HomeMy WebLinkAbout850007.tiff RESOLUTION
RE: APPROVAL OF DIVISION ORDER SUBMITTED BY BOUNTIFUL
CORPORATION, 1801 CALIFORNIA STREET, DENVER, COLORADO 80202
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 concerning land more particularly described as follows:
Township 6 North, Range 66 West, 6th P.M.
Section 25 : S1 SW1
Weld County, Colorado
WHEREAS, Bountiful Corporation has submitted a 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 Division Order as
submitted by Bountiful Corporation, 1801 California Street,
Denver, Colorado 80202 , on the hereinabove described parcel of
land be, and hereby is, approved.
850007
LEOWL1--5
Weld County. Colorado
Page 2
RE: DIVISION ORDER - BOUNTIFUL CORPORATION
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 13th day of
February, A.D. , 1985 .
nn BOARD OF COUNTY COMMISSIONERS
ATTEST: QZa (�nQCbr✓ WELD COUNTY, COLORADO
Weld County oClerk and Recorder
and Clerk to the Board J• c u ine J h on, Chairman
Alta-
Gene R.Brantner, o-Tem
D uty County rk �i
APPROVED AS TO FORM: C.W. K 'r -
� Y ,
County Atto ey
ran a -guc
sMP/l.:', DIVISION ORDER
BOUNTIFUL
TO: BOUNTIFUL LEASE NO. 050272
CORPORATION DATE 2/7,'85
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AR199870D
1801 California Street
Suite 900 -
Denver,CO 80202
(303)297.1801
-48The undersigned,and each of them,guarantee and warrant that they are the legal owners of their respective interests,in the proportions
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-, - hereinafter stated,In all oil produced and saved from the Petromax Energy Corporation
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Kissler - Amen #25-1 lease,
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O W located in Weld County,State of Colorado ,described as:
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° w Township 6 North, Range 66 West, 6th P.M.
n Section 25: S/2 SW/4
o Containing 77.75 acres, more or less
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N F Effective at 7:00 A.M. Date of First Purchase ,and until further written notice,you are authorized to
r.O a receive all such production,for your own purchase or for resale,to receive payment therefor,to give credit for all proceeds derived therefrom
O D and pay therefor as follows:
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co OWNER NO. CREDIT TO DIVISION OF INTEREST
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a For Division of Interests, see Exhibit "A" attached hereto and made a part hereof.
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Please note that you (as payee)are now required by law to provide Bountiful Corporation(as payor)with your correct tax identification
number.If you are an individual,your tax Identification number is your Social Security Number.If you do not provide us with your correct number,
the law requires that beginning January 1,1984,we withhold 20%of all payments made to you.In addition,you may be subject to a$50 penalty
Imposed by the Internal Revenue Service. -------
All covenants appearing on the reverse side hereof incorporated herein by reference and the undersigned agree that each shall be
deemed and considered an essential part of this division order in like manner and with the same effect as if printed above our signatures.
Board of County Commissioners
Weld County, Colorado SOCIAL SECURITY OR
A.
1 SIGNATURE QF. WITNESS S- SIGNATURE OF
OF OWNER TAX I.D. NUMBER
b 84-6000813
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MAILING ADDRESS r
P.O. Box 758
Greeley, CO r 80632
C - Zip Code
The following covenants are also part of this division order and shall become valid and binding upon each and every interest owner
above named upon execution hereof by such interest owner, and upon his or her successors, legal representatives and assigns, without
regard to whether any other interest owner or owners have so signed.
FIRST:All oil received and purchased hereunder shall be merchantable oil and shill become your property as soon as the same is re-
ceived into your custody or that of any carrier designated by you.
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 to the respective owners according to the division of interests herein specified at the price being
posted or paid by you at the time of such delivery. The term "oil" as used in this division order, shall include all marketable liquid hydro-
carbons.
THIRD: You shall compute quantity and quality, making corrections for temperature and deductions for impurities, according to the
d' O o customs and prevailing practice in effect at the time and place of delivery and subject to rules and regulations prescribed by any governmen-
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o - tal authority having jurisdiction in the premises.
