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RESOLUTION
RE: AUTHORIZATION FOR CHAIRMAN TO SIGN OIL AND GAS DIVISION
ORDER FOR MACEY AND MERSHON OIL, INC. CONCERNING PROPERTY
LOCATED IN SECTION 30, TOWNSHIP 2 NORTH, RANGE 64 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 Macey and Mershon Oil, Inc. Said lease covers land
more particularly described as follows:
All that part of the Southwest Quarter
lying South of the Chicago, Burlington
and Quincy Railroad in Section 30,
Township 2 North, Range 64 West of the
6th P.M., Weld County, Colorado.
WHEREAS, Macey and Mershon Oil, Inc. has submitted an Oil
and Gas Division Order on the subject property.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Com-
missioners of ?weld County, Colorado that the Chairman of the
Board is hereby authorized to sign said Oil and Gas Division
Order on behalf of Weld County, Colorado.
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.
BOARD OF COUNTY COMMISSIONERS
ATTEST:'11;2,44- �° r`^« r=' WELD COUNTY, COLORADO
Weld County Clerk and Recorder ` .��� -f (Aye)
and-E erk to the/p d C. W. Kirby, Chairman
By ����1/� � { z" Y�su-:.t 4. /`�C (Aye)
_._ 'Deputy Couri y Jerk Leonard L. Roe, Pro-Tem
APPR77,6
- AS TO ORM: 7 -r^'�.�..a. (Aye)
dNorman Carlson
''
County Attorney (Aye)
1:ief)untard1"IlLii—
ABSENT
June K. Steinmark
LEoo7-3 DATE PRESENTED: DECEMBER 15, 1980
!;
800005
DIVISION ORDER AND RATIFICATION
MACEY & MERSHON OIL INC. STARKS UNIT
Suite 1950 Lease No. CO-020-030
1600 Broadway Effective first date
Denver, Colorado 80202 of sales
We, the undersigned, and each of us, hereby certify and warrant that
we are the legal owners of portions, as set forth or designated below, of the
proceeds derived from the sale of oil, natural gas, casinghead gas and other
gaseous or vaporous substances (including condensate and distillate) allocated
or attributable to the following land located in the County of Weld, State of
Colorado:
Township 2 North, Range 64 West, 6th P. M.
Section 30: All that part of the SW'a lying
South of the Chicago, Burlington
and Quincy Railroad
under Oil and Gas Lease dated April 27, 1977, recorded in Book 796 at Reception
No. 1718197 in the records of said County.
You are hereby authorized to deliver and sell said oil and gas on the
terms hereinafter stated and, until further notice, to credit the purchase
price thereof, as follows:
Division and Kind of Mailing Address and
Credit To Interest Taxpayer Account Number
Board of County 1/8th (royalty) Weld County Centennial Center
Commissioners 915 - 10th Street
Weld County Greeley, Colorado 80631
Colorado ID # 84-6000-813
And, we, the undersigned, for an adequate consideration, the receipt
of which is hereby acknowledged, hereby ratify, confirm and adopt said Oil and
Gas Lease referred to above and grant, lease and let unto the present record
owner or owners of said lease, the above described land and any and all other
land now covered by said lease as to all interests held or claimed by us in and
to the oil, gas and associated hydrocarbons in, on and under said land, for the
exploration for and production of oil and gas and associated hydrocarbons,
subject to the terms and provisions of said lease (and, if said lease has been
or is hereafter amended, as amended) .
And we further agree that:
1. Crude oil and gas delivered and sold attributable to the above
described lease shall be paid for upon your receipt of proceeds from the sale
thereof (less any tax which you may be required to pay with respect to such
oil or gas or the proceeds thereof) by check mailed to us at our respective
address during the next following month.
2. The delivery and sale of gas attributable to the hereinabove
described land is subject to all the terms of the gas purchase or sales agree-
ments and any amendments, modification or supplements thereto under which
delivery and sale of gas is made. The purchase price of said gas shall be the
price designated therefor in said agreements (or average price if more than
one) , subject, however, to all applicable laws, rules and regulations of any
governmental authority having jurisdiction or purporting to have jurisdiction.
