HomeMy WebLinkAbout920225.tiff AR22812II8
RESOLUTION
RE: APPROVE OIL AND GAS DIVISION ORDER TO ASSOCIATED NATURAL GAS, INC. FROM
DACONO OIL COMPANY 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, has received an Oil and Gas Division Order
to Associated Natural Gas, Inc. , P.O. Box 5493, Denver, CO 80217, from Dacono
Oil Company, and
WHEREAS, said Division Order covers land more particularly described as
follows:
Township 2 North, Range 67 West, 6th P.M.
Section 31: SE;NW}
Weld County, Colorado
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 a member of 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 Oil and Gas Division Order to Associated Natural Gas,
Inc. , P.O. Box 5493, Denver, CO 80217, from Dacono Oil Company, 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.
B 1329 REC 02281208 03/17/92 14:55 $0.00 1005
F 0137 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
920225
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DIVISION ORDER - ASSOCIATED NATURAL GAS, INC.
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 11th day of March, A.D. , 1992.
BOARD OF COUNTY COMMISSIONERS
ATTEST:. fi" Mas WELD COUNTY, COLORADO
tiorw/4
Weld County Clerk to the Board EXCUSED DATE OF SIGNING - (AYE)
Geor a Kennedy, Chairman
BY:
Deputy C e .,Board \ ns ance L. Harbert, Pro-Tem
APPROVED Al . , ,E0RMZ�� '
y C. W. Kir
<
ounty Attorney Gord ac
W. H. We ster
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F 0138 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
920225
DIVISION 0lntn
(COi$LnD CAS ADD OIL)
Ft 13 2
10: ASSOCIATED RATWIL SAS, INC. ('AMGI') C,__:;
MISPRINT AN)M TRADING COIPANT (•ATTCO') c`-�,
Pest Office Ekot Son TO •i '� -��'` -' Gas 45016118
Dew. Colorado nil oil soasoAB
ATTN: Division Order Oprtannt Leese No,
DateNovember 27, 1991
Plant
The undersigned, end each of us. certify and guarantee that we are the legal owners of end hereby warrant the title to our
respective interests in the proceeds derived from the sale of Gas end Oil (as more individually defined herein) produced end
saved free the Frederick Unit B lease or unit located in the County or Parish of Weld
State of t.olorado more perticularly described es follows:
Township 2 North. Rana. 67 West
Section 31: S!/4NW/4
As to production from the Sussex-Shannon formation
OIMEN N0. CREDIT TO DIVItltlN illfirENEr DECRIAL
Sam attached exhibit "A" for ownership listing
Effective 8:00 A.N. nate of First Pssrrha.a . and until further notice, you are hereby authorized to take or retain
possession of all Gas and Oil froe said property(ies) on and after the effective day and to give credit as tet forth above for
all proceeds derived fro. the sale thereof froa said property(ies) subject to the conditions, covenants and directions set out
below:
FIRST: It is understood that the Gas produced from the above-described property(ies) is being sold
under that certain Gas Purchase and Processing Agreement dated November 1 , 19 91. between
Dacono Oil Company as 'Seller' end ASSOCIATED NATURAL GAS,
INC. as 'Buyer', and that all terms and covenants contained therein, and in any amendments, extensions,
or renewals thereof shall govern and be binding upon the parties hereto in all respects which shall
include, but not be restricted to, the price to be paid for said Gas end the time when such payaents
are to be made. As used in this Division Order, the ten 'Gas' shall be deemed to include casinghead
gas, gasoline and all products which Associated Natural Gas, Inc. may receive and/or recover by
processing from Gas produced froe veils on said property(ies).
All covenants appearing on the reverse side hereof are 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.
The undersigned expressly waive any claim against MGI and ATTCO for any and all amounts which may be due us from others for
production prior to the effective date hereof.
