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Home My WebLink About20041646.tiff OIL AND GAS DIVISION ORDER LVC Date: 3/25/2004 Lease No.:113697021 Lease Name: SPOMER J 33-25(5 SPOT) Effective Date: Date of First Sales To: Patina Oil & Gas Corporation 1625 Broadway, Suite 2000 Denver, CO 80202 Each of the undersigned, individually, for themselves, their heirs, successors, and assigns, hereby represents, warrants, and guarantees to Patina Oil & Gas Corporation (hereinafter referred to as the'Company), its successors and assigns, that the undersigned is the legal owner of the decimal interest, as set forth below opposite each undersigned's name, in the proceeds from all oil, condensates, and natural gas which may be produced from or allocated to the following-described area or well located in the County of WELD, State of Colorado, and more particularly described as follows: Township 5 North, Range 66 West.6th P.M. Section 33: SW/4 Commencing on the effective date hereof, the Company is hereby granted and authorized to take and receive all oil, condensates, and natural gas which may be thereafter produced from the above-described area or well and, subject to the other terms and conditions hereof, to give credit therefore to the undersigned in accordance with the division of interest schedule as follows: CreditTo Owner Name Decimal Owner No. &Address Interest Type 18032 WELD COUNTY CLERK TO THE BOARD 0.11730510 RI AT WELD COUNTY GOVERNMENT P.O. BOX 758 GREELEY,CO 80632 Additionally, in consideration of the wells drilled or to be drilled on the above-described lands and the payment to the undersigned of royalties on production from said wells,the undersigned agree, grant, and represent to and with the Company as follows: 1. Oil (including crude oil and condensate) shall become the property of the purchaser thereof upon its delivery to the purchaser or to the purchaser's agent or carrier, and payments hereunder shall be based upon the net price received therefore from the purchaser. Oil shall be graded and measured in accordance with applicable rules, regulations, or standards generally accepted in the industry. In the event that the Company is the purchaser of such oil, settlements therefore shall be based upon the Company's posted price for similar oil in the field where produced and in effect on the date of delivery, or if no posted price is then in effect, settlements shall be based upon the then prevailing market price on the date of delivery thereof in the field where produced. If the oil is purchased by the Company and resold to another purchaser accepting delivery thereof on the premises, settlements hereunder shall be based on the net price received therefore by the Company. The Company may deduct from any price received for the oil the reasonable costs of transporting and/or treating the same if incurred. 2. Natural gas, including casinghead gas if marketed with gas well gas, shall be delivered and sold to and become the property of the pipeline company to whom the gas is agreed to be sold by the Company. Settlements to the undersigned shall be based upon the terms, conditions and prices for said gas as agreed to with the pipeline company and/or gas purchaser less post production costs from the wellhead to the point of sale, including but not limited to gathering, compression, transportation, dehydration and transmission. 3. Oil and natural gas produced and sold from the premises is or may become subject to orders of certain regulatory authorities who could vary the terms of any agreement for the production or sale thereof. To the extent that such orders do modify or change current sales or production arrangements, the provisions thereof, as well as the provisions hereof, shall be so modified accordingly. 4. Settlements hereunder for oil and gas shall be made monthly by the Company mailing or delivering their check to the undersigned at the address indicated in an amount, less taxes required to be withheld, calculated in accordance with the schedule of interest as herein contained. Settlements shall be mailed no later than the 25th day of each month for oil and/or gas taken or sold during the second preceding calendar month. If at any settlement date the amount payable to any of the undersigned shall be less than Twenty-five Dollars ($25), the Company may defer such payment and make payment when such settlement amount has accumulated to Twenty-five Dollars ($25) but, in any event, not less than annual intervals. 5. The undersigned individually warrant that they are the owner of their respective interest as herein set forth and that in the event of an adverse claim made thereto or in the event ownership of the undersigned's interest is not substantiated by record examination, the Company may retain any and all settlements due therefore, without interest, until such claim or ownership of the interest is settled, fully adjudicated or otherwise determined, or until the Company is adequately indemnified therefore by the parties claiming such interest. The Company may, at any time, require the undersigned to furnish proof of its title to its interest, including abstracts of title or other pertinent records or documents. 