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HomeMy WebLinkAbout850038.tiff RESOLUTION RE: APPROVE OIL AND GAS DIVISION ORDER FROM MACEY AND MERSHON OIL, INC. , 1600 BROADWAY, SUITE 2150 , DENVER, COLORADO 80202-4970 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 Macey and Mershon Oil, Inc. , and WHEREAS, said lease covers land more particularly described as follows: Township 1 North, Range 65 West Section 2 , NEa Weld County, Colorado WHEREAS, Macey and Mershon Oil, Inc. has submitted an Oil and Gas 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 and Gas Division Order as submitted by Macey and Mershon Oil, Inc. , 1600 Broadway, Suite 2150 , Denver, Colorado 80202-4970 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. LL aU�`� i 850038 Page 2 RE: DIVISION ORDER - MACEY AND MERSHON The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 2nd day of December, A.D. , 1985 . BOARD OF COUNTY COMMISSIONERS ATTEST: .«�( • WELD COUNTY, COLORADO Weld County Jerk and Recorder �nww� ,ncsr-� and Clerk to the Board J c ine J h son, Chairman 44O g BY: ci t.- ene R. Brantner, Pro-Tem putt' County Cl rk EXCUSED APPR ED AS TO FORM: C.W. K . b J C• :?` ac' County Atto y % i///�i .t///L✓/ Fr: k a `. • •' hi Oil and Gas Division Order Property described as: McGill 111 NE/4 Section 2-T1N-R65W - Weld County. State of Colorado ,and in fl commencing with First Runs. Credit To(Name of Owner) Division of Interest BP0/BFP APO/BFP APO/AFP Weld County .125 of 146.405/307 .96 = .0594253 .0594253 .0594253 W c/o Board of County Commissioners A 915 10th Street n Greeley, CO 80631 B 1093 REC 02033895 12/02/85 13: 32 $0.00 2/002 F 1286 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO mm 2N ORR - Overriding Royalty Interest WI - Working Interest LOR - Land Owner' s Royalty PP - Production Payment BP0 - Before Payout APO - After Payout BFP - Before Force Pooling AFP - After AFP - After Force Pooling Fore- Poolin) AR2033895 Oil and Gas Division Order MACEY & MERSHON OIL INC. Property McGill #1 Suite 2150 1600 Broadway October 12 1985 _. Denver, Colorado 80202 Each of the undersigned OWNERS guarantees and warrants he is the owner of the interest set out opposite his name on the reverse side hereof in oil and gas or the proceeds from the sale of oil and gas from the property described on the reverse side hereof, and until further written notice either from you or from us. the undersigned owner and all other parties executing this instrument hereby authorize you. your successors or assigns to receive and measure such sales in accordance with applicable governmental rules and regulations and to give credit as set forth on the reverse side hereof. The following covenants are parts of this instrument and shall be binding on the undersigned.their successors. legal representatives. and CV O U assigns: O Oil: Oil sold hereunder shall be delivered f.o.b. to the carrier designated to gather and receive such oil. and shall become your property upon receipt thereof by the carrier designated by you or by any other purchaser to whom you may resell such oil. The term "oil"as r-I 0 used in this division order shall include all marketable liquid hydrocarbons. ti Should the oil produced from the herein described land be commingled with oil produced from one or more other separately owned G tracts of land prior to delivery to the designated carrier, the commingled oil sold hereunder shall be deemed to be the interest of the a undersigned in that portion of the total commingled oil delivered which is allocated to the herein described land on the basis of lease O meter readings or any other method generally accepted in the industry as an equitable basis for determining the quantity and quality O X of oil sold from each separately owned tract. Such formula shall be uniformly applied to all owners of an interest in the tracts of land O gy, involved. V)IA Should the interest of the undersigned in the oil produced from the herein described land be unitized with oil produced from one or amore other tracts of land,this instrument shall thereafter be deemed to be modified to the extent necessary to conform with the O applicable unitization agreement or plan of unitization, and all revisions or amendments thereto,but otherwise to remain in force and U effect as to all other provisions. In such event,the portion of the unitized oil sold hereunder shall be the interest of the undersigned W'. in that portion of the total unitized oil delivered which is allocated to the herein described land and shall be deemed for all purposes N R to have been actually produced from said land. m „ ra You agree to pay for the oil sold hereunder at the price posted by you for oil of the same grade and gravity in the same producing m field or area on the date said oil is received by you or the designated carrier. If you do not currently post such a price. then until ^I a such time as you do so. you agree to pay the price established by you. You are authorized to reduce the price by those truck. barge. tankcar.or pipe line transportation charges as determined by you. N a Should the oil sold hereunder be resold by you to another purchaser accepting delivery thereof at the same point at which you take co U title.you agree to pay for such oil based upon the volume computation made by such purchaser and at the price received by you for such oil,reduced by any transportation charges deducted by such purchaser. N Quality and quantity shall be determined in-accordance with the conditions specified in the price posting You may refuse to receive O H N N W any oil not s considered fr as beha se .merchantable y you. � � Gas: Settlements for gas shall be based on the net proceeds realized