. com FILED...Justin C. Rammell, JD, [email protected] Utah Board of Oil, Gas and...

29
Justin C. Rammell, JD, LL.M. [email protected] Utah Board of Oil, Gas and Mining 1594 W. North Temple Salt Lake City, UT 84116 FILED Box901622 Sandy,UT 84090 P: (801) 432-0632 F: (888) 7r2-s274 www.rammell-law. com June 1,2017 Re: Føilure to Prouide Pqtment Informøtion JUN 0 5 20li SECRETARY BOARD OF OIL, GAS & MINING i)ear Bcarii, Our office represents the Alan R. Wilson Living Trust, datedJune 6,2007. The Trust owns mineral rights in various tracts in Uintah County, State of Utah (shown on Exhibit ((4"). Sorne of these minerals have been leased to Crescent Point Energy Corp. by that certain Oil and Gas Lease dated October 4, 2013 and recorded on Novemb er 14,2073 in Book 1357,Page765 as Entry 2013011006 (attached as Exhibit ((8"). Other tracts have producing wells but have not been leased, spaced or pooled. These lands are producing oil and gas from more than a dozen wells. The current operator is Crescent Point Energy Corp. Crescent continues to obtain permits and explore on these lands. UIRH COon ANN. S 40-6-9 requires that operators, such as Crescent, provide reporting and payment information to royalty owners. This includes sales information, volumes sold, price per unit, lists of deductions, the owner's decimal interest and the like. In subsection (2), the code section states that royalty owners not receiving this information may contact the Board for an investigation. The purpose of this letter is to request that investigation. Crescent has refused to provide production and payment information to the Trust after repeated requests from the both the undersigned and the Trustee of the Trust, Ms. Laura Magpali. The Trustee, along with the undersigned, have left multiple voicemails and emails and not received any response. These communications have been sent to both Crescent and their attorneys. We believe that there are significant funds due and owning the Trust. We further note that the Trust has not been notified of any "suspension of proceeds," since resolving various estate issues last year. Crescent is not entitled to without royalty without providing the Trust with a copy of the relevant portion of a title opinion from a Utah Licensed attorney objecting to the lack of good and marketing title of record with necessary curative action requirements, pursuant to UTAH CODE ANN' S40-6-9 (7)(e) and industry custom. LIcsNsao ro PRACTICE [.¡ UTAH,.\il'Yomtc, COLORADO & NNSRASKA

Transcript of . com FILED...Justin C. Rammell, JD, [email protected] Utah Board of Oil, Gas and...

Page 1: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

Justin C. Rammell, JD, [email protected]

Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116

FILED

Box901622Sandy,UT 84090P: (801) 432-0632F: (888) 7r2-s274

www.rammell-law. com

June 1,2017

Re: Føilure to Prouide Pqtment Informøtion

JUN 0 5 20li

SECRETARY BOARD OFOIL, GAS & MINING

i)ear Bcarii,

Our office represents the Alan R. Wilson Living Trust, datedJune 6,2007. The Trust owns mineral rights

in various tracts in Uintah County, State of Utah (shown on Exhibit ((4"). Sorne of these minerals have

been leased to Crescent Point Energy Corp. by that certain Oil and Gas Lease dated October 4, 2013 and

recorded on Novemb er 14,2073 in Book 1357,Page765 as Entry 2013011006 (attached as Exhibit ((8").

Other tracts have producing wells but have not been leased, spaced or pooled. These lands are producing

oil and gas from more than a dozen wells. The current operator is Crescent Point Energy Corp. Crescent

continues to obtain permits and explore on these lands.

UIRH COon ANN. S 40-6-9 requires that operators, such as Crescent, provide reporting and payment

information to royalty owners. This includes sales information, volumes sold, price per unit, lists ofdeductions, the owner's decimal interest and the like. In subsection (2), the code section states that

royalty owners not receiving this information may contact the Board for an investigation. The purpose ofthis letter is to request that investigation.

Crescent has refused to provide production and payment information to the Trust after repeated requests

from the both the undersigned and the Trustee of the Trust, Ms. Laura Magpali. The Trustee, along with

the undersigned, have left multiple voicemails and emails and not received any response. These

communications have been sent to both Crescent and their attorneys. We believe that there are significant

funds due and owning the Trust.

We further note that the Trust has not been notified of any "suspension of proceeds," since resolving

various estate issues last year. Crescent is not entitled to without royalty without providing the Trust with

a copy of the relevant portion of a title opinion from a Utah Licensed attorney objecting to the lack of good

and marketing title of record with necessary curative action requirements, pursuant to UTAH CODE ANN'

S40-6-9 (7)(e) and industry custom.

LIcsNsao ro PRACTICE [.¡ UTAH,.\il'Yomtc, COLORADO & NNSRASKA

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Utah Board of Oil, Gas and MiningRe: Crescent's Failure to Prouide Rolahy InformøtionPage | 2

We suspect that Crescent is refusing to provide the information because of a lawsuit between the parties

last summer, that has since been dismissed. The issue in dispute was a leasehold ratification obtained by

Crescent. Crescent, through their landman David Terry, subverted the Trust's attorneys to obtain a

ratification that doubled Crescent's net mineral interest in the Trust's mineral interests. The purported

purpose of the ratifrcation \Mas to confirm title after curative work was completed. However, through the

ratifìcation, Crescent doubled their net mineral interest in the lands without notifying the Trust of the

addition in interest or paying any consideration (such as a lease bonus). Initially, Crescent refused to

release the ratification or pay for the additional net mineral acreage.

The 1'rust sued Crescent for fraud and related counts in Case No. 160800069, fìled in the Eighth DistrictCourt, State of Utah in and for Uintah County. After answering, Crescent released the fraudulentratification to settle the matter. The Trust dismissed that fraud case with prejudice. Since that time,

Crescent has consistently refused to provide even basic information to the Trust.

Despite a complicated relationship between the parties, Crescent is still obligated to report and pay royalty

on the Trustts lands. We request that the Board investigate this matter pursuant to the code. Should you

have any questions, please do not hesitate to contact the undersigned. We look forward to a promptresolution on this matter.

Very Truly Yours,

Reumnlr Lew, PLLC

J Rammell

Page 3: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

Utah Board of Oil, Gas and MiningRe: Crescent's Føilure to Prouide Ro1ølt1 InformøtionPage | 3

Section 22

Section 26

Section 27:

Section 35:

Section 6:

Section 5:

EXHIBIT "A"

Township 4 S, Range 2 East, USM

Township 5 S, Range 3 East, USM

S%

Lots 3, 4, T, 8, rl, l2r SYrSwYo .NW%SW%,SW%SE%

Lors 1,2, W%NE%, NW%Lots 1,2, W%NE%, NW%

Lots 3, 4,5,6,NE%SW%, SEl4NWl¿

Township 5 S, 21East. SLM&BBeginning at corner No. 1, a sandstone 28x1'2x4 inches, marked 1-

6309, with mound ofstone, from which the South quarter corner to

Section Thirty-two in Township Four South; Range Twenty-OneEast of the Salt Lake Meridian, bears North two thousand six hundred

lorty feet distance;The, first course, South One Thousand two hundred eighty-one and

three-tenths feet intersect the South boundary of the Northeast

quarter ofthe Southwest quarter ofSection five in Township Five

South ofRange Twenty-one East ofthe Salt Lake Meridian, at East

One Thousand Two Hundred Seventy-three and eight-tenths feet

from the Southwest corner; two thousand six hundred forty feet to

corner No. 2, a cobble-stone 32x14x12 inches, marked 2-6309, with a

mound ofstone.Thence, second course, west two thousand six hundred forty feet to

corner No. 3, a lime cobble 25x8xó inches, marked 3-6309' with a

mound ofstone.Thence, third course, North two thousand six hundred forty feet to

corner No. 4, a limestone 40x18x6 inches, marked 4-6309, with a

mound ofstone.Thence, fourth course, East One thousand three hundred sixfy-six

and two-tenths feet intersect the West boundary olsaid Northeast

quarter ofthe Southwest quarter ofSection five, at North One

thousand two hundred eighty-one and five-tenths feet from the

Southwest corner; two thousand six hundred forry feet to corner No.1, the place ofbeginning; expressly excepting and excluding fromthese presents nfl that portion oi the grounci hereinbefore described,

.

embraced in said Northeast quarter ofthe Southwest quarter ofSection five; the premises herein granted containing one hundred

twenty-two acres and five hundred twenty-six thousandths of an

acres.722.526.