The price to be paid for any oil, distillate or condensate produced from gas
shall be the net amount realized from the sale thereof.
3. In the event of a question or dispute at any time concerning
title to the property or as to the right of any party claiming hereunder to
receive payment for the oil or gas, you may withhold the proceeds of the oil
or gas from the interest so affected without interest until indemnity satis-
factory to you has been furnished or the question or dispute finally and
conclusively determined. If suit is filed affecting the interest of any of
the undersigned, the party or parties affected agrees to indemnify you against
loss or damage by reason of any judgment rendered therein and to reimburse
you for expenses necessarily incurred by you in connection therewith.
4. You are hereby relieved of any responsibility for determining
the amount payable when any of the above interests shall increase, diminish,
be extinguished or revert to any other party or parties as a result of the
completion or discharge of money or other payments from said interests or as
a result of the increase or decrease in production or any other contingency
until notice in writing thereof shall have been received by you.
5. You shall not be bound by any sale or assignment of any interest
in said oil and gas proceeds thereof until you have been furnished with a
certified or photostatic copy of the recorded instrument evidencing such con-
veyance or assignment, together with your regular Transfer Order properly signed
by Transferor and Transferee, it being understood that any such vendee or
assignee shall take such interest subject to the terms hereof and that any
such Transfer Order shall take effect as of the first day of a calender month.
6. This instrument shall become valid and binding on each interest
owner as soon as signed by him or her, whether or not any other of the interest
owners have so signed. The rights granted hereunder to you may be assigned
or conveyed by you to another party or parties. This instrument insofar as
it constitutes a division order may be terminated by written notice of termi-
nation by any interest owner given to you at least thirty (30) days prior to
the effective date of such termination, but no such termination by any one
or more interest owners shall affect this instrument in any respect as to the
other interest owners.
7. The Oil and Gas Lease or Leases and any and all unitization or
pooling agreements or declarations, together with any amendments thereto or
modifications thereof, under which the oil and/or gas covered by this instrument
are produced, and the gas purchase contracts, as ratified, supplemented or
amended, under which the gas is sold, are hereby ratified, adopted and approved.
8. If the proceeds accruing to any interest hereunder should amount
to less than ten dollars ($10.00) per month, you are hereby authorized to make
payment for such accruals on an annual basis, such payment to be made during
the month of December of each year for such amount as may have accrued here-
under up to 7:00 o'clock a.m. on the 1st day of November of such years.
9. If any royalty interest hereunder shall become subdivided, you
shall have the right to require the written designation of a common agent to
receive payment for the several holders of the subdivided portions thereof
and you shall not be required to make payment for the subdivided interests
until such designation is furnished.
This instrument shall be binding on us and our heirs, devisees,
legal representatives, successors and assigns and shall inure to the benefit
of you and your successors and assigns.
ri
Executed as of the /���"�- day of /L[7ftc,vr i e4 / , 1980.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
E.
ATTEST:
Weld County Clerk and Recorder
and Clerk to the Board
/ 1012/12404./
By
(� h
l// STEM IA3;i ABSENT
Li
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Oil and Gas Division Order
Property described as. STARKS UNIT
Township 2 North, Range 64 West, 6th P. M.
Section 30: W1
in Weld County. State of Colorado . and
commencing with First Runs.
Credit To(Name of Owners Division of Interest
1) RUSSELL L. GURTLER and 1/8 of } of 149.20/301.68 0.0309102 LOR
EVA M. GURTLER, as
joint tenants
2) RUSSELL L. GURTLER, JR. 1/8 of } of 1.04/301.68 0.0002155 LOB
3) THE FIRST NATIONAL BANK OF 1/8 of § of 150.24/301.68 0.0311257 LOR
DENVER and ELIZABETH
McCLINTOCK NIKOLORIC,
CO-SUCCESSOR TESTMENTARY
TRUSTEES UNDER THE WILL
OF T. E. McCLINTOCK, Dec'd.
