HomeMy WebLinkAbout20120035.tiff NADOA Model Form Division Order(Adopted 9/95)
DIVISION ORDER
To: Petroleum Development Corporation Date: December 12,2011
1775 Sherman Street,Suite 3000
Denver, CO 80203
Attn: Jenni L Muller (303) 831-3914 or imuller(a petd.corn
Property Number: 105.100079 Effective Date: April 25, 2011
Property Name: Schaefer 7MD NBCD
Operator: Petroleum Development Corp
County and State: Weld, Colorado
Property Township 6 North, Range 66 West
Description: Section 7: NWNE
Production: X Oil X Gas X Other: all products _
Owner Name OWNER NUMBER: 43444
and Address: Weld County Board of Comm Type of Interest: RI
PO Box 758 Decimal Interest: 0.00456250
Greeley, CO 80632-0758
The undersigned certifies the ownership of their decimal interest in production or proceeds as described above payable by Petroleum
Development Corporation(Payor).
Payor shall be notified,in writing, of any change in ownership,decimal interest,or payment address. All such changes
shall be effective the first day of the month following receipt of such notice.
Payor is authorized to withhold payment pending resolution of a title dispute or adverse claim asserted regarding the interest in
production claimed herein by the undersigned. The undersigned agrees to indemnify and reimburse Payor any amount attributable to
an interest to which the undersigned is not entitled.
Payor may accrue proceeds until the total amount equals$50.00 ,or pay yearly whichever occurs first,or as required by applicable
state statute.
This Division Order does not amend any lease or operating agreement between the undersigned and the lessee or operator or any other
contracts for the purchase of oil or gas.
In addition to the terms and conditions of this Division Order,the undersigned and Payor may have certain statutory
rights under the laws of the state in which the property is located.
Special Clauses: (None or See Attached Exhibit)
��
Owner(s) Signature(s): � (/r. e �}
Sean P. Conway, Chai JAN 0 4 202
Owner(s) SSN/Tax I.D. Number(s): 84-6000-813
Owner Daytime Telephone: 970-356-4000 X4200
Owner Email Address:
Federal Law requires you to furnish your Social Security or Taxpayer Identification Number.
Failure to comply will result in 28 %tax withholding and will not be refundable by Payor
JLM
Retain this copy for your records
CSC. \ one -k PDe ta 0103
- - L °L) II
0ENERGY
Corporate Office
1775 Sherman Street,Suite 3000
Denver,CO 80203
303-860-5800
www.petd.com
December 13, 2011
Weld County Board of Comm
PO Box 758
Greeley, CO 80632-0758
Re: Division Order— Schaefer 7MD
Dear Interest Owner:
Enclosed are two copies of our Division Order for the above referenced well.
Please follow the enclosed "Instructions to Interest Owners"for executing and returning one
copy of the Division /Transfer Order to this office. The extra copy is for your records.
The cut-off for changes in accounting is the 10th of the month. If we receive your
Division/Transfer Orders after the 10th, the pay change will take place the following month.
If you have any questions pertaining to the calculation of your interest on the Division / Transfer
Order, please feel free to contact me by e-mail at jmullerc(�petd.com or by phone at
303.831.3914. Changes in ownership or address should also be directed to my attention. If you
have questions pertaining to revenue or revenue checks, please contact the Revenue
Department at the Bridgeport Office.
Sincerely,
Petr lleu�m�D�evelopment Corporation DBA PDC Energy
IAAMAVAAkitilltA
Je ni L. Muller
Division Order Analyst
film
enclosures
INSTRUCTIONS TO All. INTEREST OWNERS
Dear Interest Owner.
Petroleum Development Corporation has enclosed a Division Order for your execution.
The attached document should not he altered in any way except to correct spelling errors, unless accompanied by
documentary evidence to support the change.
If your name and interest are correctly shown:
I. Sign your name as shown on the Division Order.
2. If your name has changed due to marriage or divorce,execute the Division Order using your present name and furnish a copy
of the marriage certificate or divorce decree.