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Ehtrv 201301100ó.Book 1557 Paee ?ó5'.xy'l$14.00

PRoDUcERsBB-pArDUp 14-N0V-13 01:06RANDY SIHI{ON$

:.fiEOORDER' UINTAH EI]WTYT UTÊH

TflÊIlES RIUER LLË'i¡imz EVERGREEN pL SALT LAI(E 0ITY' U

oIL AND GAS LEAqffi tt' 0ARADIr âsH ' DEPUTY

:È{i,Th¡soilandGasLoaso("Leaso.')ismadethls-.jf-dayof-.Q'@þ'gI-.2013,byandbetvrêsn@Truetees of the Alan R. Wilson Livlnq Trust. dated June ô. 2007. whosb ìàddree_e ,ls 4807 Çranite Hlll Road, GrantE

Pass. Ore¡on 07526 ('Lossol' whether one or more) and croscsnt Polnt Enorgy U,$, Corp, r l)clrwarc Corpomtlotr whosg addr6ss le -$!-1I!ÞStreot, Suite I 800. Donvor, coloradg.80202 (hêrêinaftsr called 'Lsssee').

En t fV 2013011006

wtrNEssETH, For end in considgrat¡on of rEN DoL[ARs, the covsnants and asreomerits contained ,.ff::r.tllJ, ,Ïff:.]1lrr".considoration, the rocaipt and oumcioncy of wh¡ch are horgby scknowlodged, Lsssor doeE heråby grant, domlÉe, lea¡s snd let exolusively unlo saldLess€e, with the oxclusivo rlghts for the purpose6 of oxploring by goophysical and othor motho4$:0rtttlng and operâting for snd produoing th6rsfrom oilsnd âll gas ofwhaþo€vsr naturo or k¡nd (includlng coalbsd gas), and lay¡ng p¡pcllnes, tðlgphong lln6E, bu¡ld¡ng tanks, compmssor unit6, roådway8 8ndstruclurgs thoreon to produoo, savg and take carê of sgld producls, ond the ôxcluslvs rurfâcð qt bubeurlace rights and privilågð8 relsted ln 8ny månnorto any end all such operetlon8, and åny snd all othor rlghts and privllôgðs nêcosEary, lnc¡d€nt lo, or convenionl lor the opôrsllon slone or con¡olntly withngighbor¡ng land for such purposês, sll that cêrtain trect or trects of lsnd situated in l¡!¡lhL County, State of lEL doBcrlbed as follows, to wit:

Townshlo 4 South. Ralge 2 East. USMSection 35: Loll (41.77 ac), Lot 2 (32.38 ac), W%NE%, NW%

and contåln¡ng p14,f õ ecßs, mors or leÊs, end al8o, ¡n sdd¡tlon to tho sbgvo doscrlbod land, any and all ctrlps or percø|8 ol l8nd, other thân thoseconstltuting regulår governmentål subdlvisions sdjoin¡ng or contiguous to {ho abovs dsscribod land and owned or clslmod by Legsor, qll of the loro0o¡ngland beln0 hoiolnåñer refeffed to Ês ths "Premlóas' lt ls tha ñtontlon of lh6 Lossor hero¡n that tha Ptcmlses eovst and includó åll lsnds own6d orclâimed by LBssor in tho abovg numbgred govornmgntal s€c-tion of s€c,tions logothot wlth any ãnd all åccretions thgloto whôthor or not hðroin accurâtolyand completsly doscribêd.

1. lt ls agreed that thts Lease shall rema¡n ¡n full force for a tsrm of Flvo (õl years from lhis date ("Primary Term") and ås long thsroangr as oll or gaE

of whátsoover naturg or k¡nd is produced from tho Premises or on acroagg pooled oî unitizcd thorowith, or apÊrat¡ons âre conlinued as hårolnåfterprovided, ll, at the sxpirat¡on of tho Prhnâry T6rm, oil or gas ¡e not þelng producad from the Premls€s or on âcrðegs poolsd or unltizâd thsrgwlthbut L€8sss is then engaged ¡n dr¡lllng, reworking or dewalorlng operalions th6rçon, thgn this Leaso shall contlnus in forco so long rs suchoperâtions arô being coìtinuously prosôcutad. Oit6ratlons shell be consd6red to bo continuously proseculod if not more than ons hundrEd oighty-

1i OO¡ Oays shall elañse betweon iho complotion oi abandonmont of ong well and the boginning of oporatione for ths drllllng of s subsEquent w€ll. lfàfteid¡s¿ovgry of oiì or gas on the Premièes or on scroags pooled or un¡lizsd thorèwilh, the production thoroof should ceass from any cause aftortho primary tárm, this Lãase shall not tem¡natô lf L€sss€ comm6ncse add¡tlonel drilling, reworkrng or dowater¡ng oporâtions.within one hundredeighiy (180) days from date of cessation of producl¡on or from dato of complotion of â dry hols, lf oil or gâs shall be dlecovered and produced as areiuti ot suôh operaliono at or sfter the oxp,rat¡on of tha Primary Tsm, this Lêa8e chall cont¡nuo in force so long as oil or gâs is producod from lhôPremises or on gcreag€ pooled or un¡tlzed therewith

2. Th¡s is a PAID-UP LEASE. ln consideration of the payment made h6rôwith, Le"sor agrees th"t Lssseo shall not be obllgatsd, except as olh€M¡seprovided heroin, to commonce or cont¡nuê any opéraiions dur¡ng the primary tem. Lsssee may at åny timo or times during or after ths Pi¡maryÌerm surrender'th¡s Loaso a8 to all or sny port¡ori oft¡E Premieãe and es toeny strala ot stratum, by delivedng to Lossor or by filing for record a

reloâse or rolêases, 8nd bs rel¡evod of sll obl¡gat¡ons thsroafter sccrulng as to tho acroagè suÍ8ndÊred.

3. Lessee covenanþ and egfoês to pay royslty to Lôssor as follows:(a) On oil, to dollvãr to the'cråU¡t of iossor, freo of cost on ths lease if sold on the Premise8 or froo of cost lnto the plpeline to which Lessee' ñray connect wolls at f¡rst point of sale, ths €qual one-3ixth (1/6thl pert of all oil produc€d and sâved from the PromiEes.

{b) -

On gas of whatsosver naturo or ktnd, liquld hydrocarbons snd tholr rospoc'trvg con8t¡tuent 3l8menF, caslngh€8d gas ol othof ga3ôou€' juþstancés, producôd from the Premisos (;Gás") Låssee shall pay, ae royBlty, ono{ixth (lr6th} of thê nst proc€Eds rselized by Lssseo from

first po¡nt of sâlè.(s) On products producgd fÍom the Promlsês Lessoe shåll pay, as royalty, ono€lxth (1/6th) oftho not proc€ods rèsllzsd by Ls88B€ from tirst

polnt of sale.(d) Lðss6s shall have tha right to pây Lgssot's proportlonets shafo of any requlred soverâncô, excigð or gros8 produdion tgxos and to

doduct any amount paid from future rgvonue di8tr¡bution if deemed appropriate by Lessee.

4, Whors gas from s well capeble of produclng gas is not 6old or ueôd åfror thg explrat¡on of tho Primlry lgrm, Lessse shall pay or tendsr Ê8 royalty

lo Lessõr at the address s'ot forlh a'bovo Onã óollar (91 ,00) por yaar per net mlnàral acre thgt b attributable to Loõcon ownershlp, euch payment or

tendor to bE mado on or bolore tho snnlv6ßary Oatà ot tti¡d Leãse riext oneuing sftsr thÞ exprration ol ninety (90) days.trom thÊ date such wsll ¡s

shut ¡n or dswatering opgrâtions aro commenód snd thereaftor on or befors thÉ annlvorsary tlate of thle Lsase during thô pgriod such well is shuf

in or dgwatôrlng operations ara being oonducted,

S. lf Lgssor owns ã lô8ser lnterost in tho Prémlses than thê onths and und¡vlded fae simple estals thgreln, lhon thÈ royaltiss, lncluding any ghut-ln

GsB royålty, hsroin p¡ovided for shall bo pa¡d Lê6Bor only ln tho proport¡on wh¡çh Løssor'g ¡ntoraet bsan to tho wholo snd undlvidod fö6.

frês of cost, gas, oll and watsr produc€d on the Premisðs for Lsssee's oporatlons thcroon, oxcêpt waler from the

w€lls, strosms, lakes Legsor.6,

7.

