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HomeMy WebLinkAbout975725STATE OF WYOMING COUNTY OF LINCOLN Page 1 of 8 111111111 ASSIGNMENT AND BILL OF SALE THIS ASSIGNMENT AND BILL OF SALE (this "Assignment dated effective as of April 1, 2014, at 7:00 a.m., local time (the "Effective Time is from UNIT PETROLEUM COMPANY, "Assignor having an address of 7130 South Lewis, Suite 1000, Tulsa, Oklahoma 74136, to Trinity Energy, LLC. P l ox 12 Pratt, KS 67124 "Assignee For $10.00 and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Assignor hereby transfers, grants, bargains, conveys and assigns to Assignee, without covenant, representation or warranty of title of any kind, whether express or implied, at common law, by statute or otherwise, the following described assets (collectively, the "Properties (a) All of Assignors' right, title and interest (if any) in and to the oil or gas wells listed in Exhibit "A and all equipment associated therewith; (b) All of Assignor's right, title and interest (if any) in and to the oil and gas leases associated with the interests described in paragraph (a) above, and all rights and liabilities associated therewith, including any liabilities which have survived those leases that have terminated (if any); (c) Without limitation of the foregoing, all other right, title and interest (of whatever kind or character, whether legal or equitable, and whether vested or contingent) of Assignor (if any) in and to the oil, gas and other minerals in, on, under or that may be produced from the interests described in paragraph (a) or (b) above (including, without limitation, interests in oil, gas and/or mineral leases covering such lands, royalty interests, overriding royalty interests, production payments and net profits interests in such lands, and fee royalty interests, fee mineral interests and other interests in such oil, gas and other minerals); (d) All right, title and interest of Assignor (if any) in and to, or otherwise derived from all presently existing and valid oil, gas and/or mineral unitization, pooling, and/or communitization agreements, declarations and/or orders in and to the interests covered and the units created thereby (including, without limitation, units formed under orders, rules, regulations or other official acts of any governmental entity having jurisdiction, voluntary unitization agreements, designations and/or declarations, and so called "working interest units" created under operating agreements or otherwise) which relate to any of the interests described in paragraphs (a) and (b) above; (e) All right, title and interest of Assignor (if any) in and to all presently existing and valid production sales contracts, operating agreements, and other agreements and contracts which relate to any of the interests described in paragraphs (a), (b), (c) and (d) above, or which relate to the exploration, development, operation or maintenance thereof or the treatment, storage, transportation or marketing of production therefrom (or allocated thereto), including accounts receivable and payable arising from any of the foregoing and attributable to any period after the Effective Time; and 975725 3/27/2014 3:36 PM LINCOLN COUNTY FEES: $36.00 PAGE 1 OF 9 BOOK: 829 PAGE: 574 ASSIGNMENT JEANNE WAGNER LINCOLN COUNTY CLERK 11! 1111111111 II III 1! 001 11111 1111111111 11111! 1111!1! II 1 111 111! 1111 (Bridger Fork Unit 1, et al) PLEASE RE 1:0N TO: TOGAC PO BOX 671787 HOUSTON, TX 77267 -1787 Sale No. 261C Lot No. 49 (f) All right, title and interest of Assignor (if any) in and to the wells, machinery, equipment, fixtures, related inventory and personal property located on and used in connection with the operation of the interests described in paragraphs (a), (b), (c) and (d) above (the "Equipment This Assignment is subject to the following terms and conditions: 1) The Properties herein assigned are subject to all instruments and agreements through which Assignor derived its title or to which that title is subject. 2) To the extent transferable, Assignee will have the right of full substitution and subrogation in and to any and all rights and actions of warranty which Assignor has or may have with respect to the Properties conveyed hereunder. 3) All of the oil, gas and other minerals produced and saved after the Effective Time from or attributable to the Properties, and the proceeds therefrom will be owned by Assignee; all of the oil, gas and other minerals produced and saved from or attributable to the Properties prior to the Effective Time, and the proceeds therefrom will be owned by Assignor; all of the costs and expenses incurred before the Effective Time in the development, operation and maintenance of the Properties will be borne and paid by Assignor; and all of the costs and expenses incurred after the Effective Time in the development, operation and maintenance of the Properties will be borne and paid by the Assignee. 