HomeMy WebLinkAbout881034.tiff RESOLUTION
RE: APPROVE FEDERAL COMMUNITIZATION AGREEMENT 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:
Township 8 North, Range 58 West, 6th P.M.
Section 6 : Lots 12 and 15
Weld County, Colorado
WHEREAS, a Federal Communitization Agreement has been
presented to the Board with the terms and conditions as stated in
said Agreement, a copy of which is attached hereto and
incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County
Commissioners of Weld County, Colorado, that the aforementioned
Federal Communitization Agreement be, and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chairman be, and
hereby is, authorized to sign said Agreement.
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 31st day of
October, A.D. , 1988 .
/
�„ /2� ���., ,0 BOARD OF COUNTY COMMISSIONERS
ATTEST: 1T� {.� ��m/ WEL OUNTY, COLORADO
Weld County Clerk and Recorder -1141t
and Clerk to the Board ene R. Brantner, Chairman
BY; o7p„-7 -- �� 4_ C.W. Kirby, P o-Tem
Deputy County Clerk \
APPROVED AS TO FORM: Ja qu ine o nson
O74-t
Go •on ( Lacy
County Attorney
Frank amaguchi
881034
COMMUNITIZATION AGREEMENT
Contract No.
THIS AGREEMENT entered into as of the 1st day of October
1988 , by and between the parties subscribing, ratifying, or consenting
hereto, such parties being hereinafter referred to as "parties hereto."
WITNESSET H:
WHEREAS, the Act of February 25, 1920 (41 Stat. 437), as amended
and supplemented authorizes communitization or drilling agreements
communitizing or pooling a Federal oil and gas lease, or any portion
thereof, with other lands, whether or not owned by the United States,
when separate tracts under such Federal lease cannot be independently
developed and operated in conformity with an established well-spacing
program for the field or area and such communitization or pooling is
determined to be in the public interest; and
WHEREAS, the parties hereto own working, royalty or other lease-
hold interests, or operating rights under the oil and gas leases and
lands subject to this agreement which cannot be independently developed
and operated in conformity with the well-spacing program established
for the field or area in which said lands are located; and
WHEREAS, the parties hereto desire to communitize and pool their
respective mineral interests in lands subject to this agreement for
the purpose of developing and producing communitized substances in
accordance with the terms and conditions of this agreement:
NOW, THEREFORE, in consideration of the premises and the mutual
advantages to the parties hereto, it is mutually covenanted and agreed
by and between the parties hereto as follows:
1 . The lands covered by this agreement (hereinafter referred to
as "communitized area") are described as follows:
TOWNSHIP 8 NORTH, RANGE 58 WEST, 6th P.M.
Section 6: Lots 12 and 15
Containing 80.10 acres, more or less, and this
agreement shall include only the "D" Sand formation
underlying said lands and the crude oil and associated natural
gas, hereinafter referred to as "communitized substances,"
producible from such formation.
2/1/77
134
2. Attached hereto, and made a part of this agreement for all
purposes is Exhibit B, designating the operator of the com-
munitized area and showing the acreage, percentage, and
ownership of oil and gas interests in all lands within the
communitized area, and the authorization, if any, for com-
munitizing or pooling any patented or fee lands within the
communitized area.
3. All matters of operation shall be governed by the operator
under and pursuant to the terms and provisions of this agree-
ment. A successor operator may be designated by the owners of
the working interest in the communitized area and three (3)
executed copies of a designation of successor operator shall
.be filed with the Authorized Officer of the Bureau of Land
Management.
4. Operator shall furnish the Secretary of the Interior, or his
authorized representative, with a log and history of any well
drilled on the communitized area, monthly reports of operations,
statements of oil and gas sales and royalties, and such other
reports as are deemed necessary to compute monthly the royalty
due the United States, as specified in the applicable oil and
gas operating regulations.
5. The communitized area shall be developed and operated as an
entirety, with the understanding and agreement between the
parties hereto that all communitized substances produced
therefrom shall be allocated among the leaseholds comprising
said area in the proportion that the acreage interest of each
leasehold bears to the entire acreage interest committed to
this agreement.
6. The royalties payable on communitized substances allocated to
the individual leases comprising the communitized area and the
rentals provided for in said leases shall be determined and
paid on the basis prescribed in each of the individual leases.
