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HomeMy WebLinkAbout886789BOOK, RECEIVED ~' ~:'~" LiNOOLI,,,I C:OUNTY CLERK 886789 PARTIAL 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 11111 S. Wilercst, Houston, Texas 77099, ("ChevronTexaco"), and CABOT OIL & GAS CORPORATION, with a mailing address of 1200 Enclave Parkway, Houston, Texas 77077-1764, ("Cabot"). RECITALS 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 ( armout Agreement ) dated July 15, 1995; and Whereas, ChevronTexaco 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 #74 well (hereinafter called the ..... ~ - · Well ) located m the SE¼ of Section 21, 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, ChevrOnTexaco states, : but does not warrant, that due to ChevronTexaco'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 and Dakota formations underlying the following described lands, situate in Lincoln County, Wyoming: Township 21 North, Range 11;2 West, 6th P.M. Section 21: SE/4NW/4; S/2NE/4; E/2SW/4; SE/4 Section 22: SW/4NW/4; W/2SW/4 S ecfi on 28: N/2NE/4; NE/4NW/4; Which lands constitute the Drilling Block for, the well and, WHEREAS, ChevronTexaco'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 Formation Participating Area "A-B", certain .of which lease interests having been acquired from Marathon; and ' ' ' 215 WHEREAS,, Amoco drilled and comple{ md the Well as a producing well and Cabot thereby earned certain lease interests pursuant to the[Fa[mort! Agreement; and WHEREAS, the Well has not paid ~ut as of the dec of this Assignment; and WHEREAS, for purposes of this ,~signmant, ChevronTexaco's "Pre-Farmout Working Interest" shall mean the working interest deri~ed from the leases committed to the Farmout Agreement (the "Affected Leases"), by formaiofi, in the Well that ChevronTexaco would be entitled to under the Unit Agreements in an appiicabl~ participating area within the Unit under the Whiskey Buttes Unit Agreement, or in the absence of a ~ ' ' . participating area, that ChevronTexaco would be entitled to in the lands contributing to the Drilling Block assuming the absence of this Assignment or any assignment or relinquishment of rights l pursuant to this Assignment, and assuming l ChevronTexaco participated fully in its share of ibc costs to drill, equip, complete and operate the Well based upon its current working interest lin: the Affected Leases; and WHEREAS, the Affected Leases areldescribed in Exhibit "A" attached hereto and made a part hereof for all purposes. NOW, THEREFORE, in considerati6n o~the sum often Dollars ($10.00) and other good and valuable consideration, the recei,-t an~ ~..~-: ............ ~. ,, ~u.z~c.~y oi WelCh IS nereoy acknowledl~ed hevronTexaeo does hereby assign, transfer, r~lease, remise and quitclaim, without representation or warranty of title, express or implied, unto Cabot,i its successors and assigns, one hundred ncr cent 1 o , I ! . ( 00 ~A) of ChevronTexaco s right, title and inierest derived fi.om the Affected Leases in and to the wellbore of the Well, from the surface down tO th~ stratigraphie equivalent of the total depth drilled (being 12,310'), but in no event deeper than the b~se of the Dakota fonnatmn, as well as one hundred per cent (100%) of ChevronTexaco's right, title and interest derived fi.om the Affected Leases in any production from the Well as to the assigned depths, as such interests are derived from ChevronTexaco's Pre-Farmout Working Interest,. RESERVING AND EXCEPTING unto ChevronTexaco an overriding royalty interest ih and to all production from the Well, and the proceeds therefrom, equal to six and twenty-five 6ne-hundreths percent (6.25%) of all (8/Sa's) oil, gas and other hydrocarbons produced and saved from the Well, reduced to be proportionate to ChevronTexaco's Pre-Farmout Working Interesti~ the applicable producing horizon(s), until payout of the Well. Upon pay0ut of the Well, Chevro~Te~aco shall have the option to convert its reserved overriding royalty into an undivided forty perlceni (40%) share of ChevronTexaco's Pre-Farmout l Working Interest in the Well. THIS ASSIGNMENT IS SUBJECT T° and Cabot accepts it subject to, the following terms, covenants and conditions: 1. Insofar as the Affected Leases fe ioncemed, the interests assigned to Cabot hereby