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HomeMy WebLinkAbout906752CHAVES COUNTY, NEW MEXICO EDDY COUNTY, NEW MEXICO LEA COUNTY, NEW MEXICO GRANT COUNTY, OKLAHOMA STEPHENS COUNTY, OKLAHOMA CROOK COUNTY, WYOMING LINCOLN COUNTY, WYOMING ATASCOSA COUNTY, TEXAS MONTGOMERY COUNTY, TEXAS NOLAN COUNTY, TEXAS NUECES COUNTY, TEXAS OLDHAM COUNTY, TEXAS POTTER COUNTY, TEXAS SMITH COUNTY, TEXAS RECEIVED 2/28/2005 at 11:55 AM RECEIVING # 906752 BOOK: 579 PAGE: 689 JEANNE WAGNER LINCOLN. .COUNTY CLERK, KEMMERER, WY FIRST AMENDMENT TO DEED OF TRUST, MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF PRODUCTION AND FINANCING STATEMENT (As-Extracted Collateral including, oil, gas and minerals) [Corkran Energy, LP] Dated as of February 8, 2005 Please return documents with filing information to: James R. Leeton, Jr. Morgan & Leeton, P.C. 306 West Wall, Suite 700 Midland, Texas 79701 THIS FIRST AMENDMENT TO DEED OF TRUST (INCLUDING FINANCING STATEMENT) IS TO BE FILED FOR RECORD IN TI-[E REAL ESTATE RECORDS. THIS INSTRUMENT CONTAINS AFTER-ACQUIRED PROPERTY PROVISIONS, SECURES PAYMENT OF FUTURE ADVANCES AND COVERS PROCEEDS OF COLLATEIC4L. THIS INSTRUMENT CONTAINS A NOTICE OF SECURITY INSTRUMENT AFFECTING REAL PROPERTY IN EACH COUNTY IN WHICH IT IS RECORDED. THIS INSTRUMENT COVERS "OTHER INDEBTEDNESS" AS DEFINED IN SECTION 1.3 OF THE ORIGINAL OIL AND GAS DEEDS OF TRUST AND IS TO BE TREATED AS A "LINE OF CREDIT MORTGAGE" WITHIN THE MEANING OF SECTION 48-7-4, N.M.S.A. 1978. THIS INSTRUMENT SHALL BE EFFECTIVE .AS, AMONG OTHER THINGS, A SECURITY AGREEMENT AND FINANCING STATEMENT UNDER THE UNIFORM COMMERCIAL CODE. COLLATERAL INCLUDES FIXTURES AFFIXED TO, AS-EXTRACTED COLLATERAL (INCLUDING OIL, GAS AND OTHER MINERALS) PRODUCED FROM AND ACCOUNTS ATTRIBUTABLE THERETO, SAID PRODUCTION AND ACCOUNTS BEING FINANCED AT THE WELLHEAD OF THE WELLS LOCATED ON THE PROPERTYES DESCRIBED IN EXHIBIT "A" TO THE ORIGINAL OIL AND GAS DEED OF TRUST, WHICH OIL AND GAS LEASES AND LANDS AND DESCRIPTIONS THEREOF ARE INCORPORATED HEREIN BY REFERENCE AND ADDITIONAL PROPERTIES DESCRIBED IN EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF. A POWER OF SALE HAS BEEN GRANTED IN THIS INSTRUMENT. A POWER OF SALE MAY ALLOW THE TRUSTEE, BENEFICIARY OR LENDER TO TAKE THE MORTGAGED PROPERTY AND SELL IT WITHOUT GOING TO COURT IN A FORE CLOSURE ACTION UP ON DEFAULT BY THE GRANTOR UNDER THIS INSTRUMENT. NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOI,I ,OWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN TI-IrE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. 0690 " ' FIRST AMENDMENT TO DEED OF TRUST, MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF PRODUCTION AND FINANCING STATEMENT (A POWER OF SALE HAS BEEN GRANTED IN THIS MORTGAGE. A POWER OF SALE MAY ALLOW THE TRUSTEE, BENEFICIARY OR LENDER TO TAKE THE MORTGAGED PROPERTY AND SELL IT WITHOUT GOING TO COURT IN A FORECLOSURE ACTION UPON DEFAULT BY THE GRANTOR UNDER THIS MORTGAGE). NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS- YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. This First Amendment to Deed of Trust, Mortgage, Security Agreement, Assignment of Production and Financing Statement dated February 8, 2005, ("First Amendment" or "First Amendment to Deed of Trust") is from CORKRAN ENERGY, LP, a Texas limited partnership, whose General Partner is Hummingbird Investments, LLC, a Texas limited liability company, whose address is 2219 Westlake Drive, Suite 120, Austin, Texas 78746 and whose organizational number is 14341310, herein called the "Grantor" and/or "Mortgagor"), to ROBERT D. SOUTHERLAND, Trustee, whose address is P. O. Box 3903, Midland, Midland County, Texas 79702 (hereinafter called the "Trustee") for the benefit of COMMUNITY NATIONAL BANK whose address is P. O. Box 3903, Midland, Texas 79702 (hereinafter called the "Beneficiary" and/or "Lender"). WHEREAS, Grantor (herein sometimes called the "Borrower") executed (a) a Term Promissory Note dated June 28, 2004 in the original principal amount of $1,968,000.00 payable to Lender on or before January 28, 2006 ("June 2004 Term Note") and (b) a Revolving Line of Credit Note dated June 28, 2004 having a face amount of $1,500,000.00 payable to Lender on or before January 28, 2006 ("June 2004 Line of Credit Note', and when taken with the June 2004 Term