HomeMy WebLinkAbout860524 RESOLUTION
RE: APPROVE OIL AND GAS DIVISION ORDER FROM GOLDEN BUCKEYE
PETROLEUM CORPORATION, 12600 WEST COLFAX AVENUE, SUITE B-200 ,
DENVER, COLORADO 80215 , 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 Golden Buckeye Petroleum Corporation, and
WHEREAS, said lease covers land more particularly described
as follows:
Township 5 North, Range 64 West, 6th P.M.
Section 15: W/2SW/4
Weld County, Colorado
WHEREAS, Golden Buckeye Petroleum Corporation has submitted
an Oil and Gas Division Order on the subject property, and
WHEREAS, Weld County is entitled to an eighteen percent
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 and Gas
Division Order as submitted by Golden Buckeye Petroleum
Corporation, 12600 West Colfax Avenue, Suite B-200 , Denver,
Colorado 80215 , 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.
O/) // , /^ >.; k-/-1;w-
A-00/.5 860524
Page 2
RE: DIVISION ORDER - GOLDEN BUCKEYE PETROLEUM CORP.
The above and foregoing Resolution was , on motion duly made
and seconded, adopted by the following vote on the 28th day of
May, A.D. , 1986.
� ( BOARD OF COUNTY COMMISSIONERS
ATTEST: � WELD COUNTY, COLORADO
Weld County Clerk and Recorder
and Clerk to the Board cqu ,, C airman
s?1 t Cry/0 iv-iv '
J G<, '" � s,a., cy, . o `em
D putt' Cunty Cle k
APPROVED AS TO FORM: Gene R. Bran ner.
ei #74,
•
C.W. ,
C County Attorney ^d4�
Fran Ya
4
860524
AR2055203
OIL AND GAS DIVISION ORDER
TO: GOLDEN BUCKEYE PETROLEUM CORPORATION DATE: May 20, 1986
12600 West Colfax Avenue Suite B-200 PROSPECT: 62-01
Denver, Colorado 80215 North Kersey
The undersigned and each of us hereby guarantee and warrant unto Golden Buckeye
Petroleum Corporation (hereinafter referred to as GBPC) that they are the owners of
interests in the below-described well or mineral rights therein legally entitling them to the
be
paid or to receive the proportionate part of production or the value or proceeds
nefrofrom
the
sale thereof represented by the decimal fractions appearing opposite
subject well being:
LOUSTALET 15-1 WELL
spacing unit described as follows:
Township 5 North Range 64 West, 6th P. M.
Section 15: W/2SW/4
Weld County, Colorado
Containing 80 acres, more or less
Limited to oil and gas produced from the surface of the ground to and including the
stratigraphic equivalent of the depth drilled by the Loustalet 15-1 Well.
Effective as of the date of first production, and until further notice, GPBC is hereby
authorized to deliver for sale all crude oil, distillate, and/or condensate produced from
the well, to sell same, and to give each owner credit therefore, and to receive and to give
each owner credit for all proceeds derived from the sale of natural gas produced from the
well as set forth below.
CREDIT TO ROYALTY INTEREST
FOR DIVISION
EXHIBIT "A" HERETO
AND, BY THIS REFERENCE, ADE A PART HEREOF.
The following covenants are also part of this division order and shall become valid and
binding upon each and every interest owner above named upon execution hereof by such
interest
nd pon s or her sss have o signed.
and assigns, without
regard to whether any other interest owner or owners
FIRST: Each owner's interest hereunder as to natural gas and natural gas plant
products shall be paid in accordance with the price or prices established in the applicable
gas purchase contract to contract executed by GBPC, pursuant to which such natural gas and
natural gas plant products are sold, including any modifications or amendments of such price
or prices resulting from: (i) action of the Congress of the United States pursuant to
existing or future legislation; or (ii) action of the Federal Energy Regulatory Commission,
or any successor or other governmental authority having jurisdiction in the premises
pursuant to and order following a hearing, settlement proceeding, or rulemaking; or (iii)
the decision of a court of competent jurisdiction.
SECOND: The crude oil, distillate, and/or condensate received and purchased pursuant
to this division order shall become the property of GBPC as soon as such crude oil,
distillate and/or condensate is received into the custody of GBPC, or that of any pipeline
company designated by each owner. Such crude oil, distillate, and/or condensate shall be
delivered f.o. b. to GBPC, or to any pipeline company designated by GBPC which gathers and
receives the same, and shall be paid for at the best price obtainable for the same kind,
quality and regulatory tier of crude oil, distillate and/or condensate from the field in
which the well is located on the day of receipt thereof. Each owner agrees to bear his
proportionate part of any trucking or treating charges that may be necessary to deliver the
crude oil, distillate and/or condensate to any gathering system or pipeline. Pipeline
grades and measurements shall govern and control in all settlements.
