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HomeMy WebLinkAbout800011.tiff RESOLUTION RE: AUTHORIZATION FOR CHAIRMAN TO SIGN ENERGY MINERALS CORPORATION OIL AND/OR GAS DIVISION ORDER CONCERNING PROPERTY LOCATED IN SECTION 31 , TOWNSHIP 4 NORTH, RANGE 61 WEST OF THE 6TH P.M. , WELD COUNTY, COLORADO. 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, Weld County, Colorado is the holder of a certain lease with Energy Minerals Corporation. Said lease covers land more particularly described as follows , to-wit: The Southeast Quarter of Section 31 , Town- ship 4 North, Range 61 West of the 6th P.M. , Weld County, Colorado. WHEREAS, Energy Minerals Corporation has submitted an Oil and/or Gas Division Order on the subject property, and WHEREAS, the Board deems it advisable to authorize the Chairman to sign said Oil and/or Gas Division Order. NOW, THEREFORE, BE IT RESOLVED by the Board of County Com- missioners of Weld County, Colorado that the Chairman of the Board be, and hereby is, authorized to sign the Energy Minerals Corporation Oil and/or Gas Division Order concerning the above described property. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 10th day of December, A.D. , 1980 . (rL sM � t; ,8"T+' BOARD OF COUNTY COMMISSIONERS ATTEST: Tf WELD COUNTY, COLORADO Weld County Clerk and Recorder and Clerk to the Bo rd /- C. W. Kitby, Chairman ( 17: ___ _ J CcN fiu-vu0, Pen, Deputy County erk Th onard L. Roe, Pro-Tem A P ED AS TO F is /�/ Norman Carlson County Attorney I Dunbar L"41 ABSENT June K. Steinmark j c ii L ` ' ' "° DATE PRESENTED: DECEMBER 10 , 1980 800011 —. Lease No. COWL032400 ENERGY MINERALS CORPORATION OIL AND/OR GAS DIVISION ORDER TO: ENERGY MINERALS CORPORATION August 13 , 19 80 1000 Security Life Building Denver, CO 80202 The undersigned, individually, guarantee and warrant that they are the legal owners, in the proportions set out below, of the proceeds of all oil (defined as crude oil, condensate, and other liquid hydrocarbons) and/or gas (defined as natural gas and casinghead gas) produced from the #1 Allstate lease, described as: Township 4 North, Range 61 West, 6th P.M. , Weld County, Colorado Section 31: SEA containing 160 acres, more or less in Weld County, State of Colorado , and commencing as of 7 a.m. , the _day of , 19 or commencing with the first delivery of oil and/or gas from said lease and, until further written notice, from ENERGY MINERALS CORPORATION (Energy) or from the undersigned, Energy is authorized to distribute to the undersigned, in the proportions set forth below, the net proceeds received by Energy from the sale of oil and/ or gas from the well or wells now or hereafter located on said lease, subject to all the cove- nants of this division order. CREDIT TO OWNER DIVISION OF POST OFFICE NUMBER INTEREST ADDRESS County of Weld, 12.5% (RI) Board of County Commissions a body politic and corporate Weld County Centennial Cent 915 - 10th Street Greeley, CO 80631 HOBE, INC. of WYOMING 9.5% (ORI) 1580 Lincoln St. , #1200 Denver, CO 80203 Energy Minerals Corporation 78% (WI) 1000 Security Life Building Denver, CO 8070? The following covenants are also parts of this division order, and shall be binding upon the undersigned, their successors, legal representatives, and assigns: 1. Energy is authorized to deliver and pass title to the oil and/or gas unto any agent, carrier, or purchaser (including Energy itself) designated by Energy. 2. Oil shall be graded and measured in accordance with the customary rules and regulations or standards generally accepted in the industry. If oil is purchased by Energy, settlement shall be based on Energy's posted or quoted price in effect on delivery date. Energy is authorized to reduce such price by any charges for transporting oil and any • treating costs which, in Energy's opinion, are necessary to make the oil merchantable. If oil is sold by Energy to another purchaser, settlement shall be based on the net proceeds realized at the well by Energy from such sale, after deducting any costs for transporting or treating the oil for delivery. 3. Settlement for gas sold shall be based on the net proceeds realized at the well by Energy after deducting any costs incurred in compressing, treating, transporting and/or dehydrating the gas for delivery. If the gas is processed, settlement shall be based on the net proceeds realized at the well, as determined by the agreement between the producer and processor, or, in the absence of such an agreement, the same basis as settlement with other producers of gas of like kind and quality processed at the same plant. 4. Settlements and payments shall be made monthly for oil and/or gas received and purchased during the preceeding month (except that payments of less than $10.00 will be deferred until the amount due equals $10. 