Note, hereinafter referred to collectively as "June 2004 Notes"), which June 2004 Notes are secured by a Deed of Trust, Mortgage, Security Agreement, Assignment of Production and Financing Statement dated June 28, 2004 from Grantor to Robert D. Southerland, Trustee for the benefit of Beneficiary (the "Original Oil and Gas Deed of Trust") recorded in the Volume and Pages of the respective County Clerks' offices and/or Offices of the Recorder set out in Schedule I, attached hereto and made a part hereof, covering those certain leases, lands and other oil and gas properties along with equipment located thereon and proceeds derived therefrom described in Exhibit "A" attached to the Original Oil and Gas Deed of Trust, which leases, lands and other oil and gas properties along with descriptions thereof are incorporated herein by reference ("Previously Mortgaged Properties"); and WHEREAS, Borrower has or will execute (a) a Revolving Line of Credit Note dated February 8, 2005 having a face amount of $1,000,000.00 payable to Beneficiary ("February 2005 Line of Credit Note") and (b) a Term Promissory Note dated February 8, 2005 in the original principal amount of $2,000,000.00 payable to Beneficiary ("February 2005 Term Note" and when taken with the February 2005 Line of Credit Note, hereinafter referred to collectively as "February 2005 Notes"), which February 2005 Term Note renews, extends and increases the June 2004 Term Note described above; and WHEREAS, in consideration of COMMUNITY NATIONAL BANK advancing additional funds to Borrower, Grantor agrees to mortgage and pledge to COMMUNITY NATIONAL BANK additional leases and lands located in Eddy County, New Mexico described in Exhibit "A" attached hereto and made a part hereof; and WHEREAS, the parties desire to amend the Original Oil and Gas Deed of Trust (herein sometimes referred to as "Oil and Gas Deed of Trust") by this instrument so as to (a) ratify and confirm that the liens created by the Oil and Gas Deed of Trust secure not only the June 2004 Notes described above but also the February 2005 Notes set out above, (b) to amend Section 1.3 (a) and (b) of the Oil and Gas Deed of Trust to include the language set out below, (c) to supplement the Exhibit "A" to the Oil and Gas Deed of Trust so as to include the additional leases and lands described in Exhibit "A," attached hereto, as Mortgaged Properties to the Oil and Gai Deed of Trust and (d) to otherwise conform the terms of the Oil and Gas Deed of Trust to the February 2005 Notes. NOW THEREFORE, in consideration of the premises set out above by COMMUNITY NATIONAL BANK to the Grantor, the receipt and sufficiency of which is hereby acknowledged, COMMUNITY NATIONAL BANK and CORKRAN ENERGY, LP, a Texas limited partnership, herebyrenew, extend, amend, continue and supplement the Oil and Gas Deeds of Trust as follows: SECTION I Amendment to Section 1.3(a) and (b) of the Oil and Gas Deed of Trust Section 1.3(a) and (b) of the Oil and Gas Deed of Trust are hereby amended in their entirety to read as follows: (a) All indebtedness and other obligations now or hereafter incurred or arising pursuant to the provisions of that certain Restated Loan Agreement dated February 8, 2005, among Grantor and COMMUNITY NATIONAL BANK, whose address is P.O. Box 3903, Midland, Midland County, Texas 79702 (herein called "Lender"), and all supplements thereto and amendments or modifications thereof, and all agreements given in substitution therefor or in restatement, renewal or extension thereof, in whole or in part (such Loan Agreement as the same may from time to time be supplemented, amended or modified, and all other agreements given in substitution therefor or in restatement, reneWal or extension thereof, in whole or in part, being herein called the "Agreement"); (b) Three promissory notes dated (i) June 28, 2004 having a face amount of one million five hundred thousand dollars ($1,500,000.00) as modified by that certain First Modification of Note dated February 8, 2005, (ii) June 28, 2004 in the original principal amount of one million nine hundred sixty-eight thousand dollars ($1,968,000.00) as renewed and extended by that certain Promissory Note dated February 8, 2005 in the original principal amount of two million dollars ($2,000,000.00) and (iii) February 8, 2005 having a face amount of one