HomeMy WebLinkAbout20053339.tiff BONANZA CREEK OPERATING COMPANY, LLC
CORPORATE OFFICE / \ ROCKY MOUNTAIN OFFICE
4900 California Avenue-Suite 350B 116 Inverness Drive East,Suite 270
Bakersfield,CA 93309 6)et Englewood,CO 80112
P.O.Box 21974 P.O.Box 3589
Bakersfield,CA 93390 www.0onanzanlacons Parker,CO 80134-1437
Office: 661/638-2730 Office: 720/729-2330
Fax: 661/638-2733
October 18, 2005
Weld County Board of Commissioners
915 10th Street
Greeley,Colorado 80631
RE: Weld County#22-15 Well, SENW 15-T5N-R61W
Pronghorn 12-9 Well, SWNW 9-T5N-R61W— z oe'>-i3
Pronghom 14-4 Well, SWSW 4-T5N-R61W
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
// t ,,
Monica L.Ward-Keller
Business Development Coordinator
Enclosures(3)
L4<Oa/1/
G\COMMOrNANI Dirisio.Orders rmlghon N NwuiucW eld County Commissioners LTR 10-I 8-3005
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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&Pronghom 14-4
Weld County Board of Commissioners 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 -
WELD COUNTY BOARD OF COMMISSIONERS
91510Th STREET
GREELEY,COLORADO 80631 �.
*
TELEPHONE: 970-356-4000 X4200
TAX ID: 84-6000-813
WELD COUNTY BOARD OF COMMISSIONERS
•
SAL
By: • i
Witness #1 Clerk to the Board
Name: William H. Jerke q/ �,{P ppp
Title: Chair iikAt -Witness
_P, L � �re
Date November 14, 2005 Witness #2Dep(I y Clerk to the Board
•
Pronghorn-Weld County 22-15,Pronghorn 12-9&Pronghorn 14-4
Weld County Board of Commissioners 3
Oct2005 y !�
��CJ-
Exhibit"A"
Attached to and made a part of that certain Division Order dated effective
September 1, 2005 for the Wel1(s) and Owner listed hereinbelow in the
County of Weld, State of Colorado.
Well Name I 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 Commissioners 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, le I description, and
percentage of royalties, if applicable
BY:
Cou ttorney
DATE: I C �,1 C'�
For, W'9 Request for Taxpayer Give form to the
(Rev.January 2005) Identification Number and Certification requester. Do not
send to the IRS.
Department of the Treasury
Internal Revenue Service
fv Name(as shown on your income tax return)
m Weld County, Colorado
m
o- Business name,if different from above
c
0
a p Individual/ Exempt from backup
F u Check appropriate box: C Governmental Sole proprietor ❑ Corporation El Other ► Entity qo withholding
`02
N Address(number,street,and apt.or suite no.) Requester's name and address(optional)
f 7 915 10th Street
:E City,state,end ZIP code
o
a Greeley, Colorado 80631
to m List account number(s)here(optional)
to
N
Part I Taxpayer Identification Number (TIN)
Enter your TIN in the appropriate box.The TIN provided must match the name given on Line 1 to avoid Social security number
backup withholding. For individuals,this is your social security number(SSN).However,for a resident I I + I + I I I
alien, sole proprietor,or disregarded entity,see the Part I instructions on page 3. For other entities,it is
your employer identification number(EIN).If you do not have a number,see How to get a TIN on page 3. or
Note.If the account is in more than one name,see the chart on page 4 for guidelines on whose number Employer identification number
to enter. 8 14+ 61 01 0 I 0 18 11 13
Part II Certification
Under penalties of perjury, I certify that:
1. The number shown on this form is my correct taxpayer identification number(or I am waiting for a number to be issued to me), and
2. I am not subject to backup withholding because: (a)I am exempt from backup withholding,or(b)I have not been notified by the Internal
Revenue Service(IRS)that I am subject to backup withholding as a result of a failure to report all interest or dividends,or(c)the IRS has
notified me that I am no longer subject to backup withholding,and
3. I am a U.S.person (including a U.S.resident alien).
Certification instructions.You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup
withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions,item 2 does not apply.
For mortgage interest paid,acquisition or abandonment of secured property,cancellation of debt,contributions to an individual retirement
arrangement(IRA), and generally, payments other than interest and dividends,you are not required to sign the Certification, but you must
provide your correct TIN.(See the instructions on page 4.)
Sign signature of / 11/14/2005
Here U.S.person S. /( Q rN>. Date►
Purpose of Form William H. Jerke
A person who is required to file an information return with the • Any estate(other than a foreign estate)or trust. See
IRS, must obtain your correct taxpayer identification number Regulations sections 301.7701-6(a) and 7(a)for additional
(TIN)to report,for example, income paid to you, real estate information.
transactions, mortgage interest you paid, acquisition or Foreign person.If you are a foreign person, do not use
abandonment of secured property, cancellation of debt, or Form W-9. Instead, use the appropriate Form W-8 (see
contributions you made to an IRA. Publication 515, Withholding of Tax on Nonresident Aliens
U.S. person.Use Form W-9 only if you are a U.S. person and Foreign Entities).
(including a resident alien), to provide your correct TIN to the Nonresident alien who becomes a resident alien.
person requesting it(the requester) and, when applicable, to: Generally, only a nonresident alien individual may use the
1. Certify that the TIN you are giving is correct(or you are terms of a tax treaty to reduce or eliminate U.S. tax on
waiting for a number to be issued), certain types of income. However, most tax treaties contain a
provision known as a "saving clause." Exceptions specified
2. Certify that you are not subject to backup withholding, in the saving clause may permit an exemption from tax to
or continue for certain types of income even after the recipient
3. Claim exemption from backup withholding if you are a has otherwise become a U.S. resident alien for tax purposes.
U.S. exempt payee. If you are a U.S. resident alien who is relying on an
Note.If a requester gives you a form other than Form W-9 to exception contained in the saving clause of a tax treaty to
request your TIN,you must use the requester's form if it is claim an exemption from U.S.tax on certain types of income,
substantially similar to this Form W-9. you must attach a statement to Form W-9 that specifies the
For federal tax purposes you are considered a person if you following five items:
are: 1.The treaty country. Generally, this must be the same
• An individual who is a citizen or resident of the United treaty under which you claimed exemption from tax as a
States, nonresident alien.
• A partnership, corporation, company, or association 2. The treaty article addressing the income.
created or organized in the United States or under the laws 3.The article number(or location) in the tax treaty that
of the United States, or contains the saving clause and its exceptions.
Cat.No.10231X Form W-9 (Rev.1-2005)
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