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HomeMy WebLinkAbout880519.tiff RESOLUTION RE: APPROVE OIL DIVISION ORDER FROM FINA OIL AND CHEMICAL COMPANY, P.O. BOX 2159, DALLAS, TEXAS 75221 , 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 Fina Oil and Chemical Company, and WHEREAS, said lease covers land more particularly described as follows: S/2 NW/4 Section 8 , 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, P.O. Box 2159 , Dallas, Texas 75221 , 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. ��� 880519 Page 2 RE: OIL DIVISION ORDER - FINA The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 6th day of July, A.D. , 1988 . p � � BOA OF COUNTY COMMISSIONERS ATTEST: /t C ty 4,47. WE COUNTY, COLORADO Weld County ![jerk and Recorder and Clerk to the Board Gene R. Bra tner, Chairman BY: 1-276a./ ..( Ws . C.W. , Pro Tem Deputy County erk APPROVED S TO FORM: J. ii ' ne �a on (::::::EE77 `3 f /, County At o ney �/ f � Frank amaguchi 880519 LHR / slg D . O . #746310- 0000- 10 OIL DIVISION ORDER FINA.-631-D ARd14 ? 26 DATED: June 22 , 19 88 To: FINA OIL AND CHEMICAL COMPANY EFFECTIVE: First Production , 19 The undersigned, and each of us, warrant that we are the lawful owners of our respective interests as set out below in all oil produced RIM #6 -SA from the following described lands, known as the , situated in the Sr 0 Weld Colorado o County or Parish of , State of , more particularly described as follows: API 05- 1a 3 -1313 , a a ow ® S / 2 NW / 4 Section 8 , T8N , R58W , containing 80 acres , more or less w a Ix 0 O w N La You are hereby authorized by the undersigned, each individually and not jointly and until further written notice, to receive for purchase •• (4 our respective proportionate parts of the oil produced from said lands, and to credit the purchase price thereof as shown below. subject to the en terms, conditions and covenants shown on the reverse side hereof: % CREDIT TO DIVISION OF INTEREST POST OFFICE ADDRESS W coa coo NZ C7 H `_, W N H OCA G4 W N kS) W N Gy N o SEE EXHIBIT "A" U r.4 a � I-1N O CD NLO r-1 re' alw X X WITNESS S . S . # WITNESS ATTEST : A WELD COUNTY BOARD OF COMMISSIONERS WITNESS °� y U d 1 BY : _ ) c < �. .E r-vc--�) BY : WITNESS 1 L GENE R . BRANTNER TITLE : TITLE : CHAIRMAN WITNESS TAX T . D . # 84- 6000813 WITNESS WITNESS WITNESS 880519 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 -4, o thereof shall be based upon the price received by you for such oil and upon the volume computation o ° 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 8 the field where produced on the dates that oil is received by you. THIRD: Quality and quantity shall be determined in accordance with the conditions specified in O the price posting. You may refuse to receive any oil not considered merchantable by you. �w FOURTH: Payments shall be made monthly for oil purchased during the preceding month, by z check mailed to the respective parties at the addresses shown, for the amount due said parties according O to the division of interest herein specified, less any taxes required by law to be deducted and paid by you w as purchaser; PROVIDED, HOWEVER, that you may withhold payments to any or all of the signatories Nr until the total amount accrued to any individual's interest is at least fifteen dollars ($15.00), except that full payment will be made each June and December regardless of the amount accrued. FIFTH: Complete abstracts or other evidence of title, satisfactory to you, will be furnished at any C° a time on demand. Until such evidence is furnished, you may withhold payment for all oil received, and if a co u claim adverse to any of the signatories is asserted, you may also withhold payment for oil accruing to the o z 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 signe- t— o tories, the party or parties affected agree to indemnify you against any judgment