million dollars ($1,000,000.00) all of which are made by Grantor and payable to the order of Lender on or before January 28, 2006, bearing interest as therein provided, and containing a provision for the payment of a reasonable additional amount as attorneys' fees, and all other notes given in substitution or replacement therefor or in modification, renewal or extension thereof, in whole or in part (such note(s), as from time to time supplemented, amended, or modified and all other notes given in substitution or replacement therefor, or in modification, renewal or extension thereof, in whole or in part, being hereinafter called the "Note" and Lender and each subsequent holder of the Note or any part thereof or interest therein, or any of the other secured indebtedness being herein called "Noteholder"); SECTION II Mortgage of Additional Property and Ratification and Reaffirmation of Oil and Gas Deed of Trust To secure and enforce the obligations (as defined in the Original Oil and Gas Deed of Trust) Grantor, for and in consideration of the sum of Ten Dollars ($10.00) cash and other good and valuable consideration in hand paid to Grantor, the receipt and sufficiency of which are hereby acknowledged and for and in consideration of the debt and trusts hereinafter mentioned has GRANTED, BARGAINED, SOLD, ASSIGNED, TRANSFERRED AND CONVEYED and by these presents does GRANT, BARGAIN, SELL, ASSIGN, TRANSFER AND CONVEY unto Robert D. Southerland, Trustee, for the benefit of COMMUNITY NATIONAL BANK and to the Trustee's Successors or Substitutes in Trust all of Grantor's right, title and interest, whether now owned or hereinafter acquired, in and to the Mortgaged Properties (as defined in the Oil and Gas Deed of Trust) not heretofore released, previously described in the Exhibit "A" to the Original Oil and Gas Deed of Trust, which leases, lands and other oil and gas properties and descriptions thereof are incorporated herein by reference and additional leases, lands and other oil and gas properties described in Exhibit "A," attached hereto. SECTION III Warranties, Covenants and Aereements The warranties, covenants and agreements contained in the Original Oil and Gas Deed of Trust are hereby remade by the Grantor and said warranties, covenants and agreements (together with the remedies contained in the Original Oil and Gas Deed of Trust) are in full force and effect as of the date hereof and shall apply to the Mortgaged Properties described in the Exhibit "A" to the Original Oil and Gas Deed of Trust, which Previously Mortgaged Properties and descriptions thereof are incorporated herein by reference and in Exhibit "A," attached hereto, to the same extent and with the same force and effect as of the date of the Original Oil and Gas Deed of Trust. SECTION IV Miscellaneous Provisions Section 4.1 This First Amendment shall be considered as an amendment and supplement to the Oil and Gas Deed of Trust and except as herein expressly amended and supplemented, the Oil and Gas Deed of Trust is hereby ratified, approved and confirmed in every respect and all references to the Oil and Gas Deed of Trust and in any other document shall hereinafter be deemed to refer to the Oil and Gas Deed of Trust as amended hereby. Section 4.2 With respect to all personal property constituting a part of the Mortgaged Properties, this First Amendment shall also be effective as an amended chattel mortgage and/or security agreement. Section 4.3 Except as amended hereby, the Oil and Gas Deed of Trust shall remain in full force and effect. Nothing in this First Amendment releases any right, claim, lien, security interest or entitlement of the Trustee or Beneficiary created by or contained in the Oil and Gas Deed of Trust nor releases the Grantor from any covenant, warranty or obligation created by or contained in the Oil and Gas Deed of Trust. Section 4.4 The indebtedness evidenced by the February 2005 Term Note is in renewal and extension of the June 2004 Term Note and the indebtedness evidenced by the February 2005 Line of Credit Note is in addition to the June 2004 Notes described above and nothing contained herein shall be deemed to release or terminate any liens or security interest which secures payment of such June 2004 Notes. Section 4.5 The Oil and Gas Deed of Trust as amended hereby contains