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HomeMy WebLinkAbout920101.tiff AR227753? RESOLUTION RE: APPROVE GAS DIVISION ORDER TO GERRITY OIL & GAS CORPORATION AND AUTHORIZE CHAIRMAN TO SIGN m0 WHEREAS, the Board of County Commissioners of Weld County, Colorado, o 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 - U O WHEREAS, Weld County, Colorado, has received a Gas Division Order to 0 3 Gerrity Oil & Gas Corporation, 4100 E. Mississippi Avenue, Suite 1200, Denver, a Colorado 80222, and 69- w 0 O WHEREAS, said Division Order covers land more particularly described as • follows: (Na n w Township 5 North, Range 64 West, 6th P.M. w Section 15: E?SW'-,-, Weld County, Colorado N C1 r Z WHEREAS, Weld County is entitled to a one-eighth royalty interest on H production, and N co N N WHEREAS, in order to receive said royalty interest, Weld County must � w execute said Division Order, a copy of which is attached hereto and incorporated z herein by reference, and N Z a U a WHEREAS, said Division Order has been reviewed by a member of the Weld wx County Attorney's staff and found to be in order, and N rn N O N WHEREAS, the Board deems it advisable to approve said Division Order on the • r-I parcel of land described herein. m w NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Gas Division Order to Gerrity Oil & Gas Corporation, 4100 E. Mississippi Avenue, Suite 1200, Denver, Colorado 80222, 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. 920101 I £6013 DIVISION ORDER - GERRITY OIL & GAS CORP. PAGE 2 nO o N O The above and foregoing Resolution was, on motion duly made and seconded, U adopted by the following vote on the 3rd day of February, A.D. , 1992.0 al Pi/OWL BOARD OF COUNTY COMMISSIONERS o ATTEST: I� WELD CO TY, COLORADO ox "} q Weld County Clerk to the Board Geor e Kenned , Chairman O N a BY: ' s Dep e' to. he Board - Constance L. Harbert, Pro-Tem o APPROVED Rk1 C. W. Kirby rn d o\ H] County Attor ey Gordon,. . cy, � N H J o to W. H. Webster r MLn r r 2 Nz N a O Ux x lr) N N M W 920101 OIL AND/OR GAS DIVISION ORDER To: Gerrity Oil & Gas Corporation 4100 E. Mississippi Avenue, Suite 1200 Property No: 012 Ln o Denver, Colorado 80222 Property Name: Loustalet CD• U Type: Producing o January 20, 19 92 M U Q a • 3 Each of the undersigned certifies and guarantees that he is the legal owner of, and hereby warrants title to, his respective interest as set out below in the proceeds from all the Gas w that may be produced from the We11(s) (the "Well(s)") located on the following described oland in Weld County, State of Colorado: Nx w Loustalet B 15-11, 15-14 o x E' SWt/a of Section 15, T5N, R64W W N a m U Z Effective 7:00 a.m. January 20, 1992 , and until further notice, you hereby are ,w authorized and directed, subject to all of the subsequent provisions hereof, to receive, and NoLE7, give credit as follows for such production: M W in Credit to: Division of Interest N < and Type o Weld County, Colorado, by and through the 41 a .1 Board of County Commissioners 0.0017043 RI N CI John A. Doninger 0.0019000 RI N w 0.0061908 ORRI David Clark Littler 0.0309541 RI 0.0086671 ORRI Francis M. Loustalet 0.0433358 RI 0.0024763 ORRI Warren H. Loustalet 0.0123816 RI Gary H. Loustalet 0.0020636 RI 0.0004127 ORRI Ardith Renee Loustalet 0.0020637 RI 0.0004127 ORRI Wade Andre Loustalet 0.0020636 RI Robert A. Frenzel 0.0414357 RI Gary H. Loustalet and Barbara E. Loustalet 0.0004127 ORRI Sovereign Oil Company 0.0154771 ORRI Adam C. Buna 0.0006191 ORRI Terry D. Meyer and JoAnne