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GAS DIVISION ORDER
TO : DUKE ENERGY FIELD SERVICES , INC . Lease No . 541A
(fka PanEnergy Field Services , Inc . )
PO Box 5493
Denver, CO 80217 Date : May 21 , 2002
The undersigned , and each of us , certify and guarantee that we are the legal owners of and hereby warrant the
title to our respective interests in the proceeds derived from the sale of Gas produced and saved from the
SCHANK J35- 02 , located in the County of Weld , State of Colorado , more particularly described as follows :
Township 5 North , Range 66 West
Section 35 : N/2NE/4 LIMITED TO THE CODELL FORMATION
Owner No . Credit To Decimal Interest
See ` Exhibit A ' attached hereto and made a part hereof
Effective at 8 : 00 A . M . October 1 , 2001 and until further notice , you are hereby authorized to take or retain
possession of all Gas from said property ( ies ) on and after the effective day and to give credit as set forth above
for all proceeds derived from the sale of Gas from said property ( ies ) subject to the conditions , covenants and
directions set out below :
FIRST : It is understood that the Gas produced from the above-described property ( ies ) is being sold under a
gas purchase agreement ( s ) or gas purchase and processing agreement(s ) between the undersigned or the
undersigned ' s predecessor( s ) in the interest , as " Seller" and Duke Energy Field Services , Inc . , or its
predecessor( s ) in interest , as " Buyer, " and that all terms and covenants contained therein , and in any
amendments , extensions , or renewals thereof shall govern and be binding upon the parties hereto in all
respects which shall include , but not be restricted to , the price to be paid for said Gas and the time when such
payments are to be made . As used in this Division Order, the term " Gas" shall be deemed to include
casinghead gas , gasoline and all other products which Duke Energy Field Services , Inc . receives and /or
recovers by processing from Gas produced from wells on said property( ies ) .
All 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 .
The undersigned expressly waive any claim against you for any and all amounts which may be due us from
others for production prior to the effective date hereof.
Signatures of Witnesses Owners ign Below Taxpayer ID Number or
( Enter ailingfdre - ) Social Security Number
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Clerk to je r .1..10, 1enn Vaal, ufl.i ( 05 / 29 / 02 )
11861
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TELEPHONE (Optional )
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Deputy Clerk to
the Board Address
TELEPHONE (Optional )
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Retain this copy for your records
2002- 1483
LEcD/6P- I
SECOND: Payments are to be ....de monthly by checks of Duke En :,yg Field Services, Inc. to be
delivered or mailed to the parties thereto entitled at the addresses above given, provided that if the
amount due any owner is less than twenty-five dollars ($25.00) per month, Duke Energy Field
Services, Inc., at its option, may defer the making of such payment until such time as the aggregate
amount due exceeds said sum. The undersigned authorizes Duke Energy Field Services, Inc. to
withhold from the proceeds of any and all Gas referred to herein the amount of any tax placed
thereon, or on the production thereof, including but not limited to any severance, production or
occupation tax, by any governmental authority, local, state and/or federal, and to pay the same in our
behalf with the proceeds so withheld.
THIRD: In the event of any adverse claim of title or in the event title shall not be satisfactory to Duke
Energy Field Services, Inc. at any time during the term of this Division Order, each of the undersigned
agrees to furnish complete abstracts of title and other evidence of title satisfactory to Duke Energy
Field Services, Inc. and authorizes Duke Energy Field Services, Inc. to withhold payment, without
obligation to pay interest on the amount so withheld, until satisfactory indemnity shall be furnished to
Duke Energy Field Services, Inc. against such adverse claims or any such defects in the title, or until
title shall be made satisfactory to Duke Energy Field Services, Inc. Each undersigned party, as to the
interest of such party hereunder, respectively agrees, in the event suit is filed in any court affecting
title to said Gas, either before or after severance, to indemnify and save harmless Duke Energy Field
Services, Inc. against any and all liability for loss, cost, damage, and expense which Duke Energy
Field Services, Inc. may suffer or incur on account of receiving and paying said party the proceeds
derived from the sale of said Gas. Where Duke Energy Field Services, Inc. pursuant to the provisions
hereof, withholds payment, or any part thereof, each undersigned party from whom payment is
withheld severally agrees to indemnify and hold Duke Energy Field Services, Inc. harmless of and
from all liability for any tax, together with all interest and penalties incident thereto, imposed or
assessed against, or paid by it on account of the sum or sums so withheld from payment to said
party, and deduct all such taxes, interest and penalties so paid it from any sums owing by it to said
party.
FOURTH: The undersigned severally agree to notify Duke Energy Field Services, Inc. of any change
of ownership, and no transfer of interest shall be binding upon Duke Energy Field Services, Inc. until
transfer order and the recorded instrument evidencing such transfer, or a certified copy thereof, shall
be furnished to Duke Energy Field Services, Inc. Transfer of interest shall be made effective 8:00
A.M. on the first day of the calendar month in which proper notice is received by Duke Energy Field
Services, Inc. Duke Energy Field Services, Inc. is hereby relieved of any responsibility for
determining if and when any of the interests hereinabove set forth shall or should revert to or be
owned by other parties as a result of the completion of discharge of money or other payments from
said interests, and the signers hereof whose interests are affected by such money or other payments,
if any, agree to give Duke Energy Field Services, Inc. notice in writing by registered letter addressed
to Duke Energy Field Services, Inc., P. O. Box 5493, Denver, Colorado 80217, Attn.: Division Order
Department, when any such money or other payments have been completed or discharged, or when
any division of interest other than that set forth above shall, for any reason, become effective and to
furnish transfer order accordingly, and that in the event such notice shall not be received, Duke
Energy Field Services, Inc. shall be held harmless in the event of, and is hereby released from, any
and all damage or loss which might arise out of any overpayment.
