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HomeMy WebLinkAbout959254PARTIAL ASSIGNMENT OF OIL AND GAS RIGHTS Wellbore Only THIS PARTIAL ASSIGNMENT OF OIL AND GAS RIGHTS (Wellbore Only), hereinafter called the "Assignment" is made by and between CHEVRON U.S.A. INC., (successor in interest to TEXACO EXPLORATION AND PRODUCTION INC.), a Pennsylvania corporation, with a mailing address of 1400 Smith, Houston, Texas, 77002 "Chevron and CABOT OIL GAS CORPORATION, with a mailing address of Three Memorial City Plaza, 840 Gessner, Houston, TX 77024 "Cabot WHEREAS, Marathon Oil Company, "Marathon as Farmor, and Cabot (successor in interest to Cabot Oil Gas Production Corporation), as Farmee, previously entered into that certain Wellbore Farmout Agreement "Farmout Agreement dated September 30, 1994; and WHEREAS, Chevron succeeded to Marathon's rights and obligations under the Farmout Agreement; and WHEREAS, Amoco Production Company "Amoco proposed to, and did drill the Whiskey Buttes Unit #90 well, API: 490232108800, (hereinafter called the "Well located in the NE /4 of Section 16, Township 21 North, Range 112 West of the 6th P.M., Lincoln County, Wyoming, and Cabot participated in the Well pursuant to the Farmout Agreement; and WHEREAS, Chevron states, but does not warrant, that due to Chevron's ownership of leasehold rights committed to that certain federal "Unit Agreement for the Development and Operation of the Whiskey Buttes Unit Area, Counties of Lincoln and Sweetwater, State of Wyoming, No. 14 -08- 0001 13880," dated December 12, 1973, as amended; and that certain companion "Unit Operating Agreement, Whiskey Buttes Unit Area, Counties of Lincoln and Sweetwater, State of Wyoming," dated December 12, 1973 (hereinafter collectively referred to as the "Unit Agreements it is the owner of certain rights to production from the Frontier formation underlying the following described lands, situated in Lincoln County, Wyoming: on which lands the Well is located; and RECITALS Township 21 North, Range 112 West, 6th P.M. Section 16: NE /4 WHEREAS, Pursuant to the Whiskey Buttes Unit Agreement for the Whiskey Buttes Unit "Unit Chevron's rights to said production are held by virtue of its interest in oil and gas leases committed to the Unit Agreements and located within the Consolidated Frontier RECEIVED 5/13/2011 at 10:11 AM RECEIVING 959254 BOOK: 766 PAGE: 569 JEANNE WAGNER 000569 000570 Formation Participating Area "A -B certain of which lease interests having been acquired from Marathon; and WHEREAS, Amoco drilled and completed the Well as a producing well and Cabot thereby earned certain leases interests pursuant to the Farmout Agreement; and WHEREAS, for purposes of this Assignment, Chevron's "Pre Farmout Working Interest" shall mean the working interest derived from the leases committed to the Farmout Agreement (the "Affected Leases by formation, in the Well, that Chevron would be entitled to under the Unit Agreements in an applicable participating area within the Unit under the Whiskey Buttes Unit Agreement, or in the absence of a participating area, that Chevron would be entitled to in the lands contributing to the Drilling Block, as defined in the Farmout Agreement, assuming the absence of this Assignment or any assignment or relinquishment of rights pursuant to this Assignment, and assuming Chevron participated fully in its share of the costs to drill, equip, complete and operate the Well based upon its current working interest in the Affected Leases; and WHEREAS, the Affected Leases are described in Exhibit "A" attached hereto and made a part hereof for all purposes; and WHEREAS, under the terms of the Farmout Agreement, prior to payout of the Well, Cabot was entitled to one hundred percent (100 of Chevron's right, title and interest derived from the Affected Leases in and to the wellbore of the Well, from the surface down to the stratigraphic equivalent of the total depth drilled (being 11,277'), but in no event deeper than the base of the Frontier formation, as well as one hundred percent (100 of Chevron's right, title and interest derived from the Affected Leases in any production from the Well as to the assigned depths, as such interests are derived from Chevron's Pre Farmout Working Interest, subject to Chevron's reservation of an overriding royalty interest in and to all production from the Well, and the proceeds there from, equal to six and twenty -five one hundredths percent (6.25 of all (8 /8ths) oil, gas and other hydrocarbons produced and saved from the Well, reduced to be proportionate to Chevron's Pre Farmout Working Interest in the applicable producing horizon(s); and WHEREAS, the Well has paid out as of March 3, 2000; and WHEREAS, effective as of March 4, 2000, Chevron elected to convert its reserved overriding royalty in the Well to an undivided forty percent (40 of its Pre Farmout Working Interest; and WHEREAS, the purpose of this Assignment is to reflect the parties' respective interests in the Well, derived from the Affected Leases, as of March 4, 2000. 