E.

When r€questgd by Lessor, io ths evqnl Lessor is also the surfacê ownof, Lessèe shall bury Losso6's pip€line belowPlor¡v dspth and no well thall

bë dr¡lled neerer than 500 feot to the house or barn now on lho Prcmlses wlhout writton coñsent of Lessor. Lossee shall pay for damageÉ cauesd

¡y l"siãet óærat¡oni on tne Premises, Lessoo shall havê the r¡ght at any timø to fomovs âll macl¡lnory and llxtures (¡ncludlng casing) Le6sÔs

has placed on tho Prsm¡sgs,

The rights of tho Lessor 6nd Lessse hereundBr may bo assigned ¡n whole or part. No chångs ln orr/nefsh¡p of L66sol's intefest,(by å8s¡gnment or

othoníise) shall bs b¡nding on Lesseo until Lesseä has boãn furnishod with notjcs, conslstlng of certified copios of, all rocorded ¡nstrurnents or

documenie and othsr infoination necessary to ô3tablish a complet€ cha¡n of record titlo from Lessor, ând then only with respSgt to payments

thsreaft€r medo. No othgr k¡nd of notica, whethgr acluâl or con6truct¡vo, shall bo binding on Losseô. No prosent or futuro divlsion of Lesso,'e

own€rsh¡p a6 to different portions or paróle of the Premises shall opsrate to onlergs tha obligallons or dlminish the rights of L€Esee, and âll of

Lessee,s opeÍations may 6e conduaei w¡thout rsgard to any suoh division, lf all or a;y psrt of tiis Leese is asslgned, no lsasehold ownar shall be

liabl6 for any ac{ or om¡ssion of eny other lsas€hold owner

Lessee, at its option, is heroby given the righl and powor ât any timo ånd from time to time as a recurrlng right, sither befofô or afrer produciion, aE

tJ Ài oia¡V pai ot tåa¡anO Césiri¡e¿ herejn and ai to any oná or moro of the formalions hereundor, lo pool or unltizo ths leÊsôhold e$tâto end the

m¡neral esíais covered by lh¡g l6qs6 wlth other land, lEasi or løasoe ln the immediåtð viclnity fûr the produc'tlon of oil and ge3, or separatoly for th3

prøuäún oioittsr, wheñ in tesseã'JjuOgmont lt ¡s necessåry or advisable to do so, and irrêspoctivo of whethor authoritys¡milsrtolhi6 ex¡stE with

iesiàc{ io such othãr lsnd, toage oi teä;e;. Likou/lse, unlts prwlouoly fomod to inâude formstions not producing oll or 9å8, may.bo reformed to

exdluds sucÀ non-productóg formations. Tho forming or refòrming oíany unit shall bs accornpllehe.d Þy Lo€see.ex€"tll.g 9iq 1lI9 ofr.eærd e

dectar¿t¡on of such unit¡zat¡on or reformation, whici declaratioriehatl ásscrlbe the unlt, AÁy unlt may lncludo lsnd upon wh¡ch a lvsll hag

theroloforç boan complst€d or upon which opoiatlons for drilling have tleretofore beon commenõed. Produabn, drllling or rgworklng operatione or

L

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Entrv 2013011006Book 1¡57 Pase ?ó6

a well shut in for want of a market anywhere on a unit which includes all or å p6rt of th¡s loaso ghall be troated as ìf tt \,\,ele produc¡ng under thls

loaso. ln lieu of the myalties elsewhaie herein specifisd, lnclud¡ng shut-ln gas ioyalties, Lessor shall rec€ivê on produG,t¡on from th€ unlt so pooled

royâlties only on the pôrtion of such production ällocatsd to thie ieaeo; suõh aüocâl¡on shall bo that proport¡on of ths unlt produGlion thst ths total

númber of slrfsc€ aires coversd uyìhis loaeo and lncludêd rn the unit boars to thê total riuinbsr of surface acrgs in such unlt. -ln addition tó the

foregoing, Lesseo shall havo the rigît to un¡t¡zo, pool, er combine âll or any pErt of thó above dosoribod lands ss to ons or mote of thô fotrnåt¡ons

t¡¡erãunðôr with othg¡ lands ln tho-bâmê genorãi area by êntsrlng lnto a 'cdoporstlve

or unlt plsn of developmsnt or oporsllon spprovod by any

govornmentâl authof¡ty snd, ffom timo to i¡me, w¡th liks ãpproval,lo modify, chaogô or temineto any such. plan or agfèom€nt snd, ¡n such Bv€nt,

tlhe torms, òndition¡ ánd piovision¡ of thlg teàse shall bd äeÊmEd modifie-d to conform lo ths termÊ, conditlons, snd provlsions of such appovsdcooperativo or unlt plan of dovelopmonl or opsrat¡on and, partlcularly, âll drillhg snd dsvolopmsnt rsqu¡râments.of thle lea¡e, ðxpr€es qr ¡mpl¡€d'

¡hail bo eaüsfled b! oompltance riittr tho dr¡li¡ng and devàlbpment réqulrements of such plân or agreomenl, End th¡s l6ase€hall not tsrm¡nâto or

oxplro durlng the lifä of sdch plan or agresment] ln the avani that c¡id åbovo Oosoribod.lands or snt part thoreof,.shall.heroafror be operatsd undÖr

any euch cõoperqt¡ve or unit plan oidevslopment or opqrsl¡on whsreby thg production therôfrom ls sllocaled to d¡ffsr€nt portions of the land

coíered by säiO plan, thon thä productlon ailooated to ãny particular träct of land Bha¡|, for the purpose of aomput¡ng.thê royaltlsß io be pald

horeunder'to Leséor, lie rogardeå aa having beon producsd fròm tho particular ttåd of laûd.to which it is allocâted sñd nol to any othor lrâd of lând;

and the royalty payments ìo bE made hErãunder lo Lôssor shall bs bâdgd upon productlon only as so ellocated. Lossor shall {ormålly gxpress

Losso/s cðnsãni tð any cooperative or unit ptån of devslopmont or opsratlon adoptôd by Lossge and approved by any govsrnmentnl 8g€ncy bygxecutlng the same upon roquâst of LsssÊê.

10. All express or tmptiôd covonants of this Leasè shall bo sub¡ect to all Federal ând Stato Laws, Executive Ordeß, Rulês ol.Regulat¡ons, 8nd this

Lsase shall not bä lenninåted, in whole or tn part, nor Lesseä hoH liabls in damages, for fa¡lure lo comply ther6with if compllance is,prevented by,

or if such fã¡lure ls thô result bf, any such Law, Order, Rule or Rogulation. Any dolay or intsnuption caused by stom, flood, act 0f God or othsr

event of force ma¡eur6 shall nòi bo'count€d agâinst Lóssee. ll du-e to th€ aboúe caules or any c¿use whatsosvor beyond the control of Lesseo,

Lesseo is prevented from conducting operatìoãs héf€under, suih tlmo shatl not þe counted agarnst Lossae, and thls LsaEe shall þo extênded for a

period of time equal t0 thg time Lessee was so provôntôd, anyth¡ng ¡n thrs Lease to the contrary notwithstanding.

I 1. Lessor hereby warranls and sgrees to dofond thô t¡tle to the lands hêrein describsd, and âgrees that the Lêssso thall havo ths r¡ght at any t¡mo t0

Íedeem for Låssor, by p"ym"ñt, "ny

mortgagôs, taxes or other l¡ens on lhe abovs doscriþed land8, ln thð evont of dôfault of paymsnt by Lossor

and bo subrogated toitis i¡g¡ti ätttíe nouãritroieof, snd tho unders¡gned Lâ6sors, for thomsslves and their h6¡r8, suco€ssors and asslgns, heroby

iunena"r anðreþese att riitrioiAowor and homestéad in tho promleãs deecr¡bod hersin, insofdr 8s said rightofdower and homostsed mey in any

wåy effoct tho purposeg for wh¡ch thiÊ lsase is made, as roc¡ted hera¡n'

12. Should any one or more tho parties named as Lessor herein fa¡l to exêcuto this Leaso, ¡t shall nsverthôloss be b¡nding upon all such parties who do

oxscute it as Lessor. The word JiÀssor,, 6s used in th¡s Lease, shall mean any on6 or moro or all of lho PattigÊ who execuiê lh¡s Leass as Lessor.

