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HomeMy WebLinkAbout870126.tiff O44- 7 _ c� t3-OPT FOP 2ESCRIBED BY THE PROPERTY TAX ADMINISTR• FORM 920 1/66-1/84 PE JN FOR ABATEMENT OR REFUND OF LS-HOECKEE CO.. DENVER 99905 Petitioners: Use this side only. Denver , Colorado, January 29, , 19..87 City or Town To The Honorable Board of County Commissioners of We Id County Gentlemen: The petition of Mart inex Corporation !! whose mailing address is• 2323 S. Wadsworth Blvd, Denver Colorado ..80227 City or Town State Zip Code SCHEDULE NUMBER DESCRIPTION OF PROPERTY AS LISTED ON TAX ROLL 105516000031-011 11956-A Leasehold Int. W2SW4 16 4 65 (Bruntz #1 ) Martinex Corp respectfully requests that the taxes assessed against the above property for the years A. D. 19 o6 , 19 , 19 , are erroneous or illegal for the following reasons, viz: (Explain completely why the assessment is erroneous or illegal) The 1986 Declaration Schedule for the above described property was filed ink, error on April 15, 1986. An assessment exemptions request should have been filed as the State of Colorado owns a 12.50% interest in this property and, !, therefore, should be exempt from Real Estate Taxes. See attached Division Order Title Opinion dated December 14, 1984. 19 86 19 19 Value Tax Value Tax Value Tax Orig. 183,990. 15,282.22 Abate. 23,000, 1,9.1.038... Bal. 160,990. 13,371.84 Martinex Corporation That L 1w has ....nbt...ye.t paid said taxes. Wherefore your petitioner prays that the taxes, as aforesaid erroneously or illegally assessed, may be abated or refunded in the sum of $ 1 ,910.88 I declare, under penalty of perjury in the second degree that this petition, together with any accompanying exhibits or statements, has been examined by me and to the best of my knowledge, information and belief is true, correct and complete. m L _ yr -.. � �, president - L' _ Petitioner Martinex Corporation Y By Agent Address 2323 S. Wadsworth Blvd. : Denver, CO 80227 /15000tf Ai() � L' >/ 870126 RESOLUTION OF COUNTY COMMISSIONERS WHEREAS, The County Commissioners of Weld County, State of Colorado, at a duly and lawfully called regular meeting held on the 18th day of February , A.D. 19 87 , at which meeting there were present the following members. Chairman Gordon E, Lacy, Commiaaiouer C.W. Kirby,.-.Gene R. Brantner, Jacqueline Johns.ow.and_Fxanls Yamaguchi_ notice of such meeting and an opportunity to be present having been given to the taxpayer and the Assessor of said County and said Assessor Richard Keirnes and taxpayer Joe Mastalerz being present; and (name) (name) WHEREAS, The said County Commissioners have carefully considered the within applica- tion, and are fully advised in relation thereto, NOW BE IT RESOLVED, That the Board does concur with the recommendation of (concurs or does not concur) the assessor and the petition be approved_._, and an abatementittuftllitS be allowed (approved or denied) (be allowed or not be allowed) on an assessed valuation of$ 23,000.00 for $ 1,910.38 rtal tax or the year(s) 19 86 C i o oar o unty Commissioners. STATE OF COLORADO, WELD }ss. County of I, Man..Ann..Fe.ueratein , County Clerk and Ex-officio Clerk of the Board of County Commissioners in and for the County of.._We.ld State of Colorado, do hereby certify that the above and foregoing order is truly copied from the records of the proceedings of the Board of County Commissioners for said Weld County, now in my office. IN WITNESS WHEREOF, I have hereunto set my hand and affixed theseal of said County, at GreeY.,_le -.Co]:oradQ , this 18thday o�gbxuar A. D. 19...$7....Nini 'TI Ql.ulie^r-�^ry County Clerk. '._By. -c-e..' Deputy. ACTION OF THE PROPERTY TAX ADMINISTRATOR Denver, Colorado, Apri) 8 , 19 87 The action of the Board of County Commissioners, relative to the within petition, is hereby ❑ approved; O approved in part $ h denied for the following reason(s) Abatement is not a remedy. Taxpayer's remedy was to pursue remedies as provided in 39-5-122, C.R.S. AT T: .. .. -. / I / Secretary. Property Tax Administrator. ui >..!, ' y7k g �, it t w� w Ee " /off C7 ~ y N c) . O ca.