D. Meyer 0.0074290 ORRI 1 901'.21. Frederick H. Upham 0.0018572 ORRI Kenneth F. Appis 0.0018572 ORRI � o Brent J. Morse 0.0037145 ORRI o 0 Nebil G. Zarif 0.0222869 ORRI 0 3 TCW DR III Royalty Partnership 0.0474171 ORRI 0x Spartan Energy Company 0.7428672 WI U N o, 'a 1. The word Gas, as used herein, is to include all gaseous substances, including oil well o a gas (casinghead gas). N L: CT, U r- z 2. Payments to the undersigned shall be based upon the price received by you from the purchaser. The undersigned hereby expressly ratify and confirm the division of interest as v o herein set forth and each agrees to indemnify and save you harmless against any and all liability for all loss, cost, damage and expense which you may suffer or incur on account of receiving and paying to the undersigned the proceeds from production in accordance with the division of interest set forth herein and the other provisions hereof. N N U z 3. You are hereby authorized to deduct from the proceeds of production to be distributed hereunder (a) the amount of any taxes attributable to such proceeds required ,f, by law to be withheld or paid by you, or if not previously withheld, by the purchaser of M N production, (b) the actual cost of any gathering, pipeline, trucking or other transportation paid by you, and (c) the actual cost of compressing, dehydrating or otherwise treating the row production if same is a condition of the delivery thereof to the purchaser or is deemed by you to be advisable to make the production merchantable. 4. Settlements and payments shall be made on or before the 25th day of each calendar month for such proceeds received by you during the preceding month by check mailed to the undersigned at the addresses above given for the amount of such proceeds due the undersigned, less any taxes and expenses authorized to be deducted pursuant to paragraph 3 hereof. However, if the average payment to any party hereunder shall be less than twenty five dollars, you may defer payment, without interest, and make payments to such party annually or at such lesser intervals as may be appropriate. 5. In any case of any adverse claim of title as to any interest or interests covered hereby, each of the undersigned affected authorizes you to defer payment, without interest on the amount so deferred, until such adverse claim is fully determined. 6. You are hereby relieved of any responsibility for determining when any interest herein set forth has been increased, decreased, terminated or transferred, and the undersigned agree to give written notice and satisfactory proof of any change and to hold you harmless from all loss or expense that may result from any incorrect payment in the absence of such written notice. All such changes shall be made effective 7:00 a.m. on the first day of the calendar month following the month in which notice is received. 2 920th 7. In the event all or any portion of the land described herein or any formation underlying such land is included in one or more units now or hereafter formed or revised, it is agreed that this division order shall be subject to such unit or units so formed or revised and that settlements shall be made in accordance with the production allocated to said tract or formation without requiring the execution of additional division orders. 8. Each of the undersigned who is a working interest owner guarantees and warrants that all production covered hereby has been and shall be produced in accordance with all applicable federal, state and local laws, orders, rules and regulations. 