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Home My WebLink About944666 Recording requested by and return to: Hallador Petroleum Company 1660 Lincoln Street. Suite 2700 Denver, CO 80264 STATE OF WYOMING 1 ~ § COUNTY OF LINCOLN J RECEIVED 1/13/2009 at 2:45 PM RECEIVING # 944666 BOOK: 712 PAGE: 840 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER. WY ASSIGNMENT OF OIL AND GAS LEASES OOû84'O KNOW ALL MEN BY THESE PRESENTS: That, Hallador Petroleum Company, whose address is 1660 Lincoln Street, Suite 2700, Denver, Colorado 80264 herein called "Assignor," in consideration of Ten Dollars ($10.00) and other good and valuable consideration to it in hand paid, the receipt and sufficiency of which are hereby acknowledged, does hereby ASSIGN, TRANSFER, SELL, SET OVER and CONVEY unto S. Craig Settle, 5897 South Fulton Way, Greenwood Village, Colorado 80111, his successors and assigns hereinafter referred to as "Assignee", all of Assignor's right, title and interest in and to those certain Oil and Gas Leases located in Lincoln County, Wyoming (sometimes hereinafter the "Lease" or "Leases"), more particularly identified and described as follows: SEE ATTACHED EXHIBIT "A" Assignor reserves to itself, its successors and assigns, an overriding royalty interest of three percent of 8/8ths (3.0% of 100%), in and to all of the oil, gas and other hydrocarbons produced, saved and sold from the assigned interest in the Leases as set forth on attached Exhibit "A" during the terms thereof, including any extensions of said leases. It is the intent of the parties that an 84.5% proportionately reduced net revenue interest be delivered to Assignee. Said overriding royalty interest shall be rree of all development, production, operating expenses and post production costs. Said overriding royalty interest shall be computed and valued in the same manner and shall be subject to the same allowable deductions as would a federal royalty; except, however, said interest shall bear and pay currently its portion of gross production taxes, pipeline taxes, and all other taxes assessed against the gross production subject to said overriding royalty interest. It is agreed that nothing herein contained shall impose upon the Assignor, its successors or assigns, any duty or obligation to develop or operate the property covered by the Leases for oil, gas or other hydrocarbons, nor to maintain the Leases in effect by the payment of delay rentals. However, the foregoing notwithstanding, in the event Assignee desires to release, relinquish or surrender all or any part of the lands and leases herein assigned, Assignee shall notify Assignor at least thirty (30) days in advance of the anniversary date specified in the Lease or Leases, or thirty (30) days in advance of the date to be released, relinquished or surrendered if other than the anniversary date of a lease, and Assignor shall have ten (10) days after receipt of such notice within which to give written notice of its election to take reassignment of the Lease or Leases or portion thereof to be surrendered. Should assignor elect to receive reassignment, same shall be delivered by Assignee not less than ten (10) .' days prior to the anniversary date of the lease or the proposed date of surrender. Any reassignment under the terms hereof shall be free and clear of all liens and encumbrances created by, through or under Assignee. Provided, however, Assignee shall incur no liability for failure to offer reassignment under the provisions of this paragraph where such failure is unintentional and inadvertent. Assignment of Oil and L.....s Leases Hallador Petroleum Company, Assignor S. Craig Settle, Assignee Page 2 OOû84=1 In the event the Leases and the lands covered thereby, or any part thereof, are pooled or consolidated with other lands and leases into voluntary units, or into units as established by any governmental authority having jurisdiction, and if said Leases or any part thereof are pooled accordingly, then the overriding royalty interest herein reserved shall be reduced in the proportion that the acreage burdened by said overriding royalty interest bears to all the acreage included in any such pooled unit. In the event said Leases cover less than the entire fee simple mineral interest or if Assignor owns less than 100% of the leasehold working interest in said Leases, the overriding royalty interest herein reserved shall be reduced proportionately. This Assignment shall be subject to the terms, provisions, and conditions of that certain Letter Agreement dated January -'.L, 2008, by and between S. Craig Settle and Hallador Petroleum Company. This Assignment is made without warranty or recourse of any kind, express or implied, and is made subject to all existing lessor royalty, which shall be borne by Assignee to the extent of the interest herein assigned. This instrument and all the terms, covenants, conditions and reservations herein contained shall be binding upon and inure to the benefit of Assignor and Assignee, their respective successors and assigns, and shall be deemed covenants running with the leasehold estate and interest assigned hereby. }, J IN WITNESS WHEREOF, Assignor has caused this instrument to be executed on the ~ day of January, 2008. By: V' tor P. Stabio Chief Executive Officer and President Assignment of Oil and ~ ~s Leases Hallador Petroleum Company, Assignor S. Craig Settle, Assignee Page 3 AKNOWLEDGEMENT STATE OF COLORADO 1 r § COUNTY OF DENVER J 11-4 00&842 Itt CommIssIon expires oeml2011 lan S ders, Notary Public 166 incoln Street, Suite 2700 Denver, Colorado 80264 enenen-i CD CD CD 0 ~~~:E -. -. -' :J o 0 0 00 :J :J :J ::T W N N-' !':>~9N »Z»O rmrZ r· r 0 .. Z·' ;:+ N ::T Z -~ en m Z -~ en N c en » ~ ->. 01 01 .þ. CD CD I !!!. ñ) 0. o , -c CD .... , o CD c 3 r r -c 01 "- ->. 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