4) Except as otherwise provided in this Assignment, all proceeds, receipts, credits, and income attributable to the Properties prior to the Effective Time will belong to Assignor, and all proceeds, receipts, credits, and income attributable to the Properties after the Effective Time will belong to Assignee. 5) Assignor will transfer and Assignee agrees to receive and accept all suspense funds held by Assignor for the benefit of royalty, overriding royalty interest and working interest owners attributable to the Properties. Assignee will assume all past, present and future liability associated with such funds. Assignee will protect, defend, indemnify and hold harmless Assignor and its affiliates, directors, employees, officers, agents, successors, assigns and contractors from and against any and all costs, expenses, claims, demands, and causes of action of every kind and character (including reasonable attorneys' fees and court costs) arising out of, incident to, or in connection with the suspense funds transferred to Assignee. 6) ASSIGNEE REPRESENTS AND WARRANTS THAT IT HAS INSPECTED THE PROPERTIES AND ASSIGNEE ACCEPTS SAME IN THEIR PRESENT CONDITION, AS IS AND WHERE IS. ASSIGNEE REPRESENTS AND WARRANTS THAT ASSIGNEE IS AN EXPERIENCED AND KNOWLEDGEABLE INVESTOR IN OIL AND GAS INTERESTS, HAS THE FINANCIAL AND BUSINESS EXPERTISE TO EVALUATE THE MERITS AND RISKS OF THE TRANSACTIONS COVERED BY THIS ASSIGNMENT, AND HAS RELIED SOLELY ON THE BASIS OF ITS OWN INDEPENDENT INVESTIGATION OF THE PROPERTIES FOR ALL PURPOSES. ASSIGNEE ACKNOWLEDGES THAT IT HAS HAD THE OPPORTUNITY TO SEEK THE ADVICE OF PERSONS IT DEEMED APPROPRIATE CONCERNING THE CONSEQUENCES OF THE PROVISIONS OF THIS ASSIGNMENT AND HEREBY WAIVES ANY AND ALL RIGHTS TO CLAIM THAT IT IS AN UNSOPHISTICATED INVESTOR IN OIL AND GAS INTERESTS. ASSIGNOR MAKES NO REPRESENTATION, COVENANT OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY OR COMPLETENESS OF ANY FILES, RECORDS OR DATA FURNISHED ASSIGNEE WHETHER BEFORE OR AFTER THE EFFECTIVE TIME. ANY AND ALL SUCH FILES, RECORDS AND DATA FURNISHED BY ASSIGNOR ARE PROVIDED TO ASSIGNEE AS A CONVENIENCE ONLY, AND ANY RELIANCE ON OR USE OF THE SAME WILL BE AT Page 2 of 8 Sale No. 261C Lot No. 49 ASSIGNEE'S SOLE RISK. ASSIGNOR AND ASSIGNEE ACKNOWLEDGE AND AGREE THE PROPERTIES ARE CONVEYED WITHOUT WARRANTY OF TITLE. THE PROPERTIES ARE CONVEYED HEREIN BY ASSIGNOR "AS IS, WHERE IS" AND IN THEIR PRESENT CONDITION WITH ALL FAULTS. ASSIGNOR HAS NOT MADE, DOES NOT HEREBY MAKE AND SPECIFICALLY DISCLAIMS, ANY REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, AT COMMON LAW, BY STATUTE, OR OTHERWISE, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE AS TO, CONCERNING OR WITH RESPECT TO THE PROPERTIES, INCLUDING BUT NOT LIMITED TO (AND WITHOUT LIMITING THE GENERALITY OF THE FOREGOING), THE FOLLOWING: (A) ANY GEOLOGICAL, SEISMIC AND OTHER GEOPHYSICAL DATA; THE EXISTENCE OR EXTENT OF OIL, GAS OR MINERAL RESERVES; THE RECOVERABILITY OF OR COST OF RECOVERING ANY SUCH RESERVES; THE VALUE OF SUCH RESERVES; ANY PRODUCT PRICING ASSUMPTIONS; AND THE ABILITY TO SELL OIL OR GAS PRODUCTION AFTER CLOSING; (B) THE NATURE, QUALITY OR CONDITION OF THE PROPERTIES INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL OR GEOLOGY OF THE PROPERTIES; (C) THE EXISTING SOIL CONDITIONS OR OTHER CONDITIONS OF ANY OF THE PROPERTIES; (D) THE INCOME TO BE DERIVED FROM ANY OF THE PROPERTIES; (E) THE SUITABILITY FOR ANY AND ALL ACTIVITIES AND USES WHICH ASSIGNEE MAY CONDUCT THEREON OR THEREWITH; (F) THE COMPLIANCE OF THE PROPERTIES, OR THEIR OPERATION, WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OR ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY; (G) THE HABITABILITY, SUITABILITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTIES; (H) THE GOOD AND WORKMANLIKE CONSTRUCTION OF THE EQUIPMENT; (I) THE DESIGN OF THE EQUIPMENT; (J) THE NATURE OR QUALITY OF THE EQUIPMENT; (K) THE QUALITY OF THE LABOR AND MATERIALS INCLUDED IN THE EQUIPMENT; (L) THE COMPOSITION OF THE MATERIALS INCLUDED IN THE EQUIPMENT; OR (M) ANY OTHER MATTER WITH RESPECT TO THE EQUIPMENT. WITHOUT LIMITING ANY OF THE FOREGOING, ASSIGNOR HAS NOT MADE, DOES NOT MAKE, AND SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS OR WARRANTIES REGARDING (i) THE PRESENCE OR ABSENCE FROM THE LANDS COVERED BY THE PROPERTIES OF HAZARDOUS SUBSTANCES OR SOLID WASTE, AS DEFINED BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY REGULATIONS PROMULGATED PURSUANT TO THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT, AS AMENDED "CERCLA OR (ii) THE COMPLIANCE OR NONCOMPLIANCE OF THE PROPERTIES WITH CERCLA, THE RESOURCE CONSERVATION AND RECOVERY ACT, THE FEDERAL WATER POLLUTION CONTROL ACT, THE FEDERAL CLEAN AIR ACT (AS ANY OF THE SAME MAY HAVE BEEN AMENDED FROM TIME TO TIME), OR ANY OTHER STATUTE, LAW, ORDINANCE, REGULATION, ORDER OR DECREE RELATING TO ENVIRONMENTALMATTERS. 