after-acquired property provisions and secures future advances. This First Amendment supplements the Oil and Gas Deed of Trust and is a supplemental Deed of Trust and Mortgage of both real and personal property, a supplemental security agreement, a supplemental assignment of production and a financing statement and also covers proceeds and fixtures. This First Amendment shall be effective as a financing statement filed as a fixture filing with respect to all fixtures included within the properties covered by the Oil and Gas Deed of Trust as amended hereby and is to be filed for record in the real estate records of each county where any part of such property (including such fixtures) is situated. This First Amendment shall also be ~ffective as a financing statement covering as-extracted collateral including, but not limited to, oil, gas and other minerals. Section 4.6 The business and mailing addresses of the Grantor, Trustee and Beneficiary are set forth in the commencement paragraph of this First Amendment. Section 4.7 The terms, provisions, covenants and conditions hereof shall be binding upon the Grantor and its respective successors and assigns and shall inure to the benefit of the Beneficiary and its successors and assigns and shall constitute covenants running with the land. All references in this First Amendment to Grantor and Beneficiary shall be deemed to include all such successors and assigns. 0693 Section 4.8 Any default in any one or more of the above-described Note(s) and/or Letter of Credit Note and any substitutions, replacements, modifications, renewals and/or extensions thereof shall be deemed to be a default of the remaining Notes. Additionally, all of the above- described Note(s) and Letter of Credit Note and any substitutions, replacements, modifications, renewals and/or extensions thereof shall be secured by the Original Oil and Gas Deed of Trust as amended. Section 4.9 This First Amendment to Deed of Trust may be executed in a number of identical counterparts, each of which shall be deemed an original, and all of which are identical except that in order to facilitate recordation, portions of Exhibit "A" hereto which describe (a) Mortgaged Properties situated in counties other than the particular county in which a counterpart hereof is being recorded and/or (b) the Previously Mortgaged Properties described in the Exhibit "A" to the Original Oil and Gas Deed of Trust which leases and descriptions thereof are incorporated herein by reference may be omitted from such counterpart. Section 4.10 THIS FIRST AMENDMENT TO DEED OF TRUST AND MORTGAGE ALONG WITH THE ORIGINAL OlL AND GAS DEED OF TRUST SHALL BE DEEMED TO BE A CONTRACT ENTERED INTO PURSUANT TO THE LAWS OF THE STATE OF TEXAS AND SHALL IN ALL RESPECTS BE GOVERNED, CONSTRUED, APPLIED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS PROVIDED HOWEVER, THAT WITH RESPECT TO THE CREATION, PERFECTION, PRIORITY AND ENFORCEMENT OF THE LIEN AS TO THE MORTGAGED PROPERTIES IN THE STATES OF NEW MEXICO, OKLAHOMA AND WYOMING, THE LAWS OF THE STATES OF NEW MEXICO, OKLAHOMA AND WYOMING SHALL APPLY. Section 4.11 THIS FIRST AMENDMENT TO DEED OF TRUST AND THE ORIGINAL OIL AND GAS DEED OF TRUST SHALL SECURE THE TOTAL OF THE AMOUNTS DEFINED IN SECTION 1.3 OF THE OIL AND GAS DEED OF TRUST UP TO A MAXIMUM AMOUNT, AT ANY GIVEN TIME, OF TWICE THE ORIGINAL PRINCIPAL AMOUNT OF THE NOTES. Section 4.12 This First Amendment to Deed of Trust and the Original Oil and Gas Deed of Trust are subject to the terms and conditions of that certain Restated Loan Agreement dated on or about the date of this First Amendment by and between Grantor, Beneficiary and Dennis D. Corkran. [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] (sign ature page follows) NOTICE THIS FIRST AMENDMENT TO OIL AND GAS DEED OF TRUST, THE ORIGINAL OIL AND GAS DEED OF TRUST, THE NOTES DESCRIBED ABOVE AND THE ACCOMPANYING UCC-1 AND UCC-3 FINANCING STATEMENTS, GUARANTY AND RESTATED LOAN AGREEMENT AND/OR ANY AND ALL OTHER DOCUMENTS EXECUTED AT OR NEAR THE TIME OF EXECUTION OF THIS DOCUMENT CONSTITUTE A "LOAN AGREEMENT" AS DEFINED IN SECTION 26.02(a) OF THE TEXAS BUSINESS & COMMERCE CODE, AND REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRiTTEN ORAL AGREEMENTS BETWEEN THE PARTIES. IN WITNESS WHEREOF, this First Amendment is dated the date set out above, although is executed on the date of the acknowledgments annexed hereto. GRANTOR: CORKRAN ENERGY, LP, a Texas limited partnership By: Hummingbird Investments, LLC, a Texas limited liability company, its General Partner By: Dennis D. Corkran, President and Operating Manager BENEFICIARY: COMMUNITY NATIONAL BANK By: STATE OF TEXAS § COUNTY OF MIDLAND § This instrument was acknowledged before me on this ~C~da ofF y ebruary, 2005 by DENNIS D. CORKRAN, as President and Operating Manager of HUMMINGBIRD INVESTMENTS, LLC, as General Partner for CORKRAN ENERGY, LP, a Texas limited partnership, on behalf of said limited partnership. ~5.x x'3.."