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 lease due to the existence of a shut-in well shall be 5 years beyond the extension term described in the special provisions below. Pooling or Unitization Clause: Yes; providing Lessee may at any time pool any part or all lands or lease or any stratum or strata with other lands and leases, stratum or strata, in the same field to constitute a spacing unit to facilitate an orderly well-spacing pattern or to comply with any order, rule or regulation of the COGCC, and providing that in the event Lessor permits the lands leased to be included in a communitization or unitization agreement, the terms of this lease may be deemed modified to conform to such agreement and when only a portion of the land under this lease is committed by an agreement, Lessor may segregate the land and issue a separate lease for each portion not committed thereunder. Special Provisions: 1. This lease contains a 60-day continuous drilling clause. 2. Lessee, with consent of Lessor, may assign all or part of the lands covered by this lease,but in no less than approximately 40 acre tracts. If any assignment of a portion of the lands covered by this lease is approved, a new lease shall be issued for those lands assigned. 3. Lessee shall notify Lessor of all assignments of undivided percentages or other interests. 4. Any and all reservations or assignments of overriding royalties shall be subject to Lessor approval and the same shall not exceed 5%, including any overriding royalty previously provided for unless production exceeds a k;s .-7-54p. 6/AI SPA.a Bill Barrett Corporation Page 34 Sandborn 8-21H Well March 12,2013 in the event the probate ' not a Colorado probate,it may be necessary to co uct ancillary probate proceedings in the State of lorado to properly ass title to this interest. If yo etermine from su information that someone othe than Lillian Davis to succeed to Dean Davis' inte in Tract IV,you s uld obtain leases from them. An , natty, Lease No. 7 is executed Vicky L.Higginbotham whop its to be the Executo d Attorney-in-Fact for the state of Francis Irene Sublett. e materials examined fain the Last Will and Te ent of Francis Irene Sublett, i which Vicky L. Higginbo is named as the sole and Letters of Appointment, appointing Vicky L. Higgin am as the executor of estate, which estate was probated in Pottawattamie Count , owa. These probate doc is were filed with and accepted by the District Court in El P County,Colorado pursuan o Colo.Rev.Stat. § 15-13-205,which gives foreign personal resentatives all the powers local personal representative, including the power to co ey Colorado real property personal representative's deed. However, the materia xamined do not contain a ersonal representative's deed in favor of Vicky L.Higginbo )tEOUIREMENT: (e) Vicky L. Higginboth ould execute and file for record in Weld County, lorado a personal representative's deed conveying the decedent's mineral interest in Tract IV in favor of herself. 6. Weld County owns 100%of the minerals underlying Tract II. Oil and Gas Lease No. 8 covering Tract II dated July 9, 2006 was executed in favor of El Camino Resources, Inc. and Raymund A.Torella. Thereafter,the record contains the Assignment and Bill of Sale discussed in Paragraph No. 3 under the topic "Assignments of Oil and Gas Leases" above, from Bonanza Creek Operating Company, LLC to Bonanza Creek Energy Operating Company, LLC. We examined the Weld County ICRIS website for any assignments of interests in Oil and Gas Lease No. 8 out of El Camino Resources,Inc. and Raymund A. Torella and found none. We did,however, locate a Resolution dated July 5, 2006, recorded August 11, 2006 at Reception No. 3411222, in which Weld County,Colorado granted Bonanza Creek Energy Operating Company,LLC's request to extend Oil and Gas Lease No. 8 for a period of six month ending January 8, 2007. Thus, it appears there is a missing assignment or assignments out of El Camino Resources,Inc. j and Raymund A. Torella covering their interest in Oil and Gas Lease No. 8. We have assumed for purposes of this opinion that Bonanza Creek Energy Operating Company, LLC owns an