Fill and Sign the Bill of Sale Upcounsel Form

ASSIGNMENT AND BILL OF SALE State: County: Seller: (Name and Address) Buyer: (Name and Address) Effective Date: For adequate consideration, the receipt and sufficiency of which is acknowledged, Seller, named above, sells, assigns, and transfers, to Buyer, named above, and Buyer's successors and assigns, all of Seller's rights, title, interests, and properties described in paragraphs 1. through 10. below, and all rights, estates, powers and privileges appurtenant to those rights, interests, and properties, all collectively referred to in this Assignment as the "Assets." 1. All rights, title, and interests of Seller in, to, and under the oil, gas, and mine ral leases (the "Leases") described in Exhibit "A," including any renewals, extensions, or ratifications, and the oil and gas leasehold estates and other interests in the lands described on Exhi bit "A." Exhibit "A" is attached to and made a part of this Assignment and Bill of Sale for all purposes. 2. Without limit the foregoing, all other rights, title, and interests of Seller, of wha tever kind or character in and to the lands specifically described on Exhibit "A" (the "Lands"), even though the interests of Seller and the Lands may be incorrectly described, or a description of a n interest is omitted from Exhibit "A"; and, all rights, title, and interests of Seller in, to, under, or derived from all oil, gas, and mineral leases and leasehold fee or mineral interests and all other interests of whatever character, insofar as the same covers or relates to the Lands and Lease s described in Exhibit "A" even though an interest may be incorrectly described or omitted from Exhibit "A." 3. All rights, title, and interests of Seller in all rights, privileges, benefits, and powe rs conferred on the holder of the Leases and Lands with respect to the use and occupation of the surface and the subsurface depths under the Lands and Leases. 4. All rights, title, and interests of Seller in any pooled or unitized acreage or ri ghts included, in whole or in part, within the Lands, including all oil and gas production from the pool or unit allocated to such properties (including, without limitation, units formed under orders, rules, regulations, or other official acts of any state or other authority having jurisdicti on and so called "working interest units" created under operating agreements or otherwise) and all interests in any wells within the unit or pool associated with such properties, whether the unitize d or pooled oil and gas production comes from wells located within or without the areas covere d by the Lands, and all tenements, hereditaments, and appurtenances belonging to the properties. 5. All rights, title, and interests of Seller in all of the permits, licenses, servi tudes, easements, rights of way, orders, gas purchase and sale contracts, crude oil purchase and sale contracts or agreements, surface leases, farmin and farmout agreements, acreage contributi on agreements, operating agreements, unit agreements, processing agreements, options, leases of equipment or facilities, and other contracts, agreements, and rights, and any amendm ents, which are owned by Seller, in whole or in part, whether or not the same appear of record in the county where the Lands are located, and which are appurtenant to, affect, are used or held for use in connection with either the ownership, operation, production, treatment or marketing of oil and gas, or either of them, and the sale or disposal of water, hydrocarbons, or associated substances from the Lands and Leases. 6. All rights, title, and interests of Seller in all of the real, personal, and mixed property located in or on the Lands and Leases or used in their operation, which are owned by Selle r or by a third person on behalf of Seller, in whole or in part, including, without limitation, crude oi l, condensate, or products (in storage or in pipelines), wells, well equipment, casing, tanks, boil ers, buildings, tubing, pumps, motors, valves, fixtures, machinery and other equipment, pipelines, gathering systems, power lines, telephone lines, roads, field processing plants, and all other improvements used in operations. 7. All of the rights, title, and interests of Seller in all of the files, records, inform ation, and data relating to the items described in paragraphs 1. through 6. above, including without limitation, title records (including title opinions, abstracts, and title curat ive documents); contracts; geological and seismic records, data and information; and, production records, el ectric logs, and all related matters. 8. To the extent transferable, the benefit of and the right to enforce all rights, c ovenants, and warranties, if any, under the terms and conditions of any of the agreements and contracts described in paragraph 5. above, which Seller is entitled to enforce, with respect to t he Assets, against Seller's predecessors in title to the Assets and against any other party t o such agreements and contracts. 9. To the extent necessary to allow Buyer to have full use of and access to the L ands, Seller grants such right of ingress and egress, rights of way and easements, and their full and uninterrupted use, across any lands which Seller may own or where Seller may be the le ssee under an oil, gas, and mineral lease(s), over or through which Buyer crosses or has the right t o cross for use and access to the Lands described in Exhibit "A." This grant is limit ed to the rights of Seller to grant such rights of ingress and egress, rights of way, and easements under agreements, deeds, or leases through which Seller claims title. 