4) WILLIAM R. GRAYBILL and 1/8 of 1, of 2.21/301.68 0.0004579 LOR
SHIRLEY L. GRAYBILL, as
joint tenants
5) ROBERT M. HARTSHORN and 1/8 of 12 of 133.91/301.68 0.0277426 LOR
DOROTHY E. HARTSHORN, as
joint tenants
6) DANIEL COOPER and PETER 15% of 12 of 22.59/301.68 0.0056160 LOB
PRESS, as tenants in
common
7) HUSKY OIL COMPANY 30% of 12 of 16.02/301.68 0.0079654 LOR
8) ELMER G. WALTERS 1/8 of 12 of 11.87/301.68 0.0024591 LOR
9) BOARD OF COUNTY COMMISSIONERS 12.5% of 17.53/301.68 0.0072635 LOR
WELD COUNTY, COLORADO
10) TERRA RESOURCES, INC. 171% of 3/8 of 4 of 150.24/301.68 0.0163410 ORR
11) EASON OIL COMPANY 17,% of 1/8 of 12 of 150.24/301.68 0.0054470 ORR
12) HUSKY OIL COMPANY OF DELAWARE 171 % of 3/8 of 12 of 150.24/301.68 0.0163410 ORR
13) DEVON CORPORATION 171 % of 1/8 of 12 of 150.24/301.68 0.0054470 ORR
14) BARBARA JEAN MACEY 7% of is of 1 of 172.83/301.68 0.0100256 ORR
15) AMOCO PRODUCTION COMPANY 17.5% of 17.53/301.68 0.0101689 ORR
16) W. B. MACEY 0.3389176 WI
17) PAUL M. MERSHON, JR. 0.3489432 WI
18) BALANCE - OTHER OWNERS 0.1346128
1.0000000
ORR - Overriding Royalty Interest WI - Working Interest
LOR - Land Owner ' s Royalty PP - Production Payment
0
October 30, 1980
Board of County Commissioners
Weld County Centennial Center
915 - 10th Street
Greeley, Colorado 80631
Re: Oil and Gas Division Order
STARKS UNIT
Weld County, Colorado
a
DEAR ROYALTY OWNERS:
Enclosed are two copies of an Oil and Gas Division Order for your signature(s) ,
together with a letter of instructions.
Please sign both copies of the Division Order as your name(s) appears on the
back side, set forth your Social Security number(s) and return one fully
executed copy to us in the enclosed envelope.
You may keep the other copy of the Division Order for your file.
Disbursement of your share of the proceeds on the captioned well will be made
shortly upon receipt of all of the signed Division Orders (if not being held
in suspense pending satisfaction of title requirements) .
If you have any questions concerning this matter, please do not hesitate to
contact us.
Very truly yours,
MACEY & MERSHON OIL INC.
otb
James A. Brown
Lax Manager ,h("
Enclosures L\�. �':��
MACEY & MERSHON OIL INC.
SUITE 1950 • 1600 BROADWAY • DENVER,COLORADO 80202 • (303) 861-9183
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1 MAR1ogee
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fia"./C Wili$law*,C186•Q Rama„ 11
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STATE O/ COICRADO
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COUNTY 0! 1UID
e ASSIGNILENT
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KNOW ALL MASONS BY THESE PRESENTS:
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THAT, in consideration of the sum of One Dollar ($1.00)
and other good and valuable considerations, the receipt
o and the sufficiency of which are hereby ackrovleJgell, Anna
PRODUCTION CCINPANY, a Delaware corporation, whose mailing
address is Security Life Building, Denver, Ctl.oradc' $0202,
hereinafter referred to as •Assignor," hereby does bargain,
sell, assign, transfer and convey unto W. B. MA.CFY sad PAUL M.
MERS$ON, JR., whose sailing address is Suite 1049, 1600 Broadway,
Denver, Colorado 80202, hereinafter refer.re.i tc as `Assignee."
all of its right, title and interest in " following
described oil and gas lease:
Lessor: Weld County
Lessee: Amoco Production company
Date: Ap:`1
Recorded: Bot:k 796. Re'epti,-:n No. 1718197
of the i _c.r t•a c.t weld County,
Co:•.:rado
insofar as they cover the ••:1 and gas mine. a; •i l'is 1 ring
in and under the following des,-.I .,r; lase: !r: sa:n County
and State, to w:t:
Towns p 2 North Range 64 West
Sectl � At7�Eayt party the '.t+:4 :y,..g sc.o!h:
of the Chicago, 8ur.1;"tltor, a.: Quincy
Railroad.