6. The undersigned shall notify the Company of any change in the ownership of their interest, and the Company shall not be liable for, nor shall it be required to recognize, any change in ownership unless and until the Company shall actually receive a certified copy of the instrument changing such interest and the transferee thereof executes and returns to the Company such transfer order or amended division order as the Company may reasonably require. In no event shall the Company be required to give effect to any change of interest of the undersigned prior to the first day of the calendar month next following the month in which the Company is notified of such change, ren=r.+i__= nt the effective date of the instrument transferring the same. 4 RETAIN THIS COPY 2004-1646 7. The undersigned hereby represent, grant to, and agree with the Company that the interest of the undersigned and of the Company in and to the oil and gas which has or which may be produced from the premises is in full force and effect and that all payments required to be made and all acts required to be done by the Company with respect thereto have been performed. The undersigned hereby releases the Company from any and all claims and damages arising from the purchase and handling of oil or gas from the premises and for making any payments for settlements so long as the same are made in accordance with the terms of the division of interest. 8. In the event that the area or well described above, or any part thereof, is included in one or more pooled or unitized units now or hereafter formed by order of any appropriate governmental authority by agreement or otherwise, the undersigned and the Company recognize and agree that settlement for oil and gas shall be made in accordance with the production allocated to the premises above described without the necessity for the execution of additional or supplemental division orders. To the extent that the premises as described above constitute a previously pooled or unitized area, the same is hereby ratified. The undersigned hereby expressly ratify and confirm the oil, gas and mineral lease or leases, pursuant to which oil and gas from the property is being produced and sold, any amendments and supplements to such lease or leases including any designations, declarations or agreements creating the unit including the above described property, if such be the case. 9. The provisions hereof shall be binding upon and inure to the benefit of the Company and the undersigned, their respective heirs, successors, administrators, and assigns. No change in the ownership of any interest herein described shall have the effect of changing the binding nature hereof. This instrument may be executed in counterparts with each counterpart considered to be a binding agreement of the signatories thereto; and all counterparts, as executed, shall be considered to be one instrument. 10. Should it be determined from time to time by the courts, any governmental agency having jurisdiction, or the Company and the purchaser of production, that the prices or allowances, if any, being paid to the Company and the amounts being disbursed to the undersigned are in excess of lawful prices or prices agreed to with the oil or gas purchaser, and a refund is then required, you agree to promptly refund such excess amounts so paid to you, including interest thereon, if required. Additionally, the Company shall have the right to recover such excess amounts out of future settlements hereunder to which you are entitled. 11. This division order may be executed in counterparts and shall be binding on and shall inure to the benefit of each signer hereto, his/her heirs, successors and assigns, whether or not it is executed by all parties named herein. WHEREFORE, the undersigned have executed this Division Order in acknowledgment and consent to the foregoing terms,warranties, and agreements. Witness Sign Below: Owner Sign Below: SS No. or Tax ID No. E WELD COUNTY CLERK TO THE BOARD g � /,�� /�� AT WELD COUNTY GOVERNMENT • , ►�. '�/' ' `�i�/.�e.�r 84-6000-813 1861 �o...tq$� BY:William H. Jerke Chair Pro-Tem .i CII o the Bo "d % 5 t4r4 s e Weld County Board of Commissioners 4 ' ,JD 11q.n r..; Clerk to the Board (970)356-4000X4225 Telephone Number Date: 06/02/2004 IMPORTANT: TO AVOID DELAY IN PAYMENT, YOUR CURRENT ADDRESS AND SOCIAL SECURITY NUMBER OR TAX ACCOUNT NUMBER MUST BE SHOWN Dear Interest Owner. Please read carefully before signing the enclosed oil and gas division orders: I. Your interest as shown on this instrument should not be altered in any way unless accompanied by documentary evidence to support the change. We may reject any division orders changed without our approval. Do not detach Exhibit"A",If applicable. 