HomeMy WebLinkAbout860900.tiff RESOLUTION
RE: APPROVE OIL DIVISION ORDER FROM MARATHON PETROLEUM COMPANY,
P.O. BOX 3128 , HOUSTON, TEXAS 77253, AND AUTHORIZE CHAIRMAN
TO SIGN
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 Diversified Operating Corporation, and
WHEREAS, said lease covers land more particularly described
as follows:
Township 8 North, Range 58 West
Section 28 : NE4 NE4
Weld County, Colorado
WHEREAS , Marathon Petroleum Company has submitted an Oil
Division Order on the subject property, and
WHEREAS, Weld County is entitled to a one-eighth royalty
interest on production, and
WHEREAS, in order to receive said royalty interest, Weld
County must execute said Division Order, a copy of which is
attached hereto and incorporated herein by reference, and
WHEREAS, said Division Order has been reviewed by the Weld
County Attorney, Thomas O. David, and found to be in order, and
WHEREAS , the Board deems it advisable to approve said
Division Order on the parcel of land described herein.
NOW, THEREFORE, BE IT RESOLVED by the Board of County
Commissioners of Weld County, Colorado, that the Oil Division
Order as submitted by Marathon Petroleum Company, P.O. Box 3128 ,
Houston, Texas 77253 , on the hereinabove described parcel of land
be, and hereby is , approved.
BE IT FURTHER RESOLVED by the Board that the Chairman be, and
hereby is , authorized to sign said Division Order.
� '... i 860900
Page 2
RE: OIL DIVISION ORDER - MARATHON PETROLEUM CO.
The above and foregoing Resolution was , on motion duly made
and seconded, adopted by the following vote on the 15th day of
September, A.D. , 1986.
x BOARD OF COUNTY COMMISSIONERS
ATTEST:'
L1n.+n.+A Q(.lf/-{lt WELD COUNTY, COLORADO
Weld County (Clerk and Recorder \ • _� . , \� .a s..
and Clerk to the Board Ja que ne, �:s•n,,C airman
r a i^ / ice.
Bli 07,Ar 4..,caJ y� � Go d:�" . act'/ •' •- ' em
D putt' County C rk
APPROVED AS TO FORM: e e R. Bra ner
C.W.(I 44CPC: ---7,5M---ae-ev,C7 ye/2�
County Attorney Fn /��/�,//`(�ljfjjG�l
Fra l� ytalmag�Nyl5i
860900
LK:md
•
Form50812 Ak20 949D DIVISION ORDER
• Farm Name DOC Fiscus 1-28 Lease No. D.O.No. 128
Operator Diversified Resources Ltd. Datelssued September 5, 1986
Effective Date of_First Run
TO:MARATHON PETROLEUM COMPANY,herein called"Marathon",with offices at Division Order Department
P.O. Box 3128 Houston Texas 77253
The undersigned, and each of them, represent and warrant that they are the legal owners in the respective
proportions set out below of all the oil, including the royalty interest in such oil, produced from the above-named
farm, described as follows;
- T. 8 N. , R. 58 W.
Sec. 28: NE4 NE4
•
located in the County of Weld , State of Colo.
Subject to the covenants hereinafter contained and until further written notice given either by Marathon or the
undersigned, Marathon is authorized to receive and purchase the oil produced from the above-described lands and
give credit for said oil as follows:
DIVISION OF INTEREST
DECIMAL TYPE
OWNER NAME AND ADDRESS FRACTIONAL INTEREST PROPORTION OF OF
ALL OIL RUN tNT.
Marathon Petroleum Company will deduct each owne"' s proportionate share of Windfall
Profit, Conservation and Severance Taxes. and rem t these monies to the proper agency.
Before Payout After Payout
Commonwealth Energy Associates, L.P. .1125000 WI .1125000 WI
_Jo Palace Exploration Company .1200000 WI .1200000 WI
265 Gear Drilling Company •
.0209531 WI .0209531 WI
283 Robert J. Adams .0069844 WI .0069844 WI
471 Marvin R. Brown .0558750 WI .0558750 WI
•
By execution hereof, the undersigned agree that it is the respons' bility of th
Operator to notify Marathon Petroleum Company in writing when payout occurs, a d
in the absence of such notification, hereby agree to hold harmless Marathon Pe roleum
Company, its successors and assigns, from and against any and every loss, cost damage,
charge or expense of every kind or, character whatsoever which may be incurred y said
Marathon, its successors and assigns, by reason of paying the proceeds accordi g to
the division of interest shown above.