Payments of rentals under the terms of leases subject to this
agreement shall not be affected by this agreement except as
provided for under the terms and provisions of said leases or
as may herein be otherwise provided. Except as herein modi-
fied and changed, the oil and gas leases subject to this
agreement shall remain in full force and effect as originally
made and issued.
It is agreed that for any Federal lease bearing a sliding- or
step-scale rate of royalty, such rate shall be determined
separately as to production from each communitization agreement
page 2 of 6
851034
to which such lease may be committed, and separately as to any
noncortmunitized lease production, provided, however, as to
leases where the rate of royalty for gas is based on total
lease production per day, such rate shall be determined by the
sum of all communitized production allocated to such a lease
plus any noncommunitized lease production.
7. There shall be no obligation on the lessees to offset any well
or wells completed in the same formation as covered by this
agreement on separate component tracts into which the com-
munitized area is now or may hereafter be divided, nor shall
any lessee be required to measure separately communitized
substances by reason of the diverse ownership thereof, but the
lessees hereto shall not be released from their obligation to
protect said communitized area from drainage of communitized
substances by a well or wells which may be drilled offsetting
said area.
8. The commencement, completion, continued operation or production
of a well or wells for communitized substances on the communitized
area shall be construed and considered as the commencement,
completion, continued operation or production on each and all
of the lands within and comprising said communitized area, and
operations or production pursuant to this agreement shall be
deemed to be operations or production as to each lease committed
hereto.
9. Production of communitized substances and disposal thereof
shall be in conformity with allocation, allotments, and quotas
made or fixed by any duly authorized person or regulatory body
under applicable Federal or State statutes. This agreement
shall be subject to all applicable Federal and State laws or
executive orders, rules and regulations, and no party hereto
shall suffer a forfeiture or be liable in damages for failure
to comply with any of the provisions of this agreement if such
compliance is prevented by, or if such failure results from,
compliance with any such laws, orders, rules or regulations.
10. This agreement is effective June 1st , 198E
(Month) (Day) Year)
upon execution by the necessary parties, notwithstanding the
date of execution, and upon approval by the Secretary of the
Interior or by his duly authorized representative, and shall
remain in force and effect for a period of two (2) years and
for so long as communitized substances are, or can be, produced
from the communitized area in paying quantities: provided,
2/1/77
page 3 of 6
881034
that prior to production in paying quantities from the com-
munitized area and upon fulfillment of all requirements of the
Secretary of the Interior, or his duly authorized representa-
tive, with respect to any dry hole or abandoned well , this
agreement may be terminated at any time by mutual agreement of
the parties hereto. This agreement shall not terminate upon
cessation of production if, within sixty (60) days thereafter,
reworking or drilling operations on the communitized area are
commenced and are thereafter conducted with reasonable diligence
during the period of nonproduction. The two-year term of this
agreement will not in itself serve to extend the term of any
Federal lease which would otherwise expire during said period.
11 . The covenants herein shall be construed to be covenants running
with the land with respect to the communitized interests of
the parties hereto and their successors in interests until
this agreement terminates and any grant, transfer, or conveyance
of any such land or interest subject hereto, whether voluntary
or not, shall be and hereby is conditioned upon the assumption
of all obligations hereunder by the grantee, transferee, or
other successor in interest, and as to Federal land shall be
subject to approval by the Secretary of the Interior.
12. It is agreed between the parties hereto that the Secretary of
the Interior, or his duly authorized representative, shall
have the right of supervision over all operations within the
communitized area to the same extent and degree as provided in
the oil and gas leases under which the United State of America
is lessor and in the applicable oil and gas regulations of the
Department of the In:.e: fors
13. This agreement shall be binding upon the parties hereto and
shall extend to and TIP hin_! ?ng upon their respective heirs,
executors, administrators, successors, and assigns.
14. This agreement may be executed in any number of counterparts,
no one of which needs to be executed by all parties, or may be
ratified or consented to by separate instrument, in writing,
specifically referring hereto, and shall be binding upon all
parties who have executed such a counterpart, ratification or
consent hereto with the same force and effect as if all parties
had signed the same document.
15. Nondiscrimination: In connection with the performance of work
under this agreement, the operator agrees to comply with all
of the provisions of Section 202(1 ) to (7) inclusive, of
Executive Order 11246 (30 F.R. 12319), as amended, which are
hereby incorporated by reference in this agreement.