3. If signing for a corporation.signature must he attested,corporate seal fixed and title of signatory party reflected.
4. If signed by agent.attorney-in-fact.guardian or any party other than the named interest owner, a certified copy of the power
of attorney or other evidence of such party's right to sign must he furnished.
5. Your correct mailing address should he noted in the space provided to insure prompt receipt of production proceeds.
6. The top copy or the"Original"of the Division Order should he returned to:
Petroleum Development Corporation
1775 Sherman Street,Suite 3000
Denver, Colorado 80203
Attn: Jenni L. Muller
7. Should you have any further questions regarding the enclosed Division Order, please contact Petroleum Development
Corporation at(303)860-5836 or(888)860-5836.
8. Please 1)O NOT DETACI I the exhibit from the Division Order or Transfer Order if one is included.
Stephanie Arries
From: Jenni L. Muller [jmuller@petd.com]
Sent: Tuesday, December 27, 2011 8:45 AM
To: Stephanie Arries
Subject: RE: Division Order- Schaefer 7MD; Order No 43444
Attachments: Schaefer 7MD Req. 4 - Weld County Board Rec. OGL & Resolution.pdf
Good morning Stephanie,
Sorry I didn't respond more quickly, I was out of the office for the holidays. Township 6 North, Range 66 West, and
Section 7: NWNE is the bottom hole location of the Schaefer 7MD well.The spacing unit is spaced Township 6 North,
Range 66 West,Section 6: SWSE, SESW; and Section 7: NENW, NWNE. I've attached a copy of the recorded lease
containing 3.65 acres at reception No. 3804378 on 11/08/11, which is included in the spacing of the Schaefer 7MD well.
Please let me know if you have any further questions!
Best,
Jenni
Jenni L. Muller I Petroleum Development Corporation dba PDC Energy I Direct: 303.831.3914 I Main: 303-860-5800
Fax: 303-860-5838 I jmuller@petd.com
From:Stephanie Arries lmailto:sarries@co.weld.co.us]
Sent:Thursday, December 22, 2011 4:15 PM
To:Jenni L. Muller
Subject: Division Order-Schaefer 7MD; Order No 43444
Jenni
Our records of royalty interests for the County are maintained by the office of the Clerk to the Board.They have come to
me with a question, because we have no record of a leased interest in the property described as Township 6 North,
Range 66 West, and Section 7: NWNE.
Would you be able to send me the title opinion or copy of the lease which reflects the leased interest of PDC Energy?
Once we have that information, we can proceed to recommend that the Board execute this Division Order.
Your assistance in this matter is greatly appreciated!
Stephanie L. Arries
Assistant Weld County Attorney
1150 ox Street 111 /P.O. , 1444
Box 758 • L' L LCD
Greeley, Colorado 80632 k
Tel: 970-356-4000 ext 4394 (r� /2/1)&1161
Fax: 970-352-0242 l/
Email: sarries@co.weld.co.us
I 66 22i I
WA/O{j N T T
STATEMENT OF CONFIDENTIALITY& DISCLAIMER: The information contained in this email message is attorney
privileged and confidential, intended only for the use of the individual or entity named above. If the reader of this
message is not the intended recipient,you are hereby notified that any dissemination, distribution or copy of this email
is strictly prohibited. If you have received this email in error, please notify us immediately by replying and delete the
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2
•
�j
WELD COUNTY OIL AND GAS LEASE
(Small Tract)
THIS AGREEMENT, made and entered into this 25th day of October, 2011, by and between
WELD COUNTY, COLORADO, a political subdivision of the State of Colorado acting by and through the
Board of County Commissioners of the County of Weld, 945-49th-Street, P.O. Box 758, Greeley, CO 1150 °O"5}.
80632, hereinafter called Lessor, and LoneTree Energy & Associates, LLC, 3 West Dry Creek Circle,
Littleton, CO 80120 hereinafter called Lessee.