are subject to, and Cabot agree., to assume, its proportionate share, equal to the interest so assigned, of all burd ~s, ieservations, agreements and instruments of every kind and nature (including, butyl tot !imited to, the Unit Agreements and the Farmout Agreement).with respect to the Wel! or production therefrom existing as of March 31, 1994, or which may affect operations or burden production fi'om the Well m the future as a result of the Whiske~ Buttes Unit or the expansion or contraction of the participating area(s) · · ! l which includes the Well· o Insofar as the Affected Leases are concerned, Cabot agrees to and shall assume its proportionate share of ChevronTexaco's obligation and liability for the costs and expenses of operating and m~intaining the Well and associated equipment and facilities (including, but not limiied to, tangible and intangible well adjustments pursuant to the terms of the Unit !Agreements), to promptly pay and discharge its proportionate share oflessor's royalty burden and other payments out of production (including, but not limited to overriding royalties and any other burdens on production) burdening ChevronTexaco's Pre-Farmout Working Interest, and the costs of plugging and abandonment and restoration of the surface, which are attributable to the interests assigned hereunder. 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 ~rea, and thereby Cabot's share of production from the Well and its proportionate shore of the costs and expenses of operating, maintaining and developing the Well may increase or decrease. This Assignment is made and accepted without any representation or warranty or covenant of any kind, either express or implied. ChevronTexaco and Cabot each ekpressly reserve the right, at any time and from time to time, to take in kind or otherwisg dispose of their proportionate shares of all oil, gas or other hydrocarbons produced from the Well. ChewonTexaco reserves all right~ 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 ChevronTexaeo, and any such assignment or transfer without such written consent shall be of no force and effect in assigning or transferring to the ass!gnee or transferee any of such rights and interest or vesting in such assignee or transferee any claim, right or cause of action against ChevronTexaco. ChevronTexacois consent will not be unreasonably withheld. The terms, covenants and condltio'ns hereof shall be binding upon and shall inure to the benefit'ofChevronTexaco and iCabot, and their respective successors and assigns, and any such terms, covenants and conditions shall be covenants running with the leasehold interests in the lands her~in 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 fhe respective signatures below, but effective for all purposes, from June 16, 1994. CHEVRON U.S.A. INC. Attorney-in-Fact Date: CABOT OIL & GAS CORPORATION John S. Mu_i_ro A¢orneyqn-Fact STATE OF TEXAS ) )ss. COUNTY OF HARRIS ) The foregoing instrument w~s acknowledeed before me I~ he-'Attomeyqn-Fact CHEVRON U.S,A. INC, this J//t~ day of ,J.~~.("~ ,2002. Witness my hand and official seal. No~a~ Pub~t 222 ~or STATE OF COLORADO ) )ss. COUNTY OF ~'n ocr ) was The foregoing instrument acknowledged before me by ~°), ~ J', Ha ,'t ~ , as Attorney-in-Fact for Cabot Oil & Gas Corporation, this day of ~ec. ~,,~2~.,,- ,2002. Witness my hand and official seal. My Commission Expires: EXHIBIT "A" Attached to and made a part of that certain Partial Assignmen~ of Oil and Gas Rights (Wellbore Only) Effective June 16,1994, by and between Chevron U.S.A. Inc. And Cabot Oil and iGas Corporation Chevron's interest in the Consolidated Frontier Formation Participating Area "A-B" is derived from the following Oil and Gas Lease~ ("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 ias Lessee, Federal Serial No. WYW- 0311098. 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. 3) That certain Oil and Gas Lease dated September 1, 1965, by and between the United States of America as Lessor and Betty J. Woo. tman as Lessee, Federal Serial No. WYW- 031891. 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. 5) That certain Oil and Gas Lease dated Sepiember 1, 1964, by and between the United States of America as Lessor and ABKO Inc. ~s Lessee, Federal Serial No. WYW- 311097.