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HomeMy WebLinkAbout1.0 Application600 17th Street, Ste 1600N Denver, CO 80202 November 20,2074 David Pesnichak, Senior Planner Garfield CountY Community Development Department 108 8th St suite 401 Glenwood SPrings, CO 8L601 RE: Amendment to Approved Administrative Review Land Use change Permit CaerusPiceance,LLC-NolteSWDl-14lnjectionWell,Small, Garfield County File Number GAPA-7985 Dear Mr. Pesnichak, On behalf of Caerus Piceance, LLC (Caerus), please find enclosed the minor amendment application to the Nolte swD 1-14 approved Garfield county Land Use change permit' caerus is proposing to move four injection tanks into the existing Nolte pad containment and move the injection skid from the proposed upper pad down onto Nolte well pad' By doing this' and using existing Nolte well pad containment that will be large enough to handle additionaltanks' caerus wiil minimize the view shed and the amount of traffic that wirl be seen from 170 and the local areas. prease note that a Form 4 sundry was submitted to the coGCC to revise the approved Nolte L4- 796Pad(Location lD# 435805) Form 2A Location Assessment facility layout' Please find enclosed the following application materials: o Land Use Change Application Form (Exhibit A) . section 4-106.C - Amendment Review criteria (Exhibit B) . Payment Agreement Form (Exhibit C) . Required Permit Fee (5300) .ownership/AuthorizationDocumentation(ExhibitD) o project Description and comparison of Amendment to Approved Director's Determination . Site Plan (Exhibit E) . Copy of Director's Determination (Dated October tO,2OL4l (Exhibit F) e Vicinity MaP (Exhibit G) .i. ,:, ,/ 600 17th Street, Ste 1500N Denver, CO 80202 per your request, prease find enclosed one additionar copy and an electronic copy of caerus' proposedminoramendmentfortheNolteSWDl-l4smallinjectionwellLandUseChange Permit. Pleasefeelfreetocontactmewithquestionsorforfurtherinformation. SincerelY, Shauna DeMattee Regulatory Analyst - Contract Consultant Progressive Consultin g P.O. gox 863, LafaYette' CO 80026 Cell:720'299-4495 EXHIBIT A Community DeveloPment DePartment 108 gtn Street, Suite 401 G lenwood Springs, CO 81601 (e7O) 94s-8212 Wralw. garf ield-countv'com tr tr tr tr Rezoning tr Zone D istrictE P !.ltet_PIe PUD AMC ndment tationtrAdministrative tr tr tr Accomm tr PiPe line Develo ment tr Time E xtension (also check of origin al aPPl icatton atlv e lnter retatlon of State lnterest odation Pursu ant to Fair Housing Act tr Variance Owner Name: /APPlicant Caerus Picea Mailing Address:600 CitY:Denver NCC, LLC 17th Street, rusoilandg ressivep 24 Ste 1600N as.com cs.net 0 I -1 3 3 Quebec St',Ste 250 n 14, T7s,R96W of Phone: (303 ) state: CO ZiP code: 565-4600 80202 299-4495 80026 mryn earso n@cae E-mail Rep Name: PO Box 863 Mailing Address CitY:LafaYette E-mail sde mattee@Prog Proiect Name: Nolte SWD 1-14 Assessor's Parcel Number 5460 s Physical/Street Address: Legal DescriPtion: S ESE, Sectio resentative (Authorization Require d) Shaun a DeN/lattee Phone: \720 state: CO ZiP code: 00 -01 3 the 6th PIVI l 1 tr tr CWReviativeISntrmlAd teRevactmpimitedL M or Revtew ND USE CHANGE PERMIT APPLICATION FORM. Minor Amendment LA Zone District:Rural PropertY Size (acres)147.29 The ProPosed injection well Existing Use:Rangeland/ n to the well)into the existing is ProPosing Nolte a mino pad cont r mod ainment and move ificatio * Caerus this, and u sing existing Nolte well Pad containm doing the amount of traffic that will be see e view shed and is located on an existing well Pad Land Use Change the iniecti on skid from the ent that w ill be large en n from 170 a Use Table 3-403):lnd ustrial Use well served by PiPeli ne with icant requ esting a Waiver of Sub total of 18 wells the proPosing to move pad down onto Nolte dditional tan ks, Caeru ction Well tanks, total caPacitY less Permit for a Caerus iS injedion four iniectl on tanks well Pad BY s will minimize than 5,000 barrels proPosed uPPer ough to handle a nd the local areas. - Small lnie 5 storageProPosed Use (From DescriPtion of Proiect: Submissiontr The APPI Section: Section: W aiver of Standards mission Requirements per Section 4-202' List Section Section tr aiver of Standards per Section 4-118' List: icant is requesting a W The APPI Section: Section: Section Section nts above and have provided the required attached information which is have read the stateme best of mY knowledge' rrect and accurate to the co Date Signature of ProPertY File Number:g\LLB-- ,'2-$t5' 2 Owner g.- Fee Paid: S rfielil Co u nAGa PRE.APPLICATION CONFERENCE SUMMARY DATE: u/r8/zot4 TAX PARCEL NU MBER: 24o9'13ro'oot3 PROJECT: Caerus lniection Well' Amendment OWNER/APPLTCANT: Puckett Land Company REPRESENTATIVE: Shauna DeMattee' Progressive Consulting lnc' PRACTICAL LOCATION: West of the Town of Parachute' Section t4' Township 7* Range 96West TVPE OF APPLICATION: Amendmentto Well'Small" in for an iniection an approved Admlnistrative Review for a'tlnlection itt"'nutrt zone district Determinationl.PROJECT N GENERAL The APPlicant is proPosing to amend an approved Directors d with a total wate r storage cap acitY of less th an 5,000 barrels' well served bY a piPeline an ation form, fee ($gOO), Paym ent agreement The aPPlicant will need to s ub mit a new aPPlic to the crite ria found in form,ownershiP /authorization documents, sit e plan, resPonse Section 4-105(c)and a letter of exPlanation (see more co mplete list below). AnY made in the apPlication are considered con ditions of apProval'No rePresentations amendment to a ny conditions of approval are Pro posed. The Proiect is situ size. The iniection The aPPlicant is Pr ated on Prope oposin wells are to b I to reloc rty owned bY e situated wi ate the iniect Puckett Land ComPan ion well skid and tan in a COGCC aPProve y and is 14 d well Pad ks to the e Upon initi 7.29 acres in (Nolte SWD)' ast, closer to al review, it th the drilling oPerat ions and still wi thin a COGCC permitte d location' apPears the ProPos ed amendment can be conside red a Mi nor Modification The Proiect site is accessed off an existing road that is approximately 3500 feet from state Highway 5 and a n interchange with l-70 4n0/2014 Garlleld Ccilrty'CO I MaP P(irr 9"1,*i?J*,s,." unty, co twl,gis.g ilfr d+cotnty conrlsltudl/prinU?e{ent=234467 .6S3481s96.4368s1 1 1975S233'237348 752241145,43?046S 18384233&spalialrel€rarc€-2@13&l4Ftrs 111 ,r.REGULAr-oRYPRovrsroNs^11[:xJJ:fr$jt!*?.[:':1,:';".' i.*,.ia i"unfv !d f ilffi;}i:tffJ' ;;; tn.ne"'" : tH#''ll.,xfi"jj::fiil :TIl.,"' ' Submittal R : tl[:J;l]'ilu;liiut u"' Standards lll. SUBMITTALREqutRE*.ty:,..,ionMaterialsr {-2or.'. oflo"Jfil}?j,i,",, ' tli*tnt Agreement Form . LTI:?i1I, Authorizatil*:::ffillT[,]'"0* - Proiect DescriPtion u'19:o'P Oit"ttors Determination Site Plan ^ letermination (Dated october to' CoPY of Directors u ent to APProved zor+) to section 4'tol'E' VicinitY MaP ,v. REvrEw:lil'i'"r:,:11"j:,::H'f.'Iflffii1l?Xly:T:Hffi:::"*'* process' (4' rhe Proces't: i::Hi,"ii. t "duseto+)nrf,c.e"Hlii:$*'[i[*-'i{f*reness. (zo days.ror staff review,6o davs ror appricant B. APPIz: li:';nr:il{I:ffi lil'*?'i'JJ:t}':'$:,1*';:;;} and De,ermina'iion' D' Director oetermfa]i11 E. *j** [v o1"-'11ffl;::i]lT-: ;t':1rulIffiI and new site pran resulting in a finat teet" r"iiir'or:d_t-1*i h any conditions oi ipror.r.F' [.1'.:':::H'#111il ;;;*priancew v. puBLrc TL}|rlt tfiI"ff:maired and published pursuant Public Hearing nott< -J:-None.-l: :n+ ::Tff ::*mi s sio n e r s public Notice is not required unless the amendment deeme vl. REFFERALS r^*^rrri.d adencies: trr:6^r ^r (.bstantial Modification) i'.,.,"i *.villr-f i:i:?:",}j:igff:,::ii: determination of Minor or Subst: Nont vu. AltlllI'i,U:l#J.tiir. rouowing rees and deposit requirements: This aPPlication wt planningReviewFees: l,rr:t *additionatstaff timechargedatstaff hourlyrateof $40'50 Referral A$encY Fees:neering review fee based on hourly rate $En$ $300 Total Date P Senior Planner October 10,2014 Bi,::ffi' :igl*|i:': DeveroPment FtoIre".iue Consulting [.?;iJ[3e 80026 D,REcroRDErERMrNArroN'#St*li,fi:t{te^iui'iX'"'1i3"'" ffiI rheD*ecto,,^r-...1i:ff, ,3t$f,[li:l:XiX'ffi$,,H:T'lJ![lH'{indinssand subiect to the Appttcant 5 rrrptvvv"'"..- . r r ranrrired for an ,15;.,x;,r,iJ,fl:3[1,#ll'i.yei.*lJ!'i1",1*"requiredtor 'ffi**Pg5g*P*un:ui'lHil{i$ 1 3.rhatwiththead?f,;.itrtt.'."fi1'['*?,ll;r?Xll:3'i'il.fr :tsenerar oonformance wlt 4 r hat *rq th: tX:r:i lr3' S'# Xi:..S:li XTHX-i: l Xffi 'S:ffi [ll#l the requlrement Coo., as amended' ADirector,sDeclslonisherebyissuedapprovingtheApplicatlonsubiecttothe following conditions: Condltlons Prlor to lssuance""' " u*,;dl6mtg1*:i''1q3,i1l,,6$gffi Ensineer ilil'.. Jistng !l'., |}!! Sill..|ji3:ffi iilEiio ittuance of the Lano ' lilt,;uli. ''+?[8.frfl;fl:ilitl::ilffiffi lt#lt: CountY CJntract Engineer Permit other::Tff representations,T.*,:I,::*'#J5il:i#::eii\\T'L'#Xil be condil boJntv Gommlssioners' -;:isxil'l?:ffi1T"",,''?"':i;{H{e;tiiii$$L:If iml iegulationt governing the oF ' ffi;gfu ;gfrt;iffi H'#l['iL::Fiiilr'#l""J .l*i,tfl lJ,:Xl,"T;lLffi }:1lill,i&:tF3,'iffi HErermitsrortheracrrrtv T.lmplementationoltheAppllcanfsDustControlPlanisrequired. 2 'qi$*ffi ril,,*':l".$*$}:t:'i#;:fr511ttff'ii'til.i} control State ar ,*"**11,,if, :;x1ffi ";fl i,[':ii'::if*"..?3:'I':'fi lBfl:113'$:lii the facilitY ano "il,lfrffi r'stir:1g:p;$*#t;[}Hffi electric PumP as 'roP':--Tl'i-^' i.il.iiii.o tnd RPPlic'lJ-:n?,:l"uj .'.ni.'" *T.l':ffi fi ,fl ".:n- $Ll;..professionalto contrnt \rvtrtvt':u'"- . a.'r^r^ plan orovisionq and shall l l rhe nrorielt;!flLi:tr$yl[fli,*it -:ff.S[: iie iacnitv ,,:Ti,T..d**druf *3;**pU"l;tgi:*fl ;;I3l:H all lighting tt the slte' F ,,*i#li**.*r**t*'3f, ,i,Ht:i1'xl,$elnn*ca*onsubmittar , -T:H'--, il;r*n :l:lil3yus weed Manasement Pran including til tlii *tnagdment practices' 'u5:;:'",iffi;:T"iili::pi:t:1t"H*f#H+'#:Lxxfl l"?'l;il'i3 ioiOucteo between the hours ronre,snuffi ':"d[Xl}-?[[T3.:*'x",'"H::'ltX.3'llH?#lf "t l7.TotalwaterstorageshallnotexceedS,000bbl.,includingany' ' 'condensate tanks' *41rygfi;g*;gu*gmft**rug*-w of approvalhave oeert reDvtvv- "'- - 3 Please contact this department if you have any questions' SincerelY DePartment cc: eqdjl 9"[Y,,!|fl [f',il',1^T,i.**KellY Cave' n 4 Exhiblt A SiteX tl cl{ ,lolquna I I I I , I I I I I I It I I , I I I I II II I I II t I I Nolte l4-?96W ell I I I a:al .'tuttat "&Sh.'t* rtft Pro I4 o c oo o o otath, oarXiodi* NolteSWD t'14 lniection Well Pad I I I I I I I I I I I 1 I I t \ I I I I I 1 t0l Sffi*'BtA'"BPS- ;catat I I I .-_\-- ,\\ uilfitt0tt I I I I 1 t I 5 Shauna DeMattee < TuesdaY, November sdemattee@ ProgressivePcs'net> 18,2014 9:54 AM From: Sent: To: David Pesnichak "-., iffi;*D 1-14 - site Plan/ LaYout Sublect: Hi David, ilffJffi;gl,t,::;Tg"1ffi if, ,l#;;:1fif; JhlI;TrH.:liilriil:}fi trI;:TiiH',H',.fl '[heNol'fe - Move 4 injection tanks into the existingNolte pad containmentn onto Nolte pad - Move injection '*f,T";;*lo'"a'pptt pad and move lt ( ?riili:',fi,iitri;:$H:r'HtU=n*i:rfls:igd+i}l,I#X,hif*:.ji**::"'"''rx ffi;ffiiil'':"111;.T;tilil,11fiH".in.m'rouJes "'-:iflj[Hitfi:tr#llH;;Nor^t-e area' and auow water haulers to ur ;*T#:ffi :,.illffi ffiiTiHxfrtx:,;:iir'*r*u'H'hllH:i'?ff i""'l*"i"r'" I can Bet you the rest of the information that you requested rater this week' Please let me know if you have questions! Shauna Sent from mY iPhone onNov 13,2014, at 9:15 AM,..David Pesnichak', wrote: Hi shauna' ' ., rr r-"^rit qa'tion 4-106 0utlines the process for ,nregardstothemodiniil:!^:#Hl:,h:"I:'lr#i:ltfu*:xffi lii'^0" l*;rifr qlhil,'tr*h,ffi #Iild{#*t*tr**[fr n'*:*" ?:ilti'j11il1'i'.:fffiilH,flilflH;";;ingcrransed i"'tl'ii"'P'"n-Y:: puttogether a ffiffffi**$ Io nt"," n."'y'. *.,;r ,xlilff :,i:N'fiI ;;; ;.;" tor d m e so Permit with the ne 1 for the Substantial Amendment at that Minor Amendment' tf that changes' we can go over the process ::ria. centrarized Facility, you will want to reference the following definitions: oi,andGasDriins*:iJ:$:fi il#?-krii-d,11$;:Y,';#i#:llffi'il'.1"ifr*, [$x##dgfi,ffifi*ilqi[[fiIfi ff* with a total volume;.;:,il;;-clude all r ;;; ;t wells' These facilities ":" ::". ;, -ater tank volume and cuuinss :t -:l:::::[X fi::lffi rhekevstothisd.ef initionarethe"i'#,Ii'T:A*jj*ljrt;j|,fat;er,',"l1Tl;1"'tment il; ,; !9;; not include anv other "'t-::".'i,,o] i'ig''*tttt itnpo H-;; J,oite" (lavdown vards)' emplovet facilitY, etc') ln additions, the following definition may be applicable: *,rumglpfi$pgfggl;-,*ffi fi'*r*:rrir*l' o'r""i*ilr,,, of the well through hlor auttv " . ' l. .-^. .*,^ thev are a use-by-right in all zone districts' ff,** ri*:' ProPosed uses fall I hope this helps' 'narisoo and how the amendmtlt ttl'T:t^Tit'::::ffi;i" prease ret send me the amendment:I[1il1::1*iltt}...ilin'l'i;o on our ne) ii,ii. *' rr"' y ".:' l';:l'." l:,:?HT'ii il.;; n a n d Di r e cto r th e n meeting and shal Thanks, Dave David Pesnichak' AICP Senior Planner Garfield CountY .- -11ent Department CommunitY DeveloPt 108 $h st Suite 401- i",.*".0 sPrings' co 81601 2 (e70)945-8212 <image001'Png> From:Shauna DeMattee Sent:WednesdaY, Novem ber To: David Pesnichak SincerelY, 12,20L4 5:56 PM ::f::;1*TijUfi' 1-14 - site Pra n/ LaYout Hi David' - L^^inc "ou could give some clarification on a I hope this e-mail finds you doing welll I was hoping You cor" couPle things' 1)caerusisprop:s';t::HjllJff,[titlllil',Fiff}l,{':'}"'k;,$''I,:.1],f'["'.,.l"' Garfield Countv Llno:s1 1--'::^:;;,,t" to move to iniectio.n *"'l.Y::.;; *inimize overall ;SJ;;,,',.:llli*i[[',:'1,:TH$:ffi i:l'il,iil-,,i1l*"'r'*"'minimiz.r,. ., i ., ",. " i* I *}H,'"'* jl *;;,[. i i d, * #il*o,;l.3;.1 f'Xl*:: .' "' n' disturbance as well as minimize tnt lll;';pp.i ot it vo' , ffi : f . ;,,'ffi Jffi ff lrfi :iliil j HllI i ift i,ii:ffi : Ij:: :I - H:ril:i,ffi :x[ij";ffi lf, fl1ff :r:::tH$[r:i,Hl5::;:f ill:::"' t.*i;;; Form 2Afor this location w ,.qri'"*tnts for this' lappreciateyourclarificationwiththislFeelfreetocallmetodiscussl :h?[ffi #f"Y'l$:'i' p m e nt/ Re gur ato ry An a rv st ',13:Hil:, :;?:1,'lli'"''o'oo'u fi,I ffi ''oli3'u""'""'"'' n'u 3 FIGU Caerus 0il &G as LIC SCALE: l' - 60. nATE: tl-10-14-OnlYA'l eY' l'ASlTEPLANFOR NOLTE #I 4-796 SECIION t4. I7S.R96w, 6th P'M'.t'{sE t/+se 1/4 Erisling Fencc -a'a-* ExisliaQ Diwsion f\istin0 Colch Eosin Bcm \..8I5in9lc Scpcrold t$ds 0vr:y' fl Arod Eisling Filce Rerm Cohtoiamenl ProductiM Equiqmcht i--" i €dgc ol oislurbonca €dgc ol Pod ond Po(ificld ll 5A-t J o ir sg-tJ o iillr- t I o i45B-14 o t43C-14 o f44A-t'l o f44B-14 o r44c-14 0 #s't{o l-1ao oIrJC-1J o r,t 50-15 ?fiiii:ii ,i,r!t* 0,,"n olllA-24 o fllB-24 o 11 lc- 24 I \ Existinq Paftd Rood EdEe Pad \-;-----z lnJccai@ Skid t t )l=-----:-Prod!ced fonks tl lliExccag l,loleriol \ \)\?Cilloinfranl $tllolq tdqa ol Distutboncc I I 0rcindgc D;lch Colch {j! I Bosin \ 1 Bosih /\ Eilslioq Access ffi 8o, Cul@r I (,0'r,0') UINT AH CO FINISHEO GRAOE ELEV. Ar ltJc-tJ Loc. srAXE - 5088.1' 85 Sc mo Rood tdqc ol Dislurbancc Nolte SWD 1-14 Smalllnjectt on Well SESE of Section l-4 , T7S, R96W' Garfie ld CountY, CO 1. C a e r u s' p r o p ose d m o d if i cati o ^ l: li"'i:xJ:$ ?JJ:|,| :tt#ff; tt'J['t f o r th e subject well complies with all requireme}ffi; ir..'" .orptehensivep^lan 2. rhe propo"o ;il;;il" dols not conflict with tn" i"f,:';'J10,11-,*t''nment 3:H[:l:*u*;*r".:;ws,".*.#',[1iu::':],'J'%1t'[,en,rhe p ro p o s e d o " JI" o fr" "l-'i1 ::1' i f:,ffiI ;i: lf:''"'X'"'lio "' d ev e I o p m e nt to 4. inlt*'ttd facility layout does nc adjacent property' not change the uses permitted' This location will s. The propo"ot'llait':11"" does not change the use )' ;u;. used for injection' -^ve the tanks."oll,".,:,:",..,:Ii:;t-"-|",.existins well 6. Since Caerus is ProPosing to l: pad, this "t;i;;"t does not require any easeme i. l[:ffi:x#,l'ffiT':'!i :$tfl'.'Jffi#qf.;:C:T#::"' 1', exceedins t J *u*i*um required'Jli ill?ffl,illil;;;odirication wlr not expand shown on trt'l ""o"l t't" plan-(Exhibit E)' the prop , ffitrj**::6:i ;,ifi,,:::':i." a mou n'i o*he rorrowi ns: a.o*"r"ifii.oi.r."aopenspact,.orientationoforiginallyapproved b' Size' lighting' or change in the locations ot signs s in Table 3-201-' c' AnY district dimenstonl ITCIB Garfie nu tyCold PAYMENT AGREEMENT FORM UNTY') and Property Owner ("APPLICANT")agree as follows: GARFTELD COUNTY ("co to the an app licatio n for the fo llowin P L. 2. 3 Land County Use C h it MinorPerm The APPlica nt understands and agrees that Garfield CountY Resolution No.2014-50, as amended, e stablishes a fee schedule for each tYPe a pplication, and the guidelines for the administratio n of the fee structure or scope of the The APPlicant and the county agree that because of the size, nature proPosed Proiect'it is not possible at this time to ascertain the full exte nt of the costs Fee,established for the aPPlication' Pro.iect, and to The APPlica thereafter Permit nt agrees ad ditional costs to be to make P ayment of the Base billed to the involved in Processt ng nt agrees to make additionalPaYm ents upon notification by thethe ApPtica nt. The APPlica CountY,when theY are necessary, as costs are incurred 4. The Base Fee shall be in additio n to and exclusive of anY cost for Publi cation or cost of issioners for the consulting servi consideration of ce determined ne an aPPlication o r additiona cessarY bY the Bo I CountY ard of CountY Comm staff time or expense not covered bY the Base Fee' lf actual recorded costs exceed the initial Ba se Fee, the APPII cant shall PaY additi onal billings to the county to reimburse the CountY fo r the Processing of the Proiect' The APPlicant acknowle dges tha t all billing sha llbe Paid Prio r to the final co nsideration bY the CountY of anY Land Use Change or Division of Land to pay all fees related to this application: 303 565-4600I herebY agree Bitling Contact Person Billing Contact Address: CitY:Denver Nighte ngale Phone: state: CO Zip code: Natasha 600 17th Street,Ste 1600N rusoilandg as.com 80202 Bilting Contact Email Printed Name of Person Authorized to Sign 20 -/ re) l- (Date) ITDEXHIB 600 17th Street, Ste 1500N Denver, CO 80202 Geffield Countv LaJr4 Use P-e.rFit Appllcalion a a o s -4 OWNERSHIP - EXHIBIT A.3 e o E Caerus Oil and Gas LLC 600 Seventeenth Sgeet Suite 1600N Dcnver, CO 80202 May 27,2014 Ms. Tamra Allen Community Developrnent Department Garfield CountY 108 8'h Strect, Suitc 401 Glenwood Springs, CO 81601 REr Agent Authorization for the Proposed Land use change Permit Noltc l-l4SWD Garfield County. CO Sincerely, Company: Puckett Land ComPanY Name: Eric R. StearnsTitle: president Dear Ms. Allen, This lener shall serve as notification that Pucken land Company ("Puckett") authorizes Caerus piceance LLC (.'Caerus") to act on behalf of and represent Puckett in mafters related to land use permitting for the proposed Nolte l-t4 SWD located in Garficld County, Colorado' PleaSe contact Caerus if you have any questions or concerns' or if you require additional information. caerus' Land Manager,-Aubree Besant, can be reached at 720-880-6406, or at Sqbrce @cacrusoi landgas.com. f i A ft 'r. Illrlfl Llf, I lt{ Uil, l{81#f l{,1' f if. had t,'l I ll IPic.ptlm$: tO737306 igl:Oti 0l:10 50 t, Jrr, ntb.rrocI ot I fiec F{ t11.00 Doo Ecc 0 & @pF:EtD COJ{ty CO Purauant fo C R'S' S3g-30-1?2' Ehe undersigned execuE'es thj.e StaLernent of n"tf.o"ry on behalf of - pucBett" LqnC-Company company, general -pttE""t"hip'- regiatered limlLed llability partnerohip. regietli"a ri*iiea IiabrlIry limieed ParLnerehrp' Iimitedpartnershrpassoclation,govarnmentagency'Erust'or other), an entiEy t"tr,"t 1-rtt" an itttividuat' capable of holding sicle to real propeiiy ttnt "EnEity")' and sLates as foilovrs: $?ATE!!S.:T OLf ar'rrEoaI:Y narne and/or Pcsitlon of insLrumerlts conveying, citle tso real PropercY The name of Lhe EnEitY is and ls formed. under Ehe laws of Pucket Land 3r The reailing address for che Entity 1s 545 s cS The e)r-ecute affect. lng the Person encumberlng, on behalf of auEhorized to or ot,hervtise Ehe EnEity is The Ilmlfaeions upon Lhe auLhorlUy of Ehe pers-on named above or holdirrg tn. p"l:'tf"n deacribed above Eo bind f,he Entlty are as follows: -l)n-e-Hglrdred Thgrsand DoIlArs (1 no liml!6cloo9,'lfone' ocher matters concerning the manner in tthich the EnLlLy deale HiEh any lnterest in real properLy are: -...-* lI no otb€r naLter,ieave uhio 6ecl bl BXECU'rP.D chle *[1flda]' o: augUAtj:--._-.-.---.-_' 20-L1 S lgr,arure ' NamclEyped or prrnted' --B'-- E'.."Pg-gket!- rltr.c (r: anv), Boald-ch"]:*1! sr'^rB oF *Co.Icr-adp -_*_.-)I AC cOuNrY oF .,ArAhnhpe.,.- **.) uitncas mY hand and cfticial seal My comiEBlon explrea tsErl.l 05/og Mv Commtstlcn f$lros PUCI' . ,' L,'1ntD COL,iPAN'i 54Ai; ;i i;;ri:9,., 9t., Suita 25C: Gieer ,r'i'-'ti ';illaEa,CO 8G1 11 F"qYMOND S. ANDERSON NOTi liY -tlBLlc S'iA,'E '.F CCL()RADO '' a PDC VIA OYI,RNIGHT DELI\.FRY February I 1, 201 3 Ptrckett Land CompanY 5460 S. Quebec Sueet. Suite 250 Crceng,ood Villagc. Colorado S0l I I Atrn: Mr. Rayrnond Anderson Land Manager Rc: Request for Conscnt to Assignment Dear Mr. Anderson: C)n February 4. 2013, PDC Energy, Inc. and certain of its affiliates ("PDC"), as Sellcr, and Caerus Piccancc LLC. Caerus Washco LLC, and Cacrus Operating LI-C "Caerus"), as Buyer, executed a Purchase and Sale Agreement pursuant to which PDC is selling, ilixong other assets. allof irsPiceanceBasinoilandgasasse.tstoCaeruseffecdveasof January 1,2013. In connection with this transaction, PDC is a.ssigning to Cacrus all of its lcascs and other contracts relatr..d to the opcration of such assets. The closing of the transactiort is scheduled to occur on March 15. 