2/1/77
page 4 of 6
881034
Attached to and made a part of that certain Communitization Agreement
dated October 1 , 1988 , embracing Lots 12 and 15 of Section 6 , Township 8
North, Range 58 West, Weld County, Colorado.
IN WITNESS WHEREOF, the parties hereto have executed this
agreement as of the day and year first above written:
FINA OIL & CHEMICAL COMPANY
EAGLE EXPLORATION COMPANY
COMMONWEALTH ENERGY ASSOCIATES, LP-III
MILE HI OIL AND GAS, INC. Litil .t/,'�,KlHt�sn Ian�f�n)
ATTEST: .0
WELD COUNTY, COLORADO :!C AND REC_�RD
Att WELDS CU'AND t.J ERIC T_) IF c ciOARD
£Y� ..b5 z2i7KA--e 2 rci
D pu'ty Courtly Cell(
lc
J
page 5 of 6
881034
Robert M. Gilbert
D & J TRUST
STATE OF (I . )
n n n ) ss .
COUNTY OF t )
The foregoing instrument was acknowledged before me by
S�
This :3) -- �day of C°-k- , 1988 .
WITNESS my hand and official seal .
My Commission Expires : //////P��� �. !� a //J
- ,� 9Z) No 91)
Public
9l5" /49-
STATE OF )
ss .
COUNTY OF )
The foregoing instrument was acknowledged before me by
, as
of
This day of , 1988 .
WITNESS my hand and official seal .
My Commission Expires :
Notary Public
page 6 of 6 881034
EXHIBIT "A"
ATTACHED TO AND MADE A PART OF THAT CERTAIN COMMUNITIZATION
AGREEMENT DATED OCTOBER 1, 1988, EMBRACING LOTS 12 AND 15
OF SECTION 6, TOWNSHIP 8 NORTH, RANGE 58 WEST, 6TH P.M. WELD
COUNTY, COLORADO.
R 58 W
,_... .tea.... .- ._ , _ .s
rLa �x
1TrII 4Q07cc
I bro..; y,l & Chemical Company 1
I 12 -4 - 88 i
1 I
1
T 1
1 l
8 1 FE
N ! Lot 15 1
1 Tr 1 40.03ac
1 Eagle Exploration Company 1
1 1
6-30-91
1 • 14-6 Pawnee ,
1 1
1 j
1 C-2240.5
`I — U S 15 1 - ISIS .S I — I
lmi
LILLI FIELD
"D" SAND
— ' — . BOUNDARY OF COMMUNITIZED
AREA
881034
Scale: 1" =500'
Attached to and made a part of that certain Communitization Agreement
dated October 1 , 1988, embracing Lots 12 and 15 of Section 6 , Township 8
North, Range 58 West, Weld County, Colorado.
EXHIBIT "B"
OPERATOR OF COMMUNITIZED AREA:
FINA OIL & CHEMICAL COMPANY
DESCRIPTION OF LEASES COMMITTED
TRACT I
Lessor( s) /Royalty Interest Owners : United States of America
Lessee (s) /Assignee(s) of Record: Eagle Exploration Company
Serial Number of Lease: C-22405
Date of Lease: July 1 , 1981
Primary Term of Lease : Ten ( 10) years
Basic Royalty Rate: 12 . 5%
Description of Land Committed: Lot 15, Section 6, Township 8
North, Range 58 West, 6th P.M. ,
Weld County, Colorado
Number of Acres : 40 . 03 gross
40 . 03 net
Name and Percentage of
Each Working Interest Owner: Eagle Exploration Company
100%
Name and Percentage of
Each Overriding Royalty
Interest Owner: D & J Trust 5%
Pooling Clause: None
1 881034
TRACT II
Lessor(s) /Royalty Interest Owners : Weld County, Colorado 60%
Lessee(s) /Assignee(s) of Record: Fina Oil & Chemical Company
Date of Lease: December 4 , 1985
Primary Term of Lease : Three ( 3) years
Basic Royalty Rate: 12 . 5%
Description of Land Committed: Lot 12 , Section 6, Township 8
North, Range 58 West, 6th P.M. ,
Weld County, Colorado
Number of Acres : 40 . 07 gross
24 . 042 net
Name and Percentage of
Each Working Interest Owner: Fina Oil & Chemical Company
100%
Name and Percentage of
Each Overriding Royalty
Interest Owner: None
Pooling Clause: None
TRACT II (Cont 'd)
Lessor(s) /Royalty Interest Owners: Robert M. Gilbert 30%
Lessee(s) /Assignee(s) of Record: Commonwealth Energy Associates,
LP-III
Mile Hi Oil and Gas, Inc .
