HomeMy WebLinkAbout20053354.tiff ONANZA CREEK OPERATING COMPANY LLC
cORROCKY MOUNTAIN OFFICE
C 1lfo OFFICE ' ` 116 Inverness Drive East,Suite 270
4900 Caeld.CA Avenue-Suite 350B (♦)C Englewood,CO 80112
P.O.B 21974 1 93309 ' - P.O.Box 3589
P.O.Box Parker,CO 80134-1437
Bakersfield,6 93390 www.6onanzacrk.9om Office: 720/729-2330
Office: 661/638-2730
Fax: 661/638-2733
October 18,2005
Weld County Board of Commissioners
915 10`s Street
Greeley,Colorado 80631
RE: Weld County#22-15 Well, SENW 15-T5N-R61W / e Oe1
Pronghorn 12-9 Well, SWNW 9-T5N-R61W- 6m� �3
Pronghorn 14-4 Well, SWSW 4-T5N-R61W' 'LC4.1'
Pronghorn Area,Weld County, Colorado
New Operator—Bonanza Creek Operating Company,LLC
Dear Commissioners:
Please be advised that effective July 1, 2005,CFG Energy,Inc. assigned all of its right,title,and interest
in the captioned wells to Bonanza Creek Operating Company,LLC. Closing occurred August 31,2005
and Duke Energy Field Services,Inc., and Frontier Oil and Refining Company,purchasers of the gas and
oil produced from said wells have been advised that all proceeds should be sent to Bonanza Creek for its
distribution to the royalty owners.
Therefore,enclosed, for your signature and review,please find duplicate originals of the Oil and Gas
Division Order form,which sets out your interest in the above referenced wells. If any of the information
contained therein is incorrect or incomplete,please make the necessary changes and initial.
Also enclosed for your completion is Form W-9,Request for Taxpayer Identification Number and
Certification. This form is required by the Department of Treasury, Internal Revenue Service and must be
completed before any funds can be released.
Please sign both originals,retain one copy for your records,and return one to the undersigned in
the self-addressed envelope that is provided for your convenience. Note: two other individuals
must witness your signature. Please also return the completed Form W-9 for the completion of our
• records.
•
Should you have any questions or comments,please feel free to contact me by telephone at 661-638-2730
X205. Thank you for your cooperation and assistance in this matter.
Respectfully,
Bonanza Cree Operating Company,LLC
Monica L.Ward-Keller
Business Development Coordinator
Enclosures(3)
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2005-3354
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Please Retain
DIVISION ORDER This Copy
TO: Bonanza Creek Operating Company, LLC
P.O. Box 21974 EFFECTIVE DATE: Sept 1,2005
Bakersfield, CA 93390 DATE PREPARED: Oct 18, 2005
Each of the undersigned certifies and guarantees that he/she is the legal owner of, and
hereby warrants title to, his respective interest as set forth opposite his/her name on Exhibit"A"
attached hereto and made a part hereof, in the oil, natural gas, including gas condensate and
natural gas liquids (hereinafter collectively referred to as"oil and gas"), produced and saved
from the Well(s), located in Weld County, State of Colorado, described as:
See Exhibit"A" Attached
Until further written notice BONANZA CREEK OPERATING COMPANY,LLC
(hereinafter called Bonanza") is hereby authorized to account to each of the undersigned for
his/her interest in said oil and gas in accordance with the division of interest, which is set out
herein, subject to the following terms and conditions:
FIRST: Settlement hereunder shall be made on the basis of the proceeds derived from
sales of such oil and gas and upon the volume computation made by the purchaser(s)thereof.
SECOND: Payment hereunder shall be made by mailing a Bonanza check to each of the
undersigned at the address given. The undersigned authorizes Bonanza to withhold from the
proceeds of the sale of any and all oil and gas referred to herein the amount of any tax placed
thereon, or on the production thereof,by any governmental authority, and to pay the same on
behalf of the undersigned.
THIRD: If a refund of any portion of the proceeds derived from the sale of oil and gas
may be required under any order,rule or regulation of the Federal Energy Regulatory
Commission or under the Natural Gas Policy Act of 1978 or any successor governmental or
federal regulatory agency,Bonanza may hold without interest the portion of the proceeds subject
to refund until indemnity satisfactory to Bonanza has been furnished or until Bonanza's refund
obligation has been finally determined. If at any time a refund of a portion of the proceeds
derived from the sale of oil and gas which has been paid the undersigned is required under any
order,rule or regulation of the Federal Energy Regulatory Commission or under the Natural Gas
Policy Act of 1978 or any successor governmental or Federal Regulatory Agency, Bonanza may
recover said refund by deducting from future payments, or at Bonanza's discretion, may invoice
the undersigned interest,plus the legal rate of interest Bonanza is required to pay applicable to
the undersigned's portion of the refund.