FIFTH: If any portion of the proceeds derived from the sale of Gas is subject to refund under any
order, rule or regulation of the Federal Energy Regulatory Commission or the provisions of the
Natural Gas Act or Natural Gas Policy Act of 1978, Duke Energy Field Services, Inc. may hold without
interest the portion of the proceeds subject to refund unless indemnity satisfactory to Duke Energy
Field Services, Inc. has been furnished, or until Duke Energy Field Services, Inc.'s refund obligation
has been finally determined. If any portion of the proceeds derived from the sale of Gas is paid over
by Duke Energy Field Services, Inc. under any order, rule or regulation of the Federal Energy
Regulatory Commission or the provisions of the Natural Gas Act or Natural Gas Policy Act of 1978,
Duke Energy Field Services, Inc. is authorized to recover the amount of the refund applicable to the
interest of each of the undersigned from future payments, or at Duke Energy Field Services, Inc.'s
election, it may therefore invoice the undersigned, plus the legal rate of interest Duke Energy Field
Services, Inc. is or may be required to pay in connection with the undersigned's portion of the refund.
SIXTH: This Division Order shall become valid and binding upon each and every owner above
named upon execution hereof by such owner regardless of whether or not any of the other above-
named owners have so signed. Each undersigned owner ratifies and confirms his oil and gas lease
as being in full force and effect as of the date hereof.
Exhibit A
541A- SCHANK J35-02
Owner No. Credit To Type Interest
111562 BARBARA ANN COX RI 0.02410990
49407 BONNIE KUNTZ RI 0.01446594
111563 CAROL L BRUNZ RI 0.02410989
111565 CONSTANCE M NELSON RI 0.02410990
49410 DANIEL C SCHANK RI 0.01446594
49409 GARY T SCHANK RI 0.01446594
49411 LINDA SCHANK GLIDWELL TRUST RI 0.01446594
WELLS FARGO BANK WEST,N.A.
49408 SANDRA ELDER RI 0.01446594
185047 TODD&RHONDA AMEN RI 0.01120000
185049 WELD COUNTY CLERK TO THE RI 0.01367188«Your Interest
BOARD AT WELD CNTY GOVERNMENT
29946 W G VAN BEBBER OI 0.00041000
15587 THOMAS G DOROUGH JR OI 0.00105917
36798 KERR MCGEE ROCKY MOUNTAIN CORP OI 0.00211833
F/K/A HS RESOURCES
29962 JANICE D SEARS O1 0.00128125
29954 WALKER MILLER OI 0.00128125
36798 KERR MCGEE ROCKY MOUNTAIN CORP WI 0.06560000
F/K/A HS RESOURCES
130023 PATINA OIL&GAS CORP WI 0.75871873
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INSTRUCTIONS TO ALL INTEREST OWNERS
DUKE ENERGY FIELD SERVICES, INC. HAS ENCLOSED A GAS DIVISION ORDER OR TRANSFER ORDER
FOR YOUR EXECUTION. IF YOU ARE RECEIVING A DIVISION ORDER FROM DUKE ENERGY FOR THE
FIRST TIME, PLEASE BE ADVISED THAT WE ARE THE NEW GAS PURCHASER. IF A TRANSFER ORDER IS
ENCLOSED WE ARE EVIDENCING CHANGES OF OWNERSHIP IN AN EXISTING WELL.
THE ATTACHED DOCUMENT SHOULD NOT BE 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:
1. Sign your name as shown on the Gas Division Order or Gas Transfer Order.
2. Have your signature witnessed by two competent witnesses.
3. If your name has changed due to marriage or divorce, execute the Gas Division Order or Gas Transfer Order
using your present name and furnish a copy of the marriage certificate or divorce decree.
4. If signing for a corporation, signature must be attested, corporate seal fixed and title of signatory party reflected.
5. 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 be furnished.
6. Gas Division Orders or Gas Transfer Orders for partnerships must be executed by all partners or by an authorized
partner. A certified copy of the instrument giving said partners authority to sign must be furnished.
7. Should you fail to provide your correct Social Security Number or Tax Identification Number, the law provides that
we withhold 31% of all production proceeds due you. You may also be subject to a further penalty levied by the
Internal Revenue Service.
8. Your correct mailing address should be noted in the space provided to insure prompt receipt of production
proceeds.
9. The top copy or the"Original" of the Gas Division Order or Gas Transfer Order should be returned to:
DUKE ENERGY FIELD SERVICES, INC.
P. O. BOX 5493
DENVER COLORADO 80217
DIVISION ORDER DEPARTMENT
10. Should you have any further questions regarding the enclosed Gas Division Order or Gas Transfer Order, please
contact your Operator or Duke Energy Field Services, Inc. at(303) 595-3331.
11. Please DO NOT DETACH the exhibit from the Gas Division Order or Gas Transfer Order if one is included.
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 for , legal description, and
percentage of royalties, if applicabl .
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BY: l
Cou Attorney
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DATE:
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