All tho prov¡slonE of this l6ass shall be bind¡ng on ths hslrE, guccossorÊ and asslgns of Lessol and Leggeo'

l A, This Lsase sha¡l nsvsr b€ tem¡nâted, forfeited, or canceled for Les6oe's felluro to p6rform, in wholo or ln parl, any of ths covenantg, condit¡ons,

obligâtions end requir6ments 89t forth in thls Lèaso, until Lôss€6, afror written notiðe by Lessor, has been given a leasonsbls p€dod of timo within

which to comply with thg covonânt, cond¡tlon, obl¡gatlon, or requiromênl'

,14. Lssseeisexpresslygrantedthosxclus¡verighttoçonductgoophyslcal axplorationbymeangofsoismograph,vlbrosersorslTlï"9c,llluo3'However, if iessoo ånOuas súcfr geophysicat exptoration-or òpárations ön ttrs landi covered Þy this Lâaso, all shot holês shall bs k€Pt € sufficient

Oìsiàncã äwã¡¡ tiom Logsor'E water-welis éo as noi to causo ani damage lo the water woll6. Lessoe shall Promptly plug äll shot holes with concrete

plugs or otfrei approveO metnoOJget Oèlow plow dopth, f¡ll the'hotos w:ith O¡rt on top ofths plugs, and restore tho surfâcê of thô loase promi8os t0

äubltantially the äams cond¡tion ¡t wBs in prior to lhs commenoomðnt of tho gåophysical opôrations.

1 5. Lessor rocognl¿os thst Lessee has the rlghl to uEe as much of the surfaco of lhe teasð promisôs as a reasonably prudont operatol would use to

accomplish th6 purposes of th¡s Lease.

1 6 No titigetion shail bs ¡nitiatod by Lossor w¡th respect to any breach or defâult by !-gsse6 horoundor, for a¡orLod 9l-st-l:Îl-99.dãy.s an€r Lessor has

given tossoe wr¡tton notico fuili dôscribing the breach or default, and then only if Losse€ fails to r€medy the broach, or defaufi' with¡n€uch p€riod'

tn tho €vonr rhe mauer r, rn¡gäiåiãnãlh"i"'iir i¡ñãíiuãi.i.¡ ããr,i*ìnstion rhai "

bresch or dofeutt hae-occunod, thls l€eBo shall oot bo forfeltod or

csncolled in whote or ¡n pan uÀiosi Loesee ls glvon a reasonaUlá i¡mo ifltr sald Judicial detemrnetlon to r€medy thß broåch or dafåult and L68seð

fa¡lÊ to do so.

17. lntheeventthatL€ssoGduringthoprimaryt6rmoflh¡sleas€,r€ca¡vesabonal¡dêofferwhichLossoriswillingtoaicep!lloTanl.partyofferingtopurchass fram Lsssor å tease covering any or att ofttrø suoetancos coiãrert ¡y tn¡s leogs snd covering.all or.i pol¡"t,"lll]? l1{^*::jbed h6ro¡n'

wtth the tsass oecoming effit¡vã upãñ ãxárrat¡on of rnn nase, úãigø trereuy'agroes to notify Lessedin writing ol-.1t9-"I-"f qry^di|joly, ¡ncludln-g

in the not¡co the nam" "n¿ "iðiã"á?

iha àfar or t¡s p¡ce oràre¿ án¿ ali óìÉeiiert¡nent terñrs snd condilioneof ths offer. Lessoo, for s period of

frfreen days after recefpt ot tnJnoiioÀ, snãr¡ trãve t¡e p¡or anO prelernO right anä optlon to p-urchaso the loaso or pârtlhotgof or ¡nt6r6st thôre¡n,

covered by the offer at lro pr'ico ãnlåðrõioinîro irre'ierms anå conditlonãspscifieà ln the.ôffer. thls instrumont may bo exocuted in anv number of

counterparts, eac¡ ofwhictr sñãllbe áãémà¿ ãn o¡sinal snd shail b6blndinj upon the party or partieE so oxecuting, thê¡r hèirs, qucceesors and

asg¡gns, and all of which whon taken together constltut8 but ono and the sams iîstrument

lN WITNESS WHEREOF, this ¡nstrument is exscuted as of tho dato ñrst above writtsn.

n)"*t " ,l i' 15.,,tBy: Dorene Wilson, Trustee By'::Láura M, Magpali, Trustee

Acknowlodgemont

STATE OF

COUNTY OF

Thô forego¡ng inslrument was acknowledged bofore ms

Alan R. Wilson Llvlng Trugt' datod Ju

My commisslon Explr"r: \IàLrâ.Ð{åf

rnis \JÞ a. y or g,,M,!U-,2013 þv DoreFe wilson' a Trustes of the

2

NOIARY

Page 6: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

Entrv 20130U006Book 135? Pasa'lâ7

Acknowledgement

STATE OF Oraoon

\ nneCOUNTY OF

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Alan R, Wilson Llvinq TruslLC$tgd.June 6. 2007

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Page 8: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

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Mitchell S. Maio (801) 538-5041nl itclr, mnio@le¿r l'l ari'.co¡¡'l

Lic€nsed ¡tr Ut¡rh

Utah Board of Oil, Gas and Mining1594 West North TempleSalt Lake Ciry, Urah 841 l4-1051

FILEDJUL t 0 20t7

SEGRETARV BOARD OFOIL, GAS A MINING

Attorilevs Licensed hr:

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Jones lYûldo Holbrooli &lllcDonough, PC

VIA MAIL: U.S.P.S. andVIA EMAIL: j [email protected]

Californil Nortl¡DakotîColo¡{do OhioIllinois Oklahonulllontanr OregonNebrasks PcnrsylvnniaNevadn South DskotaNew Jersey TerssNen llle¡ico UfrhNerv York lvst Virg¡ni¡

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July 10,2017

Re: Wilson Tnrst Letter re: Failure toProvide Payment InformationDocket No. 2017-018CauseNo. 13l-152

Dear Board,

Crescent Point Energy U.S. Corp. ("Crescent Pointoo) respectfully submits this response to theLetter Re: Failure to Provide Payment Information ("Letter") submifted by the Alan R. Wilson LivingTrust, dated June 6,2007 ("Wilson Trust") in Cause No. 13l-152.

Crescent Point is taken aback by the allegations in the Letter, as Crescent Point has neverintentionally avoided its responsibilities under Utah law and flatly denies the Letter's assertions orinnuendo to the contrary. In fact, Crescent Point prides itself on transparency in its business practices atevery level, whether with government agencies, corporations, or individuals. Accordingly, Crescent Pointis committed to assisting the Board in completing whatever investigation the Board deems necessary.That being said, Crescent Point believes that the investigation requested by the Wilson Trust is mootbecause Crescent Point has provitled the Wilson Trust with everv bit of production data that theWilson Trust requested in the Letter.

As an initial matter, there are two statutes that the Wilson Trust could have used to request aninvestigation: Section 40-6-9.1 of the Utah Cocle ("Royalty Payment Information Statuteo') andSection 40-6-9 of the Utah Code ("Payment Statuteo'). The Letter references the Payment Statute andmakes many veiled and unsuppolted assertions regarding potential missing payments.r However, theLetter's discussion of claims and additional code references make clear that it is an attempt "to request

[an] investigation" pursuant to "subsection (2)" of the Royalty Payment lnformation Stahrte. This isfurther supported by the fact that, had the Wilson Trust intended to request an investigation into an

I Counsel for the Wilson Trust agrees that, contrary to the assertions in the Letter, there have been nounderpayments by Crescent Point. To the contrary, Crescent Point has overpaid the Wilson Trust nearly $100,000.See email from Justin Rammell dated June 26,2017, attached hereto as Exhibit l.

lo007 te7s.2l

Page 9: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

ffi,,,,Iuly 10,2017Page 2

alleged failure to pay royalties, it would have had to "file a petition with the [B]oard." Utah Cocle Ann.$ 40-6-9(4). The Rules of Practice and Procedure Before the Board of Oil, Gas and Mining defîne a"petition" as a "Request for Agency Action." Utah Admin. Code Rule R64l-104-100. The Wilson Trustdid not file a Request for Agency Action in this Cause. Thus, the Letter must be limited to aninvestigation into the allegations relevant to the Royalty Payment Information Statute.