WITNESSETH, that Lessor, for and in consideration of the sum of$1,460.00, cash in hand paid,
the receipt of which is hereby acknowledged, and the covenants and agreements hereinafter described,
has granted, demised, leased and let, and by these presents does grant, demise, lease and let
exclusively unto the said Lessee, the land hereinafter described, with the exclusive right for the purpose
of mining, exploring by geophysical and other methods, and operating for and producing therefrom; oil
and all gas of whatsoever nature or kind, with rights of way and easement for laying pipe lines, and
erection of structures thereon to produce, save and take care of said products, all that certain tract of land
situated in the County of Weld, State of Colorado, described as follows, to wit:
Section 6 Township 6 North, Range 66 West of the 6th P.M..Weld County, Colorado:
A strip of land 150 feet in width, being 75 feet wide on each side of the center line of the track of the
Denver Laramie and Northwestern Railway as now located, surveyed and staked out over and across the
E/2SW/4 of Section 6, in Township 6 North, Range 66 West of the 6'" P.M. Said center line being more
fully described as follows:
Beginning at a point on the South line of said E/2SW/4, 499 feet West of the East line thereof; thence
running North 57°19' West 954.3 feet; thence Northwesterly on a curve to the right with a radius of 5730
feet, for a distance of 107.7 feet to a point on the West line of said E/2SW/4, crossing said line 595 feet
(more or less) North of the Southwest corner thereof.A total distance of 1062 feet.
and containing 3.65 acres, more or less.
1. It is agreed that the lease shall remain in force for a term of three(3) years from this date
and as long thereafter as oil or gas of whatsoever nature or kind is produced from said leased premises
or on acreage pooled therewith, or drilling operations are continued as hereinafter provided. If, at the
expiration of the primary term of this lease, oil or gas is not being produced on the leased premises or on
acreage pooled therewith but Lessee is then engaged in drilling or re-working operations thereon, then
this lease shall continue in force so long as operations are being continuously prosecuted on the leased
premises or on acreage pooled therewith; and operations shall be considered to be continuously
prosecuted if not more than ninety(90)days shall elapse between the completion or abandonment of one
well and the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on
said land or on acreage pooled therewith, the production thereof should cease from any cause after the
primary term, this lease shall not terminate if Lessee commences additional drilling or re-working
operations within ninety (90) days from date of cessation of production or from date of completion of dry
hole. If oil or gas shall be discovered and produced as a result of such operations; at or after the
expiration of the primary term of this lease, this lease shall continue in force so long as oil or gas is
produced from the leased premises or on acreage pooled therewith.
2. This is a PAID-UP LEASE. In consideration of the down cash payment, Lessor agrees
that Lessee shall not be obligated, except as otherwise provided herein, to commence or continue any
operations during the primary term. Lessee may at any time or times during or after the primary term
surrender this lease as to all or any portion of said land and as to any strata or stratum by delivering to
Lessor or by filing for record a release or releases, and be relieved of all obligation thereafter accruing as
to the acreage surrendered.
LE 007
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3. In consideration of the premises the said Lessee covenants and agree to pay Lessor
twenty percent (20%) of the proceeds received by Lessee, payable monthly, for the oil, gas and other
hydrocarbons produced and saved from the leased premises.
4. Where gas from a well capable of producing gas is not sold or used, Lessee may pay or
tender as royalty to Lessor One Dollar per year per net mineral acre owned by Lessor and covered by this
lease, such payment or tender to be made on or before the anniversary date of this lease next ensuing
after the expiration of 90 days from the date such well is shut in and thereafter on or before the
anniversary date of this lease during the period such well is shut in. If such payment or tender is made, it
will be considered that gas is being produced within the meaning of this lease.
5. If said Lessor owns less than the entire oil and gas fee simple estate in the above
described lands, then the royalties (including any shut-in gas royalty) herein provided for shall be paid to
the said Lessor only in the proportion which Lessor's interest bears to the entire oil and gas mineral fee
simple estate.
6. Lessee shall have the right to use, free of cost or royalty, gas, oil and water produced on
said land for Lessee's operations thereon, except water from the wells of Lessor.