�- W d F4 Lr �. V \ , .< . to" -.a 4.�1 Q 0 O 0.1 w y \_. �` ,,,...O.OF.T! O y z 0 2 wZ s. Si ;� A O � � � A4.1 p� O u a W a a) C O x gca N c.O>1- dila 2 N fd Q. v N to' H y ',�� Y •4 �. C 4 'O O 0 v O H z z 3 O _ O a c, °E id; o0O tl o o " Eadtw � e HQt wdl " c d v , `� b a n (_n a 3 0 a c3 w m ; G �❑ ❑- co Fo o '2eC F — Colorado Department of Local Affairs o <o %?,% ?9\ ***This document was DIVISION OF PROPERTY TAXATION H!-tii o'i filmed with 4/20/87 Mary Anne Maurer * *i Communications. Property Tax Administrator * si s 1876 * Roy Romer Governor April 8, 1987 ` 'F 1 Martinex Corporation 2323 S. Wadsworth Blvd. 5 u.? 3 Denver, CO 80227 cc 0 ) RE: Abatement Petition (-.7,,, ' 1986 Personal Property Tax Weld County Schedule #105516000031-011 D.P.T. #62-07-13 Gentlemen: Please be advised that I have disapproved the above petition in the amount of $1 ,910.38 because neither the valuation nor the tax is erroneous or illegal . The Weld County Assessor's Office received your personal property declaration schedule during April 1986. On May 16, 1986, you were mailed a notice of valuation advising you of the assigned valuation of the production as well as your right to protest this valuation between June 1 and June 25. No protest was filed in 1986; thereby, waiving your administrative remedies . The Colorado Supreme Court pertinently found in Stephens & Co. v. Board of Equalization of the City and County of Denver, 104 Colo. 556 (p. 560 and 561) : " . . . `although it is otherwise where the mistake is made by the taxpayer himself, and is the result of his neglect of some legal duty, or where the facts which would have shown the mistake were within his own possession or within his reach. ' and "So in the instant case it appears from the complaint that the bookkeeper erroneously included in the average valuation of merchandise for a certain twelve-month period merchandise which had never had a taxable situs in the state of Colorado, and merchandise which had been in the state for a period of less than one year from April 1st. This valuation was placed in the tax schedule filed by the taxpayer. No person employed by the taxing agency had any part whatsoever in fixing this valuation. It was the duty of plaintiff in error to file a correct schedule and to know what elements of value and property were listed in that schedule prepared by it. Its failure in that regard was the neglect of a legal duty resting solely upon it. To permit recovery under the facts and circumstances in the instant case daMt a Sherman Street, 623 Centennial Building, Denver, Colorado 80203 (303) 866-2371 . fJ • Martinex Corporation April 8, 1987 Page 2 would endanger the entire tax structure of the state and lead to a multiplicity of suits for refund of taxes . In reaching the conclusion announced we believe our holding to be in harmony with the great weight of authority. " The Weld County Assessor's office relied on the information provided by your company to revalue the production. Because you did not file a protest, the valuation is considered to be an overvaluation, and abatement is not a remedy. Overvaluation is not the basis for an abatement because overvaluations are capable of adjustment by protesting to the assessor in June before the tax bill is mailed the following January. By May 24 the county assessor must notify the taxpayer in writing if the value of land or improvements increases . The notice must state that the taxpayer has the right to protest the increase in valuation . The protest begins the administrative remedies process. The taxpayer should file a protest with the county assessor between June 1 and June 25 of any year in which there is a concern over the assigned value. The final date to file is June 25. By law, the assessor must respond by the last working