Under the Royalty Payment Information Statute, a royalty o\ryner who believes she has not beenprovided with the requisite royalty payment information may notiff the Board to request an investigation.However, the Board does not possess the statutory authority to investigate such allegations; rather it is theDivision of Oil, Gas and Mining (o'Division") that "shall conduct the investigation and report to the[B]oard concerning" the Division's recommendations as to resolution of the conflict. Utah Code Ann.ç 4A-6-9.1(2)(b). Crescent Point has not been contacted about nor participated in an investigation of theWilson Trust's allegations by the Division. Thus, we assume that the hearing scheduled for July 26,2017", will be limited to setting the parameters of such an investigation by the Division, should theDivision elect to conduct an investigation.3 If Crescent Point is mistaken, however, and the Board intendsto conduct an investigation at the Jvly 26th hearing, Crescent Point objects to such an investigation ascontrary to Utah law. See id.

Statutory Oblisations Under the Rovalty Pavment Information Statute

In pertinent part, the Royalty Payment Information Statute dictates that "[w]hen payment is madeto an owner of a royalty interest for the sale of oil or gas produced from that royalty interest pursuant tothe requirements of [the Payment Statute], the following information shall be included on the payor'scheck stub or on an attachment to the form of payment." Utah Code Ann. $ 40-6-9.1(1). In other words,an oil or gas operator is statutorily obligated to provide certain production data only "[w]hen payment ismade to an owner of a royalty interest." The Wilson Trust concedes in the Letter that it has not received apayment from Crescent Point since the Wilson Trust's lawsuit against Crescent Point was dismissed onNovember 10,2016.4 And counsel for the Wilson Trust has aclmitted that the Wilson Trust has beenoverpaid royalties and, thus, was not due any payments during that time period. Accordingly, andbecause it was not required to do so, Crescent Point had not (at the time the Letter was filed with theBoard) provided royalty payment information to the Wilson Trust since November 2016.

The Royalty Payment Information Staflrte supports Crescent Point's position by dictating onlytwo methods of dissemination of this information: (1) as an inclusion "on the payor's check stub" or (2)

2 At the time we filed this response, Julie Ann Carter informed us that the July 26rl'hearing has been cancelled.

3 This assumption comports with our understanding as to how the Board has handled past requests for investigation.

a By *uy of brief explanation, Crescent Point overpaid the Wilson Trust nearly $ 100,000 in royalties based on LauraMagpali's signing of the Ratification referenced in the Letter. Shortly after signing the Ratifrcation and acceptingthe excess royalties, Laura Magpali sued Crescent Point demanding that the Ratihcations be released: Crescent Poíntreadily acquiesced. Rather than send Laura Magpali a bill for repayment of the $100,000, Crescent Point-consistent with industry standards-began deducting the monthly royalty owed to Laura Magpali from heroutstanding balance. Counsel for the Wilson Trust is well aware of this fact and has been since litigation ended. Seeemail from Mitch Maio dated June 26,2017, attached hereto as Exhibit 2.

{000'7t97s.2}

Page 10: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

Lrc¿¡n.-ffi,oo',,,

July 10,2017Page 3

as "an attachment to the form of payment." Utah Code Ann. $ 40-6-9.1(1). The logicalconclusion to thisis that if no "payment is made," there is no way for any operator-including Crescent Point-{o providethe infonnation in keeping with the statute. Fuúher complicating the issue is the fact that the WilsonTrust has elected to receive its royalty payments electronically via direct deposit. To accommodate thisrequest and ensure compliance with Utah law, Crescent Point has established a system that automaticallygenerates the requisite royalty payment infonnation and sends it to a mineral owner as "an attachment" tothe email notif,zing the royalfy ov/ner that they have received a payment via direct deposit. CrescentPoint's system is not set up to issue royalty payment information to royalty owners-slrch as the WilsonTrust-who receive no royalfy payment.

Regardless of Crescent Point's legal position as stated above, upon receiving the Letter, CrescentPoint immediatelv provicletl the Wilson Trust with all production data requested in the Letter andpromised to continue to nrovide all future production data to the Wilson Trust for any and allfuture months. regardless of whether Crescent Point makes a rovaltv payment to the Wilson Trustduring anv narticular month. ,Se¿ Exhibit 2. At that point, the allegations in the Letter became mootand the Wilson Trust had no further need for an investigation because it had received everything it hadrequested. Rathel than request dismissal of the July 26tr' hearing, however, the Wilson Trust respondedby making additional demands of Crescent Point. Specifically, the rJy'ilson Trust demanded duplicatecopies of the production data for all wells from first date of production through the present. See emailfrom Justin Rammell dated June 29,2A17, attached hereto as Exhibit 3. Again, despite having no legalobligation to provide a duplicate copy, Crescent Point readily agreed to do so as soon as it was able, butno later than July 21,2017 . See email from Mitch Maio dated July 5, 2017 , attachecl hereto as Exhibit 4.Ag¿_in, however, the Wilson Trust refused or failed to request that the Board postpone or cancel the July26tl' hearing in this matter. Based on the facts as stated above, the allegations in tñe Letter are now mootand the Wilson Trust's insistence that the Board continue with the July 26tr'hearing is confusing to say theleast, most obviously because it is not clear what, if anything, the Board has left to investigate.

Requested Relief

In sttm, Crescent Point concecles that it had not providecl royalty payment information to theWilson Trust since the Wilson Trust's lawsuit against Crescent Point was dismissed on November 10,2016. Contrary to the Wilson Trust's assertions, however, this is not because Crescent Point was upsetabout being sued nor is it because of "a complicated relationship between the parties"; rather, CrescentPoint believes it was under no legal obligation to provide royalty payment infonnation to the WilsonTrust since litigation ended because no royalty "payment lhas been] made" to the Wilson Trust since thattine. See Utah Cocle Ann. $ 40-6-9.1(l). Since receiving notice of this filing, however, Crescent Pointhas immediatelv provided Justin Rammell" counsel for the Wilson Trust, with the requestednroduction data covering the time since litigation ended to the present and has agreeal to DrovideProduction data each month regardless of whether Crescent Point resumes making rovalfvpavments to the Wilson Trust. Further, upon a follow-up request Crescent Point has also agreed toprovide additional copies of all production data from fìrst production through to the present.Accordingly, the allegations in the Letter are now moot, and Crescent Point respectfully requests that theBoard close the investigation and remove the matter from the docket for the July 26tr'hearing.

10007r97s.2|

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ffi',,Iuly 10,2017Page 4

Should you have any questions or instructions or need anything further from us to conclude thismatter, please don't hesitate to contact me.

Very truly yours,

Enclosures

cc: Ryan Waller (wlencl.)

{0a07ß7s.2}

Page 12: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

Exhibir #I

Page 13: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

Mitch S. Maio

From:Sent:To:Subject:

Hey Mitch,

Hope all is well. I've been out at the AAPL meeting.

The Trust has emails from Crescent with outright conflicting information on the royalty over payment. We allunderstand that Crescent goofed and made an over payment. Yet, the over payment does not give Crescent theright to withhold ayear of royalty reporting. Nor does it give them the right to ignore requests for information.Obviously, Crescent has an ax to grind.

The letter was an informal request. The Trust has asked me to go forward and file a formal petition, which willget filed later this week. We can discuss at that point.

Thanks,

Justin

Rammell Law, PLLC5383 S. 900 E., Suite 205Salt Lake City, UT 84117

P.O. Box 901622Sandy, Utah 84090

Office: (801) 432-0632Fax: (888) 712-5274

This message is intended to be CONFIDENTIÂL and may contain PRfVILEGED ATTORNEY-CLIENT COMMUMCATIONS. Please noti$' the sender imediately if you

Íor the purpose ofavoiding penalties that may be imposed under United States federal ta laws.