undivided 100% leasehold interest in Tract II and no overriding royalty interests burden this interest. However, we direct your attention to Paragraph No. 4 under the topic "Liens and Encumbrances" above in which Holmes Eastern Company, Bill Barrett Corporation Page 35 Sandborn 8-21H Well March 12,2013 LLC purports to burden its interest in Oil and Gas Lease No. 8, among other leases and interests,which indicates this assumption may be incorrect. )tEOUIREMENT: (a) You must conduct an investigation to locate the missing assignment(s),if any, out of El Camino Resources, Inc. and Raymund A. Torella, and/or their assigns, to ensure the same conveyed an undivided 100% leasehold interest in Oil and Gas Lease No. 8, without reservation, and the same should be recorded in Weld County, Colorado. If you discover Bonanza Creek Energy Operating Company, LLC does not own an undivided 100% leasehold interest in Oil and Gas Lease No. 8 or that such interest is burdened by overriding royalty interests, you should supply such assignment(s), if any, for our examination and further comment, and we will revise the Ownership and Division of Production schedules set out above. a ) (b) Also,please note that under the terms of Oil Uv 611)7 and Gas Lease No. 8,the Lessee must obtain prior 7i / consent of the Lessor to assign the entire leasehold interest and/or overriding royalty interests in all or part of the lands covered. Thus,in the event you do locate the missing assignment(s) discussed in Requirement No. 6 (a) above, if any, you should ensure such assignment(s)were properly consented to. The county records also contain an Affidavit of Extension of Oil and Gas Leases executed August 3,2011,recorded August 11,2011 at Reception No. 3785811, in which the Senior Vice President of Bonanza Energy Operating Company, LLC states that production of oil and gas was obtained from Bonanza's Pronghom #31-21 well in the NW/4NE/4 of Section 21, and that such production is sufficient to extend Oil and Gas Lease No. 8 beyond its primary term. According to the COGIS records, first production from the Pronghorn #31-21 Well located in the NW/4NE/4 of Section 21 occurred on December 28,2006(before the end of the extended lease term on January 8,2007). The COGIS records also state that as of December 2012 the Pronghorn#31-21 Well was still producing from the Niobrara formation. Further, nothing in the materials examined indicates there is a top lease to Oil and Lease No. 8. Thus, Oil and Gas Lease No. 8 j appears to be held by production. Bill Barrett Corporation Page 36 Sandbom 8-21H Well March 12,2013 REOUIREMENT: (c) You should satisfy yourself that Oil and Gas Lease No. 8 remains held by production in paying quantities from the Pronghorn #31-21 Well located in the NW/4NE/4 of Section 21 and that such production will continue in effect beyond the drilling and completion of your proposed well. If you determine Oil and Gas Lease No. 8 is not held by production, you should get a lease from Weld County. 7. Your attention is invited to the rights-of-way set out under the topic "Easements and Rights-of-Way" above. In certain instances, the particular locations of these rights-of-way are not set out in the instruments of conveyance. REQUIREMENT: (a) In conducting your surface inspection as called for in Paragraph No. 19, below, particular attention should be paid to the locations of these rights-of-way and all operations on the premises should be conducted in such a manner as not to unduly interfere with the rights vested in the owners thereof. In addition, your attention is invited to the fact that the Pipeline Rights-of-Way discussed in Paragraph Nos. 4 and 5 under the same topic were executed by John W. MeMannama, as power of attorney for David F. Kunsemiller. No power-of-attorney from David F. Kunsemiller to John W.McMannanut has been recorded in Weld County, Colorado. In Colorado,powers of attorney must be recorded in the same county in which the conveyance was recorded. Colo.Rev. Stat. §38-30.123. REQUIREMENT: (b) None;advisory only. However, in the event you are interested in the ownership of the subject rights-of-way, you should obtain a power of attorney for John W. McMannama as attorney-in- fact for David F. Kunsemiller, and the same should be filed for record in Weld County,Colorado. 