7. When requested by Lessor, Lessee shall bury Lessee's pipe lines below plow depth.
8. No well shall be drilled nearer than 200 feet to any occupied building on said premises
without the written consent of Lessor.
9. Lessee shall have the right at any time to remove all of Lessee's machinery and fixtures
placed on said premises, including the right to draw and remove casing.
10. The rights of Lessor and Lessee hereunder may be assigned in whole, or in part, upon
payment of a$25.00 fee and written consent of the Board of Weld County Commissioners. No change in
ownership of Lessor's interest(by assignment or otherwise) shall be binding on Lessee until Lessee has
been furnished with notice, consisting of certified copies of all recorded instruments or documents and
other information necessary to establish a complete chain of record title from Lessor, and then only with
respect to payment thereafter made. No other kind of notice, whether actual or constructive, shall be
binding upon Lessee. No present or future division of Lessor's ownership as to different portions or
parcels of said land shall operate to enlarge the obligations or diminish the rights of Lessee, and all
Lessee's operations may be conducted without regard to any such division. If all or any part of this lease
is assigned, no leasehold owner shall be liable for any act or omission of any other leasehold owner.
11. Lessee, at its option, is hereby given the right and power at any time and from time to
time as a recurring right, either before or after production, as to all or any part of the land described herein
and as to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the
mineral estate covered by this lease with other land, lease or leases in the immediate vicinity for the
production or oil and gas, or separately for the production or either, when in Lessee's judgment it is
necessary or advisable to do so, and irrespective of whether authority similar to this exists with respect to
such other land, lease or leases. Likewise, units previously formed to include formations not producing oil
or gas may be reformed to exclude such non-producing formations. The forming or reforming of any unit
shall be accomplished by Lessee executing and filing of record a declaration of such unitization or
reformation, which declaration shall describe the unit. Any unit may include land upon which a well has
theretofore been completed or upon which operations for drilling have theretofore been commenced.
Production, drilling or reworking operations or a well shut in for want of a market anywhere on a unit
which includes all or a part of this lease shall be treated as if it were production, drilling or reworking
operation or a well shut in for want of a market under this lease. In lieu of the royalties elsewhere herein
specified, including shut-in gas royalties, Lessor shall receive on production from the unit so pooled
royalties only on the portion of such production allocated to this lease; such allocation shall be that
proportion of the unit production that the total number of surface acres covered by this lease and included
11111111111111111111111111111111111111111111111111 2011
n ac Val OLease Smalrlract-Updated Legal Co.Board of l 10 26.1.1.doc
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in the unit bear to the total number of surface acres in such unit. In addition to the foregoing, lessee shall
have the right to unitize, pool or combine all or any part of the above described lands as to one or more of
the formations thereunder with other lands in the same general area by entering into a cooperative or unit
plan of development or operation approved by any governmental authority and, from time to time, with
like approval, to modify, change or terminate any such plan or agreement and, in such event, the terms,
conditions and provisions of this lease shall be deemed modified to conform to the terms, conditions and
provisions of such approved cooperative or unit plan of development or operation and, particularly, all
drilling and development requirements of this lease, express or implied, shall be satisfied by compliance
with the drilling and development requirements of such plan or agreement, and this lease shall not
terminate or expire during the life or such plan or agreement. In the event that said above described
lands or any part thereof shall hereafter be operated under any such cooperative or unit plan of
development or operation whereby the production therefrom is allocated to different portions of the land
covered by said plan, then the production allocated to any particular tract of land shall, for the purpose of
computing the royalties to be paid hereunder to Lessor, be regarded as having been produced from the
particular tract of land to which it is allocated and not to any other tract of land; and the royalty payments
to be made hereunder to Lessor shall be based upon production only as so allocated. Lessor shall
formally express Lessor's consent to any cooperative or unit plan of development or operation adopted by
Lessee and approved by any governmental agency by executing the same upon request of Lessee.