-". :. ' ~,.~. .~' .~, .... -.....,e2 % . :..k ..... %:? o~- ,~?v ...: ~ NOTARY PUBLIC, STATE OF ffEXAS -~. -...¢.4.kz~ ...' ,e~ '~., ? ,.."-:7.9 ..... ' '"'" ,..'' ")n OB(3'1.* 5 STATE OF TEXAS § COUNTY OF MIDL~ § This instrument was acknowledged before me on the day of February, 2005 by R. DANNY CAMPBELL, as Executive Vice President of COMMUNITY NATIONAL BANK, on behalf of said bank. c:\cnb\corkran~feb05\d or. 1 amd 6 ..... e~ ? SCHEDULE I Attached to and made a part of that certain First Amendment to Deed of Trust, Mortgage, Security Agreement, Assignment of Production and Financing Statement dated February 8, 2005 fi.om CORKRAN ENERGY, LP, as Grantor, to ROBERT D. SOUTHEtLLAND, Trustee, for the benefit of COMMUNITY NATIONAL BANK, as Beneficiary. Deed of Trust, Mortgage, Security Agreement, Assignment of Production and Financing Statement dated June 28, 2004 from Corkran Energy, LP, as Grantor, for the benefit of Community National Bank, as Beneficiary, recorded in the following Volume and Pages of the respective records of the County Clerks' offices and/or Office of the Recorders set out below covering the leases, lands and other properties as described in said Deed of Trust, to- wit: COUNTY/STATE Chaves County, New Mexico Eddy County, New Mexico Lea County, New Mexico Grant County, Oklahoma Stephens County, Oklahoma Crook County, Wyoming Lincoln County, Wyoming Atascosa County, Texas Montgomery County, Texas Nolan County, Texas Nueces County, Texas Oldham County, Texas Potter County, Texas Smith County, Texas VOLUME/PAGE FILE NO. RECORDS 495/1123 Official Public 556/1158 Official Public 1315/693 Official Public 556/819 Official Public 3002/225 Official Public 420/577 Official Public 560/826 Official Public 278/776 Real Property 624-10-1041 Real Property 685/1 Real Property 2004037742 Real Property 177/309 Real Property 3486/472 Real Property 7563/409 Real Property UCC-1 Financing Statement from Corkran Energy, LP, as Debtor, for the benefit of Community National Bank, as Secured Party, having File No. 04-0073600252 filed with the Secretary of State of Texas on July 5, 2004. [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] c Acnb\corkran~feb05kscheduleI Page 1 of 1 EXItIBIT "A" WYOMING Attached to and made a part of that certain First Amendment to Deed of Trust, Mortgage, Security Agreement, Assignment of Production and Financing Statement dated February 8, 2005, from COtLKRAN ENERGY, LP, as Grantor, for the benefit of COMMUNITY NATIONAL BANK. 1. All of Grantor's and/or Debtor's (hereinafter collectively referred to as "Grantor") interest in oil, gas and other mineral leases or oil and gas leases, overriding royalties, minerals, royalties and properties as described below or covering the lands described below, whether in whole or in part, together with all of Grantor's interest in all oil, gas and other mineral leases or oil and gas leases, overriding royalties, minerals, royalties and properties with which any of the foregoing may now or hereafter be pooled, unitized or comrnunitized (and any extensions and renewals thereof), regardless of the descriptions, working interests and net revenue interests set out below, if any. The depth limitations, land descriptions and descriptions of undivided working interests and net revenue interests reflected below and the listing of any percentages, decimal or fractional interest in this Exhibit "A" shall not be deemed to limit or otherWise diminish the interests being subjected to the lien, security interest and assignment of this instrument. It is intended that this instrument shall cover and affect Grantor's entire present and future interest in the Mortgaged Properties. The listings of depth limitations, land descriptions, working interests and net revenue interests in this Exhibit "A" are made for the sole purpose of giving effect to the title warranties of Grantor contained in this instrument. 