7) As used in this paragraph, and in the subparagraphs hereunder, "claims" will mean claims, demands, causes of action, liabilities, damages, penalties, fines, and judgments of any kind or character arising out of or in any way connected with the Properties and all costs and fees, including (without limitation) attorney fees, in connection therewith. Page 3 of 8 Sale No. 261C Lot No. 49 Page 4 of 8 a. Assignee will (i) be responsible for any and all claims arising from the production and sale of hydrocarbons from the Properties assigned hereunder, including the accounting or payment to third parties of monies attributable to their interests in such production, insofar as such claims relate to hydrocarbons produced from the Properties and sold after the Effective Time, (ii) at the Effective Time assume and be responsible for and comply with all duties and obligations of the Assignor, express or implied, with respect to the Properties under or by virtue of any lease, contract, agreement, document, permit, applicable statute or rule, regulation or order of any governmental authority or at common law (specifically including, without limitation, any governmental request or requirement to plug, re -plug or abandon any well of whatsoever type, status or classification, or take any clean up or other action with respect to the Properties) and (iii) defend, indemnify and hold harmless Assignor and its affiliates, directors, employees, officers, agents, successors, insurers, assigns and contractors from any and all claims, including but not limited to, any and all claims in favor of any person, entity, or governmental authority for personal injury, death or damage to property or to the environment, or for any other relief, arising directly or indirectly from, or incident to, the use occupation, operation, maintenance or abandonment of any of the Properties, or conditions of the Properties, whether latent or patent, and WHETHER ARISING FROM OR CONTRIBUTED TO BY THE NEGLIGENCE IN ANY FORM OF ASSIGNOR, ITS AFFILIATES, DIRECTORS, EMPLOYEES, OFFICERS, AGENTS, SUCCESSORS ASSIGNS OR CONTRACTORS AND ASSERTED AGAINST ASSIGNEE AND /OR ASSIGNOR ITS AFFILIATES, DIRECTORS, EMPLOYEES, OFFICERS, AGENTS, SUCCESSORS, ASSIGNS OR CONTRACTORS AFTER THE EFFECTIVE TIME, WHETHER OR NOT ANY SUCH CLAIMS RESULT FROM CONDITIONS EXISTING OR ACTIONS OR INACTIONS OCCURRING AT OR BEFORE THE EFFECTIVE TIME. b. Assignor will (i) be responsible for any and all claims arising from the production and sale of hydrocarbons from the Properties assigned hereunder, including the accounting or payment to third parties of monies attributable to their interests in such production, insofar as such claims relate to hydrocarbons produced and sold prior to the Effective Time, and (ii) defend, indemnify and hold Assignee harmless from any and all claims asserted against Assignor prior to the Effective Time. c. Assignee will pay and defend and hold Assignor harmless with respect to the payment of all ad valorem taxes on the Properties for the 2014 Tax Period and thereafter, together with any interest or penalty assessed thereon. Regardless of the foregoing, Assignor agrees to reimburse Assignee, upon evidence from Assignee that such taxes have been paid, Assignor's proportionate share of taxes in respect of its ownership of the Properties during the 2014 Tax Period. In the event Assignor pays or has paid ad valorem taxes on the Properties owed by Assignee, Assignor may bill Assignee for Assignee's proportionate share and Assignee agrees to reimburse Assignor for same. d. Assignee will defend and hold Assignor harmless with respect to the payment of sales or other taxes in connection with this Assignment, if any, including interest or penalty assed thereon. e. All taxes (other than ad valorem and income taxes) which are imposed on or with respect to the production of oil, natural gas or other hydrocarbons or minerals or the receipt of proceeds therefrom (including but not limited to severance, production and excise taxes) will be apportioned between the parties as follows: (i) payment or withholding of all such taxes applicable Sale No. 261C Lot No. 49 or relating to production sold prior to the Effective Time and filing of all statements, returns and documents pertinent thereto will be the responsibility of Assignor; and (ii) payment or withholding of all such taxes applicable or relating to production sold from and after the Effective Time and the filing of all statements, returns, and documents incident thereto will be the responsibility of Assignee. 