201:1. Among the assets to be assigned pursuant to the purchase and sale transaction are those. leases ancl confracrs idcrrtified on Exhihit A attached ltercto (tltc "Pl'opcrtics") whiclt rcquirc tlte consent of hrckett Lind Cornpany to assign. The purpose of tlris correspondence i5 to fo;nirlly rcqgest the ccrnsent of thc Puc'ttett Land Cornpany to the assignmcnt frttm Pl)C to Caents. of pfjC's intr'rest.r in the Properties. I h&r,c cnclosed copies of all of the icases and colltracts tbr your convenience. lf thc foregoing is agreeahlc to you, plcase indic:atc your conscnt b'r cxccutrng in the: space provitlcd heltrw, and returning to my attention an exccuted original hy U.S. ntail. If you have any questions concerning this matter. please corltact me at (-103) 83 l-3918. Sincercly, PDC Energy,Inc. ' Edward R. Koenigcr, IIl Land Manager-Western U.S. Granting consent to the aforementioned assignment: Puchett Land ComPanY \ 13v Nanre: Title l' lti' t' Date:.a 2 EXHIBIT "A" coctolg?g surface Lrasc, Puckeff Land cornpany and Petroleunt Devclopment corporation 10127tzwg LEASE cosL00029 Puckett Land company (crantor), Petroleum Deveiopment corporation (Crantce) 4118t?Ol2 SURLS PICEANCE. not recordcd COC00403 puckett Land Company (Crantor). Petroleum Development Corporatiott and lvlarathon Oil (Grantecs) 8/112007 SL'RLS PICEANCE cocol 173 Puckett Land company (Grantor). Peuoleum Devclopmerrt corporation (Graritcc) 21517010 SWD PICEANCE Disposal Puckett Larrd Company (Grarrtor). Pl)C Energl'. Inc. (Crantee) l2l2 0/2012 swt) PICEANCF. nr:rt recorded AMENDI}1EN'I' 't'() WA'I"IL tll\P()SAL WELI, A(;I..EEI\l l:N'l' S I \'fl: OIr C0I,ORADO COt"iNTf 0f' G A H FI I: t't) II[I(]KE'tT I,.{ND CON{PA\\' K\OW ALI, tUIiN BY THDSI' PRI':SI]NT PD( ' Iinerg.r , Inc' By':-' ,'b i:rrrt*r R Scil V rcc i)t'';sii.lritl Lirlld I l ) WHEREAS. cftcctiv.. tlrc 20"'day ol'Decentscr'. i0l2 PUi l":I l-l L'{ND COMPANY' A coloraclct cr)r*,ration (''Pucketr") wittr u nralling u,Jdrcs: ol 5d60 South Qucbec Sli'cci' Suite 2'50' Creenrvrr':d Viliagt,. co g0r r r . exccurerr a wrrTEn t)r.i,()sAr. WELL ,A,GpgEI\tLruT ("Agrcentr-'rrt")' in la"'ot' of pDC Eni:rg-y. lnc.. a Nevircki corpolntirrn ('Pl-)c''l wirh a nrailing atldress ot' l7?5 Sherrttan Street' Suitt .1(.)(10. l)errvu. C0 8020.1: and \4',1.t[REAS. ir i; the dcsire <il'rhc ;:irrrius helero (r antcncl P:rt'irgr:t;h -l t'l llic trl'orcsair! "\gicctnctt: lt' clarity tl:tt tlre l)isppsalFcc is pflitl nlqn{!rlv:ttrd thcruby irgrceing rvith tltu llt:gtrugc in ParagraFlr 3' ivow. THEREF'oRE. rhq. unrjcrsigncd p;rrries agree lhilt thc Aettentenr ir hcrch)' amcndetl 'o i:t''t'idc tlrar th,-'Disl-'osai Fee ltletttiotred in Paragrlph"l ir: Paid nronthll'' Tltis Atnen'Jrncnt shall lr bitrding lor lll ;rurpuscs oll thc l'rnrties hct'elo' their ittcccssors' h*its artJ irssiglts. i Prt s' ' gtt i..{,'d11rir I+,,IInttt:t 7r1l6p j r/t,';t r ) ACKNOWLF,I.)CIVIENT s1",\'il10F c0L0RAI)0 cor"rN'tY oF*/ , .c*_ 'l'hr lirregoirrg instrunrcnt was acknou,ledgeclhciirrc nrc this -( "rlat'o|i t.,-,:i----_- 2{}13 b1'Eric R. Str:arns' Presiclent rll'Put:kctt LtrnclC'ompallv' a (lolorado Cttrpuratiott' on hchall' nl thc ctii'pcrt,11 itlr. M1,cr-rnunissiou cxpires . --./l r,/t i \\/itness rny harrd itnd rcal ___:_} Norary'f')ublru i/ry 00r'r,igrit,rr STATE ()F C(')L()li r\ D0 SS F.,AYM{..rtrlD S /rt lDEfi S(;N l,Jt)' r:^.i .'/ f:iittLlC .51.':i E ,.ir r;.ilirllAD(. SS COI,NTY oF TheliriegtriItgittstruntct]l!vilstckilrlrtledgccllrclbrclncthis 201.i hl Jarues R..Sr.:hlff. Vicc Presidellt Land ol'Pctrolctlrtt [)evelt:lrttlellt, dba Pl)C Etrcrgl'olt helulf ()f tl'le crlrporati0n. N'll ctlrrtrnission expircs \Yit.ncss nt1, ltnnd artd seal Nt tary l)ublic /& - waTEB DISPOSAt WELL AGREEMENT 'rHIS WA'rER DISPOSAL WELL AGREEMENT (this "Agreement") is made and entcred into as of the," r. day of December, 2012, between PUCKETT LAND COMpANy, a Colorado corfril-tion ("Puckett"), with a mailing address_of 5460 South Qucbcc Strcct, Suite 250, tjreenwood Village, CO 80lll. and PDC Energy, Inc" a Ii"rada corpoiation ("PDC"), with a mailing address of 1775 Sherman Street, Suite 3000, Denver, CO 8OZO:. Puckett and f'OC are somctimes refcrred to herein individually as a "Party" and collectively as the "Parties'" RECITALS: A. puckett is the owner of thc mineral estate underlying lands dcscribed in that certain Oil ancl Gas Lease dated Novcmber 15, 1999 recorded in Garfreld County" Colorado ar rcceprion number !1556552. Book t164, Page 400 (the "subject Lancls"). B. PDC desires ro drill a $,ater disposal well (the "subject Well"), located on the subject Lands, in the sEsE section 14, t7S, It96W. to dispose of vvater prOduced fronr r:ii and gas wells on and in the vicinitl' of the Subject Lands. AG&!:lrMEM: NOW, THEREFORE. fbr and iu consideration of the premises and other good and valuable considcration, thc sufficiency of which is acknowledged. Puclcett and PDC agree as follorvs: i. Granting Clause. Puckett docs hereby grant, lease and let uttto PDC thc ponion of tn.@ t-anOs. located in the SESE Scction 14, T7S, R96Wlbr the irrpot. of drilling the Subject Well, and of disposing in the Subject Wcll watcr prniuced from wells producing oil andior gas located on and in the vicinity of the Subject Lands. Z. Term. The term of this Agreement shall be for a period of twenty-five (25) years. commencing ott January t. iOl3 and terminating on December 3l' 2038' unless sooner tcrminated by mutual agreement or as herein provided. 3. Disposal Fee. As additional consideration for the rights granted hcrein, PDC shall puy pu.f.tt-thc sum of te "Disposal Fee"; lbr each barrel, oi portion of a barrel. of water injected into the Subjcct Wcll. in monthly installments, wiihout deduction or sct off whatsoever. Such Disposal Fee shall be due and payabie on or before the 20th day of the month foltowing the end of the previous *onih iuring the tcrrn of this Agreement at the address for Puckett set forth herein or at such other place as the Puckett mey designate in writing. 4. Rep_grts. PDC shall lurnish Puckett with each of the quartcrly Disposal Fee payments a report or reports in sulficient detait showing thc number of barrels injected into the Subject Well for the prior quarter. lr -i. Ritrhr to Audit. Upon reasonabte noticc frotu Puckett. PDC shall perrttit puckert or its authoiiied agcnt to irrspect. auclit and exflmitte during norttral husiness lrours PDC's books und accourrtilrg recortls rclating to the Subject Wcll to deterntine lhe a(:curilcv ot'the rcports required lo hc provitled hereurlder. 6. Dritljtg_Igd. 'tlrc Suh.iect Well is locnterJ on the Noltc I 4-796 drilling plcl o1 tlr. Srtri...,t Ltnds on wlticlt t:ther u,ells u'ill trc t:pcratcd hv PDC at'e lc hc iocatcd. Puckctt agrer,s thar Pl)C u,ill ct'rntinue ro lravc acccss to and egress frtrrr tltis drillilg pacl to sen,icc and operate thc Subjccr Wcll altd tlte othel wclls located thereon anO ttrai rrorrc of rlrc payrnelts1;rrovittccl hcreirr shall appl.v to tltc use ol'Prtckert's surl'at:e hy Pl)C ltr c:rrrrduct its oil and gas opcrations 'lnd activitics on strch drillirrg patl ilr on ille Strbjcct Lanrls. 7. Equipment. All equipntcnt und r:tltcr personal pt'opctty of Pl)C which lre insrallcd an<J maintainecl in tho Suhjcct Well hy PDC slrall ul all titnes retnaitt lltc properry anrl rcsponsibilitl,ol'PDC. arrd PD(l mily ilt all times attd front titltc to time install or rentovc any such eqtltpment or pcrsonal prop(:rty. 8. Conrplianc.e_141r!/,aws. PDC shall carry on PI)C's opcratiotls hereundcr in a careltl anrJ wtlrkrlanlike n'liulner, ancl in accrtrdance rvith all laws. st;ttutcs. ortJinarrces. goverrrn:crrtal rlrders and regttlatir:rts antl covcn.lrt1.S. cottdititlns lnd i'cstrictions uoverning tlrtr sanre . All nr:ccssary licenses artd;:crttlits requircd lbr PDCI's ollcralions shall he obtained hy PDC at PDC's sole e,\peltst'' q. Lfffl-S1fpj-tigitli-qg. PDC agrcLrs to irrvestigate. del'entl. irlder:rnify and hold Ptrckett Iagtrlr's.s l'rom anct rrgain.st arry ancl all lr)sscs. ditntages. liabilit.v^ clitints. dernancls. ohligutions. c()sts. charges antl expcnses (irrcluding reas()nllblc uttorncl"s fccs irrcurrcd hy Puckctt) irnd causes of action of whatsocvcr chlracter which Ptrckctt ntal grdure. sustairr or hc sub.,ected to on account of. arising out ol'or in arty u'a1'cottrtcctcd rvith Pl)C's (rccupuncy. operatiou. maintenancr'. onjo)'rltctlt ol'use of'thc Subjcc: \\'cll ancl .suhjecr Lands rrnder thi.s Agrcrement. irtcltrcling. bttt ttot linritccl [o. thr)sc iirisirrg i'ronr irrly cotlt{lntin0ritrrr. prrllrr tion. cnvironrncntal datttage attd clcattttJr. lrrss or dalnagc te pr'rrl)crty ancl loss ol'use llrereol'. or tor bodily iniury t.o ot'deittlt ol'alt5'Pcrsons (including. hur not lirnited t(). elnplo),ees. suhcorttract()rs, agcnts. and tellallts ltereto). 10. lnsl"rrance. At all tirlcs tluring the tenn (-)l'this Agt'cctttcttt. PDC rhall nrainrai6 cgnrpretrcpsivc gencral liahilitv it'rsurance. witlt ctlrttrcturl lilbilitl' endorsentenr insuring thc indemrrity hereinal'ler set l'orth. for thc lrcnel'it ol'Puckett agairrst clairtrs I'or personal ilt.iurv rrr dcath or propert)'dantage in ttr ahout the Suhject Lirrrds wirh colrbined singlc linrits ol'Onc Million Dollars ($1.000.000) in lhc cvcltt t'rl' bodi!1.'in.iury or death of any rrurnber of pcrsons in any onc accitlcnt, ttnd includittg hroad torm propcrty tlantage coverage. l l. 'ferminati.on ol-Asreelncnt. (i) tlv PI)C. Pl)C rnay. at PDC's option. at any tintc,surrcttdcr und rernrinal.c PDC'.s rights under Lhis Agreenrent and shall be released thct'cupon ) fronr all gbligations tltercafrcr accruitlg with respect to tllc Agrce'ntcnt' except for thc indemnific:ttiolt provisions of Section r) hereof' Tcrmination rrnder tlris Agreement shall rrttr rclicyc PDc from rhe pa1'rncnt o[ un-v sulns thetl tlttc. to Puckctr tor the l)isposal Fee or from any cllim or datttagcs ;rrcviotrsly accrucd or then acct'uing against PDC' {ii) By Puckett. Puckctt may ternlinate this Agrcctnirnl for PDC's clcrfault clcs,:rihc{ b-1,* utrrotl writtcn n,rtice t9 PDC specifying' in rcas'rnable cletail. lhc nirrure of such dcfault. antl Pf)C's l'ailrrre to cul'e its dcfault withirt tlrirr),(30) days o[ receipt thereof. 0r in thc cveltt thilt the ttattrrc ol thc dcl'ault is such that the.salne cilnllot reasonubly hc cured rryitltin said thirrl'' (3()) dily Pcriod and PDc.shalt not have colnnrenccd sttclt cttt't'itnd therca[tc'r is not diligcntly prosecrrting thc salilc lo conrpletion, in tlre evL'lll that Pl)L': (A)Fails or relitscs lo pay, whcn dttc. ihc l)isposal Fee' Faiis to subntit rvltcn due the peritidic repol'ts conccrrting thc(Bt Disirosal Fcc (C)Failstoiimr..lycornplywithallyolherprt:visionol.this Agreentent ' (tJ) Faiis tg inicct witter int. the Suh.icct Wcil lirr it pr-'riud gl' twelve ( I2) cortseculivc rllottllts' upon tcrnrination oi'tlris Agrccnrcnt it:>hall plrrg and ahi'rndon tlrc Subicct. \\'cll in act:ordirnce rvitlt applicahlc rttlcs and rcgulittions' l?. Nr.rtiucs. Nlrices urrder this Agreellrlrt shall lrc tttacl,-'irr writing arrtl silall he 6eerrrecl eflectivel,rporr rccc:1.)r bi'thc Part.v to u'lrortt the rtt-'lice is clit'cctecl irs follr"ti's: Pirr"kcrtl: Pttckett Land Coltl;ratti' 5460 S Quchec St.. #25t) Ertglewrtur.!. C0 8()l I I Attn: l{aynttrncl S. r\ndetson Plrone: (.10,] ) 7(r.1- lO().1 Fax: i j(J-t ) 76_i_ 1040 E-Mai I ; rny€) puckcttl and.com PDC PDC Energl'. lnc. 1775 Shcrntatt Strcct. .Stritc 30(10 Dcnver. C0 ti0l0.1 At(n: Jantes R. Schaf't' Phone: (103i 860-.5800 Facsirni le: ( 303) tt60'5838 E-Mai I : j i nt. schat'l'@ pdct'. cottt 1 ,lf Each Party rnay change its adclress tor noticc purposes by so advising thc oth(3r Party r:f strch fact in wririrtg l-i. Silir-qAqreernelt. Tltis Ag rcclrcnt scts torth ttte cntire tttltierstattcling irnd ilgreements of ttle Partics. 1'his Agreelllent instrunretit exccLltcd by btlth Parlies' rnay only bc antcndciJ hv ir tvritten i4. AssiUtttttent: Sttcccssors itttcl Assigrts' T|is Agreetttcrtt may noi hc irssigrrcrl. in ,rt,,t*ffi'ifrL u>, *i,r,., puriv wiihrrut tlre prior writteu corlscrrt ol'thc othcr purry. which..',,',r.,it shali not hc unreasonatrly withhelcl' This Agrccnrcnt shall be binding on thc Pfirtics alrd. suh.iect to thc f'o[egi-ring. on tltcir respective suucessors artd itssigns. 15. C'vcrnitts Ltrv. 'Ihis Agreetttenr shrrll hc govcrnud hy and irtterpreted in acc,rdancc with tlrc lnws of the .Statc r:f Ctrloracltl. 16. ll\ wlrNESS WHEREOF. rhe Partics havc cxcculcd this Agrct'ttrent as of tlre tlate l'irst above sci fcrrth. PUC KTTT I-A\T)COMPANY' i, B,',: Naltte:c R. Stcarns Titlc: Prcsiclctnt Pi)C ENEt(C\'. INC By: N Jarttcs R. Schir Ti Vice Presidetrt d 4 A C KNOW I,IiDGIiI\{ E:iTS STATE OF COI-ORADO COU|{TY OF ARAPAHOE Corpolate Acknowlcclgnrcnt Notlrl' Puhrlir.: in itttd lir: llte stlte ot'(i:lorado t ---)L1t ,.I $ tt The tbregoing instrrtnterlt wils at:knpwlerjgecl belbre lne this tlal rll' '204' by Eric R. Stearns. as f'rcsidettl of Puckc'tt Lartd Contpatty' a Color'do coprtt'atl()11' on behall of tltc corPorirti0ll. Notary Puhlic itr altcl tiri llrc stlltc ()l'Culortrdo Prilltc(l Nantc My C'onrrnission ExPires: .---.0,. LI STATE OF COLORADO cl'r'\'& COI.JNT\'0t? t.)ENVER Corporate Acktrow ledgrtttttl 'l'hr. li-,regpirrg instrultelt \rAs nc'k1l6rvledgcd belbrc llte thi'i,111" da-,- ol'-0'i::'j:-'-- 20i1' trv Jarnci R. Schaff, as Vicc Prcsidcnt Lalld o['PDC Energy' hrc l h\clertia ct)l'[]()r'aii()l)' (]rr hchalf ol' the c:orporatton ) )$ ) Priutcd Nerte ') r-, ---, -)tir:; , .) My (iornnrissitrn [-'.Pires: ) -o- Jc TAR v$o rcLpuB OF My Coour$ssar ExPrc 02/23f20t5 Land ComPanY June 4, 2013 PDC Energy, lnc Attn: Russ Koeniger - Land Manager - Western U.S' 1775 Sherman Street, Suite 3000 Denver, CO 80203 Re: Consent to Assignment-Caerus Dear Russ: Enclosed is one original of the Consent to Assignment you have requested reflecting our consent to your assignment of those agreements set forth on the attached exhibit to the letter lf you require anything additionally with regards to your assignment to Caerus please advise' SincerelY Raymond 5. Anderson Land Manager Enclosure /t ! j; r FTJE Land Company January 8,2013 Via Couricr PDC EncrgY, Inc Attn: Russ Kocnigcr - Land Manager - \\ cstern I- 'S' 17?5 Sherman Street, Suite 3000 I)enver, CO 80203 RE \\'ater Disposal Well Agreement [,ocat.ior.r; Nolte i4.796 Pad Torvnsbip l South. Rauge q6 \\'es! Section l4: SII/4SI1/4 Garfield CountY, Colorado f)car Russ, Encloscd please find one original of the referenced agreement reflecting Puckctt's exccution and notarization. As relerred t. in yorrr letter of f)ecemher 20.b rve will look forward to a coPy reflecting it heing recorded' Sineerely Raymond S. Andcrson Land Manager Enclosure I :,,/ (&[fif*ev r - EASIERN REGIOSIAL HEADQUARIT R5 PDC Enrr6l 1:lO G.nrtl. Boolrvrrd I P.O. Bor 2G Brldgepod. w6n Vtrglnla 26330 (3041 842-3597 f)eccntbcr 20. 20 I 2 Raytuoltd S. Anclerson Puckett Land Co. .1460 S. Quchcc Street, Suitc 250 Greenwood Villagc. Cttlortdo 801 I I llc;Water Disposirl WelI Agrer:rtlcnt Nrllte Trirct Carf!cld County. Colorado l)r:ar Ray. I lrave cnclosed tlre rel'erencerl documt:trt signcd and notarizetl h.r- PDC. Pleits( ask Eric to sign Irnrl havc hi\ siBnnlult' notariZcd 0rlct leturn onc griginal ttl ttt lor rccording' t vrill provicle yotr rvitlt a rcctrt'clctl ctlpy when irvailahle' l'hank you lirr' .vour help irr tltis matter. .Sinct:rc'ly. PDLI tncrcY. Ilrc.) -'| Edv.rnfur It. Ktrcrrigcr. Ill l-and il'tanagcr- Wcstent Ll.S. Ene losure: CORPORAIE OFFICE: PDC EncrA/ 17 5 Shorm{l Stla.t, Sulla 3OOO Oonvcr. Colom& 802O3 (303) 86G5800 r.t Minersl Interest Owners Township 7 South, Range 96 West Section l*ElZSEl{ Garlleld County, CO hrckett Land ComPanY 5460 S. Quebec Street #250 Greenwood Village, CO 801I I II cofi ?tr4 pAcEElg ::. ";ttafsde?tlt{!.trcr-P."'" ilft tl 1S${} r;Il- l!i l, xL I;ltr.tfif," iCiJi'JIY [!":,].,v' liit:iLL t'..,'itt l';l' i'lil:'' oFsASS I NT (Ga County, Co r This Assiqnment, Bill of sale and Conveyangg- (this "Ass5.gnment" ), dated effective as of November ? t ' 1990 at t2:00 midnightr-fo"if time ltte "Effective Datpfr-i: fIoI eriirti" ni[rrtield Companyr acting through -its ARco CoaI company ei;i;i;r, a Delaware cbrp6ration, -whose addrese is 555 seventeenth street, Denv-er, colorado 80202, Attn: Land Department i;eiiigno!"), io-p"ctetb Lind coTPaly, a colorado corporation' )goo ni.t,ui!-on Avenue, suite 130; DEnver, Colorado 80237 ( "Assignee" 1. For and in consideration of the sum of one Hundred Dollars ($lOOl-."a-ottrei go"a and valuable consideration, the ;;;;ipa ii-,a ""riiii"n"y-oi which are hereby acknowledged, A;;i6;r-does hereby siII, assign, rransfer, .conveyr_6e! over, d.iiilir, r"rr,i""l-;;i.;;;-ind foiever.quitclaim unto Assisnee the following ."""i1 i;;;ah;t "ritt, alI rifhts incident thereto (a1I of which are herein called the "Assets" ): l.AllofAssignor,sright,titleandinterest,.in and to the fee,-.in"i"I an6 real pr5perty interests, including tii" *it.i-rigt[",-ii-iny, in the ieai property located in- Garfield county, colorado as more specifically described In Exhibit A (the "ProPerties" ). 2. AlI of Assignor,s ri.ght, title and interest in and to aII personal -piop.tty, Suildings--and.improvements located on and appurtenant to ttre lioperties-described in Exhibit A (the "Improvements" ). The Properties and Improvements may collectively be referred to hereinafter as the "A66et6 ' " 3. AIl of Assignor,s right, title and intereat in, to and under all agreements aid contracts which relate to the Asgets (the "AgreemenLE; I including without limitation alI rights in, to ina undEr and aI1'obligatiois and liabilities under the contracts and agreemente lieted on Exhibit B. TO HAVE AND TO HOLD the Assets unto Ass5.ginee and its successors and assigns forever. Assignor also hereby grants and tranefers to Assignee its successors-ind .""igns, t-o [tre exbent so transferable, th9 benefit of and ttJ iigtI to enforce the covenants and warranties, if-;;t, *rr,i"rr es-ignois are entitled to enforce with respect to the Aseetr .guinst-Assignors' predecessors in title to the Assets. ,), l\0 BC0l(?*Jq PAGtsrc AstothelmprovernenEs'ASSI-GNoR^EXPRESSLYDISCLAIMS T\D NEGATES ENi VNNNEN.IY AS-Tii-iiTT-iOHOTtION OF ANY PERSONAL ?RopERrY, EQUTPMENT, lr11yR9:-A$-rieMs oF MovABLE PRoPERTY coMpRrsrNc Alry ilir'or, rHe assEis,-il{CluorNc (a) A}lv IIIPLIED oR ExpREss WARRANTY oF MERcHANqeiiit'v,- itt-ast iupLIED oR ExPREss r.iAR&ANry or ruiNeii ron e po*iiiuiAi iun'pose' (c) ANY IMPLIED oR ,xpREss wann ur.rii-oi LoNrorua:ti' i6-l'ropel,s-on- ierlpiss or MATERTALS' (d) ANy RrcHrs-6r-issicNee uNisR-#piic-Aslu sTArurES ro CI'AIM Drt'IrNUTroN or coNsrDERArroN''iip l"l-ex1--cPtM BY PURcHASER FoR DAMAGES sncausi-iir-peFEcm,'-yriiinin' xt'towll-oR uNKNowN' rr BErNG ExpRESSLy urvpeisi6oo-sv essriiiii--ruAi sArq_pERsoNAL PRoPERTY' FrxTUREs, EeurpMENT, aroO rts"i-ine''irNc coNveYED To ASSIGNEE 'AS rs", ',HERE rs*, wrrn ltl.-Iltii'lIo'n' r-I-THETR PREsENT coNDrrroN AND STATE OF NriAiN-AND TEAT.iiiiC-IiEE WILI..}[AKE' PRIOR TO closrNG, suc,'i-lripilctlolls rHeii6i-iis-essrc'ie oieMs APPR.PRTATE' As$oITIEPRoPERTIES,AssIGNo!!}}ExPREsstYDlsct,All,ls A}ry RapREssNriir6ii-on ianRlxil' e;-6-tiil-ti'iue, QUANI rltY' QuALrrY oR pRroRrrr oi-ucHr ro ure -ilr-iaiin-{qri,-exo (ii)-EXPRESSLY Drscr,Art{s arrr'niiniielrtmrgy'6i imnanrr 9I AIIY KrlrD oR CIIARACIER, EXPRESS OR rMplrsD-is'-To nrer,-pnoPERSY trTLE Eo rrIE pRopERTrEs, exCupr THA' essrEUiin oosi wannellr EITLE AGAINST AIIY cr.Aru ARrsrNG By, THRoucn-9{iiNiian-eisrcNoR As To THE REAL PNOPSNTY TTTIJE TO THE PROPERTIES ' Assignee by its -acceptance hereof hereby assumes and asree6 to Pav, -perform-"no aiEI;;;; i;;-;;";e-of'arI obrisations under rhe Leases, the Agre";;;;;-;id ott,.t'-u,iatn" reflected in The references herein to liens' encumbrances' burdenS' defecrs and orh!;-;;;;;s sh"Ir not be o""*"d to ratify or create r"V-iigrrts to third Parties ' separate assignments of the Assets may be executed on officialry apptli"a-i"i'(" uy.'i""igt"1 to^ a"-"iqnlt' in aufficient counrerparrs .i-=Ili";y-;ppir;aUfE statutorv ind requlatory requiremenrs . . "r[Iri-"i"i-g-.,r"ilI-In.it -O: alemea to contain aIl of the excepELon', reservatr""i"l i"ri""ii""- riqhts, titleg' Dower and pr5-vli;;.; ser for;il"fi";;i;-;;-i"iIv is thoueh thev iere set fortt,-i"'eu"h such #=;;;;it:a- rit'int'erestl 'conveyed by such separat!--.""ign*.nr"-ii!'trr. "u*", .na not in addition -"L, the AsLets conveYed herein ' This Assignment binds and inures to the benefit of Assignor and Assign6e ana ttrei; ;;;p;;iir" heirs, successors and Exhibits A and B' assigns. -2- j EXECUTEDof this instrument Effective Date. ATTEST I e ASSIGNOR: ARCO COAI COMPANY, a division of ATLANTTC RICHFIELD COMPANY Boot ?84 ProESSt on the dates contained in the acknowledgment ,-[o U" effective for aII purposes ae of the ASSIGNEE: PUCKBTT T.AND COMPANY B T ByTiffi,'f I ACKNO!