Date of Lease: April 16, 1987
Primary Term of Lease: Five (5) years
Basic Royalty Rate : 18%
Description of Land Committed: Lot 12 , Section 6, Township 8
North, Range 58 West, 6th P.M. ,
Weld County, Colorado
Number of Acres : 40 . 07 gross
12 . 021 net
2
881034
Cont 'd From Page Two
Name and Percentage of
Each Working Interest Owner: Commonwealth Energy Associates,
LP-III 62 . 5%
Mile Hi Oil and Gas , Inc . 37 . 5%
Name and Percentage of
Each Overriding Royalty
Interest Owner: *Mile Hi Oil and Gas , Inc . . 875%
*This ORRI burdens only the 62 . 5% held by Commonwealth Energy
Pooling Clause :
Lessee shall have the right to unitize, pool, or combine all or any part
of the above described lands with other lands in the same general area
by entering into a cooperative or unit plan of development or operation
approved by any governmental authority and, from time to time, with like
approval to modify, change or terminate any unit plan of operation and,
in such event, the terms , conditions and provisions of this lease shall
be deemed modified to conform to the terms, conditions, and provisions
of such approved cooperative or unit plan of development or operation
and, particularly, all drilling and development requirements of this
lease, express or implied, shall be unitized by compliance with the
drilling and development requirements of such plan or agreement, and
this lease shall not terminate or expire during the life of such plan or
agreement. In the event that said above described lands or any part
thereof, shall hereafter be operated under any such cooperative or unit
plan of development or operation whereby the production therefrom is
allocated to different portions of the land covered by said plan, then
the production allocated to any particular tract of land shall, for the
purpose of computing the royalties to be paid hereunder to Lessor, be
regarded as having been produced from the particular tract of land to
which it is allocated and not to any other tract of land; and the
royalty payments to be made hereunder to Lessor, shall be based upon
participation only as is allocated. Lessor shall formally express
Lessor' s consent to any cooperative or unit plan of development or
operation adopted by Lessee and approved by any governmental agency by
executing the same upon request of Lessee.
TRACT II (Cont 'd)
Lessor(s) /Royalty Interest Owners : Mile Hi Oil and Gas , Inc . 10%
Lessee(s) /Assignee (s) of Record: Commonwealth Energy Associates ,
LP-III
Mile Hi Oil and Gas, Inc .
Date of Lease: April 7 , 1987
3
881034
Cont 'd From Page Three
Primary Term of Lease: Five ( 5) years
Basic Royalty Rate: 12 . 5%
Description of Land Committed: Lot 12 , Section 6 , Township 8
North, Range 58 West, 6th P.M. ,
Weld County, Colorado
Number of Acres : 40 . 07 gross
4 . 007 net
Name and Percentage of
Each Working Interest Owner: Commonwealth Energy Associates,
LP-III 62 . 5%
Mile Hi Oil and Gas, Inc . 37 . 5%
Name and Percentage of
Each Overriding Royalty
Interest Owner: *Mile Hi Oil and Gas , Inc . . 875%
*This ORRI burdens only the 62 . 5% held by Commonwealth Energy
Pooling Clause :
Lessee, at its option, is hereby given the right and power at any time
and from time to time as a recurring right, either before or after
production, as to all or any part of the land described herein and as to
any one or more of the formations hereunder, to pool or unitize the
leasehold estate and the mineral estate covered by this lease with other
land, lease or leases in the immediate vicinity for the production of
oil and gas, or separately for the production either, when in Lessee ' s
judgement it is necessary or advisable to do so, and irrespective of
whether authority similar to this exists with respect to such other
land, lease or leases . Likewise, units previously formed to include
formations not producing oil or gas, may be reformed to exclude such
non-producing formations . The forming or reforming of any unit shall be
accomplished by Lessee executing and filing of record a declaration of
such unitization or reformation, which declaration shall describe the
unit. Any unit may include land upon which a well has theretofore been
completed or upon which operations for drilling have theretofore been
commenced. Production, drilling or reworking operations or a well shut
in for want of a market anywhere on a unit which includes all or a part