rendered therein, and to w reimburse you for expenses necessarily incurred by you in connection therewith, including but not limited " to attorneys' fees and costs of court. • z SIXTH: You will not be responsible for any change of ownership in the absence of actual notice N i 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 o a together with a certified or photostatic copy of the recorded instrument evidencing such transfer. Regard- less of the effective date of the instrument of transfer, you shall not be required to recognize such transfer as being effective earlier than 7:00 a.m. of the first day of the calendar month following the month in o co which said written notice is received by you. N l0 If any interest hereunder shall become subdivided, you shall have the right to require the written z w 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. 880519 FINA-2038-A EXHIBIT "A" 1 D.O. #746310-0000-10 _ RIM #6-8A ",.,. Weld County, Colorado OWNER NUMBER OWNER NAME AND ADDRESS INTEREST ROYALTY INTEREST 9293002 Weld County .1250000 Board of County Commissioners P.O. Box 758 Greeley, CO 80631 o u OVERRIDING ROYALTY INTEREST rn O u 0027516 Paul Abbey .0127500 375 Birch Street o w Broomfield, CO 80020 CDg a 1254309 Terry J. Cammon .0127500 10455 West 73rd Place Arvada, CO 80005 N Q N .. y e 1527753 Commonwealth Energy Associates-III, L. P. .0093750 w cio Branch, Cabell & Company m a P.O. Box 2278 CO C_) Richmond, VA 23217 N ° H 5192414 John Penn Lee .0127500 °w o E-4 5151 North Palm, Suite 170 Fresno, CA 93704 N N w 5711122 Mile Hi Oil & Gas, Inc. .0056250 P.O. Box 27296 r z Denver, CO 80227 N F� O CC CC C.) WORKING INTERESTS rn 0027516 Paul Abbey .0122649 BPO a co 375 Birch Street .0090000 APO Broomfield, CO 80020 ww 1112119 Marvin R. Brown .0766558 BPO P.O. Box 588 .0562500 APO Sterling, CO 80751 1254309 Terry J. Cammon .0122649 BPO 10455 West 73rd Place .0090000 APO Arvada, CO 80005 1527753 Commonwealth Energy Associates-III, L. P. .3066231 BPO c/o Branch, Cabell & Company .2250000 APO P.O. Box 2278 Richmond, VA 23217 1866359 Diversified Operating Corporation .2989576 BPO 1600 Stout Street .2193750 APO Suite 1900 Denver, CO 80202 2824977 Fina Oil and Chemical Company .0000000 BPO P.O. Box 2159 .2187500 APO Dallas, TX 75221 3193273 Golden Bear Company .0766558 BPO c/o Robert Wiebe .0562500 APO 516 W. Shaw #108 Fresno, CA 93704 880519 EXHIBIT "A" 9 D.O. #746310-0000-10 J • RIM #6-8A Weld County, Colorado OWNER NUMBER OWNER NAME AND ADDRESS INTEREST 5192414 John Penn Lee .0383279 BPO 5151 North Palm, Suite 170 .0281250 APO Fresno, CA 97304 o o U U oW O 3 o x th W O U •'� A4 Ln m r-1 tY W 0o co U Z • H N H dCI a N• W N • Z ri Z (N U IX t-41 a rho D N N l0 rI ri CA 44 880519 Fina Oil and Chemical Fl NA Company P.O. Box 2159 Dallas, Texas 75221 (214) 750-2400 June 22, 1988 E ' JUN2 919:: t TO ALL INTEREST OWNERS: 13t3EEt_ '. caLo: Re: D.O.. #746310-0000-10 RIM #6-8A Weld County, Colorado Dear Inlerust Owner: Diversified Operating Corporation recently drilled and completed the Rim #6-8A Wells and Fina Oil and Chemical Company, as purchaser, will be responsible for the disbursement of proceeds derived from the sale of oil production. Accordingly, we have prepared and enclosed two copies of Fina Oil arid Chemical Company's Division Order crediting each of you with the interest we believe you own in the production from the Rim #6-8A Wells. If the Division Order meets with your approval, please have one copy properly executed, as indicated, and return it to this office. The extra copy should be retained for your files. Before returning the Division Order please verify the accuracy of your mailing address as shown and insert your Social Security or Tax Identification number in the space provided. Thank you for your cooperation in this matter. Sincerely your:., Lynn H. Ramert Division Order Analyst LHR/slg Enclosure 880519 Hello