8. Your attention is invited to the Deeds of Trust set out in Paragraph Nos. 1 and 2 under the topic "Liens and Encumbrances" above. Neither of these instruments will have any effect upon your oil and gas leasehold title. They are both past due and delinquent. Bill Barrett Corporation Page 37 Sandborn 8-21H Well March 12,2013 REQUIREMENT: (a) None; advisory only. However, in the event you intend to acquire any interest in the surface of the Tracts II and IV, you should obtain releases of these instruments to the extent of the interest you acquire. Your attention is also invited to the Mortgage and related instruments set out in Paragraph No. 3 covering Bonanza Creek Energy Operating Company,LLC's interest in Oil and Gas Lease No. 8, and including as-extracted collateral. REQUIREMENT: (b) None; advisory only. However, in the event you intend to acquire any interest in Oil and Gas Lease No. 8 covering Tract II, you should obtain releases of these instruments to the extent of the interest you acquire. Finally, your attention is invited to the Mortgage and Financing Statement set out in Paragraph No. 4. In these instruments, Holmes Eastern Company, LLC purports to burden its interest in Oil and Gas Lease No. 8,among other leases and interests. Holmes Eastern Company,LLC owns no record interest in Oil and Gas Lease No. 8. However,as noted above, there may be a missing assignment or assignments out of El Camino Resources,Inc. and Raymund A.Torella(the record title owner of Oil and Gas Lease No. 8). Thus,Holmes Eastern Company,LLC may or may not be a stranger to title. REQUIREMENT: (c) None; advisory only. However, in the event you intend to acquire any interest in Oil and Gas Lease No. 8 covering Tract II, you should obtain releases of these instruments to the extent of the interest you acquire. 9. Your attention is invited to the Assignment, Bill of Sale and Conveyance discussed in Paragraph No. 4 under the topic "Assignments of Oil and Gas Leases," whereby EOG Resources, Inc. conveyed to Anschutz Exploration Corporation an undivided 40% of its interest in Oil and Gas Lease Nos. 1-7, and other leases, and I reserved an overriding royalty interest equal to the difference between 20% and existing burdens. This Assignment provides that the reserved override is subject to proportionate reduction (mineral and leasehold), but does not explicitly state that such overriding royalty shall also be proportionately reduced to the interest assigned(40%). Nonetheless, for purposes of this opinion we have assumed that the parties intended that the reserved overriding royalty interest also be proportionately reduced to the 40%interest assigned. REQUIREMENT: None;advisory only. J IOU 513 . 5E3 . ' . 94 4 h _5N/6 I W Weld County 100%MI 0500 RI gi 21ge 4104106.01 A -4r .•n 4 *. 'AK t t j .‘ 4 4 r,4.1r. y • 'y - ,•1 fit• • f 2 7, , if .-o Mt,,Ci (I :L'Y•„W. Inc'„BkAC-4.1,IUrfn , c : _0.i e,„ Legend Weld County Mineral Interest Bill Barrett Corporation MI 640 Acre Drilling and Spacing Unit 0 0.5 1 iimil i Miles Weld County Division Order Plat 5N-61W,Sec.20 160/640=.25 TPF X.125 Royalty interest= 0500 RI in the Spacing Unit 05/05/2014 We1dCa,ntyDivbbrArderPlat SN61Weec21 201!0505 mcd by-qc COGIS - WELL Information Page 1 of 1 COGIS - WELL Information Scout Card t Related Q Insp. Q MIT • GIS a Doc li Wellbore Orders Surface Location Data for API # 05-123-38212 Status: DG 1 Well Name/No: Kunsemiiler#5-61-21-1609BH (click well name for production) Operator: BARRETT CORPORATION* BILL - 10071 Status Date: 11/16/2013 10:00:00 AM Federal or State Lease#: County: WELD#123 Location: NWNW 21 5N Field: NE RIVERSIDE II -#57250 Elevation: 4,642 ft. Planned Location 1291 FNL 301 FWL Lat/Long: 40.390297/-104.222581 Lat/Long Sour( aVs a•.4 r.. Job Date: 3/3/2014 Reported: 3/11/2014 Days to report: Chemical Disclosure Registry Wellbore Data for Sidetrack #00 Status: DG 11 Spud Date: 11/16/2013 Spud Date is: ACTUAL Wellbore Permit HORIZONTAL Permit#: Expiration Date: 10/3/2015 7:37 