{LEDGMENTS STATE OE' COI,ORADO COUNTY OF DENVER ss. The foregoing inst this daY of November, 1'9 of Puckett Land rument was acknowledged before me 90 bv as Compahy, a Colorado corPoratron' I{itness my hand and official seal' My commission exPires: Notary Public -3- this day ComPanY. My wi STATE OF COUNTY OT Boor( ?94 e16g5Ez )) ss. ) foregoing instrument was aeknowledged before me "i-rl"i"*[6t, 1ee0 bv--ffit-ffiI ii"nrierdARCO CoaI ComPanY, a clrvrslo neas mY hand and official seal' commission exPires: Ilbtary Pu Iic -4- MEVEYL,a.ur F t Fe N4 PG Susan L' HoveY susan.hoveY@hoveYlawfirm'com October 21,2013 RE Supplemental Drilling & Division Order Title Opinton Colorado Caerus Oil and Gas LLC 600 lTth Street Suite 1600N ;;;;"t. colorado 80202 Attn: Art Bollen Nolte ProsPect AttorneY File #2107A LANDS COVERED BY OPINION Section l3: SW/4 Garfield CountY, containing 165'63 acres' more or less "Captioned Lands" TITLE MATERIALS EXAMINED Ladies and Gentlemen materials have been examined for purposes of preparing this Opinion: Pursuant to your request the following Order Title OPinion dated November 18,2012 coverlng the SW/4 (a/d/aLotsg, 10, 11, 12'and that Part of Lot 14 lying in the SW/4)of Section 13 Townsh her on behalf of Butcher ip 7 South, Range l. Supp lemental Combined Drilling and Divtston & Widlund, 96 West of the 6th P.M., Garfie ld CountY Colorado , prePared bY John S' Butc L.L.C., wh ich oPinion is current through February 22,2012. at'7"45 am 2012 covering the SW/4 2. SuPPlemental a/d/a Lots 9, 10'll,12, ombined Drilling and Di and that Part of Lot vision Order Title OPin 14 lying in the SW/4) ion dated August 22' 7 South, Range 96 C of Section 13 Towns CountY Colorado'by John S Butcher on behalf of Butcher & Widlund, prepared hip ( w est of the 6th P'M"Garfield L.L.C., which oPinion is current through February 22,2012 at7:45 a'm 3. CoPtes of those documents recorded against the SW/4 of Section 13, TownshiP 7 South'Range 96 West of the 6th P.M., Garfie ld CountY Colorado'from February l,2Ol2 through 5:00 P.m. Provided to tlx"I : sli:,'J:1.: 35" " oo Phone (303) 652-5040 Fax (3os) 652-5041 November 10,2012 at 15349 OuraY Road Pine, Colorado 80470 :i,$il"s::\l,"i'l:H#,i'""'"n order ritre opinion Garfi eld CountY' Colorado October 21,2013 Page2 the undersigned by Terry Tracy, which documents were identifred based on Mr' Tracy's review of the tract index maintained by the stewart Titre compa"r;;;;;"iew of the i;;;;;o'"ntee index maintained bv the office of the Garfield County Clerk and Recorder' 4. copies of those documents recorded against the Sw/4 of S^ection I 3 ' Township 7- South' Range 96 west of the 6,h p.M., Garfield County Colorado,.fr"*;;; er 10,2012.tn'""t''A"*ust 23' 2013 at5:00 p'm' provided to the undersigned by i.r.y ,rury, which d;;;;;;;ere'ia.ntir,"o-uu'"4 on l,,'' Tracv's review of the tract index maintained by the stewart Title compa";;;;;""iew of ,h" ;";;;;/Grantee index maintained bv the offrce of the Garfield County Clerk and Recorder' 5.CopiesofthosedocumentsrecordedagainstLotl|,]}1],12,andt3ofSection13,theEllSEl4ofSection 14, and Lots 2, :, unJ + of Section z+, uiiin rownship ' '""i" *"* 96 west:t'tn" 6'h P'M'' Garfield county cororado, rrom January rs,20r0,11",i*n'o" r":?i':y11,.. ffii:' tl'"ll*:XH#1l:ili'iilJffi ln:;I,;.;:#{X1f trj'tr[t:,*,X'*::'-:#"""":'tJT3J#"iin'o*nerdcoun'fvcrerk :T;:;1.o", Agreement *::*:l:l?,T31,,1'l',H"11,T:H"l#T''ti,{}i.'iiin,{;'!;":x; ";it;it"*um DeveloPment corPorat i:ui$^i*:3l,['J'u;r--,:'i'fi'f TH:ffi il'J;:ffi i;:;Ti*"ilfi ffi iltil;:tffi peiroleum o.r.rJf*JnJCorpo*,io" ;;l;; a Ctuv Resources' Inc' covering royalty interests " ttttt ::ir"vtiack Ranch P roperty'" 7 A copy of that certainl"o., liT"TilJnol';',1Xffy;J ilJ:?i]:"t!x,TxJtil::it',:fr"$"?'";#* Petroleum p""i"pt* Corporatio'"rtuin oit and gas ,*tt*t*i^";J; i" the Captioned Lands' m:*::i:",#"i,rorrorthe Sw/4 orSection 13, rownshipr South' Range e6 west orthe 6'h P.M., Garfield County Colorado o'"0;;;;; Construction Surveys' lnc' for WPX Energy' 9. A copy of aNotice of Lis pendens dated Augu stz,z0r, recorded at ReceptionNo' 806031 between Union pacific Ra.road company and rvy #;;.,-", ,,",^,,ii., uno *""ums ptodu"tion RMT company' LLc' et al. as Defendants' :sil.s:l\1 :i;'l:Hrt# *"'n order ritle op inion i^.riao countY' colorado October 2l ' 2013 Page 3 TRACTS rhe,ands."-"sp:.tn;:,?Jli"::![ii.i;,1.*l*Str*{ilfti[:,i1""#rr'ffiff't1:l'"'1"tf:' H.'IlilIll"fi ;'::l ;;;; io the totar n'l Tract 1 DescriPtion Tract Factor 4.rsl165.63 Lease A of land lY ing in the landNo.8 19X of the HighwaYs,State of particularlY described as follows: B:3lil:',ilil: ;,'i)::,:ilT ffi:l:li # : **xr :iI "1 ?",,"J;"":L:i'ffiT.*H?3i$1Hj3fl$ii'l'ol j':r:::"$:ff * raet to the North rtg n,':i:,iT# r ** qiifr l[*ii3[*["# : {jT: il: n*l$-+-''";',"+i11,)",11-';:!l;1,ttffi ;.[ff ,lil: to the left, havtng a chord of this arc.bears North 't:'06'=::':,f,;;ffi'oi",.h right of wav 'rrr6nce North 2l'19' East' continulng a +.:#*:lf iJJ;?{if firi; l*,:ltnce or 2426 reetto the South ;t;;ry;r.l"i$8,!r1$il "|.1,.''J said South rish,ol,::v rine' a Thence South J)-uu Jv l^-^- t.". i'o the point of begtnnrrtg' distance of 427 'Ztllt' *"tt tt less' io the point of beginntng: H;;i;G4'1e acres' more or less' t*"tn"rO 6ountY' C olorado Tract.2 . DescriPtton Iract Factor 2391165.63 Lease A Section 13: That part of the following described parce I of land lYing in the SW /4 described as follows: A tract or parcel of land No' 818 Suoolemental Drilling &-Division Order Title Opinion iWi+ s... 13. T7s' Re6w Garlreld CountY' Coloraoo October 21,2013 Page 4 tJ,;""1'31,:i[".3x"i:["il::llJ:i,]'ll'iJl";:'n."J#flx'xf ir A.t"riU.A as follows.: on the West line of Lot 4, Section 13, TownshiP ?".11,il:-Jl,l"t3;'**;'i'o't'p't'l"n"**T:L:Kffitt1;;:i7ff ; :i#il;iila cr-o brass cap monument""" "r North 00'05' East t'.'sH ;a a***.r:m:U];"h!fiIi."J# :i i""i""' r' Thence South 00'0"1 wt'i';i;"g tr" wtti rine of Section 13' a distance of l 'l 5l '' ito i" " o;* ; tht ^;;t;i; 'igt't or wav line of SH 6 (Nov' 1980); Thence North 35o00'30" East' along said northerly right of way line' a $ftffti'iil#;rrm: sl;il d""#]ftt*i:i ;','rr (the chord of this feet); -, ^^-+inrrin, along, said northerly line' a f[h:" m lT ]J; ?; l?Ti"-liI'l-'f#;' iil; r-oi + or s"" ion 13; -^^^^,.n,r *I-ar alons said North line' a distance of in;"." South 88'3e'30r' west' ""T-:"llJ;liln""'i Jo'n"' of the 104.5 feet to u *""f-Oin monumenting the Southeast corne lxn:xrx;;:1fi.T*est, continuing along said North line, a distanceof34l'l feet: Thence soutt' o:"'0":I West a distance of 348'3 feet; Thence South 5a'i?' West a distance of 524'4 feet; rhence "*n o'J'"';:'i;;;i;;';; 418'4 reet' more or less' to the Point of beginntng; .""i"ilirg 2'39 acres' more or less' l"tnJo 6ountY' Colorado Tract 3 Description Section 13 That Part of the following described Parce I of land lYing in the SW 14 and to the extent the sam e is accretton,reliction and riverbed of the Colorado River attributab le to Lot 14 of Section 13 described AS follows: A tract of land located between the meander line of the left bank of the Colorado River as shown upon the Government Land Office Plat March 12,1890, and the present course of the of Sectton 13 and24 , TownshiP 7 Tract Factor '7.661165.63 Lease B-25.00% Unleased - 75 '00o/o Colorado River, located South, Range follows: 96 West, in portions of 6th P.M. and more ParticularlY described AS :ffi r::"ri,::iI:H;i:i:ilf,i::!i?:"*['iliiitt;1fi i-iugfffi*tri **lrI*:::: I:,, . ffiil:'"l\"ili ;mfl ry !i"'T:il"L#?;''il or March I 2' in1,.*l1,;^;l?#;,1;ilJ'fn!,i!*nder rines or the right and reft banks of the Coloraio'Rt;;' u:^1h::n"-u0"" tf" Plat of 'March l2' 1890, South *r.rr?ii"'w.u oqs'ro rt""ii"-the centerline of the clo*ao River;- . .-,:.^^ ^r the colorado River, the following in""^*;i"^g the centerline of the co courses and distances: i,"di ilio'zl" East 125'89 feet; ffi; N;h loo25'07" west 69'66feet: +ffi:; Nin'r.r zr'+l'16" west 276)s-r-eel: +iffi N;h lso t8' 41" west 276'e6 reet; +iH:; N;h 2e"le'ol" west 1t9 g? f1: +ffi:: Nlni' ro'+s'40" west l7e'48 feet; +ifi:. N;h 4eo4't's4" East 183'27 feet; iiffi N"nt' 4oo2r'20" East 1 l2-'62 feet; +ile.nll r''"nrt 26o04'00" East 246'36 feet: iffi: N"ntt 26o23'34" East 115-1l^feet; +ffi; N.nr' 2ool9'4'7" East 86'22-feet:' +i,il:: N"'ir., llo53's7" East l0e'83 feet; Hil[ 5;fi1 lm:m:: 'u:I',"'# i::l." the po int or be ginnin g "."i"r"r"t 7'66 acres' more or less' h""rn"ia bountY' C olorado 3t9il'$::.,1,?;t:H#.i-ision order ritre opinion GarFreld CountY' Coloraoo October 21,2013 Page 5 Tract 4 DescriPtion Section 1 3: Lots 10,1 1, and 12,LESS AND EXCEPTTracts 1 and 5 Tract Factor 70.401165.63 Lease A herein; """i"i^i"t 70'40 acres' more or less' e;;fi .id bountv. Colorado :Wil.S::,i]:ri'J:tti,,"'"norderritreopinion Garfi eld CountY' Coloraoo October 21,2013 Page 6 Tract 5 Description LeaseTract Factor 4.621165.63 B -25.00% c - 50.00% Unleased -25'00o/o Parcel 1 -'rt of reference for the-southeast corner of Sectton tl**"n"ine lt 1poil," line berween th. s;j;;';i Section.l*.'"1,:1'" 13, and cons:|:tit tl; il:;r"il; 01"0s'12" East with.llll:u"ng= sdl+ or Section 13 to !ear.)::j:."1n".""- North 4l'18'27" west 't*l"-'-!ffi k#:il#H#ir+i;tt'l;=t+i'toz'sq f""t 1?^: lo' 333a76): thence utong tkt" P'u'D' boundary P.U.D. (RecePtton t the following seven (7) c^oyr;e1and distances: i.i"*t, io;zri25" Eutt 8o'oo feet; r.lo*;1s'zs'zs" East 829'38 feetr i-;;1s"11'zs" East 82e'38 feet; d;; tr0"24'25. East ee'86 reet; iffi; tZittzs" East 150'05 feet; Nil; li" s +'zs' East 163'2'7 reet; lm:m;;g'3'f JtJ:Tounau'v and arong the rorlowing two (2\ courses and distances: [:i,lffi f ;1'"i:::Xl']ll'iJ*,t"1epointorbeBinnins'^ be i n g G arfi e' o t "l,i} "iJ;;*;;;;'"1 No' 240e- I 3 4-00-0 I e : Suoolemental Drilling & Division Order Title Opinion iwi+ s... 13, T7s' Re6w Garfi eld CountY' Colorado October 2l'2013 PageT Parcel2 Beuinning at the Southeast corner of ' Section 13' thence North 55;25'2g"westl,l80^6;i;toit'"point"iitginni^g;thence^South sso2e,r6" west r22;.fi;;;iil:i yii sf;sz'r0' west 202'82 f".t; th"n." N"'th 00'fi'l-* +Ar'tl feetiitrence North 81o10''West q55.g4feet: thence rl"nrii&zg'25" -Easl iii'qt feetr thence North 3oo2l25" r'u't rzo'il';;t;;tt't*' Nottriis;25'5l" East l'807's9 feet: thence soutr.r'jojl"';-t;" trj'zs-rt"t to the-^polnt of beginning, Uting Curi';fi County Assessor pu"tt No' 2409-134-00- 020: C*h.fa CountY' Colorado Tract 6 Description Section 13: That Part of the following described tract of land lYing tn7 the SW 14: A tract of land on the N orthwest side of the Colorado River in Section 13, T ownshiP 7 South,Range 96 West, 6th P.M more particularlY described as follows: Beginning at the North Corner of said tract, whence the Northwest corner of Section 13, TownshiP 7 South,Range 96 W est, 6th P.M bears North 69o59'23" West a distance of 4,346.352 feet, with all bearings described herein being relative to a bearing of South 0003 3'00" East on the West line of Sectton 13, TownshiP 7 South, Range 96 West,6th P'M' (6) courses and distances along the East side Thence of Parachute the following stx Creek and to a point tn the center ofthe Colorado River: thence South 00o 17' West a distance of 122.96 feet; thence North 56"59' East a distance of 36.01 feet; thence South 20" 18' West a distance of 13.67 feet; thence South 28o11'East a distance of 94.30 feet; thence South 1 6" 14' West a distance of 127 ;17 feet; thence South 14o03'East a distance of 138.27 feet; thence the fo llowing nine (9) courses and distances along the center of the Colorado River of 686.79 feet; thence South 49o01'West a distance thence South 29"37'West a distance of 255'75 feet; thence South 33'l9' West a distance of 163.27 feet; thence South 34o 52' West a distance of 150.05 feet; thence South 38o 49' West a distance of 99.86 feet; thence South 27o 42' West a distance of 829'38 feet; thence South 33o 50' West a distance of 644.58 feet; Trae1jaelet 8.201165.63 Lease D thence South 28o 46' West a distance of206.15 feet; :l,$il'$::\l,?it:t#.P-ision order ritre opinion Garfi eld CountY' Coloraoo October 21,2013 Page 8 lffi ::i,Hl?i"i';w*it',ffi ::i'ii:r\tll''""''"* h?*i:"#;T*"l"rrJlu**"'-r-il1ll?" l-and office prut' out"iriu;h i'' l9?0:il Section 13' To*n=hip 7 South' n'ng" eO Y::'' 9lLI}I '"^O distances along the ,n".l.."Tn. -tottowing fi.".t (5J courses i.i;l;";, boundary- of said tract: r.30 feet; thence North *1r;ry9;*1'r;'.3iii,;t:ii{il;t'*"ltii111:r}"i'u rlistance of 930'00 t i..il" itt. Point of beginning; "-o-r,tuining's'20 acres' more or less' Lrtn"ra 6ountY' Colorado Tract 7 DescriPtion Tract Factor 4.851165.63 Lease A T 13: That part of the following described tract of land lYing in the SW /4 of Section 13'LESS AND EXCEPT that portion lYing inSection Tract t herein meander line ofthe right bank A tract of land located EasterlY of the of the Colorado River as described on the Government Land Office Plat dated March 12, I 890, in 13,TownshiP 7 South.Range Sectton 96 West,6th P.M. more particularlY described as fol lows: Beginning at a Point from which the Nofthwest corner of Secti on 13,a brass caP, of 2,184.7 |feet; thence South bears North 03'55'46 East 44"5.1,53" West a a distance of 76 distance 96 feet;thence South 40o 47046'44'! West 00'28" West a distance of 29 4.13 feet; thence South a distance of 108 .67 feel; thence South 21'3 8'47" West a distance of 192.80 feet; thence South 34o07'5 7" West a distance of 1 21.34 feel thence South 12"21'10 " West a distance of 242,13 feet; thence South 14'30'40" East a distance of 119.30 feet;thence South 09o36'10"East a distance of 127.94 feet',thence South 07030'14" West a d distance of 196 istance of 266.26 1 8 feet; thence feet;thence South 20o08'10" West a thence South 00046'01"West a distance est a distance of 208.63 of 152.30 feet; thence South 21"4'.1'36"South 08"44'48" w feet; East a distance of 418.33 feet;thence South 20o43'10" East a distance of 250.27 feet;thence South 2 9"49'46" East a distance of2 't3 !7 5 feet; thence South 4 lo24'39" East a distance of 357 .45 feet to said meander line;thence along said meander line North 82'45'25" West 98'69 feet; thence along said meander line North 31"35'25 " West 1,3'7'7 '42 feet; thence along said 16'00" East42 meander line North 15"24'35 I .46 feet to the " East 2,3'76'42feet; thence South l4o contatntng 4.85 acres,more or less, Garfield Count],Colorado point of beginntng' Srrnolemental Drilling & Division Order Title Opinion iwi+ s... 13. T7S' R96w Garfireld Counry' Colorado October 21,2013 Page 9 Eas!-g DescriPtion P Section 13: That part of the following described tracts of land lYing W/4 of Section 13 ,LESS AND EXCEPTTTact 7 heretn Tlact Factor sg .2t1165.63 Lease E in the S lsland Ranch Annexation Phase I as shown on Annexation Plat recorded MaY 21'1986 at RecePtton No. 3 '71282, described as follows: A tract of land on the Northwest side-of the Colorado River' in Sectton 13. Township z s"uJi-'"*il;;'ilwest' 6;h P'M' more particularlv d e sc r i b e d u' fo I I o*' "'J' ; fi ;?; q 3t -.l T,"I*T:,T,I 7 ;i;fl'''-:l"; 1r*-1i;;J:ili""xffi x*i*i")I;ltrttr* ji}':t:r ffiiJ;$ iil,lr'"U.?';'i'' w;'i i;o r Seci ion I 3 : thence South 79'27' guu u distance of 87'94 feetl thence North 42o27';;;;; distance of 228'38 feetr thence North 5l "08' ;;;; a distance of 46'08 feet: thence North 82"01'ffi; distance of 187'97 feet; thence South 87o55' ;; ; distance of 123'09 feet; thence South 60o55';;; distance of 105'81 feet: thence South 43'23';;;t; distance of97'55 feet; thence South 66'09';;t; distance of 267'30 feet; thence South 78'2e' ;;;; ; distance "l l9' 'eZ feet; thence South 66'53'Eutt u distance of68'l I feet; thence South 67"5i' ;;;i ; distance of 68'70 feet; thence South 38"12'i'i"t* aiuance of 138'33 feet; thence South 34'li'i* udistance of 685'29 feet; thence North 48"0;' il ; distance of 595'44 feet; thence North 57"12' il ; distance of 195'03 feet; thence North $..4;'ffi ; distance of 138'82 feet; thence North 29"5i' il; distance of 193'42feet; thenceNorth OO'tS'Wttt" distance of 69'50 feet; thence North 42"1;' W;; " distance of 13'77 feet; thence North 52%Z';; " {istance of 13'83 feet; thence south 5a"'5i' ;; ; distance of '144'87 feet; thence South 00"1'7' "r'i"tt u aiuance -of 122'96 feet; thence North SO'59' ;; " distance of 36'01 feet; thence South 20'i g' W"" a distance of 13'67 feet; thence Souttr Zg'ii' r'* u distance of 94'30 feet; thence South 16"1a' West a distance o'f 127 '77 feet; thence South 1+'0i' j* o distance of 138'27 feet; thence South 4q'6i' West a distance of 686'79 feet; ltgii's::\l,?it:"fr#'P'" isio n o rde r r itre o p i n ion Larnef a Counry' Coloraclo October 21. 2013 Page l0 gffi41ffiI-ffiu1fie.hep.n,.r beginning; AND 'rn PIat rsrand Ranch Annexation PhT" I1.,1'-'x,:-i;,1*!lTli.tlio.o * l::;J-*'aY 2t' le86 at RecePtton follows: ,he Northwest side of the Colorado River' in.section A tract of land on t 13. Townsh'n "'il'*' n""gt qo 1'"1i' uin t'u' *ot" pa(icularlv de sc ri b e d u' ro r t o JJ' e' ; il;?; I :: :$,"IHT: ;"'T 7 ;'l'ii'''-:ffi ;1"$'"",,'I,nil$5:::iil:i!?#-Y'-",#i:";i##T' feet, with all bearinss described h"t"1l',:';i*S;;il l3r Thence the '."J';6';;'00" Eu'" for the w"': ]l.1t.^#"#,.n"ith;;eander line follow i n g n i n"t""Iii's i ""tutt"''u:g ltittuntes alon g the mea oftheRightBanil:i;h"G;"ani'"'lt'"i!]"l'i'i"'voftheRight r;[il:-:r".:.:i"nj1iT;H*r','ffi :'*."r':l'Yil:r lH[: t"llliX';;'"d"='-*"un"" oris0 05 reet; thence south 38"i'9'w;i; di'tuntt of 99'86 feet; thence soutnzlJi' w;;; di"untt of 829'38 feet; thence south :r"l'o' w;;; Ji'tun"" of 644'58 feet; thence souttt zt"+[' w;;; ; oi"un"" of 206 ' 1 5 feet; thence South Z+ii' W"tt a {istance of 232'98 feet; thence North tz"1i5' w"u u {istancl of 6'tl'45 feet; thence North O''lt' W"tt " aisilcl of : 5'7 '45 feet; thence North r'niio' w"tt u qlt1"i:: of 2't 3'7 5 feet; thence North :z6'i\' w;;i" ti'o'!" of 250'2'7 feet; thence North 2,l'i-*' WLtt " fistanl of 418'33 feet; thence North oi'ii' ;; " {istancl of 208'63 feet; thence North o;';;' g^t u tlton!1of 152'30 feet; thence North ;;i"t' e"" ' qitl"":: of le6'18 feet; thence North ;;';6' e^' u di:ti".:: of 266'26 feet; thence North ;;'i;' w'-t " q1'11i:" of t2'7 'e4 feet; ffit* \:# ii j ; vj*l i tnn:'"1 'i: fi"|""' "'ihe p' in'['r beginning; containing 59'21 acres' more or less' c"in"ro -ountY' Colorado Srrnnlemental Drilling & Division Order Title Opinion Iiiias... l3.r7s'Re6w Garheld Counry' Colorado October 21,2013 Page ll Tract 9 DescriPtion Tract Factor 4.rllt6s.63 Section 13: A striP of land 1 00 feet wide across Lots 10 and I 1; contatntng 4.1 1 acres,more or less, Garfield CountY , Colorado OWNERSHIP (Parcel No' 8l9X of the Colorado State DePartment of HighwaYs) SURFACE: Owner lnterest 100.00% Town of Parachute' Colorado MINERALS INTERESTS & ROYALTY: (OIL, GAS' & ASSOCIATED Lease Unleased HYDROCARBONS ONLY-Excluding "shale Oil") Based on an examination of the above.de.scribed Title Materials and subject tllh"^:*t"ptions' comments and Reouirements ,et fo.ttrierJin-u.to*, titr" Jffi;"p,"i'"*Jr-"rd;,?'"";;'";;'iz:' zoiiut s'oo p'm' was owned .ni .n"u*Uered as follows: Owner Puckett Land ComPanY James S. Harrell, Trustee of the il;; i' Harretl Trust' dated February 24,2003 Puckett Holdings' LLC 0.0000% 0'750000% A Mineral Interest 100.0000% 0.0000% Royalry lnterest 15.50000% 0.750000% Note I &2 Note 1,2 & 3 Req l0 Note 1.2 & 3 Lease A A Suoplemental Drilling &-Division Order Title Opinion iili+ s... l3' r7s' Re6w Garfi eld CountY' Coloraclo October 21,2013 Page 12 Note 1: Lease A covers only those depths and formations lying between the bottom of the oil Shale Miningzone and the botrom of the castlegate Sandst"";; ,;, stratigraphic ;;;;t;" The oil Shale Minin gzone is defined as the stratigraphic equivatent of that ,; ;;;;"it;:-, :fi:""*'una'*' feet' or the top of the orange Marker as round on in" rogs rrom q" l;i;";;j*li. lll*il"r1#*im*X"-l'.f ;: Section 26' Township 3 South' il*t q-9 West' 6'h P'M' See the discusston Note 2: Lease A sets forth a different royalry rate based uooLlnoner.or not *"1:^1tt drilled "on the mesa"' The royalty rate set r"ni, "u""" fo, L.ur.^A ;;"*d on th-" u"'*pti"" tt'u' no po'tion liiract I lies on top of the mlsa. See tn" aittu'i""'*ii"ntt in Requirement No' 9' Note 3: The interest set forth t*': for James |. 