2. Some of the land descriptions in this Exhibit "A" may refer only to a portion of the land covered by a particular Lease. Some of the land descriptions in this Exhibit "A" for certain Leases may be land descriptions of pooled or proration units pertaining to one or more of such Leases and, therefore, describe more lands than are covered by a particular Lease. This instrument is not limited to the land described in this Exhibit "A" but is intended to cover the entire present and future interest of Grantor in any Lease described below, even if such interest relates to land not described in this Exhibit "A." Reference is made to the land descriptions contained in the documents of title whether Oil and Gas Leases or Assignments of Oil and Gas Leases as described in this Exhibit "A" and/or filed with the respective County Clerks' Office, Office of the Recorder, Bureau of Land Management or applicable state land office. To the extent that the land descriptions in this Exhibit "A" are incomplete, incorrect, or not legally sufficient, the land descriptions contained in the documents so recorded and/or filed are incorporated herein by this reference. 3. If applicable, the terms "BPO WI" and "BPO NRI" in this Exhibit "A" specify the warranted working interest and net revenue interest of Grantor in a particular well or property before the occurrence of a particular event such as payout of costs with respect to such well or property. The terms "APO WI" and "APO NRI" in this Exhibit "A" specify the warranted working interest and net revenue interest of Grantor in a particular well or property after the occurrence of a particular event such as payout of costs with respect to such well or property. 4. Within each Lease or Assignment description, the following explanations apply: "Lessor" and "Lessee" refer to the original lessor and lessee set forth in the lease. "Assignor" and "Assignee" refer to the parties identified in a particular document transferring an interest in the affected properties to Grantor. The descriptions are given by fractions of each section, Section number, To. wnship and Range. For example, T = Township, R = Range, Blk. = Block, Sec. = Section, N = North, S = South, E = East, W = West The descriptions may also include characterizations of interests described by abbreviations. For example, APO = "after pay-out", BPO = "before payout", WI = "working interest", NRI = "net revenue interest", RI = "royalty interest", ORR][ = "overriding royalty interest" The designation "T-22-S, R-37-E" refers to Township 22 South, Range 37 East. The description "N/2 of the SE/4 of Section 8, T-23-S, R-37-E" refers to the North half of the Southeast quarter of Section 8, Township 23 South, Range 37 East. Fractions are fractions ora section. Fractions may also be written with alpha characters as numerators and numeric characters as denominators. For example, NW/4 = the Northwest one-quarter of a section. Page 1 of 2 -": CROOK COUNTY, WYOMING WM Federal All of Grantor's right, title and interest in and to the following described Oil and Gas Lease(s) and/or Oil, Gas and Mineral Lease(s), insofar as said lease(s) covers the lands described below: Lessor: Lessee: Date: Description: United States of America - W 66386 Kristie Rae Cobb March 1, 1979 The SW/4 of the NW/4 of Section 9, Township 52 North, Range 68 West, 6th P.M, Crook County, Wyoming LINCOLN COUNTY, WYOMING Fontenelle Unit and Font Federal Wells All of Grantor's right, title and interest in and to the following described Oil and Gas Lease(s) and/or Oil, Gas and Mineral Lease(s), insofar as said lease(s) covers the lands described below: Lessor: Lessee: Date: Recorded: Description: United States of America- Serial No. W 38501 Unknown. February 28, 1983 Not required. Township 25 North, Range 111 West, 6th PM, Lincoln County, Wyoming Section 6: Lots 6 and 7, the E/2 of the SW/4 and the SE/4 Section 7: Lots 3 and 4, the E/2 of the SW/4 and the SE/4 Section 5: The W/2 All in Lincoln County, Wyoming [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] c:\cnbXco~an~eb05\dot. 1 amd.exa(wyoming) Page 2 of 2