2. Furnish in writing any change of address information and include your signature. For change in ownership, furnish copies of properly filed and recorded legal documents affecting title of interest ownership under which payment is made. Provide a letter describing effect of change. 3. Sign your name EXACTLY AS IT APPEARS ON TIIE INSTRUMENT. Please have your signature witnessed by two separate parties. 4. If signing for a corporation,signature must be attested,corporate seal affixed and title of signatory party shown. 5. If signing fora partnership,all partners must sign,unless signed by an authorized partner and we are furnished a certified copy of his/her authority. 6. If the instrument is signed by an agent,attorney-in-fact,guardian,estate representative,trustee or any party other than the named interest owner,we must have evidence of the rights vested in the signatory Party. 7. If an interest is shown jointly for mare than one person,each party must sign the division order in the manner that his or her name is shown thereon. In the event one party has been designated agent for the joint interest shown or he/she has been granted a power of attorney for the other patty(ies),we must have evidence to this effect. 8. Insert your Tax Identification Number or Social Security Number,whichever is applicable,in the space provided. We may withhold payment until such number is received. 9. Confimt the address to which checks are to be mailed. If different,please provide the correct address. You should notify us promptly of any changes In your mailing address. 10. The number assigned to this property can be found in the upper right corner of the form. The number will be used to designate this property on your revenue check. Refer to the property number when corresponding. I I. Return the executed instrument without delay to the address below. KEEP ONE COPY FOR YOUR RECORDS. PATINA OIL&GAS CORPORATION ATTENTION: LARRY VAN CLEAVE 1625 BROADWAY,SUITE 2000 DENVER,CO 80202 PATINA OIL&GAS CORPORATION 1625 Broadway, Suite 2000 Denver, Colorado 80202 (303) 389-3600 (303) 389-3680 Fax May 24, 2004 Mr. Bruce T. Barker Weld County Attorney's Office P O Box 758 ® 4 r !q Greeley, CO 80632 MAY 2620e4 Re: Oil and Gas Division Order Spomer J 33-25 (5-spot) Well AUNTY Township 5 North, Range 66 West,-6`h P.M. i1T'a�PN Y s OFFICE Section 33: SW'/ (160.00 acre spacing unit) Dear Mr. Barker: In response to your letter request dated April 12, 2004, inquiring how Patina Oil & Gas Corporation arrived at Weld County's royalty decimal interest being .11730510 in the above captioned well. The decimal interest credited to Weld County is based on the SW% of Section 33 comprising 160.00 acres more or less. A combination of title updates and a prior title opinion covering separate individual 80.00 acre drillsite spacing units comprising the N%2SW'/4 and the S''/2SW' of Section 33 were utilized. The opinion and the updates credited Weld County with a .1191099 decimal royalty interest in the N%2SW'/, and a .1155003 decimal royalty interest in the S%SW'% of Section 33, which equates to the following: .1191099 plus .1155003 = .2341010 _ 2 = .11730510 royalty decimal interest in the Spomer J 33-25 (5-spot) well and spacing unit. If we can be of further assistance regarding the above, please do not hesitate to contact the undersigned at 303-389-3662. Sincerely, PATINA OIL & GAS CORPORATION Larry Van Cleave Property Administrator 6 WELD COUNTY ATTORNEY'S OFFICE 915 TENTH STREET P.O. BOX 758 GREELEY, CO 80632 WEBSITE: www.co.weld.co.us PHONE: (970) 336-7235 FAX: (970) 352-0242 • April 12, 2004 COLORADO Patina Oil & Gas Corporation Attn.: Larry Van Cleave 1625 Broadway, Suite 2000 Denver, CO 80202 RE: Division Order for Weld County, Colorado Dear Mr. Van Cleave: The Board of County Commissioners of Weld County, Colorado has received from you a Division Order for various leased oil and gas interests it has in the Southwest Quarter(SW'/4) of Section 33-5-66 for the SPOMER J 33-25 (5 SPOT) well. A copy of the Division Order is enclosed. I am somewhat uncertain as to how the royalty interests included in the Division Order were calculated. I therefore respectfully request that you provide me with information showing the calculations. If you should have any questions or if I may be of any assistance, please feel free to call me at (970) 356-4000, extension 4390. Suer Z.- / ce B ker Weld County Attorney Enclosure pc: Clerk to the Board COUNTY ATTORNEY STAFF APPROVAL This is to affirm the attached Division Order and Authorization to Receive Payment for an Oil and Gas Welt has been reviewed by the County Attorney's staff as to form, legal description, and percentage of royalties, if applicable BY: /' L—..�_. Coun ttorney � DATE: ' c Hello