13,1.11, Trustee and Puckett Holdings, LLC is a non- parricipating ,o,ur,i"ii.r"#"1;;;il airjr.ri"" t"t ionn U"to* in Requirement No' 10' OVERRTDING ROYALTY INTERESTS : Astothosedepthsandformationslyingb,*":.n|!:,.u:,:o*oftheoilshaleMiningZoneundthe b ot t o nt t u,l\,, i, i|,,. s o i an o ni oii,' S t r at i g r o p h ic e q u iv al e nt : Working Lease Mineral Interest Lease ORR Interest Burdened Lease owner Note 4 L0000% 100'0000% 100'0000% A Blue & GraY Resources' Inc' Note 4: See the discussion set forth below in Requirement No' 12 as to the overriding royalty interest credited ;;"';" glu" g GraY Resources' Inc' As to all other depths andformations: None' Unleased LEASEIIOLD WORKTNG INTERESTS : Astothosedepthsandformationslyingb,*,:.n|!:,.0:,:*oftheoilshateMiningZoneanclthe bofiom"f'nlT"i"i'l''sona'tonio'"n'statigraphicequivalent: Lease Lease Mineral Lease WI Interest NRI Lease Owner Caerus Piceance LLC 82.000000% A Req 8, 9, I l, 24 100.000000% 100'000000% srrnnlemental Drilling & Division Order Title Opinion Iili+ s... 13' r7s' Re6w Garfi eld CountY' Coloraoo October 21,2013 Page l3 As to all other depths and formations: Lease Lease wl Lease Mineral lnterest 100.000000% Lease Unleased Lease NBI NAOwner Puckett Land ComPanY 100.000000% COMBINED OIL AND GAS LEASEHOLD OWNERSHIP INTERESTS As to those dep.ths andformati':l'!';r,:,"::,;:;::;r!:::;f':{':le''oit shate 'i"iii "t'ne Castlegate Sandstone t Bl3 TYPe of ' WI Partv Interesl e. ro LOR 0'000000% puckett Land company _ e. r0 LoR 0.000000% James S. Harrell, Trustee of the il;; i. garrett rrust' dated February 24,2003 Puckett Holdings' LLc e' to LOR 0'000000% t2 ORR 0'000000% Blue & GraY Resources' Inc' 8, e, rr,24 WIA..lRl 100'00000000% Caerus Piceance LLC ru0.000000% Total TRACT WANRI (Parcel No'818 of the Colorado DePartment ofState SURFACE: Owner lnterest 100.00% State of Colorado' DePartment of FORTRACT 1 Mining Zone and the ryBI 0.1 5500000 0.00750000 0.00750000 0.01000000 0.82000000 1.00000000 A A A A A TransPortatton Suoplemental Drilling & Division Order Title Opinion sWi+ s... 13. T7S' R96w Garfi eld CountY. Colorado October 21,2013 Page 14 MTNERALS TNTERESTS & RoyALTy: (orl, cAs, & ASSocTATED HyDRocARBoNS oNlY-Excludins "Shale o'1") C)wner Puckett Land ComPanY James S' Harrell, Trustee of the lu*"t S. Harrell Trust' dated February 24,2003 Puckett Holdings, LLC Owner Blue & GraY Resources' Inc' 100.0000% 0.0000% 0.0000% 0.750000% A Lease A A Oil Shale Mining Zone and the Mineral Interest RoyaltY Interest 15.50000% 0.750000% Notel&2 Note 1,2 & 3 Req l0 Note 1.2 & 3 Note r: Lease A covers only those depths and formations rying between the bottom of the oil Shale Miningzone and the bottom of the castlegate Sandston" o, its stratigraphi. "q;i;;i"";-t-h: gl Shale Miningzone is defined as the stratigraphic equivalent of that r*. or"*r, u.t*."l, the-surface and 1452 feet' or the top of the orange Marker as found on the logs from the souih Sulfur No. l weli ior*ra in the SE/4N*/4NE/4 of Section 26' Township 3 South, Range 99 west, 6th p.M. See the discussion set forth berow in Requirement No' 8' Note 2: Lease A sets forth a different royalty rate based ,o"ir.honer.or not *rrlir: drilled "on the mesa"' The rovalw rate set f"rd;";" for Lease-A i, uur"a on the assumption that no portion of Tract 2 lies on top of the ;#;:'d;,;;;i;";;n set rorth in RequirementNo' e' Note 3: The interest set forth abov.g for James S. Harrell, Trustee and puckett Holdings' LLc is a non- participating ,oyurty-int"rl.,. -s"" *re aiscJssiJn'r"t rottn below in Requirement No' 10' OVERRIDING ROYALTY INTERESTS : As to those depths andformotions lying betwee'n rhe'bottom of the b o t to m "f , h ;T ;;;;1, n's, " i r, o n i o r"i t t s, at i g r a p h i c e q u iv a t e n t : Lease Mineral Interest Working lnterest Burdened Lease ORR 1.0000% Lease Note 4: See the discussion set forth below in Requirement ;;. to Blue & GraY Resources' Inc' 100.0000% 100'0000% A No.12astotheovenidingroyaltyinterestcredited Note 4 As to all other depths andformations:None, Unleased Suoolemental Drilling & Division Order Title Opinion iwi+ s..' 13. T7S' Re6w Garfi eld CountY' Colorado October 21,2013 Page 15 LEASETIOLD WORKING INTERESTS: Astothosedepthsandformationslyingtetwei.n|!1,!,o^ttomoftheoilshaleMiningZoneandthe bofiom "t't'"'T."i'i'l''snna'to'i o'"it' stratigraph ic eq uivalent: Lease Lease Mineral Lease wI lnterest NN. Lease Owner caerus piceance LLc Reqs'e' rr'24 100'000000% 100'000000% 82'000000% A As to all other depths andfotmations: Owner Puckett Land ComPanY Lease Lease Mineral lnterest 100.000000% 100'000000% Lease NBI NA wl Lease Unleased Lease COMBINED OIL AND GAS LEASEHOLD OWNERSHIP INTERESTS As to those depths ydforytt!"^ 'n':r,,!'ll"riii'ii,,T';;f,:{;!;e''oit shate irii*- ,\roe Castlegate Sundstone or ils s y! 0.000000% 0.000000% 0.000000% 0.000000% 100.00000000% 100.000000% FORTRACT 2 Mining Zone and the N8I 0. I 5500000 0.00750000 0.00750000 0.01000000 0.82000000 1.00000000 Partv Puckett Land ComPanY James S. Harrell, Trustee of the James S. Harrell Trust' dated February 24,2003 Puckett Holdings' LLC Blue & GraY Resources' [nc' Caerus Piceance LLC Totat TRACT WI/NRI M 9, l0 9, l0 9, l0 Type of Intetest LOR LOR A A 8,9,11,24 LOR ORR WI,hIzu A A A t2 Suoplemental Dritling &-Division Order Title Opinion s*i+ se.. 13, T7S' Re6w Gart'ield CountY' Colorado October 21,2013 Page 16 (M&B SURFACE: Owner Puckett Land ComPanY MINERALS INTERESTS & ROYALTY: Tract in the SW/4 of Section 13) lnterest r00.00% (orl, GAs, & ASSOCTATED HYDROCARBoNS ONL9 Owner Kathryn M' Tucker' life estate; E"tf 6. *o Kathryn M' Tucker' LLC, Remainderman Req 15, l8 Req 19 Req 17 50.00% 25.00% Mineral Interest 25.00% RoyaltY Interest 18.00% N/A N/A Lease Mineral lnterest 25.000000% 50.000000% 25.000000% Lease B Unleased UnleasedPuckett Land ComPanY Battlement Mesa ComPanY OVERRTDING ROYALTY INTERESTS: LEASEHOLD WORKING INTERESTS: Owner None Req 15, 18,24 Req 19 Req l7 Lease wl 100.00000% 100.00000% 100.00000% Lease 82.000000% N/A N/A Lease B Unleased Unleased NRI WPX EnergY RockY Mountain' LLC Puckett Land ComPanY Battlement Mesa ComPanY Suoplemental Drilling & Division Order Title Opinion iiti+s... l3.r7s'Re6w Gart-reld CountY' Colorado October 21,2013 Page l7 COMBINED OIL AND GAS LEASEHOLD OWNERSHIP INTERESTS WI 0.000000% FOR TRACT 3 NRI 0.04500000 Leuse Partv Kathryn M. Tucker, life estate; ;;tr r. and Kathryn M' Tucker' LLC' Remainderman 25.000000%0.20500000 B 0.50000000 Unleased 0.25000000 Unleased 1.00000000 HYDROCARBONS ONLY-Excluding "Shale Oil") RoyaltY Interest Lease 15.50000% A 0.750000% A 0.0000% 0.750000% A Reg 15, l8 Req 20 Norel&2 Note 1,2 & 3 Req l0 Notel,2&3 Type of Interest LOR B WPX EnergY RockY Mountain' LLC Puckett Land ComPanY Battlement Mesa ComPanY Total TRACT WANRI SURFACE: Owner Puckett Land ComPanY Owner Puckett Land ComPanY James S' Harrell, Trustee of the ;;;"t S. Hanell Trust' dated February 24,2003 Puckett Holdings, LLC ls, 18,24 wl/NN l9 WI NRI 50.000000% l1 WIAIRI 25.000000% 100.000000% &ots t0, 11, and I )LESS AND EXCEPT Tracts 1 and 5 herein) Interest 100.00% MINERALS INTERESTS & ROYALTY: (OIL' GAS, & ASSOCIATED Mineral lnterest 100.0000% 0.0000% Note r: Lease A covers onry those depths and formations lying between the bottom of the oil Shale Miningzone and the bottom of the castlegate Sandstone or its stratigr"pnrc "q"i""i.ri 1ni gl :n'tr Mining Zone is defined as the stratigraphic equivalent of that ,*; ;;; u"i"""n i1;Trr""" and t45z feet' or the top of the orange Marker as found on ih" logs from tt.s*ln sulfurNo. r w.ri r"r"t"d in the sE/4Nw/4NEl4 of Section 26' Township 3 South, Range gg west, otrr p.M. iee the discusrion ..t forth berow in Requirement No' 8' :l,$ii's::Il,?it:t##-ision order ritre opinion Garfi eld Counry' Coloraoo October 21,2013 Page 18 Note 2: Lease A sets forth a dirferent rovarrv rate based upoi:ffffffiX"j HILX':i+'r'"1;il:ff::l;il!;,d,"il;lf :l;*i,.",'U*t"-t;,:H:i,KJl;assumr :::j-;J:;set rorth above ror.rames S. Harreu, rrustee and Puckett Ho-lfinps' LLc is a non- participating royalty il",i;l l"" rrr" U,r"llri* ;;;f;;l utto* in Requirement No' l0' OVERRIDING ROYALTY INTERESTS : As to those depths andformations rying between the-bottom of the oir shale Mining zone and the b o fi o m "t' niT "'i" r'l " s o' a* o nZ i)"i i- n' * i sr a p h i c e q u iv a t e nt : Working Lease Mineral Interest Lease ORR Interest Burdened Lease owner Note4 l '0000% 100'0000% 100'0000% A Blue & GraY Resources' Inc' Note 4: see the discussion set forth below in Requirement No. 12 as to the overriding royalty interest credited ;;;"'i" siu" a GraY Resources' Inc' As to all othet depths andformations: None' Unleased LEASEHOLD WORKING INTERESTS: Astothosedepthsandformationslyingb**":.::!:,.0:,,,o*oftheoilshaleMiningZoneandthe b o tt o nrcf ""T "'i' {i "'s i n as rc ni o r it s st ar i g r a p h i c e q u iv al e n t : Lease Req 8, e' I r, 24 100.000000% Lease Mineral lnterest 100.000000%82.000000%Owner Caerus Piceance LLC Owner Puckett Land ComPanY Lease NBI NBI wl Lease A As to ull other depths andformations: Lease Lease wl Lease Mineral lnterest Lease Unleased 100.000000%100.000000% NA Suoplemental Drilling & Division Order Title Opinion sWi+ s... 13, T7S' R96w Garfi eld CountY' Colorado October 21,2013 Page 19 COMBINED OIL AND GAS LEASEHOLD OWNERSHIP INTERESTS As to those depths ?ndfor:nat!'^' '!:r,.!'!Xii#ilirl;':;f,:{,:le'!it shate irii*'rlrne costlegate sandstune oruts s WI 0.000000% 0.000000% 0.000000% 0.000000% 100.00000000% 100.000000% 34-00-0 t 34-00- FORTRACT 4 Mining Zone and the @ 0.1 5500000 0.00750000 0.00750000 0.01000000 0.82000000 1.00000000 Partv Puckett Land ComPanY James S. Harrell, Trustee of the James S. Harrell Trust' dated February 24,2003 Puckett Holdings, LLC Blue & GraY Resources' Inc' Caerus Piceance LLC TOIAI TRACT WUNRI 9, l0 LOR ORR wl,{{RI8,9,11,24 2409 I (Garfield CountY Garfield CountY Assessor Assessor P Parcel No. 2109 arcel No. lnterest 100.00% YtJ 9, l0 9, l0 Type of Interest LOR LOR Leuse A A A A A t2 19 and 020) SURFACE: Owner Green Head Investments l ' LLC MINERALS INTERESTS & ROYALTY:(orl, GAs, & ASSOCIATED HYDROCARBoNS ONL9 Owner Exxon Mobil CorPoration Kathrvn M. Tucker' li[e estate; a;;i6. and Kathryn M rucker' LLC, remainderman Battlement Mesa ComPanY Note l. Req 14 Req 15, l8 Mineral lnterest s0.00% 25.00% RoyaltY Interest 12.50% 1S.00% Lease C B Req 17 25.00%N/A Unleased Suoplemental Dritling & Division Order Title Opinion sWi+ Sec. 13, T7S, R96W Garfield CountY, Colorado October 21,2013 Page 20 OVERRIDING ROYALTY INTERESTS: LEASEIIOLD WORKING INTERESTS : None Lease 100.00000% Lease Mineral Interest 50.000000% Lease NBI 87.s00000% 82.000000% N/A Lease C B Unleased wl Owner Antero Resources Piceance CorPoration WPX EnergY RockY Mountain' LLC No. 14 Partv Exxon Mobil CorPoration Kathryn M. Tucker, life estate; Carl D' and KathrYn M' Tucker' LLC' Remainderman Antero Resources Piceance CorPoration WPX EnergY RockY Mountain' LLC Battlement Mesa ComPanY Total TRACT WANRI WINRI 50.000000%0.43750000 c Note I Req 13 Note r: only a ,,Memorandum of Lease,, was recorded for Lease c which document does not set forth the royalty rate under the Lease. For the purposes of calcurating net revenue interests in Tract 5' Exxon Mobil corporation' Lessor under Lease c, is credited herein abou" *]th a basic ilt;n royutty and the Lessee' Antero Resources piceance corporation, is credited witt .a-"orre.ponding g'7 .50%.t"ur" n", ,"r"nur interests' However' it is likely that Lease c contains a royalty rate which;;';#;in us'n. See the discussion set forth below in Requirement Battlement Mesa ComPanY CVMBINEDoILANDGASLEASEHTLDyWNERSHIPINTERESTSFoRTRACTS Req 15, 18, 24 Req 17 l5- l8 100.00000% 100.00000% Type of lnlerest LOR LOR 25.000000% 25.000000% WI 0.000000% 0.000000% w 0.06250000 0.04500000 Leuse Reg C B l4 l3 15, 18,24 WIA{zu 2s.000000%0.20500000 B WINRI 25.000000%0.25000000 Unleased t'7 0.00000000%1.00000000 Sunolemental Drilling & Division Order Title Opinion iWi+ s... 13. T7s' Re6w Garfi eld CountY' Coloraoo October 21,2013 Page2l SURFACE: Owner Town of Parachute' Colorado MINERALS INTERESTS & ROYALTY: Owner Town of Parachute' Colorado Partv Town of Parachute' Colorado WPX EnergY RockY Mountain' LLC Totat TRACT WANRI (M&B Tract in the of Section 13)SW/4 lnterest 100.00% (orl, GAS, & ASSOCIATED HYDRoCARBONS ONLY) Mineral Interest 100.00% 6 Royalry lnterest 12.50% OVERRIDING ROYALTY INTERESTS : LEASEHOLD WORKING INTERESTS : Lease Mineral Interest 100.000000% Lease Owner Req24 100.00000% WPX EnergY RockY Mountain' LLC COMBINED OIL AND GAS LEASEHOLD OWNERSHIP INTERESTS None Y! 0.000000% 100.000000% 0.00000000% Lease D Lease 87.500000% FORTRACT 6 @ 0. I 5200000 0.87500000 1.00000000 NBI Lease D Lease wl eeJ Req 24 TyPe of Interest LOR WI,NRI D D Suoolemental Dritling & Division Order Title Opinion swi+ Sec. 13. T7S, R96W Garfi eld CountY, Colorado October 21,2013 Page22 SURFACE: Owner Puckett Land ComPanY Owner Puckett Land ComPanY James S. Harrell, Trustee of the James S. Harrell Trust, dated February 24,2003 Puckett Holdings, LLC 0.0000% 0.750000% A MAB Tract in the Sll/4 of Section l3'LESS AND EXCEPT that Portion lying within Tract I herein) Interest 100.00% MTNERAL. TNTERESTS & RoyALTy: (orl, cAs, & ASS'.TATED HyDRocARBoNS oNly-Exctuding "shale oil") Notel&2 Req l8 Note 1.2 & 3 Req l0 Note 1.2 & 3 Mineral Interest 100.0000% 0.0000% Royalty Interest 1s.50000% 0.750000% Lease A A Note l: Lease A covers only those depths and formations lying between the bottom of the oil Shale Miningzone and the bottom of the castlegate Sandstone or its stratigraphic "qriuur"*. The gll Shale Miningzone is defined as the stratigraphic equivalent of that ron" fr"r"nt between the surface and r45z feet' or the top of the orange Marker as found on the logs from the South Sulfur No. l well located in the SE/4N*/4NE/4 of Section 26' Township 3 South, Range gg west, 6th p.M. See the discussion set forth below in Requirement No' 8' Note 2: Lease A sets forth a different royalty rate based unon y-hether or not we[s are drilled "on the mesa"' The rovarw rate set ronrr above for Lease A is based on the ur.rn,piion inu, no portion of rract 7 lies on top of the ;#;:'d;,;;;i;;;"i;n set rorth in RequirementNo' e Note 3: The interest set forth above for James S. Harrell, Trustee and puckett Holdings, LLc is a non- participating ,oyutty-intol,. -s". the discission-."i r.t tt below in Requirement No' l0' Supplemental Drilling & Division Order Title Opinion sWi+ s... 11. T7S, R96w Garfi eld CountY' Colorado October 21,2013 Page23 OVERRIDING ROYALTY INTERESTS: As to those depths andformations lying'betwee'n the''b1t'tom of the b o t t o nt q' n'T "'i' i'l "'s " in " * i o ii " s, at i gr ap h ic e q u iv a I e n t : Oil Shate Mining Zone and the Note 4: See the discussion set forth below in Requirement Nos ,#;;;;r" to Blue & GraY Resources' lnc' Owner Blue & GraY Resources' Inc' Owner Caerus Piceance LLC Owner Puckett Land ComPanY As to all other depths andformations: As to all other depths andformations: Lease Lease Mineral WI lnterest 100.000000% 100'000ooo% Lease Lease Mineral WI Interest 100.000000% 100.000000% Lease A Lease NBJ Lease 82.000000% A Lease Note 4 Req 8, 9, I l, 18,24 Lease ORR 1.0000% Lease Mineral lnterest Working Interest Burdened NA 100.0000% 100'0000% 12 and I 8 as to the overriding royalty interest None, Unleased LEASEHOLD WORKING INTERESTS: Astothosedepthsandformationslying.b,*":.n:!:,.bltnmoftheoilshaleMiningZoneandthe b o t t o m,f ' t';T;:;; ;| "'s "' i n' ^ i o'"rt s st r at i sru p h i c e q u iv a t e nt : NBI Lease Unleased Supplemental Drilling-& Division Order Title Opinion SWi+ Sec. 13. T7S' Rebw Garfreld Counry' Coloraoo October 21,2013 Page24 COMBINED OIL AND GAS LEASEHOLD OWNERSHIP INTERESTS As to those depths andformati':'r:l';r,,!':;;;#::;-:;':;f':{'::"e''oit shate 'ioi'o* of the'Costtegaft Sandstot Partv Bs iM v! e. ro.r8 LOR 0'000000% Puckett Land ComPanY James S' Harrell' Trustee of the e' r0 LoR 0'000000% ;;;"t S' Harrell Trust' dated February 24'2003 Puckett Holdings' LLC e' ro LoR 0'000000% Blue & Gray Resources' Inc' t2 ORR 0'000000% caerus Piceance LLc ';1, ]i wl'NRI 100'00000000% 100.000000% TotatTRACT WI/NRI ( sl and Ran ch Annex at ion Phases I and il, LESS AND EXCEP T Tract 7 herein) FORTRACT 7 Mining Zone and the ryEI 0.1 5500000 0.00750000 0.00750000 0.01000000 0.82000000 1.00000000 Lease A A A A A SURFACE: Owner Puckett Land ComPanY MINERALS INTERESTS & ROYALTY: Owner Puckett Land ComPanY Ivo E. Lindauer Diamond Minerals' LLC (orl, GAS, & AssocIATED IIYDRoCARBONS ONLY) Interest 100.00% Mineral lnterest 50.000000% 25.000000% 25.000000% Royalry lnterest 15.00% 15.00% 15.00% Lease E E E Suoplemental Drilling & Division Order Title Opinion swi+ se.. 13, T7s, R96w Garfi eld Counry' Colorado October 21,2013 Page 25 OVERRIDING ROYALTY INTERESTS : FromthesurfacedowntothebaseoftheCameozoll.,delinedasthestratigraphicequivalentofT,42l feet asfound in the RMV 1-2g weiitorotnd in the swtliiru of section 28' Township 6 South' Range 94ll/est,6th P'M': Lease ORR Req 24 0.710940% Lease Mineral Interest 100.00000% Working lnterest Burdened 100.00000% 100.00000% 100.00000% r00.00000% 100.00000% 100.00000% 100.00000% 100.00000% 100.00000% Lease EOwner WPX EnergY RockY Mountain' LLC Barry L' SnYder StePhen B. Evans Ted E' Amsbaugh & Co' A.W. Fleming Christina L. SnYder Laurence N. Watts Vicki L. Clark Jeanne A. Anderson 0.63','1410% 0.63',14r0% 0.63',7410% 0.250000% 0.002890% 0.002890% 0.002890% 0.000960% 100.00000% 100.00000% 100.00000% 100.00000% 100.00000% 100.00000% 100.00000% 100.00000% E E E E E E E E Berow the base of the cameo zone, defined as the starigraphic equivarent of 7,42l feet asfound in the RMV 1-2g ,/ell,located in rhe swl/4SEIA ,iirrir"' 2l,"Township 6 South' Range 94 west' 6th P'M': Lease Mineral lnterest 100.00000% Working Interest BurdenedLease ORR 0.710940% Lease Owner WPX EnergY RockY Mountain' LLC Barry L. SnYder Stephen B. Evans Ted E. Amsbaugh & Co' Req 24 0.6374r0% 0.6374r0% 0.63',7410% 100.00000% 100.00000% 100.00000% 100.00000%E 100.00000% 100.00000% 100.00000% E E E Suoolemental Drilling & Division Order Title Opinion sWi+ sec. 13. T7S. R96\[ Garfi eld CountY, Colorado October 21,2013 Page26 A.W. Fleming Christina L. SnYder Laurence N. Watts VickiL. Clark Jeanne A. Anderson 0.250000% 0.002890% 0.002890% 0.002890% 0.000960% 100.00000% 100.00000% 100.00000% 100.00000% 100.00000% 100.00000% 100.00000% 100.00000% 100.00000% 100.00000% E E E E E LEASEHOLD WORKING INTERESTS: From the surface down to the base of the Cumeo Zoyl,delined as tlte stratigraphic equivalent of 7,421 feet asfouni rn lr" RMV 1-25 w"iito*rrd in the swiaioa of section 28' Township 6 South' Range 94 West,6th P'M': Owner WPX EnergY RockY Mountain' LLC Owner WPX EnergY RockY Mountain' LLC Yates Petroleum CorPoration oxY Y-l ABO Petroleum CorPoration MYCO Industries,Inc' 100.00000% 100.000000% 82j172% Lease Lease Mineral Interest Lease Lease Mineral WI Interest 63.728354% 100.000000% 16.271646% 100.000000% 6.666700% 100.000000% 6.666',100% 100'000000% 6.666600% 100.000000% NBJ Lease Lease NBI 82.117200% 82.11'7200% s2.rr7200% 82.117200% 82.r17200% Lease E Lease WI Below the base of the cameo zone, defined as the stratigraphic equivalent of 7,421feet asfound in the RMV t-2g well,located in the swl/4SEIA of i*rnn 28, Township 6 South' Range 94 lYest' 6th P'M': Req 24 Req 24 E E E E E Suoolemental Drilling & Division Order Title Opinion iwi+ s... 13. T7s. R96w Garfi eld CountY' Colorado October 21,2013 Page 21 CWMBINEDoILANDGASLEASEHDLDTWNERSHIPINTERESTSFqRTRACTS From the surface down to the base of the cameo zone, creJined as the stratigraphic equivalent of 7'421 feet asfound in the RMV 1-25laell,locatei in *n sw4sE/4 o7S""tion 28' Township 6 South' Range 94 West,6th P'M': Psrtv Puckett Land ComPanY Ivo E. Lindauer Diamond Minerals, LLC WPX EnergY RockY Mountain' LLC Barry L. SnYder StePhen B. Evans Ted E. Amsbaugh & Co' A.W. Fleming Christina L' SnYder Laurence N' Watts Vicki L. Clark Jeanne A. Anderson WPX EnergY RockY Mountain' LLC Total TRACT WUNRI Partv Puckett Land ComPanY Ivo E. Lindauer Diamond Minerals, LLC of 7,421 feet as found in the Range 94 llest,6th P'M: W Lease 0.07500000 E 0.03750000 E o.0375oooo E 0.00710940 E 0.00637410 E 0.00637410 E 0.00637410 E 0.00250000 E 0.00002890 E 0.00002890 E 0.00002890 E 0.00000960 E 0.82117200 E 1.00000000 0.07500000 0.03750000 0.03750000 Bes Type of Interest LOR y! 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 100.000000% 100.00000000% 24 LOR LOR ORR ORR ORR ORR ORR ORR ORR ORR ORR WINRI BelowthebuseoftheCameoZone,definedasthestratigraphicequivalent RMv t_2g weil, tocatett rn *e swAsru of section 28, Township 6 south' Bt!Type of Interest LOR LOR WI 0.000000% 0.000000% 0.000000% E E E LOR Suoplemental Drilling & Division Order Title Opinion sWi+ s... 13. T7S' R96w Garflreld CountY' Colorado October 2l'2013 Page 28 Req 24 ORR ORR ORR ORR ORR ORR ORR ORR ORR WINRI WI,NRI WIA{RI WINRI Wlit'lRl 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 63.',l28354% 16.2',71646% 6.666700% 6.666700o/o 6.666600'h 100.00000000% 0.00710940 0.00637410 0.00637410 0.00637410 0.00250000 0.00002890 0.00002890 0.00002890 0.00000960 0.52331940 0.1 336 1 820 0.05474507 0.05474507 0.05474426 1.00000000 Lease Unleased E E E E E E E E E E E E E E WPX EnergY RockY Mountain' LLC Barry L. SnYder Stephen B. Evans Ted E. Amsbaugh & Co' A.W. Fleming Christina L. SnYder Laurence N' Watts Vicki L. Clark Jeanne A. Anderson WPX EnergY RockY Mountain' LLC Yates Petroleum CorPoration oxY Y-l ABO Petroleum CorPoration MYCO Industries' Inc' Total TRACT WANRI Owner Union Pacific Railroad ComPanY SURFACE: Owner Union Pacific Railroad ComPanY MINERALS INTERESTS & ROYALTY: (A striP of land I 00 feet w ide across Lots t0 and I l) lnterest r00.00% Req 24 Mineral Interest 100.00% (OIL, GAS, & ASSOCIATED HYDROCARBONS ONL9 RoyaltY lnterest Req. 22 N/A Sunolemental Drilling & Division Order Title Opinion iwi+ s... l3' T7s' R96w Garfi eld CountY' Colorado October 21,2013 Page29 Taxes: ENCUMBERANCES EXCEPTIONS AND LIMITATIONS See Requirement No' 5 See Attachment No' I See Attachment No' 2 See Attachment No' 3 See Attachment No' 4 h,Hf#,,+,;:"F:Hil::JlliJ:,Ti;:i"3:"'fii#Jl"i[.f i"'it'1::ilrll,T"l;ili'ii[=l':? such materials and ";;;;; from this di;i;, are the "rro* ii oinirrion=, ir anv' in said materials and the undersigned assumes no iiuUitiry' therefor' 2.Limitationofopinion.Thisopinionislimitedtomattersreflectedintheinstrumentsandmaterialsexamined and does not "or"-questions'?f l"ig:'y, identity or capaci, of persons' "onflitt' in boundary lines' encroachments, or righis which. do n11 ;J;"ili';:""*.;"t" "oJtil"v a""noi appear in the records "*u*in"a, this opinio, ar,o ".,T:-J*,?:r[ii:,ll*h"HL="1"ffif.*"ru:ijit]:'*iJ#tlgou"rn*"n,ut ug"n"v'"having or "t::ill,*,r; administratiu" ora# il';Opro;;] ftt atiifl"g' pooling' spacing' and :,;l;. ii unv, und the necessiry for sec.urtt related maners. g"th irp;r"mentar e,trtrl?t.