Owners Sign Below Taxpayer identification or
Si. tsar , f '',�,, / ter Rafting Address Social Searity Muter
ATTE T• *[?Ll % �� / 84-6000813
GE GE KENN Y, CHAIRMAN
BY: ✓ y i i i � % WELD COUNTY BOARD-OF COMMISSIONERS 03/11/92
IEPUTY L R a BOARD Address P.O. BOX 758
GREET.EY CO 80649
Address
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F 0139 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
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920225
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SECOND: The word •01V-as used herein shell include, but is not—!sited to, condensate end all Marketable liquid hyd rbons produced end semi hereunder, but zcltding that recovered troe
processing of Gas. Al( set received arid purchased hereunder shell be merchantable 011 and shalt become
the property of ATTCO es aeon,as the same is received into its custody or that of any carrier it
designates. ATTCO shall not be expected to receive Oil in definite quantities, nor for fixed periods,
nor to provide storage.
THIRD: The Oil received and purchased herwtder shall be delivered f.o.b. to any carrier ATTCO
designates which gathers and receives said Oil end ATTCO agrees to pay for such oil to the undersigned
according to the division of interests herein specified et the price *greed upon between ATTCO end the
less. operator.
FOURTH: guentities of Oil purchased hereunder shall be determined by the method of measurement end
computation employed by ATTCO or ATTCO's pent designated to receive such Oil including but not by way
of limitation, the gauging of storage tanks using regularly compiled tank tables, the use of certified
truck gauges, and the use of meters or any other reasonably accurate method of measurement and
computation. ATTCO shall correct the volume and gravity to temperature of d0° Fahrenheit and shall
deduct fro& such corrected volume the full percentages of basic sediment, water end other impurities
as shown by its teat. ATTCO may refuse to receive any Oil it considers to be not merchantable.
FIFTH: Payments see to be made monthly by checks of ANGI for Gas and ATTCO for Oil to be delivered
or mailed to the parties thereto entitled at the odd above given, provided that if the amount
due any owner is less than Twenty-five end 00/100 Dollars ($2S.00) per month, ANGI or ATTCO, at its
option, may defer the making of such payment until such time as the aggregate amount due exceeds said
sum. The undersigned authorize ANGI and ATTCO to withhold from the proceeds of any and all Gas and
Oil referred to herein, the amount of any tax placed thereon, or on the production thereof, including
but not Baited to any severance, production or occupation tax, by any governmental authority, local,
state and/or federal, and to pay the same in our behalf with the proceeds so withheld.
GIRTH: In the event of any ad (Aim of title or in the event title shall not be satisfactory to
ANGI or ATTCO at any time during the term of this Division Order, each of the undersigned agrees to
furnish complete abstracts of title end other evidence of title satisfactory to ANG1 and/or ATTCO and
authorizes same to withhold payment without obligation to pay interest on the amount so withheld, until
satisfactory indemnity shell be furnished to ANGI and ATTCO. Each undersigned party es to the interest
of such party hereunder respectively agrees, in the event suit is filed in any court affecting title
to said Gas and/or Oil, either before or after severance, to indemnify and save harmless ANG1 and ATTCO
against any end all liability for loss, cost, damage and expense which ANGI or ATTCO may suffer or incur
on account of receiving and paying said party the proceeds derived from the sale of said Gas end/or
Oil. Where ANGI and/or ATTCO, pursuant to the provisions hereof, withholds payment or any pert thereof,
each undersigned party from whom payment is withheld severally agrees to indemnify and hold ANGI and
ATTCO harmless of end from ell liability for any tax, together with all interest and penalties incident
thereto, imposed or assessed against or paid by them on account of the sun or sums so withheld from
payment to said party and deduct all such taxes, int nd penalties so paid by them from any sues
owing by them to said party. If .suit is filed affecting the interest of the undersigned, written
notice thereof shall be given ANGI and ATTCO at the above address by the undersigned, together with
a certified copy of the complaint or petition filed. If ANGI or ATTCO are made • party to such
proceedings, the undersigned agrees to indemnify same against any judgment rendered therein end to
reimburse ANGI and *TIC° for any costs, attorney's fees or other expenses incurred in connection
therewith.
SEVENTH: The undersigned severally agree to notify ANGI and ATTCO of any change of ownership and no
transfer of interest shalt be binding upon ANGI or ATTCO until transfer urder end the recorded
instrument evidencing such transfer, or • certified copy thereof, shall be furnished to ANGI or ATTCO.