9. This division order shall become valid and binding on each and every owner as soon as signed by such owner regardless of whether all of the above owners have signed. (Attest if Corporation, Signature of Owners Social Security otherwise two witnesses) or Taxpayer Number ATTES : 84-6000813 O B ORGE NNE Y, CHAT WELD COUNTY BOARD OF BY der COMMISSIONERS 02/03/92 DEPUTY LE BOARD � P.O. BOX 758 (303) 356-4000 Address: GREELEY, CO 80632 Telephone:ExT. 4225 o O o U to O o 0 0 C yr w Q 0 U w N T o N T O H O H � W N [ O :Jl w r, in w r- z Zi N � 0 U a w � LC) 'O N C7 N HI HI to I4 3 GERRITY 0 I L P, G AS CORPORATION January 28, 1992 Weld County, Colorado , P.O. Box 1948 Greeley, Colorado 80632 ATTN: Mr. Bruce T. Barker Re: Division Of Interest Loustalet B 15-11, 15-14 wells Weld County, Colorado Dear Mr. Barker: Pursuant to your request, enclosed please find the Division of Interest pages from the Supplemental Division Order Title Opinion dated January 10, 1992, covering the following lands: Township 5 North, Range 64 West, 6th P.M. Section 15: E' SW'/a Please have the Division Orders executed and returned to us at your earliest convenience. We can not disburse proceeds without a signed Division Order. Should you have any questions or concerns, please feel free to call me. Thank you. Sincerely. GERRITY OIL & GAS CORPORATION ( / / /t Robin D. Clark Land Assistant enclosure /rc 4 100 Gast Mississippi Avenue Suite 1200 Denver,Colorado 80222 �, r ✓-'- Fax 303 757.1 L97 920101 L :n4:) , Telephone 303 757.1110 Tfus funian zs£ursl as aze aceozsu�st� pntsr rt has begirt renderett fo*the sate aid�exdva s sec f Gernt OiL 1 Oastcr nation and ms#her Gerrity nor tts attemeys assume any respousibftty or liab3hty to any thr.rd lta nr the carrectnessr twstatement annments or ontent hereof:.; OWNERSHIP SURFACE: As to Tract 3 Weld County - All As to Tract 4 John A. Doninger - All As to Tract 5 Mary V. Frenzel - All As to Tract 6 Robert A. Frenzel - All MINERALS , OIL AND GAS ONLY: PENDLETON & SABIAN, P. C. ®1,0i Gerrity Oil & Gas Corporation January 10 , 1992 Page 11 As to Tract 3 Weld County - All As to Tract 4 John A. Doninger - 1/4 David Clark Littler - 1/4 Francis M. Loustalet - 7/20 Warren H. Loustalet - 1/10 Gary H. Loustalet - 1/60 Ardith Renee Loustalet - 1/60 Wade Andre Loustalet - 1/60 As to Tract 5 Robert A. Frenzel - 1/4 David Clark Littler - 1/4 Francis M. Loustalet - 7/20 Warren H. Loustalet - 1/10 Gary H. Loustalet - 1/60 Ardith Renee Loustalet - 1/60 Wade Andre Loustalet - 1/60 As to Tract 6 Robert A. Frenzel - 1/4 David Clark Littler - 1/4 Francis M. Loustalet - 7/20 Warren H. Loustalet - 1/10 Gary H. Loustalet - 1/60 Ardith Renee Loustalet - 1/60 Wade Andre Loustalet - 1/60 LANDOWNER'S ROYALTY PAYABLE TO: As to Tract 3 Weld County - 18% As to Tract 4 John A. Doninger - 1/4 of 17.5%, or - 4 . 375% David Clark Littler - 1/4 of 12.5%, or - 3 . 125% Francis M. Loustalet - 7/20 of 12.5%, or - 4 . 375% Warren H. Loustalet - 1/10 of 12.5%, or - 1. 250% Gary H. Loustalet - 1/60 of 12.5%, or - 0. 20833% Ardith Renee Loustalet - 1/60 of 12. 5%, or - 0. 20833% Wade Andre Loustalet - 1/60 of 12.5%, or - 0 . 20834% PENDLETON 8 SABIAN, P. C. _))7,01.?1, Gerrity Oil & Gas Corporation January 10 , 1992 Page 12 As to Tract 5 Robert A. Frenzel - 1/4 of 17 .5%, or - 4 . 375% David Clark Littler - 1/4 of 12.5%, or - 3 .125% Francis M. Loustalet - 7/20 of 12 .5%, or - 4 .375% Warren H. Loustalet - 1/10 of 12.5%, or - 1. 250% Gary H. Loustalet - 1/60 of 12 . 