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RESOLUTION
RE: AUTHORITY TO SIGN OIL DIVISION ORDER RE: MARLIN OIL COMPANY,
DENVER CLUB BUILDING, 518 17TH STREET, DENVER, COLORADO,
80202, LEASE NUMBER 55677 : (DENNY NUMBER 3) SOUTHWEST QUARTER
OF THE SOUTHEAST QUARTER OF SECTION 27, TOWNSHIP 7 NORTH,
RANGE 67 WEST OF THE 6TH P.M. IN WELD COUNTY, COLORADO.
WHEREAS, Weld County, Colorado, is the holder of lease
number 55677 with Marlin Oil Company, on the Southwest Quarter
of the Southeast Quarter of Section 27 , Township 7 North, Range
67 West of the 6th P.M. , in Weld County, Colorado, and
WHEREAS, Marlin Oil Company has submitted an oil and gas
division order on the subject property,
NOW, THEREFORE, BE IT RESOLVED, by the Board of County
Commissioners, Weld County, Colorado, that they do hereby
execute the oil and gas division order as submitted by Marlin
Oil Company.
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on this 30th day of
August , A. D. , 1976 .
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
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1.1
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ATTEST:
Weld County Clerk and Recorder
'and Clerk to the Boma
Deputy County (1er
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APPRO D AS ORM:
Co my Attorney
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DIVISION ORDER
JRV NEW
TO: WESTERN CRUDE OIL, INC. Lease No. 55677
P. O.Box 5568
Denver, Colorado 80217 Date July 19 , 1976
The undersigned, and each of them, guarantee and warrant that they are the legal owners of their respective interests, in
the proportions hereinafter stated, in all oil produced and saved from the
THE MARLIN OIL COMPANY - DENNY # 3
lease,
located in Weld Colorado
County, State of , described as:
Township 7 North, Range 67 West
Section 27: SW/4SE/4
Effective at 7:00 A.M. Date of First Oi 1 Run ,and until further written notice, you are authorized
to receive all such production, for your own purchase or for resale, to receive payment therefor, to give credit for all proceeds
derived therefrom and pay therefor as follows:
OWNER NO. CREDIT TO
DIVISION OF INTEREST
*FOR DIVISION OF INTEREST SEE EXHIBIT "A" ATTACHED HERETO AND
MADE A PART HEREOF.
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•
AB covenants appearing on the reverse side hereof are incorporated herein by reference and the undersigned agree that
each shall be deemed and considered an essential part of this division order in like manner and with the same effect as if
printed above our signatures.
SIGNATURE O ;WIT 9S 1 • IGNATURE OF OWNER SOCIAL SECURITY OR
/1 A,,- .AwCit ,� 51 TAX I.D. NUMBER
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XATTRST: " 7 X X R4-6000—R13
XCounty Clerk and Recorder
And Clerk to the Board
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Ad.-1 g �IG ra - a.1.._
A MAIL CHECKS TO FOLLOWING ADD 99• X %fZintii
Clerk to the Board
P.O. Box 758
GLeelcy, Colin.ado 80631
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The following covenants are also part of this division order and shall become valid and binding upon each and every in-
terest owner above named upon execution hereof by such interest owner, and upon his or her successors, legal representatives
and assigns, without regard to whether any other interest owner or owners have so signed.
FIRST: All oil received and purchased hereunder shall be merchantable oil and shall become your property as soon as
the same is received into your custody or that of any carrier designated by you.
SECOND: The oil received and purchased hereunder shall be delivered f.o.b. to any carrier designated by you which
gathers and receives said oil and you agree to pay for such oil to the respective owners according to the division of interests
herein specified at the price being posted or paid by you at the time of such delivery; provided, however, that whenever it shall
become necessary to truck oil from the leased premises, the additional costs resulting therefrom shall be deducted from the pur-
chase price prior to computing payments to be made hereunder. The term "oil" as used in this division order, shall include all
marketable liquid hydrocarbons.
THIRD: You shall compute quantity and quality, making corrections for temperature and deductions for impurities, accord-
ing to the customs and prevailing practice in effect at the time and place of delivery and subject to rules and regulations
prescribed by any governmental authority having jurisdiction in the premises.
FOURTH: Payments shall be made monthly for oil received and purchased during the preceding month, by your checks
delivered or mailed to the respective parties at the addresses above stated; provided that if, at any time, the monthly payment
due any party hereunder shall be less than ten dollars($10.00), you may defer such payment,without interest, until the amount
payable to such party equals or exceeds the sum of ten dollars in which event, payment shall be made at the next regular set-
tlement date. You are hereby authorized to withhold from the proceeds of any and all runs made hereunder each interest own
er's proportionate share of any tax levied and assessed by any governmental authority on the oil received and purchased here-
under and to pay the same in our behalf.