N O
U FOURTH: Payments shall be made monthly for oil received and purchased during the preceding month, by your checks delivered or
amailed to the respective parties at the addresses above stated; provided that if,at any time,the monthly payment due any party hereunder
00 3 shall be less than twenty dollars($20.00),you may defer such payment,without interest,until the amount payable to such party equals or ex-
o ceeds the sum of twenty dollars in which event,payment shall be made at the next regular settlement date.Payment will be made at least an-
v} W nually. You are hereby authorized to withhold from the proceeds of any and all runs made hereunder each interest owner's proportionate
share of any tax levied and assessed by any governmental authority on the oil received and purchased hereunder and to pay the same in our
behalf.
in
a FIFTH: Satisfactory abstracts or other evidence of title will be furnished to you at any time on demand. Upon failure to furnish such
a as
evidence of title,or in the event of a claim or controversy which, in your opinion,concerns title to any interest hereunder,you may withhold,
x a without interest and without liability,proceeds of all oil received by you hereunder until you have been furnished with indemnity satisfactory
u1 a to you or competent evidence that such claim or controversy has been settled. In the event any action or suit is filed affecting title either to
co r the real property above described or to the production therefrom in which any of the interest owners are parties,written notice thereof stating
r"tZ the court in which the same is filed shall be immediately furnished to you by such owner against whom the action is commenced. Each in-
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terest owner agrees to hold you harmless and to protect and indemnify you against any and all loss, cost,expenses or liability which may
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o a arise from such suit.
o ] SIXTH:Working interest owners and/or operators who execute this division order,and each of them,guarantee and warrant that all oil
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N w tendered hereunder has been or will be produced and delivered in compliance with all applicable federal,state and local laws, orders, rules
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'o:4 SEVENTH:No transfer of any interest or change in the right to receive payments hereunder,however accomplished,shall be effective as
U a to you until 7:00 A.M.on the first day of the calendar month in which you are furnished a proper division or transfer order together with proof
PW4 satisfactory to you evidencing such transfer or change in the right to receive payments hereunder,and you are hereby relieved of any and all
o liability for payments made prior to receipt of a proper transfer order and a certified copy of the instrument of transfer.
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0 0 EIGHTH:This division order shall remain in full force and effect until cancelled by any party hereto upon giving thirty days written notice
in advance of any such cancellation which shall be mailed to the respective parties at the addresses shown herein.Cancellation by any in-
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terest owner or owners shall not be effective as to the interests of any other owner.
EXHIBIT "A"
PETROMAX ENERGY CORPORATION
KISSLER - AMEN #25-1
LEASE NO. 050272
OWNER
NUMBER NAME DIVISION OF INTEREST
d o Royalty Interest
o u 8843 Walter D. Amen .018537
M p 1/4 x 46. 12/77.75 x 1/8
8844 Kenton C. Amen .009269
1/8 x 46. 12/77.75 x 1/8
o 8845 Edwin A. Amen .009269
o 1/8 x 46.12/77. 75 x 1/8
w
9a 8846 IntraWest Bank of Greeley, as Mortgager .037074
of Poland H. & Mary E. Kissler
1/2 x 46.12/77.75 x 1/8
in %
N 8847 Kathryn M. Debus & Arlen M. Debus .027508
1/40 17.11/77.75 x 1/8
F4 8848 Jerry G. Dill .004461
Lo u 1/2 x 5.55/77. 75 x 1/8
z 8849 Dorothy A. Dill .001115
H 1/8 x 5. 55/77.75 x 1/8
o 8850 Helen M. Nelson .001115
a 1/8 x 5.55/77.75 x 1/8
o w 8851 Elberta Jean Ottesen .001115
1/8 x 5.55/77.75 x 1/8
1 8852 Emma Lou Sarchet .001115
1/8 x 5.55/77.75 x 1/8
u a 8853 Harvey D. Zeller & Elaine B. Zeller, .004277
z g Joint Tenants
CO H
2. 66/77.75 x 1/8
I o 0 8117 Weld County, a political Subdivision .010000
of the State of Colorado
ao w 6.22/77.75 x 1/8
8854 Flatiron Paving Co. of Boulder, .000174
a Colorado Corporation
.09/77.75 x 15%
Overriding Royalty Interest
6433 C.A. Patchen .009988
77.66/77.75 x 1%
603 Enserch Exploration, Inc. .062428
1/2 x (77.66/77.75 x 12.5%)
6434 Frank Wilson, Jr. .015732
1/2 x (77.66/77.75 x 3/5 x 5.25%)
6436 H & C Colton Company .005244
1/2 x (77.66/77.75 x 1/5 x 5.25%)
6435 Milton V. Spencer .005244
1/2 x (77.66/77.75 x 1/5 x 5.25%)
8855 H.C. Willet .000098
.09/77.75 x 8.5%
6083 Bellwether Exploration Company .000017
.09/77.75 x 1.5%
To continue the Division of Interests, see Exhibit "A" - Page 2 attached hereto
and made a part hereof.