-rr"* p.i.,"r, w;;;frlt"h"r,In"' ronoln'rimitations excluding mining location r",,H:r"ri;.i"ir lii"u";, ;dil"t notices, and related matters involving mining claims' 3.Mattersexcludedfromopinion.Noopinionisexpressedastothefollowing: a. Railroad and/or other rights_of-way or.claims^not,reflected by the data examined, the existence of which may be determined f'o* u'it'ytical inspection of the lands; b' The rights of parties in possession; c. Discrepancies of survey or location which might be reflected by physical examination of the lands; d. Zoning or other land use controls; e. craims or lawsuits not shown by a recorded notice of lis pendens; f. Matters excepted from the abstractors'certificate of coverage' g'Anyapplicablebankruptcyorinsolvencylaws,liensforcurrenttaxesnotyetdue,mechanics, judgment' or statutorfilJ;i reflected by the data examined: Suoolemental Drilting & Division Order Title Opinion sWi+ Se.. 13, T7S. R96w Garfreld CountY' Colorado October 21,2013 Page 30 h. Matters of fact not disclosed of record which vary from statutor,y permitted presumptions of fact or *f#I"TU1l;Xltt:'":J::"il";:t?::i'o,"o.rry records pertaining to crops, rarm machinery' livestock, fttd, ;;;i;; ;r irrigation equipment; and j.Thisopinionalsoexpress.lyexcludesreviewofthedocumentsofrecordtoensurethatvalidPowersof Attorney ur" ,""o.a"a ftr all in.rr.r*in . executed by attorneys-in-fact' 4. Rieht to Rely on opinlon This oy]l:o]lis rendered for the re.liance of only the addressee' No other person may rely upon it. The uno!-rsigned accepts ," ;;;;r;tirirv ", ri"ut'fi",:;;'ir""it'"' tt'un tn" addressee regarding this OPinion' TITLE COMMENTS r. o. and Gas Leases A through E and Assignments thereof are tabulated on Exhibit "A" attached hereto' 2.A||recordingreferencesaretotherealpropertyrecordsofGarfieldCounty,StateofColorado. 3. Each interest tabulated in the ownership section hereof is an undivided interest and has been proportionately reduced where aPProPriate' 4. ApPeartng of record at RecePtion No. 820900 is a'Notice of Name Change"which evidences that Petroleum DeveloPment Corporation changed its name to PDC EnergY, Inc., effective June 13,2012. 5. APPeartng of record at RecePtion No' 81850 8 is a "statement of AuthoritY"which gives notice that the name to execute instruments conveylng,encumbering, or otherwise affecting title to real proPertY on behalf of the James S. Harrell Trust (the "EntitY") is James S. Harrel I, Trustee. This Statement of of the Person authorized AuthoritY was recorded on MaY 9,2012 Pursuant to c.R.s. $ 38-30-172. 6. As set forth in the Materials Examined Section above, this oPinion is based uPon a prev ious oPtn ion by John S Butcher dated November 18,2012. For ease of reference, a table of the Leases contained herein and their prevlous designation is Provided below TITLE REQUIREMENTS A' Titre Requirements set forth in the prior Title opinions covering the captioned Lands examined for purposes of preparing this opinion were either advisory in notur",, noiongn, appricable due to the passage of fime, or noo, t"n Tity t*ttfta' superseded' or restuted herein below' CurrentlnLeasernlon:PreviouslnLease AV.C BV.D CV.E DB E SV.A Supplemental Drilting & Division Order Title Opinion SW/4 Sec. 13, T7S, R96W Garfield CountY, Colorado October 21.2013 Page 3 I Opinion. REQUIREMENT No. 1: (Surface Inspection)This opinion is subject to the rights of all parties in possession of the captioned Lands, to matters of survey, area, or boundaries, and to other matters which are not readily apparent from the materials examined, including easements, road and railroad rights-of-way, and rights in reservoirs or ditches which may be located on or which cross the Captioned Lands' Requirement:Priortoconductingoperationsonthedescribedlands,adetailedsurfaceinspection should be made to ascertain *t"it". any rights-of;way, reservoirs' ditches' roads or other physical encroachments are locatej on the -Capt-ionea mnit; whether there are any underground facilities,buildingsorcropslocatedonsaidlands;andwhetherthereisanyevidenceonthe premisesofminingclaims,-mininglocationnoticesorminingactivityaffectingsaidlands'An investigation shou'id also be ma;e to ascertain what partils, if any, are in actual physical possession of all or any portion oi tt " subject lands and to determine by what rights they hold such possesri"n. fn.'results of such iniestigation should be prepared in the form of an appropriate "ina""i duly subscribed and ,*o'n io by a person fravinq knowledge of the facts' As an alternative, you should satisff yourself that no on. i. in actual physical possession of any of the captionei'Lands other than ih" o*n"r, of those lands and interests as set forth in this REOUIREMENT No. 2: (Zoning Reguration)Garfield county.has enacted county-wide zoning ordinances which may affect oil and gas operationr-.-o:1u^"1"a on tn" captioned lands' In Bd' of Cnty' Comm'rs' La Plata Cnty' v' Bowen/Edwards Associates, Inc.,g30 p.2d io+i, rooo-ol (colo. teozl,the cllorado Supreme court held that the oil and Gas conservation Act does not totally preempt u "ounty;, urii-,o.ity to enact land use regulations for oil and gas operations within the county' Requirement: You should contact the office of the Garfield county zoning Board to determine what zoning regulations, if any, i*p".i yort- oil and. gas operationi on the captioned lands and conduct all opeLtions in accordance with said regulations' REOUIREMENT No. 3: (Specior (Js.e. Districf.s/ According to the Garfield county property website, the captioned Lands haue been included within it'," foito*ing ,p""iul use districts: Grand valley lrrigation District' consolidated Metropolitan District, parachute/Battlemeni Mesa park and Recreation District, Battlement Mesa Metropolitan District. A, u ."srlt of such inclusion, the lands are subject to the rules and regulations governing said districts, and to any liens for unpaid assessments' Requirement:Forabsolutesecurityoftitleyoushouldcontacteachoftheabovereferenced special ur. dirtri.,, to l) determine if there are any unpaid assessments which may become a lien against the captioned Lands, ura zl to determine if there are any rules and/or regulations governinglandusewithinsuchdistrictswhichmayimpactyouroperations. REOUIREMENT No. 4: (Easements, Rights-of-way and other surface use Agreements) Your attention is directed to Attachment No. 2 hereto which identifies those Easements and Rights-of-way affecting the captioned Lands. Also summarized on Attachment No. 2 are the Notices of Underground Facilities which have been recorded against the captioned Lands pursuant to State statutes. The location of any such underground facilities may impact your operations as the statute imposes liability on any person who damages such facilities unless the utility is previously contacted and given an oiportunity to mark the location of the facilities' Finally, the 'Notices Supnlemental Drilling & Division Order Title Opinion swi+ Sec. 13. T7S' R96W Garfield CountY, Colorado October 21,2013 Page32 Conservation Commission of Surface IJse,, and ..Requests for Notice of Surface Development" recorded pursuant to State Statutes against the Captioned Lands ut" ul'o summarized on Attachment No' 2' Requirement:YoushouldconductyouroperationssoaSnottointerferewiththevestedrightsof other parties. You should also contact each of the companies noted on Attachment No. 2, if any, and inquire as to whether any or tt eir underground facilities are located on the captioned Lands andyoushouldconductyouroperationssoaSnottointerferewithsuchfacilities. REQUIREMENTNo.5:(Taxes)Notaxliens.and/orT::,f-"*"dTaxSaleReceiptsappearofrecordagainst the captioned t_anas-rhe undersigned has not, however, reviewed the records maintained by the Garfield county Treasurer to determine whether the real property taxes assessed against either the surface estate or the severed minerar interests, if any, of the captioned Lands are paid current in"full to date' This information will be provided upon request. Requirement: you should satisff yourself that all real property taxes assessed against the Captioned Lands are paid in full current to date' RE.uTREMENT No. 6: (colorado oil and Gas Conservation Commission Rures and Regulations) The colorado oil and Gas conservation commission (the ,'coGcc") has implemented numerous rules and regurations which govern oil and gu, "*plorution and production operations in the State of colorado' including but not limited to well location *1"r, p".mit regulation, i,r"tJng notice of operation requirements' and surface damage settrement and/or bonding ,.quir.*.rnts, all of .whici must be fully complied with prior to the commencement of operations. caerus oil and Gas LLc is an experienced operator having drilled numerous wells in the State of colorado and is familiar with the rrl., und r.gulations of the coGCC' As a result' no further information is set forth herein as to such rules and regulations' Requirement: All operations conducted on the captioned Lands .should be performed and completedinfullcompliancewiththerulesandregulationsoftheColoradooilandGas REQUIREMENTNo.T:(StatusofLeasesandAffdavitsofLeaseExtension)oilandGasLeaseBisstillwithin its primary term, which expires on August 6,201;' Oil and Gas Leases A' C' D and E are beyond their primary terms and are continued only if they have been perpetuated through continuous production or other sufficient operations pursuant to the Lease terms. your attention is directea-,""rn. provisions of cRS $38-42-106(2) which provide in part ttrat, at any time before ,t " "*firu,ion of the definite term of an oil and Gas Lease, or after such term if the Lease is already herd by p.odu"tion from another well, the owner of such Lease may record an affidavit setting forth the description of the Lease, that the affiant is the owner thereof and facts showing that such oil and Gas Lease is extended by production. The recording of such an affidavit together with the recorded Lease shall constitute due notice to the public of the existence and continued validity of said Lease' until the same is forfeited, canceled, set aside, or surrendered according to law. Documentation evidencing the extension of oil and Gas Lease A has been recorded. However, nothing appears in the materiars examined which evidences that Suoplemental Drilling & Division Order Title Opinion swi+ Sec. 13. T7S' R96w Garfreld CountY, Colorado October 21,2013 Page 33 Leases C, D and E have been extended past their primary l.T.. ", to the sW/4 of the subject Section 13. See Requirement No. 1 1 for a further discussion as to the "*,.rran of Lease A and the discussion set forth in n.quir"*.nt No' 14 as to the extension of Lease C' Requirement: You should satis! yourself that p-roductiln-fr1s :1"::;t::1:ili:ffi::; have been conducted on Oil and Gas Leases A' C' D and E in a conttnuou fashionsoastoextendoilandGasLeasesA,C,DandEtothecurrentdate'Intheevent production is established from thetaptioned Lands by production frol u n:l well or wells' you shouldrecordanAffidavitofProductionwhichp,o,id",noticethatoilandGasLeasesA,B,C, DandEhavebeenextendedbeyondtheirprimarytermsbytheproductionofoiland/orgasfrom such well or wells. pursuant t" R;;ir;*.nt No -t + utto*' you should satisfu yourself that Lease ChasnotterminatedastotheSw/aofsectionl4duetotheoperationofaPughClause. REQUIREMENT No. g : (Lease A Depth Limitation) your attention is directed to the depth limitations outlined in Lease A herein, by and between puckett Land co. and petroreum Deveropment corporation' which Lease covers a 100% mineral interest in Tracts 1,2,4, and'7. Section 14 of Lease A states that it covers only those depths and formations lying between tte-uottom of the oil s*,ut" tutinin gzone and the bottom of the castlegate Sandstone or its stratigraphic equivalent. The oil Share Minin-gzoneis defined asthe stratigraphic equivalent of that zone present between the surface and r452feet, or the toi oiin" or*ge Marker as found on the logs from the South Sulfur No. l welr located in trre sEt+Nw/4NE/4 of iection 26, Township 3 South' Range 99 west' 6th P'M'TheremainingdepthsandformationsareUnleasedastoTracts|,2,4andTherein.Accordingtothe information set forth on a ,,cororuao struiigruphic Nomenclature chart," for the Piceance creek Basin' the bottom of the castlegate fbrmation is the same as ih" bur" of the Mesa verde formation' Requirement:YoushouldmakesurethatanywelldrilledontheCaptionedLandsiscompleted only in u d"pth and formation covered by Lease A' RE'UTREMENT No. 9 : (Royalty Rate.s under Lease A) y orsrattention is directed to the fact that Lease A' which rease covers a r',./omineral interest in Tracts r, 2, 4,und 7, ,",' ronn two different royalty rates depending on the location of the well. Section 3 of said Lease sets forth u royutty rate of 1'7'o0o/o' but also states that "The royalry rate w,r be reduced to fourteen and one-half percent tti-s'ti [for oil, gas, and other leased substances] produced r.o* *"tt, located on top of the mesa.,, rn" ,oyuti .ut" ,"i forth_herein for Lease A is based on the assumption that no portion of the captioned Lands rie ,,on tof ortn. mesa'" However, should you determine that any of the wells to be drilled in the Sw4 of Section t: witt be located "on top of the mesa"'the royalry rate attributed to Lease A must be changed to r4.500/oand the ownership interests set forth herein for Tracts 1'2'4 andTmustur,ou.changedtoreflectthelowerroyaltyrateunderLeaseA' Requirement:Priortodistributingtheproceedsof.productionattributedtoawelllocatedonthe captioned Lands you should "onir* that the location of such well is not "on top of the mesa'" RE.UIREMENT No. l0: (overridin-g Royalty Conveyances ltad1 w',:::,,::and Compa.ny in Le.ase A) The previous opinion au*-a nnuary 30, z?ro p."iured by the undersigned contained the following requirement No' ll Suoplemental Drilting & Division Order Title Opinion sWi+ sec. 13, T7S, R96W Garfi eld CountY, Colorado October 21,2013 Page 34 .,The forlowing conveyances titled .Assignments of overriding Royalty' appear of record relative to the CaPtioned Lands: a.AppearingofrecordinBook|223alPage635isanAssignmentofoverridingRoyalty dated December 1,2000,.rr..tiu. No,eriber 15, 1999, under which Puckett Land Co. conveystoR.E.Puckettanovenidingroyaltyinterestof3/4ofl%of8/8thsinandto f-.u" tnt u'ihe same covers the Captioned Lands' and other lands; b.AppearingofrecordinBookllg3atPage16TisanAssignmentofoverridingRoyalty datedJune15,2000'effectiveNovember15,lggg,underwhichPuckettLandCo. conveystoJimHarrelanoverridingroyaltyinterest.of3l4ofl%of8/8thsinandto f-"u" fni u' the same covers the Captioned Lands' and other lands' Typically,anoverridingroyaltyinterestisaleaseholdinterestthatiscreatedoutofaworkinginterest.ltis aninterestwhichisinadditiontotheusuallandowner,sroyaltyreservedtotheLessorinanoilandGas Lease. obviously' Puckett Land Co., as the mineral owner and Lessor under oil and Gas Lease [A], cannot create an additional overriding ,"ruri, ,r,.r"st which.burdens the leasehold working interest' As a result, neither R. E. Puckett or Jim Hanel have been credited with ownership of an overriding royalty interest in Lease [A]. However, information obtained from petroleum Deveropment corporation indicates that the above described 'Assignmtnt' or overriding Royalty' were intended to convey to R' E' Puckett and Jim Harrer a non-participating.oyut;; irt.*'t in-all oil and gas saved and marketed from Lease [A] as the same covers the lands described * ,t " .onr"yances, *r'iln intt'"sts are to be deducted from the Landowner,sroyalty.Theownerst,ip-.int.,",t,setforthhereinarebasedonthisinformation. Unfortunately, the above .Assignments Lr overriaing Royalty' do not clearly reflect Pucke$ Land co''s intent to "onu"y u po'tion ofitsioyalty interest under Lease [A]' As a result, you were directed to obtain and place of record an amendment to the above described Assignments of overriding Royalty which clearly reflects the intent of puckett Land co. to convey a portion of its landowner royalty under Lease A to R. E. puckett and James S. Harrell. rn the alternative, you were directed to make sure that R.E. puckett and James S. Harrell execute Division orders uured on the ownership interests set forth in the Opinion. This issue was arso addressed in Mr. Butcher's opinions covering the Sw/4 of-the subject Section 13' ln referencing the above identified Assignments of overriding noyulty lro* n. E' Puckett, Mr' Butcher commented that . . . .,since the grantor of the overriding royalty interest was the lessor and not the lessee, it is questionable whether it courd convey an overriding ,oyu6 interest under that lease," and that as a result the interests conveyed to R.E. puckett and Jim Harre,.,was treated as a t.rn", royulty interest." Mr..Butcher also noted that by a subsequent conveyance recorded at Reception No. 7g5919, R.E. puckett conveyed to puckett Holding company' LLc a o.j5%non-participating royalty interest in Lease A. This conveyance was subsequently corrected by document titled .,clarification of Quit claim and Assignment of Non-pamicipating Royalty Interest" at Reception No. g09r59 under which R. E. puckett conveyed to puckett Holdings, LLc a non-participating royalty interest of o.oo75% sic (3r4of one percent) as to Lots 4, 10, 13, rz.a r:-orthe subject Section 13' Language in this conveyance indicates that,.this dorurr,"nt i, a clarifrcation ortnut Qun"]i*."illl.,tuntrtouting Royalty interest dated December 31, 2009 recorded in the 1e1rds:|o*'T'lCounty Co at Reception No. 7859419 on May 12, 2010 and is not intended to convey an additional interest in tr,. properties describe above'" These documents Suoplemental Drilting & Division Order Title Opinion swi+ Sec. 13, T7S' R96w Garfi eld CountY' Colorado October 21,2013 Page 35 support the examiner,s determination that the intent of the earlier Assignments of overriding Royalry lnterest to R.E. puckett and James Harre, were intended to conve, ^"r-o;;;;;p7,in, royalty interests and not overriding royalty interests. L- a * led at rt should also be noted that by Assignment of overriding Royalty rnterest dated. March 'l ' 2007 ' recorc Reception No. 72039g, James S. Harrelr'.i,v' ,,* Harrel, "r.tJ;;Ji-"J nt, overriding royalty interests in Lots 4, 10, 7r, r2,& 13 ;-i;'.es S. Harrer, Trustee of the James S. Harrell Trust unde-r Trust Agreement dated February 24,2003.-o' u resurt, trre lanuarv-io, r,oro-Titre;;t;; prepared by the undersigned credited ownership of a0.,5vonon-participuting ,ovurtv interest to James. s. Harrell, Trustee of tht Ju*tt S' Harrell rrust dated Febru ary 24,2003. However, it i' ";;; that the o*n".rt',ip"r"i"irt"r set forth in Mr' Butcher's subsequent Title opinions credit ownership or uo.rsi)"non-participr,irg rlyrray interest to.James' S' Harrell' individually' The undersigned conducted a brief review ;il" online r""ora, *uintuined by the office of the Garfield county clerk and Recorder but was unabre to identiff any conveyan"" "'o*ring Lots 4' l-0' 1l' 12' & 13 of the subject section 13 under which James S. Harrelr as Trustee,.onu"r"Jin" ub"or" identified overriding royalty interest back to James S. Harrell, individualry ,*;;"rsigned did discoverer a document title 'ocorrection Assignment of overriding Royarty rnterest,, dated Marc h 7, 2OO7, r."or]o-J at Reception No' '72601'7 ' A copy of this document was provided to the undersigned. Under tt,i, ao"u*Jo1l *,r., S' Harrell conveys to James S' Harrell' Trustee of the James S. Harrell r.ur, urJ.. Agreement au*J'i"u* ary 24' 1003' all of his overriding royalty interests in certain lands lying in ro*nffi, i-una 7 South, Ra "* ni west.. .Unfortunately' this conveyance' which does not cover anv rands rving *nni" 'n" *o'":::*1f1#n":lfffi"r 3:,[::i:ffilH:"T; [;e;:;rffi;m ;Xffi::[#,H,iJ:;ihi;t;[]ft"ded bv rames Hu""it'o amend the rands covered by his original yur r,2007 Assignment of overridin* *;il-;"1'0"1-il^:'"il';l"x;,j'-1"'?3,ffi; t"ilt):;'"1;rumi:l;";rufxHlJT:1,"",":?Hil'T"T#$'31""'L'' r'u""' of 'lhe James S Harrell Trust undelit.tt ol*"ment dated February 24'2003' Requirement:Priortothe.distributionoftheproceedsofproduction,shouldmakesurethat puckett Holdings, LLC, and ,"r". S. Harrell, "' T;;;; of in" James S' Harrell Trust' execute Division orders based on the ownership interests ,o"io-n-n t tntt "-'':l:,:' If you determine that James S. Harrell, individually,;;;i, be credited with 0.75% non-participating royalry interest in Lots 4, 10, ll, 12, &.l3ortt" ruu.i.ct Section ,', intn you 'tlouta obtain an place of record a conveyance under which James S. Harrell, as Trustee'of th" Ju,n", S. Harrell Trust, quit claims all oftheTrust,sinterestinsaidlandstoJamesS.Harrell,individually. RE.UIREMENT No. 1r : (pugh. clause in Lease A) your attention is directed to the fact that Lease A has a .,pugh clause,, *t i"t, provides ,nu, ,ilJr",ion from a pooled unit containing portions of the rease premises will not maintain the Lease as to the lands not included in such pooled unit areas' . However' your attention is also directed to the language of the Lease which provides that thl ,u*. is subject to a side Letter Agreement dated November 15, rg;g,which required the Lessee to dri, " ";;;i; number of wells each year in order to maintain the lease as to a, rands. The terms of the Letter Rgr""*"n, -;"r" "ontrotting in the evenf of a conflict between the terms of the Lease and the terms "r,^. o*r."rn"n1. rn t,i, io**"nt No' a of his Augu st 22' 2012 Title opinion Suoplemental Drilling & Division Order Title Opinion SWt+ Sec. 13. T7S' R96W Garfi eld CountY, Colorado October 21,2013 Page 36 Mr. Butcher indicated that numerous Affidavits of Lease Extension had been recorded in Garfield county which indicated that Lease A had been extend"a uy proauction but that none of these documents were applicable to the Sw/4 of Section r 3. Mr. Butcher al.o indi#Ld that no we,s had been drilled in the Sw/4 of Section l3 and that as a resurt it appeared that Lease A had terminated as to said lands. However, Mr' Butcher stated that he had not at that time