B 1128 REC 02069490 09/15/86 15: 29 $0.00 1/003
F 0244 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
The following covenants are part of this division order and,in consideration of the payments made by Marathon hereunder,shall be binding
upon the undersigned,their successors,legal representatives and assigns:
1. The oil received and purchased by Marathon hereunder(hereafter"Oil")shall become the property of Marathon as soon as the same is
received into the custody of Marathon or Marathon's designated carrier.
2. Subject to the terms of this division order, Marathon shall pay the undersigned for their respective proportionate parts of the Oil at
Marathon's posted price if one is posted or,if not,then at neaoti ated market price
Marathon will deduct from payments for the Oil any taxes applicable laws and regulations require Marathon to deduct.In addition,Marathon may
also deduct from such payments on behalf of the operator of the above-described lands any taxes applicable tax laws and regulations permit or
require the operator to deduct �� i i>R(y rift 9(Etra t.>MaadSKd(ktkhaha[tLRYoMCIdot loPhdribtiOA MiSighli Fabe'kirieX
*Oita ettlement and payment
Bent shall bS o�F tld'rXdonthltlS�eceiv1Sdri•A•
Settlement and payment shall be made monthly for it received and purchased during the preceding month by Marathon's check to the
respective parties at the addresses herein given for the amount of the purchase price due said parties respectively,less any taxes or trucking costs
which may be deductible as aforesaid.If the proceeds accruing to any interest shall amount to less than Five Dollars($5.00)per month,Marathon is
authorized to make payment for such accruals on an annual basis,such payment to be made during the month of December for such amount as may
be due for Oil received and purchased up to and including the month of November;provided,however,Marathon shall not be required to make
such annual payment until the amount of proceeds accrued equals or exceeds the sum of Five Dollars($5.00).
(Continued on reverse side.) q:)t:^+' -'t rr7
•
3. Marathon may refuse to receive or purchase any oil not considered merchantable or acceptable by Marathon or Marathon's designated
carrier.If necessary to make oil merchantable or acceptable,the same shall be steamed or treated at the owner's expense.Quantities of Oil shall be
determined by the method of measurement and computation being employed by Marathon or Marathon's designated carrier,including,but not
limited to,the gauging of storage tanks and computation of quantity from properly compiled tank tables.the use of certified truck gauges,and the
use of properly calibrated meters.Proper deductions may be made for water,dirt,sediment and other impurities,and corrections for temperature
will be made to 60 degrees Fahrenheit according to the latest generally accepted ASTM methods.
4. Marathon shall have the right to suspend payment,without interest or penalty,for all or any part of the Oil until title to the Oil and the
above-described lands has been examined and any title deficiencies have been cured to Marathon's satisfaction.Satisfactory abstracts or other
evidence of title shall be furnished to Marathon at any time on demand.
In addition,if at any time Marathon receives notice or becomes aware of any claim or lien,or question or dispute concerning title to the Oil or the
above-described lands,Marathon may.without interest or penalty and according to prudent business practice,suspend payment for Oil run to the
credit of any interest affected by such claim,question or dispute until it is resolved to Marathon's satisfaction.If such claim,question,or dispute
arises in an action or suit in which any of the undersigned are parties,such parties shall immediately notify Marathon in writing.Such notice shall
state the title of the suit or action and the Court in which it is filed.
If examination of title or resolution of a claim,question,or dispute indicates that an undersigned does not own the entire interest represented
and warranted above,Marathon may issue supplemental or amended division orders to reflect the correct ownership of such interest.
• 5. a. The undersigned shall provide Marathon with written notice, including satisfactory proof,of any change in ownership.Any transfer,
assignment,or conveyance of an undersigned's interest shall be made subject to this division order and effective at 7:00 a.m.on the first day of the
calendar month following Marathon's receipt of such notice or, if the transferor and transferee so agree,on the first day of the calendar month
Marathon receives such notice or the first day of any subsequent calendar month.
b. Marathon is not responsbile for any change in ownership in the absence of actual written notice and satisfactory proof thereof.Marathon
is hereby relieved of any responsibility for determining when any of the interests hereinabove setforth shall revert to other parties asa result of the
completion or discharge of money or other payments from said interests.Those of the undersigned whose interests are so affected by such money
or other payments, if any,agree to notify Marathon when any such money or other payments have been completed or discharged or any other
division of interest other than that set forth above shall,for any reason.become effective and agree to furnish transfer orders accordingly.
6. The working interest owners and operators who sign this division order. and each of them, guarantee and warrant for the benefit of
Marathon, any subsequent purchaser, and Marathon's designated carrier that all the Oil has been, or will be, produced in accordance with
applicable Federal,State and Municipal laws and official rules and regulations.