day in June. If the taxpayer feels the assessor did not grant adequate relief, an appeal may be filed with the County Board of Equalization (the County Commissioners) , the Board of Assessment Appeals, and, finally, to the District Court of the county wherein the property is situated, if necessary. Each year is considered a new assessment year; and if a taxpayer does not initiate the protest to the assessor in June, administrative remedies are waived and the value becomes the basis of the tax bill the following January. Due to the fact that you did not protest the valuation assigned to your property when you were notified of the 1986 value, you waived your administrative remedies for the 1986 tax bill . I, therefore, disapproved your petition. You have the right to appeal my decision . You may file an appeal with the Board of Assessment Appeals within thirty (30) days from April 8, 1987, which is the date of my disapproval . Appeal forms and instructions may be obtained from: Board of Assessment Appeals Department of Local Affairs 1313 Sherman Street, #420 Denver, Colorado 80203 (303)866-5880 Martinex Corporation April 8, 1987 Page 3 If we can answer any further questions you might have, please feel free to contact my office. Sincerely, 14. E Mary Ann Maurer Property Tax Administrator MM:MH:LF:tw mm4lmc • 9arOtc iyy/p 111 * , i ie 4 -1 ;.,,,A.d N'Lf W ,�. -__ 'CI • N ._ 9 I, ,....>_ A' in 1 I R N Is+ 1 'i � - �_. } � .. I _.. CO r '222 li ct o rf' 0 CCW N ' t :.:. y�7As a = m o- i N i ≥ H w O O • •/ •-4 F1.,. N I§₹ ti • • .. ...",. _.:.ww e V g y r a.s r i a re x �, O ST 3 m n-o 7 i Nr 11'1 I IG w .t i • w O i; Rl ., t f SL.ti: Y , S !, iCT ac CO, y O ey�rr r''' w v. O • a Z w � W J U Z A ,.. rn cwt • a 0 0z 4 ry "z tw L 5a CO <U� w - h C1 i cr< m usf W • 0 D - cc. � , MNJ 4.11 Q ''''...1,' Q Y Z -ki a w„ µ1,tId C P•••• S t 3oaikaI I::iai "e wi...'ai'ri<i � � N U 7. n a _. a `'"' Z > sw 's__ __.-. "4 : 0 J o in N CL N OC H m U W i :'; Q rne; a t LM F- ¢ O - N Q -� 4 I wQr �,. F- T ^ >I a F- w0� _ Z X , • O et ¢LL-Er ..' W ` 7 en in a. o w . Z , :It 00 . . U, CC S w' z a• 4: F- 41.1 x w u: n w Z NC{ Y. X W I-a w. 4 f- M > m3z w J 7k a Q —. •w N Q ref W awe__ ~ 4 N Cz,. I'al r."� w f :NJ C =a f Iow WZ - .r-i [t.' ` ! J mom as in O 4 �: .2 ;p, K c-st ,4 W • F ,,..' icy. . iti' ___..hMy l p., +• - '.Vk3Vd?S 1'JN F?? ONI5tl3AOHF WJIi INd HOIl13dff 1.Cli ToFtifieRskiAgliAr's Officr State of Colorado - Iliiiiir 3I5' ,10th Street OIL AND GAS Greeley, Colorado 80631 - REAL AND PERSONAL Pn+JPERTY Assessment Date Due Date Weld DECLARATION SCHEDULEJanuar 1 County . CONFIDENTIAL DATA Y April 15 MAIL TO COUNTY ASSESSOR YOU MUST FILE EVERY YEAR REGARDLESS IF ANY ADDITIONS OR DELETIONS WERE MADE. B.A.CODE T.A.CODE SCHEDULE NUMBER CHANGE OF NAME AND/OR ADDRESS Martinex Corporation 2323 S. Wadsworth Blvd. A. NAME AND ADDRESS(INDICATE ANY CHANGES) Denver, Colorado 80227 DO NOT USE - FOR ASSESSOR ONLY Martinex Oil Code Description Acres Actual Value % Assessed Value Brtuatz #1 - 7110 Primary Prod. S 87%$ 232:3 South Wadsworth 7120 Secondary Prod. 75 Denver, Colorado 80222 • LOCATION OF PROPERTIES (INDICATE ANY CHANGES OR ADDITIONS) 72 Improvements 29 Township 4 North, Range 65 West 74 quip. burn & Section 16: W/2 SW/4 Machinery 29 TOTALS S $ A/ RECEIVED APPROVED 11t�l Iii:.•..,.. .... ._..� i .. . LEASE NAME� OR LEGAL DESCRIPTION COMPLETED ABSTRACT CHGS. SS,11xS~-�L 16 4 65 LATE FILING PENALTY APPLIED YES 0 NOD __ DgmBusiness.Sterted3/77,/R�!1 Type of Product or Service Oil and Gas (in County) Corp.® Partnership❑ Individual ❑ Other C • Name and Address of Previous Owners: STATUS OF PROPERTY(Please heck the Apprppriate Box) %, .•-• '- • •=III NEW BUSINESS OR 0 NEWOWNER(S)(You MUST ATTACH a complete itemized listing of all your property. t 1. is.this the organization's firstreturn) ® Yes r 0 No ' ` . 7.. C:--INVENTORY OF`WELTS" Total No.Wells Indicate Whether Well No. Type Depth Year Drilled 6...r A -A. .' _ •701 ... J-'--I-YQii,Are: r•..,:J.f::..