EXHIBIT "A" - PAGE 2
PETROMAX ENERGY CORPORATION
KISSLER - AMEN #25-1
LEASE NO. 050272
OWNER
NUMBER NAME DIVISION OF INTEREST
Working Interest
*6434 Frank Wilson, Jr. .060867
1/2 x (3/5 x 25% x 81.25% x 77.66/77.75)
*6436 H & C Colton Company .020289
1/2 x (1/5 x 25% x 81.25% x 77.66/77.75)
*6435 Milton V. Spencer .020289
1/2 x (1/5 x 25% x 81.25% x 77.66/77.75)
7111 ***First City Energy Finance Company .674775**
F/A/0 Petromax Energy Corporation
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*** Petromax Energy Corp. .337387
c O 1/2 x (1/2 x 74% x 77.66/77. 75)
+ 1/2 x (1/2 x 75% x 81.25% x 77.66/
77.75) + 1/2 x (75% x .09/77. 75)
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O 3 Petromax Energy Corp. .253041
o a 1981 Max Drilling Program
to-a 3/8 x (1/2 x 74% x 77.66/77.75)
+ 3/8 x (1/2 x 75% x 81.25% x 77.66/
77.75) + 3/8 x (75% x .09/77.75)
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Petromax Oil & Gas, Inc. .084347
1/8 x (1/2 x 74% x 77. 66/77.75) .674775**
~ z + 1/8 x (1/2 x 75% x 81.25% x 77.66/
,n 77.75) + 1/8 x (75% x .09/77.75)
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TIFUL ° C" '�s- �
ORf TION February 6, 1985 N •
FE81 1885
RE : Petromax Energy Corp.
Kissler-Amen #25-1
Weld County , Colorado
Lease No. 050272
Dear Interest Owner :
Based upon the Division Order Title Opinion and additional
information furnished to us , we have prepared the enclosed
Division Order for your execution .
Please examine the Division Order for accuracy , and , if you
are in agreement , execute one copy being certain to include your
correct mailing address and Social Security and/or Tax
Identification Number in the spaces provided . An executed and
witnessed copy must be returned to this office . The extra copy
has been provided for your file and future reference.
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We request the Division Order be received in our office on or
before the 12th of the month , to ensure that our payment is mailed
to you on the 20th of the month. This will establish payment of
the interest on a monthly basis for oil purchased the prior
month(s) , providing that the accrued interest is at least $15.00.
If you have any questions concerning the enclosed Division
Order , please contact our office .
Sincerely,
BOUNTIFUL CORPORATION
Sandra M. Parsons
Manager - Division Order/
Title Department
SMP:mlt
ends .
900 City Center 4 • 1801 California Street • Denver,Colorado 80202 • (303)297-1801
•
• Penn 6458
(ftay. soumser tear a"rardicatlon and Election Form is ire
Daeslteimt d ow omen Se Ses separate instructions Wilda ►3a.a
lalsfesi gr as Samos
Name• I Taw k...ut MtR number
- Weld County, Colorado , Board of County Commies onerq 84-6000814
Address (number and street)
915 10th Street, P .O. Box 758
City or town. State and ZIP code
Greeley, CO 80632
Name of purchaser (any completed by a purchaser woo is forwarding a qualified disburser election) Texpsyee Identifying number
ciPartt.l. Exemption Certificate
I certify that all my production from the properties on the attached list is exempt from the windfall profit tax.
I am entitled to this exemption because I qualify for the status indicated below(check applicable box):
® Qualified governmental interest(section 4994(a)) ❑ Exempt Indian oil (section 4994(d))
• Qualified charitable interest(section 4994(b)) O Qualified independent producer of exempt stripper well oil (section
- ---—4091([),only epodes to oil nrhevea}elter 1962) -
I understand that I must file Part III within 30 days after I no longer qualify for exemption from the windfall profit tax.
under penalties of penury,I declare thet i have examined this certificate, including acparnoanymg instructiwn, and to the beat of my knowledge and
belief. it is true. correct. and complete.