been provided with a copy of the November 15, lggg side Letter Agreement' The undersigned has reviewed a copy of the November 15, rggg,-etter Agreement and the same was subsequently provided to Mr' Butcher. This Agreement sets forth certain drilling obligations *t i.t., significantly alter the terms of the Lease as to the manner in which the Lease may be extended beyond the primaryie.m. Numerous wells have been drilled on the lands covered by Lease A, or on laJs pooled tt"rewith,.lri * i **l1yl.l,:tcher determined that Lease A remained viable as tt Tract r, z, 4una z rr.r.in. This determination is consistent with the terms set forth in that certain ,,Amendment and Ratification of oil and Gas Lease,' dated october 3,2012, which instrument was recorded on Novemb er 5,20r2at Reception No. g2650g, which amends Lease A to a,ow the pooling of Lease A with other lands to form units covering the NW/4 and SW/4 orit" subject Section l3 as to the production from the williams Fork and Iles formations of the Mesaverde Group consistent with colorado oil and Gas commission order Nos. 440-66 , 47g-2rand 5 1 0-5 g dated April 7i' iot, By execution of this document' Puckett Land company also ratified Lease A and agreed ,,that the Lease is valid and in full force and effect and binding on the parties." R. u ."rutt, Lease A is still i"n futt force and effect as to all of the lease premises' Requirement: you should obtain a copy of the above described Letter Agreement dated November r5, 1999 and continue to conduct your operations in full compliance with the terms andconditionssetforththereintomaintainLeaseAinfullforceandeffectastotheCaptioned Lands. RE.UIREMENT No. 12: (Overriding Royalty ,:,::,::,.i:ited to Blue & Gray Resources, Inc. as to Lease A) By Assignm"n, au[ro""ember 6,2OO7,recorded at Reception No. 73g325' petroleum Deveropment corporation conveyed to BIue & Gray Resources, tn"-un overriding royutty interest in Lease A as the same covers Lots 4' 10' rr,12,&13 of thesubjectSection rr"quur tolr2ort.ooy.astoallwelrslocatedata"MesaLocation"and equar to 1.00% as to all wells dr,red ut u ;vull"y Location." The language set forth in this Assignment and the language of the November 2r, rggg Letter Agreement b.t*""n p"trot",r* Development corporation ("PDc") and Blue & Gray Resources, rnc. (,.BGRI,,) if"r"n".d i, trr"-.onn"yance, which Lstablished the obligation of pDC to convey such overriding royarty interests to BGRI, d"fin", a "Valley Location" as any well located on the Haystack Ranch Property and accessed from the valley, and a ..Mesa Location,, is defined aS any well accessed from the Mesa. The amount of overriding royalty due to the Assignee shall be determined on a well by well basis' In addition, the overriding royalty interlst "onu"y"d thereunder shall be calculated on a "net basis" and shall therefore bear a proportionate share of all taxes, third party compression, gathering and transportation charges' The overriding royalty interest credited herein to Blue & G'"; R;;ources' t""' i' bas"d on the assumption that all wellsdrilledinttreswl+ofSectionl3areo.accessedfromthevalley.', Requirement: None' advisory only for clarification purposes' RE.uTREMENT No. l3 : (Assignments of working Interest in Lease c covering a 50% Mineral Interest in Tract 5 herein)The prior opinion by John S. Butcher dated November lg, 2012 credited Antero Resources Piceance corporation as owning 100.00% of the working Interest in L.ur. c, which lease covers a 50'00% Mineral Supptemental Drilling & Division Order Title Opinion SW/4 Sec. 13, T7S' R96W Garlletd CountY. Colorado October 21.2013 Page 37 further comment. Interest in Tract 5 herein. Appearing of record at Reception No. 835777 and dated April 17,2013 is a "Partial Assignment of Oil and Gas t-.are n."p Rights," whereby WPX Energy Rocky Mountain' LLC' Assignor' assigns a 6.6667(,%working Interest in the Deep Rights pertaining to Lease c herein to oXy y-1 Company, Assignee' The partial Assignment was made in accordanc. *itt that certain Joint operating Agreement dated December 16' lgggbyandbetweenwPXEnergyRockyMountain,LLCandoxYY-lCompany'However',thematerials examined did not include an assignment of Lease c from Antero Resources piceance corporation to wPX Energy RockyMountain,LLCoritspredecessor,WilliamsProductionRMTCompany,soitisunclearhowWPXEnergy gained an interest in Lease c. Therefore, for the purposes of this opinion, the undersigned has credited Antero Resources piceance corporation as owning 100.0o% of the working Interest in Lease c; covering 50'00% of the Mineral lnterest in Tract 5 herein' Requirement: If wPx Energy Rocky Mountain, LLC and oxY Y-l Company poSSeSS an ownership interest in Lease c herein, "opi"' of an assignment of interest in Lease c from Antero Resources Piceance Corporation to WPi Energy Rocky Mountain' LLC should be provided to the undersigned in order to update the ownership inierests in this opinion accordingly' In addition, a copy of the Joint operating Agreement dated December 16' lg99 between wPX EnergyRockyMountain,LLCandoxYY.lCompany(whichagreementisreferencedinthe AssignmentatReceptionNo.s35TTT)shouldbtp'ouid"dtotheundersignedforreviewand REQUIREMENTNo.14:(Royalty,DepthLimitation'andPoolingProvisionsinLeaseccoveringa50% Minerar Interest in Tract 5 herein) comment No. g in the previous opinion by John S. Butcher dated November 18,2012 advised that: ,,[P]resent in the instruments examined was a memorandum dated April 8' 2008' filed of record at Reception No. 775146, giving notice of the existence of an oil and gas lease between Exxon MobilCorporationandAnteroResourcesPiceanceCorporation(SeeLeaseChereininExhibit ,.A" attached hereto). That memorandum was signed by John c' Rothwell as attorney in fact for Exxon Mobil corporation. The Materials Examined did not include a grant of a power of attorney fromExxonMobilCorporationtoJohnC.RothwellofrecordinGarfieldCounty,Colorado. colorado statutory law requires a grant of a power of attorney affecting real property to be filed of record in the county where theland is located' C'R'S' $ 38-30-123' The Materials Examined didnotincludetheactualleaseformbutdidstatethattheprimarytermoftheleasewaslS months. lt has been the experience of the undersigned that Exxon Mobil corporation generally hasincludedaPughClauseinitsoilandgasleases,alongwithdepthlimitationsandalackofa pooling provision absent the consent of the Lessor' There was no release of that lease in the MaterialsExamined.SincetheleaseformitselfwasnotincludedintheMaterialsExamined,the undersignedcouldnotascertainwhethertheleaseincludedaPughClause.Accordingly,that lease was treated as not having expired'" As a result, Mr. Butcher directed that you to determine whether oil and Gas Lease c was still in effect as to the sw4 of the subject Section 13, and if this Lease had terminated to said lands that you would have to obtain a replacement oil and Gas Lease covering the interests of Exxon Mobil corporation in and under Tract 5 herein' Suoplemental Drilling & Division Order Title Opinion swi+ Se.. 13. T7S. R96w Garfi eld County, Colorado October 21,2013 Page 38 and provide the same to the undersigned for review. If the Lease remains in effect for Tract 5' you were required to determine what royalty rate was ,"t rottr' in itt" i"u'" *a :::L" t"*" had any depth limitations' You were also directed to determine if the Lease contained a pooling prouirion sufficient to pool the lease premises in your intended spacing unit area covering the Sw/4 of Section 13 for the williams Fork and Iles formations' Finally' you were required to cause a grantof a power of attorney from Exxon Mobil corporation to John c' Rothwell' effective on April g, 200g, to be filed of record in Garfield c"rrry, c"lorado. Nolhins appears in the materials providedtotheundersignedwhichindicatesthattheserequirementshavebeensatisfied. For purposes of carcurating net.revenue interests in Tract 5, Exxon Mobil Corporation, Lessor under Lease c' is credited herein with a basic l/g,1, royalty and the Lessee, Antero Resources piceance corporation' is credited with a corresponding g7.50% rease net revenue interest. However, it is likely that Lease c contains a royalty rate which is greater than 1/8th' Requirement:YoushouldobtainafullcopyoftheabovedescribedoilandGasLeaseand confirm that the same does not contain a pugh clause which would render the Lease invalid as to Tract5.IfLeaseChasterminatedastoTract5thenyoumustobtain"i.loilandGasLease fromExxonMobilCorporationcoveringsaidparcel,whichLeaseshouldbesubmittedtothe undersignedforreviewandmodification-ofthisopinion.lfLeaseCisstillineffectastoTract5 andiftheroyaltyratesetforthintheLeaseisotherthanl/Sth,thentheroyaltyratesetforth herein for Tract 5 and the corresponding leasehold working interest and net revenue interest must be modified accordingly. Finally, in thl absence of a ooor"in* provision in Lease c' Exxon Mobil Corporation *itt ut,o have to be a signature party to any pooling agreement covering your ProPosed sPacing unit area' REOUIREMENTNo'15:(Rovaltv'Pooling'DelavRental'?:d*h:'''^'1:t':':LeaseBCoveringa25% Minerar Interest in Tracts 3 and 5 herein, and Ratification of Lease B) Appearing of record at Reception No' 7556g5 is a o,Memorandum of Lease,, acknowredging that Kathryn M. Tucker et al' and williams Production RMT company have entered into an oil and Gas Lease "o*.ing'r-o ts 6, 7 , and 14 of Section 13' Township 7 South, Range 96 West, 6'h P.M. (Tracts 3 and 5 herein)' and other lands' Lease B herein' The Memorandum indicates that the Lease has a primary term of Five (5) r.u* fro* August 6,zoog. The Memorandum does not' however, provide any information as to other pertinent terms of the L"as", including but not limited to the royalty rate set forth in the Lease, whether the Lease contains u a"ftr, limit or a poolinf provision' or whether annual rentals are required to maintain the Lease during the primaiy i"rrn. However, the information set forth in the previous opinion dated November 1g, io' pr"{ured by John S. Butcher indicates that the royalty rate for Lease B is 1g.00%, that the Lease is u puia-uf r-"ur", and that the Lease has a pooring provision' The details of the pooling provision were not set forth by Mr. Butcher. Presumably, Mr. Butch", *u, provided with a copy of this Lease by his client, williams production RMT company. The ownership interests set forth herein are based on this assumption. Therefore the ownership schedules sellortn herein identifu the royalty rate for Lease B as rg.00%. However, it is possible that upon procuring an original copy of the Lease, this information may not be correct. Suoplemental Drilling & Division Order Title Opinion swi4 Sec. 13. T7S' R96\[ Garheld CountY, Colorado October 2l'2013 Page 39 Appearing of Record at Reception No' 796605 is a "Ratification of oil *9 O.?t .':11; dated December 2',7 ',2010' by which rommy r_. iu"t"., attorney-in-fact for Kathryn M. Tucker under that certain power of Attorney dated February 5,z.O3,ratifies, approves, and confirms oil and Gas Lease B' In this ratification' Antero Resources piceance corporation is identified u, o*n". und holder of oil and Gas Lease B, "as successor to williams ProductionRMTCompany'"However'noassignmentofL"u'e"uOO"u"ofreco-rdfromWilliamsProduction RMT company to ani".o Resources pi"eance Lorporation. rt.r.r".., the working Interest under Lease B is credited herein to wpX Energy Rocky Mountain, LLc, as successor to wi,iams production RMT company' Requirement: A copy of Lease B should be obtained and submitted to the undersigned for review. If the royalty rate in thislease is not 18%0, then the ownership interest set forth herein mustbemodifiedaccordingly.Youshouldalsodetermineifthereareanypoolinglimitations contained in Lease B that would affect your ability to fool the captioned lands for production from the williams Fork and Iles formations of the Mesaverde Group. you should determine if AnteroResourcesPiceanceCorporationclaimsaworkinginterestinleaseB,andifso,cause documentation evidencing the same to be recorded in curi,"la county, colorado and provide the same to the undersigned for review and comment' REQUIREMENT No. 16 : (oir share Excrudedfrom opinion coverage)your attention is directed to the fact that the ownership inte[sts set forth herein do not cover the o***nro ini","'tr in "oil Shale" or "Shale oil'" oil Shale has been defined in certain "onu"run..s in the chain of title to Lease A as meaning "marlstone containing kerogen,, and shale oil has been defined as meaning ,.oit ,""overed from oil Shale by means of in situ combustion of such oil Shale or any other method of recovery irr"i 0"". not involve the extraction or removal of the oil share from a deposit thereof by means or operations generally classified as mining operations'" Requirement: None' advisory onlY' REQUIREMENT No. 17: (Lands Bordering the cororado River) comment No. 7 in the previous opinion by John S' Butcher dat"d No'"mber l8' 2012 advised that: ..[T]hecenterlineoftheColoradoRiverhasshiftedovertimeandthatcenterlinenowliesintheWestone. half of Section 13, Township 7 South, Range 96 *""' iin P'M' rather than in the East one-half of the Section as originally platted uv ,r.n.y iut"i u*tt.l rz, isgO' Pursuant to the laws of accretion', reliction andmeander,ashiftintt,.."nt".ti,.,oruriveraddslandstoonesideandremoveslandsfromtheother. under those taws the originat ,* i, .*o*ded from tht E;;;;-half of the Section into the west one-half' and now includes Tracts lt ana ir or".,r 3 and 5 t'"ttini' con'""tly' Lots 8' 12 and 13 lost land as a result ofthe shift ofthe centerline ofthe river' ByinstrumentdatedAugust30,l96l,filedofrecordatBook336'Page272'carlD'TuckerandKathryn M. Tucker, then owners of Lots i,i'^"014 of Section r:lo*n'iip isouth'-Range 96 west' 6th P'M' in feesimple,conveyedthoselandstoJohnW.Savage,,.,".,inganundividedone.halfoftheoilandgas mineral estate. of even date, carl D' Tucker and Kathryn M' Tucker' by instrument filed of record at Book 336,Page2ST,conveyedanundividedone-quarterofthgoilandgasmineralestatetoWilliamAthaMason and Nata J. Mason as joint ,"nun r. oi tnu, ptinr, ron, w. sauugJo*r"a the surface estate of Lots 6' 7 and 14,andone-halfoftheoiluna'go,*ineralestate.cu,ro.T"uckerandKathrynM.Tuckerownedand Suoolemental Dritling & Division Order Title Opinion sWi+ Sec. 13, T7S. R96w Garfi eld CountY, Colorado October 21,2013 Page 40 located. C.R.S. $ 38-30-123 undivided one-quarter of the severed oil and gas mineral estate' and william Atha Mason and Nata J' Mason, joint tenants, owned and undivided one-Iquarter of the severed oil and gas mineral estate' Through mesne conveyances the interest of John w' Savage became vested in Atlantic Richfield company (,,Arco,,), and Tosco. By Lis pendens dated December i7, 1980, filed of record at Book 562'Page 439' ToscoandArcogavenoticeofaquiettitleactiontodeterminetheownershipoflandsborderingLots4, 10, l1 and 12 created by accretion, reliction and meander of the colorado River' including Tracts I I and 13 (Tracts 3 and 5 t,.,"in). The named defendants were Ivo E. Lindauer, Sidney R' Lindauer, Bessie E. Lindauer, then owners orlo.,8 and 9 of section 13, Township 7 South, Range 96 West,6th P.M, The notice of Lis pendens, and the subsequenr ;;;;., irtred tv trrlfourt' did not name carl D' Tucker' Kathryn M. Tucker, william Atha Mason, nor Nata J' Mason as parties defendant' Accordingly' that action did not determine the rights of Carl D. Tucker, Kathryn M. Tucker, William Atha Mason, nor Nata J. Mason Bysubsequentinstruments,ExxonCorporationsucceededtotheinterestsofArcoinLots6,Tand14, Thereafter, by instrument dated october 2, 1981, filed of record at Book 584, Page 708, Exxon Corporation,ToSCo,IvoE.Lindauer,SidneyR.Lindauer,andBessieE'Lindaueragreedtofixthe boundary between Lots 6, 7 and | ,and Lots &and 9 at the then present centerline of the Colorado River, set at the line on the plats provided to the undersigned between Tracts I I and 13 (Tracts 3 and 5 herein) on the East and Tracts 12 andl T (Tracts + una e t'"tlin) on the West' That instrument states that the boundary wastoremainfirm,notwithstandingthelawsofaccretion'relictionandmeander'Theinstrumentwas signed by F.P. Barrow as attorney in fact for Exxon corporation' The Materials Examined did not include a grantofapowerofattorneyfromExxonCorporation-toF.P.BalowColoradoStatutorylawrequiresa grantofapowerorutto*.yaffectingrealp_ropertytobefiledofrecordinthecountywherethelandis Inaddition,ExxonCorporationandTosCoconveyedalloftheirmineralinterestinandunderTractll (Tract 3 herein) to Arco, by instrument filed of record at Book 597' Page 512'and Battlement Mesa' Inc' andTosCoCommunitiesCorporationconveyedthesurfaceestatetothoselandstoArcobyinstrument filed of record at Book 597,Pagel60. Neither Carl D. Tucker, Kathryn M. Tucker, William Atha Mason, norNataJ.Masonjoinedinanyofthoseinstruments.Accordingly,theirrightsunderTractslland13 (Tracts 3 and 5 herein) were not affected by those instruments' As a result of these conveyances, and others, and applying the laws of accretion, reliction and meander to the interests of Carl D. Tucker, rutt,ryn t,a' r,.t.,, William Atha Mason, and Nata J. Mason, the ownershipofTractslland13(Tracts3and5herein)areaSsetforthherein.BattlementMesaCompany hassucceededtotheinterestsofWilliamAthaMasonandNataJ.Mason.TheinterestsofBattlementMesa co. in Tracts l l and 13 (Tracts 3 and 5 herein) are not subject to a current oil and gas lease'" As a result, Mr. Butcher advised you to obtain an oil and Gas Lease from Battlement Mesa company covering its unleased interests, which Lease should cover Lots 6' 7 and 14 of Section 13' Township 7 South' Range 96 West, 6th P.M,, including all accretion, reliction andmeander lands attributable thereto. You were also required to cause a grant of a power of attorney from Exxon corporation to F.p. Barrow effective on october 2' l98l to be filed of record in Garfield county, colorado. Nothing appears in the materials examined which indicates that this Requirement has been satisfied. As a result, the mineral interest owned by Battlement Mesa company in Tracts 1and 5 herein remains unleased of record' Suoplemental Drilling & Division Order Title Opinion ivii+ s... 13. T7S. Re6W Garfi eld CountY' Colorado October 21,2013 Page 4l Requirement:Aspreviouslydirectedty\4r.Butcher,youshouldobtainanoilandGasLease from Battlement Mesa Company "or.ring l,r;;i";"l'*in"'ut-in'"'"11 t" tt:::' 7 and 14 of Section 13, Township 7 South' Run:".96';;' ;; P'M'' including all accretion' reliction and meander lands attribritabre thereto. subsequenii" ,n. ,""ording of sich Lease you should satisf, yourself by an exam;;;" of the Garfieli county real property records that no documents were recorded between the certification date "i * oo,"ion and th'e recording or your Lease which would encumber or otherwise diminish ,"rr l","r"u under this Lease' In addition' a copy of the recorded Lease should be submitted to'ii" una"rrigned for .*t"* and modification of this Opinion (Tract 7 Mineral Interest Covered bY Lease A and Tract 3 and 5 Mineral Interest Covered bY Lease B)As discussed above in Requirement No' 17, the centerline of the Colorado River has shifted over time, and Pursuant to the laws of accretton'reliction and meander , a shift in the centerline A herein are described of a river adds in the lands to one side and remove s lands from the other The lands covered bY Lease Lease as "Lots 4, 10, 1 l' 12 and 13" of the subject Section 13. However'based on the information set forth in Mr. Butcher's OPinton , a new parce I of land was created due to the movement of the Colorado River' Tract 7 herein, which Parcel is located immediate ly East of original Lots 10 and 1l' Mr Butcher also concluded that Tract 7 is covered bY Lease A. However the legal descriPtion ofthe lands covered bY Lease A is not sufficient to cover any lands added to the original "Lots 4, 10, 11, 12 and 13" as the result of the movement of the Colorado River. As a result, Lease A shou ld be amended to include the sPec ific legal descriPtton of Tract 7, as set forth in the Tract descriPtions heretn As indicated in Requirement No 12, Blue &GraY Resources, Inc' owns an overriding roYaltY interest in Lease A as the same covers Lots 4, 10,11,12 and 13" of the subject Section l3' Due to the addition of Tract 7 to the lands covered bY Lease A' we have credited Blue & GraY Resources, lnc' with its overriding roYaltY interest in Lease A as the same covers Tract 7 subject to the satisfact ion of the requirement below. In addition, originar governmentar Lot r 4 of Section l3 expanded from the East one-half of the Section into the west one_harf, and .Jnr"rr.ly, Lots g, rz andr 3 lost land as " .;; oi,t " .r'it of the centerline of the river' The rands covered by Lease B hlrein are described in the t-.u" u'"Iiots 6' 7 and 14" of Section 13' T7s-R96w' According to the information set forth i. r"rr. g*.her's opinion,ln"-ao,o'udo River moved from East to west thereby adding lands in the form or u".."tion, a ,* 14, which "."**o lands are described herein as Tract 3 and 5. However the legal description ortn" tu,r-0, "or"r"d by Lease B is not suffrcient to cover any lands added to the original Lot 14 as the result of tt",nor.