Justin Rammell <[email protected] >

Monday, June 26, 201-7 9:05 AMMitch S. MaioExcess Payments

1

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Exhibit #2

Page 15: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

Mitch S. Maio

From:Sent:To:Cc:

Subject:Attachments:

Mitch S. MaioMonday, June 26,2017 1,1:42 AM'Justin Rammell'

Ginger L. UtleyRE: Excess Payments

0#48986 DSL 062217.x1sx

Justin -

Thanks for responding to my voicemail. lt's good to have you back in town. I have never been to AApL, but I want to gonext year. l'd love to hear about it over lunch one of these days.

As for the seemingly perpetual confusion surrounding the Wilson Trust, first let me just say that I understand theirfrustration, if not their approach to addressing it. As you are well aware, when your client withdrew its litigation againstCrescent Point-having received from Crescent Point everything it demanded-the net result wat that Crescent Pointhad overpaid your client nearly SL00,000 ín royaltíes. Aware of the fact that demanding repayment of the 5100,000from your client could prove to impose a significant financíal hardship, Crescent Point has instead been applying anyroyalties that have accrued since litigation toward the balance owed to Crescent Point. Thus, no royalty payment hasbeen made to your client for the past 6 months, nor will any royalty payment be made to your client until they haverepaid Crescent Point in full. Crescent Point has set up its procedures to ensure compliance with Utah law and theBoard's instruct¡ons, and to respect mineral owners through every step of the process. Accordingly, Crescent pointsends payment ínformation "[w]hen payment is made" and appends the royalty payment information to "the payor'scheck stub or on an attachment to the form of payment." Because your client opted to receive royalties via directdeposit and royalty payment information via email, and because no royalty payments have been made sínce litigationconcluded, your client simply has not received royalty payment information. I know that you and I have discussed thisfact before, Justín, but I again apologize for any confusion regarding this royalty non-payment information.

From the tone of your email it appears clear that the Trust wants to pursue formal proceedings with the Board,regardless of any action Crescent Point takes. lf that is correct, please let me know and I will simply respond to yourLetter dated June L,2OL7 (re: Request to lnvestígate) so that we can talk things through at the July hearing. tf not,however, please let me know what the Wilson Trust needs and I will do whatever is in my power to help see that it getsdone. ln the meantime, l've taken the liberty of attachíng the Wilson Trust's royalty production data since October20L6 to this email. This information should fully address any past concerns your client may have. Going forward,however, your client will presumably wish to receíve additional royalty payment information from Crescent po¡nt eventhough it still will not be receiving royalty payments. Please let me know if your client has a preferred approach for this- Crescent Poínt will be happy to entertain any reasonable requests.

Callmeanytimeifyou'dliketodiscussthisfurther. Also,pleasepassalongtoyourclientsthecontactinformationforthe Team Lead for Mineral Land Negotiations at Crescent Point, Ryan Waller (rwaller(@crescentpointenergv.com). Ryanis incredibly responsive and genuinely cares about the mineral owners with whom Crescent Point does business. Ryanand/or I will do anything we can to assist you and your client going forward.

1

Mitch

Page 16: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

Ln*.nLEAR",.

The Downey Mansion808 East South Templesalt Lake city, uT 84102

Tel: 801.538.5041Fax: 801.538.5001

mitch.maio@ lea rlaw.comwww.learlaw.com

The information contained in this electronic mail message, its attachments, or previous e-mails is confidential, intended only for theuse of the individual or entity to whom addressed, and may be privileged. lf you are not the intended recipient, or the employee oragent responsible to deliver it to the intended recipient, you are hereby notified that any disclosure, reproduction,printing, distribution, or use of this communication is strictly prohibited. lf you have received this communication in error, pleaseimmediately not¡fy me by telephone(801-538-5000), and delete the original message and its attachments without reading or savingthe transmission. Further, to the extent this message includes any federal tax advice, this message is not intended or written by thesender to be used, and cannot be used, for the purpose of avoiding federal tax penalties. Thank you.

From: Justin Rammell fmailto:[email protected]]Sent: Monday, June 26, 2017 9:05 AMTo: Mitch S. MaioSubject: Excess Payments

Hey Mitch,

Hope all is well. I've been out at the AAPL meeting

The Trust has emails from Crescent with outright conflicting information on the royalty over payment. We allunderstand that Crescent goofed and made an over payment. Yet, the over payment does not give Crescent theright to withhold ayear of royalty reporting. Nor does it give them the right to ignore requests for information.Obviously, Crescent has an ax to grind.

The letter was an informal request. The Trust has asked me to go forward and file a formal petition, which willget filed later this week. We can discuss at that point.

Thanks,

Justin

Rammell Law, PLLC5383 S. 900 E., Suite 205Salt Lake City, UT 841l7

P.O. Box 901622Sandy, Utah 84090

Office: (801) 432-0632Fax: (888) 712-5274

This message is intended to be CONFIDENTIAL and may contain PRIVILEGED ATTORNEY-CLIENT COMMUMCATIONS. Please noti$, the sender immediately if you

for thc purpose ofavoiding penalties that may be ìmposed under United St¿tes federal tar laws.

2

Page 17: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

Exhibit #3

Page 18: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

Mitch S. Maio

From:Sent:To:Cc:

Subiect:

Follow Up Flag:Flag Status:

Justin Rammell <[email protected] >

Thursday, June 29, 20L7 2:30PMMitch S. MaioGinger L. UtleyRe: Excess Payments

Follow upFlagged

Mitch,

Thanks for your voicemail. I'm slammed right now in meetings. If you want to set a time for a call mid-next, I'mopen, just let me know what works for you.

My clients want a monthly statement for each well since first production and not just the last six months. Wehave an auditor that is going to review everything.

Thanks,

Justin

On Thu, Jun29,2017 at 9:38 AM, Justin Rammell <[email protected]> wrote:Mitch,

I've had a discussion with my client. 'We see your assertion that Crescent is committed to mineral owners. But

your position undercuts that assertion. To say that no payment is due the Trust, so no reporting is necessary,does not make sense. There is production and royalty attributable to their interest. The only reason they are notgetting paid is because Crescent made a title effor. So to say....well, Crescent made an error so now they don'thave to report to mineral owners, makes no sense. The Trust has a right to know what is being produced fromtheir minerals, how much it was sold for, what the deductions are, and what the credit toward the over paymentlooks like.

Our demand is for monthly statements, for each month and for each well from first production forward. Thesestatements must include all of the information demanded by the statute. These statements must continuemonthly until production ceases. The Trust reserves the right to compare these statements to production reportsfiled with the State and the reports given to other mineral owners, and to contest anything amiss. The Trust alsodemands a written explanation of why and how the over payment error occurred.

These are perfectly reasonable requests. If these are received at least 3 days prior to the hearing, then the Trustwill withdraw their investigation request.

Thanks,

Justin

onMon,Jun26,20|7at11:53AM,JustinRammell@wrote:Mitch,

1

Page 19: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

I appreciate your email. We understand that this was a title error on Crescent's end, that an over payment wasmade, and that there will be some recoup time.

The issue is conflicting information from Crescent Point. The numbers given to date have not made sense. Wewill review the data you've provided and go from there. Vy'e are at this stage because Crescent refused to provideinformation to the mineral owner after repeated requests. For some reason, Crescent requires a lawsuit or boardcomplaint before responding.

That said, I appreciate getting this data and we will be back in touch.

Thanks,

Justin

On Mon, Jun26,2017 at I1:41 AM, Mitch S. Maio <[email protected] wrote:

Justin -

Thanks for responding to my voicemail. lt's good to have you back ¡n town. I have never been to AAPL, but I want to gonext year. l'd love to hear about it over lunch one of these days.

As for the seemingly perpetual confusion surrounding the Wilson Trust, fírst let me just say that I understand theirfrustration, if not their approach to addressing it. As you are well aware, when your client withdrew its litígation againstCrescent Point-having received from Crescent Point everything it demanded-the net result wat that Crescent Pointhad overpaid your client nearly S100,000 in royalties. Aware of the fact that demanding repayment of the S100,000from your client could prove to impose a significant financial hardship, Crescent Point has instead been applying anyroyalties that have accrued since lítigation toward the balance owed to Crescent Point. Thus, no royalty payment hasbeen made to your client for the past 6 months, nor will any royalty payment be made to your client until they haverepaid Crescent Point in full. Crescent Point has set up its procedures to ensure compliance with Utah law and theBoard's instructions, and to respect mineral owners through every step of the process. Accordingly, Crescent Pointsends payment information "[w]hen payment is made" and appends the royalty payment information to "the payor'scheck stub or on an attachment to the form of payment." Because your client opted to receive royalties via directdeposit and royalty payment information via email, and because no royalty payments have been made since litigationconcluded, your client simply has not received royalty payment information. I know that you and I have discussed thisfact before, Justin, but I again apologize for any confusion regarding this royalty non-payment information.