Chairman, Board f County Commione> rs
Signature of exempt oroducer ► a YW�.lyo'(� Date ► 2/13/85
Y:Partt;Iliii Independent Pr ear C
I certify that I qualify as an independent producer as defined in section 4992, and that all my taxable production from the prop-
erties listed on the attached sheet is entitled to the lower rate of windfall profit tax for tier one and tier two oil.
The total taxable production from these properties (plus production from other qualified property that I have certified)does not
exceed my share of the 1,000 barrel a day amount for Independent producers.
I certify that (check applicable box):
I am a member of a related group (as defined in section 4992(6)(2)). I ant attaching a list to the Form 6458 that I am filing with
the IRS showing the name and taxpayer identifying number of all other members of my' related group."
O I am not a member of a related group (as defined in section 4992(e)(2)).
I understand that I must file Part Ill within 10 days after I no longer qualify as an Independent producer.
Under Densities of penury. I declare inat i have examined this Certificate. including accompanying rnetructlens. and to the beet ef my knowledge and
belief, it is true. correct. and complete.
Signature of independent producer P. Date ►
Part ill. Revocation of a Previously Filed Certificate
I no longer qualify for exemption from, or reduced rates of, the windfall profit tax. The status that I previously claimed was:
O Qualified governmental interest O Independent producer O Qualified independent producer of exempt stripper well oil
O Qualified charitable interest O Exempt Indian oil
Oats of original certification ► Service Center where flied ► •
Effective data of revocation ►
Signature of producer P. Dale ►
•Pad 1V-. Qualified Disburser Election
I certify that I am a Qualified disburser as defined In regulations Issued under section 4995 and that I hereby elect to perform ail the
duties normally imposed upon the purchaser in regard to the administration of the windfall profit tax.
I understand I must file Part VI within 10 days after this election is terminated.
Effective date of election
Property(include lull lease nem._, '.cation, and identifying number.if applicable)
'tgnature el cwldled d,,ouner pats
For Paperwork Reduction Act Notice, see page 1 of the instructions. 363-475-1 Form 6458 (Rev. 9-82)
BOUNTIFUL,
CORPORATION
The Economic Recovery Tax Act of 1981 provides a Windfall Profit Tax exemption for
two barrels per day for "Qualified Royalty Owners" during 1982 through 1984 and
three barrels per day for 1985 and thereafter. Only individuals, estates, qualified
trust beneficiaries, and family farm corporations (as defined by IRS code Sections
6429 and 6430) may qualify for the exemption. If you are a member of a family, a
shareholder in a family farm corporation or you are a qualified trust beneficiary,
you must share the two barrel per day exemption as explained on Form 6783 (Qualified
Royalty Owner's Exemption Certificate) .
This exemption does not apply to corporations, not does it apply to overriding
royalty, production payment or net profits interests created after June 9, 1981
out of an operating mineral interest in a proven oil property.
To qualify for the exemption, you must certify on a property-by-property basis to
the purchaser using the enclosed IRS Form 6783. Please note that it is most advan-
tageous to exempt the lease(s) with the highest tax rate, if you have a choice.
A single property cannot be split and be treated as partially exempt and partially
taxable. Also, please consider your production purchased by other companies since
the total exemption cannot exceed two barrels per day per qualified royalty owner.
If your total qualified royalty production exceeds two barrels per day for all your
properties, certify only those properties which produce up to, but not more than
two barrels per day. At the end of the year, Bountiful Corporation is required to
provide you with a Form 6246 (Annual Information Return of Windfall Profit Tax) and
you may then settle any differences directly with the Internal Revenue Service.
We must receive your certification detailing which properties are to be exempted
since we are required by law to continue withholding Windfall Profit Tax from your
check until that time. In order to allow us enough time to properly process your
exemption certification, please sign and date the completed form and return it to
us before the 15th of next month.
If your total production increases after you have certified, Part B of Form 6783
allows you to revoke any previously filed certification. Similarly, if any new
properties begin production at a later date, a supplemental Form 6783 will be
required to exempt your interest from the Windfall Profit Tax.
If you have any questions at all concerning the filing of this certification, please
do not hesitate to direct your inquiries to Marsha Stern, (303) 892-1115. We would
like all Royalty Owners to receive full benefit of the new law.
Very truly yours,
1/41k--) 3640
(Ms.) M. D. Stern
Tax Accounting Supervisor
Enclosure
900 City Center 4 / 1801 California Street / Denver, Colorado / (303) 297-1801
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