-t.'•: ._.;. -. -..r-,,, ,._,.,•= Total No.Acres EOperator of the Lease 17+—16 Code 11 7,200' 1984 List Fractional int8e0est of ❑Owner of the Leasehold Operator —U— % ❑Owner of the Land PLEASE INDICATE THE LIFE OF THE OIL AND GAS RESERVE IN YEARS UNDER THE CURRENT PRODUCTION RATE 15 YRS. D. PRODUCTION REPORT FOR PREVIOUS YEAR Furnish primary production in section D•1 and secondary production in section D-2 01. PRIMARY PRODUCTION OR RECOVERY Total Sold Transported from Royally liellvered Royalty.Delivered Total Taxable Averaya Pripe Al Produced premises unsold A Dash Only As Product Only WellHeap or (Al (B) (C) (ixc u ion) (Exc u ion) (F) Field Price tul �E� (B+C•O(orE) Well No. Oil (Bbl,) 2,888 2,869 —0— —0— —0— _ 2,869 $ 23.30 /bbl , 14-16 Gas (MCF) 59,025 59,025 —0— —0— —0— 59,025 $ 2.43 /MCF , t• Well No. Oil (Bbl.) Gas (MCF) $ bbl Weil No. $ /MCF Oil (Bbl.) _ $ ,bbl Gas (MCF) $ /MCF D2. SECONDARY, TERTIARY OR RECYCLING METHODS OF PRODUCTION OR RECOVERY Well No. Oil (Bbl.) t $ /bbl Gas (MCF) - ' $ /MCF Well No. Oil (Bbl.) . . • Gas (MCF) t $ /bbl $ /MCF Well No. Oil (Bbl.) $ /bbl Gas (MCF) $ /MCF_ M. METHOD OF SECONDARY, TERTIARY OR RECYCLING RECOVERY, (i.e. water injection, CO2injection,etc.). ell No.Iiiii Well No. Well No. E. ASSESSMENT EXEMPTIONS REQUEST: (Attach separate sheet if necessary.) Exemptions are limited to the fractional interest owned by the Federal Government,the State of Colorado,counties,cities,towns,municipal corporations,tribal councils or other government organizations within the State of Colorado. Q�"I� Name of Government v V 6 Fractional — Lease No.& Legal Description Organization Owning Interest Address Interest Owned • Total Production: Rudolph Ph 'Taxable: ':/Buhl or MCF: 7:fic.. ♦ .a ..-. if .,:c' __ • '. :1:16.:1. .-1. . .- —.... FAIST!NG OF REAL PROPERTY • .List be'ow or attach a separate sheet iistin; ,Idings,fixtures and leasehold improvements ,tructed or installed the previous year. This list shall include the description and location of the property, the date of installation, the original installed cost, and-any additions since , original installation. Buildings,Fixtures and Leasehold improvements Description and Location Date of Installed Cost Additions Since Original Installation Installation G. LISTING OF PERSONAL PROPERTY Furnish a complete listing of all property.Additions and deletions may be listed if a complete listing has been previously filed with the assessor. Item Description Model or Year Date Acquired Original Estimated No. Capacity Mfg. - installed Cost Estimate Remaining New UsedPhysical Useful Life (1) List Personal Property acquired during previous year. (Attach separate sheet if necessary.) Condition in Years Seperator HLP 13k-1 1984 121193 New 10 Tank Battery 1984 ; 3,307 _ New �10 Artificial Lift 1984 4,200 i New 10 (2) List Personal Property sold, traded,or permanently disposed of during previous year. (Attach separate sheet if necessary.) (3) List ALL Mobile Equipment (non-licensed). Attach separate sheet if necessary. . NOTE: The cost, description and year acquired data must be furnished above for those fully depreciated assets still in use. H. DEPRECIATION SCHEDULE (Furnish Information or Attach most current Copy of Federal Depreciation Schedule) a. Group and guideline class b. Date e. Cost or d. Depreciation e. Method of f. Life or g. Depreciation for or description of property acquired other basis allowed or allowable computing rate this year . in prior years depreciation Lease & Well Equipment 1984 19,700 - ACRS 5 yrs 2,955 $ 2 Cost of other fully depreciated assets still in use. $ Total depreciation ,955 I. LEASED, LOANED,OR RENTED PROPERTY (Furniture, Signs, Etc.) (Declare Property Owned By Others Here.) Did you have in your possession on January 1st any leased, loaned,rented machinery, equipment,or furniture, fixtures,signs,vending machines,etc.? ❑ YES ® NO I f yes, list