5%, or - 0 . 20833% Ardith Renee Loustalet - 1/60 of 12.5%, or - 0 . 20834% Wade Andre Loustalet - 1/60 of 12 . 5% , or - 0. 20833% As to Tract 6 Robert A. Frenzel - 1/4 of 17 .5%, or - 4. 375% David Clark Littler - 1/4 of 12 . 5% , or - 3 . 125% Francis M. Loustalet - 7/20 of 12.5%, or - 4. 375% Warren H: Loustalet - 1/10 of 12 .5%, or - 1. 250% Gary H. Loustalet - 1/60 of 12.5%, or - 0.20833% Ardith Renee Loustalet - 1/60 of 12 . 5%, or - 0. 20834% Wade Andre Loustalet - 1/60 of 12.5%, or - 0 . 20833% DIVISION OF INTERESTS FOR DIVISION ORDER PURPOSES (Loustalet B 15-11 and B 15-14 Wells) Weld County, Colorado, by and through the Board of County Commissioners - .94685% of 18% or, 0 .0017043 LOR Tract 3 John A. Doninger - 4 . 34289% of 4. 375% or, 0.0019000 LOR Tract 4 David Clark Littler - 99 . 05315% of 3 .125% or, 0 .0309541 LOR Tracts 4 , 5 , 6 Francis M. Loustalet - 99 . 05315% of 4 . 375% or, 0. 0433358 LOR Tracts 4 , 5 , 6 Warren H. Loustalet - 99.05315% of 1. 250% or, 0.0123816 LOR Tracts 4, 5 , 6 Gary H. Loustalet c t - 99 .05315% of t � 9 �+ 0 .0020636 LOR t . 20833% or, Tracts 4 , 5 , 6 9201_21 PENDLETON 8 SABIAN, P. C. Gerrity Oil & Gas Corporation January 10 , 1992 Page 13 Ardith Renee Loustalet - 99 . 05315% of . 20834% or, 0 .0020637 LOR Tracts 4, 5 , 6 Wade Andre Loustalet - 99 .05315% of . 20833% or, 0.0020636 LOR Tracts 4 , 5, 6 Robert A. Frenzel - 94 . 71026% of 4. 375% or, 0 .0414357 LOR Tracts 5, 6 Francis M. Loustalet - 99. 05315% of .875% or, 0 .0086671 ORR Tracts 4 , 5 , 6 David Clark Littler - 99 .05315% of .625% or, 0.0061908 ORR Tracts 4 , 5, 6 Warren H. Loustalet - 99 . 05315% of . 250% or, 0.0024763 ORR Tracts 4, 5 , 6 Gary H. Loustalet and Barbara E. Loustalet - 99. 05315% of .041667% or, 0.0004127 ORR Tracts 4 , 5 , 6 Ardith Renee Loustalet - 99 .05315% of . 041667% or, 0.0004127 ORR Tracts 4 , 5 , 6 Wade Andre Loustalet - 99. 05315% of .041666% or, 0.0004127 ORR Tracts 4 , 5 , 6 Sovereign Oil Company - 99 .05315% of 1.5625% or, 0.0154771 ORR Tracts 4 , 5 , 6 Adam C. Buna - 99. 05315% of .0625% or, 0.0006191 ORR Tracts 4 , 5 , 6 Terry D. Meyer and JoAnne D. Meyer - 99 .05315% of . 75% or, 0.0074290 ORR Tracts 4 , 5 , 6 PENDLETON 8 SABIAN, P. C. .9;7,01.?, �w Gerrity Oil & Gas Corporation January 10 , 1992 Page 14 Frederick H. Upham - 99 .05315% of .1875% or, 0.0018572 ORR Tracts 4, 5 , 6 Kenneth F. Appis - 99 . 05315% of .1875% or, 0.0018572 ORR Tracts 4, 5, 6 Brent J. Morse - 99. 05315% of . 375% or, 0 .0037145 ORR Tracts 4 , 5 , 6 Nebil G. Zarif - 99 .05315% of 2. 25% or, 0 .0222869 ORR Tracts 4 , 5 , 6 TCW DR III Royalty Partnership - 6% of 79.02843% or, 0 .0474171 ORR" Spartan Energy Company - 79 .02843% minus 4. 74171% or, 0 .7428672 WI TOTAL 1.0000000 e Division or Transfer Order Instruction Sheet Dear Interest Owner: Please read carefully the following instructions before signing your Division and/or Transfer Order. If your name is correctly shown and if you are claiming the interest credited to you and the interest is correctly stated, please execute the form in accordance with applicable directions as follows: This form should not be altered in any way unless accompanied by documentary evidence justifying the change. Any cor- rections of spelling of your name should be made in ink and your initials shown above the correction. SIGNATURE: Sign name as shown on the form or as corrected by you in the space provided. Have your signature witnessed by two adults signing in the spaces provided for witnesses. If SIGNING FOR A