HomeMy WebLinkAbout877820 PARTIAL ASSIGNMENT~)~ ~~D GAS RIGHTS
nOOK~;i_?R PAGE8 3 '~.Y- (Wellbore Only)
THIS PARTIAL ASSIGNMENT OF OIL AND GAS ~GHTS (Wellbore Only),
hereina~r called the "Assigment" is made by and between TEXACO EXPLO~TION AND
PRODUCTION INC., a Delaware co~ormion, with a mailing address of 4601 DTC Blvd, Denver,
Colorado 80237 ("Texaco"), and CABOT OIL & GAS CO--OPTION., with a mailing address
of 600 17TM Street, Suite 900.North, Denver, Colorado 80202 ("Cabot").
RECITALS
WHEREAS, the parties hereto previously entered into that certain Wellbore Farmout
Agreement ("Agreement") dated May.10, 1995, between Texaco(successor in interest to Marathou
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 # 100 well (hereinafter called the "Well") located in the NW¼ of Section 29, 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
'rights committed to that certain federal "Unit Agreement for the Development a~d Operation of the
Whiskey Buttes Unit Ar~a, 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 formation underlying the following described
lands, situate in Lincoln County, Wyoming:
Township 21 North, Range 112 West, 6th P.M.
SectiOn 29:NW/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
WItEREAS, 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 working imerest derived from the Unit Agreements in an applicable participating area
within the Unit under the Whiskey Buttes Unit Agreement, or in the absence of a participating area,
that Texaco 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 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
WHEREAS, under the terms of the Agreement, the Well paid out on October 4, 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 overriding royalty
interest (as would have been reserved had the earning assignment been prepared and delivered to
Cabot) to ax undivided forty percent (40%) of its Pre-Farmout Working Interest, effective October
5, 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 11,575'), 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 coyered 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 May
10, 1995, 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), 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;
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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 Area, and thereby Cabot's share of production from the Well and its
proportionate share of the costs and expenses of operating, maintaining and developing the Well may
increase or decrease.
4. This Assignment is made and accepted without any representation or warranty or
covenant of any kind, either express or implied.
5. Texaco and Cabot each expressly reserve the fight, at any time and from time to time,
to take in kind or otherwise dispose 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 tenrts, 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 interest's 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.
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EXECUTED on the dates appearing with the respective signatures below, but effective for
ail purposes, fi'om October 5, 199'I.
TEXACO EXPLORATION AND PRODUCTION INC.
By.
,1¢~ M. J. Davis ( -
Attorney-in-Fact
CABOT OIL & GAS CORPORATION
Name fi. -~'co't--/- ~.'t-t-r,~.
Its Attorney-in-Fact
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STATE OF COLORADO )
CITY AND ) SS.
COUNTY OF DENVER )
The foregoing instrument was ac 'knowledged before me by M. J. Davis, as Attorney-in-Fact
for Texaco Exploration and Production Inc., this o~ ¢1 day of.~ ., 2001.
Witness my hand and official seal.
Notary Public
My Commission Expires:
i(.~"~ .... ~:?~.~ MAUFiEEN SUE KERN
STATE OF COLORADO )
CITY AND. ) SS.
COUNTY OF Den u,,',- )
The foregoing instrument was acknowledged before me by
J"~, o/'/ ~./-/t,,- , as Attorney-in-Fact for Cabot Oil & Gas Corporation, this
dayof /¢/~ ~e~/~* ,2001.
Witness my hand and official seal.
My Commission Expires:
NOTARY