Prop Depth/Form: 10628 Surface Mineral Owner Same: Y Mineral Owner: FEE Surface Owner: FEE Unit: Unit Number: Formation and Spacing: Code: NBRR , Formation: NIOBRARA , Order: 535-361 , Unit Acreage: 640, Drill Ur Casing: String Type: CONDUCTOR , Hole Size: 20, Size: 16, Top: 0, Depth: 60, Weight: 65 Cement: Sacks: 50, Top: 0, Bottom: 60, Method Grade: Casing: String Type: SURF , Hole Size: 13.5, Size: 9.625, Top: 0, Depth: 800, Weight: 36 Cement: Sacks: 430, Top: 0, Bottom: 800, Method Grade: Casing: String Type: 1ST , Hole Size: 8.75, Size: 7, Top: 0, Depth: 6430, Weight: 26 Cement: Sacks: 540, Top: 600, Bottom: 6430, Method Grade: Casing: String Type: 1ST LINER , Hole Size: 6.125, Size: 4.5, Top: 5600, Depth: 10628, We Cement: Sacks: , Top: , Bottom: , Method Grade: Wellbore Completed Completion Date: N/A Measured TD: Measured PB depth: True Vertical TD: True Vertical PB depth: Top PZ Location: Sec: 21 Twp: 5N 61W Footage: 1120 FFNLL 650 FFWLL Depth Bottom Hole Location: Sec: 21 Twp: 5N 61W Footages: 1120 FFNLL 500 FFELL Depth Formation Log Top Log Bottom C Completed information for formation N-COM Status: SI 4 1st Production Date: N/A Choke Size: Status Date: 4/9/2014 Open Hole Completion: Commingled: Production Method: Formation Name: NOT COMPLETED Status: SI 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 . http://cogcc.state.co.us/cogis/FacilityDetail.asp?facid=12338212&type=WELL 5/30/2014 COGIS - WELL Information Page 1 of 1 COGIS - WELL Information Scout Card b E. Related Q Insp. Q MIT 0 GIS a Doc if Wellbore - Orders Surface Location Data for API # 05-123-38224 Status: WO i Well Name/No: Kunsemiller#5-61-21-1724BH (click well name for production) Operator: BARRETT CORPORATION" BILL- 10071 Status Date: 4/1/2014 Federal or State Lease#: County: WELD#123 Location: NWNW 21 5h Field: NORTH RIVERSIDE -#60130 Elevation: 4,643 ft. Planned Location 1311 FNL 300 FWL Lat/Long: 40.390243/-104.222582 Lat/Long Sour alll.y� e`� ,. Job Date: 3/2/2014 Reported: 3/27/2014 Days to report Chemical Disclosure Registry Wellbore Data for Sidetrack #00 Status: WO 4/ Spud Date: 11/15/2013 Spud Date is: ACTUAL Wellbore Permit HORIZONTAL Permit#: Expiration Date: 10/3/2015 2:4: Prop Depth/Form: 9356 Surface Mineral Owner Same: Mineral Owner: FEE Surface Owner: FEE Unit: Unit Number: Formation and Spacing: Code: NBRR , Formation: NIOBRARA , Order: 535-361 , Unit Acreage: 640, Drill Ur Casing: String Type: CONDUCTOR , Hole Size: 24, Size: 16, Top: 0, Depth: 60, Weight: 65 Cement: Sacks: 50, Top: 0, Bottom: 60, Method Grade: Casing: String Type: SURF , Hole Size: 13.5, Size: 9.625, Top: 0, Depth: 800, Weight: 36 Cement: Sacks: 430, Top: 0, Bottom: 800, Method Grade: Casing: String Type: 1ST , Hole Size: 8.75, Size: 7, Top: 0, Depth: 6450, Weight: 26 Cement: Sacks: 540, Top: 600, Bottom: 6450, Method Grade: Casing: String Type: 1ST LINER , Hole Size: 6.125, Size: 4.5, Top: 5600, Depth: 9356, Welt. Cement: Sacks: , Top: , Bottom: , Method Grade: Wellbore Completed Completion Date: N/A Measured TD: Measured PB depth: True Vertical TD: True Vertical PB depth: Top PZ Location: Sec: 21 Twp: 5N 61W Footage: 1740 FFNLL 650 FFWLL Depth Bottom Hole Location: Sec: 21 Twp: 5N 61W Footages: 1740 FFNLL 1784 FFELL Depth Formation Log Top Log Bottom C Completed information for formation N-COM Status: WO 1st Production Date: N/A Choke Size: Status Date: 4/1/2014 Open Hole Completion: Commingled: Production Method: Formation Name: NOT COMPLETED Status: WO 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 . http://cogcc.state.eo.us/cogis/FacilityDetail.asp?facid=12338224&type=WELL 5/30/2014 COGIS - WELL Information Page 1 of 1 COGIS - WELL Information Scout Card f= Related al Insp. O MIT O GIS a Doc if Wellbore a Orders Surface Location Data for API # 05-123-38223 Status: DG 1 Well Name/No: Kunsemiller#5-61-21-3225BH (click well name for production) Operator: BARRETT CORPORATION* BILL- 10071 Status Date: 11/14/2013 11:00:00 AM Federal or State Lease#: County: WELD#123 Location: NWNW 21 51` Field: NORTH RIVERSIDE -#60130 Elevation: 4,643 ft. Planned Location 1331 FNL 300 FWL Lat/Long: 40.390188/-104.222583 Lat/Long Sour WI" Job