*ln, or,n. cororado *"r' Therefore' Lease B should be amended to specifically include the regal descriptions of tru.t. 3 and 5 "on,*J nerein' tn addition' Leases A and B should be amended to state that ,,]t is the intentioi of the Lessors ," l.J;';; they do hereby lease all of their oil and gas mineral interests in the above described lands, including any ;;;"" rigrrts and riparian rights which may be owned or claimed bY lessors'" Requirement:Asstatedub:,,:,LeaseAshould.beamendedtoincludethespecificlegal descriptionTf rract.ras set forth inirr. r.u"t a.."rrp,i-orir'n"r"t". In addition you should obtain and place of record a correction of the Assignment oiou"*iaing Royalty rnterest to Blue & Gray Resources, Inc. described above in Requirement ilo' rz' whic-h adds the description of rract Supplemental Drilling & Division Order Title Opinion sWi+ sec. 13. T7S' R96W Garfi eld CountY, Colorado October 21,2013 Page 42 ThereintothelandscoveredbytheAssignm"lttli"lY:.^l"u'"Bshouldbeamendedto specifically include * ;;"i descriptions of Tiacts 3 and 5 contained herein' (Unleased Mineral Interest In Tract 3) As indicated in the ownershiP schedules set forth above, Puckett Land ComPanY owns a 50 007o mineral interest in Tract 3,which are described bY Mr Butcher in his Prior OPinions as'oaccretions lands attributable to Lot l4'" The mineral interest owned bY Puckett Land ComPanY is not covered under Lease A, and remains unleased of record Requirement:YoushouldobtainandfileofrecordanoilandGasLeasefromPuckettLand company covering its unleased mineral interest in Tract 3' Subsequent to the recording of such Lease you should satisff yourself uy un "*u*ination of the Garfieli county real property records that no documents were recorded between the certification date of this opinion and the recording or your Lease which would encumber or otherwise diminish your interest under this Lease' ln addition, a copy of the recorded Lease should be submitted to the undersigned for review and modification of this OPinton REQUIREMENT No. 20: (Highway Right-of-way under Tract 4) In comment No. 16 of his previous opinron l-u*a N**ber 18, 2012Mr'Butcher advised that: .opresentintheinstrumentsexaminedwasthatinstrumentidentified:n-l:',,.oropinionat$ Vlll.B.T.ThatinstrumentconveyedaninteresttotheStateHighwayCommissionofColorado. The conveying language states: ,,. . . hereby grant, bargain, sell and convey to the State Highway commission of colorado, u publi" "orpo.Jon, for the use and benefit of the Department of Highwaysofth.Stut.ofColorado,g,un..",anditsSuccessorsandassigns,forpresentandfuture highway purposes, the following deicribed real property ' ' ' " -(Emphasis added) There was no mineralreservationintheconve,*.".Theconveyinglanguagehoweverismoreanalogoustothe conveyance of a right of way rather than fee simple' s;*"'no*d of County Commissioners of the CountyofLoganv.Morris,362P.2d202(Colo.l96l).Accordingty,theundersignedhastreated that instrument as conveying a right of way and not.an interest in the oil and gas mineral estate' The Materials Examined includid "urr"n, oil and gut l"ut"' granted in favor of williams production RMT comoun, "or-oing ,to,t lands -in the eveni those instruments are later determined to have conveyed an interJst in the oil and gas mineral estate'" Based on the above discussion, Mr. Butcher directed that you should obtain and file of record a quit claim deed from the colorado Department of rransportation, as ,u"."rro, in interest to the State Highway commission of colorado, under which it conveys to puckett Land compunr,-u, owner of the oil and gas mineral estate under Tract 4herein, all of its interest in and to the mineral estate underlying the above referenced highway right-of- way. Nothing appears in the materials examined which indicates thatihis Requirement has been satisfied' Requirement:AspreviouslydirectedbyMr.Butcheryoushouldobtainandfileofrecorda conveyanceunderwhichtheColoradoDepartmentofTransportation,aSsuccessorininterestto thestateHighwayCommissionofColorado,conveysltoritsmineralinterestsintheabove Supplemental Dritling & Division Order Title Opinion SW4 Sec. 13, T7S, R96W Carfield CountY, Colorado October 21,2013 Page 43 referenced highway right-of-way to Puckett Land company, as owner of the oil and gas mineral estate under Tract 4 herein. In the event the Colorado Department of Transportation maintains that it owns an interest in the mineral estate underlying its highway right-of-way which traverses Tract 4 herein, it should commence an action in a court of competent jurisdiction to quiet title to such mineral interests. REQUIREMENT No. 2l: (Letters of Testamentary for the Estate of Nata Mason Franklin) comment No' 2l in th" prerious opinion by John S. Butcher dated November 18, 2012 advised that: .,present in the instruments examined was a deed from Donald L' McBee' as Personal Representative of the Estate of Nata Mason Franklin to Janis R' McBee and Margaret L' Sciarrino, conveying an undivided one-quarter of the oil and gas mineral estate under Lots 6' 7 and l4 of Section 13, Township 7 South, Range 96 West,6th P'M. The instruments examined did not include Letters Testamentary issued to Donald L. McBee as personal representative of the Estate of Nata Mason Franklin. The estate proceedings were apparently conducted in the District court in and for Mesa county, colorado in action no. 97PR282." Mr. Butcher directed that you should attempt to locate those Letters of record in Garfield County' Colorado' and in the event you were unable to locate the same, you should obtain and file of record a certified copy of those Letters. Nothing appears in the materials examined which indicates that this Requirement has been satisfied' Requirement: Certified Letters of Authority issued by the Mesa Count District Court in Probate Case No. g:p112gz evidencing the appointment of Donald L. McBee as Personal Representative of the Estate of Nata Mason Franklin should be placed of record in Garfield County' REOUIREMENT No. 22: Q{otice of Lis pendensl Appearing of Record at Reception No' 806031 is Notice of Lis pendens dated Augu st Z, Z0ll which gives notice that Union Pacific Railroad Company ("UPRC") and Ivy Energy, lnc., have commenced an action in the Garfield county District court, case No' 10cv37l' against williams production RMT company, LLc et al. as Defendants, to quiet title to the mineral estate underlying certain strips of land conveyed to upRC. The legal description of the parcels of land subject to the Lis Pendens includes a.,Tract 5,,,which is described as'!A strip of land (100) one hundred feet wide being (50) feet wide on each side of the center line of the survey of the Rio Grande Junction Railway company Survey"'located within...the SW/2 andtheNw/2 of Section 13, Township 7 South, Range 96 West," presumably Tract t herein' The undersigned has requested, and been provided with some of the pleadings involved inthe dispute' A review of these pleadings indicates that the disiute involves the interpretation of several deeds into the Rio Grande Junction Railway, predecessor to UpRC, as to whether the Deeds in question were simply right-of-way grants for the railroad, which did not vest any mineral interest in the Grantee, or whether they were fee simple conveyances which included a conveyance of the underlying mineral estate. As of the date of this opinion, the dispute is still being litigated. ownership of the oil and gas mineral estate underlying Tract 9 is credited to The union Pacific Railroad company based on the information set forth in Mr. Butcher's prior November 18, 2012 opinion' Requirement: All proceeds attributed to Tract 9 should be held in suspense pending a final determination in the above identified quiet title action. You should also obtain copies of the Suoplemental Drilling & Division Order Title Opinion swi+ Sec. 13. T7S. R96W Garfi eld CountY' Colorado October 21,2013 Page 44 recorded firings in case No. l0cv37r to determine the current status of the case' and monitor the caseaccordingly.Ifu_d..,."isissuedin.t,""u.",youshouldcausetheSametoberecordedin GarfieldCounty,Colorado,andprovideacopyoftheDecreetotheundersignedforreviewand further comment' directed to the Unleased Mineral REOUIREMENT No' 23: lnterests underlYing Tracts 3, 5, and t herein' If You ([Jnleased Mineral Interests) Your attention ts are unable to acqutre an Oil and Gas Lease covering these mineral interests, then You will have to obtain an Order from the Colorado Oil and Gas Conservation Commtsston which force Poo ls all unleased mineral interests lYing within the 165.63+ l- acre spacrng unit covering the SW/4 of Section 13, T7S-R96W'6ft P.M. Prior to commencing Your statutory Pooling Proceed ing, each mineral owner must be given the oPPortunitY to either enter into an Oil and Gas Lease or Parttct pate in Your proposed oPerattons Each force Poo ling order obtained from the Commission should be immediatelY placed of record to provide notice to a Potential Grantee that the Parcel has been forced Pooled bY Order of the Commtsston an Oil and Gas Lease covertng the unleased mineral interests Requirement:You should acquire in Tracts 3, 5 recording of anY additional , and t herein, and Place them Oil and Gas Leases You of record in Garfield should satisfli Yourself CountY' Subsequent to the by an examination of the Garfield CountY real ProP erty records that no docume nts were recorded between the effective date of this OPinion and the recording of Your Leases which would encumber or otherwise diminish Your leasehold working interest. lf You are unable to acquire an Oil and Gas Lease covering these mineral interests, then You will have to obtain an Order from the Colorado Oil and Gas Conservatlon Commission which force pools all unleased mineral interests lying within the 165.63+l- acre spac ing unit covering the SW /4 of Section 13,T'7 s-R96W,6'h P.M (Corporate Name Change and/or Mergers) In Mr. Butcher's November 18' 2012 Opinion W illiams Production RMT ComPanY is credited with several leasehold working interests and overriding royalry interests in the CaPtioned Lands' You have advised the undersigned that WPX EnergY RockY Mountatn' LLC is the corPorate successor to Williams Production RMT ComPanY Nothing apPears in the materials examined which evidences this fact. In addition,the undersigned has been unable to locate documentatt on in the records of the Colorado Secretary of State which confirms this fact' However , the ownershiP interests set forth herein are based on the information provided to the undersigned in Lease A covering Tracts l ' 2' As indicated on Exhibit "A" hereto, PDC EnergY'Inc. assigned all of its interest ual shares' You have recentlY 4 and'l herein to Caerus Piceance LLC and Caeru s Holding ComPanY LLC in eq advised the undersigned that Caerus Holding ComPanY LLC will assign all of its intere st in Lease A as to Tracts 1,2,4 and 7 to Caerus Piceance LLC. The ownershiP interests set forth herein are based on this information Requirement:You should confirm that WPX EnergY RockY Mountain, LLC is the corPorate successor to W illiams Production RMT ComPanY and documentat ion evidencing this fact should be recorded in Garfield CountY' If You determine that WPX EnergY Rocky Mountain, LLC is not the corPorate successor to Williams Production RMT ComPanY, the ownershiP interests set forth herein must be modified accordinglY' ln addition'you should Place of record an assignment under which Caerus Holding ComPanY LLC conveYs al I of its interest in Lease A to Caerus Piceance Supplemental Drilling & Division Order Title Opinion sWi+ sec. 13' T7S' R96w Garfi eld CountY' Colorado October 21,2013 Page 45 LLc, which Assignment shourd be submitted to the undersigned for review and further comment' Ifyouareunabletoobtainaconveyanc","o**n'chCaerusHotaingCompanyLLCconveysall of its interest in t ease A to caerus picean"" LLc then the owneriip inierests set forth herein must be modified accordinglY of record at RecePtion B and C herein) APPeartng Earl D' KeithleY, III ratifies, apProves 99303 is a "Ratification and confirms that certatn (Ratification of Oil and of Oil and Gas Leases Gas Lease" dated Fe Lease dated APril 8' 2008 15, 201 l, under which of Garfield bruary between Exxon Mobil CorPoration, Lessor' No.7 full force and effect'The ratification and Antero Resources Piceance CorPoratton' "recorded SePtember l6' Lease C herein, as being tn 2008 at RecePtion No'755685 of the records CountY,Colorado"' However , Lease C is recorded at RecePtton to Lease B herein, which No. 775146 The Memorandum of Lease at cites that the Lease was Lease is dated July 24,2008 and is by and between Kathryn M Tucker et al', Lessors'and Williams Production RMT ComPanY , Lessee,. Furthermore ,lt RecePtton No. 755685 actuallY relates appears from the material s examined that Earl D. KeithleY, III does not own an interest in the mineral estate covered by either Lease B or Lease C' Therefore the PurPose behind the above identified ratifi cation is not clear to tntr "*uH;: you shourd determine why Earl D. Keithley, L execut:l rh" above identified Lease Ratification and whether tt,"^,"*. was intendea u, u ,u.in.ation of Lease B or Lease C. If Earr D Ke ithrey, r1, c raim s to ::Tffi[;;ffi il*4h"ff ,rf:]il *'ill[::","ff: bY Lease B or C' documentatton undersigned for review and comment' REOUIREMENTNo.26 : (Deeds of ^ry.rrThat Encumber oir andGas Mineral Interests) The information set forth above in attalhment No. 1 .f th; opi;ion identifies those unreleased Deeds of rrust which currently encumber the oil and gas mineral Td/",, i1"1rn"]a lT:t::,iill'iving the lands described in the respective security instrument. i".n ", these Deeds of rrust contain ,o*. aypl oi A"ignment of Rents provision' As a result, you should contact each of tt " ,".,rr"a parties and request iirections as to the manner in which royalty payments and/or reasehold working interests should u" disperr",ii"ior.""*ity of title you should consider having thesecured"."o,..,.*".,teyourpi,i,iononoersalongwiththerespectiveMortgagor. Requirement: prior to making distributions of production proceeds to the Mortgagors identified on Anachment No. I hereto, e,i*;.""re -it::l:liirlctions from the Mortgagee allowing paymentofsuchproceedsdire.ctlytothe,",p""ti,.rurortgagor,orlisttheMortgageeinthe Division order along with ,n" r.'rJr,g"g"r and-obtain ;ffii9"*ee's -:-r^glature thereon' ln the eventyouobtainaneasemento.rigr'I-Jrwayfrom.anyoftheMortgagorsidentifiedintheDeeds of rrust described in Attachm.ni *o. l, you thJ;;;;; trtt ""-tuttd creditor execute the easement or right-of-way along with the respective surface owner' RE'uIREMENT No. 27: (spacing^and pooring) you have advised the undersigned that you intend to drillthe severar we*s to trst the williams ro* una 'Js formation.- oi the Mesaverde Group' which well will have a bottom hole location in the sw/a of the *0.r"", Section ,l iooJ* in the colorado oil and Gas conservatton commission records are order N"r. ++o-ii, 4,,g-zr& 510-;;:;hii vacated order No' 4i9-z as to the Nw/4 Supplemental Drilling & Division Order Title Opinion SW/4 Sec. 13, T7S. R96W Garfield CountY, Colorado October 21.2013 Page 46 and sw/4 of Section 13, Township 7 South, Range g6 west,6rh p.M. and established two approximate 160-acre drilling and spacing units for the NW/4 and SW/4 of Section 13, Township 7 South, Range 96 west, 6'h P'M'' for the production of gas and associated hydrocarbons from the williams Fork and lles Formations of the Mesaverde Group, to allow the equivalent of one well per l0 acres where each permitted well may be located downhole anywhere within the units. However, the order also provides that no such wells shall be located downhole any closer than 100 feet from the boundaries of the unit unless such boundary abuts or corners lands in respect of which the commission has not at the time of the drilling permit application granted the right to drill l0-acre density williams Fork or Iles Formation wells, in which event williams Fork or lles formation wells to be drilled upon the given drilling and spacing unit shall be located downhole no closer than 200 feet from the portion of the unit boundary which so abuts or corners the lands in respect of which l0-acre density downhole drilling for williams Fork and Iles formation wells has not been ordered by the commission. Nothing appears of record which evidences that the SW/4 of the subject Section l3 has been pooled for the production of oil and/or gas from the Williams Fork and Iles formations' Requirement: oil and Gas Leases A through E described herein as the same cover the SW/4 and of section 13, T7S-R96W should be pooled for the production of oil and/or gas from the Williams Fork and Iles formations of the Mesaverde Group and documentation evidencing such pooling should be placed of record in Garfield County' REQUIREMENT No. 28: ((Jnreleased oil and Gas Leases Beyond Primary Terms) The oil and Gas Leases summarized on Attachment No. 4 hereto are all beyond their primary terms but unreleased of record as to the subject Section 13. Nothing appears in the materials examined which evidences that these oil and Gas Leases have been extended beyond their primary terms by the production of oil and/or natural gas' Requirement: Each of the oil and Gas Leases identified on Attachment No' 4 hereto should be released of record as to the subject Section 13. In the alternative you should satisfy yourself that each such Lease has expired due to the absence of production from the entire lease premises and documentation of such lease expiration, such as an "Affidavit of Non-Production"' should be placed of record. REOUIREMENT No. 29: (Existing Contrscts and Agreements) Your attention is directed to the Gas Contracts' pooling Documents, and other Industry Agreements identified on Attachment No' 3 hereto, which are noted in the materials examined and which may or may not affect your operations. tncluded on Attachment No' 3 are summaries of several Gas purchasing and processing Agreements which were identified in the Prior opinions' Some of the referenced Gas contracts are most likely expired, but nothing in the materials examined indicates whether the identified contracts are terminated or have been extended' Requirement: you should be familiar with all of the documents listed on Attachment No' 3 and ensure that your operations are in compliance with any applicable terms' You should also determinewhetheryourinterestsintheCaptionedLandsaresubjecttotheidentifiedGas Purchasing and Processing Agreements' Suoplemental Drilling & Division Order Title Opinion sWi4 sec' l3' T7S' R96w Garfi eld County' Colorado October 21,2013 Tract Factor: Tract N umber in Current oTractFactor:4.19 Tract N umber in Previous o I4.19 2.39922.39 7.66103'7.66 11 57.58 70.40 t2 4 4t2.82 4.6212-A 54.62 8.20l368.20 4.85t7'7 4.8520 49.172l 9.25 59.2r 2l-B I 8 80.79 4.l l21-c 94.1I 6365.ITotal:23-B 6365.ITotal: Prior to the distribution of Production proceeds,all parties owning an interest tn the Production of oil and gas from Tracts 1 through 9 described herein must agree to the use of Requirement: the Tract Factors set forth herein for the areas covered by each such Tract which agreement should be evidenced in writing, such as an executed Stipulation of Interest or a fullY executed Division Order which sets forth the exact manner in wh ich each PartY's interest has been calcu lated. In the alternattve , a full survey should be comP leted as to Tracts I through 9, the results of which can then be used as the basis for the distribution of the Proceeds of Production As indicated in the "Mater ials Examined" section of this (Effec five Date of OPinion) Opinion, the documents submitted to the undersigned for examination are current as of as of August 23'2013 at 7:00 a.m. Requirement: prior to distributing the proceeds of^production attributed to !e captioned Lands' you should satisff yourself, uv - ".**ination of the c"""'o counu' colorado real property records, that no intervening ao"u*tni' were record"o "t'i"ti tr,,e capiioned Lands between the effective date of this opinion uno'ii" iur" of firsr pr"d;;,; ttrat wouta alter and/or encumber the ownership interests set forth herein' REQUIREMENT No. 32 : (Distr.ibuti.on of production proceeds) Subject to the.Requirements set forth above' the proceeds of production att.ibut"d to the prod;;;;ir". tne wi,Lil's n"rt ""a Ites formations of the Mesaverde Group underling tt " toi.o:+ r_ acrerrii ;;;-;vering ttre swl+ oi section 13, Township 7 South, Range 96 west, 6,h p.M., Garfield county, cotoruaol-i"v u" Jiltriu.uted according to the ow^nership interests set forth on Schedule Nos. I and 2 attached hereto. your attention is howeJ"r iir""T"a to the fact that' pursuant to $34-60- 118'5 of the Colorado Revised Statutes, payments. of pro.ceeds a.,iu"a from the sale of oil, gas or related hvdrocarbons are required to be paid not rulJtnun six mlnths "t"rin" first day of the month followingthe date oi first sale. Thereafter, such payments ,rruii urrnuae on a n,ontr,iy turis not later than 60 days for oil and 90 days for gas and associated products.fo]lolvine ii't ""J"rthe calendai;Flff;;hitL.:l,l*o'ent production is sold' payments may be *ual unnuully if the igir"g nsum due a payee for 12 consecutive months is $ r 00'00 or less' compliance witrr tt e iiw" ["yir""1 o.uJiin"-, o,ay be susp^endld when payments- are withheld due to i) a failure or deray by the p"v." io .oni,* in *.iiing-tir" nu.v.",1^rru"tionui in;rest in the proceeds after a reasonable request in writing by the .puyol.fol ,r"h cJnfi'*ution; ii) u '"u'onuUte doubt Uy ihe payor as to the payee's identity, whereabouti, or clear title to un ini"r.rt in pro.."dr; o, iio riiig*ion that.would afiect the distribution of payments ,o u puy."lii pffin,, on tt"," p.