HomeMy WebLinkAbout870453.tiff RESOLUTION
RE: APPROVE OIL DIVISION ORDER FROM NATIONAL COOPERATIVE REFINERY
ASSOCIATION, 1775 SHERMAN STREET, SUITE 3000 , DENVER,
COLORADO 80203 , 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, 6th P.M.
Section 28: NEaNEk
Weld County, Colorado
WHEREAS , National Cooperative Refinery Association 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 National Cooperative Refinery Association ,
1775 Sherman Street, Suite 3000, Denver, Colorado 80203 , 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.
/ lOG/G i 870453
Page 2
RE: DIVISION ORDER - NATIONAL COOPERATIVE REFINERY ASSOCIATION
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 8th day of
June, A.D. , 1987 .
Q.f.(blgfa;j BOARD OF COUNT COMMISSIONERS
ATTEST: WELD COU LOR O
Weld County Clerk and Recorder ,
and Clerk to the ISa)
rd Go c irman
@y/ JC.W irb , Pro-hem'�
eputy Coun /
APPROVED S TO FORM: Gene R. Bran ner
rC-- G2 %AMA
�iGX.
Ja que ne J h son
County Attorney EXCUSED
Frank Yamaguchi
870453
3RM366 ''IVISION ORDER
AR2102b18 NATIONAL COOPERATIVE REFINERY ASSOCIATION PAGE ONE OF TWO
To: NATIONAL COOPERATIVE REFINERY ASSOCIATION, DATE: May 29, 1987
hereinafter referred to as NCRA LEASE NAME: Fiscus #1-28
LEASE NO.: CP #24137
In accordance with and subject to the terms appearing on the reverse side the signatory parties hereto, and
ch of them, guarantee and warrant that they are the owners in the proportions set out below of all the oil, gas
d liquid hydrocarbons produced from the following described premises and until further written notice NCRA
authorized to receive oil, gas and liquid hydrocarbons therefrom, giving credit as directed below commencing at
a. m. o4x$4wfltsdxdzilx: < MAY....20 , 19....87
Township 8 North, Range 58 West, 6th P.M.
Section 28: NE*NE}
Weld County, Colorado
B 1159 REC 02102618 06/08/87 14: 43 0. 00 1/003
F 0951 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
Credit to Division and Kind of Interest
Board of County Commissioners
Weld County, Colorado .1250000 RI
Diversified Operating Corporation .0448749 ORI
Jack H. Farrior .0005000 ORI
Palace Exploration Company .0060000 0RI
Albert M. Pardini .0081000 ORI
The Resource Exemption Equivalent Trust
Bruce L. Waterhouse, Jr. , Trustee .0015000 ORI
Oscar Strongin .0018750 ORI
Colburn R. Thomason .0009000 ORI
•
Kelly Thomason .0012500 ORI
• Michael Lance Thomason .0012500 ORI
John M. Turner .0005000 0RI
ORI Sub-Total .0667499
Paul Abbey .0187500 NWI
Robert J . Adams .0069844 NWI
Marvin R. Brown .0558750 NWI
James D. Brownlie .0116892 NWI
Commonwealth Energy Associates, L.P. .1125000 NWI
Commonwealth Energy Associates-II , L.P. .0800000 NWI
Diversified Operating Corporation .1080782 NWI
Jack H. Farrior .0136031 NWI
Gear Drilling Company .0209531 NWI
RI—Royalty Interest ORI—Overriding Royalty Interest
WI—Working Interest PP—Production Payment MI—Mortgage Interest
IMPORTANT:To avoid delay in payment print or type your correct address (do not abbreviate) and your social
security number or tax account number on the reverse side. If an individual your signature should be
witnessed. If a corporation execution and attestation should be by authorized officers. If a part-
nership all partners should sign before witnesses. 870453
'ORM3aa 'DIVISION ORDER
NATIONAL COOPERATIVE REFINERY ASSOCIATION PAGE TWO OF TWO
To: NATIONAL COOPERATIVE REFINERY ASSOCIATION, DLEASE NAME:May M 29, 197
9,1987 #1-28
hereinafter referred to as NCRA LEASE NO.: CP #24137
In accordance with and subject to the terms appearing on the reverse side the signatory parties hereto, and
och of them, guarantee and warrant that they are the owners in the proportions set out below of all the oil, gas
id liquid hydrocarbons produced from the following described premises and until further written notice NCRA
authorized to receive oil, gas and liquid hydrocarbons therefrom, giving credit as directed below commencing at
a, m.xafxilec s4xdesixuf< Ma.Y....20 , 19....87
Township 8 North, Range 58 West, 6th P.M.
