Date:91412019 FILED 0 2019 To: sEP I State of Utah Board of DNR SEGRETARY BOARD OF Division of Oil Gas & Mining OIL, GAS & MINING 1594 W North Temple, Suite 1210 Salt Lake City, UT 84116 Docket No. 2019-021 From: Cause No. 139-168 VETAR ENERGY G.P. (the Creditor) 2233 East 3'd Ave. Port Angeles, WA 98362 Phone No: (360) 477-5234 E-mail [email protected] Pursuant to Utah Code 40-6-9 (4), with this letter we file a petition with the board to conduct a hearing to determine why the Oil and Gas Royalty proceeds have not been paid to us. The Debtor: Riviera Operatine. LLC flVaLinn Energy Holdings LLC, Riviera Resources, a spin-off from LINN Energy,Inc. 600 Travis, Suite 1700 Houston, TX77002 Contact person at Riviera Operating, LLC Ms. Holly Anderson, Executive Vice President and General Counsel Phone: 281-840-4155 E-mail: handers com l. Two (2) Oil and Gas Wells named, White l-23C5 and White Trust 3-23C5, located in Section 23, Township 3 South - Range 5 West, Duchesne County, State of Utah. 2. Vetar Energy G.P., the Lessor, owns an undivided 20% interest of the Mineral Rights of Section 23:Wll2SEll4;SWll4 (240 gross acres) (48 net acres). 3. The lease was entered into on 17 April 1971, stipulating a Il8 (I2.5%) Royalty payment. 4. The lease was purchased from EP Energy, by LINN Energy LLC. prior to commencement of drilling in 2015. Consequently, becoming the Lessee, who is by State of Utah law, responsible of paying the Lessor the Royalty. 5. The Debt relates to the net Oil and Gas revenues from production and sales, forwarded monthly to LINN Energy LLC. (the lessee), by EP Energy E&P Company, L.P., the Operator of the subject wells. We are in receipt of Riviera Operating, LLC letter dated June 27,2019 answering Vetar Energy G.P Demand Letter dated June 4, 2019. The two (2) letters are hereto attached. In an Amended Demand letter from us, to Riviera Operating, LLC, dated 712812019, the amount owed VETAR Energy was changed to $48,842,07,the amount of royalties from the subject wells, for the period of production from June 2015 through May 2016.Itemized statement hereto attached. Utah Code 40-6-9. Proceeds from sale of production - Payment of proceeds - Requirements and 40-6-9.1. Payment information to royalty owners. https://le.utah. gov/xcode/Title4O/Chapter6/40-6- S9.html 1. None of the Codes therein were followed by LINN Energy LLC. For one (1) year, from June 2015 to May 2016. LINN Energy deposited all of the Royalty funds, belonging to the lessors, into its own general account, treating it as its own, and embezzling its true recipients the lessors. 2. LINN Energy LLC, (the lessee) also failed to mail a DIVISION ORDER to VETAR Energy G.P. (the lessor) to secure a signature. This should have been done immediately upon commencement of production of each well. 3. Riviera Operating, LLC letter dated June 27,2019, argue that the Royalty payments owed to Vetar Energy G.P. was forfeited to LINN Energy's Chapter l1 Reorganization proceedings. However, LINN Energy LLC continued to pay VETAR Energy for Royalties on four (4) other wells during the same time period. Showing that here they did followed the laws of State of Utah. 4. At one point durin92016, starting June 2016, the Royalty proceeds, due the lessors to this property, were deposited into a Bank escrow account (suspense account). The Debtors lists the following Companies, including its tax identification numbers, in in its Chapter 1l Plan of Reorganization, l. Linn Energy,LLC (7591) 2. Linn Co, (6623) 3. Linn Acquisition Company LLC (4791) 4. Linn Energy Finance Corp. (5453) 5. Linn Energy Holdings LLC (6517) 6. Linn Exploration and Production Michigan LLC (0738) 7. Linn Exploration Midcontinent LLC (3143) 8. Linn Midstream LLC (9707) 9. Linn Midwest Energy LLC (1712) 10. Linn Operating Inc. (3530) 11. Mid-Continent I LLC (1812) 12. Mid-Continent II LLC (1869) 13. Mid-Continent Holdings I LLC (1686) 14. Mid-Continent Holdings II LLC (7129) The extended family members listed below; each owns a like amount of Royalty interest in the subject property as VETAR Energy, and wish to be part of this petition/request. J. Smith Investments LCC. owns an undivided 2D%;oMiner.al Royalty Interest in SW1/4, Ell2SEIl4 Sec. 23 David Smith, General Manager 3745 Greenbriar Way Salt Lake City, UT 84109 E-mail add: [email protected] Home: 801- 272-2872, Mobil: (801) 599-0467 Voda Investments LLC owns an undivided 20% Mineral Royalty Interest in SWI/4, EIl2SEll4 Sec. 23 David Voda, General Manager 897 North 2500 West Hurricane, Utah84737 E-Mail: dsvoda@,hotmail.com Home: (435) 635-5272 Publications available: LINN Energy LLC's management, sold Linn Energy's assets in Utah, including our leases, to Altamont Energy for 132 Million Dollars, LINN Energy LLC's management, claims all Creditors were paid