from the sale thereof. after deducting a fair and reasonable charge PG for compressing and making it merchantable and for transporting if the gas is sold off the property. Where gas is sold sub:eel to W regulation by the Federal Power Commission or other governmental authority,the price applicable to such sale approved by order of top such authority shall be used to determine the net proceeds realized from the sale. GIP1 P1 Settlements:Settlements shall be made monthly by check mailed to the respective parties according to the division of interest herein in specified at the latest address known by you. less any taxes required by law to be deducted and paid by you applicable to owner's en z interest. o 2 Evidence of Title:The oil and gas lease or leases. and any amendents. ratifications.or corrections thereof, under which said gas and/or oil is produced are hereby adopted. ratified, and confirmed as herein and heretofore amended. In the event any dispute or question O arises concerning the title to the interest of the undersigned in said land and/or the oil or gas produced therefrom or the proceeds UPC thereof. you will be furnished satisfactory abstracts or other evidence of title upon demand. Until such evidence of title has been Wa furnished and/or such dispute, defect or question of title is corrected or removed to your satisfaction, or until indemnity satisfactory to you has been furnished, you are authorized to withold the proceeds of such oil or gas received and run. without interest. In the en in event any action or suit is filed in any court affecting the title to the interest of the undersigned in the herein described land or the ON OD oil or gas produced therefrom or the proceeds thereof to which the undersigned is a party.written notice-of the filing of such suit or O N action shall be immediately furnished you by the undersigned. stating the court in which the same is filed and the title of such suit or r4 rl action. You will not be responsible for any change of ownership in the absence of actual notice and satisfactory proof thereof. pa fx, Contingent Interests:Whether or not any contingency is expressly stated in this instrument.you are hereby relieved of any responsibility for determining when any of the interests herein shall increase,diminish. terminate. be extinguished or revert to other parties as a result of the completion or discharge of money or other payments from said interest, or as a result of the expiration of any time or term limitation(either definite or indefinite). and. unless you are also the operator of the property.as a result of an increase or decrease in production.or as a result of a change in the depth.the methods or the means of production. or as a result of a change in the allocation of production affecting the herein described land or any portion thereof under any agreement or by order of Governmental authority. and until you receive notice in writing to the contrary, you are hereby authorized to continue to remit without liability pursuant to the division of interest shown herein. Warranties: Working Interest Owners and/or Operators, and each of them, by signature to this instrument, certify. guarantee and warrant. for your benefit and that of any pipe line or other carrier designated to run or transport said oil or gas,that all oil or gas tendered here- under has been and shall be produced from or lawfully allocated to the herein described land in accordance with all applicable Federal. state and local laws, orders, rules and regulations. =a This instrument may be executed by one or more, but all covenants herein shall be binding upon any party executing same and upon __' his heirs.devisees.successors, and assigns irrespective of whether other parties have executed this instrument. The undersigned agrees to save Macey & Mershon Oil Inc. harmless and indemnifies Macey & Mershon, its successors and assigns, from and against any and all loss, cost, damage, charge or expense which Weld County may suffer or incur on account of payments made to Weld County for 100% of the oil and/or gas as herein provided. BOARD OF COUN Y COMMISSIONERS, WELD COUNTY, COLORADO x 915 10th Street, P.O. Box 758 z —_ -- � N e Street or Bon No. x 84-6000-813 x Greeley, CO 80532 Social Security for Tax ID)Number City, State, Zip ""_ Name Street or Box No.•i/// �..: Attest �_/� tr ( :: ,j Social Security for Tax ID)Number City, State, Zip 9 Y'De ut Street or Box No. er;T Name T,e'I ) By Tax ID Number City, State, Zip _, I / I • :tie; �,.i. _.cx;a( 0t`7. • t�letttU.- .- ,, [rv. ppr-- IIrz ti°112 21ggs Re: Oil and Gas Division Order c �.= J Dear Royalty Owner: ✓ Enclosed are two copies of an Oil and Gas Division Order for your signature, along with a letter of instructions. Please sign both copies of the Division Order as your name appears, set forth your Social Security number, have your signature witnessed, and return one fully executed copy to us in the enclosed envelope. You may keep the other copy of the Division Order for your files. Disbursement of your share of the proceeds on the captioned well will be made shortly upon receipt of all of the signed Division Orders (if not being held in suspense pending satisfaction of title requirements). If you have any questions concerning this matter, please do not hesitate contact us. Very truly yours, MACEY & MERSHON OIL INC. Nanci Schroeder Landman NS:lkk Enclosures -- r MACEY & MERSHON OIL INC. SUITE 2150 • 1600 BROADWAY • DENVER.COLORADO 80202-4970 • (3031861 9183 //z/ie c"',,j; TO: OWNERS WHO MAY QUALIFY FOR EXEMPTION FROM WINDFALL PROFIT TAX. The Economic Recovery Tax Bill of 1981 provides that beginning in 1982 and in subsequent years, specified amounts of a