Section 28: NE*NEI
Weld County, Colorado
B 1159 REC 02102618 06/08/87 14: 43 10. 00 2/003
F 0952 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
Credit to Division and Kind of Interest
John Penn Lee .0337969 NWI
Mile Hi Oil & Gas, Inc. .0187032 NWI
Palace Exploration Company .1200000 NWI
Albert M. Pardini .0059238 NWI
R. S. J. , Inc. .0558750 NWI
The Resource Exemption Equivalent Trust .0187500 NWI
Bruce L. Waterhouse, Jr. , Trustee
Sooner Joint Venture .0818264 NWI
•
Colburn R. Thomason .0148856 NWI
Kelly Thomason .0040078 NWI
Michael Lance Thomason .0040078 NWI
• John M. Turner .0136031 NWI
2
Williams Resources Corporation
.0084375 NWI
WI Sub-Total .8082501
ry TOTAL: 1 .0000000
3
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n
r
H
Each of the signatory parties hereto agrees to indemnify and hold NCRA harmless
against all and every loss, cost, expense, or damage of any kind whatsoever
which it may suffer or incur by or on account of having paid said signatory
party for crude oil or other hydrocarbons purchased in accordance with the
decimal of interest set forth above opposite the name of said signatory party.
4
RI—Royalty Interest ORI—Overriding Royalty Interest
WI—Working Interest PP—Production Payment MI—Mortgage Interest
IMPORTANT:To avoid delay in payment print or type your correct address (do not abbreviate) and your social
security number or tax account number on the reverse side. If an individual your signature should be
witnessed. If a corporation execution and attestation should be by authorized officers. If a part-
nership all partners should sign before witnesses, 870453
7 '-1(
H 1159 kdC 02102618 06/08/87 14: . 50. 00 3/003
:OVENANTS: F 0953 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
The following covenants are a part of this division order:
1. Said Oil shall become the property of NCRA upon the delivery thereof to it or to any carrier,pipeline,person,firm or corporation designated by NCRA to receive said
all.
2. The oil purchased and received hereunder shall be delivered FOB to any carrier, pipeline,tanks or other facilities designated by NCRA which gathers end receives said
oil,and NCRA agrees t0 pay for such oil to the respective owners thereof according to the division of interest herein specified al the price posted by NCRA for oil of the same
grade,gravity and quality from the field or area In which the aforedescribed legse pr premises is located on the date said oil is received by NCRA,less any trucking or pipeline
lathering charges lincluding transportation taxes) deemed necessary by NCRA. Where automatic metering devices are used or where required by purchase contracts NCRA Is
Iglhertaed tO sale the average daily runs for each month as the actual dally runs from such premises.
3. Quantities of 011 purchased hereunder shall be computed from regularly compiied tank tables for the tanks from which oil Is delivered,or from certified Unk truck
mien on Oil taken in tank trucks,or in accordance with any rules and regulations prescribed by any authorized governmental entity,or In accordance with the conditions
specified In the price posting of NCRA,or InaccOrdance with any accepted practices or customs prevailing at the time and piece of delivery. NCRA may deduct from all oil
received all basic sediment, dirt,water and other Impurities,and,in addition,may correct the volume of on to normal temperature of 600 Fahrenheit In accordance with Cot-
recllen Table of American Society for Testing Materials-01150. Where a well produces oil after liquid hydrocarbons have been injected Into the same,deductions may be
made by NCRA for an amount Of oil equivalent to the amount of liquid hydrocarbons so Injected. Other adjustments and deductions may be made by NCRA as are provided
for in the applicable price posting by NCRA. NCRA may require that such oil be treated when necessary to render it merchantable. NCRA has the unqualified right to refuse
t0 receive any oil not considered merchantable by It or of acceptable quality. Before making payments to the owners hereunder there shall be deducted therefrom any sever•
ahCe,gross production,occupation or Other taxes Imposed on such oil or the production or the purchaser thereof Imposed by law and required to be deducted by NCRA as
Purchaser thereof until such time as any such law so Imposing such taxes is declared invalid by final and unappeasable judgment. NCRA is not required to receive oil In any
wines quantities of for any fixed periods or to provide storage therefor, and consent Is hereby given NCRA and any pipeline company which NCRA may cause to connect
with the walls or tanks on said premises to disconnect and remove such pipelines and other equipment owned by It in the event of the termination of purchases by NCRA
under this dlvlslon order,
4. The proceeds Of such oil, after deducting any taxes or Other charges as are herein provided,and except as is provided in paragraph 9,shall be paid monthly for oil re.