From the tone of your email it appears clear that the Trust wants to pursue formal proceedings with the Board,regardlessofanyactionCrescentPointtakes. lfthatiscorrect,pleaseletmeknowandlwillsimplyrespondtoyourLetter dated June t,2Ot7 (re: Request to lnvestigate) so that we can talk things through at the July hearing. lf not,however, please let me know what the Wilson Trust needs and I will do whatever is in my power to help see that ¡t getsdone. ln the meantime, l've taken the liberty of attaching the Wilson Trust's royalty production data since October20L6 to this email. This information should fully address any past concerns your client may have. Going forward,however, your client will presumably wish to receive additional royalty payment information from Crescent Point eventhough it still will not be receiving royalty payments. Please let me know if your client has a preferred approach for this- Crescent Point will be happy to entertain any reasonable requests.

2

Page 20: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

Call me any time if you'd like to discuss this further. Also, please pass along to your clients the contact information forthe Team Lead for Mineral Land Negotiations at Crescent Point, Ryan Waller ([email protected]). Ryanis incredibly responsive and genuinely cares about the mineral owners with whom Crescent Point does business. Ryanand/or I will do anything we can to assist you and your client going forward.

Mitch

ix+tr_LEAR-..

The Downey Mansion808 East South Templesalt Lake city, uT 84102

Tel: 801.538.5041Fax: 801.538.5001

mitch.maio@ learlaw.com

www.learlaw.com

The information contained in this electronic mail message, its attachments, or previous e-mails is confìdential, intended only for theuse of the individual or entity to whom addressed, and may be privileged. lf you are not the intended recipient, or the employee oragent responsible to deliver it to the intended recipient, you are hereby notified that any disclosure, reproduction,printing, distribution, or use of this communication is strictly prohibited. lf you have received this communication in error, pleaseimmediately not¡fy me by telephone(801-538-5000), and delete the original message and its attachments without reading or savingthe transmission. Further, to the extent this message includes any federal tax advice, this message is not intended or written by thesender to be used, and cannot be used, for the purpose of avoiding federal tax penalties. Thank you.

From : Justin Rammell [mailto :[email protected]]Sent: Monday, June 26, 2017 9:05 AMTo: Mitch S. MaioSubject: Excess Payments

Hey Mitch,

3

Hope all is well. I've been out at the AAPL meeting.

Page 21: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

The Trust has emails from Crescent with outright conflicting information on the royalty over payment. We allunderstand that Crescent goofed and made an over payment. Yet, the over payment does not give Crescent theright to withhold ayear of royalty reporting. Nor does it give them the right to ignore requests for information.Obviously, Crescent has an ax to grind.

The letter was an informal request. The Trust has asked me to go forward and file a formal petition, which willget filed later this week. We can discuss at that point.

Thanks,

Justin

Rammell Law, PLLC

5383 S. 900 E., Suite 205

Salt Lake City, UT 84117

P.O. Box 901622Sandy, Utah 84090

Office: ß01) 432-0632Fax: (888\712-5274

This message is intended to be CONFIDENTIAL and may contain PRfVILEGED ATTORNEY-CLIENT COMMUMCATIONS. please notify the sender immediately if you

for the purpose oFavoiding penalties that may be imposed under United States Federal tar laws.

Rammell Law, PLLC5383 S. 900 E., Suite 205Salt Lake City, UT 84117

P.O. Box 901622Sandy, Utah 84090

Office: (801\ 432-0632Fax: (888\712-5274

4

Page 22: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

This message is intended to be CONFIDENTIAL and may contain PRMLEGED ATTORNEY-CLIENT COMMUMCATIONS. Please noti$r the sender imediately if you

for the purpose ofavoiding penalties that may be imposed under united States federal tax laws.

Rammell Law, PLLC5383 S. 900 E., Suire 205Salt Lake Ciry, UT 84117

P.O. Box 901622Sandy, Utah 84090

Office: (.80 l\ 432-0632Fax: (8881712-5274

1'h.is messaç is intended to be CONFIDENTIAL and may contain PRIVILEGED ATTORNEY-CLIENT COMMUNICATIONS. pleæe noti$, the sender immediately if you

lor the purpose ofavoiding penalties that may be imposed under united States federal tax laws.

Rammell Law, PLLC5383 S. 900 E., Suite 205Salt Lake City, UT 84117

P.O. Box 901622Sandy, Utah 84090

Office: (801) 432-0632Fax: (888) 712-5274

This message is intended to be CONFIDENTIAL and may contain PRIVILEGED ÄTTORNEY-CLIENT COMMUNICATIONS. please nod$, the sender imediately if you

for the purpose ofavoiding penalties that may be imposed under united States federal tar laws.

5

Page 23: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

Exhibit #4

Page 24: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

Mitch S. Maio

From:Sent:To:Cc:

Subject:

Mitch S. MaioWednesday, July 05, 20L7 10:56 AM'Justin Rammell'

Ginger L. UtleyRE: Excess Payments

Hey Justin. I hope your holiday was nice and you're settled back in to work for the week.

I have spoken with my client and they readíly agreed to provide this data to your client. I informed them that your clienthas already received all of the information to which they are entitled, and that Crescent Point is under no obligation toprovide multiple copies of the royalty payment information. However, Crescent Point confirmed to me once again thatthey don't provide informatíon out of obligation; rather, they truly value their relationships with their mineral owners,and they hope to convince your clients of their sincerity. When I ínformed Crescent Point that your clients are intendingto use this information to perform an audit, their response was: "That makes sense, and we have nothing to hide."

Given the holiday, my client said that their accounting department would be able to pull the information together in acouple of weeks - I am guessing that I will be able to get it to you around the 21$ of July. I am prepared to respond toyour letter to ínvestigate filed with the Board, but I would prefer not to seeing that the issue is now moot. ln a show ofgood faith, would you please request that the Board, at a minimum, postpone the hearing (currently scheduled for July26th) to the August calendar? Once my client provides another copy of all the data to your clients by July 2L't, I assumethat your clients would wish to withdraw the Board request altogether. I will look for notice of your request to postponethe hearíng by July L2rh . ll l do not receive the notice to postpone by July 12th, I will file my prepared response with theBoard and we will, at that point, aggressively defend Crescent Point's position and reputation.

Let me know íf you have any issues with this or íf we need to discuss it any further.

Thanks,

Mitch

LEAR-L'EAlL..

The Downey Mansion808 East South Templesalt Lake city, uT 84102

Tel: 801.538.5041Fax: 801.538.5001

mitch.maio@ learlaw.comwww,learlaw.com

The information contained in this electronic mail message, its attachments, or previous e-mails is confidential, intended only for theuse of the individual or entity to whom addressed, and may be privileged. lf you are not the intended recipient, or the employee oragent responsible to deliver it to the intended recipient, you are hereby notified that any disclosure, reproduction,printing, distribution, or use of this communication is strictly prohibited. lf you have received this communication in error, please

immediately notify me by telephone(80L-538-5000), and delete the original message and its attachments without reading or savingthe transmission. Further, to the extent this message includes any federal tax advice, this message is not intended or written by thesender to be used, and cannot be used, for the purpose of avoiding federal tax penalties. Thank you.

1

Page 25: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

From : Justin Rammell lmailto:j [email protected]: Thursday, June 29, 2017 2:30 PMTo: Mitch S. MaioCc: Ginger L. UtleySubject: Re: Excess Payments

Mitch,

Thanks for your voicemail. I'm slammed right now in meetings. If you want to set a time for a call mid-next, I'mopen, just let me know what works for you.

My clients want a monthly statement for each well since first production and not just the last six months. Wehave an auditor that is going to review everything.

