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MATERIALS EXAMIIv7ED <br />1. Title Update prepared by Mr. Richard E. Martin, Lone Tree Energy & Associates, LLC,' <br />covering the captioned lands, for the period from "First Day of Recording" to May 18, 200'7 at 7:00 , <br />a.m. based on records maintained by the "Recorder of Deeds for Weld County, Colorado". <br />2. Personal examination of title chain, documents and materials affecting the subject lands as <br />provided to the undersigned by PDC,including the materials heretofore referenced, and covering the <br />period from inception of title to May 1$, 2007 at 7:00 a.m. <br />OWNERSHIP (As of May 18, 2007 at 7:00 a.m.} <br />STJRFACE OWNERSHIP <br />Tawnshi_p 3 North, Range 64 ~Vest_ 6`~ P.M. <br />Section 25: Sit; <br />containing 320.00 acres, more or less <br />Coors Energy Company 100.000000°!0 <br />MINERAL OtV~~ERSHIP <br />Township 3 North Rana_e 64 West. 6~ P.M. <br />Section 2~: S/2; <br />containing 320.00 acres, more or Less <br />L. F. Ranch Ca., a Colorado corporation 100.000000% <br />LEASEHOLD OWNERSHIP <br />Township 3 North. Rance C~4 West., b``'` P.M. <br />Section 25: S/2; <br />containing 320.00 acres, more or less <br />WORKING INTEREST ~~ N~RI <br />Petroleum Development Corporation 1.00000000 0.$0000000 <br />OVERRIDING ROYALTY II`rTEREST <br />Spool Holding, LLC, <br />a Texas limited liability company o.as0aoo0o <br />2 "it is distinctly understood and agraed as evidenc:'d by your <br />acceptance of this 6plnton that PetroieUm Development <br />Corporation and its subsidiaries are in noway Viabie to.any <br />parson, firm of eorporaticn for any lass or inconvenience <br />;c~sianed by the use of or raiianre u on this opinion " <br />