Wield end{serenaded during the preceding month according to the division of Interest set out herein by check or draft therefor mailed to each party at their address herein
designated except if the amount payable to any party hereunder shall be less than$5.00,payment shall be made annually with the understanding that when NCRA ceases to
pWOhasa oil under this division order NCRA will pay to each payee all sums accumulated to his credit to which his title is clear.
g. In giving Credit and making payment for oil produced from said premises NCRA is authorised to rely upon the written statement of the operator of the wells located
thereon as to the depth,horizon Or formation from which the oil delivered to NCRA has been or is being produced. All working Interest owners and all parties hereto who see
Connected with the operation of the said lease herein referred to guarantee and warrant that all oil sold hereunder has been end will be produced and handled In compliance
With the provident Of the Federal Falr Labor Standards Act of 1911 as heretofore or hereafter amended and all other applicable federal,state and other governmental laws,
rules and regulations.
0. Should the oil produced from any formation In or under the herelndes rlbed premises be commingled with other oil prior to the time It becomes property of NCRA,
Whether such other oil be produced from one or more formations having different ownership in or under the hereindescribed premises or In or under other premises,the com-
mingled 011 sold hereunder shall be deemed to be the interest of the undersigned In that portion of the total commingled oil delivered which is allocated to the hereindescribed
land on the basis of the formula prescribed by the operators of the I r units covering the formations or tracts of land involved and the data supplied NCRA with respect
thereto,end NCRA is authorized to accept such Information, rely upon the same and to make settlement and disbursement hereunder on the basis of the quality end gravity
of such commingled oil so allocated without liability to the undersigned. For pricing purposes regardless or the actual date of the flow from the separate tractile the meatier.
Ing facility the formula prescribed and supplied by the operator or operators INll,be Walled to the daily runs made by NCRA from the measuring facilities.
7. Should the Interest in the undersigned in the oil produced from the herelndescribed land or from any formation underlying said land be unitized with other landi or
ether formations,either voluntarily,by operation of law or by order of state or other governmental authority,this division order shall thereafter be deemed to be modified to
the extent necessary to conform with the applicable unitization agreement or plan, and all revisions or amendments thereto,but Otherwise to remain In full force and effect
as to all other provisions. In such event the portion of the unitized oil sold hereunder shall be the interest of'the undersigned in that portion of the total unitized oil which Is
alloCated to the hereindescribed land or formation underlying said land and shall be deemed for all purposes to have been actually produced from said land or formation un-
denying said land.
b. Each Of the undersigned hereby warrants and agrees to forever defend the.title to the oil credited to such undersigned owner according to the division of interest here.
InabOve indicated,as well at all interest hereafter acquired,and further agrees to indemnify and save harmless NCRA or any other purchaser of said oil,and any carrier dole.
Rated by NCRA or other purchaser to receive the said oil,and each of them,against all and every charge or expense of any kind whatsoever which they or any of them may
Suffer or Incur by or on account of receiving or purchasing Or transporting said oil,or by reason of any and all claims of any kind whatsoever as to said oil,adverse to the
undersigned.
9. Without Impairment Of any warranty herein Contained abstracts or other evidence of the undersigned's title to said oil shall be furnished at any time upon demand. If,
in the opinion of NCRA,the undersigned does not have good and merchantable title to the oil produced and the interest claimed therein by such undersigned,or in Cale of
adverse claim of title to the land from which said oil may be produced or to which said oil Is allocated under any unit operation,or to any of such oil,NCR',may withhold,
Without interest and without liability the purchase price or proceeds of said oil,until indemnity satisfactory to NCRA has been furnished or until such title is made acceptable
to NCRA,or until such adverse claim is settled to its satisfaction, if suit is filed affecting the interest of any of the undersigned,written notice thereof Shall be given NCRA at
the above address by the party or parties affected,together with a certified copy of the complaint,petition or bill of particulars sled,and the party or parties affected thereby
agrees to Indemnify NCRA against any judgment rendered therein and to reimburse NCRA for any costs,attorneys'fees or other expenses Incurmd in connection therewith.
In the event NCRA It the cporattf of the leas• or webs described herein It shall have the right to deduct from any payments due any working Interest Owner hereunder an
amount equivalent 10 any operating expenses or Charges due but unpaid by such working interest owner.
30. NCRA will not be responsible for any change of ownership in the absence of actual notice and proof thereof satisfactory to NCRA,and receipt by NCRA of a proper
end executed transfer order reflecting such changes of ownership. Each of the undersigned agrees to notify NCRA In writing of any change In his ownership and agrees that
any transfer,assignment or conveyance of any of his interest hereunder shell be made subject to this division order and effective at 7r00 o'clock a.m.on the first day of the
Calendar month following the receipt of said notice, Satisfactory proof thereof and transfer order by NCRA. Without regard to whether any contingency or condition is ea•
predly dated In this division order, NCRA is hereby relieved of any responsibility for determining when any of the interest herein shall I diminish,change,be meths.
