The URL can be used to link to this page

Browse Search

Home My WebLink About920254.tiff 15-DPT FORM PRESCRIBED BY THE PROPERTY TAX ADMINISTRATOR FORM 920 1/66-6/90 PETITION FOR ABATEMENT OR REFUND OF TAXES-c. F HOECKEL CO, DENVER 36312 Petitioners: Use this side only. Englewood , Colorado, February , 19 92 City or Town To The Honorable Board of County Commissioners of Weld County Gentlemen: The petition of PETROCARBON ENERGY CORPORATION whose mailing address is• 3333 South Bannock, Suite 450, Englewood Colorado 80110 City or Town State Zip Code SCHEDULE NUMBER DESCRIPTION OF PROPERTY AS LISTED ON TAX ROLL Bashor #8-8 0006767 4976-B Leashold Interest Section 8: SE/4NW/4 Township 10 North, Range 61 West respectfully requests that the taxes assessed against the above property for the years A. D. 19...87..., 19_-8g_, are erroneous, illegal, or due to error in valuation for the following reasons: (Completely describe the circumstances surrounding the incorrect value or tax.) Colorado Law dictates that taxes be paid on sales value at the wellhead. Weld County has based its valuation on sales price at a downstream point not on wellhead sales prices. Weld County's practice and policy in this determination is incorrect. 19 87 19 88 Value Tax Value Tax Orig. 85731 1212.70 52833 617.76 Abate. 10337 1212..7.0 869.7 617.76 Bal. -0- The taxes (have) (have not) been paid. Wherefore your petitioner prays that the taxes may be abated or refunded in the sum of $ I declare, under penalty of perjury in the second degree that this petition, together with any accompanying exhibits or statements, has been examined by me and to the best of my knowledge, information and belief is true, correct and complete. PETROCBON ENERGY CORPORATION BY: A By ➢arry..A...-Eerguson.,-..President Agent Address 3333 South Bannock, Suite 450, Englewood, Co 8011-0/}y5ncl,).1 RESOLUTION OF COUNTY COMMISSIONERS WHEREAS, The County Commissioners of Weld County, State of Colorado, at a duly and lawfully called regular meeting held on the 16th.---.- ---..day of March A.D. 19 92 , at which meeting there were present the following members Commissioners Constance L. Harb.ext.,...C..W..-Rirby,..Gardon-.-E�--Lacy-and- W.H. Webster, with Chairman George._Kennedy-,--.absent notice of such meeting and an opportunity to be present having been given to the taxpayer and the Assessor of said County and said Assessor War ren-Lasall and taxpayer Darry Ferguson being present; and (name) (name) WHEREAS, The said County Commissioners have carefully considered the within applica- tion, and are fully advised in relation thereto, NOW BE IT RESOLVED, That the Board concurs with the recommendation of (concurs or does not concur) the assessor and the petition be denied._._ , and an abatement/refund_--not--be..a1-lowed (1905pictLetweniedi 1,212.70 (be allowed or not be allowed) on an assessed valuation of k 1988)..8,697.._-for $ 61-7-;36 -total tax for the year(s) 119 877 and 1988 Chairman of Board of County Commissioners. STATE OF COLORADO, ) Pro tern }SS. Weld County of I Donald D. Warden t If lindia(taFdaXdfiueBI Clerk of the Board of County Commissioners in and for the County of Weld State of Colorado, do hereby certify that the above and foregoing order is truly copied from the records of the proceedings of the Board of County Commissioners for said Weld County, now in my office. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said County, at Greeley.,...Colorado, this 16th da of x. ... .. . A. D. 19..92....meinCounts Clerk. B ail / G 'i- y ---E--- k.4' tti '::ref $eputy. ACTION OF THE PROPERTY TAX ADMINISTRATOR Denver, Colorado, , 19 The action of the Board of County Commissioners, relative to the within petition, is hereby ❑ approved; ❑ approved in part $ ❑ denied for the following reason(s) ATTEST: Secretary. Property Tax Administrator. h 970254 i254 o I- 0 0 — o CC I•- Q tii ^O oc _ v1 JO ro ^. N El = WI cc O J F ¢ ,C H 0- w0 a it T .�- L � o H t= 00 to O L 't O 02Y "0 4.' 7 a W co W N 3 9 $ '� o I— Z = w In O C'' pq 41 '� c O i; 0 I— I-- Z T „ W p m y y cw CO64 ft ) a v > v4 .a d om W v p'N e c d o ° p Z 23 C'' OO1- co Ca $ E a'� A � o u w c�U ¢ 0O J N o u « •_g L y„, J > p 3 .0 U 4 O _ w o o ¢ o y a •- e 8 a a x f- >- . CC a- W a) c o .cc cc al I-- as e3 ,g9 'i U° � i 0 H a i .2 L 1 Z M W Z O m B y • O tC Q Q N > O Z 'r p c F. v IC u d O A 'o ,2 co s J F- I- w . �a C r: 7 2 •_ 7 G - De u F z 3 a o v) zx cc in - w o ill PE. 'c2 ^e a to o z w E o y 5t ce w Q I- Q wi°, E 0.'„ '.�^+ Vpi r i O 7 is CL C t: d W o n r = \ ,c y m C ,� .�+ C I G c :a+ d V N•moo a.w�+ c 0-, H I_ F .c .O a � �+ y 0 4) \\l a �r IOi U a rn a' ❑ ❑ ' ,-� Q ,� c� 3 in �, C7 ¢ c E .5 4 ct 1987 CORRECTED REAL ESTATE 3 4976-8 LEASEHOLD INT SE4NF 8 10 61 (DASHOR *8-8) PETROCARDON .ERGY CORP 0 0203287 TOTAL TAX 7,923. 12 TAX PAID 6,710.42 100680 100680 78.696 BALANCE DUE 1 '212.70 029108000004 02 0 0203287 1204 PETRUCARBUN ENERGY CORP 10795 W BELLEVIEW AVE LITTLETON CO 80217 0 0203207 1204 029108000004 02 WELD COUNTY 17.208 1 ,732.50 SCHOOL DIST REI2 50.780 5. 112.53 PAWNEE FIRE 4.390 441 .99 AIMS JUNIOR CUL 4.542 457.29 WELD LIBRARY 1 .336 134.51 WEST GREELEY SOIL .440 44.30 IF LOAN COMPANY IS RESPONSIBLE FOR THIS TAX. RETAIN THIS DILL FOR YOUR FILES. 78.696 7.923.12 •- J 1980 CORRECTED REAL ESTATE 10 ♦976-b LEASEHOLD INT SE4NE" 0 10 61 0 0203287 IDASHOR 08-8) PETROCAROUN JUICY CORP TOTAL TAX 3,752.56 TAX PAID 3) 135610 46230 46230 81 .178 617.76 BALANCE DUE 029108000004 02 0 0203287 1204 PETROCARDON ENERGY CORPORATION 3333 CANNOCK ST. ) SUITE 450 ENGLEWOOD CO 80110 0 0203287 029108000004 02 1204 WELD COUNTY 19.268 890.76 SCHOOL DIST RE12 50.410 2,330.45 PAWNEE FIRE 4.420 204.34 AIMS JUNIOR COL 5. 150 238.08 WELD LIBRARY 1.500 69.35 WEST GREELEY SOIL .430 19.88 ITLOAN COMPANY IS P AX, RETAINTHISDILLFORI OLE FOR THIS YOUR FILES. 81 .178 3)752.86 SPECIAL NOTICE OF VALUATION THIS IS NOT A TAX BILL Weld County Assessor 915 10 Street Office Hours: 8: 30 AM to 4:30 PM Greeley, Colorado 80631 Telephone Number: (303) 356-4000 Owner's Name and Address: Tax Year: 1988 Petrocarbon Energy Parcel Number: Corporation 029108000004 02 3333 So. Bannock Street, Tax Area Code: 1204 Suite 450 Notice Date: 10/15/1991 Denver, Co 80202 Property Address/Location: Legal or Property Description: 8 10 61 Bashor 8-8 Property Prior Current Increase/ Classification Actual Value Actual Value Decrease Leasehold 44136 52833 GIZcK ( I.ss ..z3) TOTAL 44136 52833 8697 The assessed Value of your property will be entered on the tax warrant because: Your property increased in value for the tax year of 1988 . Your property was valued as it existed on January 1 of the year indicated. The tax notice you receive will be based on this value. An assessment percentage will be applied to the actual value of your property before property taxes are calculated. The assessment percentage for oil and gas leaseholds is 87 and 1/2 % of the selling price of the oil and gas sold therefrom during the preceding calendar year with certain limited statutory exclusions 39-7.103, C.R.S. Generally, all other property, including vacant land and personal property, is assessed at 29%, 39-1-104 (1) and (1. 5) (a) , C.R.S. A change in the projected residential assessment percentage is NOT grounds for protest or abatement of taxes, 39-5-121 (1) , C.R.S. YOU HAVE THE RIGHT TO PROTEST YOUR PROPERTY VALUE. OWNERS OF REAL PROPERTY MAY ALSO PROTEST THE PROPERTY CLASSIFICATION. To preserve this right, you must protest to the Assessor either by mail or in person within 30 days of the data of this notice. 4 M SPECIAL NOTICE OF VALUATION THIS IS NOT A TAX BILL Weld County Assessor 915 10 Street Office Hours: 8: 30 AM to 4:30 PM Greeley, Colorado 80631 Telephone Number: (303) 356-4000 Owner's Name and Address: Tax Year: Misahar Investments, Inc. 1987 475 17th Street, Suite 1220 Parcel Number:Denver, Co 80202 029108000004 02 Tax Area Code: 1204 Notice Date: 4/30/1991 Property Address/Location: Legal or Property Description: 8 10 61 Bashor 8-8 Property Prior Classification Current Increase/ Actual Value Actual Value Decrease Leasehold 75394 85731 TOTAL 75394 85731 10337 4- The assessed value of your property will be entered on the tax warrant because: Your property increased in value for the tax year of 1987. Your property was valued as it existed on January 1 of the year indicated. The tax notice you receive will be based on this value. An assessment percentage will be applied to the actual value of your property before property taxes are calculated. The assessment percentage for oil and gas leaseholds is 87 and 1/2 % of the selling price of the oil and gas sold therefrom during the preceding calendar year with certain limited statutory exclusions 39-7-103, C.R.S. Generally, all other property, including vacant land and personal property, is assessed at 29%, 39-1-104 (1) and (1.5) (a) , C.R.S. A change in the projected residential assessment percentage is NOT grounds for protest or abatement of taxes, 39-5-121 (1) , C.R.S. YOU HAVE THE RIGHT TO PROTEST YOUR PROPERTY VALUE. OWNERS OF REAL PROPERTY MAY ALSO PROTEST THE PROPERTY CLASSIFICATION. To preserve this right, you must protest to the Assessor either by mail or in person within 30 days of the date of this notice. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. UIL AMU bAJ REAL AND PERSONAL PROPER' Assessment Date Due Date DECLARATION SCHEDULE January 1 April 15 WELD County CONFIDENTIAL DATA AAIL TO COUNTY ASSESSOR YOU MUST FILE EVERY YEAR REGARDLESS IF ANY ADDITIONS OR DELETIONS WERE MADE. B.A. CODE T.A.CODE SCHEDULE NUMBER CHANGE OF NAME AND/OR ADDRESS 51311 1200 • • A. NAME AND ADDRESS(INDICATE ANY CHANGES) . . .. PETROCARBON ENERGY CORPORATION DO NOT USE - FOR ASSESSOR ONLY Banzhaf 1123-4 • . • ' .. Cork Description Acres Actual Value % Assessed Value P.O. Box 622029 • • 7110 Printery Prod. S 87% S 'Littleton, Colorado 80162-2029 , 7120 Secondary Prod 75 : I 1 — - 72 Improvements.. _.... .-.. ._... . .. 29 _.-....- . . _i.. ... LOCATION OF PROPERTIES(INDICATE ANY CHANGES OR ADDITIONS) . . .- , , - ' 7a Llaspini vn.a 29 NE/4SW/4 of Section 4, T10111 116114*- • TOTALS $ $ •Irt•:'•.• • rn....r:. , • . RECEIVED APPROVED • LEASE NAME OR LEGAL DESCRIPTION COMPLETED ABSTRACT CHGS. Banzhaf 1123-4 LATE FILING PENALTY APPLIED YES ❑ NOD B. Date Business s • 4/29/ type of Product or Service Oil & Gas lin County) Weld Corp. P•® Pumerahip D Individual ❑ Other Name and Address of Previous Owners: • 'STATUS OF PROPERTY (Please Check the Appropriate Box) IGF Oil Corp. - New Sub O NEW BUSINESS OR it NEW OWNNERISItYou MUST ATTACH a complete itemized listing of all your property. 216 16th Street Mall,11900 A 1. Is this the first return?•D Yes 13 No Denver, Col o-8028 • C. INVENTORY OF WELLS - . .. Total No.Wells Indicate Whether 1 Well No. Tips Depth Year Drilled I . _-. - ...You Ares• . .......-. . .r . ... .._._ . Total No.Acres ®Operator of the Lease 21-4 01.1 & Gas 7559 1982 List Fnctlopa6101rne of ®Owner of the Leasehold Operator . /9.U- • % DOwner of the Land • PLEASE INDICATE THE LIFE OF THE OIL AND GAS RESERVE IN YEARS UNDER THE CURRENT PRODUCTION RATE YRS. D. •PRODUCTION REPORT FOR PREVIOUS YEAR •Furnish primary production in section D-1 and secondary production in section D-2 D1. PRIMARY PRODUCTION OR RECOVERY Total Tra nano.led from Res al npe lY red RoY ll Dellcered Total Taxable Elver /. !a1 • Produced Sold premises unsold X ash�n1Y As dr uct OnIY I Prof IWOe Ir ci d • CA) le) ICI Pi — (Esc9E�lun) Ier CIF Olor El 11lC) r Well No. Oil (Bb(.) X21.56 671.56 , (DI ( .b2l.5fi SIR.02 /bbl GasIMCF) 17495 12,195 12.195 S .29 /MCF Well No. Oil (Bbl.) __ S /bbl Gas (MCF) S /MCF Well No. Oil IBW.) S /bbl Gas IMCFI S /MCF 02. SECONDARY.TERTIARY OR RECYCLING METHODS OF PRODUCTION OR RECOVERY Well No. Oil (Bbl.) $ /bbl Gas(MCF► S /MCF Well No. Oil IBbI.) $ /bbl Gas IMCFI S /MCF Well No. Oil (phi) $ /bbl Gas (NICE) S /MCF 03.r METHOD OF SECONDARY,TERTIARY OR RECYCLING RECOVERY, (i.e.water injection,CO2 injection,etc.). ell No. Wall No. . Well No. E. ASSESSMENT EXEMPTIONS REQUEST: (Attach separate sheet it necessary.) Exemptions are limited to the fractional interest owned by the Federal Government,the State of Colorado,counties,cities,towns,municipal corporations,tribal councils or other government organizations within the State of Colorado. Name of Oavernment Prastlonal Lease No.i Lepel Description Or/inlullon Owning I Add Owned • I I 1. . . . .._p. Likt Delow u, attach a separate sheet listing buil"''gs, fixtures and leasehold improvements eunsll''"red us rnsl.,14,U lilt: prcvr,,. . , list shall include the description and location f e property, the date of installation, the origil \stalled cost,and any additions since original installation. Sutldin/e,Pietismand Leasehold Improvements Description and Locallon Dale of Installed Cost Additions Since Original Installation Installation ATTACHED • • • i • G. -LISTING OF PERSONAL PROPERTY :.....1.i.;r ... • • Furnish'complete listing of all property.Additions and deletions may be listed if a complete listing has been previously filed with the assessor,' . . _Date Aceuired Eallmate Estimated Ilona Description Model or Year Original Nn Capacity ' Mtg. } New Used^ Installed Cost Physical Remaining Useful Life (1) List Personal Property acquired during previous year.(Attach separate sheet if necessary_1_ condition In Years - I z d. �,rJ_hs `_. �r-•--- 11�.;flLvvttits t� ' ' > 1 �.� -� ._. __t. ._ __—�--:_j_._ __ _I--�-t ItMOIT ;1QA PO 9DIAAN•YMA 3TAOIONI 231TR3gORq 31O,1OITAOOJ �'P.,1 •• • 12}) List Personal Property sold,lraded,Qr permanently disposed of during previous year. (Attach separate sheet if necessary.) • .• 7-1 ii . . . ., (3:s List ALL Mobile Equipment. Attach separate sheet it necessary. .. r I r .. .. ... NOTE: The cost, description and year acquired data must be furnished above for those fully depreciated assets still in use. K_ DEPRECIATION SCHEDULE (Furnish Information or Attach most current Copy of Federal Depreciation Schedule) —._ a_ Group and guideline class - b. Dale c. Coil or d. Depreciation e. Method of f. Life or p. Depreciation for . �_or description of property _,. •acquired other basic allowed or allowable computing _ w rate - this year -. In polar years depreciation r i i — i Cost of other fully depreciated asset;still in use. S Total depreciation I. LASED, LOANED, OR RENTED PROPERTY (Furniture,Signs,Etc.) (Declare Property Owned By Others litre.) Did you have in your possession on January 1st any leased,loaned,rented machinery,equipment, or furniture, fixtures, signs, vending mal:ines,etc.? O YES ❑ NO If yes, list below showing description of this property and name and address of owners. Pia me and Address of Owner/Lessor Description Model/Serial No. Year Curren) Cool or Year Installed Total Yearly Rent Mfg. GSA L ist Price Plume furnish details of purchase or maintenance options. J. (PURCHASER'S STATEMENT :List names and addresses of purchasers of oil and gas products. Attach separate sheet it necessary. Nam• Address Quantity Permian Corporation - Oil•. P.O. Box 1183, Houston, TX 77251 623.56• NGPL - Gas P.O. Box 1208, Lotnbarl, ILL 60148 12,195 r K. DECLARATION THIS RETURN IS SUBJECT TO AUDIT. . '1 declare,under penalty of perjury in the second degree,that this schedule,together with any accompanying exhibits or statements,has been examined by ruse and to the best of my knowledge,information,and belief,sets forth a full and complete list of all taxable personal properly owned by me or in my posses- 16171, or under my control, located in this county in Colorado ore the ern dale of this year;that such property has been reasonably described end hs waifs fairly represented;and that no attempt bete made to Jilted the or as to its age,quality,quantity or value." CRS 39 5 107421 SIGNATURE OF OWNER OR AGE IV 4 • 1-ta..,-. `< �� N$ E OF OWNER q kei)cO r(ttcn r- o f r ' lur Q . DATE '1/-1- Ye r nrvlf,rr,r Rlrr lc PFncnN SIt;Nr^PI' 111,:,, . itio,.,,,, 4-1 "c',i r, -- PIIONE-NUMBER t'3 - 9 ^a 17 0 . SURFACE EQUIPMENT LIST BANZHAF 123-4 NE/4SN/4 of Section 4, Township 10 North, Range 61 Nest Lufkin C320 D-305-100 Pumpjack 8-1/2 x 10 CMA Ajax Engine 1 . 10' x 10' (Approx) Engine House 30" x 10' Gas Separator 4' x 25' Vertical Neater—Treater 15' x 15' (Approx) Treater House 2 — 300 STB Stock Tanks Note: All equipment listed is used. Date of installation is unknown. Installed cost is unknown as Petrocarbon was not installer but rather purchased it after it was installed. UIL ANU GAS REAL AND PERSONAL PROPS f Assessment Date Due Date DECLARATION SCHEDULE January • WAD County ‘ CONFIDENTIAL DATA 1 April 15 MAIL TO COUNTY ASSESSOR • ., • YOU MUST FILE EVERY YEAR REGARDLESS IF ANY ADDITIONS OR DELETIONS WERE MADE. B.A.CODE T.A.CODE SCHEDULE NUMBER CHANGE OF NAME ANDIOR ADDRESS 51311 1200 0002507 A. NAME AND ADDRESS(INDICATE ANY CHANGES) . , ,_ . PETROCARBON ENERGY CORPORATION DO NOT USE -FOR ASSESSOR ONLY ' • ' r Code Description Acres Actual Value % Assessed Value Bashor #1-8 ` r' ' . r' 7110 Primary Prod. $ 87% S ' • • Pal. Box 622029 . . Littleton, Colorado 80162-2029 • . 7120 Secondary Prod 76 • LOCATION OF PROPERTIES(INDICATE ANY CHANGES OR ADDITIONS) 1 72 Improvernenu 29 I SE/4SE/4 of Section 8, T10N, R61W _ 14 It ZB . ... .. . TOTALS S S . ./t.r, . • -' dl.lis.! :.r„n.?r:•,.....'.-.i:...:t I. RECEIVED APPROVED LEASE NAME OR LEGAL DESCRIPTION . . COMPLETED ABSTRACT CHGS. _Bashor r/1—R LATE FILING PENALTY APPLIED YES 0 NO[] 4/29/82 B. Dais Business Started Type of Product or Serval and Gas (in countylliel d Corp.ISX Partnership 0 Individual 0 Other D • Name and Address of Previous Owners: "STATUS OF PROPERTY IPlease Check the Appropriate Box) • ' ' .0 NEW BUSINESS OR 0 NEW OWNERISIIYou MUST ATTACH a complete itemized listing of all your property. 1 .1. Is this the first return?• D Yes ® No . C. INVENTORY OF WELLS Total No.Wells .... • , Indicate whethir •' ' i Well No. • Type Depth Year Drilled IXou Aral. ... . . a..::....�_.. , • Total No.Acres Ia Operator of the Lease 1-8 011 and Gag 7553 r 1980 List Fracti 80 Inurest of ®Owner'of the Leasehold alOperator .74..12 • % DOwner of the Land - ` . ' PLEASE INDICATE THE LIFE OF THE Ott.AND GAS RESERVE IN YEARS UNDER THE CURRENT PRODUCTION RATE YRS. • D. PRODUCTION REPORT FOR PREVIOUS YEAR • Furnish primary production in section D•1 and secondary production In section 0.2 Dl. PRIMARY PRODUCTION OR RECOVERY Total Transported from o, Ify Iv red ppy1lt PellYaed Total TaxaaN Av t lr s Produced Sold pnmhu unsold q `•ar��ni /1i Yrd ucl Only F pr ee e 1 k ad (8) Ij■c'� lon, IEnc lion) ( 1 or q r IAIICI L1 ni (6r C•Olor E) 1 Well No. Oil (Bbl.) 1002.18 1002.18 • __.