HomeMy WebLinkAbout920082.tiff AR2277352 RESOLUTION
RE: APPROVE GAS AND OIL DIVISION ORDER TO ASSOCIATED NATURAL GAS, INC. FROM
DACONO OIL COMPANY AND AUTHORIZE CHAIRMAN TO SIGN
Lfl p WHEREAS, the Board of County Commissioners of Weld County, Colorado,
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U 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
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w WHEREAS, Weld County, Colorado, has received a Gas and Oil Division Order
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o g to Associated Natural Gas, Inc. , P.O. Box 5493, Denver, Colorado 80217, from
o a Dacono Oil Company, and
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O u WHEREAS, said Division Order covers land more particularly described as
follows:
Township 2 North, Range 67 West, 6th P.M.
x Section 26: N;NEL
Weld County, Colorado
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o ri WHEREAS, Weld County is entitled to a one-eighth royalty interest on
w production, and
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`4 WHEREAS, in order to receive said royalty interest, Weld County must
en w execute said Division Order, a copy of which is attached hereto and incorporated
z herein by reference, and
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o z WHEREAS, said Division Order has been reviewed by a member of the Weld
w 1 County Attorney's staff and found to be in order, and
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V' CO WHEREAS, the Board deems it advisable to approve said Division Order on the
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parcel of land described herein.
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NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the Gas and Oil Division Order to Associated Natural Gas,
Inc. , P.O. Box 5493, Denver, Colorado 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.
920082
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DIVISION ORDER - ASSOCIATED NATURAL GAS, INC.
PAGE 2
o V The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 29th day of January, A.D. , 1992.
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/0BOARD OF COUNTY COMMISSIONERS
ATTEST: I �1��� WELD COUNTY, COLORADO
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0 3 Weld County Clerk to the Board n>
,x 7' '., j l Geo e Kenne y, Chairman
a BY: %(4JJ2 /r 712, - '
o Deputy Clerk to the Board—_____) Constance L. Harbert, Pro-Tem
APPROVED AS TO FORM: -i7/ "c
C. W. Kirb
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N H W. . Webster
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920082
DIVISION CIDER c
(CONDINED CAS AND OIL)
TO: ASSOCIATED MAI1*AL SAS, INC. (*ANSI')
ASSOCIATED wNSPORT NC IRADINC COMPANY ("ATTCO") 10
Pest elitee Sax 5493 - Gas
Denver. Colorado 80217 Oil 50B71B
ATTN: Division Order Department Lease No.
November 27, 1991
Date
Plant
The undersigned. and each of us, certify end guarantee that we are the legal owners of end hereby warrant the title to our
respective /nt in the proceeds derived from the sate of Ass and Oil (aa wore individually defined herein) produced sea
saved from the wa1A r.,.,nty Unit B _. tease or unit located in the County or Perish of Weld. .
State of Colorado more particularly described as follows:
Township 2 North. Range 67 West
Section 26: 0/202/4
• As to production from the Sussex formation
COWER M0, CREDIT TO DIVISION Of INTEREST DECIMAL
See attached exhibit "A" for ownership listing
B 1325 REC 02277352 02/05/92 14 : 39 $0 . 00 3/005
F 0829 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
Effective 8:00 A.M. Date of First Purchase , and until further notice, you Ire hereby authorized to take or retain
po ion of all Gas and Oil fro, said property(ies) on end atter the effective day and to give credit as set forth above for
all proceeds derived from the sale thereof from said property(les) subject to the conditions, covenants and directions set out
below:
FIRST: It is understood that the Gas produced from the above-described propertyc its) it being sold
under that certain Gas Purchase end Processing Agreement dated November 1 19 91 , between
Dacono Oil Company as 'Seller' and ASSOCIATED NATURAL GAS,
INC. as 'Buyer', and that ell terms .,,d covenants contained therein, and in any amendments, extensions,
or renewal: thereof shall govern end 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 and the time when such payments
are to be made. As used in this Division Order, the term 'Gas' shall be deemed to include casinghead
gas, gasoline end all products which Associated Natural Gas, Inc. may receive and/or recover by
processing fro.. Gas produced from wells on said properlyfies).