000571 NOW, THEREFORE, in consideration of the sum of Ten and more Dollars 10.00 and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Chevron does hereby assign, transfer, release, remise and quitclaim, without representation or warranty of title, express or implied, unto Cabot, its successors and assigns, an undivided sixty percent (60 of Chevron's right, title and interest derived from the Affected Leases in and to the wellbore of the Well, from the surface down to the stratigraphic equivalent of the total depth drilled (being 11,277'), but in no event deeper than the base of the Frontier formation, as well as an undivided sixty percent (60 of Chevron's right, title and interest derived from the Affected Leases in any production from the Well as to the assigned depths, as such interests are derived from Chevron's Pre Farmout Working Interest. THIS ASSIGNMENT IS SUBJECT TO, and Cabot accepts it subject to, the following terms, covenants and conditions: 1. Insofar as the Affected Leases are concerned, the interests assigned to Cabot hereby are subject to, and Cabot agrees to assume, its proportionate share, equal to the interest so assigned, of all burdens, reservations, agreements and instruments of every kind and nature (including, but not limited to, the Unit Agreements and the Farmout Agreement) with respect to the Well or production there from existing as of January 1, 1995, or which may affect operations or burden production from the Well in the future as a result of the Unit or the expansion or contraction of the participating area(s) which includes the Well. 2. Insofar as the Affected Leases are concerned, Cabot agrees to and shall assume its proportionate share of Chevron's obligation and liability for the costs and expenses of operating and maintaining the Well and associated equipment and facilities (including, but not limited to, tangible and intangible well adjustments pursuant to the terms of the Unit Agreements), to promptly pay and discharge its proportionate share of lessor's royalty burden and other payments out of production (including, but not limited to overriding royalties and any other burdens on production) burdening Chevron's Pre Farmout Working Interest, and the costs of plugging and abandonment and restoration of the surface, which are attributable to the interest assigned hereunder. 3. It is expressly understood and agreed that the interests conveyed to Cabot may be increased or decreased by the creation, expansion or contraction of participating areas within the Whiskey Buttes Unit Area, and thereby Cabot's share of production from the Well and its proportionate share of the costs and expenses of operating, maintaining and developing the Well may increase or decrease. 000572 4. THIS ASSIGNMENT IS MADE AND ACCEPTED WITHOUT ANY REPRESENTATION OR WARRANTY OR COVENANT OF ANY KIND, EITHER EXPRESS OR IMPLIED. 5. Chevron and Cabot each expressly reserve the right, at any time and from time to time, to take in kind or otherwise dispose of their proportionate shares of all oil, gas or other hydrocarbons produced from the Well. 6. Chevron reserves all rights and interests not expressly assigned herein to Cabot. The rights and interests transferred to Cabot hereunder are nonassignable and nontransferable without the written consent of Chevron, and any such assignment or transfer without such written consent shall be of no force and effect in assigning or transferring to the assignee or transferee any of such rights and interest or vesting in such assignee or transferee any claim, right or cause of action against Chevron. Chevron's consent will not be unreasonably withheld. 7. The terms, covenants and conditions hereof shall be binding upon and shall inure to the benefit of Chevron and Cabot, and their respective successors and assigns, and any such terms, covenants and conditions shall be covenants running with the leasehold interests in the lands herein described and the interests in production from the wellbore of the Well herein assigned and with each transfer or assignment of said leasehold interests in the land or interests in production from the wellbore of the Well. EXECUTED on the dates appearing with the respective signatures below, but effective for all purposes, from March 4, 2000. Date: 1711/ -0 1I Date: Y/97/070/1 CHEVRON U.S.A. INC. BY Attorney -in -Fact 000573 CABOT OIL GAS CORPORATION By: Name: 1 e Cre ci L. Xe i m STATE OF TEXAS COUNTY OF HARRIS SS. 000574 The foregoing instrument was acknowledged before me by 1) 1T 14A, .Z. Attorney -in Fact for CHEVRON U.S.A. INC., this I I 1 day of Apyj 2011. Witness my hand and official seal. My Commission Expires Notary Public COMMONWEALTH OF PENNSYLVANIA COUNTY OF ALLEGHENY Witness my hand and official seal. My Commission Expires: SS. The foregoing instrument was acknowledged before me by J fr e Keim as North Region Land Manager for Cabot Oil Gas Corporation, this day of f 2011. Notary Public COMMONWEALTH OF PENNSYLVANIA Notarial Seal Erin M. Krah, Notary Public Hopewell Twp., Beaver County My Commission Expires March 4, 2014 Member, Pennsylvania AssodatIon of Notaries 000575 EXHIBIT "A" Attached to and made a part of that certain Partial Assignment of Oil and Gas Rights (Wellbore Only) Effective March 4, 2000, by and between Chevron U.S.A. Inc. and Cabot Oil and Gas Corporation 000576 Chevron's interest in the Consolidated Frontier Formation Participating Area "A -B" is derived from the following Oil and Gas Leases "Affected Leases 1) That certain Oil and Gas Lease dated September 1, 1964, by and between the United States of America as Lessor and F.C. Grigsby as Lessee, Federal Serial No. WYW- 0311098. (QLS :144268) 2) That certain Oil and Gas Lease dated October 2, 1967, by and between the State of Wyoming as Lessor and Mary Ellen Winn as Lessee, State Serial No. St.Wy. 67 -8942. (QLS:144270) 3) That certain Oil and Gas Lease dated September 1, 1965, by and between the United States of America as Lessor and Betty J. Woodman as Lessee, Federal Serial No. WYW 031891. (QLS: 144271) 4) That certain Oil and Gas Lease dated August 1, 1965, by and between the United States of America as Lessor and Shirley Birdsong as Lessee, Federal Serial No. WYW 0318353. (QLS:144273) 5) That certain Oil and Gas Lease dated September 1, 1964, by and between the United States of America as Lessor and ABKO Inc. as Lessee, Federal Serial No. WYW- 311097. (QLS: 144259)