�QQ2r1N $ 17.47 /bbl GasIMCF) 18,833 18,833 18,833 $ .32 /MCF Well No. Oil (Bbl.) $ /bbl Gas IMCFI $ /MCF Well No. Oil (8b1.) $ /bbl Gas (MCF( $ /MCF 32. SECONDARY,TERTIARY OR RECYCLING METHODS OF PRODUCTION OR RECOVERY Well No. Oil (Bbl.) $ /bbl Gas(MCF) $ /MCF Well No. Oil (Bbl.) $ /bbl Gas (MCFI $ /MCF Well No. Oil IBW.) $ /bbl Gas (MCF) $ /MCF r DMETHOD OF SECONDARY,TERTIARY OR RECYCLING RECOVERY, (i.e.water injection,CO2 Injection,etc.). oll No. Walt No. Well No. E. ASSESSMENT EXEMPTIONS REQUEST: (Attach sep iheet If necessary.) Exemptions are limited to the fractional interest owned by the Federal Government,the State of Colorado,counties,cities,towns,municipal corporations,tribal councils or other government organizations within,the State of Colorado. Hama of 0sseremini Presllenal Lease Ne.I Legal Description Oreanlxatlen Owning let A Owned Told Preduellgnt exemptsITsireatu I amsrral or MCP. List below% r attach a separate sheet listing bu" is,fixtures and leasehold improvements cones' •,d or installed the previous year. lilts list shall'InCtude the description and location .,e property, the date of installation, the origi .%stalled cost,and any additions since original installation. . Buildings.Fixtures sad t essebotd Imprevemonts Description and LocationInstallationlon Date of Installed Cost Additions fln4pa O►1/Inal mlallallon• • ATTACHED -• i • . I • . • 3•. . ,: :'63+•o.c:,. (MA ami,t•. .p ,+. 6:-- LISTING OF PERSONAL PROPERTY • 1t C.C�_.__..._ __._ . 'i.<,:'.•'• 'Furnish a complete listing of all property.Additions and deletions may be listed if a complete listing has been previously filed with the assessor. 3 .,':; Item - . Modal or , i 1 Year Dale Acquired [ Original • Estimated r;,Oescrlptlon tr No. ' Cepaclty ! MCC New Used Installed Coil Estimate Ramalnln/ Physical Useful Lila (1) List Personal Property acquired during previous year. (Attach se crate sheet if necessary.) Condition In Years - "11W,:o;'-H, i Vsz;), ', . .• -1 , • .,-------4 .. , . . • ovoif git?.1',_,..f..,_..,__,__...__ LEt d1"'►tI it--.7lT an,A RO '4GHA►1t YInA 3TA:I}ONst_23ITta3goav RO*-1OSTAOi (21 lit Parionll Property sold,traded.41 permanently disposed pf durinitprevious year. (Attach separate sheet if necessary.) . . (3) List ALL Mobile Equipment. Attach separate sheet if necessary. • • NOTE: The cost, description and year acquired data must be furnished above for those fully depreciated assets still In use. H. DEPRECIATION SCHEDULE (Furnish Information or Attach most current Copy of Federal Depreciation Schedule) ' a. Group and guideline class b. Date e. Cost or' d. Depreciation 5. Method of I. ore or : 5. Depresiatiop for I • _,__` er description of property . _.,. acquired. , other bails . allowed er Nloweble computing sale . . .... .' thla year in prbr yun depreclallon ;.::1 + i ,. . �.. .... .I1 . i . j..... .... .. _ -, .�-. .�.�- •,1�.. .... Cost of other fully depreciated assets still in use. S Total depreciation I. LEASED, LOANED,OR RENTED PROPERTY (Furniture,Signs,Etc.) (Declare Property Owned By Others Here.) Did you have in your possession on January 1st any leased,loaned,rented machinery,equipment, or furniture,fixtures, signs, vending • machines.etc.? ❑ YES O NO I f yes, list below showing description of this property and name and address of owners. Name and Address of Owner/Lessor Description Modes/Serlal No. Year Current Cost o►Mfg. GSA List Price Year Installed Total Yearly Rent • Please furnish details of purchase or maintenance options. J. PURCHASER'S STATEMENT List names and addresses of purchasers of oil end gas products.Attach separate sheet if necessary. Nerve . . Address . Quantity Permian Corporation - Oil • . • P.O. Box 1183, Houston, TX 77251 1002.18 • NGPL — Gas - P=0, Box 1208, Lombards ILL 6011_48 _ 18,831 K. DECLARATION THIS RETURN IS SUBJECT TO AUDIT. . .. "I declare,under penally of perjury in the second degree,that this schedule,together with any accompanying exhibits or statements,has been examined by me end to the best of my knowledge,information,and belief,sets forth a full end complete list of all taxable personal properly owned by me or in my poesy lion, or under my control, located in this county In Colorado on the assessment date of this year;that such property has been reasonably described and its value fairly represented;and that no attempt has been made o mislead the assessor as to its age,quality,quantity or velue." CRS 39 5.10712) • • SIGNATURE OF OWNER OR AG NT U . 1` - j, 1 ,%_ )- p NAME OF OWNER IQRf�rnc t4„- Enr..9 (r,f to DATE �1--1' �0 PRINT NAME OF PERSON SIGNING W.n- ke u:N +',.2111 ' PIIONE NUMBER 3t_`A - 9 7 3 -D 9 70 ._..`_.r PI FASF roMPt ETE,SIGN AND RETURN TO THE ASSESSOR ON OR BEFORE APRIL 15 t • SURFACE EQUIPMENT LIST BASHOR I1-8 SE/4SE/4 of Section 8, Township 10 North, Range 61 Nest 30" x 15' (Approx) Horizontal Heater-Treater 2 - 300 STB Stock Tanks r UIL MHO LI/15 . ' REAL AND PERSONAL PROPE ' Assessment Date . Due Pate DECLARATION SCHEDULE January 1 • April 15 WELD county CONFIDENTIAL DATA MAIL TO COUNTY ASSESSOR YOU MUST FILE EVERY YEAR REGARDLESS IF ANY ADDITIONS OR DELETIONS WERE MADE. B.A.CODE T.A.CODE SCHEDULE NUMBER CHANGE OF NAME AND/OR ADDRESS 51311 1200 0006767 • A. NAME AND ADDRESS(INDICATE ANY CHANGES) .• . . ..._ PETROCARBON ENERGY CORPORATION DO NOT USE - FOR ASSESSOR ONLY ' Bashor #8-8 . . _ code Description Acres Actual Value % As Value ' P.O. Box 622029 '' 7110 Primary Prod. S 87'G S Littleton, Colorado 80162-2029' . . . , 7120 Secondary Prod. 75 1 I . 29 I LOCATION OF PROPERTIES(INDICATE ANY CHANGES OR ADDITIONS) ;Th 72 Imprrnnmenu' — SE/4NE/4 of Section 8, T1ON, R61W • ` " 7e rdirhsli,Vin'a 29 r . . ... TOTALS S S . • rll'.+l•t.:--:•'.I,.;:r:'+':- • . • 1 RECEIVED APPROVED LEASE NAME OR LEGAL DESCRIPTION . COMPLETED ABSTRACT CHGS. Bashor #8-8 - LATE FILING PENALTY APPLIED YES O NOID B. Dale Business Started nr _?/_eype of Product or Service Oil & Gas On County) Weld Corp.intPartnership Individual Other Name and Address of Previous Owners: `STATUS OF PROPERTY(Please Check the Appropriate Box) - _ .. ❑NEW BUSINESS OR O NEW OWNERIS)IYou MUST ATTACH•complete Itemized listing of ill your property. 1 1. le this the first return?-D Yes IXII No • • C. INVENTORY OF WELLS Total No.Well) ..., .. „- Indlcase Whether ` ' ( Well No. Type Depth Year Grilled -. ..iaU Are,. ... •,-..-.� : -.e ,......... ...; • 1 Total No.Acres ,Operator of the Lease 8-8 011 b Gas _M0 1982 List Fractional Interest of ®Owner`of the Leasehold Operator . • A9,14 • % DOwner of the Land - . PLEASE INDICATE THE LIFE OF THE OIL AND GAS RESERVE IN YEARS UNDER THE CURRENT PRODUCTION RATE YRS. D. PRODUCTION REPORT FOR PREVIOUS YEAR • Furnish primary production in section D-1 and secondary production in section D-2 D1. PRIMARY PRODUCTION OR RECOVERY �we Total (U) Trengeritihom heyity-Retied t�y$1W )tiled Tolattexeele Prl rpli ad ►reduced Sold pnmhq umeld Z Ca• ^r . r �u n1Y IFI or d r ce xclu onlaser) LI Isec•DlorEl 1 Well No. Oil 18b1.) 7190 96 2190 96 7.190 96 $ 17 R7 /bbl Gas (MFFI 6125 6125 _ 6125 $ .71 /MCF Well No. $ /bbl Oil (Bbl.) $ /MCF Gas (MCF) Well No. Oil (Bbl.) $ /bbl Gas (MCF) - S /MCF 12. SECONDARY,TERTIARY OR RECYCLING METHODS OF PRODUCTION OR RECOVERY Well No. Oil (Bbl.) $ /bbl $ /MCF Gas (MCF) $ /bbl Well No. Oil (Bbl.) $ /MCF Gas (MCF) Well No. Oil (BU.) $ /bbl Gas (MCF) $ /MCF D3. METHOD OF SECONDARY,TERTIARY OR RECYCLING RECOVERY, (i.e.water injection,CO2 injection,etc.). relI No. [Well No. Well No. E. ASSESSMENT EXEMPTIONS REQUEST: (Attach separate sheet If necessary.) Exemptions are limited to the fractional interest owned by the Federal Government,the State of Colorado,counties,cities,town{,municipal corporations,tribal councils or other government organizations within the State of Colorado. • Name of Government Pualtanat Leese No.a Legal Deserlptlon Organization Owning I Address I Owned • 1.,•••r p.ndae,lnn. I exempt, ITaxehloe Inane,or Mcr, List l$low'of attach a separate sheet listing bp'' is,fixtures and leasehold improvements const 'id or installed the previuus yean. I me list shell Include the description and location .ne property, the date of installation, the orig installed cost, end any additions since original installation. • buildings,fixtures and Leasehold Improvements Description and Lecation InlptaliNioe Instsue tort Addllltnitallatlonrleldat ATTAPNPn .. . • - f.:.?'a.'ci. :;,t;.h's.t•. .f.. 'G. LISTING OF PERSONAL PROPERTY. . ••••j�; i ',Furnish a complete listing of all property.Additions and deletions maybe listed If a complete listing has been previously filed with the assessor.' . ',' Item r • . Model as ,.. Year Date Aequlrad Original Estimated No. '-. Doscripllon • ' Capacity ' Mfg. New Used Installed Cost [snouts 11eme1nlrre _. ( Condition Milani Lift- Co (1) List Personal Property acquired during previous year.(Attach separate sheet if necessary.) in Years =- ..-4...:.----.1.