HomeMy WebLinkAbout870520KNOW ALL MEN BY THESE PRESENTS:
THAT, on the 5th day of December, 2000,
Keepa Oil Corporation
100 Park Avenue, Suite 1998
Oklahoma City, OK 73102
hereinafter referred to as Mortgagor, whether one or more, have mortgaged, and do hereby mortgage, grant, bargain, sell and convey unto BancFirst P.O. Box 26788,
101 N. Broadway, Oklahoma City, Oklahoma, hereinafter sometimes called Mortgagee, its successors r.ad assigns, the following described property, to -wit:
A. All of Mortgagor's right, title and interest now owned or hereafter acquired in the oil, gas, acid mineral leases and /or minerals, mineral interests and estates in
and under the properties described in Exhibit A attached hereto and made a part hereof, including, but rot limiting the foregoing, royalties, overriding royalties and
production payments therefrom, and all interest of Mortgagor in all other oil, gas and mineral interests with which any of the aforementioned interests and estates of
mortgagor in the properties described in Exhibit A are now or may hereafter be unitized.
B. All of Mortgagor's interest in and to all wells, casing, tubing, rods, flow lines, pipe lines, compressors, tanks, separators, pumps, machinery, tools,
equipment, oil in storage, buildings, structures, supplies, and all other personal property and fixtures now or hereafter located upon or used in connection with any of the
properties described in Exhibit A or properties unitized therewith, expressly including all personal property of whatsoever kind used in the production of oil, gas,
casinghead gas or other hydrocarbon substances, whether located below or above ground, from any or all of the properties described in Exhibit A or properties unitized
therewith, and all production of oil, gas, casinghead gas or other hydrocarbons owned by the mortgagor, either heretofore or hereafter produced from said properties.
C. All of Mortgagor's interest in, to and under all contracts, operating agreements, rights of way, easements, surface leases, permits, franchises, licenses,
pooling or unitization agreements, pooling designations and pooling orders, now or hereafter affecting any of the interests now or hereafter covered hereby, or which
are useful or appropriate in drilling or producing, treating, handling, storing, transporting or marketing oil, gas or other minerals from any of the properties described in
Exhibit A or properties unitized therewith.
(All of the properties, interests and rights described in Headings A, B and C are hereinafter sometimes referred to as the "Mortgaged Properties
TO HAVE AND TO HOLD said mortgaged properties unto the Mortgagee, its successors and assigns, Iorever, together with all and singular the tenements,
hereditaments and appurtenances now or hereafter in anywise belonging to or appertaining to the Mortgagor's interest, present or future rights, title, interest or estate, in
and to all or any part thereof.
MORTGAGE, SECURITY AGREEMENT
FINANCING STATEMENT AND ASSIGNMENT
810520
ARTICLE I SECURED INDEBTEDNE iS
1.1 This mortgage is given to secure the following indebtedness, to -wit:
(a) Promissory Note dated December 5, 2000 in the original amount of $181000.00, executed by Lawrence H. Davis and Frederick M. Black in favor of
BancFirst.
(b) Promissory Note dated December 5, 2000 in the original amount of $60,000.00, executed by Lawrence H. Davis and Frederick M. Black in favor of
BancFirst.
(c) All indebtedness incurred or arising pursuant to the provisions of this mortgage;
(d) All Notes given in substitution for the Note(s) described in Paragraph (a) above, and all fenewals or extensions of any of the indebtedness hereinabove
mentioned together with all interest, attorney fees, and other charges thereon or incurred in connection therewith.
1.2 The indebtedness referred to in sub headings (a), (b), (c), and (d) of Section 1.1 and all renewals and extensions thereof and all substitutions therefor,
are sometimes hereinafter referred to as the "Secured Indebtedness
ARTICLE I1— REPRESENTATIONS, WARRANTIES AND COVENANTS
2.1 Mortgagor represents, warrants and covenants as follows:
(a) That Mortgagor is the lawful owner of the mortgaged properties, and has good right and lawful authority to grant, sell, transfer and mortgage the same,
and that said property is free and clear of all liens and encumbrances whatsoever kind, except as set forth in Exhibit A.
(b) That immediately prior to the execution of this Indenture, Mortgagor was entitled to receive all proceeds for present and future production of oil, gas,
casinghead gas and other hydrocarbons attributable to the interests covered by this mortgage.