of this lease shall be treated as if it were production, drilling or
reworking operations of a well shut in for want of a market under this
lease . In Lieu of the royalties elsewhere herein specified, including
shut-in gas royalties , Lessor shall receive on production from the unit
so pooled royalties only on the portion of such production allocated to
this lease; such allocation shall be that proportion of the unit
production that the total number of surface acres covered by this lease
and included in the unit bears to the total number of surface acres in
such unit. In addition to the foregoing, Lessee shall have the right to
4
881034
Cont 'd From Page Four
unitize, pool , or combine all or any part of the above described lands
as to one or more of the formations thereunder with other lands in the
same general area by entering into a cooperative or unit plan of
development or operation approved by any governmental authority and,
from time time, with like approval , to modify, change or terminate any
such plan or agreement and, in such event, the terms, conditions and
provisions of this lease shall be deemed modified to conform to the
terms , conditions, and provisions of such approved cooperative or unit
plan of development or operation and, particularly, all drilling and
development requirements of this lease, express or implied, shall be
satisfied by compliance with the drilling and development requirements
of such plan or agreement, and this lease shall not terminate or expire
during the life of such plan or agreement. In the event that said above
described lands or any part thereof, shall hereafter be operated under
any such cooperative or unit plan of development or operation whereby
the production therefrom is allocated in different portions of the land
covered by said plan, then the production allocated to any particular
tract of land shall, for the purpose of computing the royalties to be
paid hereunder to Lessor, be regarded as having been produced form the
particular tract of land to which it is allocated and not to any other
tract of land; and the royalty payments to be made hereunder to Lessor
shall be based upon production only as so allocated. Lessor shall
formally express Lessor' s consent to any cooperative or unit plan of
development or operation adopted by Lessee and approved by any
governmental agency by executing the same upon request of Lessee.
5 881034
Attached to and made a part of that certain Communitization Agreement
dated October 1 , 1988 , embracing Lots 12 and 15 of Section 6 , Township 8
North, Range 58 West, Weld County, Colorado.
RECAPITULATION
TRACT NUMBER OF ACRES PERCENTAGE OF INTEREST
NO. COMMITTED IN COMMITTED AREA
I 40 . 03 49 . 9750%
II 40 . 07 50 . 0250%
80 . 10 100 . 0000%
6 881034
BEFr 7 THE OIL AND GAS CONSERVATION CO' -ISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION
AND ESTABLISHMENT OF FIELD RULES TO ) CAUSE NO. 451
GOVERN OPERATIONS IN THE LILLI
FIELD, WELD COUNTY COLORADO ) ORDER NO. 451-1
REPORT OF THE COMMISSION
TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:
This cause came on for hearing before the Commission on
August 17, 1987, at 9:00 a.m. in Room 110, State Centennial Building,
1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing, as
required by law, on the application of Diversified Operating Corporation,
which which was amended at the time of hearing to delete Sections 3 and 10,
T8N-R58W-6th P.M. , from the requested spaced area, for an order
establishing 80-acre drilling and spacing units for the production of oil
and associated hydrocarbons from the 'D' Sand formation underlying
certain lands in Weld County, Colorado.
FINDINGS
Diversified Operating Corporation, as applicant herein, is
an interested party in the subject matter of the above-referenced hearing.
2. Due notice of the time, place and purpose of the
• Tearing has been given in all respects as required by law.
c.. 3. The Commission has jurisdiction over the subject matter
embraced in said Notice, and of the parties interested therein, and
jurisdiction to promulgate the hereinafter prescribed order.
4. Evidence presented at the hearing indicated that the
'D' Sand formation constitutes a common source of supply of oil and
associated hydrocarbons underlying the following described lands in Weld
County, Colorado, to-wit:
Township 8 North, Range 58 West, 6th P.M.