Stained or revert to Other parties as a result of the completion or discharge of money,production or other payments from said Interest or the production attributable thereto,
er as a result Of the expiration of any time or term limitation(either definite or indefinite),or as a result of the Increase or decrease In production,or as a result of a Change in
producing depth Or formation,the method or means of production,or as a result of a change In the allocation of production affecting the above tract or any portion thereof
under any agreement or by order of governmental authority,or resulting from any other contingency,and until NCRA receives the aforesaid notice,satttfactory proof and
transfer orders to the contrary. NCRA is hereby authorized to remit pursuant to the above division of interest. In the event the aforesaid written notice,satisfactory proof
and transfer orders are npt received by NCRA,NCRA shalt be held harmless for error resulting In over or under payment,or a wrong payment of any sums.
11. Each party hereto ratifies and confirms that oil and gar lease covering such party's Interest,together with all gas sales contracts,unit designations or other agreements
pursuant to which gas and Ilquld hydrocarbons therefrom are being produced,processed and sold under this division order.
12. The term oil as used herein Shall be interpreted under such provisions hereof es are applicable,as Including gas and distillate,condensate,and other liquid hydrocarbons
produced with Or extracted from such gas, except that there being no posted price for gas,the price or market value of gas shall be that price received by NCRA in Its sale of
the gas,and the price for the above shown liquid hydrocarbons shall be the price between NCRA and the purchaser or the operator of the premises.
13. This division Order shell become valid and binding on each and everyone of the undersigned as soon as signed by him,regardless of whether or not It has been signed
by ether parties,and shall be.binding upon the undersigned,their assigns and successors In interest and shell inure to the benefit of NCRA,Its successors and assigns.
•
Witness: Attest: a Owner's SI nature:
ff � BOARD OF COUNTY COMMISSIONERS
X s. ` ` ! WELD COUNT . CO ORADO
. BY:
� r
1 i e e : La
lepuryt o v,Crerk G
-� yr/TITLE: Chairman
•
±JiiC.�
n Owner's Address: P.O. Box 758
r, qoak Greeley, CO 80632
d t_ f� �1
84-6000-813
Owner's Social Security or Tax Account No.
• 870453
J
N ,., _ Nationdl Cooperative Refinery Associatipn
1775 SHERMAN STREET, SUITE 3000 • DENVER, COLORi 4 Sb3 .403/8S7-0683
qso
- �
Cmde Oi/
May 29, 1987 n, 3 00 1 1987 Division
iin
DEAR INTEREST OWNER:
Effective May 20, 1987, NCRA became first purchaser of the crude
oil production from several Colorado wells operated by Diversified
Operating Corporation. NCRA is now responsible for disbursing oil
proceeds to you. Formerly you received revenues from Marathon Oil
Company.
In order to distribute revenues to you, we have prepared and
enclose two (2) copies each of our Division Order(s) for your execution.
Division Orders for ell the Diversified wells have not yet been prepared;
• however, we anticipate completion of all Division Orders shortly.
Please review the Division Order(s) , and should the same meet with
your approval , please:
1 ) Sign in the spaces provided,
2) Have your signature witnessed or attested,
3) Insert your Social Security or tax account number,
4) Complete your address for receipt of run checks, and
5) Return one (1 ) fully-executed copy of the Division Order(s)
to my attention at the above address. You may retain the
remaining fully-executed copy(s) for your records.
As soon as we receive your properly executed Division Order(s) ,
and providing title to your interest is clear, we should be able to
place your account in a pay status. Please note that in order to insure
payment on June 25, 1987, we must receive your properly executed
Division Order(s) no later than June 12, 1987.
Thank you for your assistance and cooperation. Please let us know
if you have any questions.
Sincerely,
bailor huro4-
Shelley Brook
Division Order Coordinator
Crude Purchasing Department
SB:pja
enclosures
873453
Supplying Refined Fuels FARMLAND INDUSTRIES, INC., KANSAS CITY. MISSOURI • FARMERS UNION CENTRAL EXCHANGE, INC., ICENEXI, SAINT PAUL, MINNESOTA
To Our Member-Owners GROWMARK. INC.. BLOOMINGTON. ILLINOIS• LAND O'LAKES, INC., MINNEAPOLIS. MINNESOTA •MFA OIL COMPANY. COLUMBIA, MISSOURI
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