12. All express or implied covenants of this lease shall be subject to all Federal and State
laws, executive orders, rules or regulations, and this lease shall not be terminated, in whole or in part, nor
Lessee held liable in damages, for failure to comply therewith, if compliance is prevented by, or if such
failure is the result of, any such law, order, rule or regulation.
13. Lessor does not warrant title to the leased premises, but it shall, upon request, allow
Lessee access to such abstracts and other title papers as it has in its files. Lessee shall have the right at
any time to redeem for Lessor, by payment, any mortgages, taxes or other liens on the above described
lands in the event of a default of payment by Lessor, and be subrogated to the rights of the holder
thereof.
14. Lessee shall indemnify Lessor against all liability and loss, and against all claims and
actions, including the defense of such claims or actions, based upon or arising out of damage or injury,
including death, to persons or property caused by or sustained in connection with operations on this
leased land or by conditions created thereby, or based upon any violation of any statute, ordinance or
regulation.
15. Upon failure or default of Lessee to comply with any of the terms and provisions hereof
including but not limited to the failure to comply with laws, rules and regulations covering Colorado oil and
gas operations, Lessor is hereby authorized upon notice and hearing, as hereinafter provided, to cancel
this lease as to all of the leased land so claimed or possessed by Lessee hereunder. In the event of any
such default or failure, Lessor shall, before making any such cancellation, send to Lessee by certified
mail, to the post office address of said lessee as shown by the records of Lessor, a notice or intention to
cancel for such failure or default, specifying the same, stating that if within thirty (30) days from the date
of mailing said notice, Lessee shall correct such failure or default, no cancellation will be made. If such
failure or default is not corrected with thirty (30) days after the mailing of such notice, and if Lessee does
not request a hearing on such notice within thirty (30) days, this lease will terminate and be canceled by
operation of the paragraph without further action by Lessor, or further notice to Lessee.
16. All of the provisions of this lease shall be binding upon the heirs, personal
representatives, successors and assigns of Lessor and Lessee.
17. Lessee shall not conduct operations of any kind upon the surface of the lands herein
described without the express written consent of Lessor.
IIIIII"III IIIIIII III VIII IIIIIII VIII KM
IIII IIII 'ard Lake)\Leases\Weld Co.Board of Commissioners\10-25-2011
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(sm actract)\foLease smalmrad-upate Updated Legal10.26.11.doc
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18. Neither party shall be responsible for delays or failures in performance resulting from acts
or occurrences beyond the reasonable control of such party, including, without limitation: fire, explosion,
power failure, flood, earthquake or other act of God; war, revolution, civil commotion, terrorism, or acts of
public enemies; any law, order, regulation, ordinance, or requirement of any government or legal body or
any representative of any such government or legal body; or labor unrest, including without limitation,
strikes, slowdowns, picketing or boycotts. In such event, the party affected shall be excused from such
performance (other than any obligation to pay money) on a day-to-day basis to the extent of such
interference (and the other party shall likewise be excused from performance of its obligations on a day-
to-day basis to the extent such party's obligations relate to the performance so interfered with).
IN WITNESS WHEREOF, Lessor has hereunto signed and caused its name to be signed by the
CHAIR, BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD, with the seal of the
office affixed, and Lessee has signed this agreement, the day and year first above written.
ATTESTia
Weld County Clerk to the Board BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
By trite
Deputy err o t -\r;v I ; Chair, Board of Cou ty Commissi ners
NOV 0 2 2011
1�1 Fx 'a ' NM LESSEE: LO REE EN &ASSOCIATES, LLC
,� '.iii✓ ��
11/4�' —`� By:
sr Aus in Mater
Title: /Y�snactc1Y
Mafiager
STATE OF COLORADO
ss
COUNTY OF ARAPAHOE )
frci
The foregoing instrument was acknowledged before me this �7 day of
, 1
a17I0-LY , 20 L I , by Ln LAC,
Witness my hand and official seal.