Pronghorn-Weld County 22-15,Pronghorn 12-9&Pronghorn 14-4
Weld County Board of Commissioners 1
Oct 2005
FOURTH: If the sale of oil and gas is made other than at the well or at the lease
separator, then the proceeds to which this Division Order shall apply shall be the net proceeds
after deduction of transportation, compression, gathering, dehydrating, and other costs properly
incurred in connection with the making of such sale.
FIFTH: The undersigned agrees to furnish to Bonanza satisfactory evidence of title
when demanded. In the event of claim, controversy or suit which in the opinion of Bonanza
affects title to the interests of any of the undersigned in the above-described land or to the share
of the oil and gas produced therefrom or to the proceeds from the sale of such oil and gas,
Bonanza may hold without interest the amount credited to the undersigned who is affected
thereby until such title has been made acceptable to Bonanza. The undersigned agree to settle
direct with all parties who may now own or may hereafter establish ownership of an interest in
the premises herein described, and the undersigned hereby agree to indemnify and hold Bonanza
harmless against all and every loss, charge, or expense of any kind whatsoever which Bonanza
may suffer or incur by or on account of having paid the undersigned for 100% of the runs under
this Division Order attributable to the interest set forth herein.
SIXTH: The undersigned agree to notify Bonanza in writing of any change of
ownership and no transfer of interest shall be binding upon Bonanza until a transfer order and the
recorded instrument evidencing such transfer or certified copy thereof shall be furnished to
Bonanza Creek Operating Company, LLC,P.O. Box 21974, Bakersfield, California 93390. Any
transfer of interest shall be made effective on the first day of the calendar month following
receipt of such notice to Bonanza. Bonanza is hereby relieved of any responsibility for
determining if and when any of the interests herein set forth shall or should revert to or be owned
by other parties as a result of the completion or discharge of money or other payments from said
interest, and the signers hereof whose interests are affected by such money or other payments, if
any, agree to give Bonanza notice in writing when any division of interest, other than set forth
herein, shall for any reason become effective and to furnish transfer orders accordingly. In the
event such notice is not received,Bonanza shall be held harmless in such event and is hereby
released from any and all damage or loss which might arise out of any mispayment. It is agreed
and understood that in the event any interest hereunder shall become subdivided, Bonanza shall
have the right to require the write designation of a common agent to received payment for all of
the several owners of the subdivided portions thereof, and Bonanza shall not be required to make
payment for such subdivided interest until such designation is furnished.
SEVENTH: The undersigned hereby adopt,revive,ratify and confirm the continued
effectiveness of each oil and gas lease, together with any amendments thereto, under which the
oil and gas to which this Division Order applies is produced. If the production which is the
subject of this Division Order is obtained from a unit or units, the establishment of such unit or
units is hereby ratified, confirmed and adopted.
EIGHTH: If the proceeds accruing to any interest hereunder shall amount to less than
Twenty-Five Dollars ($25.00)per month, Bonanza is hereby authorized to make payment from
such accruals at such time as the accruals shall have accumulated in the amount of Twenty-Five
Dollars ($25.00) or more.
Pronghorn-Weld County 22-15,Pronghorn 12-9&Pronghorn 14-4
Weld County Board of Connnissioners 2
Oct 2005
NINTH: This Division Order shall become valid and binding on each of the
undersigned,his heirs, devisees, administrator, executor, successors or assigns, as soon as signed
by him regardless of whether other interest owners have so signed, and all of the provisions
herein contained shall apply to each of the undersigned separately and not jointly.
SIGNATURE WITNESS OR ATTEST:
Owner#W1003 Q a
WELD COUNTY BOARD OF COMMISSIONERS ' 1.1: v%
91510Th STREET ,SJ t%
GREELEY,COLORADO 80631 4;�"?;-"i^� r
TELEPHONE: 970-356-4000 X4200 `;1861f
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TAxm: 84-6000-813 tNC a �,
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WELD COUNTY BOARD OF COMMISSIONERS � , /�„
By: `'i� N /4,- G I/�►!//iAV///
Witness #1 Clerk to the Board
Name: William H. Jerke ����
Title: Chair C- itiALS.1
Date: November 14. 2005 fitness#2 Dep ty Clerk to the Board
Pronghorn-Weld County 22-15,Pronghorn 12-9&Pronghorn 14-4 Weld County Board of Commissioners 3
Oct2005
Goes-Sag/
Exhibit"A"
Attached to and made a part of that certain Division Order dated effective
September 1, 2005 for the Well(s) and Owner listed hereinbelow in the
County of Weld, State of Colorado.
Well Name L Owner I Interest
Weld County 22-15 Weld County Board of Commissioners 0.125000000 RI
SENW
15/T5N/R61 W
Pronghorn#12-9 Weld County Board of Conunissioners 0.125000000 RI
SWNW
9/T5N/R61W
Pronghorn#14-4 Weld County Board of Commissioners 0.062500000 RI
SWSW
4/T5N/R61W
Pronghorn-Weld County 22-15,Pronghorn 12-9&Pronghorn 14-4 Weld County Board of Commissioners 4
Oct 2005
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
BY:
Attorney r
DATE: ) c ICI
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