in full during Chapter 11 Reorganization proceedings. Big payouts after bankruptcy as Linn Energy seeks to dissolve name By Jordan Blum, StaffWriter April 23,2018 Former Wall Street darling Linn Energy will abandon the "Linn" name as it splinters into multiple businesses, but not before its three top leaders took in more than $110 million rn compensation after the company emerged last year from arguably the biggest bankruptcy of the recent oil bust. Yours sincerely. GP Jorgen W. Bogdanoff, General Partner (appointed representative) ENERGY June27,2AL9 VETAR ENERGY G.P. 2233 East 3'd Ave. Port Angeles, WA 98362 Attn: Jorgen W. Bogdanoff Managing General partner Dear Sirs: This is to acknowledge receipt of your letter of Jun e 4,2OL9 whereby you allege the non-payment of certain royalties due for periods of time from 2015 through February 2018 related to the White 1-23C5, White 2-23C5, and White Trust 3-23C5 wells. All of these dates precede the date that Altamont purchased the wells from Linn Energy. These alleged breaches, if any, remain the responsibility of Linn Energy (now Riviera Resources). Altamont has notified Riviera of your claims. Altamont recommends that you contact Riviera directly. The Riviera representative is Holly Anderson. Her contact information is: Email: [email protected] Phone: 28L-840-4155 Ms. Anderson is copied on this correspondence Sincerely, Brian Mazeski Controller Cc: Holly Anderson, General Counsel, Riviera Resources 600 Travis, Suite 1700 Riviero Horrston, TX 77002 Operating, l,l,(', (281) 840-4000 Iune27,2019 VETAR ENERGY G.P, 2233 East3d Ave. Port Angeles, WA 98362 Re: Payment Demand Letter Dated June 4, 2019 submitted to Altamont Energy Operating LLC We are in receipt of the above-referenced demand from VeTar Energy G.P, which includes a claim for royalties in the White l-23C5 and White Trust 3-23C5 for periods from June 2015 to May *Pre-Petition 2016 (the Demand'). Altamont Energy Operating, LLC referred this Demand to Riviera Operating, LLC fMalinn Operating, Inc., individually and as agent for Riviera Upstream, LLC flHa Linn Energy Holdings, LLC because the Prepetition Demand predates Altamont's ownership in the referenced properties, arising instead during the time frame in which Linn Energy *LINII") Holdings, LLC andior Linn Operating, Inc. (collectively owned the interest in the properties from which the Pre-Petition Demand arises. We have reviewed the Pre-Petition Demand and believe that any obligation described therein which relates to obligations owed prior to February 28,2017 was discharged as a result of LINN's bankruptcy proceedings, as described in detail below. On May ll,2016 (the"Petition Date"), Linn Energy, LLC and certain of its affiliates including LINN, (collectively, the 'oDebtors") colnmenced voluntary cases under chapter I I of title 11 of the United States Code (the "Bankruptcy Code") in the United States Bankruptcy Court for the Southem District ofTexas (the"Bankruptcy Court"). On October 21,2016, LINN filed its Chapter 11 Plan of Reorganizationwith the Bankruptcy Court (as amended and supplemented, Ihe"Plan"). On January 27,2A17, the Bankruptcy Court entered an order confirming the Plan, which was effective on February 28,2017 (the "Effective Date"). Generally the provisions of the Plan bind any creditor of the Debtors, whether or not they accepted the Plan. See Sl I4l of the Banlvuptcy Code. Except as otherwise provided in the Plan, the Debtors were discharged from any debt that arose before the Confirmation Date. See SI 141 of the Banlvuptcy Code. Moreover, Article VIII.B of the Plan provides ...the distributions, rights, and treatment that are provided in the Plan shall be in complete satisfaction, discharge, and release, effective as of the Effective Date, of Claims... Interests, and Causes of Action of any nature whatsoever, including interest accrued on Claims or Interests from and after the Petition Date, whether known or unknown, against liabilities of, Liens on, obligations o{ rights against, and Interests in, the LINN Debtors or any of their assets or properties ... including demands, liabilities, and Causes of Action that arose before the Effective Date..., in each case whether or not (1) a Proof of Claim based upon such debt or right is Filed or deemed Filed pursuant to section 501 of the Bankruptcy Code, (2) a Claim or Interest based upon such debt, right or Interest is Allowed pursuant to section 502 of the Bankruptcy Code, or (3) the Holder of such a Claim or lnterest has accepted the Plan. Any default or "event of defaulf' by the LINN Debtors or Affrliates with respect to any Claim or Interest that existed immediately before or on account of the Filing of the Chapter I I Cases shall be deemed cured (and no longer continuing) as of the Effective Date.