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1.819153
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hereinafter Sometimes being referred to as the 'lease acreage,
subject to the following terms covenants and conditioner 40
1. The lease acreage covered hereby is assigned by
Assignor and accepted by Assignee subject to the overriding
royalties, irrueluut'on payments, new. ;,cofits obligations,
• - carried working interests end other payments out of or with
respect to production vhict- are ,q re,.:Ird and with which
said lease acreage is encumbered; a:d A: . •1: 'e r;e-eby assumes
and agrees to pay, perform or carry es tt• •aye mey be,
each of said over r l i ng royalties. . ,- ;Cue' . . lyreents,
net profits obligations, carried w•' . king interests and other
psynents out of or with respect t yryluct:on to the extent
that the same are or resale a :.ureter •.n tt^ •nine acreage
herein assigned.
1. Assignor '>ereby r cepts i d reserves unto itself,
its successors or asstgna, • •:r, f I; wing aver. idssy royalty r
:a1 it'.trt,+ tierce' `1 .:gr.t•eigntr..r iJO% of s/8)
of the proceeds •f !`,e se,:e• of i t!,..: of the market
values. it the well of a:: -jam produr'•. and saved frost
the la•ase a.tresgr thtu,:gh .. 1r•a' *Cl. r las wells lo'ated
upon said leas* acreage. . ::h:. •e° Sara to the
Assigner :roe o! e.l erns • . w: .'Script :axes
en production;
(03 Thirty p,rce'.t " •1'a.:.•' :) 1')% of 4/9)
Of a_1 condensate and 'tat ptoiucr'! •snr! saved
'iron the lease acreage thi .,:+i' .+ was we.. : ."r gas walla '
or through a gas dleti,late t:•.til'ate
wells located upon said .sans, n Grail
be deftvareA Gres c•t At; .at sr..! . er,•;.• exrept tezea
em production. at .t•,r F. ,i „s rr .:>f Ron .l Lease
etreege Or, +t t se ass •lr ,s ' a "r. credit
of the Assigner ,nro t'r „1. . t .std veil
Of wells sat' be e:or.nr. •n,a:
(C) T11tty p*:c• . , set 't r.:
et all a.1 chit .tner psi•' + :•• ; 4•.•«n ono
Greed Iran the leans a rem yon . .u•g• . •. ••..i or
oil wells located spoon marl . sK+ . •'h , rrich shall
be dell,ar:d free of is. cos' !Pe ••••• . •swim'st taxes
ee production. at the vr. ,:r -s ;d ienee
acreagle or r at the Ass.g:'w . '. ; • . ' • r:edit
Of th/ Aesigeor into I •e yllr, ;•n . rh. •a: '. 11,11
el wens may am oceanic.ads sq.!.
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J919159
8.3
(d) Thirty percent of eight-eighths (30'i of 9/8)
of the proceeds of the sale or if no sale of the market
value, at the well, of all casinghsad ,as produced
and sewed from the lease acreage through an oil well
1 or oil wells located upon said lease acreage, which
shall be paid to Assignor free of all cost and expense,
exec : taxes on production!
provided, that, at its election, Assignee shall be, and •
1
is hereby authorized to pool and combine the lease acreage,
or any portion thereof, with other leases and lands, or
interests therein, so as to form a consolidated unit, but,
in the event said lease acreage, or any portion thereof,
shall be pooled and unitized by Assignee with other leases
and lanus, or interests therein, whether voluntarily or
by appropriate order of governmental authority, so as to
form a consolidated unit, a proportionate part of all produc-
tion from said consolidated unit, without regard to the
location of the well or wells within said consolidated unit
from which produced, equal to that proportionate part thereof
which the aggregate number of surface acres in said lease
f acreage included in said consolidated vn it bears to the
aggregate number of surface acres in oil of said consolidated
unit, shall be treated as though produced in its entirety
from said lease acreage, or poetic top included in
said consolidated writ; aged 'he, ovtr: . royalty hereinabove
excepted and reserv'.ed 6 ., . he.. applicable to,
and shall constitute a '-urc'e against , sJch proportionate
part of said production from sad can r .dateo unit.