Transfer of interest shall be made effective 8:00 a.m. on the first day of the calendar month in which
proper notice is received by ANGI end ATTCO, ANGI and ATTCO are 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 es a result of the completion of 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, agree to give ANGI and ATTCO notice in writing by registered letter addressed to ANGI and ATTCO
at the above address, directed to Division Order Department, when any such money or other payments have
been completed or discharged, or when any division of interest other than that set forth above shall,
for any reason, become effective and to furnish transfer order accordingly and that in the event such
notice shall not be received. ANGI and ATTCO shall be held harmless in the event of, end are hereby
released from any and all damage or loss which might out-of any overpayment. Should adjustments
be necessary, ANSI and ATTCO shall have rights (but no duty) to set off any and all individual or joint
liabilities the undersigned hes with same, including but not limited to proceeds from this end other
lease interests owned by the undersigned.
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EIGHTH: If any portion of the proceeds derived from the sale of Gas is subject to refund under any
order, rule or regulation of the Federal Energy Regulatory Commission or the provisions of the Natural
Gas Act or Natural Gas Policy Act of 1978, ANGI say hold without interest the portion of the proceeds
subject to refund unless indemnity satisfactory to ANGI has been furnished, or until ANSI's refund
obligation has been finally determined. If any portion of the proceeds derived from the sale of Gas
is paid over by ANGI under any order, rule or regulation of the Federal Energy Regulatory Commission
or the provisions of the Natural Gas Act or Natural Gas Policy Act of 1978, ANGI and ATTCO are
authorized to recover the amount of the refund applicable to the interest of each of the undersigned
from future payments (Gas end Oil) or at ANG1's election, it may invoice the undersigned therefor, plus
the legal rate of interest ANGI is or may be required to pay in connection with the undersigned's
portion of the refund.
NINTH: If the undersigned is a working interest owner and/or operator, he or she guarantees and
warrants that ail Gas and Oil tendered hereunder has been or will be produced and delivered in
compliance with all applicable federal, state and local laws, orders, rules and regulations.
TENTH: This Division Order shall become valid end binding upon each and every owner above named upon,
execution hereof by such owner regardless of whether or not any of the other above-named peers-have
so signed. No termination of this Division Order shall be effective without giving thirty (30)•days
prior written notice. If the provisions of this Division Order are in conflict with the provisions
of any oil and gas lease covering the above-described property(ies), the provisions of this Division
Order shall prevail. Each undersigned owner ratifies and confirms his oil and gas lease as being in
full force and effect es of the date hereof. In consideration of the purchase of Gas end Oil hereunder,
consent is given ANGI and ATTCO and any pipeline company Mich same may cause to connect with the wells
end tanks on said land, to disconnect and remove such pipelines, in case of termination by either ANGI
or ATTCO or the undersigned of any purchases under this Division Order. In the event of conflict
between the provisions of this Division Order and applicable law or regulations, the provisions of this
Division Order shall be deemed modified so as to comply with such lw or regulation.
B 1329 REC 02281208 03/17/92 14:55 $0.00 4/005
F 0140 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO p p r7
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9Zv'22ai
EH I I:I ' A --
4 01;:,AB FREDERICK UNIT /5/
50850AIi
OWNER NO CREDIT TO PERCENTAGE INTEREST
11'29 WELD COUNTY 1 . 117`=>10 RI
3979Z ABEL MAES JR . 082750 RI
I9;=56 ROBERT T AND MARY JO ROOARK .090560 RI
39903 INGERID DITLEV 3 .972010 RI
3996,9 ARILD DITLEV 3 .972030 RI
40346 ANDREW A TAF+JYA . 1'21780 RI
40392 SAINT VRAIN VALLEY PUBLIC: 3 .217900 RI
40519 VICTOR J TRUJILLO LLO .087440 RI
40626 LEASE SUSPENSE . 181110 RI
406,55 VIRGIL RG I L R _. JEAN G L I B,BBY .215460 RI
40762;: RICHARD MAES . 170180 RI
14630 NORTH AMERICAN RESOURCES 3 .023780 WI
COMPANY, INC .
'9457 BASIN EXPLORATION I NC: 80. 737570 WI
39886 RAY K .. MARY F DAVIS .604760 WI
3990_: INGERID DITLEV 1 .20 220 WI
39969 ARILD DITLEV 1 .20 22:0 WI
100.000000
B 1329 REC 02281208 03/17/92 14: 55 $0.00 5/005
F 0141 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
920225
ANGI
A5SOCIITED NW'ML 645, INC.