(c) That all oil, gas and mineral leases, and oil and gas leasehold estates covered by this mortgage are valid subsisting and are in full force and effect and
that all rents and royalties due and payable thereunder and all severance and production taxes payable with respect to the production therefrom have
been duly paid.
(d) That all producing wells located on the properties covered by this Mortgage or properties unitized therewith have been drilled, operated and produced
in conformity with all applicable rules, regulations and orders of all regulatory authorities having jurisdiction, and are subject to no penalties on
account of past production.
(e) That Mortgagor will warrant and forever defend the title to the mortgaged properties against the claims of all persons whomsoever claiming, or to
claim, the same or any part thereof; that if the validity or priority of this Mortgage, or of any rights, titles, liens or interests created or evidenced hereby
with respect to the mortgaged property, or any part thereof, shall be endangered or ques :ioned, or shall be attacked, directly or indirectly, or if any legal
proceedings are instituted against Mortgagor in respect thereto, Mortgagor will give written notice thereof to Mortgagee, and at Mortgagor's own cost
and expense, will diligently endeavor to cure any defects that may be developed or claimed, and will take all necessary and proper steps for the defense
of such legal proceedings, including, but not limited to, the employment of counsel, the prosecution or defense of litigation and the release or discharge
of all adverse claims, and the Mortgagee is hereby authorized and empowered to take such additional steps as in its judgment or discretion may be
necessary or proper in the defense of such legal proceedings, including, but not limited to the employment of independent counsel, the prosecution or
defense of litigation, and the compromise or discharge of any adverse claims made with respect to the mortgaged property, and all expenses so incurred
of every kind and character shall be a demand obligation owing by Mortgagor and shat. bear interest from the date of expenditure until paid at the same
rate as is provided in the note for interest on past due principal, and shall be secured by the lien evidenced by this instrument, and the party incurring
such expense shall be subrogated to all rights of the person receiving such payment.
The above and foregoing warranties and covenants shall at all times be construed to be covenants for the benefit of Mortgagee and they shall remain in
full force and effect, notwithstanding the assignment hereof or the payment of all the indebtedness secured hereby, and the release, either partially or
wholly, of the lien hereof, or any foreclosure thereof.
2.2 Mortgagor further covenants and agrees with the Mortgagee as follows:
(a) That Mortgagor will make prompt payment as the same and shall become due of the Nr e(s) and all installments of principal and interest thereon and
of all other secured indebtedness, and all other amounts which hereunder or under the provisions of the Note(s), Mortgagor agrees to pay.
PAGE 1
ii R L.. i r i li 0D
This SpaceK'e l 00
I'� �.fNTY CLERK
For Filing Stamp
01 JAN -2
I
JEANNE WAGNER
KEMMERER, WYOMING
HOOK j PR PAGE G R 7
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purchaser of the production attributed to the mortgaged property shall have any responsibility for the application of any funds paid to the Mortgagee. The
receipt of Mortgagee for monies so paid to it shall be a full and complete release, discharge and acquittance to any such pipe line company or other purchaser
to the extent of all sums so paid. This instrument shall be and constitute full and complete authority to or for any purchasers of any of the oil, gas,
casinghead gas and other hydrocarbons produced from or allocated to said mortgaged properties, or any other person liable therefor, to make payment to the
Mortgagee, its successors or assigns, of Mortgagor's proportionate part of the proceeds of runs. The office where the records of Mortgagor with respect to
the accounts and contract rights concerning the mortgaged property are kept is located at the address shown opposite the signature of Mortgagor to this
mortgage, and Mortgagor agrees that the place where such records are kept will not be changed without the prior consent of Mortgagee.
3.2 Independent of the foregoing provisions and authorities herein granted, Mortgagor agrees to execute and deliver any and all transfer orders,
division orders and other instruments that may be requested by the Mortgagee or that may be required by any purchaser of the production from any of the
mortgaged properties or allocated thereto for the purpose of effectuating the payment of the proceeds of the runs to the Mortgagee. if, under any existing
sales agreements; other than division orders or transfer orders, any proceeds of runs are required to be paid by the purchaser to Mortgagor, so that under such
existing agreement payment cannot be made of such proceeds to the Mortgagee, Mortgagor's interest in all proceeds of runs under such sales agreements and
all other proceeds of runs which, for any reason, may be paid to Mortgagor shall, when received by Mortgagor, constitute trust funds in Mortgagor's hands
and shall immediately be paid over to the Mortgagee.