Ali 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 ANGI and ATTCO for any and all amounts which may be due us fro. others for
production prior to the effective date hereof.
W Owners Sign Delay Taxpayer identification or
Si (Enter Nailing Add s) Social Security Number
ATTEST 84-6000813
LERK TO H.iBO GEORGE KE EDY, CHAIRMAN
B • / _aS s. C - s WELD COUNTY BOARD.OF COMMISSIO S 01/29/92
DEPUTY L RK TO BOA' ! Address B.0. BOX 758
GRFFLFY. CO 80632
Address
Address
f 920082
f.
RCONU: The word •01t es used herein shall include, but is not ttalted to, condensate and ell
marketable liquid hydrocarbons produced and caved hereunder, but excluding that recovered from
processing of Gas. All Oil received end purchased hereunder shall be merchantable Oil and shell become
the property of ATICO as soon as the same is received Into its custody or that of any carrier It
designates, ATTCO shell not be expecte to receive Oil In definite quantities, nor for fixed periods,
nor to provide storage.
THIRD: The Oil received end purchased hereunder shell be delivered f.o.b. to any carrier ATICO
designates which gathers and receives said Oil and ATTC0 egrets to pay for such oil to the undersigned
according to-the division of interests herein specified at the price agreed upon between ATTC0 and the
in p lease operator,
00
o FOURTH: Quantities of Oil purchased hereunder der shalt be determined by the method of measurement end
computation aeploYad by ATTCO or A7TC0•a
of limitation, the gauging of storage tanks usinent g
designated to receive such 011 including but not by way
UD regularly compiled tank tables, the use of certified
truck gauges, and the use of meters or any other reasonably accurate method of measurement and
Ca computation. ATTCO shell correct the volume end gravity to • temperature of 600 Fahrenheit and shall
o C7 deduct free such corrected volume the full percentages of basic sediment, water and other lapurit tea
o 3 as shown by its test. ATTCO may refuse to receive any Oil it considers to be not merchantable.
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►IrTN: Payments ere to be made monthly by checks of ANGI for Gas and ATTCO for Olt to be delivered
6' or mailed to the partiet thereto entitled et the addresses shove given, provided that if the amount
e.O due any owner is less than Twenty-five and 00/100 Dollars (;25.00) per month, ANGI or ATICO, at its
U option, may defer the making of such payment until such time at the aggregate amount due exceeds said
al sum. The uders igned authorize ANGI and ATTCO to withhold fro, the proceeds of any and all Gat and
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Oil referred to herein, the amount of any tax placed thereon, or on the production thereof, including
but not limited to any severance, production or occupation tax, by any governmental authority, local,
czr state and/or federal, and to pay the same in our behalf with the proceada so witheld.
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• GIRTH: In the event of any adverse claim of title or in the event title shall not be satisfactory to
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ANGI or ATIC0 at any time during the term of this Division Order, each of the undersigned agrees to
m 0 furnish complete abstracts of title and other evidence of title satisfactory to ANGI and/or ATTCO and
in 2
authorizes same to withhold payment without obligation to pay interest on the amount so withheld, until
O H satisfactory indemnity shall be furnished to ANGI and ATICO. Each undersigned U party t f ct interest
NF of such party hereunder respectively agrees, in the event suit is filed in any court affecting title
o to to said Gas and/or Oil, either before or after severance, to indemnify and save harmless ANGI and ATTCO
against any and all liability for loss, cost, damage and expense which ANGI or ATICO may suffer or incur
fay on account of receiving and paying said party the proceeds derived from the sale of said Gas and/or
N Oil. Where ANGI end/or ATiCO3 pursuant to the provisions hereof. withholds
in t" each undersigned payment or any part thereof,
in W 0 party frog whom payment is withheld severally agrees to indemnify and hold ANGI and
N ATTCO harmless of and from all liability for any tax, together with all interest and
NZ thereto, imposed or assessed • ainst orpenalties ld from
ro;
N 2 p° against paid by them wh account of the sun or awn so withheld
N Z payment to said party and deduct all such taxes, interest and penalties so paid by them from any sums
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0 owing by thee to said party. If .suit is filed effecting the interest of the undersigned, written
>+ notice thereof shall be given ANGI and ATTCO al the above address by the undersigned, together with
U #' a certified copy of the e
Ucomplaint or petition filed. If ANGI or ATTCO are made a party to such
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ga y proceedings, the undersigned agrees to indemnify same against any judgment rendered therein and to
reimburse ANGI and ATTCO for any costs, attorney's fees or other expenses incurred in connection
N 0 therewith.