CORPORATION, a title of signatory party must be shown, corporate seal affixed and attested. SIGNATURE BY SECOND PARTY: If the form is signed by agents, attorneys-in-fact, guardians, or any party other than the named interest owner, we must have evidence of the rights vested in the signatory party. Please have the signature witnessed by two adults. PARTNERSHIP: All members of the partnership should sign. If only one member signs, evidence of his right to do so must be furnished. MAILING ADDRESS: If the form shows incorrect mailing address, indicate the address to which your checks are to be mailed and include your zip code number. Print or type, do not abbreviate. TAXPAYER'S IDENTIFICATION OR SOCIAL SECURITY NUMBER: Federal law requires that you furnish an identifying number. Please show your number in the space provided. DIVISION ORDER NUMBER: At the top of the form you will find the number(S) assigned to this property. This will enable you to identify your payments and should be mentioned when writing this company regarding same. CHANGE OF ADDRESS: Advise us promptly of any change in address. We cannot accept such instructions unless furnished in writing over your signature. Please reference your owner number. 1 27,01.91. CHANGE OF OWNERSHIP: Any change affecting title of the interest under which you are being paid must be furnished to us in legal form with a letter of advisement as to the effect of the change. CHANGE OF NAME: Advise us promptly of any change in name. We cannot accept such instructions unless furnished in writing over your signature with your social security or tax identification number and accompanied by a certified copy of the document effecting the change. Please return one (1) fully executed instrument to us at the earliest possible time after receipt by you. This will ensure prompt payment. Return executed copy to: Gerrity Oil & Gas Corporation 3200 Cherry Creek South Dr. , Suite 200 Denver, Colorado 80209 g:\caper\daves\dedivord.ins 2 r Ar OFFICE OF COUNTY ATTORNEY ::1 411‘14*C PHONE(303)356-4000 EXT.4391 P.O.BOX 1632 GREELEY,COLORADO 80632 O January 23, 1992 • COLORADO Robin D. Clark, Land Assistant Gerrity Oil and Gas Corporation 4100 E . Mississippi Avenue, Suite 1200 Denver, CO 80222 RE: Division Order; Loustalet B15-11, 15-14 , Weld County, Colorado Dear Ms . Clark: Enclosed herein please find a copy of the Division Order which you sent to Weld County, Colorado, for the Loustalet B15-11, 15-14, Wells in the East 1/2 of the Southwest 1/4 of Section 15, Township 5 North, Range 64 West. According to the Division Order, the royalty interest for Weld County, Colorado, for this tract is . 0017043 . This office normally checks the royalty interest to make sure that it is correct before the Division Order is approved by the Board of County Commissioners . At this time, I am somewhat confused as to how the royalty interest in this Division Order was calculated. Therefore, I respectfully request that you provide me with information which explains the calculation thereof . Thank you for your anticipated, assistance in this matter. Please call me at ( 303) 356-4000 , Ext. 4391 , if we may discuss this matter by telephone . Sincerely, i � u v�_____ truce T. Barker Assistant Weld County Attorney BTB: rm f_VO._-J1 G E R R I T Y 0 I L €7 G A S ,, CORPORATION January 20, 1992 I .r . Weld County Board of County Commissioners 915 10th Street Greeley, Colorado 80631 Re: Division Order Loustalet B 15-11 15-14 Weld County, Colorado Gentlemen: Enclosed please find