Each lessor who signs this division order represents and warrants that the aforementioned lease or leases,to the extent they affect such
lessors interest in the Oil and the above-described lands,are in full force and effect and authorize drilling,production,and disposal of the Oil from
such lands. In addition,each lessor who signs this division order hereby ratifies such lease or leases. -
7. Each of the undersigned individually agrees to indemnify and hold Marathon harmless from and against any claims,demands. losses.
liabilities.or payments to other parties made or suffered by Marathon because such undersigned al owns a lesser interest than represented and
warranted herein,b)fails to timely provide any notice required by this division order,or c)breaches any representation and warranty made by such
undersigned herein. In addition,each working interest owner and operator signing this division order further agrees to so indemnify and hold
Marathon harmless because of any claim or lien filed against the well or wells producing Oil run to the credit of such working interest owner or
operator.
In aid.but not in limitation,of the above,each of the undersigned authorizes Marathon to deduct from payments for Oil run to the credit of such
undersigned's interest,or from any other amounts owed by Marathon to the undersigned or any other legal entity owned or controlled by or under
common control with the undersigned,any amounts owed to Marathon pursuant to such undersigned's indemnity.
8. Marathon is granted the right to enter the above-described lands for the purpose of removing the Oil and other activities related thereto.
Consent is herebygiven to Marathon or any pipe line company which Marathon may cause to connect with the wells,tanks or meters on said land to
disconnect and remove such pipe lines in case of termination by Marathon or the undersigned of purchases under this division order.Marathon is
not expected to receive Oil in definite quantities or forfixed periods nor to provide storage on the credit balance plan or otherwise,except as and
when Marathon shall agree with the undersigned in writing.
9. In case the land, lease or leases hereinabove described, or a portion or portions thereof. or interests therein, shall be combined or
consolidated with other lands, leases or interests therein so as to create a unitized lease or tract, then,to the extent that the agreement or
agreements creating the unitized lease or tract shall be executed by the undersigned,or some of them,this division order shall apply to that portion
of the Oil produced from the unitized lease or tract and allocated to the land,lease or leases hereinabove described,or portions thereof,and under
such circumstances it shall not be necessary to execute and f ile a new division order following the creation of such unitized lease or tract:provided,
however,this provision shall not apply to, nor affect the interest of, any of the undersigned who do not execute the agreement or agreements
creating the unitized lease or tract unless the interest of such undersigned is nevertheless compulsorily unitized by action of an appropriate
governmental agency.
10. Notice to Marathon shall not be effective unless and until received by Marathon in writingat the address provided on the first page of this
division order.
11. This division order shall become valid and binding on each and every owner above-named as soon as signed by him,her or it,regardless of
whether any of the above-named owners have signed. -
*Buyer is authorized to deduct from amounts due the respective owners for the Crude Oil their
•
proportionate share of the charges for transporting the Crude Oil to facilities designated by
Buyer and other charges where applicable.
INSTRUCTIONS FOR SIGNING
EXECUTE IN INK EXACTLY AS YOUR NAME APPEARS ABOVE AND HAVE YOUR SIGNATURE WITNESSED. If
executing on behalf of a corporation, indicate your official title and affix corporate seal attested by the secretary or
assistant secretary. If executing as Attorney-in-Fact,attach a copy of your authority.It is necessary to only execute one
•
copy of this -division order which may be signed in counterparts. BE SURE TO FURNISH CORRECT MAILING
ADDRESS,INCLUDING ZIP CODE, POST OFFICE BOX NUMBER OR COMPLETE STREET ADDRESS.
Jacqueline Johnson, Chairman
DO NOT DELETE OR REMOVE-ANY PORTION HEREOF, Board of County Commissioners• Weld County, Colorado
ATTEST• (l4ri" F @ J (SIGNATURES AN A DRESSES OF OWNERS)
•
e ou y
rr'' C
and Clerk (t�b P.O. B 758
1 ADDRESS
• Greeley, CO 80632
D putt',. ?Th. S,S, OR \/ 84-6000-813
(_J i Tax Identification No.)c
ADDRESS
Tax Identification No.
B 1128 REC 02069490 09/15/86 15: 29 $0. 00 2/003
F 0245 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
ADDRESS
• Tax Identif. ,n No.
