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HomeMy WebLinkAbout891047.tiff RESOLUTION RE: APPROVE GAS AND GAS LIQUIDS DIVISION ORDER FROM DIVERSIFIED OPERATING CORPORATION, 1600 STOUT STREET, SUITE 1900 , DENVER, COLORADO 80202, 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 : NE}NE* Weld County, Colorado WHEREAS, Diversified Operating Corporation has submitted a Gas and Gas Liquids 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' s staff 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 Gas and Gas Liquids Division Order as submitted by Diversified Operating Corporation, 1600 Stout Street, Suite 1900 , Denver, Colorado 80202 , 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. 7)9/ 891047 Page 2 RE: DIVISION ORDER - DIVERSIFIED OPERATING CORPORATION The above and foregoing Resolution was , on motion duly made and seconded, adopted by the following vote on the 2nd day of October, A.D. , 1989. �� BOARD OF COUNTY COMMISSIONERS ATTEST: WELD COUNTY, COLORADO Weld County C erk and Recorder and Clerk to the Board C. Irby, C 'rman d7Zei en"e R. srantner, Pro-Tem eputy County lerk/ S APPROVED AS TO FORM: nstance L. Harbert >etC George K&nn y jrgme-4-4La ounty Attorney Gor . L t�� 891047 AR2193563 ^ Lease #: COWe-833 D.O. #: 150 DIVERSIFIED OPERATING CORPORATION GAS AND GAS LIQUIDS DIVISION ORDER DATED: November 15, 1988 EFFECTIVE: October 1 , 1988 To: Diversified Operating Corporation 1600 Stout Street, Suite 1900 Denver, Colorado 80202 (303) 595-3957 The undersigned, and each of them, guarantee and warrant that they are the, legal owners in the proportions set out below of all the gas and gas liquids, , or 'the ' proceeds thereof , produced from the Sooner Unit Tract #9 (Fiscus #1-28) LIMITED TO PRODUCTION OBTAINED FROM THE D-SAND SPLAY FORMATIONS. W N N lease or unit located in the County of Weld , State of Colorado v' described as follows: �f mfr.) Township 8 North, Range 58 West 14 0 Section 28: NE/4NE/4 and commencing as of 7 A.M. on the first day of October. 1988, you are authorized to • G' receive gas therefrom for purchase under the provisions of the gas contract tr hereinafter referred to, and until further notice, either from you or us, pay m therefore as follows: Ell• F y o H CREDIT TO INTEREST Z4-4 t o N For Division of Interest, see Exhibit "A" attached hereto and made apart hereof. N Subject to the following provisions and conditions: N m .. FIRST: This Division Order is executed subject to a contract r,made and entered tmc into by and between Diversified Operating Corporation, as .Seller and Red Wave, r: Ltd. , as Buyer dated September 1. 1987. _ ,and any amendments thereto or b modifications thereof. y ;vo The purchase price for said gas shall be the price therefor designated in said r o contract, and payment thereof (less applicable taxes deducted by- purchaser) shall be r o made to the parties above named in the proportions above set forth, at the respective o times and under the conditions contained in said contract, except as provided in 0 Paragraph Six hereof , and said contract is hereby adopted, ratified and confirmed by - the undersigned parties, to the same extent as if originally executed by each of o o0 them. O ,p SECOND: In the event of a dispute hereafter at any time concerning title to said described land, or to gas purchased hereunder Diversified Operating Corporation may hold the purchase price, without interest, of the gas purchased hereunder until indemnity satisfactory to Diversified Operating Corporation, has been furnished, and in the event any action or suit is hereafter filed in any court affecting either the title to the land above described, or to the gas produced therefrom, to which any of the undersigned are parties, written notice of the filing of said action shall be immediately furnished to Diversified Operating Corporation, by the undersigned, stating the court in which the same is filed and the title of such action or suit. THIRD: You are hereby authorized, at your election, to withhold from the proceeds accruing hereunder to the undersigned, the amount of any severance, production, occupation, excise or other tax levied by any governmental authority against the interest of the undersigned in the production, or proceeds attributable thereto, and to pay same in behalf of the undersigned. 