3. With respect t, - . .?v a: ri royalty herein
excepted and reserved t; % ;stgr.cr , nisi.; nor and Assig. ee
agree, as follows,
(a) That said overriding 'evalty shall extend
to any extensions or renewals he lease above described.
(h) That oil and gas leed .' irii' ing and opera-
tions nn said 'ease a:reaga and 're handling of
production therefroc vnall be dtr;+,- ^d before said
overridlnS royalty is ccmpated.
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1819159
(a) "Assignee shall furnish to Assignor
mahout!' i aid renthly reports of all production
from said acreage, seek reports to be mailed
not later t cthe date similar information is required
to be falai under State lave, rules and regulation
to the r y y body having jurisdiction.
• l'm(d) in the event the above-described lease
covers lees than all the oil and gas mineral rights
in the lease screen, said overriding royalty, insofar
an it portal* to oil, distillate, condensate, other
liquid hydreaarbons, gas and casinghead gam produced
and saved free the lease acreage shall be proportionately
reduced.
(e) that said overriding royalty shall include
and therefore be reduced by any existing
rcorded nlessor's
royalties, Overriding royalties, production payments,
net profits obligations and carried rotting interests;
the intention herein being that Assignor's effective
overriding royalty be the,difference between the
cumulative percent of existing recorded lease burdens
and thirty percent.
4. As to any wells which Assignee proposes to drill
on said lease acreage after the delivery of this assignment,
Assignee shall give Assignor notice thereof prior to commencing
the actual drilling of any such yells, shall permit Assignor
to have access to said wells and the derrick floors thereof //
at all reasonable times; upon request of the Assignor, shall
furnish to Assignor well samples of all cores and cuttings
consecutively taken, unless Assignor elects to take such
samples itself and, at the request of Assignor, Assignee
shall furnish to Assignor copies of any electrical well
formation surveys made.
5. Assignee shall not surrender, let expire, abandon,
release, or fail to maintain by proper payment of delay
rentals, royalties, shut-in gas well royalties, operations,
or otherwise as may be-necessary to maintain the interests
of both Assignor and Assignee hereunder, all or any of its
rights in said Lease Acreage, or any part thereof, unless
Assignee has given Assignor written notice thereof at least
thirty (30) days prior to such surrender, expiration, aben-
demment, or release, or to the time such payment, operations '
b.
eV°tt 8.97 1819159
•
er other it* is millmetate to Maintain said rights, and
thereat . if ssgoeglibM M to do by Assigner, hostiles
shall lately rebgtge stab tights in said lease heritage.
or ouch Ott thereof, be Assignor. In the event Assignee
fails or 'Saban to deliver a reassignment to Assignor es
provided herein, Assignor may execute and record a document
relating sthe facts and describing the title involved, and
upon the filing of such document %n the County records where
the Lease Acreage is located, all rights granted hereunder
to ►ssignee shell terminate absolutely and shall revert
• to and feast in Assignor. All provisions herein with
regard to reassignment to Assignor are in addition to and
•
not in lieu of other rights of Assignor t-rreunder. In the
event any rights in the Lease Acreage revert cr are assigned
to Assignor under the provisions of this paragraph, the
sue shall be free and clear of any and all overriding
royalties, production or other payments, and other interests
or rights acquired from and under Assignee, all of which
shall be acquired subject to this limitation, and shall
be extinguished and terminated upon such reversion or assignment.
• In no event shall Assignee be relieved of any obligation
which accrued prior to the date of such reversion or retransfer.
and Assignee shall indemnify Assignor for and told Assignor
hornless from all claims and causes of action whatsoever
arising as the result of or in connection with Assignee's
operations on the Lease Acreage. n .