two(2) original Division Orders for the above referenced wells. Please sign where indicated on Page 3, provide your address, telephone number and Social Security number, and return one executed copy to us at your earliest convenience. The additional copy is for your files. We can not disburse proceeds from this well until a signed Division Order has been received. Should you have any questions or concerns, please feel free to call me. Thank you. Sincerely, GERRITY OIL & GAS CORPORATION xUL1. Robin D. Clark Land Assistant enclosure /re 4100 East Mississippi Avenue Suite 1200 Denver,Colorado 80222 Fax 303757.1197 9, , fI ` -t Telephone 303757.1110 ATM° A55OCRTE D TRANSPORT & TRADING COMPANY --- - _..._. / e.Ac I .) 1992 l ►r Rr u'.e T. Barker f D—`'__: C 4s I ; L tart Weld ounty Attorney t' `r::! 1-%' r AT7 O-�RNEY'r �. P.O. Box 1948 ~---`'-- Greeley . Colorado B()632 Re: r. oustalel B15-11 . i5•-14 1. Ease 507'22 Weld County , Colorado Dear Mr. Barker : in reply to your let ter dated February 27, 1992, 1 nave enclosed appli;..ble pages, from the Division Order ;'itle Opinion covering the •• e l erer:ced i. l ; . These pages snow how the interest for Weld County was . ;alc-ulated by the ₹.it.le attorney . l hope the r?nc1o5ed provides the information you need but, iP have further questions, please do not hesitate to s_ontar_t me. Very truly yours, rlSS1)C J A ED TRANSPORT & t RS D i,NG COMPANY 3A€- J 42, y Hobble Ljc?Mut�� D v. 51 n Or der Analyst U.): blg Enclosure 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 • PENDLETON 8 SABIAN, P. C. ATTORNEYS AND COUNSELORS AT LAW JEFFREY R.FISKE SEVENTEENTH AND GRANT BUILDING TELEPHONE:(303)839.1204 SUITE 1000 TELECOPIER:(303)831-0786 303 EAST SEVENTEENTH AVENUE TWX: 910.931-0407 DENVER, COLORADO 80203 January 10 , 1992 Gerrity Oil & Gas Corporation 4100 East Mississippi, Suite 1200 Denver, Colorado 80222 Attn: David W. Siple Trust Company of the West c/o Thompson & Knight 3300 First City Center 1700 Pacific Avenue Dallas, Texas 75201 Attn: Karen E. Lynch, Esq. Re: Supplemental Division Order Title Opinion, Loustalet B 15-11 and 15-14 Wells, E1/2SW1/4 of Section 15 , Township 5 North, Range 64 West, 6th P.M. , Weld County, Colorado Ladies and Gentlemen: LANDS COVERED BY OPINION Township 5 North, Rance 64 West, 6th P.M. Section 15: E1/2SW1/4 Weld County, Colorado TITLE DATA EXAMINED 1. A copy of a Partial Division Order Title Opinion dated October 16, 1991 , prepared by Pendleton & Sabian, P.C. , covering the lands described above and the SE1/4 of the referenced Section 15 (our "Prior Opinion" ) . Based upon the title data described therein, our Prior Opinion covers the lands under search from the inception of title to August 6 , 1991. 2 . A letter dated January 3 , 1992, from Betty A. Booth, Landman, Gerrity Oil & Gas Corporation, to this title examiner concerning the acreage allocation for Tract 3 described below. Attached to Ms. Booth's letter is a map of the subject Section 15 and other lands in Township 5 North, Range 64 West, as well as a copy of a survey of the lands under search dated May 14, 1991, and prepared by Billy G. Holloway. The Holloway survey was previously examined by us in connection with the preparation of our Prior Opinion. Gerrity Oil & Gas Corporation January 10 , 1992 Page 9 POOLING CLAUSE: Yes, not to exceed 80 acres for oil and 640 acres for gas . ENTIRETIES CLAUSE: No. SPECIAL PROVISIONS: The lease contains an Exhibit "A" with special provisions for surface operations on the lands covered by the