Section 4: All Section 7: All
Section 5: All Section 8: All
Section 6: All Section 9: All
5. In order to prevent waste of oil and gas as defined by
,Law; to protect the correlative rights of all parties concerned; to
prevent the drilling of unnecessary wells, and to insure proper and
efficient development and promote conservation of the oil and gas
resources, an order should be made establishing 80-acre, more or less,
drilling and spacing units for the production of oil and associated
hydrocarbons from the 'D' Sand formation, a common source of supply
underlying the lands described herein; that the units should consist of
80-acres, more or less, and consist of the E1/2 and W1/2, or the N1/2 and
S1/2, of a governmental quarter section, with the unit described by the
operator of the first well drilled in the quarter section. The permitted
well for each unit should be located in the center of the NW1/4 and the
SE1/4 of each quarter section with a tolerance of 200 feet in any
direction. Well No. 15-5 Bringleson, located in the SW1/4 SE1/4 of said
Section 5 and well No. 7-10 Federal, located in the SW1/4 NE1/4 of said
Section 10 should each be considered exceptions and be the permitted well
for the unit to be designated by the operator. Exceptions to the
permitted well locations may be granted by the Director, provided owners
of the contiguous and cornering units file a waiver or consent in writing
agreeing to such exception.
6. All available geological and engineering data
concerning said 'D' Sand formation indicates that one well will
efficiently and economically drain an area of approximately 80-acres,
more or less, and that the drilling units of the size and shape
hereinabove described are not smaller than the maximum area that can be
efficiently and economically drained by one well producing from said 'D'
Sand formation.
881034
ORDER
NOW, THEREFORE, IT IS ORDERED, that the following rules and
regulations shall apply hereafter to a well drilled, completed, or
recompleted in the 'D' Sand formation underlying the Lilli Filed herein
described, in addition to other applicable rules and regulations and
orders of the Commission, if any, heretofore adopted and not in conflict
herewith.
Rule 1. Eighty (80) acres, more or less, drilling and
spacing units shall be and the same are hereby established for the
production of oil and associated hydrocarbons from the 'D' Sand formation
underlying the following described lands in the Lilli Field, Weld County,
Colorado, to-wit:
Township 8 North, Range 58 West, 6th P.M.
Section 4: All Section 7: All
Section 5: All Section 8: All
Section 6: All Section 9: All
Rule 2. Said drilling units shall consist of 80-acres,
more or less, and shall consist of the E1/2 and W1/2 or the N1/2 and S1/2
of a governmental quarter section, with the unit designated by the
operator of the first well drilled in the quarter section. The permitted
well for each unit shall be located in the center of the NW1/4 and the
SE1/4 of each quarter section with a tolerance of 200 feet in any
direction. Well No. 15-5 Bringleson, located in the SW1/4 SE1/4 of said
section 5 and well No. 7-10 Federal, located in the SW1/4 NE1/4 of said
section 10 shall each be considered exceptions and be the permitted well
for the unit to be designated by the operator. Exceptions to the
permitted well locations may be granted by the Director, provided owners
of the contiguous and cornering units file a waiver or consent in writing
agreeing to such exception.
IT IS FURTHER ORDERED, that the above order shall become
effective forthwith. (�J
ENTERED this (J day of ��e1'i
1987, as of August 17, 1987.
OIL AND GAS CONSERVATION COMMISSION
OF THESTATE%OOFF COLORADO
By $� w" 11-e61:8nk J. Pir , Secretary
2 (451-1)
881034
tinitSouret, INCORPORATED
BRAD W. HENTSCHEL UNITIZATION
PAUL S. CONNER
BONITA L.LIMPUS
!FM CGU T gcd -1/4*t «....
October 18, 1988
I 's OCT 201988
TO: WORKING AND ROYALTY INTEREST OWNERS
GRE.ER FY. Cr.
RE: Federal Communitization Agreement,
Lots 12 and 15 of Section 6,
T8N-R58W, 6th P.M. ,
Weld County, Colorado
Ladies and Gentlemen:
As a result of the successful completion of the Pawnee 14-6
Well , the Colorado Oil and Gas Commission has issued a
spacing order which affects the above described area. In
order to insure orderly development and to promote
conservation, Fina Oil & Chemical Company is in the process
of establising a Federal Communitization Agreement to
encompass Lots 12 and 15 of Section 6 , Township 8 North,
Range 58 West, 6th P . M.