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-I o SEVENTH: The undersigned severally agree to notify ANGI and ATICO of any change of ownership and no
b. transfer of interest shall be binding upon ANGI or ATTCO until transfer order and the recorded
instrument evidencing such transfer, or s certified copy thereof, shall be furnished to ANGI or Alice.
Transfer of interest shall be made effective 8:00 a.• on the first day of the calendar month in which
proper notice is received by AIIGI and ATTCO. ANGI and ATTCO are hereby relieved of any responsibility
for determining if and when any of the interests hereinsbove set forth shall or should revert to or
be owned by other parties as a result of the completion of discharge of money or other payments from
said interests and the signers hereof whose interests arc 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
al 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 lorth above shall,
for any reason, become effective and to furnish transfer order accordingly and that in the event such
notice shell not be received, ANGI and ATTCO shall be held harmless in the event of, and are hereby
released frog ens and all damage or loss which might arise out of any overpayment. Should adjustments
be necessary, 041 and ATTCO shall have rights (but no duty) to set oil any and alt individual or joint
liabilities the undersigned has with same, including but not limited to proceeds from this and other
lease interests owned by the undersigned.
•
EIGdfTH: 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 may hold without interest the portion of the proceeds
subject to refund unless indemnity satisfactory to ANGI has been furnished, or until ANGI'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 and Oil) or at ANGI's election, it may invoice the undersigned therefor, plus
• the legal rate of interest ANGI it or may be required to pay in coniectiai with the undersigned's
portion of the refund,
NINTH: I1 the undersigned is • working interest owner and/or operator, he or she guarantee; and
warrants that all Gas end Oil tendered hereunder has been or will be produced and delivered in
compliance with all applicable federal, stale and local laws, orders, rules cad regulations,
TENTH; This Division Order shall become valid and 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 owners have
so signed. Io 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 end gas lease covering the above-described proper tyfies), the provisions of this Division
Order shall prevail. Each undersigned owner ratifies and confirms his oil and gas tease as being in
full force and effect as of the date hereof. In consideration of the purchase of Gas and Oil hereunder.
consent is given ANGI and ATTCO and any pipeline company which same may cause to connect with the wells
and 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 shell be deemed modified so as to comply with such law or regulation.
EXHIBIT A
5O871A WELD COUNTY UNIT /C:/
OWNER NO CREDIT TO PERCENTAGE INTEREST
39457 BASIN EXPLORATION INC 2.000000 01
FOR SPINDLE PROPERTIES
1129 WELD COUNTY - 12.500000 RI
39457 BASIN EXPLORATION INC: 57.662500 W1
FOR SPINDLE PROPERTIES
4O812 APX WESTERN CORPORATION 27.837500 WI
100.000000
B 1325 REC 02277352 02/05/92
14 : 39 $0 .00 5/005
F 0831 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
920082,
cArl
AMOCO-ED NKf1R'L 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 CHANGE.
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
ATTE: 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 JX) NOT DRTArli the Exhibit from the Gas Division Order or
Gas Transfer Order if one is included.
990 REPUBLIC PLAZA • 370 SEVENTEENTH STREET • DENVER,COLORADO 80202 • (303)595-3331 • FA 29 ,80
MAILING ADDRESS. P.O. BOX 5493 • DENVER, COLORADO 80217 >,3r5Q _,
ASSOCINTED NPTML 645, INC.
January 1O, 1992
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
Barbara L. Buck
Manager, Division Order Department
BLB: blg
Enclosure
920089.
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
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