qualified royalty owner ' s royalty production are exempt from Windfall Profit Tax. The amount of exemption is 2 barrels per day for 1982 through 1984 and 3 barrels per day for 1985 and thereafter. For you to take advantage of this exemption, you must certify to the purchaser (or other withholding agent) by using IRS Form 6783 . This certification form requires that you certify under the penalties of perjury, on a property by property basis , each property that you want the exemption applied to. Enclosed is a copy of Form 6783 so that you may review the in- struction and determine if you can qualify for the exemption. If after reading these instructions , you determine that you meet the 3 conditions to qualify for the exemption, please execute the en- `, closed certification, identifying the property (ies) for which the i exemption is claimed. You must sign and date it or we cannot accept it as a valid certification. Any new, properties that may begin production at a later date will also require a supplemental certification of Form 6783 in order for Macey & Mershon Oil Inc. to exempt your interest for the tax. Please return the completed certification form along with your signed Division Order as soon as possible . If you have any questions regarding this matter, please contact your legal counsel or your local IRS office . MACEY & MERSHON OIL INC. Enclosures MACEY & MERSHON OIL INC. SUITE 2150 • 1600 BROADWAY • DENVER. COLORADO 80202-4970 • (303)861-9183 • Instructions To All Interest Owners Read Carefully Before Signing The Instrument 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: Signature: Sign game as shown on the instrument. 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 If the instrument is signed by agent, attorney-in-fact, guardian or any party Party: other than the named-interest owner, we must have evidence of the rights vested in the signatory party. Taxpayers Identification Insertyour number in the space provided opposite your name on the instrument Number or Social in accordance with the instructions below. Security Number: Mailing Address: Insertj;lhe address to which checks are to be mailed. Print or type. Do not abbreviate. If you are already receiving checks from this company, be sure to use the same address to which we are now mailing checks. Property Number: In the upper right corner of the instrument you will find the number assigned (Name) to this property. This number will appear on the statement attached to your check-and should always be used when corresponding with this company. Settlement for your Upon receipt of the properly executed instrument and evidence of clear title, Interest: the interest credited to you will be authorized for payment. Instruments must be received in our office by the 20th of the month for checks to be issued the following month. Checks will be mailed monthly when accruals to your interest equat- 5.00 or more. In November of each year payment will be made for all accumulated sums of more than $1.00. Change of Address: You should notify us promptly of any change in your mailing address. This notictmust be over your own signature, or the signature of your appointed agent. Always include your business associate number and your old address, then state your new address with zip code. • Return the executed instrurngltt without delay to the address below. Keeo one cony for your records. - MACEY & MERSHON OIL INC. Sloe also•- 1600 Broadway - (303) 861-9183 Denver, Colorado 80202 Instructions for furnishing Taxpayer Identification Number or Social Security Number: If this account is in the name of: An individual, furnish the individual's own social security number. A widow 62 or over who received social security'benefits before January 1, 1963, and who has no number of her own may use the benefit number for tax purposes. All other persons must have their own number. Two or more persons (for example, "A and B as joint owners" or "A, B. and C as tenants =� in common"), only one number need be furnished. Ordinarily, the number of any one of the - persons will be sufficient. ept that if the choice is between husbafid and wife, furnish the social security number of husband—or if between adult and minor; furnish the social security number of the ad Underline the name of the person whose number is furnished. A designated guardian, custodian, committee, etc., and one or more-wards, minors, - incompetents, or other individuals, furnish the social security number of the ward, minor, incompetent, etc., and underline the name of the individual whose number is furnished (for example, "A as custodian for B under the Uniform Gifts to Minors Act,' furnish B's social security number and underline B's name). A so-called trust, which is not a legal or valid trust, furnish the social security number of the person named as trustee and underline his name (for example, a savings account, not formalized by a trust instrument, in the name of "A in trust for B,"furnish the social security number of A and underline A's name). A trust, estate, pension trust, corporation, partnership, broker, registered nominee, etc., furnish the employer identification number of the entity (for example, "A, trustee under the will of S for benefit of Y," furnish the employer identification number of the trust). If an employer identification number is needed, contact any Internal Revenue Service office. If you do not now have a Social Security Number: You may obtain the form upon which to make application for a number at your nearest Social Security or Internal Revenue Service Office. When you have obtained your number notify this company of the same without delay at the Address appearing on the face hereof. Hello