I now enclose for your review and execution a copy of the
Communitization Agreement for the above referenced area with
Exhibits "A" and "B" , Colorado Commission Spacing Order 451-
1 along with six (6) copies of signature pages and a self
addressed, stamped envelope. Please execute the six ( 6)
copies of signature pages, have your signature acknowledged
by a Notary Public and return five ( 5) copies in the
enclosed envelope to me for my further handling with the
Bureau of Land Management. We wish to submit the Agreement
to the Bureau of Land Management as soon as possible,
therefore I respectfully request that you return the
executed pages so that I receive them prior to November 15,
1988 .
If you should have any questions, please feel free to
contact me at (303) 629-1850 .
Very truly yours,
UNITSOURCE INCORPORATED
aLS. c
Paul S . Conner
PSC/ljw
Enclosures
P. O.BOX 1707, DENVER,CO.,00201 11300 LAWRENCE ST.,SUITE 11410,80204-2060•(303)629-1850
004 (t')A
UnitSourct_ INCORPORATED
UNITIZATION
BRAD W. HENTSCHEL
PAUL S. CONNER
BONITA L.LIMPUS
December 14 , 1988 -I DEC 151988
DREELEY.
COMMITTED WORKING AND ROYALTY INTEREST OWNERS
RE: Communitization Agreement covering Lots
12 and 15 , Section 6 , T 1-R58W, Weld
County, Colorado
Ladies and Gentlemen:
Enclosed for your review and file please find a copy of the
Bureau of Land Management approval of the above referenced
agreement.
If you should have any questions please do not hesitate to
contact me . On behalf of Fina Oil & Chemical Company and
UnitSource Incorporated I wish to thank you for your
cooperation regarding this project.
Sincerely,
UNITSOURCE INCORPORATED
PLLQ S. C
onArk
Paul S . Conner
psc
enclosure
P.O.BOX 1707, DENVER,CO.,B020'1*11380 LAWRENCE ST..SUITE 11410,80204-2060*(303)629-1850
881034
' RECENED DEC 1 2
ENi O!j IWNc
W` _A United States Department of the Interior
. ..........
BUREAU OF LAND MANAGEMENT emmm w
omm No
4,“.00 CANON CITY DISTRICT OFFICE
P.O. BOX 311
CANON CITY, COLORADO 81212 3105
C0C49618
!c0-0 5)F14
Certificd ..a__ No. P 721 511 180
Return Receipt Requested
Unit Source Incorporated
Attn: Paul S. Conner
P.O. Box 1707
Denver , Colorado 80201
C .A. : CDC19E18
Lease . COC22405
Dear Mr. Conner:
_ uP. 1 eem r hi a:'.12. 1- 00-_9 „i18 .
Enclosed 15 one copy of _ yp pl_C -`
F the de__an This aur__ -ent
>na ,,_ aandd Y :. ice Company
conforms with the spacing Order Mo. 151-1 .
T '-rhts a: r R and associated natural
Y , agreement, ���runit rs all - 5 ,
gas producible from the D sand u
-Det i underlying ail of lots 12 and
Section 6, T.814. , R.S8V. , 6th P.M. , Meld County, Colorado. The agr em-nt "as
a been designated
approved 12,19/83 , and is effective F. I,So -- --,_
Comnunitisaticn Agreement COC4"612.
Benh reports, 1=-3160. "Monthly Report0perations, "
and JnS-12014, "Moatnly
Report of Sales and Royalty," must be ubni fo each Cgs nit'_ tior
4 submitted month,
agreement .'� s Th ales anbeginning. with the ::crib in which drilling 1- j n �-20 4 must be sub mitten -,inn ng : the
month rovalty report , a S�
production dui te. a and completion
production begins , including
operations. h- .NS 3140, r'-pent of v-:erat ns . _ to be ailed Denver ,
c. Minerals
Accounting Di y. , ox 17110,
::a;,c. 2nt Sa ire, Productions .c :c -n g F.0.- _
' a �G 20 m HMS-2014, saes and royalty•repent , 1s to be nailed
7 . .he ,
C.: 317 Denver ,
:in-_ray Management Service, Royalty ia,- -ue._-n _ r P.0. __
Colorado 8031'
Please furnish all interested princisals with - evidence of this
approval .
Sincerely yours .
14) .
ISL - - . 881034
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