3.3 Should any person now or hereafter purchasing or taking oil, gas, casinghead gas and other hydrocarbons attributed to the mortgaged properties,
or allocated thereto, fail to make payment promptly to the Mortgagee of the hereby assigned proceeds of runs, the Mortgagee shall have the right to make or
require Mortgagor to make a change of connection and the right to designate or approve the purchaser with whose facilities a new connection shall be made,
without liability or responsibility in connection therewith so long as ordinary care is used in making such designations, and Mortgagor agrees to pay to the
Mortgagee, on demand in writing therefor from the Mortgagee, the amount of any proceeds of runs not promptly paid to the Mortgagee by any person
having responsibility therefor.
3.4 The Mortgagee and its successors and assigns are hereby absolved from any liability for failure to enforce collection of proceeds of runs and all
other responsibility in connection therewith, except the responsibility to account to Mortgagor for funds actually received. Should the Mortgagee, in its sole
discretion, elect to permit the proceeds of runs to be paid in whole or in part to the Mortgagor, Mortgagor, nonetheless, directs and instructs any purchasers
of oil, gas, casinghead gas and other hydrocarbons ::"roduced from or allocated to the mortgaged properties to mail all checks in full payment therefore to the
Mortgagor in care of BancFirst Oklahoma City, Oklahoma upon the written request of the Mortgagee, and to continue to make payments in the above stated
manner until otherwise directed in writing by said Mortgagee. The payment of the proceeds of runs as aforesaid, or the release to the Mortgagor of any of
the proceeds of runs which would otherwise be applicable hereunder to the secured indebtedness shall not affect or impair Mortgagee's right thereafter to
retain in full all such payments or in anywise impair or affect the lien of this mortgage and the priority thereof or any of Mortgagee's rights hereunder or the
amount of the indebtedness secured hereby.
3.5 Mortgagor agrees to indemnify and hold harmless the Mortgagee, its successors and assigns, against any and all liabilities, actions, claims,
judgments, costs, charges and attorney's fees by reason of the assertion that it received, either before or after the payment in full of the secured indebtedness,
funds from the production of oil, gas, casinghead gas and other hydrocarbons claimed by third persons, and Mortgagee shall have the right to defend against
any such claims or actions, employing attorneys of its selection, and if not fumished with indemnity satisfactory to it the Mortgagee shall have the right to
compromise and adjust any such claims, actions and judgments, and in addition to the right to be indemnified as herein provided, all amounts paid by the
Mortgagee in compromise, satisfaction or discharge of any such claim action or judgment, and all court costs, attorney's fees and other expenses of every
character incurred by Mortgagee pursuant to the provisions of this section shall be a demand obligation owing by Mortgagor and shall bear interest from date
of expenditure until paid at the same rate as is provided in the note(s) for interest on past due principal, and shall be part of the secured indebtedness and
shall be secured by this mortgage and by any other instrument securing the secured indebtedness.
3.6 Nothing herein contained shall detract from or limit the absolute obligation of Mortgagor to make prompt payment of all principal and interest
owing on the note and all other secured indebtedness when and as the same become due regardless of whether the proceeds of tuns herein assigned are
sufficient to pay the same, and the rights of this assignment shall be cumulative of all other security of any and every character now or hereafter existing to
secure the payment of the mortgage and all other secured indebtedness.
4.1 The Mortgagee may at any time and from time to time in writing (a) waive compliance of Mortgagor with any covenant herein made by
Mortgagor to the extent and in the manner specified in such writing; and (b) consent to Mortgagor doing any act which hereunder Mortgagor is prohibited
from doing, or to Mortgagor failing to do any act which Mortgagor hereunder is required to do to the extent and in the manner specified in such writing. No
such act shall in any way impair the rights of the Mortgagee hereunder, except to the extent specifically agreed to by Mortgagee in such writing.
4.2 The lien and other security rights of the Mortgagee hereunder shall not be impaired by any indulgence, including but not limited to (a) any
renewal, extension, or modification which the Mortgagee may grant with respect to any secured indebtedness; (b) any surrender, compromise, release,
renewal, extension, exchange or substitution which the Mortgagee may grant in respect of any item of the mortgaged properties or any part thereof, or
interest therein, or any of the proceeds of runs, and (c) any release or indulgence granted to any endorser, guarantor or surety of any secured indebtedness.