Date: 2/27/2014 Reported: 3/27/2014 Days to report Chemical Disclosure Registry Wellbore Data for Sidetrack #00 Status: DG 11 Spud Date: 11/14/2013 Spud Date is: ACTUAL Wellbore Permit HORIZONTAL Permit#: Expiration Date: 10/3/2015 2:4: Prop Depth/Form: 10705 Surface Mineral Owner Same: Mineral Owner: FEE Surface Owner: FEE Unit: Unit Number: Formation and Spacing: Code: NBRR , Formation: NIOBRARA , Order 535-361 , Unit Acreage: 640, Drill Ur Casing: String Type: CONDUCTOR , Hole Size: 24, Size: 16, Top: 0, Depth: 60, Weight: 65 Cement: Sacks: 50, Top: 0, Bottom: 60, Method Grade: Casing: String Type: SURF , Hole Size: 13.5, Size: 9.625, Top: 0, Depth: 800, Weight: 36 Cement: Sacks: 430, Top: 0, Bottom: 800, Method Grade: Casing: String Type: 1ST , Hole Size: 8.75, Size: 7, Top: 0, Depth: 6550, Weight: 26 Cement: Sacks: 550, Top: 600, Bottom: 6550, Method Grade: Casing: String Type: 1ST LINER , Hole Size: 6.125, Size: 4.5, Top: 5700, Depth: 10705, We Cement: Sacks: , Top: , Bottom: , Method Grade: Wellbore Completed Completion Date: N/A Measured TD: Measured PB depth: True Vertical TD: True Vertical PB depth: Top PZ Location: Sec: 21 Twp: 5N 61W Footage: 2260 FFNLL 650 FFWLL Depth Bottom Hole Location: Sec: 21 Twp: 5N 61W Footages: 2260 FFNLL 500 FFELL Depth Formation Log Top Log Bottom C Completed information for formation N-COM Status: SI 1st Production Date: N/A Choke Size: Status Date: 4/9/2014 Open Hole Completion: Commingled: Production Method: Formation Name: NOT COMPLETED Status: SI 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 . http://cogcc.state.co.us/cogis/FacilityDetail.asp?facid=12338223&type=WELL 5/30/2014 COGIS - WELL Information Page 1 of 1 COGIS - WELL Information Scout Card C Related Q Insp. Q MIT • GIS a Doc 11 Wellbore a Orders Surface Location Data for API # 05-123-38211 Status: WO Well Name/No: Kunsemiller#5-61-21-0108BH (click well name for production) Operator: BARRETT CORPORATION* BILL- 10071 Status Date: 4/1/2014 Federal or State Lease#: County: WELD#123 Location: NWNW 21 5I` Field: NORTH RIVERSIDE -#60130 Elevation: 4,642 ft. Planned Location 1271 FNL 301 FWL Lat/Long: 40.390352/-104.22258 Lat/Long Sour "s a sK w- Job Date: 3/5/2014 Reported: 3/11/2014 Days to report Chemical Disclosure Registry Wellbore Data for Sidetrack #00 Status: WO 4/ Spud Date: 11/17/2013 Spud Date is: ACTUAL Wellbore Permit HORIZONTAL Permit#: Expiration Date: 10/3/2015 7:3' Prop Depth/Form: 10717 Surface Mineral Owner Same: Y Mineral Owner: FEE Surface Owner: FEE Unit: Unit Number: Formation and Spacing: Code: NBRR , Formation: NIOBRARA , Order: 535-361 , Unit Acreage: 640, Drill Ur Casing: String Type: CONDUCTOR , Hole Size: 20, Size: 16, Top: 0, Depth: 60, Weight: 65 Cement: Sacks: 50, Top: 0, Bottom: 60, Method Grade: Casing: String Type: SURF , Hole Size: 13.5, Size: 9.625, Top: 0, Depth: 800, Weight: 36 Cement: Sacks: 430, Top: 0, Bottom: 800, Method Grade: Casing: String Type: 1ST , Hole Size: 8.75, Size: 7, Top: 0, Depth: 6515, Weight: 26 Cement: Sacks: 550, Top: 600, Bottom: 6515, Method Grade: Casing: String Type: 1ST LINER , Hole Size: 6.125, Size: 4.5, Top: 5700, Depth: 10717, We Cement: Sacks: , Top: , Bottom: , Method Grade: Wellbore Completed Completion Date: N/A Measured TD: Measured PB depth: True Vertical TD: True Vertical PB depth: Top PZ Location: Sec: 21 Twp: 5N 61W Footage: 500 FFNLL 650 FFWLL Depth Bottom Hole Location: Sec: 21 Twp: 5N 61W Footages: 500 FFNLL 500 FFELL Depth Formation Log Top Log Bottom C Completed information for formation N-COM Status: WO 1st Production Date: N/A Choke Size: Status Date: 4/1/2014 Open Hole Completion: Commingled: Production Method: Formation Name: NOT COMPLETED Status: WO 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 . http://cogcc.state.co.us/cogis/FacilityDetail.asp?facid=12338211&type=WELL 5/30/2014 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): Kunsemiller 5-61-21-1609BH File Location: LE0215 Kunsemiller 5-61-21-1724BH Kunsemiller 5-61-21-3225BH Kunsemiller 5-61-21-0108BH BY:; ; �f cep DATE: S-" Stephanie Arries Assistant County Attorney NOTES: 160 mineral acres/ 640 acres spacing unit *20% = .05 MATCH Hello