below showing description of this property and name and address of owners. Name and Address of Owner/Lessor Description Model/Serial No. Year Current Cost or Year Installed Total Yearly Rent Mfg. GSA List Price Please furnish details of purchase or maintenance options. J. PURCHASER'S STATEMENT List names and addresses of purchasers of oil and gas products. Attach separate sheet if necessary. Name Address Quantity Asamera Oil (U.S. ) Inc. P.O. Box 118, Denver, Colorado 80201 Oil Natural Gas Associates 1401 17th St. , P.O. Box 5493, Denver, CO 80217 Gas K. DECLARATION THIS RETURN IS SUBJECT TO AUDIT. "I declare,under penalty of perjury in the second degree,that this schedule,together with any accompanying exhibits or statements,has been examined by me and to the best of my knowledge,information,and belief,sets forth a full and complete list of all taxable personal property owned by me or in my posses- sion,or under my control, located in this count ' Colorado on the assessment date of this year;that such property has been reasonably described end its value fairly represented;and that no attempt ma to slea saes gage,quality,quantity or value." CRS 39-5719712) SIGNATURE OF OWNER OR AGENT t'1 r-. 8'7U126 NAME OF OWNER artinex Corporation DATE 4/1.5/86 PRINT NAME OF PERSON SIGNING Martin J. Wohnlich ich PHONE NUMBER {303) 988-4500 PLEASE COMPLETE,SIGN AND RETURN TO THE ASSESSOR ON OR BEFORE APRIL 15 , TUCKER & VAUGHT ATTORNEYS AT LAW WILLIAM TUCKER SUITE 1330 718 SEVENTEENTH STREET . . WESTERN FEDERAL SAVINGS BUILDING GEORGE G VAUGHT JR DENVER.COLORADO 80202 13031571 5291 December 14, 1984 DIVISION ORDER TITLE OPINION Blue Chip Oil , Inc. P.O. Box 5262 Greeley, Colorado 80631 Attention: Mr. Tim Hager President Re: Quantum No. 14-16 Well Weld County, Colorado Gentlemen: Pursuant to your request, we have examined title to the following described lands in Weld County, Colorado, for division order purposes, and render our Opinion thereon as follows: LAND DESCRIPTION Township 4 North, Range 65 West, 6th P.M. Section 16: W/2SW/4 Containing 80 acres, more or less. MATERIALS EXAMINED 1. Copy of Drilling Title Opinion dated July 12, 1984, rendered by the undersigned, and covering mineral title to the described lands for the period of time from earliest public records to June 21, 1984 at 7:45 A.M. 2. Copy of Certificate of Taxes Due dated November 13, 1984 and covering Edward Bruntz and Helen Bruntz's interest in the described lands. 3. Personal examination by the undersigned of the tract indices for the described lands for the period of time from June 21, 1984 at 7:45 A.M. to December 13, 1984 at 8:00 A.M. , as made available at Transamerica Title Insurance Company, Greeley, Colorado. 870126 Blue Chip Oil , Inc. December 14, 1984 Page Two 4. Personal examination by the undersigned of the records in the Weld County Clerk and Recorder's Office as reflected by the above-described tract indices. 5. Copy of the Farmout Agreement dated October 31, 1984, by and between David J. Calvin and Quantum Oil . 6. Copy of the survey dated September 1, 1984, prepared by Cecil J. Osborne and covering the described lands. 7. Copy of schedule setting forth the owners and their respective interests in the Quantum No. 14-16 Well , as prepared by Lauretta J. Flack, Blue Chip Oil , Inc. 8. Copy of letter dated November 14, 1984, from Tim Hager, Blue Chip Oil , Inc. to Martin J. Wohnlich, Martinex Corporation. 9. A search of the files and records of the Colorado Board of Land Commissioners on December 17, 1984 at 10:00 A.M. , insofar as the same pertains to Colorado State Oil and Gas Lease 79/4312-S and the W/2SW/4 of Section 16-T4N-R65W. 10. Copy of Farmout Contract dated June 14, 1984, by and between Amoco Production Company and JRC Oil . 11. Copy of letter dated June 21, 1984, from Amoco Production Company to JRC Oil . 12. Copy of letter dated June 14, 1984, from Amoco Production Company to JRC Oil . 