PATRICIAA KOENIG
Notary Public \c. -� a NOTARYPUBUC,STATE 0FC0L0RAD0
My Commission Expires: 3s a� ' -o 1 My Comm.Expires March V,2015
1111111 11111 DID MIDI 1111111 111111 11111 IIII IIII
3804378 11/08/2011 12:22P Weld County, CO
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W:\Clients\PDC\Prospects\Colorado Prospects\Wattenberg(Howard Lake)LL.eases\Weld Co.Board of Commissioners 1 25-2011
6-66 Sec 6(sm ac tract)1FOLease_SmallTract-Updated Legal 10.26.11.doc
(Revised 1/2011)
RESOLUTION
RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING OIL AND GAS
LEASE, ACCEPT OFFER TO LEASE MINERAL ACRE, AND AUTHORIZE CHAIR TO
SIGN -LONETREE ENERGY AND ASSOCIATES, LLC
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, LoneTree Energy and Associates, LLC, 3 West Dry Creek Circle, Littleton,
Colorado 80120, has requested that the bidding procedure be waived according to the policy as set
forth in the Weld County Code for parcels less than five acres, on the following described mineral
acres:
A strip of land 150 feet in width, being 75 feet wide on
each side of the center line of the track of the Denver
Laramie and Northwestern Railway as now located,
surveyed and staked out over and across the E112
SW1/4 of Section 6, Township 6 North, Range 66
West of the 6th P.M., Weld County, Colorado; said
center line being more fully described as follows:
Beginning at a point on the south line of said E1/2
SW 1/4,/4, 499 feet west of the east line thereof;thence
running north 57° 19' west 954.3 feet; thence
northwesterly on a curve to the right with a radius of
5,730 feet, for a distance of 107.7 feet to a point on
the west line of said E1/2 SW1/4, crossing said line
595 feet(more or less)north of the southwest corner
thereof. A total distance of 1,062 feet.
WHEREAS,LoneTree Energy and Associates,LLC, is offering to lease the above described
mineral acres, containing 3.65 mineral acres, more or less, and
WHEREAS,the Board finds that the lease offer from LoneTree Energy and Associates,LLC,
in the amount of ONE THOUSAND FOUR HUNDRED SIXTY AND NO/100 DOLLARS($1,460.00),
is acceptable, with further terms and conditions being as stated in said Small Tract Oil and Gas
Lease, a copy being attached hereto and incorporated herein by reference.
2011-2909
%C.. CA, L_bvutrfi2 LE0071
iI-I0' Ll
WAIVE BID PROCEDURE- LONETREE ENERGY AND ASSOCIATES, LLC
PAGE 2
NOW,THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the request of LoneTree Energy and Associates, LLC, to waive the bidding
procedure on an Oil and Gas Lease concerning the above described mineral acres,be,and hereby
is, granted.
BE IT FURTHER RESOLVED by the Board that the offer of LoneTree Energy and
Associates, LLC, to lease mineral acres, as hereinabove stated, be, and hereby is, accepted.
BE IT FURTHER RESOLVED by the Board that the Chair, be, and hereby is, authorized to
sign said Small Tract Oil and Gas Lease.
The above and foregoing Resolution was, on motion duly made and seconded, adopted by
the following vote on the 2nd day of November, A.D., 2011.
BOARD OF COUNTY COMMISSIONERS
WEL,p COUNTY, COLORADO
ATTEST: j lill(L(R� / i� fA, vc_
irbara Kirkmeyer, Cy air t
Weld County Clerk to the Board E,p L,® XCUSED
can P. Con Pro-Tern
BY:
Deputy C rk to the Boar _lir / i'
iam F. Garcia
APPROVED AS TOfrORM: U rci' ?/. o
✓' David E. Long
�Attm. Ci
orney
, L% 4a_trE7 O1L--3
Dougla Rademach r
Date of signature: /%-,K-//
2011-2909
LE0071
•
COUNTY ATTORNEY STAFF APPROVAL
This is to affirm the attached Division Order and Authorization to
Receive Payment for an Oil and Gas Well has been reviewed by
the County Attorney's staff as to form, legal description, and
percentage of royalties, if applicable.
County ttomey
DATE: ��
Hello