---4-------•--1------r—` A I .. . r d 11 IEMDR GOA RO .hDMAN YNA 1TAOIONP 231TR3gORtiO NOITIWOJ (2) _1st Personal Property sold,traded,or oermenently disposed of durine previous ye r, (Attach separate sheet if necessary.) (3) List ALL Mobile Equipment. Attach separate sheet if necessary. • • NOTE: The cost,description and year acquired data must be furnished above for those fully depreciated assets still In use. H. DEPRECIATION SCHEDULE (Furnish Information or Attach most current Copy of Federal Depreciation Schedule) • —- ' a.'Group and guideline class ' b. Date e. Cost or d. D precla/lon e. Melh?of I. Life or 5. Depreciation(Sr -t. __,_ Crdescriptlen of properly ... _.. acquired .. *thee basis ellewea�eraaoweNe l srleiVa a rate .. this year : • -- , In rylof revs Npaclellon •, i I . Cost of other fully depreciated assets still in use. $ Total depreciation I. LEASED,LOANED,OR RENTED PROPERTY (Furniture,Signs,Etc.) (Declare Property Owned By Others Here.) Did you have in your possession on January 1st any leased,loaned,rented machinery,equipment,or furniture,fixtures, signs,vending machines,etc.? ❑ YES ❑ NO I f yes,list below showing description of this property and name and address of owners. Name and Address of Owner/Lessor Description Model/serial No. Vim GSACurrent Uri v„c r Year Installed Total Yearly Rant • Please furnish details of purchase or malntenence options. . J. PURCHASER'S STATEMENT List names and addressee of purch Name foil end per products.Attach separate sheet if necessary. Address Quantity Permian Corporation - 01I P.O. Box 1183. Houston, TX 77251 2390.96 • NGPL — Gas P.O. Box 1208, Lombard, ILL 60148 6125 • K. DECLARATION THIS RETURN IS SUBJECT TO AUDIT. . . "I declare,under penalty of perjury in the second degree,that this echdule,together with any accompanying exhibits or statements•has been examined by "'me end to the best of my knowledge,information,and belief,sets forth a full and complete list of all taxable personal property owned by me or in my polies* Non,of under my control, located In this county in Colorado on the assessment date of this year:that such property has been reasonably described and its value fairly represented;and that no attempt has been�►r/1.d•to bleed the assessor as to Its este,quality,quantity or value." CRS 30-&107121 SIGNATURE OF OWNER OR GENT �. tLI Lj NAME OF OWNER �t'recor k..yy 1=.ne,e y p(tare. DATE l -1-ae PRINT NAME OF PERSON SIGNING O vu7 t(S PHONE NUMBER al3-17 a a 10 .. . . . . .- _.,_ .._....,... ^u ..,. 'terrine sent' lei . . e. SURFACE EQUIPMENT LIST fr BASH0R /8-8 • SE/4NE/4 of Section 8, Township 10 North, Range 61 West Salzgitter 228-200-74 Pumpjack 34 HP Lister Engine 30" x 15' (Approx) Horizontal Heater—Treater 2 — 300 STB Stock Tanks UIL ANU GAS - • REAL AND PERSONAL PROPE Assessment Date Due Date WELD DECLARATION SCHEDULE . January` CONFIDENTIAL DATA • 1 April 15 MAIL TO COUNTY ASSESSOR YOU MUST FILE EVERY YEAR REGARDLESS IF ANY ADDITIONS OR DELETIONS WERE MADE. B.A.CODE T.A.CODE SCHEDULE NUMBER CHANGE OF NAME AND/OR ADDRESS 51311 1200 0006768 A. NAME AND ADDRESS(INDICATE ANY CHANGES) • PETROCARBON ENERGY CORPORATION DO NOT USE - FOR ASSESSOR ONLY ' • Beehor #8-17 Coda Description Acres Actual Value % Anear/0 Value P.O. Box 622029 ' • .. r • • 7110 Primary Prod. S 87%S Littleton, Colorado 80162-2029 ' , 7120 Secondary Prod 75 . I ' LOCATION OF PROPERTIES(INDICATE ANY CHANGES OR ADDITIONS) ' 72 Improvements' -' - 29 - 'I - • • SE/4NE/4 of Sec tion 171' '1.10N, 126).W v. - 74 MgaIh,t rn.a 29 • . .. TOTALS S S "•4't'"''^ "'i:V...'• • - ' "' RECEIVED APPROVED • LEASE NAME OR LEGAL DESCRIPTION COMPLETED ABSTRACT CHGS. Baehor 98-17 - LATE FILING PENALTY APPLIED YES O NOD B. Dale Business Started k/:7Q/RG•pe of Product or Service flit a. Cna lin County)Veld Corp .al Partnership❑ Individual 0 Other ❑ Name and Address of Previous Owners: 'STATUS OF PROPERTY(Plena Check the Appropriate Box) - - ' ' O NEW BUSINESS OR ❑NEW OWNERISIIYou MUST ATTACH•complete itemized lining of all your property. 1 1. Is this the first return]-O Yee an No C. INVENTORY OF WELLS " , •_ . ., - Total No.Well, . " _ indicate Whether I Well No. - Type Depth Year Drilled 1 Total No.Acres al Operator of the Lease 8 17 Oi d Cue—_ 76g6 1982 80 Lin Fractional Inane of &r Owner the Leasehold Operetor . 72.-1] % ❑OImer of the Land PLEASE INDICATE THE LIFE OF THE OIL AND GAS RESERVE IN YEARS UNDER THE CURRENT PRODUCTION RATE YRS. D. PRODUCTION REPORT FOR PREVIOUS YEAR - Furnish primary production In section D-1 and secondary production In section D-2 D1. PRIMARY PRODUCTION OR RECOVERY Total Transported from A0 ally pa Ir rW fr It Dell trod Total Aaable ♦re)f eg Produced (6) pnmle,Ct mold �Mcl^¢n�' Ai�r�-ucl�rnlY IF) Pried FE qe�IrHiad Well No. Oil MI.) tgnt (Eac9eri I lilt0.0lorE) t ! lloo 2157.53 2157.53 1 - 2157.53 $ 18.69 /bbl Gas IMCFI 9994 9994 9994 $ .15 /MCF Well No. Oil IBbI.) $ /bbl Gas IMCFI $ /MCF Well No. Oil (Bbl.) $ /bbl i Gas IMCFI $ /MCF 02. SECONDARY,TERTIARY OR RECY(2151.53 W IS.t.9 * .615 a. 3>, a E33 I Well No. Oil (Bbl.) 9994 / - IS t .875 = I, -31 $ /bbl Gas (MCF) __ $ /MCF Well No. Oil IBM.) �/° ''9 $ /bbl Gas IMCFI • $ /MCF Well No. Oil (Bbl-1 $ /bbl Gas IMCFI 31o,(ooO s . 1 118 = a,9-11. 1.7 $ /MCF 03. METHOD OF SECONDARY,TERTIAI. . t.h i 1,CO2 injection,etc.). re11 No. t ,1 I No. E. ASSESSMENT EXEMPTIONS REOUE!Q4 .:JBII,,�Exemptions are limited to the fractional in 4.t)351 g63 * .081 13 6 = 2.8104 2.8104 .aO Colorado,counties,cities,towns,municipal corporations,tribal councils or other govet_.n.a..4..; . tAt>. • Fractional Lain No.a,Lola DescrIptlea urrta 1.'. .-. I Ownee 4. Total►roductlsn` loge Iama rMCI.; ^ List belov► or attach a separate sheet listing btl" ''ngs, fixtures and leasehold improvements const,..cted or installed the previous year, Ibis list •hall include the description and location le property, the date of installation, the orit installed cost, and any additions since original installation. • Buildings.Fixtures and Leasehold Improvements Description and Location Installation Dale of Installed Cost Additions atote OriginalInstallation ATTACHED i , • i . i ! , . , . ‘• ,+ Ei'lL,t'./. CO:.ii;lt,i` .n 1G. PROPERTY . I - f,;.. 'Furnish a complete listing of all property.Additions and deletions maybe listed if a complete listing has been previously filed with the assessor., +. Item Description Modal or I t Year _Date Acquired Original [OlmstedNo. • ' Capacity l Mfg. I Installed cost Estimate Remaining New Used Physical Useful Life (1) List Personal Property acquired during previous year. (Attach se orate sheet if necessary.) Condition in Years . ` 4``;,1_._�:es�l.,.._.-. . ..__ et.Wr±d.ut� N� i≥_1 ftetp,T non Pt) +9bNAN' YHA 5TAbIOVIIti L9rTA39oRYM0t+10ITA�� ;:.q pry ` H1 (21 _iit Personal Property sold,tr d d.or rman 1 d e duri revious year. (Attachseparate heel necessary.)try ltd. Pe en1 y i;po; d Q1 n91? y a ._{ t s 1f Y 1 . li . (3) List ALL Mobile Equipment. Attach separate sheet if necessary. lvl.' rC NOTE: The cost, description and year acquired data must be furnished above for those fully depreciated assets still in use. H. DEPRECIATION SCHEDULE (Furnish Information or Attach most current Copy of Federal Depreciation Schedule) ' a. Group and puidatine class b. Date a. Cost or d. Depreciation e. Method of I. Lire or g. Depreciation for allowed N ayl wable • sampulMa .t.,. ... __•,_Y or deso►rptlen of property •_, ... acquired other bads In prior yearn bpnc{atlon rate . this year ,. :'� — —j — .- i Cost of other fully depreciated melt still in use. $ Total depreciation I. LEASED, LOANED, OR RENTED PROPERTY (Furniture,Signs, Etc.) (Declare Property Owned By Others Here.) Old you have in your possession on January 1st any leased,loaned,rented machinery,equipment, or furniture,lixtures, signs, vending machines, etc.? ❑ YES O NO If yes, list below showing description of this property and name and address of owners. Name and Address of Owner/Lessor Description Model/Sarlal No. Yaar Currant Cc"or Year Installed Total Yearly Rent mtg. GSA List Price Please furnish details of purchase or maintenance options. J. PURCHASER'S STATEMENT List names and addresses of purchasers of oil and gas products.Attach separate sheet If necessary. . • Name Address . Quantity ' Permian Corporation - Oil P.O. Box 1183, Houston! Texas 77251 2157•.53 , NGPL - Gas • P.O, Box 120$:; Lombard, Ills 60148 9994 K. DECLARATION THIS RETURN IS SUBJECT TO AUDIT. "I declare,under penalty of perjury in the second degree,that this schedule,together with any accompanying exhibits or statements,has been examined by me and to the best of my knowledge,Information,end belief,sets forth a full and complete list of all tearable personal property owned by ma or In my posses- sion, or under my-control,located In this county in Colorado on the assessment date of this year;that such property has been reesonabIv described end its value fairly represented;and that no attempt has bee,made Weed the assessor es to its age,quality,quantity or value." CRS 39 5.101(21 SIGNATURE OF OWNER 1l U2 AGENT ' '^ _ NAME OF OWNER ittlioratlpr_v,, Ir <ryi A:r DATE 4-1- 1 PRINT NAME OF PERSON SIGNING �''''''• 1r'.rir Ills-I S 1 PRONE NUMBER SO3 -c131) "•3 Q 703 s PI FASF r tMPI FTF SIGN ANn RFTIiRN Tn TNF ASSESSOR ON OR BEFORE APRIL IS s ' • SURFACE EQUIPMENT LIST BASN0R 18-17 SE/4NE/4 of Section 17 Township 10 North, Range 61 West Lufkin 228 Pumpjack 8-1/2 x 10 CMA Ajax Engine 10' x 10' (Approx) Engine House 4' x 25' Vertical Heater—Treater 15' x 15' (Approx) Treater House 30" x 10' Gas Separator 2 — 300 STB Stock Tanks r OIL AND GAS . - REAL AND PERSONAL PROPEF Assessment Date Due Date DECLARATION SCHEDULE January 1 April WELD County CONFIDENTIAL DATA 15 SAIL TO COUNTY ASSESSOR YOU MUST FILE EVERY YEAR REGARDLESS IF ANY ADDITIONS OR DELETIONS WERE MADE. B.A.CODE T.A.CODE SCHEDULE NUMBER CHANGE OF NAME AND/OR ADDRESS 51311 1200 A. NAME AND ADDRESS IINDICATE ANY CHANGES) PETROCARBON ENERGY CORPORATION DO NOT USE - FOR ASSESSOR ONLY Anderson #22-4 . Cede Description Acres Actual Value % Assessed Value . P.M. Box 620229 ' 7110 Primary Prod. S 81%r S Littleton, Colorado 80162-2029 7120 Secondary Prod. 75 — .. . I . - •-•. . .. _. LOCATION OF PROPERTIES IINDICATE ANY CHANGES OR ADDITIONS) 72 Improvements , turn• SE/4NW/4 of Section 4, T1ON, R61W 70 achl�ery 29 s TOTALS S S 'en::'' '•.r:••r+'v . • ' RECEIVED APPROVED LEASE NAME OR LEGAL DESCRIPTION COMPLETED ABSTRACT CHGS. 1 Anderson #22-4 • LATE FILING PENALTY APPLIED YES O NOD 3. Dees Business 5 4/29/8?ype o1 product or Service Oil and Gas fin County) Weld Corp.E3 Partnership O Individual 0 Other CI Name and Address of Previous Owners: 'STATUS OF PROPERTY (Please Check the Appropriate Boa) - .. ' MCF Oil Corp — New Sub El NEW BUSINESS OR [il NEW OWNERISIIYou MUST ATTACH a complete Itemised listing of all your property. 