2008-04-14_PERMIT FILE - C1981028 ‎(2)‎

• Permit No: C1981028
• IBM Index Class Name: Permit File
• Doc Date: 4/14/2008
• Section_Exhibit Name: Appendix R-10 Drill Well Information
• Media Type: M
• Archive: No

COMMENTS AI~TD REOUIREi11ENTS
COMMENT 1~r0. 1
There appears of record at Book 1360, Reception No. 2312653, Memorandum of Fannout
Agreement which gives notice of Farmout Agreement dated effective September 8, 1992, by and
between Aceite Energy Corporation and Gerrity Oil 8c Gas Corporation. Please note, a copy of the
Fannout Agreement was not included in the materials examined. .
Pursuant to said Memorandum, Aceite granted to Gerrity the exclusive right to earn 100%
of its working interest in, among other, the captioned lands. It is not clear from the materials
examined whether Gerrity, its successors and assigns, satisfied its obligations under the Farmout
Agreement, in whole or in part. Consequently, the undersigned cannot opine whether Gerrity, or its
successors, have any legal or equitable claim to Oil and Gas Lease No.1 above and/or the captioned
lands, adverse to your interest therein.
REOtJIREMENT NO. 1
Verify that no party claims any interest in the captioned lands by virtue of the aforesaid
Farmout Agreement adverse to PDC's interest therein.
COMMENT NO.2
By Assignment dated effective May 1, 2006, recorded at Reception No. 3392753, Ray A.
Snead, Jr. Bonne Rhea Craig and Joseph R. McCartt, Trustees of The Spool Trusts assigned to Spool
Holding, L.L.C., all right, title and interest in and to Oil and Gas Lease Na 1 above. The materials
examined included Statement of Authority recorded at Reception Itiro. 315 $25 5, for The Spool Trust,
which states that the said Trust was formed under the la~~vs of Texas, and that the Trustees are Ray
A. Snead, Bonne Rhea Craig and Joseph R. McCartt.
There is a dzscrepancy as between the Statement of authority and documents in the chaui of
title to the captioned lands. The Statement refers to the trust as The Spool Trust, whereas the
documents in the chain of title refer to the trust as The Spool Trusts. Also, please note, the
Assignment first referenced above lists Ray t4. Snead, Jr., as Trustee, whereas the Statement
identifies Ray A. Snead as a Trustee.
RF,OLTIREMENT NO.2'
File of record in ~TJeld County, Colorado, affidavits stating that The Spool Trust and The
Spool Trusts are one and the same, and that Ray A. Snead and Ray A. Snead, Jr. as nanied in the
aforesaid Assigmment and Statement is one and. the same person.
"t is distinc~y understood and agreed as evidenr~d by your
apfianc~e of this opinion th3f P2trolaum Reveiopment
16 ~oi`~~t3f'~~on and its subsidiarias are ir1 no quay liable to any
.gin; .~„~, fi~ of corporation for any loss or inconvenience
~~:s~':;:~;~;i~:~ by ~e use of Gr rciian~ upon this opinion.°