10. All other rights and obligations arising under contract or otherwise by law, or by the occurrence of conditions precedents, which may or may not yet have occurred, owned in whole or in part by Seller, which rights and obligations are incidental to the Assets described i n paragraphs 1. through 9. above, including the right, if any, to operate the Assets. TO HAVE AND TO HOLD the Assets unto Buyer and its successors and assigns forever; provided, however, this Assignment is made by Seller and accepted by Buyer subject to the following terms, representations, agreements, and provisions: 1. Seller represents and agrees that its joint interest account with the operator of wells on the Lands and Leases is current, and that all ad valorem taxes assessed, due and payabl e on the Assets have been fully paid for all time periods up to ____. Seller acknowledges Buyer has materially relied upon this representation in accepting this Assignment. 2. At closing, Seller shall deliver to Buyer all relevant books, records, files, documents, data, and other information pertaining to the Assets. From time to time, whether a t or after closing, as requested by Buyer, its successors or assigns, Seller will execute and deliver a ny and all documents and take such other reasonable actions as may be necessary to fully convey and transfer the Assets to Buyer. 3. Buyer shall: (a) at the Effective Date assume and be responsible for and comply wi th all duties and obligations of Seller, express or implied, with respect to the Assets, including without limitation, those arising under or by virtue of any lease, contract, agreement, document , permit, applicable statute or rule, regulation or order of any governmental authority, specifica lly including, without limitation, any governmental requests or requirement to plug and/or abandon any well of whatever type, status, or classification, or take any clean-up or other ac tion with respect to the property or premises; and, (b) defend, indemnify, and hold Seller harmless from any and all related claims, except any claims asserted against Seller prior to the Effective Date. Seller shall: (a) be responsible for any and all claims arising out of the production or sale of hydrocarbons from the properties, including all expenses of operations, the proper accounting or payment to parties for their interest, insofar as claims relate to periods of time prior to the Effective Date; and, (b) defend, indemnify, and hold Buyer harmless from any and all suc h claims. Buyer shall be responsible for all types of claims insofar as they relate to periods of time from and after the Effective Date and shall defend, indemnify, and hold Seller harmless from such claims. 4. Seller shall be entitled to all proceeds accruing to the Assets prior to the Effective Date of this Assignment and Bill of Sale, including proceeds attributable to product inventories a bove the pipeline connection and gas product inventories as of the Effective Date and shall be re sponsible for operating expenses, capital expenditures, all taxes, and other obligations on the Assets prior to the Effective Date. Buyer shall be entitled to all proceeds accruing to the Assets after the Effective Date and shall be responsible for the operating expenses, capital expenditures, all taxes, and other obligations on the Assets after the Effective Date. Within ____ (____) days after t he execution of this Assignment, Seller will furnish Buyer a statement covering: (a) ad va lorem taxes, severance taxes, crude inventories above the pipeline connection, and gas product inventories credited to Seller as of the Effective Date; (b) operating expenses and c apital expenditures incurred after the Effective Date and paid by Seller; and, (c) revenues received by Seller from production attributable to the Assets after the Effective Date. Payment by Buyer or Seller, as the case may be, based upon the information contained in the stateme nt shall occur within ____ (____) days after receipt of the statement by Buyer. 5. This Assignment and Bill of Sale is made expressly subject to all of the lease s, agreements, and other documents described in Exhibit "A," and all other valid and exist ing contracts, easements, and other instruments affecting all or any part of the Assets, togethe r with any and all existing overriding royalties and other interests payable out of production from all or any part of the Lands, as shown of record. As to claims arising by, through, or under Seller, Seller warrants that title to the Asset s is good and marketable, and Seller agrees that Seller shall be responsible for title defects occurring or arising out of occurrences or omissions of, by, through, or under Seller, but not otherwise. In addition, Seller represents and covenants that the Assets are free and clear of any a nd all liens, encumbrances, or claims of third parties created by Seller; and, further that Selle r has no notice of pending litigation or claims of any kind, including claims by the owners of the surface and/or mineral estate, which would or could, if successfully prosecuted, impair in any manner the Assets. SELLER MAKES NO REPRESENTATION OR WARRANTY OF ANY KIND, NATURE OR DESCRIPTION, EXPRESS OR IMPLIED, WITH RESPECT TO THE EQUIPMENT AND PERSONAL PROPERTY LOCATED ON THE ASSETS, INCLUDING, WITHOUT LIMITATION, THE CONDITION OF THE EQUIPMENT OR ITS MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. It is the intention and agreement of Seller and Buyer that the provisions of this Assignment and Bill of Sale shall be severable. Should the whole or any portion of a secti on or paragraph be judicially held to be void or invalid, such holding shall not affect other porti ons which can be given effect without the invalid or void portion. The provisions of this Assignment shall be binding on and inure to the benefit of Buyer and Seller and their respective affiliates, heirs, devisees, legal or personal represent atives, successors, and assigns and shall constitute covenants running with the Lands and the Assets. This Assignment is executed by Seller and Buyer as of the date of the acknowledgments of their signatures below, but is effective as of the Effective Date stated above. Seller Buyer [Exhibit "A": Description of Oil and Gas Leases and Lands.]