216 16th Street Mall, #900 I I. Is this the first return?-❑ Yes (7—I[ No Denver. Colorado R02Q2 .. __._-s. _.._..._. C. INVENTORY OF WELLS '- .,, .. . ' Total No.Wells ._�1 _ Indicate Whether • . i Well No. Type Depth Year Drilled Total No. Acres 8a g]Dperator of the Leese 22-4 / 011 and Gas 7555' 1983 List Factional Interest of 1n Owner of the Leasehold Operetor . •7ia--80 • V. (]Owner of the Land • PLEASE INDICATE THE LIFE OF THE OIL AND GAS RESERVE IN YEARS UNDER TIIE CURRENT PRODUCTION RATE YRS. D.• PRODUCTION REPORT FOR PREVIOUS YEAR •Furnish primary production in section D•1 and secondary production in section D•2 Dl. PRIMARY PRODUCTION OR RECOVERY Total Sold Transported from no el Y ppeeIIr red RoY+IIY-Dellvered von a 554 Xh O t p Total Taxable P 1 Produced premises unsold n Y As odusi n) Pr a!t e 1I ud (A) (B) IC) 13'i°,ep son) (Eec(Efion) (BtC•OIorE) or Fled) rice Well No. --i-1— �_L—. 1 Oil (Bbl.) 777.fift 777.66 ._21L66 S 18.11 /bbl Gas (MCF) 6159 6159 6159 S .26 /MCF Well No. Oil (Bbl.) . , S /bbl Gas (MCF) S /MCF Well No. Oil (BU.) S /bbl Gas (MCFL S /MCF 02. SECONDARY,TERTIARY OR RECYCLING METHODS OF PRODUCTION OR RECOVERY Well No. Oil (BM.) S /bbl Gas (MCF) S /MCF Well No. Oil (Bbl.) S /hbl Gas (MCF) • S /MCF Well No. Oil IBbl.) S /bbl Gas (MCF) S /MCF D3. METHOD OF SECONDARY,TERTIARY OR RECYCLING RECOVERY, (i.e.water injection.CO2 injection.etc.). rill No. Well No. Well No. • E. ASSESSMENT EXEMPTIONS REQUEST: (Attach separate sheet if necessary.) Exemptions are limited to the fractional interest owned by the Federal Government,the State of Colorado,counties,cities,towns,municipal corporations,tribal councils or other government organizations within the State of Colorado. Name el Oevevnmen' Fractional Lem No.A Legal Description Organisation Owning Interest A Owned t . r -r nfPr List below or attach a separate sheet listing bur' 1s, fixtures and leasehold improvements consir d or installed the previous veal, sin. list shall include the description and location .te properly, the date of installation, the origil mailed cost,and any additions since original installation. . Mullein s,Plstures and Leasehold improve menis Description and Location Date or Installed Con Additions lmUince Original e Ins lath tion ATTACHED) , i r; 5:--LISTING.OF PERSONAL PROPERTY, 7:..;Li ' '"" ' "I • • Furnish a complete listing of all property.Additions and deletions may be listed if a complete listing has been previously filed with the assessor. . I lens .. Model or . Year I Date Acquired Original Estimated N0. Description . Capacity ' Mb. New Used _ installed seal Estimate h)mod Rsmalning ( Y Useful Lila (1), List Personal Property acquired during previous year.[Attach se orate sheet if necessary.) condition in Years 1 'C41-4" 2?".4::i: -l.ea f-••• ------ . al .RMYgA261.1. st 1 tt oir UCA Ro '9AMasi •'NA ITAasON11231TR3gORV 40 NOITAO07 4.a (2)1 _ist Personal Property sold.traded,or permanently disposed of during previous year. (Attach separate sheet If necessary.) (31i List ALL Mobile Equipment. Attach separate sheet if necessary. • • NOTE: The cost, description and year'acquired data must be furnished above for those fully depreciated assets still in use. IL DEPRECIATION SCHEDULE(Furnish Information or Attach most current Copy of Federal Depreciation Schedule) • --- a. Greco and guideline class b. Date a. Con or d• Dapr.Gatlon a. M.thod of I. Life or e. Depreciation for , w description of fly . _.. ,acquired other bade allo • wed or prier row i ble .d computing tattoo rate 'T . . IMs Yur '.-. - . i • ..... ,. .... ...0 Cost of other fully depreciated assets still in use. S Total depreciation I. 'LEASED, LOANED,OR RENTED PROPERTY (Furniture,Signs,Etc.) (Declare Property Owned By Others Here.) Did you have in your possession on January 1st any leased,loaned,rented machinery,equipment, or furniture,fixtures, signs,vending machines,etc.? 0 YES 0 NO II yes,list below showing description of this property and name and address of owners. Name and Address of Owner(Lessor Description Model/serhl tie. VW Current Cost or Year Installed Total Yearly Rent Mtg. GSA List NU! • • Plena furnish details of purchase or maintenance options. J. PURCHASER'S STATEMENT :Litt names and addresses or purchasers of oil and gas products.Attach separate sheet it necessary. Name Address . Quantity • Permian Corporation- Oil P.O. Box 1183, Houston, TX 77251 777.66,r ' ... NGPL - Gas P.O. Box 1208, Lombard, ILL 60148 6159 • K. DECLARATION THIS RETURN IS SUBJECT TO AUDIT. . "T declare,under penalty of perjury in the second degree,that this schedule,lggesher with any accompanying exhibits or statements,has been examined by nne and to the best of my knowledge,information,and belief,sets forth a full and complete list of ell taxable personal property owned by me or In my posses• sir, or under my control, located in this county in Colorado on the essestment date of this year:that such property hes been reasonable described end 111 orals*fairly represented:and that nO al tempt has hegn med �Jp mislead the ssssssor as to Its age,quality,quantity or Initial' CRS 395.10)12) SIGNATURE OF OWNER OR AGIN7 T IA Qs./•. Fes-. —7—f d NAME OF OWNER il.1focar bcn Ert*ris1 ('4 DATE rp -� 1J t-t570 . nr,rirr trAsir or nrnrnf slrrrrin (A1rY,_ 14.!4.1:“ I nu,.QYS .. PHONE-NUMBER '___._ . . . a. . ..-. .._. • SURFACE EQUIPMENT LIST ANDERSON 122-4 SE/4NW/4 of Section 4, Township 10 North, Range 61 West National F228-205C-86 Pumpjack 8-1/2 x 10 CHA Ajax Engine ;: 10' x 10' Engine House (Approx) :r! 30" x 10' Cos Separator 4' x 25' Vertical Heater—Treater 15' x 15' (Approx) Treater House 2 — 300 STB Stock Tanks Note: All equipment listed is used, Date of installation is unknown. Installed cost is unknown as Petrocarbon was not installer but rather purchased it after it was installed. r OIL ANU GAS e REAL AND PERSONAL PROPER Assessment Date Due Pate , DECLARATION SCHEDULE January 1 April 15 WELD County r CONFIDENTIAL DATA MAIL TO COUNTY ASSESSOR YOU MUST FILE EVERY YEAR REGARDLESS IF ANY ADDITIONS OR DELETIONS WERE MADE. B.A.CODE .T.A.CODE SCHEDULE NUMBER CHANGE OF NAME AND/OR ADDRESS 51311 1200 • A. NAME AND ADDRESS(INDICATE ANY CHANGESI .- . . . . .. . PETROCARBON ENERGY CORPORATION DO NOT USE - FOR ASSESSOR ONLY • Josey #1 '• • . . -.. Code Description Acres Actual Value % Assessed Value P.O. Box 620229 ' ' ' 7110 Primary Prod. _ $ 077, S Littleton, Colorado 80162-2029 . 7120 Secondary Prod. 75 LOCATION OF PROPERTIES(INDICATE ANY CHANGES Oft ADDITIONSI 7— 2 Ikmprwernenla 29 .. .- mitl thely 29 SW/4NW/4 of Section 8, TION, R6'1W, TOTALS S S . . . ilt;i1.1:•.. :A.,o..r:. . . • i `.. RECEIVED APPROVED LEASE NAME OR LEGAL DESCRIPTION COMPLETED ABSTRACT CIIGS. Josey #12-8 LATE FILING PENALTY APPLIED YES O NOD /29TB 011 and Gas Weld B. Date Business S type of Product or Service (in Coun1V1 Corp.lta Partnership❑ Individual ❑ Other ❑ • • • NMGe}nd Address Previous w Sub "STATUS OF PROPERTY (Please Check the Appropriate Bon) • • C 00111 Corp ❑NEW BUSINESS OR IA NEW OWNERISI(You MUST ATTACH a complete itemized listing of all your property. 216 16th Street Mall, 0900 l 1. Is this the first return?•O Yes I 1No . • Denver, Colorado R0702 C. INVENTORY OF WELLS ..',. ._ . Total No.Wells .:• Indicate Whether I Well No. Type Depth Year Drilled 1 . .. ..Yaw Ares... . . ..d ... ..-... Total No. Acres ®Operator of the Lease 12—u _ Oil and Gas _ 7630' . 1981 List Fractional 80raq of 0 ri Owner of the Leasehold Operator . n- •93_ % DOwner of the Land ' PLEASE INDICATE THE LIFE OF THE OIL AND GAS RESERVE IN YEARS UNDER THE CURRENT PRODUCTION RATE YRS. D. PRODUCTION REPORT FOR PREVIOUS YEAR • Furnish primary production in section D•1 and secondary production in section D•2 111. PRIMARY PRODUCTION OR RECOVERY Total Transported Item Royal1Y t Ir red rley t oeulverW Total Taxable putt .1 aae Sold A C,rh bolt As�rOAuct onlr t Price. Wei read • ►roduced. 191 premises unsold it eclo dons IE ac u long FI er F1 Id r u (A) (CI ID) _ set_ to rc•0 for El �C) Well No. Oil (BM.) 175l Al 17,51 47 - . 1 751...x.1 j_—" Sac, 39 /bbl Gas (MCF) 47 Sfsfi 117 566 -,2_,56(, S 28 /MCF Well No. Oil (Bbl.) S /bbl Gas (MCFI 5 /MCF Well No. Oil (Bbl.) S /bbl $ /MCF Gas (MCFL 02. SECONDARY.TERTIARY OR RECYCLING METHODS OF PRODUCTION OR RECOVERY Well No. Oil (Bbl.) $ . /bbl Gas (MCF)" S /MCF Well No. Oil (85.) • S /bbl Gas (MCF► S /MCF Well No. Oil CU.) $ /bbl Gas IMCF) • $ /MCF 0"""""3. METHOD OF SECONDARY.TERTIARY OR RECYCLING RECOVERY, (i.e.water injection, CO2 injection,etc.). Irvdl No. Well No. Well No. E. ASSESSMENT EXEMPTIONS REQUEST: (Attach separate sheet II necessary.) Exemptions are limited to the Tractional interest owned by the Federal Government,the State of Colorado,counties,cities,towns,municipal corporations,tribal councils or other government organizations within the State of Colorado. Name el Government . Fractional Lean No.L Legal DescrIptlon Oreanlaatlen Owning Interest Address Interest Owned I T I _. List below or attach a separate sheet listing bus .gs, fixtures and leasehold improvements const, did or installed the inCVIUus year. I sus list shall include the description and location , .se property, the date of installation, the origir (stalled cost,and any additions since original installation. . 