00 or more; provided that, regardless of the total, payment of the accumulated amounts shall be made in December of each year) by check mailed from Denver, Colorado, to the respective parties at the address given above, for the amount of such purchase price due said parties respectively. Energy shall have the right at its option to pay or arrange for the payment of production, severance, and other taxes applicable to oil and/or gas produced, delivered, and sold for the interests of the undersigned, and to deduct such taxes paid from settlements made hereunder. 5. The undersigned agree to furnish Energy satisfactory abstracts and other evidence of title, and in case of failure to do so, or in case of any adverse claim or dispute of title to the oil and/or gas sold hereunder or to the land from which produced Energy is authorized to hold the proceeds as aforesaid until such defect of title is corrected or such adverse claim or dispute is fully settled and determined to the satisfaction of Energy, unless indemnity acceptable to Energy shall be furnished. In the event any suit is filed affecting any of the interests of the undersigned in the above described land or affecting any interest of the under- signed in the production or to the proceeds therefrom, the owners of the interests so affected agree to hold Energy harmless from judgment rendered in such suit, and all reasonable costs and expenses incurred in defending against such claim, and from all liability for loss, cost, damage and expenses which Energy may suffer or incur on account of receiving and paying said owners the proceeds apportioned hereunder. 6. Energy is hereby relieved of any responsibility for determining when any interest shown above shall change by increase, decrease, termination, reversion or otherwise. Energy is authorized to remit pursuant to the division of interest shown above until written notice to the contrary is received by Energy and Energy shall be held harmless against loss or liability due to Energy's failure to receive such notice. Each of the undersigned agrees to notify Energy in writing of any change in his interest, and no transfer of interest shall be binding on Energy until Energy is furnished the original recorded instrument (or a certified copy thereof) or a transcript of proceedings which satisfactorily evidences such transfer, and Energy's regular form of Transfer Order is fully executed and returned to Energy. Regardless of the effective date of the transfer, all transfers of interest shall be effective hereunder as of 7:00 a.m. on the first day of a calendar month, but not earlier than the first day of the calendar month in which such written notice is received. 7. In the event the land described herein, or any part thereof, is included in one or more units now or hereafter formed or revised by order of any appropriate governmental authority, or is included in one or more authorized voluntary or declared units now or hereafter formed or revised, it is agreed that settlement shall be made in accordance with the production allocated to said land without the execution of additional division orders. 8. Each working interest owner warrants that the oil and/or gas has been produced in accordance with all applicable laws, rules and regulations. 9. This division order may be executed in counterparts, and shall be binding upon and inure to the benefit of all the undersigned, their heirs, successors and assigns, whether or not it is signed by all parties named herein. Any of the undersigned owners may terminate this division order in its entirety as to its interest effective thirty days after receipt by Energy of said owner's written notice as hereinbefore provided. 10. Energy reserves the right to assign its interests, or operations, and to appoint an Agent to make payments due hereunder, and this division order shall inure to the Assignee of Energy, or to any person appointed by Energy to make payments hereunder, without the necessity of the execution and delivery of a new or substitute division order, with the same rights vested in such Assignee or Agent as are vested in Energy herein. SOCIAL SECURITY NUMBER OR TAX I.D. NUMBER: ?"7 - OCJ0C> - O WITNESS (There must be one witness to each signature) OWNERS SIGN HERE OR ATTEST: n fryiaut.8,2 fat R 'LTV STEINMAR ABSENT WI ENERGY MINERALS CORPORATION OIL AND GAS EXPLORATION August 13, 1980 RE: Division Order Dear Interest Owner: Please examine the enclosed instrument indicating your division of interest. Upon your approval, please insert your social security or taxpayer iden- tification number, sign one copy and have your signature witnessed or attested, and return it to this office promptly in order that we can place your interest in line for payment. The extra copy of the instrument is for your records. The lease number assigned this lease is in the upper margin of the attached instrument. When directing inquiry to this company concerning your interest, always refer to the lease number for identification purposes. Please check the spelling of your name as shown on the instrument and indicate your correct mailing address. Yours very truly, ENERGY MINERALS CORPORATION Joh W. Julander Vice President JWJ:pas p �a1AQSV0Ist Enc. Osk 0 \`0.01 41 /t) 1000 SECURITY LIFE BUILDING • DENVER, COLORADO 80202 • (303) 629-7334 Hello