13. Copy of letter dated October 19, 1984, from Amoco Production Company to JRC Oil . 14. Copy of OGCC FORM 5 dated (illegible) , and covering the completion of the Quantum No. 14-16 Well . OWNERSHIP Surface (less 9.22 acres, more or less, traversed by 3 rights-of-way) As to Lot "A", described in the base Drilling Title Opinion Edward Bruntz and Helen Bruntz All As to Lot "B", described in the base Drilling Title Opinion Edward N. Bruntz All 870126 Blue Chip Oil , Inc. December 14, 1984 Page Three Minerals, Oil and Gas Only State of Colorado All OWNERSHIP OF THE PROCEEDS RESULTING FROM THE SALE OF THE OIL AND GAS PRODUCED 'FROM THE QUANTUM NO. 14-16 WELL LOCATED ON THE DESCRIBED LANDS Landowner's Royalty Interest (12.5%) State of Colorado 12.50000% Overriding Royalty Interest (12.5%)* Amoco Production Company 12.50000% Working Interest (75.0%)* Quantum I, Ltd. 37.71000% (50.28% of 75% of 8/8ths) Martin J. Wohnlich 21.36000% (28.48% of 75% of 8/8ths) Blue Chip Oil , Inc. 9.93000% (13.24% of 75% of 8/8ths) David J. Calvin 3.75000% (5% of 75% of 8/8ths) Jack Stahl .75000% (1% of 75% of 8/8ths) Bonnie Charlesworth 1.50000% (2% of 75% of 8/8ths) TOTAL: 100.00000% *See Title Comment and Requirement No. 1 herein. TAXES All real property taxes for the described lands are properly paid to date. LIENS AND ENCUMBRANCES 1. By Deed of Trust dated December 19, 1983, recorded in Book 1016 under Reception No. 1951299 of the Weld County Records, Edward N. Bruntz mortgaged his surface interest in the described lands to the Public Trustee, for the benefit 870126 Blue Chip Oil , Inc. December 14, 1984 Page Four of Granite Home Loans, LTD. , to secure $44,000.00, with interest thereon. Said Deed of Trust does not encumber the mineral estate of the described lands. 2. By Deed of Trust dated November 5, 1984, recorded in Book 1048 under Reception No. 1987833 of the Weld County Records, Edward N. Bruntz mortgaged his surface interest in the described lands to Public Trustee, for the benefit of The Bank of Greeley, to secure a $23,000.00 promissory note (payable on demand) . EASEMENTS AND RIGHTS-OF-WAY 1. By Deed for Right-of-Way dated February 10, 1909, recorded in Book 296 at Page 149 of the Weld County Records, the State of Colorado and the State Board of Land Commissioners for the State of Colorado granted the Board of County Commissioners of Weld County a strip of land 30 feet wide off the south side of the SW/4SW/4 of Section 16, Township 4 North, Range 65 West, 6th P.M. , for public road purposes. 2. By Right-of-Way Easements and Licenses dated December 4, 1980, recorded December 15, 1980 in Book 922 under Reception No. 1844273 of the Weld County Records, The Farmers Reservoir and Irrigation Company granted Panhandle Eastern Pipe Line Company a right-of-way for pipeline purposes over or under and across the Platte Valley Canal as identified by the map set forth on Exhibit "A" and located on the described lands. See Exhibit "A" attached to the base Drilling Title Opinion. 3. By Right-of-Way Grant dated December 16, 1980, recorded in Book 926 under Reception No. 1848127 of the Weld County Records, Frank L. Boulter granted Panhandle Eastern Pipe Line Company a right-of-way for pipeline purposes over a portion of the described lands. See Exhibit "B" attached to the base Drilling Title Opinion. 4. By Pipeline Right-of-Way Grant dated November 1, 1984, recorded in Book 1049 under Reception No. 1988218 of the Weld County Records, Edward Bruntz and Helen Bruntz granted Natural Gas Associates a pipeline right-of-way across the described lands. 