1 Date of . Additions Since Orbiting Sutidings,Fixture'and Leasehold Improvements Desertptlon and Location (niUlbllon Installed Coll Installation Attnrhnd . • • 1 .... . . •, ; f, !G. -LISTING OF PERSONAL PROPERTY ' • :;.. ' """ ` •i !Furnish a complete listing of all property.Additions and deletions maybe listed if a complete listing has been previously filed with the assessor. Ilerw - Dueripllon Model er • year Date Aeeuired Original Estimate ' Estimated Net- Capacity • Mtg. New I Used Installed Cost Physical Remaining (11 List Personal Property acquired during previousyear. (Attach se grate sheet if necessary.) condition In T use In year, 1 i ..H44• '' ltlaf al adiayyNrti —le { .,}',}}1 _._�.._..- .._—__—_..—.__....._. ._._.__,__i`.J ILe101T or?A PO ?9DMAi.YHA 9YA910NI1 231TR3gORq q0 NOITAODJ %;Sia7 ' In AST Personal Property sold,traded,or permanently disposed of during previous year. (Attach separate sheet if necessary.) _3:I List ALL Mobile Equipment. Attach separate sheet if necessar•, ( . 1 • .,.. • . .. .. NOTE: The cost, description and year acquired data must be furnished above for those fully depreciated assets still in use. IL DEPRECIATION SCHEDULE (Furnish Information or Attach most current Copy of Federal Depreciation Schedule) --- a_ Omuta and guideline elms b. Date a. Cost or d. Depreciation e. Method of I. Lila or 5. D4reclation for • w description of rty .... ,acquired ether buds allowed er allowable•computing rate . _ this year • • I ` ' "-- In pier years depreciation -"' , I . i 1 i _ . .. :._.... .. _ . . . . A .. • . Cost of other fully depreciated assets still In use. S Total depreciation I. LEASED. LOANED,OR RENTED PROPERTY (Furriiture,Signs,Etc.) (Declare Property Owned By Others Here.) Die you have in your possession on January 1st any leased,loaned,rented machinery,equipment,or furniture,fixtures, signs, vending mac`.ines,etc.? ❑ YES O NO If yes,list below showing description of this property and name and address of owners. kame and Address of Owner/Lessor Description Model/Sinai No. Veer Current Coil or Year installed Total Veariy Rent nog. GSA List Price • Plant furnish details of purchase or maintenance options. J. PURCHASER'S STATEMENT List names and add I purchasers of oil and gas products.Attach separate sheet it necessary. Name Add,ns . Quantity Permian Corporation - Oil • P:O, Box 1183, Houston, TX 77251 1751.47 NGPL - Gas P.O. Box 1208, Lombard, ILL 60148 47,566 K. DECLARATION THIS RETURN IS SUBJECT TO AUDIT. . '1 declare,under penalty of perjury In the second degree,that this schedule,together with any accompanying exhibits or statements,has been examined by mw and to the best of my knowledge,Information,and belief,sets forth a full and complete list of all taxable personal property owned by me or in my posses• sio,, or under my control, located in this county in Colorado on the assessment date of this year:that such property has been reasonably described and Its web,fairly represented;and that no attempt has been glado to dead this assessor as to its age,quality,guenthy or value.•' CRS 39.610712) SIGNATURE OF OWNER OA AGENT • rte-- NAME OFOWNER Itiycirtfoc TN L eritri y (Ofp DATE 4-1- VV ^r crcr• n- I(1'., . Ilr L, . n..-< • PIIONF-NI ItifFR _.3(.3'1221_sa97o __ SURFACE EQUIPMENT LIST JOSEF 112-8 SW/4N8/4 of Section 8, Township 10 North, Range 61 West American 160 Pumpjack 8-1/2 x 10 CMA Ajax Engine (not funning - cracked cyl.) rt,4 ? 4 10' x 10' Engine House with all windows broken out 4' x 15' (Approx) Horizontal Heater-Treater 30" x 10' Gas Separator 15' x 1S' (Approx) Treater House 1 - 300 STB Stock Tank Note: All equipment listed is used. Date of installation is unknown. Installed cost is unknown as Petrocarbon was not installer but rather purchased it after it was installed. t4LLL LUUhlY # SStSSURe5 FILE ; OIL AND GAS $ .OV g , 915 10TH STREET REAL AND PERSONAL F 'ERTY Assessment Date Due Date G1kEt L EY, CO 81)631 DECLARATION SCHEDULE January• EI 1J County • CONFIDENTIAL DATA 1 April 15 MAIL TO COUNTY ASSESSOR YOU MUST FILE EVERY YEAR REGARDLESS IF-ANY ADDITIONS OR DELETIONS WERE MADE. B.A.CODE T.A.CODE SCHEDULE NUMBER CHANGE OF NAME AND/OR ADDRESS 51311 120u 00d20T A. NAME AND ADDRESS(INDICATE ANY CHANGES) yPETRGCAANC IJN ENERGY con DO NOT USE - FOR ASSESSOR ONLY •1 8A$N Cit Code Description Acres Actual Value % As Value s 10795 N 9ELLLVYEH •AVE 7110 Primary nod. $ 87h$ 1.[TY'lETtlh �'y . .�1 , 11 7120 Secondary Prod_ 75 LOCATION OF PROPERTIES IINDICATEIINDICATE ANY CHANGES OR ADDITIONS) 72- 1-r^Pl"ovemanu- ---- _ 2g s(a5C4 ' 61:•14 al 7{ mum," — 29 ` i • TOTALS $ $ r3',ll :.., RECEIVED APPROVED LEASE NAME OR LEGAL DESCRIPTION COMPLETED ABSTRACT CHGS. Bashor 1-8, Jupiter Field r , LATE FILING PENALTY APPLIED YES O NO[] '' Br Ttiie Euiine'si Started A�29/M3pe of Product or Service 011 S Gas fin CountyjWeld Corp.® Partnership❑ Individual 0 Other ❑ • STATUS OF PROPERTY 'Please Check the Appropriate•Box) •. 1 Name and Address of Previous Owners: ❑NEW BUSINESS OR II NEW OWNER(S)(You MUST ATTACH,complete itemized listing of all your properly ( 1. Is this the first return? ❑ Yes ❑ No ••:(: 5i.)Was the Well producing in 19847 LI Yes )IX1 No C. INVENTORY OF WELLS . Total No.Wells • I Indicate Whether Well No., . TYPO Depth Year Drilled . .1, 1(io Arai .44... . s,2**. .. • Total o cis. '' f-1� "1`y+— 1111'Btto? 1.8 01 ______7553' 1980 "�O6 % Parttor of theta 1 List Fractional Interest of (] •Owner of the Leasehold Operator WI 75 % ❑Owner of the Lend . PLEASE INDICATE THE LIFE OF THE OIL AND GAS RESERVE IN YEARS UNDER THE CURRENT PRODUCTION RATE YRS. D. PRODUCTION REPORT FOR PREVIOUS YEAR. - Furnish primary production in section D-1 and secondary production in section D-2 D1. PRIMARY PRODUCTION OR RECOVERY ' . . . Tom Trsmporled from Ro I y- Iv red Y It Detl erne . , produced.'ed sad Y: �i¢ ze d g- g Total Taxable premlwa unsold •i� a i y s r Net ) ,,a:71,19,61,..r (p) IBI ICI xe�bi�on (E xe9�S31ont fa s C,O(or E) of - Well No. Oil l5bl.) 3672.82 3672.82 —0— —0— —0— 3672.82 $ 13. 18 /bbl • Gas (MCF) 67808 67808 —0— —0— —0— _fi7flOR $ 77/MCF t. Well No, Oil MK) • $ /bbl Gas (MCFI $ /MCF Well No. Oil (Ubi:) — $ /bbl Gas (MCF) $ /MCF 02. SECONDARY,TERTIARY OR RECYCLING METHODS OF PRODUCTION OR RECOVERY Well No. Oil IBbI.) $ /bbl Gas (MCF) $ /MCF Well No. Oil (Bbl.) --- — -- $ /bbl Gas (MCFI $ /MCF Wall No. Oil (Bbl.) $ /bbl t Gas (MCF) $ /MCF `03; METHOD OF SECONDARY, TERTIARY OR RECYCLING RECOVERY; (i.e.water injection,CO2 injection,etc.). 1WNl No. Well No , l' I: .. Well No. E. ASSESSMENT EXEMPTIONS REQUEST: (Attach separate sheet if necessary.) Exemptions are limited to the fractional interest owned by the Federal Government,the State of Colorado,counties,cities,towns,municipal corporations,tribal councils or other government organizations within the State of Colorado. Name of Government • Fractional Lease No.& Legal Description 'Organisation Owning Interest Address Owned I ' Total Productions --,_-. - [Exempts -, i linable'-------- —__-- IS/Barrel or MCFs List below or attach a separate sheet listi 'uildings,fixtures and leasehold improvements )strutted or installed the previous year. This. list shall include the description and focat...t of the property, the date of installation, the _.iginal installed cost, and any additions since original installation. . suildiggs,fixtures and Leasehold improvements Description and Location , Dale of Installed Cost Additions Since Original installation Installation Gas Lift & Fittings 3-5/86 --11-0776-0----- G. LISTING OF PERSONAL PROPERTY Furnish a complete listing of all property.Additions and deletions may be listed if a complete listing has been previously filed with the assessor. item Description Model or , Year Oats Acquired Original Estimated No. Capacity Ole. New Used Installed Cost Estimate Remaining I Physical ln Useful Life Ill List Personal Property acquired during previous year.(Attach se aarate sheet if necessary_) In Years L . J2� ist Personal ProperlYsold,traded.or permanently disposed of durir i pfeylo�lsyear_(Attach seerate sheet if necessary.) 