lease. Lease H FORM: The lease is a special form prepared for Weld County. DATE: May 9 , 1984 . RECORDED: June 4 , 1984 , under Reception No. 1969212 of the records of Weld County, Colorado. LESSOR: Weld County, Colorado, acting by and through the Board of County Commissioners. LESSEE: Golden Buckeye Petroleum Corporation. LAND DESCRIPTION: Township 5 North, Range 64 West, 6th P.M. A tract of land in the SW1/4 of Section 15 and N1/2 of Section 22, 80 feet in width, being 40 feet on each side of the following-described centerline of State Highway No. 2: Beginning at the NW corner of Section 22, thence North 89°51' East along the North line of Section 22 2 , 142. 8 feet, thence Southeasterly on a 3 ° curve to the right, whose radius is 1 , 910 feet, a distance of 1 , 046 . 7 feet, thence South 58°43' East 1,914 . 5 feet to a point in the Ni of Section 22 from whence the NE corner of Section 22 bears North 22 °44 '30" East a distance of 1, 362 .9 feet. Containing 7 . 07 acres , more or less. TERM: Three years and as long thereafter as oil or gas is produced. ROYALTY: 18% for oil and gas. PENDLETON 8 SABIAN, P. C. Gerrity Oil & Gas Corporation January 10 , 1992 Page 10 SHUT-IN GAS WELL ROYALTY: $100 .00 per well per year. DELAY RENTAL: $1. 00 per net mineral acre per year. DEPOSITORY: Board of County Commissioners, Weld County Centennial Center, 915 Tenth Street, Greeley, Colorado 80631. LESSER INTEREST CLAUSE: Yes . POOLING CLAUSE: Yes. ENTIRETIES CLAUSE: No. SPECIAL PROVISIONS: The lease contains several special provisions not ordinarily found in commercial lease forms. OWNERSHIP SURFACE: As to Tract 3 Weld County - All As to Tract 4 John A. Doninger - All As to Tract 5 Mary V. Frenzel - All As to Tract 6 Robert A. Frenzel - All MINERALS , OIL AND GAS ONLY: PENDLETON £8 SABIAN, P. C. Gerrity Oil & Gas Corporation January 10 , 1992 Page 11 As to Tract 3 Weld County - All As to Tract 4 John A. Doninger - 1/4 David Clark Littler - 1/4 Francis M. Loustalet - 7/20 Warren H. Loustalet - 1/10 Gary H. Loustalet - 1/60 Ardith Renee Loustalet - 1/60 Wade Andre Loustalet - 1/60 As to Tract 5 Robert A. Frenzel - 1/4 David Clark Littler - 1/4 Francis M. Loustalet - 7/20 Warren H. Loustalet - 1/10 Gary H. Loustalet - 1/60 Ardith Renee Loustalet - 1/60 Wade Andre Loustalet - 1/60 As to Tract 6 Robert A. Frenzel - 1/4 David Clark Littler - 1/4 Francis M. Loustalet - 7/20 Warren H. Loustalet - 1/10 Gary H. Loustalet - 1/60 Ardith Renee Loustalet - 1/60 Wade Andre Loustalet - 1/60 LANDOWNER'S ROYALTY PAYABLE TO: As to Tract 3 Weld County - 18% As to Tract 4 John A. Doninger - 1/4 of 17 . 5%, or - 4. 375% David Clark Littler - 1/4 of 12.5%, or - 3 .125% Francis M. Loustalet - 7/20 of 12.5%, or - 4 . 375% Warren H. Loustalet - 1/10 of 12.5%, or - 1. 250% Gary H. Loustalet - 1/60 of 12.5%, or - 0. 20833% Ardith Renee Loustalet - 1/60 of 12.5%, or - 0. 20833% Wade Andre Loustalet - 1/60 of 12.5%, or - 0. 20834% PENDLETON 8 SABIAN, P. C. Gerrity Oil & Gas Corporation January 10 , 1992 Page 12 As to Tract 5 Robert A. Frenzel - 1/4 of 17 .5%, or - 4 . 375% David Clark Littler - 1/4 of 12. 5% , or - 3 . 125% Francis M. Loustalet - 7/20 of 12.5%, or - 4 . 375% Warren H. Loustalet - 1/10 of 12.5%, or - 1. 250% Gary H. Loustalet - 1/60 of 12 .5% , or - 0 . 20833% Ardith Renee Loustalet - 1/60 of 12. 5%, or - 0 . 20834% Wade Andre Loustalet - 1/60 of 12 .5% , or - 0. 20833% As to Tract 6 Robert A. Frenzel - 1/4 of 17 .5%, or - 4 . 375% David Clark Littler - 1/4 of 12 . 5%, or - 3 . 