5. By Right-of-Way Easements and Licenses dated October 31, 1984, recorded in Book 1051 under Reception No. 1990699 of the Weld County Records, Platte Valley Irrigation Company granted Natural Gas Associates a pipeline right-of-way across the described lands. OIL AND GAS LEASES Lease No. 1 Title: Colorado Oil and Gas Lease No. OG 79/4312-S Dater July 18, 1979 870126 Blue Chip Oil , Inc. December 14, 1984 Page Five Recorded: October 15, 1979 in Book 884 under Reception No. 1806364 of the Records of Weld County, Colorado Lessor: State of Colorado Lessee: Larry F. Lang Land Covered: E/2NE/4 and W/2SW/4 of Section 16, Township 4 North, Range 65 West, 6th P.M. , containing 160 acres, more or less Primary Term: 5 years (Extended by Extension of Oil and Gas Lease No. 79/4312-S, approved June 20, 1984) Royalty: 1/8 Annual Rental : $1.00 per acre per year, payable on or before July 18 every year. Rentals must be timely paid throughout the entire life of the Lease, whether extended by production or otherwise. Depository: State Board of Land Commissioners, 1313 Sherman Street, Denver, Colorado 80202 Unit or Pooling Clause: Yes Shut-In Gas Clause: Yes, Lessor may grant Lessee a sus- pension of the obligation to produce until a suitable market for such gas can be found, and during any such suspension period, it shall be deemed that gas is being produced in paying quantities. Lesser Interest Clause: Yes Entirety Clause: No Assignment Clause: No assignment is binding upon Lessor until same has been approved by Lessor. Warranty of Title: Yes Special Provisions: (1) Lessee agrees to make a monthly production report to Lessor on or be- fore the last day of every month, to- gether with a full royalty payment for such month. 870126 Blue Chip Oil , Inc. December 14, 1984 Page Six (2) Assignments of undivided inter- ests or the creation of overriding royalty interests will not be recog- nized or approved by Lessor, and the effect of same will be binding only as to the parties thereto. Although not binding upon Lessor, all instru- ments affecting the subject Lease herein should be filed in the records of the Mineral Department of the State Board of Land Commissioners; (3) Lessee is to notify Lessor of the location of each well before commencing drilling thereon. No drilling operations are to be con- ducted within 200 feet of any building, water well or other improvement; (4) Within 30 days after the comple- tion or abandonment of any well drilled on the lease, Lessee is to file with Lessor a complete and correct log of such well ; (5) Lessee is liable for all damages to the surface of the lands involved; (6) Should Lessee discover valuable products other than hydrocarbons on the leased premises, Lessee must report same to Lessor within seven days, and Lessee will have no right thereto. ASSIGNMENTS OF OIL AND GAS LEASE Assignment No. 1 Date: August 13, 1983 Recorded: In Book 884 under Reception No. 1806364 of the Records of Weld County, Colorado Assignor: Larry F. Lang Assignee: Amoco Production Company Interest Assigned: All right, title, interest and claim in Lease No. OG 79/4312-S Overriding Royalty Reserved: None Proportionate Reduction Clause: No 870126 Blue Chip Oil , Inc. December 14, 1984 Page Seven Assignment No. 2 Date: November 16, 1984 Recorded: November 19, 1984 in Book 1049 under Reception No. 1988945 of the Weld County Records. Assignor: Blue Chip Oil , Inc. Assignees: Martin J. Wohnlich and Martinex Corporation Interest Assigned: 14.24% WI (10.68 NRI) in Lease No. OG 79/4312-S to each of the above Assignees Overriding Royalty Reserved: None Proportionate Reduction Clause: No Reassignment Clause: No ASSIGNMENTS OF OVERRIDING ROYALTY INTEREST None of record STATUS OF TITLE REQUIREMENTS FROM DRILLING TITLE OPINION DATED JULY 12, 1984 REGARDING THE W/2SW/4 OF SECTION 16 1. Unsatisfied. This Comment concerned record ownership of the subject Oil and Gas Lease. Amoco Production Company is the current record owner. Said Lease, however, is subject to a Farmout Contract dated June 14, 1984, between Amoco and JRC Oil ; and a Farmout dated October 31, 1984, between David J. Calvin (JRC Oil ) and Quantum Oil . Further, we have conditionally given effect to the above-described working interest ownership of Blue Chip Oil , Inc. , Quantum I, Ltd. , Jack Stahl , Bonnie Charlesworth, David J. Calvin and Martin J. Wohnlich. Requirement: Immediately following satisfaction of all contractual obligations, you should execute and record all necessary assignments of the subject Lease, insofar as it covers the described lands and the Quantum No. 14-16 Well , so that the Weld County Records reflect the ownership as set forth herein. 