1 T . _ . (3) List ALL Mobile Egi pment. Attach separate sheet if necessary. `i NOTE: The cost,description and year acquired data must be furnished above for those fully depreciated assets still in use. R. DEPRECIATION SCHEDULE (Furnish Information or Attach most current Copy of Federal Depreciation Schedule) a. Group and guideline class b. Date c Cost or d. Depreciation S. Method o/ I. Life or •a. Depreciation for or description of property acquired other basis allowed allowable computing rate this year In prier years depreciation S Cost of other fully depreciated assets still in use. $ ! Total depreciation I. LEASED,LOANED,OR RENTED PROPERTY (Furniture,Signs, Etc.) (Declare Property Owned By Others Here.) Did you have in your possession on January 1st any leased,loaned,rented machinery,equipment,or furniture,fixtures,signs,vending machines,etc.? 0 YES O NO II yes, list below showing description of this property and name and address of owners. { Name end Address of Owner/Lessor Description Model/Serial No. Yee' Current Cost or Year Installed Total Yearly Rent Mfg. GSA List Price • fl -- . ' Please furnish details of purchase or maintenance options. J. PURCHASER'S STATEMENT List names end addresses of purchasers of oil and gas products.Attach separate sheet If necessary. Name Address Qu ntlty pAsamera 011 U.S. Inc. Pp. O. Box j1i1�8, Denver, CO 80201 4 }--- -221{83.87 130 Nature's Ea Pilti lane Co. of America P B°ox-1Z08i romfar Lt— I B 63818• 'C'e---- - K. DECLARATION THIS RETURN IS SUBJECT TO AUDIT. "I declare,under penalty of perjury in the second degree,that this schedule,together with any accompanying exhibits or statements.hes been examined by me end to the best of my knowledge.Information,and liel,sets forth a full end complete list of ell taxable personal property owned by me or in my posses. Non, or under my control, located in this coup in o redo on the essesunent date of this year;that such property has been reasonably deeorlbed end its value fairly represented:and that no attempt bee a e to mislead the assessor as to Its age,quality,quantity or value." CRS 39-5;10711) . SIGNATURE OF OWNER OR AGE T 1 NAME OF OWNER NOW ETROCARBON ENERGY CORPORATION DAT 4/15/87 PRINT NAME OF PERSON SIGNING Kevin Powers PHONE NUMBER {303) z}71-44UU XX001 09/11/86 V J ' PETROCARBDN ENERGY CORPORATION LITTLETON, C040RAD0 STATEMENT 8 80127 84-0877015 piFOR TAX YEAR ENDED: 12-31-85 TAX DEPRECIATION I DESCRIPTION COST OR DATE ACRS DEP ALLOW RATE DEPREC.I OF PROPERTY BASIS ACQUIRED DESCRIP PRIOR YRS METH LIFE THIS YR LWE-OSAGE 1, 796. 1983 5-YR 631 . PRE LESS PR . ITC REDUCT . -90 . 358 . N 11 LWE-FP 65 ,000 . 1983 5-YR 22 , 848 . PRE LESS PR . ITC REDUCT. -3 , 250 . 12 , 968 . N LWE-OSAGE 18, 948 . 1984 5-YR IILESS PR . ITC REDUCT. _947 . 2,700 . PRE 3 , 960 . N LWE-OSAGE 21, 462 . 1985 5-YR PRE 3 ,05B . X LESS ITC REDUCT -1, 073 . X LWE-FREDONIA/BERCK 78, 411 . 1985 5-YR I LESS ITC REDUCT -3 , 921 . PRE 11, 173 . X X LWE-FREOONIA/BERCK 98, 560 . 1985 5-YR PRE 14 , 045 . X LESS ITC REDUCT -4 ;928 . X LWE-GONZALES 2 , 587 . 1985 5-YR LESS ITC REDUCT -129. PRE 369 .X X LWE-SUNBURST 3 , 350 . 1985 5-YR LESS ITC REDUCT -168 . PRE 477 .X X I -1 LWE-OSAGE PLC 1, 495 , 413 . 1985 5-YR LESS ITC REDUCT PRE 224 , 158 .X , 025 . X LWE OSAGE PLC 2 , 304 . 1985 • 5-YR LESS ITO REDUCT -115 . PRE 328 .X I X LWE-FLORENCE 150 . 1985 5-YR LWE-JUPITER PRE 23 . X 21, 057 . 1985 5-YR PRE 2 , 996 .X LESS ITC REDUCT -1, 051 . I LWE-JUPITER X 43 , 000 . 1985 5-YR PRE 6, 450 . X LWE 850 . 1985 5-YR LWE PRE 128 .X 459 3 , 219. 1985 5-YR PRE 459 . X I LESS ITC REDUCT -161 . X TOTAL 1 , 839, 219 . 26, 179 . 280 , 950 . II II II • I • • • STILT 8 t5kito Floe rt7;E S SORB s ICE State of Colorado 1987 . 4.91:5 IOTH':STREET r • OIL AND GAS GREEtEY•: CC 60631 flrAL AND PERSONAL PROPERTY Assessment Date Due Date DECLARATION SCHEDULE January 1 April 15 MAIL TO COUNTY ASSESSOR • • YOU MUST FILE EVERY YEAR REGARDLESS IF ANY ADDITIONS OR DELETIONS WERE MADE. B.A. CODE. : TA CODE SCHEDULE NUMBER . CHANGE OF NAME AND/OR ADDRESS •51f11 1200 :; ':0006161 A. NAME AND ADDRESS(INDICATE ANY CHANGES( ; :. PETROCARBCII ENERGY CCRP DO_ NOT USE - FOR ASSESSOR ONLY 8ASHQR 8-8 Code Description Acres Actual Value % As Value . 10795: N BELL El/ IEN AVE ?1! Primary Prod. _ $ 8i%$ LITTLETON , :to :' .: 80121 • 7120.Secondary hod. i5 LOCATION OF PROPERTIES(INDICATE ANY CHANGES OR ADDITIONS) 7� Improvements 29 SE4NE4 8 10 61 74_e1isjFtflna 29 TOTALS $ $ #Ak.“ , RECEIVED APPROVED LEASE NAME OR LEGAL DESCRIPTION 't • ' COMPLETED ABSTRACT CHGS. BaBhOr 8-6, Jupiter Field ' . . LATE FILING PENALTY APPLIED YES O NO0 B. Date Business Steried4/29/8 ype of Product or Service nil. & Gas lin County) We LSi_Corp.iii Partnership O Individual O Other E] STATUS OF PROPERTY (Please Check the Appropriate Baal::: Name and Address of Previous Owners: 17 NEW BUSINESS OR O NEW OWNER(S)IYou MUST ATTACH a 1omplete Itemized listing of•11 your property. L, Is t,his the first return? O Yes O No. . . 2.'Was the Well producing in 19847 El Yes fa No C. INVENTORY OF WELLS Total No.yells r Indicate Whethsi' ': well Ni; TYPO Depth Year Drilled _., ,..:. 1 ''. S I You Me: AA p ( Total No.Acres. lase: Befltor O 8 i : 160 Dd. :torof)hsL, h•• i 011 Zbnn' 198 ' Lis.; Fractip�lpl 1p1eresl,of ❑Own r of the Leelehol7. �' Operator'W I 1 Y•LO % D Owner of the Land . PLEASE INDICATE THE LIFE OF THE OIL AND GAS RESERVE IN YEARS UNDER THE CURRENT PRODUCTION RATE YRS. i. D. PRODUCTION REPORT FOR PREVI0US:YEAR: Furnish:primary production in section D-1 and secondary production in section D-2 D1. PRIMARY PRODUCTION OR RECOVERY::::: : '. ... Told lgnsperpd from Ro al1r Ir rW qo It Dellvarea pnr gee •� : � Produced - iold pnmbas unsal0 ��C•rrn¢n1Y Ai� �•uct OntY Tot•1 7•x•el• ►rice r Wqqe1 Ist gad . •: IAI j8) 1¢1 .. c7i�on IErxc4ti rot C�Olor 11 or��I 1prlc• well rip r D1 (Bbl.1 5195.61.•: 51 s46 LL 11 a Gei'(MCF) ; Q,.'.,. : -0- '. -q- 5145_41 $ 14.51 /bbl 16305 14305 0 -D- -D- 16305 $ ,72 /MCF ' Well No • : it tB61.) ::4t "'i $ /bbl Gad (MCE) • $ /MCF I. well No Oil IBS.)_ _ _ $ /bbl Gas (MCF► 5195 •lo l it 14 .51 �e .en5= Gi�Ab5 $ /MCF_ D2. SECONDARY,TERTIARY OR RECYCLING METHOD Well No. Oil (Bbl.) 1b3O5 ire .-7a ie. .515 = lo, aia- $ /bbl Gas (MCF) -1� X31• : . $ /MCF i Well No. Oil (BM.) . $ /bbl Is, Gas (MCF) $ /MCF I Well No.' OII (Bbl.) • • " -'. _ $ /bbl l Gas (MCF) $ /MCF_ t03. METHOD OF SECONDARY,TERTIARY OR RECYCLI 1 �4 r aLl o O,g�� etc.). • Leell No. - A5,�1ci9 .78 I: E. ASSESSMENT EXEMPTIONS REQUEST: (Attach separ I•. Exemptions are limited to the tractional interest owned by II �' ( s,cities,towns,municipal corporations,tribal councils or outer government organizatio tl 5 Iq I 18 Name of Gomm 1a 5,rl V$ �F- .O,BL96 c _ • N _ Fractional L.ease No.8 Legal Description Organization Owning Ins t Owned I'. LIS!IIVIi OF I/tAL NHONtit I Y List below or attach a separate sheet list' ildings, fixtures and leasehold improvements strutted or installed the previous year. This list shall Include the description and location of the property, the date of installation, the original installed cost, and any additions since original installation. aulldlnµ,Fixtures and Leasehold Improvements Description and Location Date of Installed Cost Additions since Original Installation Installation Pumping Unit, Tank Battery, Tubing Rods 1986 56581 .54 _p_a__Lsgse & Well Egtiipnlent G. LISTING OF PERSONAL PROPERTY Ii Y Furnish a complete listing of all property.Additions and deletions may be listed if a complete listing has been previously filed with the assessor. item Model or Vas, Date Acquired Original Estimated No. Descrlpllon Capacity MI/. New I Used Installed Cost Estimate Physical URemaining seful Life (1) List Personal Property acquired during previous year. (Attach se 3arate sheet if necessary.) Condition in veers (2) List Personal Property_sold,traded,or permanently disposed of during2revious year. (Attach separate sheet if necessary.) T (3) List ALL Mobile Equipment. Attach separate sheet if necessar . r . { NOTE: The cost, description and year acquired data must be furnished above for those fully depreciated assets still in use. N. DEPRECIATION SCHEDULE (Furnish Information or Attach most current Copy of Federal Depreciation Schedule) •. Group and guideline class e. Data a. Coal or d. Depreciation -.title: L Lire or g. Oepnots/ion for or description o/property acquired other beds allowed or allowable computing nle this year . In prior years depreciation . . • i ' $ ICost of other fully depreciated assets still in use. $ Total depreciation I. LEASED, LOANED,OR RENTED PROPERTY (Furniture,Signs, Etc.) (Declare Property Owned By Others Here.) Did you have in your possession on January 1st any leased, loaned,rented machinery,equipment, or furniture, fixtures, signs,vending '4I machines,etc.? D YES Q NO If yes,list below showing description of this property and name and address of owners. ly Name and Address of Owner/Lessor Description Model/Serial No. Yea r List Price Year installed Total Yearly Rent I t l' Please furnish details of purchase or maintenance options. • • J. PURCHASER'S STATEMENT I. List names end addresses of purchasers of oil and gas products. Attach sep sheet if necessary. Name Address Quantity Asamera Oil U.S. Inc. P. 0. Box 118 Denver, CO 80201 3111.03 BO Permian GS tyoratlon P.�O—Box-H8j�Boastonj fl-33251— l9g--3-39-g0-- Natural Gas Pipgline Co.of Amerira P. 0. Rox.1208, Lombard, IL 60148 6305 MGF K. DECLARATION THIS RETURN IS SUBJECT TO AUDIT. "1 declare,under penalty of perjury in the second degree,that this schedule,together with any accompanying exhibits or statements,has been examined by me and to the best of my knowledge,Informetio and bell -a forth a full and complete list of all taxable personal property owned by me or In my posses- sion, or under my control, located in this eoun y In Col•red. on the assessment date of this year;that such property has been reasonably described and Its value fairly represented:and that no attempt It been m •a t mislead the assessor as to Its age,quality,quantity or value." CRS 39-5107121 ' SIGNATURE OF OWNER OR AGENT /�s . • .--1 w- . NAME OF OWNER XIN0091 PETROCARBON ENERG}LLORPORATION DATE 4/15/81 PRINT NAME OF PERSON SIGNING Rev n Powers PHONE NUMBER (303) 972-4400 %X001 09/11/86 ll PETROCARBON ENERGY CORPORATION LITTLETON, COLORADO STATEMENT 8 80127 84-0877015 IIFOR TAX YEAR ENDED: 12-31-85 TAX DEPRECIATION U DESCRIPTION COST OR DATE ACRS DEP ALLOW RATE DEPREC.I OF PROPERTY BASIS ACQUIRED DESCRIP PRIOR YRS METH LIFE THIS YR LWE-OSAGE 1,796. 1983 5-YR 631 . PRE LESS PR . ITC REDUCT. -90 . 358 . N LWE-FP 65 , 000 . 1983 5-YR 22 , 848 . PRE LESS PR . ITC REDUCT. -3 , 250 . 