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Home My WebLink About877818 PARTIAL ASSIGNMENT OF OIL AND GAS RIGItTS THI~ PARTIA~ A~SIGN~NT O~ OI~ AND G~S ~GHTS (Wellbor~ Only), h~r~ina~er called th~ "Assi~ent" is made by and between TEXACO EXPLORATION AND PRODUCTION INC., a Delaware co~oration, with a.mailJng address of 4601 DTC Blvd, Denver, Colorado 80237 ("Texaco"), ~d CABOT OIL & GA~ CO,OPTION., with a mailing address of 600 ] 7TM Streat, ~uite 900 No~h, Denver, Colorado 80202 ("Cabot"). RECITALS WHEREAS, the parties hereto previously entered into that certain Wellbore Farmout Agreement ("Agreement") dated January 25, 1994, between Texaco (successor in interest to Marathon Oil Company, "Marathon"), as Farmor, and Cabot (successor in interest to Cabot Oil & Gas Production Corporation), as Farmee; and Whereas Amoco Production Company ("Amoco") proposed to, and did drill the Whiskey Buttes Unit #93 well (hereinafter called the "Well") located in the SE¼ of Section 26, Township 21 North, Range 112 West of the 6th P.M., Lincoln County, Wyoming; and WHEREAS, Texaco states, but does not warrant, that due to Texaco's ownership of leasehold rigl}ts committed to that certain federal "Unit Agreement for the Development ~Pd Operation of the Whiskey Buttes Unit Area, Counties of Lincoln and Sweetwater, State of Wyoming, No. 14-08- 0001-13880," dated December 12, !973, as amended; and that certain companion "Unit Operating Agreement, Whiskey Buttes Unit Ar~a, 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 formation underlying the following described lands, situate in Lincoln County, Wyoming: : Township 21 North, Range 112 West, 6th P.M. Section 26:SE/4 and, WHEREAS, Texaco's rights therein are held by virtue of its interest in oil and gas leases committed to the Unit Agreements which are located within the Consolidated Frontier Formation Participating Area "A-B"; and WHEREAS, for purposes of this Assignment, Texaco's "Pre-Farmout Working Interest" shall mean the working interest, by formation, in the Well, that Texaco would be entitled to based upon its w9rking interest derived from the Unit Agreements in an applicable participating area within the Unit under the Whiskey Buttes Unit Agreement, or in ~he absence of a participating area, that Texaco would be entitledto in the lands contributing to the Drilling Block assuming the absence ofthis~Assignment or any assignment or relinquishment of rights pursuant to this Assignment, and assuming Texaco participated fully in its share of the costs to drill, equip, complete and operate the Well; and WHEREAS, Amoco drilled and completed the Well as a producing well and Cabot thereby earned, pursuant to the Wellbore Farmout Agreement, the interests assigned hereby. WHEREAS, Marathon did not prepare and deliver to Cabot an assignment of the rights earned under the Agreement; and WEIEREAS, under the terms of the Agreement, the Well paid out on July 15, 1997, and by letter dated April 5, 2000, Cabot notified Marathon of such payout; and WHEREAS, Marathon elected, on April 24, 2000, to convert its retained oven'iding royal ty interest (as would have been reserved had the earning assignment been prepared and delivered to Cabot) to an undivided forty percent (40%) of its Pre-Farmout Working Interest, effective July 16, 1997, being the day following the date on which payout occurred. NOW, THEREFORE, in consideration of the sum of Ten and more Dollars ($10.00+) and other good and valuable consideration., the receipt and sufficiency of which is hereby acknowledged, Texaco does hereby assign, transfer, release, remise and quitclaim, without representation or warranty of title, express or implied, unto Cabot, its successors and assigns, sixty per cent (60%) of Texaco's right, title and interest in and to the wellbore of the Well, from the surface down to the stratigraphic equivalent Of the total depth drilled (being 11,371'), but in no event deeper than the base of the Frontier formation, as well as sixty per' cent (60%) of Texaco's right, title and interest in any production from the Well, from the assigned depths, as derived from Texaco's Pre-Farmout Working Interest, RESERVING AND EXCEPTING unto Texaco all other rights and interests of Texaco in and to all of the oil and gas leases covered by the Unit Agreements. ,, THIS ASSIGNMENT IS SUBJECT TO, and Cabot accepts it subject to, the following terms, covenants and conditions: 1. The interests assigned to Cabot hereby are subject to, and Cabot agrees'to assume, its proportionate share, equal to the interest so assigned, of all burdens, reservations, agreements and instruments of every kind and nature (including, but not limited to, the Unit Agreements and the Wellbore Farmout Agreement) with respect to the Well or production therefrom existing as of January 25, 1994, or which may affect operations or burden production from the Well in the future as a result of the Unit Or the expansion or contraction of the participating area(s) which includes the Well. 2. Cabot agrees to and shall assume its proportionate share of Texaco's obligation and liability for the costs and expenses of operating and maintaining the Well and associated equipment and facilities (including, but not limited to, tangible and intangible well adjustments pursuant to the terms of the Unit Agreements)i to promptly pay and discharge its proportionate share of lessor's royalty burden and other payments out of production (including, but not limited to overriding royalties and any other burdens on production) burdening Texaco's Pre-Farmout Working Interest; -2- and the costs of plugging and abandonment and restoration of the surface), which are attributable to the interests assigned hereunder. 3. 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 Areal and thereby Cabot's share of production from the Well and its proportionate share of the costs and expenses of operating, maintai~fing and developing the Well may increase or decrease. 4. This Assignment is made and accepted without any representation or warranty or covenant of an), kind, either express or implied. 5. Texaco and Cabot each expressly reserve the right, at any time and fi'om time to time, to take in kind or otherwise di-spose of their proportionate shares of all oil, gas or other hydrocarbons produced from the Well 6. Texaco reserves all rights 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 Texaco, and any such assignment or transfer without such written consent shall be of no force and effect in assigning or transferring to the assignee or transferee any of such rights and interest or vesting in such assignee or transferee any claim, right or cause of action against Texaco. Texaco's consent will not be unreasonably withheld. 7. The terms, covenants and conditions hereof shall be binding upon and shall inure to the benefit of Texaco and Cabot, and their respective successors and assigns, and any such terms, covenants and conditions shall be covenants running with the leasehold interests in the lands herein 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 the respective signatures below, but effective for all purposes, fi'om July 16, 1997. TEXACO EXPLORATION AND PRODUCTION INC. Date: J / ~ q { o \ By lgg~M. J. Davis ~' Attorney-in-Fact 'CABOT OIL & GAS CORPORATION Date: {t/3o/o( By Name {~, Its Attorney-in-Fact -4- STATE OF COLORADO } CITY AND ) SS. COUNTY OF DENVER ) The foregoing instrument was acknowledged before me by M. J. Davis, as Attorney-in-Fact for Texaco Exploration and Production Inc., this o~ ? day of .~~ _, 2001. Witness my hand and official seal. Notary Public My Commission Expires: STATE OF COLORADO ) CITY AND ) SS. '" COUNTY OF ~en ~ e ~ ) The foregoing instrument ' was acknowledged before me by J~'-/'? J',,-?/-,, , as Attorney-in-Fact for Cabot Oil & Gas Corporation, this day of. ,///o ~,er~ Zt,,- ., 2001. Witness my hand and official seal. -5-