891047 FOURTH: You will not be responsible for any change of ownership in the absence of actual notice and satisfactory proof thereof. Each signer hereof agrees to notify you in writing of any change in his ownership and agrees that any transfer, assignment, or conveyance of any of his interest hereunder shall be made subject to this division order and effective at seven o'clock a.m. on the first day of the calendar month in which notice is received. Without regard to whether any contingency is expressly stated in this division order, you are hereby relieved of any responsibility for determining when any of the interests herein shall increase, diminish, 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) , or as a result of the increase or decrease in production, or as a result of a change in the depth, the method or the means of production, or as a result of a change in the allocation or production affecting the above tract or any portion thereof under any agreement or by order of Governmental authority, or resulting from any other „yty contingency, and until you receive notice in writing to the contrary, you are hereby r Ea authorized to continue to remit pursuant to the above division of interest. In the w N event said written notice is not received by you, you shall be held harmless for ~' 'p N 1 error resulting in over or under payment, or a wrong payment of any such sum or sums. FIFTH: This Division Order shall become valid and binding on each and every n owner named hereunder, his or its personal representatives, heirs, successors and o assigns, as soon as signed by such owner regardless of whether or not all of said z owners have so signed; but you shall not be required to make payments in the manner z t°, herein provided until after all such owners have executed this division order or "d N other similar division orders satisfactory to you and it is agreed that your rights a w under this division order are assignable. This division order shall remain effective ttl for so long as any gas purchase contract covering Said Lands (or any amendment or ici3 lc;extension of said contract) remains in effect, or, if this instrument covers the sale tti -. of oil, until cancelled by any party upon giving sixty (60) days written notice in z w advance of such cancellation. r: o r1/40 SIXTH: If the amount accruing to the interest of any party hereto shall be less �hy than $25.00 for any month, you are hereby authorized to accumulate the monthly x �' accruals to such interest and to make payment when such accumulations equal or exceed a+ n $25.00. All accounts will be paid at least annually regardless of the amount. Ww tY SEVENTH: By the execution hereof and in consideration of the payments to be O made to the undersigned as herein provided, the undersigned, and each of them, hereby 6 ratify, adopt and confirm the lease or leases covering the lands herein described and '°' agree that such lease or leases are in full force and effect in accordance with all of such lease terms and provisions, and do hereby lease, let and demise unto the txj o0 record owner of same, all of the interest of the undersigned in the lands covered O thereby in accordance with the terms and provisions of said lease or leases, to which lease or leases and the recording thereof reference is here made for all purposes. ON: 0 EIGHTH: All written notices provided for herein shall be given to the party to go party state herein. All of the provisions receive the same, at the address of such ' "13' herein contained shall apply to each signer hereof separately and not jointly. INSTRUCTIONS FOR SIGNING Execute in ink exactly as your name appears above and have your signature witnessed. If executing on behalf of a corporation, indicate