6. This assignment is side subject to all the terms -.
express and implied covenants and conditions of the above
described lease, which urns, covenants and conditions
Assignee hereby accuses and agrees to perform with respect
to said ell and gas mineral rights lying in and uader said
laud, paavided, that, sales* Assignee should elect to surrender,
let ospire, abandon or release its rlibts in said lease
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1819159
1.6
star .8168,86. Salaam hereof r�lstiwe
f•MdwtaeO iER1Ytt Mimipti
fete.*
`x00 Ills .itplutlpfee art, AlseaMili00. Sufis eatd le
shat-in ve royalty Monate shall be dee and payaile Mitt
Weepest to. mmet-ie gas toll ar wells athervise capable
• si{ probed framer salt e t vith the lease aorp$I, and
these shalt/be M obiigeties co the part of Assignor to
reimburse psigese for all or say portion of said Shut-in
gas well royalty payments so paid by Assignee. Said terns,
covenants end coeditions, insofar as the lease acreage is
oos erned,. shalt be binding es Assignee, net only in favor
of the lessor and his heirs, sucosesore and assigns, but
else in favor of Assignor and its snare00015 and assigns.
7. Assignor nd excepts unto itself, its
successors and assigns, the option and the exclusive right
at any time, at all times and from thee to tine to purchase
all oil, gas, casinghead gas and other hydrocarbons produced _
and saved from said lease acreage. Paynent to Assignee -
for any oil, distillate: condensate and other liquid hydro-
carbons purchased by Assignor hereunder shall be made .c
the prevailing price for production of similar kind and
quality prevailing in the field where produced on date of
delivery. Payment to Assignee for gas and casinghead gas
purchased by Assignor hereunder shall be sadr, at the wellhead \ i
• pries andel contracts for the sale of production of stellar
kind and quality prevailing in the field at the tine such
option and right initially is exercisedh provided, that,
if Assignor shall contract for the resale of such gas and
easingheed gas at the wellheaJ, such payment shall be based
ape the net proceeds accruing to Assignor at the wellhead
„gnat such contract. It is cnderutooai and agreed that the
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Its±9159
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right to "Mrehase hereby reserved and excepted mar be assigned
by Aaeig$ at say tine, at all tin** and free tie to time ...8
vltheet $hitatione
S. -fills assignment is made without warranty of any
kind, eir express or iaplled.
9. ': All notices, reports and other communications
a required le permitted hereunder, or desired to be given
with septet to the righ,s or interests herein assigned
or retetpsd, *ball be deemed to have been properly given
or dallsAESJ when delis .. .d pa -ons.ly or when sent by
register"' mail or telegraph, with all postage or charges
fully E-speed, and addressed to Assignor and Assignee, respectively,
as fc .lees
Assignors Amoco Production Company
Security Life Building
rsnvr-, Colorado 80202
Attentions Southern Division Landman
Assignees w. S. Macey and Paul M. Mershon, Jr.
Suite 1040 •
1600 &roadway
Denver, Colorado 80202
.t,
10. The terns, Covenants and ronuicions hereof shall ,
to bindles upon, and shell inure to the benefit of, Assignor
and Assignee and thei,: respective successors slid assigns;
and sores terms, covenants and conditions stall be covenants
• running with the land above a scribed, the lease acreage
herein aas$gned and with each transfer or assignment of
, aid land or lease acreage.
10 RATS AID 10 MOLD said lease strewn; unto Assignee,
I Its seesessers and assigns, subject to the terns, covenants
and coalitions hsreinebova set. forth.-a,
R 0TSD tbierapat._ day of h. °"'� '1- , 1980. , . -
Its, rttoraey-in-yslt
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1815153 . . > n
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MS iMMK1igMd a tary P o ;e;lhia and for
the Mate. "1f day of . 1lPOr
...Sated • r 'M
a tin 'dint as t imam *it is
rent, t1N iaetnsat as attorney-in-Pact a1V09.INIPOOCTidit •
e Delaware cerporatios, an4 aaanovl to a.
that ":executed the sans as tits trite and vol tarp art
and. eMid. an the free and voluntary act aad deed of
• Cni C0MPaMY for the uses and perprses therein
set tb.
11 4ieefleer %irzater, I hese Pereunto set try hand and
offtcial seal the day aid year last above written.
0•aty' ay�
My Omission °settees
i. r,., MISSexpuel at?3, 1913
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