2. Satisfied. 3. Advisory only. 810126 Blue Chip Oil , Inc. December 14, 1984 Page Eight 4. Advisory only. 5. Satisfied. 6. Advisory only. ADDITIONAL TITLE COMMENTS AND REQUIREMENTS 7. Division Orders should be prepared for execution by those owners shown in this Opinion to be entitled to share in the proceeds of production from the Quantum No. 14-16 Well . Requirement: As stated above. 8. We have tabulated leasehold interests in the described lands based upon an acreage proration within the described lands only. Requirement: You should insure that payment of proceeds of production from the described lands as set forth above is in compliance with all pooling and unitization orders and agreements pertaining to the described lands. Subject to the Title Comments and Requirements set forth above, and based on the examined materials, it is our opinion that the proceeds of the production of of and gas produced from the Quantum No. 14-16 Well located on the described lands may be distributed in the manner indicated in this Opinion. Very truly yours, TUCKER & VAUGHT By: (�-1l l ow.l George G. Vaugh., Jr. GGV:dms u/0126 v ci4\fi,tf MARY ANN FEUERSTEIN I OFFICE OF WELD COUNTY CLERK AND RECORDER lr Aim DEPARTMENT OF CLERK TO BOARD WU 4225 PHONE (303) 356-4000 EXTk12B ge P.O. BOX 459 GREELEY, COLORADO 80631 COLORADO February 4, 1987 Martinez Corporation 2323 S. Wadsworth Blvd. Denver, CO 80227 Dear Sir: This is to advise you that the Weld County Board of County Commissioners will hear your petition for tax abatement or refund on the property described as: 11956-A Leasehold Int. W2SW4 16 4 65 (Bruntz #1) Martinez Corp. This meeting is scheduled for Wednesday, February 18, 1987, at 9:00 A.M. The meeting will be held in the Chambers of the Board, Weld County Centennial Center, First Floor, 915 10th Street, Greeley, Colorado, at the above specified time. If you have any questions concerning this matter, please do not hesitate to contact this office. Sincerely, Mary Ann"Feuerstein Weld County Clerk and Recorder and Clerk to the Board �� Deputy County Clerk RC: Assessor 870126 t, means r .».4 c . d R taue a ih e xtr t :4 X13 1. , van' afr. a. 4 A i ..74-44 hb i e n H itak of �t t+ ' Martinex Corporation 4,- 4/.1. ,i eg IF s 'i! 2323 S. Wadsworth Blvd. x Denver, CO 80227 ` 411,r ' fy m 4, _ N ,�, r ;; c' y I , ! k // k ' °u ki it Y[ /'" G tfrja6 , 3 .41 f Af Al f', c----- r ,;* .�, ', x 1/4,'E I ,� 4, r ui 7.7.1.',/-0 . Ab . r . .n t 14 ." 1 1aE �� 4�. l^ i VI ?IltY,, 4 .19 'p '4I"lc _R Y_TT)' /`b+ DOTST1C RETURN REC rq J j 1 ' • s p. C T-I 4 -'. ' 7" (1 i J 4 ,t+ N o O N 0. 30 > Ya N a0 1- O b - OCO - 3 v zr. y O an t+ 9-1 0 ai u m > N N 0 XN (a 6'10126 Petition for Tax Abatement or Refund mailed to State of Colorado, Division of Property Taxation on February 19, 1987, for Martinex Corporation and United Bank of Greeley, Trustee for Walter Fleischmann, c/o Walter Craig. v ' rkrtyAn..."za I t CD W C m W W M La N C • re O CO M '1 m H. r t • fD O n ht, 13 t. n Pi O B o n w r-ho - W Oo 'dO d -. O ( O [n 'S 'i N rt O N o 'sPt, a W m m o 0 o m ri - re rt w u f x 7 w .. o re e I sr;Afff Psi;°#mr alfIn 41"'. x7 '" 'a' " „ ^; i .x.5 , Crr -g ,,m � 'ifamonet• 'soda t fix y�$Y State of Colorado a � ,/ r,�. h Y I .:' Division of Property Taxation 4 �' I, 1313 Sherman Street , . Denver, CO 80203t L. g R"�4kFN4Ms 3Yf+My^', jtl'-f S 1 ,. 2 , ,r to •nea . a1`, r fit' v 1:.3 6 p `',,BLS' k , a+ . .' ( �`F. ' ... ,4 C4 11 ' ` c , , a . Gr itb_ be Fr "- y . r I"y 'xwr r . -ti t:Ss'"" v Y;s M 1. M Fora aft,F b..I986 " DOMEsTIC RET'i,., .RECEIPT M0.rfirie+fc. (4 ilex rki5chm0.t - 8'70126 Hello