HomeMy WebLinkAbout880360.tiff RESOLUTION
RE: APPROVE OIL DIVISION ORDER FROM FINA OIL AND CHEMICAL
COMPANY, 1601 N.W. EXPRESSWAY, SUITE 900 , OKLAHOMA CITY,
OKLAHOMA 73118 , 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 Rio Grande Exploration Company, and
WHEREAS , said lease covers land more particularly described
as follows:
NE* , Section 7 , Township 8 North, Range 58
West of the 6th P.M. , Weld County, Colorado
WHEREAS, Fina Oil and Chemical 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 Fina Oil and Chemical Company, 1601 N.W.
Expressway, Suite 900 , Oklahoma City, Oklahoma 73118 , 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.
. EON3 �/� J i2 880360
Page 2
RE: OIL DIVISION ORDER - FINA OIL
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 18th day of
May, A.D. , 1988 .
BOARD OF COUNTY COMMISSIONERS
ATTEST: WEL COUNTY, COLORADO
Weld County lerk and Recorder
and Clerk to the Board Gene . Bran ner, Chairman
C.W. Kirby, Pry--Tem
Deputy Count Clerk
•
AP ROVED AS TO FORM: ac•ue h n
,.
County Attorney
Frank amaguchi
880360
OIL DIVISION ORDER D #525950- 0000-10 70
FINA-631-D ARds4.1nCh DATED: May 9 , 1988
To: I O CHEMICALCO PANY p EFFECTIVE: First Sales 19
Oki� cpoma tysswj3Y Suitehoma 73118
The undersigned, and each kll of us, warrant that we are the lawful owners of our respective interests as set out below in all oil produced
from the following described lands, known as the L it l i , situated in the
County or Parish of Weld , State of Colorado , more particularly described
as follows:
NE/4 Section 7-8N- 58W
This Division Order shall also provide for the payment of proceeds derived
from the sale of casinghead gas .
You are hereby authorized by the undersigned, each individually and not jointly and until further written notice, to receive for purchase
our respective proportionate parts of the oil produced from said lands,and to credit the purchase price thereof as shown below, subject to the
terms,conditions and covenants shown on the reverse side hereof:
CREDIT TO DIVISION OF INTEREST POST OFFICE ADDRESS
Fina Oil and Chemical Company . 4375000 WI P . O . Box 2159
Dallas , Texas 75221
Petrofina Delaware, Incorporated .4375000 WI P . O. Box 2159
Dallas , Texas 75221
Weld County . 1250000 RI Board of County Commissioners
915 10th Street
Greeley, Colorado 80631
A '1.96 REC 02141606 05/18/88 11 : 13 $0 . 00 1 /002
F 1047 MARY ANN FEUERSTRIN CLERK & RECORDER WELD co , CO
31f'�1
• WELD TY ///
ATTEST: I : �i " eq� BY : YY' (// zfJ( G
WITNESS We HAW: et and Recorder G'�efts" K. Brantner
Title : Chairman
By: s
WITNESS Deptitp C tI t? Cl k Board of County Commissioners
Tax ID# : 84-6000813
WITNESS
P.O. Box 758
WITNESS 915 10th Street
Greeley, CO 80632
WITNESS
WITNESS
WITNESS
WITNESS
888353
In consideration of the sum of One Dollar, the receipt and sufficiency of which is hereby acknowl-
edged, each of the signatories to this division order agrees that the following covenants are also part of
this division order, and shall be binding upon the signatories, our heirs, executors, administrators, legal
representatives, successors and/or assigns.
FIRST: The oil purchased hereunder shall become your property as soon as the same is received
into your custody or that of any carrier designated by you, unless agreed otherwise in writing.
SECOND: The oil received and purchased hereunder shall be delivered f.o.b. to any carrier
designated by you which gathers and receives said oil and you agree to pay for such oil at the price
posted by you for oil of the same grade and gravity in the same producing field on the date said oil is
received by you. If, however, it is necessary to transport crude oil hereunder by truck, then in that event
you are authorized to deduct from such price the trucking charges agreed upon by you with the operator.
Should the oil be sold by you to another purchaser accepting delivery thereof at the lease tanks, settlement
thereof shall be based upon the price received by you for such oil and upon the volume computation -71
made by such purchaser. During any period in which you have no posted price in effect for the field for
oil of the same grade and gravity, settlement shall be based upon the market price therefore prevailing for p
the field where produced on the dates that oil is received by you. o o,
THIRD: Quality and quantity shall be determined in accordance with the conditions specified in Et4 n
the price posting. You may refuse to receive any oil not considered merchantable by you.