February 28. 1992
.
Mr. Bruce T . Barker 1 1i1 +
Office of County Attorney I
r;' : . Q` l
1..32
P. O. Box 1948
Greeley , Colorado 80632 WELD COUNTY
ATTORNEY'S OFFICE
Re: Frederick. Unit "8"
Weld County , Colorado
ANGI Lease #45016AB
ATTCO Lease #50850AB
Dear Mr . Barker:
We have received your letter- of December 16, 1991 , questioning the
interests attributed to Weld County in the captioned unit ,
The information in our files from Amoco is very_ sketchy . However,
the background of your interest change appears to be as follows:
1 ) December 12, 1984 , information received by Amoco ' s
Division Order Dept . shows Weld County owning 1 . 21/40.03
x 1 /8 RI in Tract 2; 2. 71/40. 03 x 1/8 RI in Tract 4.
Tract 4 was defined as "Blk . 22: Lots -i6; Blk . 23;
Lots 1- 10. "
2 ) January 22, 1985, information received by Amoco' s
Division Order Dept . shows that Weld County owned the
same interest in Tract 2. However , Amoco' s records
reflect a change in the land description in Tract 4.
0 y{ 1 � 6 . Tract 4 acreage had dropped from 2. 71 acres to 2 . 37
acres and the area was defined as "Blk . 22 : Lots 3-16;
Blk . 23: Lots 1 ,2 , 5,6 ,8,9 , 10. " Revised Division Orders
dated August 16, 1985 were sent to all parties . We
have executed copies in the file from most parties,
however , none from Weld County .
We have nothing in our files to reflect the reason for the acreage
change. However , we do suggest that you check your revenue
statements for this well to ascertain that Amoco was paying you the
1 .22408% RI you originally owned , instead of the revised 1 . 11791%
shown on Amoco' s August 16, 1985 Division Order.
9 0225
900 REPUBLIC PLAZA • 370 SEVENTEENTH STREET • DENVER,COLORADO 80202 • (303)595-3331 • FAX(303)595-0480
MAILING ADDRESS: P.O. BOX 5493 • DENVER, COLORADO 80217
ANG1
ASSOCIKTED Nam 645, INC.
Mr. Bruce T . Barker
Page 2
February 29, 1992
Hopefully , this explanation clears up your questions; if not,
please contact us again, or contact Basin Exploration, the Operator
of the unit ( 303-292-2322) .
Sincerely ,
ASSOCIATED NATURAL GAS, INC .
ASSOCIATED TRANSPORT & TRADING COMPANY
Diane Schaenen
Division Order Analyst
DS: blg
Enclosure
920225
`fir 0 OFFICE OF COUNTY ATTORNEY
PHONE'3081356 4000 °XT. 4 391
Alm
P O BOX 1948
C;=,,EEL_.8 nCLCEAD3 80632
December 16 , 1991
COLORADO
Associated Natural Gas, Inc.
Associated Transport & Trading Co.
Attention: Division Order Department
P. O. Box 5493
Denver, CO 80217
RE : Division Order for Weld County, Colorado
Dear Sirs :
Enclosed are copies of the following documents :
A. Proposed Division Order dated November 27 , 1991, for the
Frederick Unit B found in the SE4 NW4 Section 31 , T2N,
67W of the 6th P.M. , Weld County, Colorado, provided by
Associated Natural Gas, Inc .
B. Division Order for the same well from Amoco Production
Company as approved by the Board of County Commissioners
of Weld County, Colorado, by Resolution dated March 27 ,
1985 .
As you can see from the Amoco Production Company Division Order,
the royalty interest as established in 1985 was 1 . 224080 . The
royalty interest stated in your Division Order for the same well is
1 . 117910 .
Before I recommend to the Board of County Commissioners of Weld
County, Colorado, that it should approve your Division Order, I
respectfully request that you provide me with an explanation as to
the reason for the discrepancy between the Division Order approved
in 1985 and your proposed Division Order for the same parcel .
Thank you for your anticipated cooperation and assistance in this
matter.