125% Francis M. Loustalet - 7/20 of 12 .5%, or - 4 . 375% Warren H: Loustalet - 1/10 of 12.5%, or - 1. 250% Gary H. Loustalet - 1/60 of 12 .5%, or - 0. 20833% Ardith Renee Loustalet - 1/60 of 12. 5%, or - 0 . 20834% Wade Andre Loustalet - 1/60 of 12.5%, or - 0. 20833% DIVISION OF INTERESTS FOR DIVISION ORDER PURPOSES (Loustalet B 15-11 and B 15-14 Wells) Weld County, Colorado, by and 7_ S`f of County through Commissioners ers - .94685% of 18% or, 0.0017043 LOR Tract 3 u-,3 v ''-c,(10 John A. Doninger - 4.34289% of 4u 4. 375% or, 0.0019000 LOR Tract 4 1A-9/e), - 4c5,,10 David Clark Littler X 99.05315% of 3 . 125% or, 0 . 0309541 LOR a Tracts 4 , 5 , 6 - � hilci Francis M. Loustalet X - 99 .05315% of 4 . 375% or, 0 .0433358 LOR Tracts 4 , 5 , 6 G Warren H. Loustalet / - 99 . 05315% of [ 431 1. 250% or, 0.0123816 LOR Tracts 4 , 5 , 6 ,„, Gary H. Loustaletctit - 99 . 05315% of . 20833% or, 0. 0020636 LOR J o �acbaa �, &. I, -3r t Tracts 4 , 5 , 6 PENDLETON 8 SABIAN, P. C. SCHEDULE I Assume the SW1/4 is 2653 . 40' across the south line because the survey shows 1326 .70 across E1/2SW1/4 and doubling that (which assumes W1/2SW1/4=E1/2SW1/4 ) gives you 2653 .40. Note, the W1/2SE1/4 and the E1/2SE1/4 equal either other according to the survey. Next subtract the length of Tract 3 across the south line of the section ( 2142 . 80' ) from 2653 . 40 and the result is the highway (Tract 3 ) goes to a point 510. 60 feet from the center of the section. Further, if you take the full length of the highway tract ( 2142.80' ) and subtract the W1/2SW1/4 (1326.70' ) , you're left with 816. 10' extending into the E1/2SW1/4 . And, 816 . 10' (extent of highway into E1/2SW1/4 ) plus 510 .60' (distance from center of the section) equals 1326 .70' . 40' wide x 816 .10' long equals 32,644 square feet; divided by 43 ,560 square feet equals .7494 acres. TRACT ACREAGE 3 = .75 ( 0.94685%) 4 = 3 .44 ( 4 . 34289%) 5 = 14 .55 (18. 36889%) 6 = 60.47 (76 .34137%) 79 . 21 100.00000% PENDLETON & SABIAN. P. C. r . tif art ��stti -C.:4 OFFICE OF COUNTY ATTORNEY PHONE(303)356.4000 EXT.4391 I ' P.O. BOX 1948 GREELEY,COLORADO 80632 WilDe COLORADO February 27 , 1992 Associated Transport & Trading Co. P. O. Box 5493 Denver, CO 80217 Attn: Division Order Department RE: Oil Division Order for Loustalet B15-11 and 15-14 Wells Dear Sirs : Enclosed herein please find a copy of the Oil Division Order for the Loustalet B15-11 and 15-14 wells which was received by Weld County, Colorado, on February 26 , 1992 . This Division Order is for Lease No. 50722, having a property description of East Half ( 1/2 ) of the Southwest Quarter of Section 15, Township 5 North, Range 64 West of the 6th P.M. , Weld County, Colorado. Also enclosed is a copy of the Oil and Gas Lease. As you can see, the total number of acres owned by Weld County in the Lease is 7 . 07 acres . It is my understanding that only 1 of these acres lies within the West Half ( 1/2 ) of the Southwest Quarter. The remaining 6 . 07 acres lie within the East Half of the Southwest Quarter. Using the 6 . 07 acres as the County' s interest, I am somewhat uncertain as to how your company arrived at the royalty interest percentage of . 170430 . I therefore respectfully request that you provide me with this information and calculation. I may be reached at ( 303) 356-4000, extension 4391, or by mail at P . O . Box 1948, Greeley, CO 80632 . Thank you for your attention to this matter. S ' rely, jarke Assistant Weld County Attorney BTB:rm Enc . 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