8) Each of the parties hereto will execute, acknowledge and deliver to the other such further instruments, conveyances, deeds, division orders and transfer orders, and take such other actions as may be reasonably necessary to carry out the provisions of this Assignment. However, Assignee will assume all responsibility for notifying the purchaser of oil and gas production from the Properties, and such other designated persons who may be responsible for disbursing payments for the purchase of such production, of the change of ownership of the Properties. Assignee will take all actions necessary to effectuate the transfer of such payments to Assignee as of the Effective Time. Assignor will have no responsibility or liability for the proper distribution of proceeds from and after the Effective Time. 9) The terms and conditions contained herein will constitute covenants running with the land and will be binding upon the parties hereto, their legal representatives, successors, assigns and heirs. 10) Immediately following the execution of this Assignment, Assignee will, at Assignee's sole cost and expense, secure all lease and operating bonds, permits and other similar documents necessary to operate or own the Properties which may be required by any federal, state or local governmental authority having requisite jurisdiction over the Properties. TO HAVE AND TO HOLD the Properties unto Assignee and its successors and assigns forever, subject to the terms set forth above. This Assignment will bind and inure to the benefit of Assignee and Assignors, and their respective successors and assigns. This Assignment is made WITHOUT WARRANTY OF TITLE, EITHER EXPRESS OR IMPLIED. Assignee joins in the execution hereof for the purpose of being bound by all of the terms, provisions, obligations and covenants set forth herein. Page 5 of 8 [SIGNATURE PAGE FOLLOWS] Sale No. 261C Lot No. 49 EXECUTED on the date indicated in the acknowledgment below, to be effective for all purposes as of the Effective Time. STATE OF OKLAHOMA COUNTY OF TULSA My commission expires: Notary Public State of Oklahoma LAVITA J. HILL OKMULGEE COUNTY COMMISSION #13005450 Comm. Exp. 06 -11 -2017 Page 6 of 8 ASSIGNOR: By: UNIT PETR ACKNOWLEDGMENT Given under my hand and seal the day and year last above written. Notary Public in and for PANY Mark E. Senior Vice Preside t, General Counsel, and Secretary Before me, a Notary Public in and for said 'eft/My-awl State, on this /9#- day of 2014, personally appeared Mark E. Schell, the Senior Vice President, Gener Counsel and Secretary of Unit Petroleum Company, an Oklahoma corporation, to me known to be the identical person who subscribed the name of the maker thereof to the within and foregoing instrument, acknowledged to me that he executed the same as his free and voluntary act and deed, and as the free and voluntary act and deed of such corporation for the uses and purposes therein set forth. Sale No. 261C Lot No. 49 STATE OF I Q±:t COUNTY OF i /L GCX:, known to me to be Page 7 of 8 ASSIGNEE; Trinity Energy, LLC. Before me, a Notary Public in and for said County and State, on this 1' day 2014, personally appeared aa-e, Q1LV40 the D G?e.�, of✓ l V -.17e n a G� erson fficer whose name is subscribed to the foregoing instrument, and ackno edged to me that he /she executed the same for the purposes and consideration therein expressed and in the capacity therein stated as the act and deed of said corporation. Given under my hand and seal the day and year last above written. My commission expires: 8 /3 /aa Notary Public in and for Ai MONICA L. BAKER Notary Public State of Kansas My Appt, Expires V 3/�0/ Sale No. 261C LotNo. 49 STATE OF COUNTY OF My commission expires: Page 7 of 8 ASSIGNEE: Trinity Energy, L.C. By: Name: Title: Before me, a Notary Public in and for said County and State, on this day of 2014, personally appeared ,the of a known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that he /she executed the same for the purposes and consideration therein expressed and in the capacity therein stated as the act and deed of said corporation. Given under my hand and seal the day and year last above written. Notary Public in and for Sale No. 261C Lot No. 49 EXHIBIT "A" ATTACHED TO AND MADE A PART OF THAT CERTAIN ASSIGNMENT AND BILL OF SALE, EFFECTIVE AS OF APRIL 1, 2014, BY AND AMONG ASSIGNOR AND ASSIGNEE, covering lands in Lincoln County, Wyoming Lincoln Bridger Fork Unit #1 Bridger Fork Unit #2 4902320682 4902320655 Lincoln WY WY 4 9 20N 20N 119W 119W Page 8 of 8 Sale No. 261C Lot No. 49