your official title and affix corporate seal attested by the secretary or assistant secretary. It is necessary to only execute one copy of this division order which may be signed in counterparts. BE SURE TO FURNISH CORRECT MAILING ADDRESS, INCLUDING ZIP CODE, POST OFFICE BOX NUMBER OR COMPLETE STREET ADDRESS. DO NOT DELETE OR REMOVE ANY PORTION HEREOF. (Witness sign below) (Siaan Ltures and addresses of Owners) weld County ou Cleric and Recorder ATTEST: E��1idf u.Airb, , anal an Bs: Address: P.0. Box 758 i „ Greeley, CO 80632 Tax ID. No. 84-6000813 891047 EXHIBIT "A" PAGE 1 OF 2 TODAYS DATE: NOV 15, 1988 EFFCT. DATE: OCT 1 , 1988 CREDIT INTEREST Mile Hi Oil & Gas, Inc. 0.0070136 WI 0.0003418 ORRI Commonwealth Energy Associates, L.P. 0. 1125000 WI Palace Exploration Company 0. 1200000 WI 0.0056250 ORRI Gear Drilling Company 0.0209531 WI Robert J. Adams 0.0069844 WI Marvin R. Brown 0.0279375 WI Mark T. Brown 0.0279375 WI Diversified Operating Corporation 0.0864626 WI 0.0358999 ORRI John Penn Lee 0.0337969 WI R. S. J. , Inc. 0. 1377014 WI M H Paul Abbey 0.0187500 WI r a wo The Resource Exemption Equivalent Trust 0.0187500 WI #1 0.0015000 ORRI we, Williams Resources Corporation 0.0084375 WI > m ~e Commonwealth Energy Associates-II, L.P. 0.0800000 WI M ut M rn John M. Turner 0.0120000 WI tOlt w 0.0016031 WI N f., 0.0005000 ORRI M a H Colburn R. Thomason 0.0120000 WI z ( ' 0.0028856 WI C) 0° ri 1/40 0.0009000 ORRI tri Jack H. Farrior 0.0120000 WI • ^' 0.0016031 WI 0.0005000 ORRI w 0 Albert M. Pardini 0.0040000 WI XI 0.0019238 WI tdr, to 0.0075000 ORRI 0.0006000 ORRI g Ma James D. Brownlie 0.0116892 WI o O O to Michael Lance Thomason 0.0040078 WI 0.0012500 ORRI O o0 O a Kelly Thomason 0.0040078 WI 0.0012500 ORRI Commonwealth Energy Associates-III,L.P. 0.0113478 WI Gay Mildred Curtiss-Lusher 0.0216156 WI 0.0089750 ORRI SOONER UNIT TRACT 9 WELD COUNTY, CO 891047 EXHIBIT "A" PAGE 2 OF 2 TODAYS DATE: NOV 15, 1988 EFFCT. DATE: OCT 1, 1988 CREDIT INTEREST Oscar Strongin 0.0018750 ORRI Barry Curtiss-Lusher 0.0003750 ORRI Weld County, Colorado 0. 1250000 RI Board of County Cormiissioners TOTAL: 1 .0000000 H H. W N Fa 4n cn 7i 0 ▪ 0 z N z N z1/41, w � t M m 0w U3 yo 0 tel H zw rco hXo xPa N x1 w t4 0 G bi N w O to• o et o r O C, o 4=. O n• o 891047 SOONER UNIT TRACT 9 WELD COUNTY, CO VEIN C1,- DOC N0V 1. 8t988 r ;i ) uwet. . Diversified Operating November 15, 1988 Corporation TO: ALL INTEREST OWNERS RE: Sooner (D-Sand and Splay) Unit Weld County, COLORADO Ladies and Gentlemen: As you may be aware, the above-referenced unit was approved effective October 1 , 1988. In order to distribute revenues to you attributable to your share of unit gas, we have prepared and enclose two (2) copies each of our Division Orders for each unit tract in which you hold an interest.* Your careful and prompt attention to the following items will be greatly appreciated. 1 . Please verify that the information stated on the Division Orders, as it applies to you, is correct. 2. Sign the Division Orders in the designated space and have your signature witnessed, being sure to include the mailing address for your revenue checks to be forwarded. 3. Fill in your Social Security or Tax Identification Number on the line provided. Federal law requires us to withhold 20% of all revenue payments if this number is not furnished. 4. If executed by a Corporation, the signature should be attested and your Corporate Seal affixed. 5. Return one executed copy of the Division Order to this office. The second copy should be retained for your records. Upon receipt of your signed Division Order, we will place your interest in line for payment. Please allow thirty (30) to forty-five (45) days for processing. Very truly yours, DIVE Id/4'fr OERATING CORPORATION Paul Ab ey Land Manager *Division Orders for unit tracts 1B, 1C, 2A, 28, 7, 10, 11 and 12 have not been prepared pending receipt of current Division Order Title Opinions. 891047 Hudson's Bay Centre•Suite 1900• 1600 Stout Street•Denver,Colorado 80202•303/595-3957 Hello