FIFTH: Satisfactory abstracts or other evidence of title will be furnished to you at any time on demand. Upon failure to
furnish such evidence of title, or in the event of a claim or controversy which, in your opinion, concerns title to any interest
hereunder, you may withhold, without interest and without liability, proceeds of all oil received by you hereunder until you
have been furnished with indemnity satisfactory to you or competent evidence that such claim or controversy has been settled. In
the event any action or suit is filed affecting title either to the real property above described or to the production therefrom in
which any of the interest owners are parties, written notice thereof stating the court in which the same is filed shall be imme-
diately furnished to you by such owner against whom the action is commenced. Each interest owner agrees to hold you harm-
less and to protect and indemnify you against any and all loss, cost, expenses or liability which may arise from such suit.
SIXTH: Working interest owners and/or operators who execute this division order, and each of them, guarantee and war-
rant that all oil tendered hereunder has been or will be produced and delivered in compliance with all applicable federal, state
and local laws, orders, rules and regulations.
SEVENTH: No transfer of any interest or change in the right to receive payments hereunder, however accomplished, shall
be effective as to you until 7:00 A.M. on the first day of the calendar month in which you are furnished a proper division or
transfer order together with proof satisfactory to you evidencing such transfer or change in the right to receive payments here-
under, and you are hereby relieved of any and all liability for payments made prior to receipt of a proper transfer order and a
certified copy of the instrument of transfer.
EIGHTH: This division order shall remain in full force and effect until cancelled by any party hereto upon giving sixty
days written notice in advance of any such cancellation which shall be mailed to the respective parties at the addresses shown
herein. Cancellation by any interest owner or owners shall not be effective as to the interests of any other owner.
SP276
EXHIBIT "A"
LEASE NO. 55677
OWNER
NO. CREDIT TO DIVISION OF INTEREST
ROYALTY INTEREST
53704 The Windsor Reservoir and 12. 50% of 1. 70/40 . 0053125
Canal Company
56159 Richard H. Schlagel and 6. 25 % of 34 . 85/40 .0544531
Joanne M. Schlagel, T/C
6316 Wm. A. Schulte . 22208% of 34 . 85/40 . 0019349
53722 The Colorado National Bank of . 35251% of 34. 85/40 . 0030712
Denver, Trustee
53724 Mason Haire . 28201% of 34.85/40 . 0024570
56160 Lloyd E. Graybiel and . 28201% of 34 . 85/40 . 0024570
Jessie C. Graybiel, J/T
53726 Norman J. Holter 1.41004% of 34. 85/40 . 0122850
5141 E. Warren Willard . 35251% of 34. 85/40 .0030712
53714 Joseph L. Raichle . 17626% of 34. 85/40 . 0015357
53718 Laerence Oil Company . 35251% of 34. 85/40 .0030712
56161 Josiah G. Holland and . 35251% of 34. 85/40 .0030712
First National Bank of Nevada
Trustee
53719 Eleanor I. Johnson 2 . 22081% of 34. 85/40 .0193488
53727 Thomas P. O'Rourke . 17625% of 34. 85/40 . 0015356
53723 County of Weld 12. 50% of 3. 45/40 . 0107813
OVERRIDING ROYALTY INTEREST
53704 The Windsor Reservoir and . 0004250
Canal Company
53705 Conley P. Smith . 0008500
53706 George H. Fancher, Jr. . 0008500
7376 Orville L. Sandberg . 0036720
53707 Leonard J. Caranna, Trustee . 0036720
53708 Robert Gensch . 0104846
19938 The Marlin Oil Company . 2487715
NOTE : THIS EXHIBIT IS MADE A PART OF THIS DIVISION ORDER AND
SHOULD NOT BE REMOVED:
(Continued)
EXHIBIT "A"
(CONTINUED)
WORKING INTEREST
14630 N. L. Koin . 6019752
14630 N. L. Koin (Unleased Portion) . 0036855
19938 The Marlin Oil Company . 0012285
(Unleased Portion)
NOTE : THIS EXHIBIT IS MADE A PART OF THIS DIVISION ORDER AND SHOULD
NOT BE REMOVED:
(2)
TELEPHONE S73-1921
THE MARLIN OIL COMPANY
DENVER CLUB BUILDING
SIB 17TH STREET
DENVER,COLORADO 80202
July 21, 1976
RE : #3 Denny-Schlagel
Dear Interest Owner:
Enclosed are two copies of a Division Order,
from Western Crude Oil, Inc . , covering your interest
under the subject well.
If the interest set forth in the Division Order
meets with your approval, please execute and return
one copy to our office. Be sure to include your
mailing address and Social Security or Tax I .D. num-
ber. We have included a self-addressed, stamped
envelope for your convenience .
If you have any questions relative to the above,
please feel free to contact our office.
Very truly yours,
2-A /it /,
Kathleen Sedgwick
Land Manager
KS/s
Encls .
WELL CIINYY COMMISSIONERS
oEC It E
JUL 261976
GREatY• Coto.
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