• ,t7f ,:r .r.,JNt�
LK:md
FONM na N
• DIVISION ORDER
(Continuation Sheet) Date Issued_.September 5=1986-
Farm Name DOG Fiscus 1-28 Lease No. DO. No. 128_
DIVISION OF INTEREST mit
OWNER NAME AND ADDRESS 'r
FRACTION DECIMAL
Before Payout After Payout
282 Diversified Operating Corporation .1080782 WI .1380782 WI
.0448749 ORRI .0448749 ORRI
472 John Penn Lee .0337969 WI .0337969 WI
473 R. S. J. , Inc. .0558750 WI .0558750 WI
482 Mile Hi Oil & Gas, Inc. .0347344 WI .0347344 WI
276 Paul Abbey .0187500 WI .0187500 WI
479 The Resource Exemption Equivalent Trust .0187500 WI .0187500 WI
431 Williams Resources Corp 0084375 WI .0084375 WI
480 Michael J. Fuchs 0100000 ORRI .0100000 ORRI
481 Margaret S. Fuchs ,0100000 ORRI .0100000 ORRI
284 Oscar Strongin 0018750 ORRI .0018750 ORRI
_7 Commonwealth Energy Associates-II , L.P. 0800000 WI 0600000 WI
528 John M. Turner 0120000 WI 0090000 WI
529 Colburn R. Thomason 0120000 WI 0090000 WI
530 Jack H. Farrior 0120000 WI 0090000 WI
531 Albert M. Pardini 0040000 WI 0030000 WI
Patterson Shaw, Inc. 0467578 WI 0467578 WI
Samuel Gary, Jr. , & Associates, Inc. 0467578 WI 0467578 WI
Board of County Commissioners . 1250000 RI 1250000 RI
of the County of Weld
B 1128 REC 02069490 09/15/86 15: 29 $0. 00 3/003
F 0246 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
Pin Ce"ir;'
iirit
rS�s
SEP 91986dr
INSTRUCTIONS FOR DIVISION ORDE' ( 1
G;2 E
Read Carefully Before Signing the Instrument Cato.
This instrument should not be altered in any way unless accompanied by
documentary evidence to support the change.
If your name and interest are correctly shown:
1. Sign name as shown on the instrument. Have your signature witnessed
by a responsible adult not related to you.
2. If executed for a corporation, signature must be attested, corporate
seal affixed, and title of the signing party added.
3. If signing for a partnership, please furnish a copy of the document
which authorizes the signature.
4. If the instrument is signed by 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.
5. Print or type the address to which checks are to be mailed.
6. Fill in your Social Security or Tax identification number on the line
provided. Federal law requires that Marathon Petroleum Company
withhold 20% of all revenue payments if this number is not furnished.
7. Complete and return the enclosed Windfall Profit Tax forms which apply
to you, as outlined on the instruction sheets.
Please refer to that part of Covenant #2 in the Division Order regarding
payment of proceeds accruing to any interest. Marathon has recently
changed its policy of issuing checks so that a minimum amount is now $25.00
instead of $5.00.
Upon receipt of your signed Division Order, we will place your interest in
line for payment. Allow thirty (30) to forty-five (45) days for
processing. If you require additional copies of this Division Order,
please make your copies prior to returning the original .
RETURN THE EXECUTED INSTRUMENT WITHOUT DELAY TO THE ADDRESS BELOW:
Marathon Petroleum Company
Attention: Division Order Department
P. 0. Box 3128
Houston, Texas 77253
860900
128
Marathon P.O. Box Sex
Houston,Texas 77253
MARATNON Petroleum Company Telephone 713/629-6600
TO OWNERS OF ROYALTY INTEREST:
As an owner of royalty interest in an oil or condensate producing property,
your share of sales from that property is subject to "Windfall Profit Tax".
You may, however, be an owner who qualifies for the Royalty Owner's
Exemption from Windfall Profit Tax.
In order for us to withhold the proper amount of tax from your checks,
please provide us additional information concerning your ownership interest.
Enclosed are the following forms for your convenience in certifying your
producer's Windfall Profit Tax status.
1. Owner Identification Form
2. I.R.S. Form 6783, Qualified Royalty Owner's Exemption
Certificate with instructions.
Complete and return the "Owner Identification Form", along with your
executed Division Order.
If you are a "Qualified Royalty Owner" with "Qualified Royalty Production"
as defined in the instructions on the back of Form 6783, two barrels a day
of your total production qualifies for exemption from Windfall Profit Tax.
The exemption increases to three barrels a day in 1985 and thereafter. If
you qualify and wish the exemption to be applied to the enclosed Division
Order property, complete the enclosed Form 6783 indicating in Part A the
property name. Return the completed certificate along with your executed
Division Order. Upon receipt by our Accounting Department, Marathon will
not withhold the tax from your payments on the certified property.
The above noted information is not intended to provide you legal advice in
interpreting the complex provision of the Windfall Profit Tax Law. Read the
instructions carefully, and, if you still have questions, we suggest you
contact your tax advisor or the Internal Revenue Service.
IN THE EVENT OF QUESTIONS AS TO. HOW TO COMPLETE THESE WINDFALL PROFIT TAX
FORMS, PLEASE WRITE:
Marathon Petroleum Company
539 South Main Street
Findlay, Ohio 45840
Attn: Royalty Owner Relations Department
Rm. 1004-M
OR CALL 419-422-2121, Ext. 2814
Hello