Thanks,

Justin

On Thu, Jun29,20I7 at9:38 AM, Justin Rammell <justin@rammelt-t wrote:Mitch,

I've had a discussion with my client. 'We see your assertion that Crescent is committed to mineral owners. But

your position undercuts that assertion. To say that no payment is due the Trust, so no reporting is necessary,does not make sense. There is production and royalty attributable to their interest. The only reason they are notgetting paid is because Crescent made a title error. So to say....well, Crescent made an error so now they don'thave to report to mineral owners, makes no sense. The Trust has a right to know what is being produced fromtheir minerals, how much it was sold for, what the deductions are, and what the credit toward the over paymentlooks like.

Our demand is for monthly statements, for each month and for each well from first production forward. Thesestatements must include all of the information demanded by the statute. These statements must continuemonthly until production ceases. The Trust reserves the right to compare these statements to production reportsfiled with the State and the reports given to other mineral owners, and to contest anything amiss. The Trust alsodemands a written explanation of why and how the over payment error occurred.

These are perfectly reasonable requests. If these are received at least 3 days prior to the hearing, then the Trustwill withdraw their investigation request.

Thanks,

Justin

OnMon, Jun26,2017 at11:53 AM, Justin Rammell <justin@rammell-law. wrote:Mitch,

I appreciate your email. We understand that this was a title error on Crescent's end, that an over payment wasmade, and that there will be some recoup time.

The issue is conflicting information from Crescent Point. The numbers given to date have not made sense. Wewill review the data you've provided and go from there. W'e are at this stage because Crescent refused to provideinformation to the mineral owner after repeated requests. For some reason, Crescent requires a lawsuit or boardcomplaint before responding.

2

Page 26: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

That said, I appreciate getting this data and we will be back in touch.

Thanks,

Justin

on Mon, Jun26,2017 at I l:41 AM, Mitch S. Maio <mitch.maio@learlaw. wrote:

Justin -

Thanks for responding to my voicemail. lt's good to have you back ¡n town. I have never been to AAPL, but I want to gonext year. l'd love to hear about it over lunch one of these days.

As for the seemingly perpetual confusion surrounding the Wilson Trust, first let me just say that I understand theirfrustration, if not their approach to addressing it. As you are well aware, when your client withdrew its litigation againstCrescent Point-having received from Crescent Point everything it demanded-the net result wat that Crescent pointhad overpaid your client nearly $100,000 in royalties. Aware of the fact that demanding repayment of the S100,000from your cl¡ent could prove to impose a significant financial hardship, Crescent Point has instead been applying anyroyalties that have accrued since lítigation toward the balance owed to Crescent Point. Thus, no royalty payment hasbeen made to your client for the past 6 months, nor will any royalty payment be made to your client until they haverepaid Crescent Point in full. Crescent Point has set up its procedures to ensure compliance wíth Utah law and theBoard's instructions, and to respect mineral owners through every step of the process. Accordingly, Crescent pointsends payment information "[w]hen payment is made" and appends the royalty payment information to "the payo/scheck stub or on an attachment to the form of payment." Because your client opted to receive royalties via directdeposit and royalty payment informatíon via email, and because no royalty payments have been made since litigationconcluded, your client simply has not received royalty payment information. I know that you and I have discussed thisfact before, Justin, but I again apologize for any confusion regarding this royalty non-payment information.

From the tone of your email it appears clear that the Trust wants to pursue formal proceedings with the Board,regardless of any action Crescent Point takes. lf that is correct, please let me know and I will simply respond to yourLetter dated June L,2OI7 (re: Request to lnvestigate) so that we can talk thíngs through at the July hearing. lf not,however, please let me know what the Wilson Trust needs and I will do whatever is in my power to help see that it getsdone' ln the meantime, l've taken the liberty of attaching the Wilson Trust's royalty production data since October2016 to this email. This information should fully address any past concerns your client may have. Going forward,however, your client will presumably wish to receive additional royalty payment information from Crescent point eventhoughítstillwill notbereceivingroyaltypayments. Pleaseletmeknowifyourclienthasapreferredapproachforthis- Crescent Poínt will be happy to enterta¡n any reasonable requests.

Call me any time if you'd like to discuss this further. Also, please pass along to your clients the contact information forthe Team Lead for Mineral Land Negotiations at Crescent Point, Ryan Waller ([email protected]). Ryanis incredibly responsive and genuinely cares about the mineral owners with whom Crescent Point does business. Ryanand/or I will do anything we can to assist you and your client going forward.

3

Page 27: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

Mitch

LnrnLEAR-,,

The Downey Mansion808 East South TempleSalt Lake City, UT 84102

Tel: 801.538.5041tax: 801.538.5001

mitch.maio@learlaw,com

www.learlaw.com

The information contained in this electronic mail message, its attachments, or previous e-mails is confidential, intended only for theuse of the individual or entity to whom addressed, and may be privileged. lf you are not the intended recipient, or the employee oragent responsible to deliver it to the intended recipient, you are hereby notified that any disclosure, reproduction,printing, distribution, or use of this communication is strictly prohibited. lf you have received this communication in error, pleaseimmediately notify me by telephonelSQl-!f8¡5000), and delete the original message and its attachments without reading or savingthe transmission. Further, to the extent this message includes any federal tax advice, th¡s message is not intended or written by thesender to be used, and cannot be used, for the purpose of avoiding federal tax penalties. Thank you.

From: Justin Rammell [mailto:[email protected]]Sent: Monday, June 26, 2017 9:05 AMTo: Mitch S. MaioSubject: Excess Payments

Hey Mitch,

Hope all is well. I've been out at the AAPL meeting.

The Trust has emails from Crescent with outright conflicting information on the royalty over payment. We allunderstand that Crescent goofed and made an over payment. Yet, the over payment does not give Crescent theright to withhold a yeaî of royalty reporting. Nor does it give them the right to ignore requests for information.Obviously, Crescent has an ax to grind.

4

Page 28: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

The letter was an informal request. The Trust has asked me to go forward and hle a formal petition, which willget filed later this week. Vy'e can discuss at that point.

Thanks,

Justin

Rammell Law, PLLC

5383 S. 900 E., Suite 205

Salt Lake Ciry, UT 84117

P.O. Box 901622Sandy, Utah 84090

Office: (801) 432-0632Fax: (888\712-5274

This messaç is intended to be CONFIDENTIAL and may contain PRIVIL.ECED ÀTTORNEY-CLIENT COMMUMCATIONS. ptease nod$, the sender imediately iFyouh¿ve received this emai inadvertently. As required by United States Trasur Regulations, this communicadon is not intended or written to be used, and cannot be osed, by any þenonFor the purpose ofavoiding penalties that may be imposed under united states federal tar laws.

Rammell Law, PLLC5383 S. 900 E., Suire 205Salt Lake Ciry, UT 841l7

P.O. Box 901622Sandy, Utah 84090

Office: (.80 l\ 432-0632Fax: (.888],712-5274

This messaç is intended to be CONFIDENTIAL and may contain PRrVILEGED ÄTTORNEY-CLIENT COMMUMCATIONS. please noti$, the sender immediately if you

For the purpose ofavoiding penalties that may be imposed under united States feder¿l tar laws.

5

Page 29: . com FILED...Justin C. Rammell, JD, LL.M.justin@rammell-law.com Utah Board of Oil, Gas and Mining1594 W. North TempleSalt Lake City, UT 84116FILED Box901622 Sandy,UT 84090P: (801)

Rammell Law, PLLC5383 S. 900 8., Suite 205Salt Lake City, UT 841l7

P.O. Box 901622Sandy, Utah 84090

Office: ß01) 432-0632Fax: (888\712-5274

This messaç is intended to be CONFIDENTIÀL and may contain PRIVILEGED ATTORNEY-CLIENT COMMUMCATIONS. please noti$, the sender imediately if you

for the purpose of avoiding penalties that may be imposed under united states federal t¿x law.

Rammell Law, PLLC5383 S. 900 E., Suite 205Salt Lake Ciry, UT 84n7

P.O. Box 901622Sandy, Utah 84090

Office: (801) 432-0632Fax: (888) 712-5274

This messaç is intended to be CONFIDENTIAL and may contain PRIVILEGED ATTORNEY-CLIENT COMMLJMCATIONS. ple¿se noti$, the sender imediately if you

for the purpose ofavoiding penalties that may be imposed under united søtes fãderal tar laws.

6