HomeMy WebLinkAbout877423 BOOK ~I_L_~I,R PAGE 3 i.__._~
,.
t:, ,..., ~, ........... ,
KNOW ALL MEN BY THESE PRESENTS: ;~(:..'/' .;'~.~ :: ::.
.......... ~'"
For and in consideration of the sum of One Dollar ($1.00) and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, RME Land Corp., formerly
Union Pacific Land Resources Corporation, with an office in Houston, Texas, sometimes hereinafter
referred to as "Assignor," does hereby grant, sell, assign, transfer, convey and deliver unto Questar
Exploration and Production Company, with an office in Denver, Colorado, sometimes hereinafter referred
to as "Assignee," its successors and assigns, an undivided sixty percent (60%) of Assignor's right, title
and interest in and to its contractual rights created under that certaiq Operating Agreement dated February
22, 1977 (the "Operating Agreement"), between Champlin Petroleum Company (predecessor in interest to
Assignor) and Amoco Production Company, insofar and only insofar as said Operating Agreement covers
the following described lands located in Lincoln County, Wyoming, to-wit:
Township 19 North, Range 113 West Section 25:SW/4
Limited to those depths and formations from the surface of the earth to the stratigraphic equivalent of
11,600 feet as found in the Champlin 186 E-4 well, located in the Southwest Quarter of Section 25,
Township 19 North, Range 113 West, which lands and depths are sometimes referred to herein as
ontract lands", reserving unto Assignor, its successors and assigns, all other rights, lands, horizons,
strata, and formations subject to the terms of the Operating Agreement, including, but not limited to, the
right to the concurrent use of the surface and the right to drill through the assigned intervals; subject to the
following the terms, covenants and conditions:
)
and 1. Assignor hereby reserves unto itself, and its succes'sors and assigns, all(Assignor's right, title
interest in and to any and all lessor royalty with respect to any mineral ihterest subject to the
Operating Agreement.
2. The interest assigned hereby are subject to the lease royalties, overriding royalties, production
payments, net profits obligations, carried working interests, and ~ther p0yments out of or with respect to
production which are set forth in the Operating Agreement and with which the contract lands are
encumbered on the ,,effective date of this Assignment, and are subject to all of the terms and provisions of
any gas purchase, s.~les, transportation and marketing contracts to which the interest conveyed hereby is
subject on the effective date hereof.
3. This Assignment is made subject to all of the terms and the express and implied covenants
and conditions of the Operating Agreement, to the extent of the interest hereby assigned, which terms,
covenants and conditions Assignee hereby assumes and agrees to perform With respect to the interests
covered hereby.
4. The interests assigned hereby are also accepted by the Assignee subject to all the terms and
provisions of that certain Farmout and Farmout Option Contract, dated October 1, 1999, between
Assignor and Union Pacific Resources Company, as Farmor, and Assignee, as Operator, and, in the event
that any of the terms and provisions of this Assignment are inconsistent or in conflict with any of the
terms and provisions of the said Farmout and Farmout Option Contract, then the terms and provisions of
the said Farmout and Farmout Option Contract shall prevail.
5. This Assignment is made and accepted without any representation or warranty of title of any
kind, either expressed or implied.
6. The terms, covenants and conditions hereof shall be binding upon, and shall inure to the
'benefit of, the Assignor and the Assignee, and their respective su'ccessors and assigns and such terms,
covenants and conditions shall be covenants running with the land herein described and the interest herein
assigt,~ed and with each transfer or assignment of said land or interests.
7. Assignor expressly reserves the 'right, at any time and from time to time, to take in kind or
separately dispose of its proportionate share of all oil, gas, and related hydrocarbons produced from the
contract lands, or lands and leases unitized therewith. If Assignor fails to take in kind or separately
dispose of its proportionate share of prodUction, then Assignee, upon 30 days advance written notice to
Assignor, may sell such production to others, for the account of Assignor, at the prevailing market price
obtainable in the area n~easured by the appropriate market index for such production, but in no event for
less than the amount which Assignee is receiving for its production. Any such sale by Assignee shall be
9285%99
3J2
subject always to the right of Assignor to exercise its right to take in kind or separately dispose of its
share of production, and shall be only for such reasonable periods of time as are consistent' with the
minimum needs of the industry, but in no event fora period in excess of one year.
In addition to the rights reserved by Assignor in the immediately preceding paragraph, Assignor
and Assignee agree that Assignor shall have the right, at any time and from time to time, upon not less
than 30 days' advance written notice to Assignee, to purchase all or any part of the oil (which term as
herein used shall include crude oil, distillate, condensate, and other liquid hydrocarbons)'produced and
saved fi'om or attributable to the interest owned by Assignor in the contract lands following this
Assignment~ on Assignor's standard division order terms. The price payable for the oil contained in a
delivery pursuant hereto shall not be less than the posted price in the field at the time of delivery 'for oil of
like grade and gravity produced in the same field in which the well is located. In the event oil is found ont
the contract lands or on lands pooled therewith, Assignee shall immediately notify RIME in writing at
RME' Land Corp., Attn: Crude Oil Marketing, p. O. Box 1330, Houston, Texas 77251-1330.
Assignor hereby reserves the right to nOminate an affiliate, or other third party, to' act on its behalf
relative to Assignor's right to take production in kind and/or Assignor's right to purchase production
hereunder.
8. Except as herein otherwise provided, any notices or other communications required or
permitted hereunder shall be in writin, g and shall be deemed given only when received by the party to
Whom the same is directed as follows:
Questar Exploration and Production ComPany
1331 Seventeenth Street, Suite 800
Denver, CO 80202
Attn: Division Landman
Phone: 303/672-6956
Fax: 303/294-9632
Each party hereto shall have the right to change its address or telephone number for any or all purposes by
notifying the other party of such change in writing. The return receipt of the Unite~l States Post Office or
of any telegraph company deli ,vering a telegram shall be Proof of the date and time of receipt of notice.
TO HAVE AND TO HOLD said rights, titles, and interests unto the Assignee, its successors and
assigns, subject to the terms, covenants and conditions hereinabove set forth.
EXECUTED this41:h day of Ocl:ober 2001, but to' be effective from the 02 day of
August, 2000.
QUESTAR EXPLORATION AND PRODUCTION
COMPANY
IBtsY": ~oh Pres±dent:/CE0
Attest:
Secretary
ItS: Attomey-in-Fac~
F:XGROUPDIRXLA~TXMA~AXQuestarE~iBiT C.doc
,Attomey-J~-Fact