Yours truly,
Bruce T. Barker
Assistant Weld County Attorney
BTB:bp
Enclosures
pc: Clerk to the Board
920225
14441
ASSOCItTED NaIRAL 645, INC.
INSTRUCTIONS TO ALL INTEREST OWNERS
THE ENCLOSED GAS DIVISION ORDER OR GAS TRANSFER ORDER SHOULD NOT BE ALTERED
IN ANY WAY EXCEPT TO CORRECT SPELLING ERRORS, UNLESS ACCOMPANIED BY
DOCUMENTARY EVIDENCE TO SUPPORT THE (MANGE.
If your name and interest are correctly shown:
1. Sign your name as shown on the Gas Division Order or Gas Transfer
Order.
2. Have your signature witnessed by two competent witnesses.
3. If your name has changed due to marriage or divorce, execute the
Gas Division Order or Gas Transfer Order using your present name
and furnish a copy of the marriage certificate or divorce decree.
4. If signing for a corporation, signature must be attested,
corporate seal fixed and title of signatory party reflected.
5. If signed by agent, attorney-in-fact, guardian or any party other
than the named interest owner, a certified copy of the power of
attorney or other evidence of such party's right to sign must be
furnished.
6. Gas Division Orders or Gas Transfer Orders for partnerships must
be executed by all partners or by an authorized partner. A
certified copy of the instrument giving said partners authority to
sign must be furnished.
7. Should you fail to provide your correct Social Security Number or
Tax Identification Number, the law provides that we withhold 20%
of all production proceeds due you. You may also be subject to a
further penalty levied by the Internal Revenue Service.
8. Your correct mailing address should be noted in the space provided
to insure prompt receipt of production proceeds.
9. The white copy or the "Original" of the Gas Division Order or Gas
Transfer Order should be returned to:
ASSOCIATED NATURAL GAS, INC.
P.O. BOX 5493
Denver CO 80217
ATN: DIVISION ORDER DEPARTMENT
10. Should you have any further questions regarding the enclosed Gas
Division Order or Gas Transfer Order, please contact your Operator
or Associated Natural Gas, Inc. at (303) 595-3331.
11. Please DO NOT DETACH the Exhibit from the Gas Division Order or
i Gas Transfer Order if one is included. 920225 •
900 REPUBLIC PLAZA • 370 SEVENTEENTH STREET • DENVER,COLORADO 80202 • (303)595-3331 • FAX(303)595-0480
. ..,...,,. new noenn nm17
ASSOCIATED RIM 645, INC.
November 27, 1991
TO ALL INTEREST OWNERS:
Effective with October , 1991 production, Associated Natural Gas,
Inc. purchased the Spindle Field Gas Plant from MW Petroleum
Corporation (Apache) and will be disbursing revenue on wells for
which Division Orders are enclosed . Effective November 1 , 1991
production , Associated Transport & Trading Company will begin
purchasing oil on these same wells and will also assume
disbursement responsibility for revenue. Effective October 1 ,
1991 , Basin Operating , Inc. will become Operator of the wells.
To accommodate these changes, enclosed please find Oil and Gas
Division Orders for execution in accordance with the attached
instruction sheet. Return to the below listed letterhead address
at your earliest convenience. Should executed Division Orders not
reach Associated Natural Gas, Inc. within 45 days, revenues will
be suspended pending receipt of same.
Oil checks are issued on the 2Oth of each month; gas checks are
issued on the last day of each month. For the month of October,
1991 production only , revenues will be disbursed late as we are in
the process of getting information loaded into the computer. Both
Associated Natural Gas, Inc. and Associated Transport & Trading
Company have a $25.00 minimum value before a check is issued .
Monies less than $25.00 remain in a minimum suspense account until
the $25.00 is reached or all monies are released once a year in
December ( if the minimum is not met) .
Associated Natural Gas, Inc. /Associated Transport & Trading Company
look forward to being of service to you.
Yours very truly ,
ASSOCIATED NATURAL GAS, INC.
ASSOCIATED TRANSPORT & TRADING COMPANY
LA W.& 4-€
Barbara L. Buck
Manager, Division Order Department
BLB:blg
Enclosure
92;0225
900 REPUBLIC PLAZA • 370 SEVENTEENTH STREET • DENVER,COLORADO 80202 • (303)595-3331 • FAX(303)595-0480
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