*";, "i produciion "r" ""i n,"ae within the time periods set forth in the statute, interest is due at a rate equal;1;; times the oir"ount rate at the Federal Reserve Bank of Kansas city. In addition, every payment of producii", pr"""1as. shall ."iiortr, the information required under the statute which includes, but is noi timited to, the i"r"ripii"" of the lease, unit or well, the month and year of the sale' the price, the payee,s i";;;il so forth. rt. rJilr"," provide tt. puv"" with itre required information willsubject i; ;;;;; d th" penalties set forth in c'R'S' $34-60-121' Requirement:FullyexecutedDivisionordersbasedontheownershipschedulessetforthherein shouldbesecuredfromallpartiesidentifiedhereinu,o*ninganinterest.inproductionfromthe captioned Lands. The paymen, "i "ir production pro"""at riust be distributed according to the requirements set forth in the above identified statute' Should you have any questions regarding the Information contained in this opinion, please call me at your Suoolemental Dritting & Division Order Title Opinion sWi+ S... 13, T7S. R96w Garfi eld CountY, Colorado October 21,2013 Page 48 convenlence File #2107A Hovey Law Firm P.C' By: Susan L. HoveY Attachment No' I Deeds of Trust, Mortgages, r"og*".ir,iens & other unreleased Encumbrances Deeds of Trust recorded subsequent to Fe.bruary 22, 2012 gt 7:00 a.m., covering the SW4 of Section 13' -n*itiU 7 South, Range 96 West' 6t" P'M': None in the materials examined (Jnrereasecr Deeds of Trust contained in the previous opinion dated November rB, 2012 by John s' Butcher' covering the SW4 oti""tion 13' Townshipi ioun' Ringe 96 West' dn P'M': Suoolemental Drilting & Division Order Title Opinion sWi+ s... 13, T7S. R96W Garfi eld CountY, Colorado October 21,2013 Page 49 l. Document: Dated: Recorded: Mortgagor: Mortgagee: Lands Encumbered Secures: Deed of Trust February 27, 1987 Book 707, Page 60 William W. Wilde Battlement Mesa Partners Tract 6 (Surface Estate) A loan in the principal amount of $5'450 Deed of Trust December 20,1989 Book777, Page 400 Lewis G. Holtsclaw Battlement Mesa Partners Tract 6 (Surface Estate) A loan in the principal amount of $2'725 2. Document: Dated: Recorded: Mortgagor: Mortgagee: Lands Encumbered Secures: Suoolemental Drilling & Division Order Title Opinion sWi+ Se.. 13, T7S. R96W Garfreld CountY, Colorado October 21,2013 Page 50 J. Document: Dated: Recorded: Mortgagor: Mortgagee: Lands Encumbered Secures: Deed of Trust tuJy 24,1991 Book 809, Page329 George A. CathY, Jr' Battlement Mesa Partners Tract 6 (Surface Estate) A loan in the principal amount of $2'725 Deed of Trust May 22,2001 Book 1256, Page l0 William L. Nelson Battlement Mesa Partners Tract 6 (Surface Estate) A loan in the principal amount of $2'725 Deed of Trust May 22,2001 Book 1256, Page 18 Lynn J. Shore Battlement Mesa Partners 4. Document: Dated: Recorded: Mortgagor: Mortgagee: Lands Encumbered: Secures: 5. Document: Dated: Recorded: Mortgagor: Mortgagee: Suoolemental Drilling & Division Order Title Opinion swi+ sec. l3' T7S, R96w Garfi eld CountY, Colorado October 21,2013 Page 5l Lands Encumbered: Secures: 6. Document: Dated: Recorded: Mortgagor: Mortgagee: Encumbers: Secures: Related Documents 7. Document: Dated: Recorded: Mortgagor: Mortgagee: Encumbers Secures: Tract 6 (Surface Estate) A loan in the principal amount of 52'725 Oil and Gas Mortgage September 27,2005 Book 1736, Page 479 (Reception No' 684553) James S. Harrell FirstNational Bank & Trust Co' of Ardmore' OK Overriding royalty interest of Debtor under Oil and Gas Lease A A line of credit in the amount of $225'167'00 UCCFinancingStatementrecordedinBooklT36atPage4T4andContinuation Stut.*"n, ,""oid"d at Reception No' 785605 Oil and Gas Mortgage November 8,2006 Book 1 862,Page689 (Reception No' 710945) James S. Harrell First National Bank & Trust Co' of Ardmore' OK Overriding royalty interest of Debtor under Oil and Gas Lease A A line of credit in the amount of $200'000 8 Supplemental Drilling & Division Order Title Opinion SW/4 Sec. 13, T7S. R96W Garfield CountY, Colorado October 21,2013 Page 52 Document Dated: Recorded: Mortgagor: Mortgagee: Encumbers: Secures: Document Dated: Recorded: Mortgagor: Mortgagee: Encumbers Secures: Mortgage, Assignment, Security Agreement' Fixture Filing and Financing Statement January 14,2009 Reception No.762147 Antero Resources Piceance Corporation JP Morgan Chase Bank, N'A' The interest of Debtor under Oil and Gas Lease C A line of credit in the amount of $600'000'000'00 Mortgage, Assignment, Security Agreement' Fixture Filing and Financing Statement February 20,2009 Reception No. 764589 Antero Resources Piceance Corporation Lehman Commercial PaPer, Inc' The interest of Debtor under Oil and Gas Lease C A line of credit in the amount of $275'000'000'00 9 Supplemental Drilling & Division Order Title Opinion SW4 Sec. 13, T7S, R96W Garfi eld CountY, Colorado October 21,2013 Page 53 I. Easements & Rights of WaY: Attachment No.2 Easements, Rights-of-Way & Other Surface Use Documents l. Document: Dated: Recorded: Grantor: Grantee: Lands Traversed Grants 2. Document: Dated: Recorded: Grantor: Grantee: Lands Traversed: Grants: Right-of-Way April 11, 1985 Book 53, Page26 Englebrett RuPP Sadie B. Streight S Section 13: Lots 4, 10, I l, Garfi eld CountY, Colorado A right-of-waY for a ditch w 12, and 13 P Right-of-Way October 6,1954 Book 280, Page 359 Paul Nolte and Anna Nolte State Highway Commission of Colorado Township 7 South. Range 96 West" 6th P'M' Section 13: Lots 4 and l0 Garfield CountY, Colorado 7.466 acres for present and future highway purposes Supplemental Drilting & Division Order Title Opinion SW/4 Sec. 13, T7S, R96W Garfi eld CountY, Colorado October 21,2013 Page 54 3. Document: Dated: Recorded: Grantor: Grantee: Lands Traversed Grants: 4. Document: Dated: Recorded: Grantor: Grantee: Lands Traversed Grants: Document: Dated: Recorded: Right-of-WaY April 10, 1986 Book 688, Page754 Ivo E. Lindauer Town of Parachute, Colorado Township 7 South. Ranse 96 West' 6th P'M' Section l3: SW4 Garfield CountY, Colorado 80footwideright-of.wayacrossTractShereinforaroadandpublicutilities Easement May 15, 1998 Book 1068, Page 678 Town of Parachute, Colorado Sidney R. Lindauer Township 7 South. Range 96 West' 6th P'M' Section l3: SW/4 Garfield CountY, Colorado 20 foot wide easement across Tract 6 herein for irrigation Right-of-way March 1,2000 Book I l79,Page 139 Town of Parachute, Colorado 5 Grantor: Suoolemental Drilling & Division Order Title Opinion sWi+ se.. t3' T7S, R96w Garfi eld CountY, Colorado October 21,2013 Page 55 Grantee: Lands Traversed: Grants 6. Document: Dated: Recorded: Grantor: Grantee: Lands Traversed: Grants Petroleum Development Corporatton Section 13: SW/4 Garfield CountY, Colorado Right-of-way across Tract t herein for a pipeline Easement February 28,2005 Book 1668, Page 443 Battlement Mesa Partners Comcast of Colorado/Florida Inc' Section l3: SW/4 Garfield CountY, Colorado Easement across Tract l3 herein for broadband communications rr. Notices of underground Facil itiesz The forowing companies have recorded a "Notice of (Jnderground Facilities" against the Captioned Lands: None in the materials examined rrr. Request for Notice of surface Development: The following Reques.ts for Notification of surface Deveropment have bteen recordea ogoinri-tii taptioned Lr";;,";';;'giveTotice"that the party recording the document requests written notification ,t ,ry-a;; ail ,lppticiiois fir oeuero_pment, ani alr other proposed surface developmeni""iiriri^ in the desiribed lands pursuant to C'R'S' 521-65'5-102 et seq': None in the materials examined IV. Other Surface Use Documents: None in the materials examined Suoolemental Drilling & Division Order Title Opinion swi4 Sec. 13. T7S- R96w Garfreld CountY, Colorado October 21,2013 Page 56 Attachment No' 3 Gas contracts, pooling oo".*"nt, & other rndustry Agreements I. Gas Purchasing, Gathering, Processing and Industry Agreements: Agreements recorded subsequent to !\lyaw 22, 2012 at 7:00 a'm'' covering the sw/4 of section 13' 'i"r*rtniP 7 South, Range 96 West' 6"' P'M; None in the materials examined Agreements contained in the previous-opinion dated November 18, 2012 by John S. Butcher, covering the SW4 of Section 13,";;;;;itp 7 South' Rongu 96 tnest' 6't' P'M': l. purchase & Sale Agreement dated December 3, r999 between yates petroleum corporation and Barrett Resources CorPoration' 2.Purchase&SaleAgreementdatedDecember3,lgggbetweenYatesDrillingcompanyandBarrett Resources CorPoration' 3. Purchase & Sale Agreement dated December 3' Resources CorPoration' 1999 between ABO Petroleum Corporation and Barrett 4. Purchase & Sale Agreement dated December 3' Resources CorPoration' 1999 beftveen MYCO industries' Inc' and Barrett 5. Letter Agreement dated November 15' DeveloPment CorPoration' lgggbetweenPuckettLandCompanyandPetroleum 6 Letter Agreement dated November 19, 1999 between Blue & Gray Resources, Inc. and Petroleum DeveloPment CorPoration II. Pooting Documents: None in the materials examined Suoplemental Drilling & Division Order Title Opinion swi+ sec. 13. T7S' R96W Garfi eld CountY' Colorado October 21,2013 Page 51 1. Dated: Recorded: Lessor: Lessee: Lands Covered: Attachment No' 4 Unreleased Expired Oil and Gas Leases May 21, 1990 Book 784, Page 751 at Reception No' 415094 Colorado DePartment of HighwaYs Barrett Resources C orPoration Township 7 North. 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E\6b =5silE\{[. !o \ + N\ \ s ft( $t$ eNx -*... g{ lsss ('soeyy) , tg'/fe t _1,./9,9r.oos o (n nA>1 -%x lrl U CDuJ 55 a 6y1. sE U)Ldoz.o =q EeU-L<OF K6oIEZoo -Lrs 5tratdco J-O ta H4>() ? Ee a Eo. vt-J -bHr?<-.r F u ci7 v z-t!_\>Jo*-Pxd .'a Ldx.iiscl.fUJ< o)FL!-l rr: o z.LrrNitdrJ :F: LrJ= (fFl :I: zO;*Rga SiSEe42ts. fr ,., o zoGl Eicf=*PHOJ _EOPB62J RR=H5,* *Io F.e ;3 E NFP=Str)Nof(,r)r.) t9 uJ O uJazaao ( ) ('soeyy) ,00'gfe t $sEH 'O\U *-t\\..\ _ (( a J { .! l g{ E!\ N .il g \\ c N (a I frr.N IlI ]#rri:frFItlilUllrl Iltl lflltr4llfl Lil{h tr[$I, Illl IRecept ion*:07t2st2014 03 E3r794 t of 1 Pec Fee 16 34 Ptt J6an Rlb€rico:$.l1.00 Doc Fee.O 00 GARFIELD COUNTY CO STATEMENT OF AUTHORITY Pursuant to C.R.S. 538-30-172, thc undersfined executes this Statement of Authority on behatf of Ceolrrl Phcancc 6 thabd LiatiLty Compcny . (COrpOratiOn, liability company, general partnenhlp, registered limited liability partnerchip, registered llmlted limited partnership, llmited partnershlp assoclatlon, government agency, trust or other), an enttty than an individual, capable of holding title to real property (the "Entity'), and states as follows: The name of the Entlty is Cerui Pl@noc, LLC and ls formed under the laws of Co{omdo The mailing address for the Entity is 000 lTur Slrool Sb 1000N Donvo CO, 80202 The name and/or porltion of the penon authorired to execute instruments conveylng othenvise affecting tltle to real property on behatf of the Entfi is Michaol Rynsa.lon The limitations upon the authority of the person named above or holding the posklon descrlbed to bind the Entity are as follows (if no limitations, insert "None"):Ltflit€d b th!.nd s.O.nitttlof t nd Usc ChrrUG P.rmil Appllcrtlon lor lh. n*Ct! SWD l-14 ln cctlon Wall other matters conceming the manner ln whlch the tntlty deals wtth any interest in real property are no other matter, leave this section blank): ExECt TED tfris 15il Oay or T,^"r,20J_{_ I Slgnature: Name Iftle (if //,STATE OF lss. couNwoF The before me this day of on behalf of Witness my hand and official seal. My commlss ion erplres, & -,b.-- 2U5 (Date) Garficld County lsE^rl Publk) il STATEMENT OF AUTHORTTV Pursuant to c.R.s. $38-30-172, the undeclBned executes thls statement of Authority on behalf of Csorus Pisrrcs a Lirabd LbUfty Gqnpsny (CorpOration, lim liability company, general pa rtnership,registered lim ited liab i lity pa rt ners h ip, registered lim ited limited partnership, llmited partnership assoclatlon, govemment atency, trust or other), an entity than an lndivklual, capable of holdlng tltle to real property (the "Entitf), and states as follows: The name of the tntfi ls C*rut Ptcoance, LLC and is formed underthe laws of cdorrr,ic The malllng address for the Enilty b 000 tTlh Strcct, Sta 160ON O€nvcrCO,@2O2 The name andlor poshion of per3onthc authorized to execute instru ments conveying othenr/ise affecting fith real property on beha tf of the Ent ity ls Progrraah PCt.lnc-dbr.ftoFaJr.Co.rrfrrg,to The llmitatbns upon the authorlty of the percon named above or holding the poshlon descrlbed to blnd the Entity a5 follows (if no limitatlom,'None")Linitad b ho prcparelbrl srd .ubfirlthl o,are lnserttdUr€Chrflge 9ermit Applicatloo loJ the Nolte swD 1-14 lojection Well ot her metters concern ing manner which Entfty aretheinthedealswithanyinterestinrealproperty no other matter,leave this section bla nk): ExEcr.mD tn* 231"v rt S8mture: Name Title (if The A-r, 201!__ STATE OF COUNTY OF before me this day of on behalf of /r/r,/, lss. I Witness my hand and offrrialseal. My comrnission exptres: ll|h,h' ,tn,n 'l (oatel Garfield County Publk) ilt STATEMENT OF AUTHORTTY Thc name of thc Entity b FCl, hc. rllbh Proeirrhn hc rnd is formcd undcr thc hws of Cobrdo Tbe mailing addrcrs forthe Entity h P.O.Bct@ @6qla0 TIE .ndlor posltbn of the pcn'on ruthorEad to Cxecutr lmtrunrcnts convaylry cncumbcrln6mme othcrwlsc rffectlng property on behalf of thc Entfi is ${Jna o.ilftt!.fith to raal The llmitatbns upon the authofi of the person named abrye or to bird the Enfity arc as fofiows (if no limhations, insert ,None,]:holdlg thc poeitton descrtbed ilm. th€manner ln whlch thc Entity dcab with any interest real prop€rtylnOthermrttersconccmlng arenoothermatter,have this sectlon blenk): O(ECUTID this day of Slgnaturu:^lilrme {prlnted}: I?th {tf anyl: The instrumcnt was 20-4-. srArE or f nlofado r couilwoF rtnrrer lt? before me this day of on bclulf of Witncss my hand rnd offEhl scel. My conrmlsskcn arfirircr: W Garficld Coung IsE r.l FICU Colch #13A-13o o#13C-13 4158-13o o#13D-1i ti+3a-tqo o#14^-14 ilii-]1: sliiE.ii 7i!t!2' o""n '*++a-tq o o #11^-24'*+qc-lco o#118'24 4sivo t-t+o o411c-24 Edge of Existing Berm tt"o ,'"oo cJ- lI Eerm ---" Condensote lnhctiil Skid Ditch Single txisting Berm /4) Lo* Prolile finks for lnjection Skid Contointuent Equipment Remove Cuttings ond Remediote Pdd Porimeter (4) Quod Seperotor fonks G) Ptoduced . Woter Tonks \ \ SePerolor t-'' Caerus Oil & Gas LLC PROPOSED SITE PLAN FOR SCALE: 1' DATE:11- NOLTE #14-796 DRAWN BY: SECTION 14, T7S, R96W, 6th P'M' sE 1/4 sE 1/4 txisting Fence -*'- Cotch Existing Cotch Bosin / Existinq Edqe of Disturbdnce \/) Existing l'/fdge txcess Moteriol '':1 .l Edqe 1 Drdinoge Cotch Cotch Disturbonce - '18" Culvert Berm Edge ol Disturbonce cotch Eosin (. Di rector's Determination Nolte SWD 1-14 Smalllnjection Well MODIFICATIONS: - Move 4 injection tanks into the existing Nolte pad containment _ Move injection skid from proposed ,pi", pad and move it down onto Nolte pad SESE of Section L4,f7S, R96W, Garfield County' CO do n I t s,an d u sl n g existi n9 N o It e c o nta n m ent th a WI be la rg e e nou g to hath By hi a d d iti ona ta n ks,Cae rus W m nl m VE th e VI CW S he d an d t he a mou nt o f tr affi t hat w see n fro m 170 a n d th e loca a reas A SO,t u ks W a rea d v be m ovl n9 onto an d off of C c N o It e pad fo o h a U lin g.A tru ro ute WI b e e sta bl ed for WA te h a U le rS to un oash witho ut a d d iti on a tra ffic rou tes o pad stu rb a n ce.Botto m n e th ts m ove of nJ ecti k ( c d e q U p m e nt WI m ze VI su m pact,it W m m VE th e tota d istu rba nce fo n m th e a n N olte a rea,a n d a low fo ea er o pe rati o ns by h a VI n9 a a ct IV ty on on e p a d a n d u t I I s that facilitY for truck traffic' IBIT FE October 10,2014 Shauna DeMattee Director of Business Development Progressive Consulting P.O. Box 863 Lafayette, CO 80026 DIRECTOR DETERMINATION - Puckett Land Co. (Operator- Caerus Piceance, LLC), Nolte SWD 1-14 lnjection Well, Small (File GAPA-7985) Dear Ms. DeMattee: This letter is being provided to you as the authorized representative for Pucket Land Co. and Caerus Piceance, LLC in regard to the General Administrative Review Application for an Injection Well, Small, known as the Nolte SWD 1-12 lnjection Well and as represented in Exhibit A. The proposed use is locatec southwest of the Town of Parachute of the US 6 Frontage Road on property alsc known by Assessor's Parcel No. 240913300013. The Directo/s Decision on the Application is based on the following findings anc subject to the Applicant's representations and conditions of approval. 1. That proper public notice was provided as required for at Administrative Review Land Use Change Permit. 2. That for the above stated and other reasons the proposed Land Use Change Permit for the Caerus Nolte SWD 1-14 lnjection Well, Small is in the best interest of the health, safety, convenience, order, prosperitl and welfare of the citizens of Garfield County. 3. That with the adoption of conditions, the application is in ge conformance with the 2030 Comprehensive plan, as amended. 4 That with the adoption of co nd itions the appl ication has adequately the re qu reme nts of the t,a rfield Cou nty L a nd Use an d Deve lo Code,AS a m end ed A Directo/s Decision is hereby issued approving the Application subject to following conditions: Conditions Prior to lssuance 1. An impervious liner made of a membrane or bentonite shall installed as a secondary containment to prevent pote conta m inatio n of hig h grou nd wate r n the area Con structio n d rawing shall be submitted and reviewed by the Garfield Cou Engineer demonstrating the type and installation method prior to issuance of the Land Use Change permit. nty Co nt for the 2. The Applicant shall provide an explanation as to the permitting statu of the storm water Management Plan prior to issuance of the Lan Use Ch an ge Perm it.Thi S explanatio n shall be reviewed by the Garfi el Cou nty Con tract Eng tn eer prior to is sua nce of the L a nd U SE C ha Permit Other Conditions 3 That al representations made by the Appl icant in the a pplication sha be conditions of ap proval un less S pecifi ca lly alte red by the Boa rd Co unty Comm tssro ne rS 4. That the operation of the caerus swD 1-14 lnjection well, small sha be done in accordance with all applicable Federal, State, and regulations governing the operation of this type of facility. 5. The facility shall maintain compliance with CDPHE Storm Management Permits, Drainage and Grading Plans, Reclamation Erosion Control Plans for the site. 6. The Applicant shall maintain all required CDPHE permits for the facil inctuding any applicable air quality, ApEN permits, 7. lmplementation of the Applicant's Dust control plan is required. 8. Diffuse Knapweed has been identified in the vicinity of the site. Applicant and Operator shall monitor and control any weeds, includ Diffuse Knapweed, in the vicinity of the site and take measures control State and County listed noxious weeds on at least an an basis, 9. The Applicant shall maintain all required COGCC permits and forms the facility and.shall comply with all conditions or requirements of sa permits and forms. 10.The facility shall maintain compliance with COGCC No Standards/Regulations and the facility shall be required to utilize electric pump as represented. lf future compliance issues a identified the Applicant shall provide noise mitigation in order achieve compliance along with a technical evaluation by a qua professional to confirm compliance. 11.The Applicant shall comply with all SPCC Plan provisions and keep the plan current and updated for any changes to the facility. 12.The facility shall maintain compliance with Section 7-306 Lighting, all lighting to be directed inward and downward toward the interior the site. Facilities and storage tanks shall be painted a non-gla neutral color to lessen any visual impacts. 13.The Emergency Response Plan provided with the Application sub including contact information shall be kept updated. 14.The Applicant shall comply with their Noxious Weed Management P including the best management practices. 15, Hours of operation for the injection well pump is effectively 24 hours day. However other support or maintenance activities should conducted between the hours of 7 a.m. and 7 p.m. 16.The subject site shall be limited to the previously disturbed po(ion the site. Total subject site area shall not exceed 6,320 square feet. 17.Total water storage shall not exceed 5,000 bbl., including condensate tanks. This Directo/s Determination will be fonryarded to the Board of Cou Commissioners for a period of 10 days so that they may determine whether not to call up the application for further review. Once this time period has with no request for review or public hearing, and provided all relevant condit of approval have been resolved the Land Use Change Permit will be issued. Please contact this department if you have any questions. Sincerely, (-/* F,fth:Jbfrr,^frffil Director of Community Development Department CC: Board of County Commissioners Kelly Cave, Assistant County Attorney 4 Exhibit A Site Plan Nolte SWD 1-14 Injection Well Pad I I ehtig 3& aa.1& get rc*t (.) I I t I I I I I I ,, I I I I I I \ X lit,It I t t lsHEEr lt I - scrLt. r" - 0Oo^rt 63- Jt-1.ol^r{ lll t.0.i(v 6-lr-1., P.r 0 Cacrur Plooance U.Cffi pR0P06t0 radJeclloN PAD s€c'llo{ r., r7s. Rgaw' 6rh P,M. sE t/4 3t 1/4 , II I I I I I It I I II I II [ut ed|tr, Mnqa $rr. ,) 4 t II 1 I \ rttl!Nclrollt rl.-,!6xftL P^o o o\: o I 6 0 o o 0 \ t , JI I I I ,l z\.t I I Nolte 14-796 Well {f,}rolr$f. 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