HomeMy WebLinkAbout877424 ASSIGNMENT OF ' ,
CONT~CTUAL ~GHTS
KNOW ALL MEN BY THESE P~SENTS:
For and in consideration of the sum of One Dollar ($1.00) and other good' and valuable
consideration, the receipt and sueficiency of which is hereby ac~owledged, ~E Land Co~., '[omerly
Union Pacific Land Resources Co~oration, with an office in Houston, Te2as; Sometimes hereinafter
refe~ed to as "Assi~or," does hereby grant, sell, assi~, bansfer, convey and deliver unto
Exploration and Production Company, with an office in Denver~ Colorado, sometimes hereinafter
to as "Assi~ee," its successors and assigns, an undivided sixW percent (60%) of Assignor's right, title
and interest in and to its conbactual rights created ~der that certain Operating A~eement dated Febma~
22, 1977 (the "Operating A r "
g eement ), between Champlin Peboleum Company (predecessor in interest to
Assi~or) and Amoco Production Company, insofar and only insOfar as said Operating Agreement covers
the following described lands located in Lincoln CounW, Wyoming, to-wit:
~o~ship 1.9 North, Ranee 113 West Section 25:~/4
Limited to those depths and foma~ions Eom the surface of the eadh to the stratigraphic equivalent of
11,580 feet as ¢ound in the Champlin 186 E-3 well, located.in the Northwest Quarter of Section 25,
To'ship 19 North, Range 113 West, which lands and depths are sometimes refezTed to herein as
"Conbact lands", rese~ing unto Assi~or, its successors and assigns,' all other rights, lands, horizons,
strata, and fo~ations subject to the te~s of the Operating A~eement, including, but not limited to, the
right to the concu~ent use of the surface and the right to drill t~ough the assi~ed intervals; subject to the
following the terms, covenants and conditions:
1. Assignor hereby rese~es unto itself, and its successors and assigns, all,'Assi~or's right, title
and interest in and to any and all lessor royalW with respect to any mineral ifiterest subject to the
Operating Agreement.
2. The interest assigned hereby are subject to the lease royalties, ove~iding royalties, production
payments, net profits obligations, ca~ied working interests, and other payments out of or with respect to
production which are set forth in the Operating A~eement and with which the conbact lands are
encumbered on the ~ffective date'of this Assignment, and are subject to all 0f the te~s and provisions of
any gas purchase, s~les, transportation and marketing conbacts to which the interest conveyed hereby is
subject on the effective date hereof.
3. This Assi~ment is made subject to all of the tet~s and the express and implied covenants
and conditions of the Operating Agreement, to the extent of the i~terest hereby assigned, which te~s,
covenants and conditions Assi~ee hereby assumes and a~ees to perfom~ with respect to the interests
covered hereby.
4. The interests assigned hereby are also accepted by the Assi~ee subject to all the temps and
provisions of that certain Favour and Famout Option Conbact, dated October 1, 1999, between
Assignor and Union Pacific Resources Company, as Farmer, and Assi~ee, as Operator,. and, in the event
that any o~ the terms and provisions of this Assignment are inconsistent or in conflict with any of the
tet~s and provisions of the said Fa~out and Farmout Option Contract, then the te~s and provisions of
the said Favour and Farmout Option Contract shall prevail.
5. This Assignment is made and accepted without any representation or wa~anty 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 o& the Assignor and the Assignee, and their respective successors and assigns and such te~s,
covenants and conditions shall be covenants running wi.th the land herein described and the interest herein
assignpd and with each transfer or assi~ment of said land or interests. ...,
7. AssiDor 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 Eom the
conbact lands, or lands and leases unitized therewith. If Assi~or fails to take in kind or separately
dispose of its proportionate share of production, then Assi~ee, upon 30 days advance ~itten notice to
Assi~or, may sell such production to others, for the account of Assi~or, at the prevailing market price
obtainable in the area measured by the appropriate market index for such production, but in no event for
less than the amount which Assi~ee is receiving for its production. ~y such sale by Assi~ee shall be
92859-99
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 for a 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 incIude crude oil, distillate, condensate, and other liquid hydrocarbons) produced and
saved from 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 on
the contract lands or on lands pooled therewith, Assignee shall immediately notify RME 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 ~o 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 writing 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~t 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 this 4th day of October 2001, but to' be effective from the 31 day of
March, 2000. '
QUESTAR EXPLORATION AND PRODUCTION
COMPANY
.. IBtsY": ~h' Pres±d~nt/CEO'
Attest:
Secretary
Its: Attorney-in-Fact
r~OSERT iVI. iV1 COMMON,, ~i~..
F:\GROUPDIR\LAW\UNIT\MARLA\QuestarEXHiBiT C.doc Att0mey-ln-Fa¢~