�J N
FOURTH: Payments shall be made monthly for oil purchased during the preceding month, by
check mailed to the respective parties at the addresses shown, for the amount due said parties according
to the division of interest herein specified, less any taxes required by law to be deducted and paid by you o
as purchaser; PROVIDED, HOWEVER, that you may withhold payments to any or all of the signatories
until the total amount accrued to any individual's interest is at least fifteen dollars ($15.00), except that ro
full payment will be made each June and December regardless of the amount accrued. 7
H
FIFTH: Complete abstracts or other evidence of title, satisfactory to you, will be furnished at any z m
time on demand. Until such evidence is furnished, you may withhold payment for all oil received, and if a n
claim adverse to any of the signatories is asserted, you may also withhold payment for oil accruing to the " C°.y
interest affected thereby until you are indemnified to your satisfaction or until such adverse claim is
settled, without liability for interest in either case. If suit is filed affecting the interest of any of the signa- "
tories, the party or parties affected agree to indemnify you against any judgment rendered therein, and to
reimburse you for expenses necessarily incurred by you in connection therewith, including but not limited xt w
to attorneys' fees and costs of court. r�
0
SIXTH: You will not be responsible for any change of ownership in the absence of actual notice b
and receipt of satisfactory proof thereof, and no transfer of interest shall be binding upon you until you o
are furnished with your regular form of transfer order signed by each transferor and each transferee
together with a certified or photostatic copy of the recorded instrument evidencing such transfer. Regard- Ei O
less of the effective date of the instrument of transfer, you shall not be required to recognize such transfer o
as being effective earlier than 7:00 a.m. of the first day of the calendar month following the month in
which said written notice is received by you. 0 Ni
.
If any interest hereunder shall become subdivided, you shall have the right to require the written O O
n N
designation of a common agent to receive payment for the several holders of the subdivided portions
thereof, and you shall not be required to make payment for the subdivided interests until such designation
is furnished.
SEVENTH: Fina Oil and Chemical Company is hereby relieved of any responsibility for determining
if and when any of the interests, hereinabove set forth, shall or should revert to or be owned by other
parties as a result of the completion or discharge of money or other payments from said interests; and
the signers hereof, whose interests are affected by such money or other payments, if any, hereby agree
to give Fina Oil and Chemical Company notice, in writing by registered mail addressed to Fina Oil and
Chemical Company, P.O. Box 2159, Dallas, Texas 75221, when any such money or other payments have
been completed or discharged, or when any division of interest/interests other than that set forth above
shall, for any reason, become effective, and to furnish transfer orders and other appropriate evidence
accordingly; and in the event such notice shall not be received, Fina Oil and Chemical Company shall be
held harmless in the event of, and is hereby released from any and all damage or loss which might arise
out of, any overpayment.
EIGHTH: You are hereby authorized, if the owner or operator of a leasehold estate in the lands
described above, to sell or cause to be sold the oil produced therefrom at the price posted by the purchaser
for oil of the same grade and gravity in the same producing field on the date said oil is sold. Any such
sale in all other respects shall be subject to the conditions hereof.
NINTH: This division order shall become valid and binding on each and every interest owner
named herein as soon as signed by him regardless of whether or not any of the other owners have signed,
and shall bind and inure to the benefit of the successors in interest of the signatories, and your succes-
sors and assigns and may not be cancelled without giving thirty (30) days prior written notice. The oil
and gas lease or leases, together with any amendments or modifications thereof, under which the oil is
produced, are hereby ratified, adopted and approved. kk\�
FINA-2038-A
t
FINA OIL AND CHEMICAL COMPANY
1601 N W EXPWY • SUITE 900 • OKLAHOMA CITY,OK 73118 • (405)840-0671
May 9 , 1988
t-
16 MAY 1 21988
GREELEY, CO, O.
Weld County
c/o Board of County Commissioners
915 10th Street
Greeley, Colorado 80631
Re: D. O. #525950-0000-10 & 70
Lilli #2-7 (NW/4 NE/4 ) and
Lilli #8-7 (SE/4 NE/4)
Section 7-8N-58W
Weld County, Colorado
Gentlemen:
Fina Oil and Chemical Company has recently completed the
captioned wells and will be responsible for the disbursement of
proceeds derived from the sale of oil and casinghead gas.
Enclosed are two copies of our Division Order which sets forth
Weld County' s interest in the production from these wells.
Please have the Division Order executed by the person authorized
to execute such documents on behalf of the county and return one
copy to this office. The second copy should be retained for your
files.
Before returning the Division Order, please verify your mailing
address as shown and insert a tax identification number in the
space provided. Thank you for your cooperation in this matter.
Very truly yours,
Wilma Smith
Division Order Analyst
880360
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