ARTICLE V POSSESSION UNTIL DEFAULT, DEFEASANCE
5.1 Unless a default specified in Section 6.1 hereof shall occur and be continuing, Mortgagor shall retain full possession of the mortgaged properties,
except the proceeds of runs as provided under Article 111 above, and shall manage, operate, develop and use the same and every part thereof; subject,
however, to the terms and provisions of this mortgc..ge.
ARTICLE VI REMEDIES IN EVENT OF DEFAULT
6.1 The term "default" as used in this Mortgage shall mean the occurrence of any of the following events:
(a) The failure of Mortgagor to make due and punctual payment of the note(s) or of any other secured indebtedness or of any installment of principal
or interest or any part of either, as the same shall become due and payable;
(b) The failure of Mortgagor to pay over to the Mortgagee within five (5) days after receipt of written demand, any proceeds from the sale of the oil,
gas, casinghead gas or other hydrocarbons produced, saved and sold from or allocated any proceeds from the sale of the oil, gas, casinghead gas
or other hydrocarbons produced, saved and sold from or allocated to the mortgaged properties which are paid to Mortgagor rather than to
Mortgagee.
(c) The failure of Mortgagor to timely and-properly observe, keep or perform any covenant, agreement, warranty or condition herein required to be
observed, kept or performed;
(d) Mortgagor becomes insolvent or makes an assignment for benefit of creditors;
(e) Institution of receiver proceedings against the Mortgagor or involving any of the mortgaged property, or in the event of the institution of any
proceedings by or against the Mortgagor under the Federal Bankruptcy Act as now existing or hereafter amended;
(f) If the lien and priority of this indenture are not fully maintained at all times, or Mortgagor is found or adjudged not to be lawfully seized of any
right, title, interest or estate herein covenanted or warranted to be held or owned by the Mortgagor, or Mortgagor is found or adjudged not to have
good right and lawful authority to encumber and otherwise involve the mortgaged property or any part thereof, as herein provided;
(g) Any change in the present proration law; or in any existing order, rule or regulation pertaining thereto, which, in the Mortgagee's judgment, may
prejudicially affect the security, affordel hereby.
6.2 Upon the occurrence of a default, the M:: rtgagee shall have the option, by giving notice in writing to Mortgagor, of declaring all secured
indebtedness in its entirety to be immed ately due and payable, and Mortgagee shall thereupon have any and all of the following remedies;
(a) The Mortgagee may take possession of I e mortgaged property or any part thereof (the Mortgagor agreeing to give immediate peaceable
possession) and collect and maintain, operate or control the same, and may apply all or any part of the income and proceeds to the payment of any
development, operation or maintenance .xpense incident to any order of application as the Mortgagee may elect; provided, that in the event of
any dispute or question whatsoever cone erring such income and proceeds or the application thereof, the Mortgagee may hold the same in a
special account without interest until sit a dispute or question is finally settled to the Mortgagee's satisfaction. Should the Mortgagee elect to
collect such income and proceeds, this 1 'denture shall constitute full and complete authority to any purchaser of oil, gas, casinghead gas or other
hydrocarbons from the mortgaged property or allocated thereto, or any part thereof, to deliver directly to the Mortgagee all proceeds from the sale
PAGE 3
ARTICLE IV WAIVER AND PARTIAL RELEASE
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STATE OF OKLAHOMA
COUNTY OF OKLAHOMA
The foregoing instrument was acknowledged before me this day of
President of Keepa Oil Corporation, Oklahoma Corporation on behalf of the co •oration.
My Commission Expires:
STATE OF OKLAHOMA
COUNTY OF OKLAHOMA
The foregoing instrument was acknowledged before me this .J i day of
Sr. Vice President, of BancFirst, an Oklahoma Banking Corporation on behalf of t ..1., ation.
My Commission Expires:
ss
PAM MEUNIER
Oklahoma County
Notary public in and for
State of Oklahoma
My commission ion expires July 19 2004.
ss
PAM MEUNIER Coun
Ia Pub c in and
Notary for
State of Oklahoma
19 2004.
My commission expires July
CORPORATE ACKNOWLEDGEMENT
LENDING ACKNOWLEDGEMENT
PAGE 5
Notary Public in and for
Oklahoma County, Oklahoma
Notary Public in and for
Oklahoma County, Oklahoma
by Frederick M. Black,
j i tb. t by E. G. Alexander,
or
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