THIRD: Payments shall be made monthly to each owner at the address indicated below by
check mailed during the month following the month in which receipt of payment
for paroduction
ion
is received by GBPC from the purchaser of said production; provided that if any
hereunder is less that $25.00, payment therefore may be withheld, without interest, until
such time as the total of accumulated amounts due each owner shall be paid the total amount
theretofore accumulated to such owner's credit. In no event, however, shall payment on
accumulated amounts be withheld longer than one year from the date that-the first of such
payments is due the owner.
FOURTH: Each owner authorizes GBPC to withhold from the proceeds of any.and all 'crude
oil, distillate, natural gas, and/or condensate referred to herein the amount 'of any tax
placed thereon, or for the production thereof, by any governmental authority, and to pay
such tax on behalf of each owner. Qualities and quantities of such crude oil, distillate,
and/or condensate shall be determined by either the practice prevailing in the area in which
same is produced, and in accordance with any applicable rules and regulations of any
governmental agency having jurisdiction and control of the production and handling of crude
oil, distillate and/or condensate produced from the well, or, if such crude oil, distillate
and/or condensate is being sold under the terms of any written contract of sale, by the
methods specified in such contract. Each owner further agrees that, if GBPC is required to
B 1114 REC 02055203 05/29/86 10: 39 $0. 00 1/003
F 0923 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
dehydrate, treat , r•ompress, gather and transport any natural gas before delivery to the
purchaa r thereof, WWI: shall be entitled to deduct or withhold each owner'o proportionate
part of the t:c,st of such dehydration, treatment, compression, rJatht.rrnrd and transportation
Item each owuerr's interest in the proceeds obtained from the sale DI s;uch ;,,,tu,•al gas.
FIFTH: In case of any adverse claim of title at any time during the term of this
division order-, each owner agrees to furnish complete abstracts of title and other evidence
tit title satisfactory to GBPC and hereby authorizes GBPC to withhold payment. w.ithr,ut.
obligation to pay interest on the amount so withheld until satisfactory .rude: city shall be
furnished against such adverse claim or until the title shall be made satisfactory to GBPC.
each owner further agrees, as to the interest of such owner, in the event :suit is filed in
any court affecting title to said crude oil, distillate, natural gas and/or condensate
either before or after severance, to notify GBPC in writing of such suit and to indemnify
and hold GBPC harmless against any and all liability for loss, cost, damage, and a:•:pence
that GBPC may suffer or incur on account of receiving and paying each owner the proceeds
derived from the sale of such crude oil, distillate, natural gas and/or condensate. If
(iltPC, pursuant to the provisions hereof, withholds payment for any part of r each owner from whom payment is so withheld agrees toindemnify nd hold G#tl"C�harrmleeU�;efrom
liability _for any tax, together with all interest and penalties incident thei eto, impt,;.:ed c,r
aaaesaed atla.iru t., or paid by GBPC on account of the sum or sun's so withheld from payment to
:,uch owner. Each owner from whom payment is so withheld further agrees that. Liii!•,;: may deduct
all such t.axea, interest and penalties so paid by GRPC from any rums that at owes to such
owner.
SIXTH: Each owner agrees to notify GBPC of any change of ownership of the well or any
interest therein, and no transfer of interest shall be binding upon GBPC until a transfer
order and the recorded instrument evidencing such transfer, or a certified copy thereof,
shall be furnished to GBPC. Transfer of interest shall be made effective no later than the
first day of the calendar month following the month in which notice of such transfer is
received by (AMC.
SEVENTH: GBPC is hereby relieved of any responsibility for determining it and wt,en any
of the interests set forth herein shall or should revert to or be owned by other parties s as
a result of tl,e completion or discharge of money or other payments from such interests. The
own era who sign this division order and whose interests are affected by such money ru other
payments, if any, assume such responsibility and shall give GBPC notice in writing by
registered letter addressed to GBPC at the captioned address, when any such money or other
payments have been completed or discharged or when any division of interest other than that
se-t. forth above shall, for whatever reason, become effective and to furnish transfer orders-:
ac,::,-,rdingly. In the event GBPC does not receive such notice, GBPC shall be held harmless
and is hereby released from any and all damage or loss that might result from overpayment.
EIGHTH: Each owner who is the owner of a royalty interest in the weil (collert.ive.ly,
the "#toyalt.y Owners" ) or any part thereof, by executing the division order, hereby arlreau
that any unit described or referred to in this division order and in the leases or in the
i.,atrument or instruments creating any such unit, insofar as any such unit affects the
royalty interests at the undersigned owners, is in full force and effect, that any such unit
has teen properly created, and any such unit is hereby ratified and confirmed. In
ctinw•iderata.)n of the premises, each royalty owner does hereby further lease, let, and
demise the prnpert.y insofar as it is covered and affected by lease or lease.; „t record unto
the_ owners and holders of said lease or leases, subject to and in accordance with each and
all of the terms and conditions set forth in the applicable lease or leases, Ors have been amended. Each royalty owner does hereby further agree that all land tince ludedneiY
arty such unit shall be treated for all purposes (except the payment of royalties on
production from such unit) as if it were covered by each of said leases so included therein,
amid production of crude oil, distillate, natural gas and/or condensate on any part of the
acreage included in said unit shall he treated as production from the land t.overee1 ny each
such lease. In the event that this division order relates to a unit, each royalty owner-
does hereby further agree that from and after the effective date of this division osier, it
lieu of the royalty specified in said lease or leases affecting the royalty interest of such
loyalty owner , such royalty owner shall receive as his portion of all crude oil, dis•ti.11ate,
natttm a.l gas and/or condensate production from said unit only the unitized royalty .i:,t rest
set forth above_.
