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HomeMy WebLinkAbout949701CONVEYANCE OF TERM OVERRIDING ROYALTY This Conveyance of Term ORR, made this '2-15t ay of June, 2009, by and between O'Hare Energy Resources Corporation, 1703 South Wheeling Way, Aurora, CO 80112, hereinafter called Assignor and Arkoma Production Company of Texas, Inc., 5950 Berkshire Lane, Suite 1400, Dallas, TX 75225 and Triangle USA Petroleum Corporation, 521 Third Avenue S.W., Suite 1250, Calgary, AB, Canada T2P 3T3, hereinafter collectively called Arkoma, Triangle or Assignee(s). Assignor, named above, owns certain overriding royalty interests in Oil, Gas and Mineral Leases (the "Leases") covering lands in Lincoln and Uinta Counties, Wyoming (the "Lands"). The Leases and Lands are described on Exhibit "A" to this Conveyance. For adequate consideration, the receipt and sufficiency of which is hereby acknowledged, Assignor transfers, bargains, sells, assigns, transfers and conveys to Assignees, in the percentages indicated below limited Term Overriding Royalty interest equal to 0.27600% of 8/8ths (.0027600) (the "Term ORR") in all of the oil, gas, and other minerals produced, saved, and marketed from all of the Lands and Leases payable solely out of the gross proceeds, saved, and sold in an amount equal to an aggregate of $ 431,952.00 calculated with respect to all the Lands and Leases as a group, but only for a term until the Assignees together have received a total of $ 431,952.00. The Term ORR Assigned to Assignee is subject to the following provisions: 1. The payment shall be paid to Assignee in the following shares: Assignee % share Arkoma 66.67% Triangle 33.33% 2. The terms and provisions of the Leases, any amendments, corrections, additions, or modifications of the Leases made prior to or after the execution of this Assignment. Assignee agrees that future amendments, corrections, additions, or modifications of the Leases may be made without the consent or joinder of Assignee. 3. All applicable laws, rules, regulations, and orders of appropriate governmental authorities and agencies having jurisdiction over the Lands and Leases. 4. The Override is assigned free and clear of all cost and expense of exploration, drilling, development and operation, but except for and subject to its proportionate share of actual third party costs incurred for gathering, transportation and marketing, and its proportionate share of severance, ad valorem and other similar taxes. No payments to the Override will be made or shall accrue on any oil, gas and casinghead gas or other hydrocarbon substances or minerals used for operating, developing, or producing purposes on the Lands under the Leases, or in treating the products produced to make them marketable, or which are unavoidably lost. No payments shall be made to the Override on gas and casinghead gas used for recycling or repressuring operations that benefit the Leases. 5. If a Lease or Leases cover less than the entire mineral estate in the Lands, Assignor's working interest represents less than 100% of the leasehold estate in a part or all of the Lands, or, if for any reason title should fail as to all or part of the leasehold estate owned by Assignor, the Override assigned to Assignee shall be reduced proportionately as to the affected Lease and Lands. 6. Effective at such time as the Override payable from any of the Lands and Leases has paid Assignees together an amount equal to $ 431,952.00, the Term ORR shall expire and terminate as to all the Lands and Leases. Trail Energy, LLC, as Operator of the Leases, it's successors or assigns shall administer or cause the administration of the payout of the Term ORR. Upon such termination Assignor shall execute and record an Affidavit of Termination of Term ORR in the County records to provide notice. The terms and provisions of this Assignment shall inure to the benefit of Assignor and Assignee and to their heirs, legal representatives, successors, and/or assigns. RECEIVED 9/25/2009 at 1:00 PM RECEIVING # 949701 BOOK: 732 PAGE: S7g JEANNE WAGN&- - - IN WITNESS WHEREOF, Assignor has executed and delivered this overriding royalty assignment to Assignee, the day and year first above written. O'Hare Energy Resources Corporation - Assignor By Alan C. O'Hare, President STATE OF COLORADO } } ss. COUNTY OF AQ-k. } The foregoing instrument was acknowledged before me this Z-1 day of jot Alan C. O'Hare, President of O'Hare Energy Resources Corporation. WITNESS my hand and official seal. My Commission Expires: 64-11 Notary Public by •~c< .eN()TARY . PU B 1.\G Arkoma Production Company of Texas, Inc, . - Assignee By STATE OF TEXAS .,,~~.:~..:~.,~,v.~.m.,..:r..,_.nw... t"; KENE )ss. {z°O' hiC71",~f~ Y PUBLIC: 1*S ~*3 Sja+c3 of Texas COUNTY OF DALLAS } ,NrF,~omrr Err). N-22-2009 The foregoing instrument was acknowledged before me this day of 4e , 2009, by ~ of 44gomA-gotr-alew . G,.,~~tief , a Texas corporation. Arkoma Production Company of Texas, Inc./ WITNESS my hand and official seal. My Commission Expires: .1"w o otj"~ Notary Public 50i;j 51 Triang SA Petroleum Corporation - Assignee ACKNOWLEDGMENT B PROVINCE OF The foregoing s r}e t was ac} J~Utv 2009, by .1 Triangle SA Petroleum Corporation. My Commission Expires: 3 % ZotJ STATE OF UTAH ) ) ss. COUNTY OF SALT LAKE ) me this r of el / of Notary Public N41 ° My Appointment expires r December 31, 2010. 'ILBE Trail Energy, LLC - Administrator Public By The foregoing instrument was acknowledged before me this Z 1 s-; day of S 'FPrr-,,K a tr- 2009, by y1.,,,w~~., as /41, -,,,c c& of Trail Energy, LLC on behalf of said limited liability company. My Commission Expires: Notary Public 10 -06 -ZO ILI- v a~ f0 C 0 FU 0 a 0 U E 0 a) n. 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