NINTH: Working interest owners and operators who sign this division orde', , and each of
them, guar ar,t.. , and warrant for the benefit of GBPC, and that of any pipeline or other
carrier designated by GNP(: to run or transport such crude oil, distillate arad/or condensate,
that any crude oil, distillate and/or condensate tendered hereunder has beer, and will be
produced and handled in compliance with the Fair- Labor Standards Act of 1g38, aad any
aaendments thereto, and all other federal, state and municipal laws, rules and regulations.
TENTH: This division order shall remain in full force and effect until cancelled by any
party hereto upon giving sixty (60) days written notice in advance of any such cancellation
wrench shall be mailed to the respective parties at the addresses shown herein,. Cancellation
by any intere.:.t owner/owners shall nut be effective as to the interest of arty other owner.
W l .' E'_�' A'i I`F: d' SIGNATURE OF OWNER SOCIAL SECURITY tJRITY a OR
ar;e 4 TAX IDENTIFICATION #
�, -' ^I% BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, CO #t DO
4. — X 84-6000-813
�1 ..Name: - - --436By: Title: Chairman
M;,i l i riq address:X X Board of County Commissioners
P.O. Box 758 l'a .. aaaa.a.a
.___Greeley i_ C0 80632
p)..
B 1114 REC 02055203 05/29/86 10 : 39 $0. 00 2/003
F 0924 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
EXHIBIT "A"
LOUSTALET 15-1 WELL
OWNER IED
BEFORE NAND EAFTER ST NPAYOUT
The First National Bank of 1/4 of 79/80 of 17. 5% = . 04320313
Fort Morgan
David Clark Littler 1/4 of 79/80 of 12. 5% _ .03085937
Francis M. (Mike) Loustalet 67. 5% of 1/2 of 79/80 of 12. 5% _ .04166015
Ardith Renee Loustalet, single 5.0% of 1/2 of 79/80 of 12. 5% _ .00308594
Wade Andre Loustalet, a single man 5. 0% of 1/2 of 79/80 of 12. 5% = . 00308594
Gary H. Loustalet and Barbara E. 5.0% of 1/2 of 79/80 of 12. 5% = . 00308594
Loustalet, husband and wife
Warren H. Loustalet, a married man
dealing in his sole and separate 17.5% of 1/2 of 79/80 of 12. 5% = . 01080078
property
Board of County Commissioners of 1/80 of 18.0% = .00225000
Weid County, Colorado ON ORDER TO THIS AS PART OF THE SUCH, SHOULDINOTI WHICH
BE REMOVED.
B 1114 REC 02055203 05/29/86 10 : 39 $0.00 3/003
F 0925 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
I .: s .'l
/.y; �iZ.Trxl pilr�
AIIIIIIIIIIIk
GOLDEN BUCKEYE PETROLEUM CORPORATION
May 21, 1986
virt
Board of County Commissioners
915 10th Avenue
Greeley, CO 80631
RE: Loustalet 15-1 Well
North Kersey Prospect
62-01
Weld County, Colorado
Gentlemen:
Enclosed you will find two copies of the Division Order for the referenced
well. The Division Order indicates the interest you own in the production received
from that well.
Please execute each copy of the Division Order in the following manner:
SIGNATURE: Sign your name as shown on the Division Order in
the space provided. Have your signature witnessed.
If signing for a corporation, signature must be
attested, corporate seal affixed and title of
signatory party shown.
SIGNATURE BY SECOND PARTY: If the instrument is signed by attorney-in-fact,
guardian or any party other than the named interest
owner, we must have evidence of the rights vested
in the signatory party.
SOCIAL SECURITY NUMBER OR Insert your number in the space
TAR-T5ERTIFICATION-ROMBER: provided beside your name in the
signature section of the Division Order.
MAILING ADDRESS: Indicate the mailing address to which you wish
payment to be directed. Please notify us
immediately of any change in your address.
Please return one completely signed copy of the Division Order to this office
at your earliest possible convenience. The extra copy is for your file and future
reference.
If you have any questions or require additional information, please do not
hesitate to contact me.
Sincerely,
Golden Buckeye Petroleum Corporation
�.?�C.,•.a.t.CL� '-"",�iG-.tom
Virginia C. (tinny) Martin
Contract Division Order Analyst
VCM/vcm
Enclosure
12600 W. COLFAX, SUITE B-200, DENVER, COLORADO 80215 /(303) 239-9096 860524
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