12 , 968 . N 1 LWE-OSAGE 18, 948 . 1984 5-YR LESS PR . ITC REDUCT. -947 2 , 700 . PRE 3 , 960 . N ll LWE-OSAGE 21, 462 . 1985 5-YR PRE 3 ,058 . X LESS ITC REDUCT -1,073 . X LWE-FREDONIA/BERCK 78, 411. 1985 5-YR II -3 , 921.X LESS ITC REDUCT PRE 11 , 173 .X• LWE-FREDONIA/BERCK 98, 560 . 1985 5-YR PRE 14 , 045 .X LESS ITC REDUCT -4, 928 . X LWE-GONZALES 2 , 587 . 1985 5-YR LESS ITC REDUCT -129. PRE 369 . X X LWE-SUNBURST 3 , 350 . 1985 5-YR LESS ITC REDUCT -168 . PRE 477 • X X I LWE-OSAGE PLC 1, 495 , 413 . 1985 5-YR PRE 224 , 158 . X il LESS ITC REDUCT -1, 025 . LWE OSAGE PLC X 2 , 304 . 1985 • 5-YR PRE 328 .X ILESS ITC REDUCT -115 . LWE-FLORENCE X 150 . 1985 5-YR PRE 23 . X LWE-JUPITER 21, 027 . 1985 5-YR PRE LESS ITC REDUCT -1, 051 2 , 996 . X . X 1 LWE-JUPITER 43, 000 . 1985 5-YR PRE LWE 6, 450 .X 850 . 1985 5-YR PRE 128 . X LWE 3 ,219 . 1985 5-YR PRE LESS ITC REDUCT 459 . X I -161 . X I TOTAL 1 , 839, 219 . 26, 179 . 280 , 950 . • I1 I II II STMT . 8 k• Iskti effifillia 9 ee tliSSORIS •F10E 1 OIL AND GAL.rldie ill utrrU1JU Dirt : • 1 15 iQTHSTREET915E 1O0T a SC P-0631REAL AND PERSONAL Ph £RTY Assessment Date Due Date . DECLARATION SCHEDULE i - 11 January U County CONFIDENTIAL DATA 1 April 15 MAIL TO COUNTY ASSESSOR • YOU MUST FILE EVERY YEAR REGARDLESS IF ANY ADDITIONS OF DELETIONS WERE MADE. B.A.CODE - T.A.CODE SCHEDULE NUMBER CHANGE OF NAME AND/OR ADDRESS 51311 1200 0o0i61o6 A. NAME AND ADDRESS(INDICATE ANY CHANGES) PETROCARBCN ENER4Y ?AAP DO NOT USE - FOR ASSESSOR ONLY 8ASH0R 8-11 Code Description Acres Actual Value % As Value 110795 H BULI:LEVIi?11 `Avg r 7110 Primary Prod. S 87%$ LETTLEtOhl 1.ti co12't 7120 Secondary Prod 75 LOCATION OF PROPERTIES(INDICATE ANY CHANGES OR ADDITIONS) 72 Improvements 29 SE4NE4 11 10 61 • 74Marl 29 • Ir' ' • TOTALS $ $ _ • i(ll!)e RECEIVED APPROVED LEASE NAME OR LEGAL DESCRIPTION COMPLETED ABSTRACT CHGS. Bashor 8-171 Jupiter Field LATE FILING PENALTY APPLIED YES iiiNOD.-q-- B. Data Business Started 4/29/I1ape of Product or Service011 6 Gas On County) Weld Corp.In Partnership D Individual O Other El STATUS OF PROPERTY Please Check the A Name and Address of Previous Owners ( ppropdeta Box) ©NEW BUSINESS OR O NEW OWNERISI(You MUST ATTACH a complete itemized listing of ell your property. 1. Is thus the first return? O Yee [El] No i 2. Was the well producing in 1984? O Yes 4N No C. INVENTORY OF WELLS Total No.Wells - r' Indicate Whether Wall No. 1 _ Type Depth Veer Drilled you Ares Total Na.Acres ❑pperator of the Lease Bash?r 8.-17_1•' ❑owner of tit Leasehold • List Fractional Interest of h • Operator ' % ❑Owner of the Land • PLEASE INDICATE THE LIFE OF THE OIL AND GAS RESERVE IN YEARS UNDER THE CURRENT PRODUCTION RATE YRS 0. PRODUCTION REPORT FOR PREVIOUS YEAR Furnish primary production in section D-1 and secondary production In section D-: D1. PRIMARY PRODUCTION OR RECOVERY .Toter . Sold pr mien d sold RoyailY Re r•red noY�IIY 0a1lrered Total"fixable �lvu U4 Produead Transported s ed fro as n11Y Aa r00 tie ej et e e I tie :i . . (AI CB) (CI xe)bit on (Exc9�e tin) (Ba Gr) of��'IA glee 1 L 1 1 ii or E) a1 Well No. Oil (EMI.) $ /bbl Gas IMCF) WELL SHUT-IN FOR 198E $ /MCF h. Well No. Oil (Bbl.) ;ii s $ /bbl �f; Gas IMCF) $ /MCF Well No. Oil (8M`) $ /bbl Gas (MCF) • $ /MCF _ -: 02.SECONDARY,TERTIARY OR RECYCLING METHODS OF PRODUCTION OR RECOVERY kWell No. Oil (BM.) $ /bbl Gas (MCF) $ /MCF L° Well No. Oil (Bbl.) $ AAA Gas (MCF). $ /MCF Well No. Oil IBbl.) - . $ /bbl Gas IMCF) $ /MCF 03. METHOD OF SECONDARY, TERTIARY OR RECYCLING RECOVERY, (i.e.water injection, CO2 injection,etc.). roll No. Wall No. Wall No. E. ASSESSMENT EXEMPTIONS REQUEST: (Attach separate sheet If necessary.) • Exemptions are limited to the fractional interest owned by the Federal Government,the State of Colorado,counties,cities,towns,municipal corporations, tribal councils or other government organizations within the State of Colorado. Name of Government Fractional Lease No.I Legal Description Oreanleatlon Owning in Address Owned Total Production: , 'Exempt: r 'Taxable It/Barrel or MCP: IList below or attach a sepal ate sheet list JUIldlllgs, Ilxtules allu leascuulu IInpiuveuien )IlWtWUCLUU UI Illstalieu me pi evluus yew. ,fns list shall include the description and loci t of the property, die date of installation. th 'gtnat Installed cost, and any additions since original installation. lulldlng,.Fixtures and Leasehold Improvements Description and Location Ostt of Additions Since Original Imlalla allan Installed Cost Installation t G. LISTING OF PERSONAL PROPERTY Furnish a complete listing of all property.Additions and deletions maybe listed if a complete listing has been previously filed with the assessor. Item Description Model or Year _Dab Acquired Original Estimated No. Capacity Mfg. — Estimate New 1 Used r Installed Cost Physical Useful Life S. (1) List Personal Properly acquired during previous year. (Attach sef _1tifnecessary.)arate sh Condmon Urn v�nr° — 1— _ 21_List Personal Property sold traded or ermanently disposed of during previousyear__lAttach separate sheet if necessary.) (3) List ALL Mobile_Equipment. Attach separate sheet if necessar . NOTE: The cost, description and year acquired data must be furnished above for those fully depreciated assets still in use. I H. DEPRECIATION SCHEDULE (Furnish Information or Attach most current Copy of Federal Depreciation Schedule) a. Group and guideline class b. Date c. Cost or d. Depreciation e. Method of L Life or e. Depreciation for or description of property acquired other basis allowed or allowable computing rate this year In prior years depreciation • S 1 Cost of other fully depreciated assets still in use. $ Total depreciation I. LEASED, LOANED,OR RENTED PROPERTY (Furniture,Signs, Etc.) (Declare Property Owned By Others Here.) Did you have in your possession on January 1st any leased,loaned,rented machinery, equipment, or furniture, fixtures, signs, vending machines,etc.? ❑ YES ❑ NO If yes,list below showing description of this property and name and address of owners. Name and Address of Owner/Lessor Description Model/serial No, Year current Cost or Year Installed Total Yearly silent' Mfg. GSA List Price Please furnish details of purchase or maintenance options. J. PURCHASER'S STATEMENT List names and addresses of purchasers of oil and gas products. Attach separate sheet if necessary. Name Address Quantity K. DECLARATION THIS RETURN IS SUBJECT TO AUDIT. "I declare,under penalty of perjury in the second degree,that this schedule,together with any accompanying exhibits or statements,het been examined by me and to the best of my knowledge,informatio and lief,sets forth a full and complete list of all taxable personal property owned by ine or in my posses. lion, or under my control, located in this coun in of redo on the assessment date of this year;that such property has been reasonably described and its pies fairly represented;and that no attempt a bee a e to mislead the assessor as to its age,quality,quantity or value." CRS 395-10712) SIGNATURE OF OWNER OR AGENT C'( 4Ai.p.a------"" I. NAME OF OWNER PFTROCARRON_ NERG)_CDRE11RATIOu. DATE 4/15/87 . Kevin Powers (303j972-2970 PERSON SIGNING PHONE NUMBER i PRINT NAME OF 4 PLEASE COMPLETE,SIGN AND RETURN TO THE ASSESSOR ON OR BEFORE APRIL 16 r. V11J , - • REAL AND PERSONAL PROPER Assessment Date Due Date DECLARATION SCHEDULE January 1 April 15 WEl 11 County t CONFIDENTIAL DATA p NAIL TO COUNTY ASSESSOR YOU MUST FILE EVERY YEAR REGARDLESS IF ANY ADDITIONS OR DELETIONS WERE MADE. B.A.CODE T.A.CODE SCHEDULE NUMBER CHANGE OF NAME AND/OR ADDRESS . 51311 . 1200 A, NAME AND ADDRESS(INDICATE ANY CHANGES) PETROCARBON ENERGY CORPORATION DO NOT USE - FOR ASSESSOR ONLY Susie 1/11-9 .' • Code Description Acre, Actual Value % Arrested Value P.O. Box 622029 ' 7110 Primary Prod. S 87%IS Li:tieton, Colorado 80162-2029 ` 7120 Secondary Prod 75 .. . . i r . • ._... ._.._.. .. . 72 Improvements'. •- 29 1..._- • LOCATION OF PROPERTIES(INDICATE ANY CHANGES OR ADDITIONS) - • . - _ _ - - NW,/4NW/4 of Section 9, TION, R61Y1 ' 7a_ 'UlD. r"t 29 . TOTALS $ S ___ -'44.11::::.-.:.•‘.......;..•• ' .:°"'•.•`•...... .'r ' ' ' RECEIVED APPROVED LEASE N.+.LUE OR LEGAL DESCRIPTION COMPLETED ABSTRACT OILS. Susie 1111-9/ LATE FILING PENALTY APPLIED P YES O NOE] B. •Dale tainew$ a1/29/82Typ,of Product or Serrie4il and Gas (in County) Weld Corp.Ci Partnership Individual Other Name and Address of Previous Owners: 'STATUS OF PROPERTY fit lease Check the Approrirlate Bon) .' . '' ' ' ' ❑NE')% BUSINESS OR jiNEW OWNERISIIYou MUST ATTACH acomplete itemized listingol all your property. I('F Oil Corp - New Sub ' 216 - 16th Street Mall, 11900 1 1. Is mils the first return?-D Yes El No _ _ Denver,CO tormir8028 C. INVENTORY OF WELLS — . _ ' Total Na. Ysell. ,. .M Indicate Whether • ' ' I Well No. Type Depth Year Drilled I l�T Xou Anr.s. . ., s . _ ..__. _: Total No. zees 80 jiOpersior of the Lease 11 9 011-end-Gee- 7330! —}981 IC List Fraerrn-4f Interest of IOwner of the Lnsehold Operator -. .. .79.63% DONner of the Land . • PLEASE INDICATE THE LIFE OF THE OIL AND GAS RESERVE IN YEARS UNDER THE CURRENT PRODUCTION RATE YRS. 0.•••PRODUCTION REPORT FOR PREVIOUS YEAR -Furnish primary production in section D-1 and secondary production in section D-2 Dl. PRIIW•;RY PRODUCTION OR RECOVERY _ Total Tn mperin Iron Ro al Y' Ir red 1toY 11 Dell ers Total Tax. . Aver 1aN Produced Sold ranspo untold rilash bn'Y Asdidual6e4I F prlce�ft'ellxud (A) 9 (�) v ill on — Eac4tle" (ea C'Dfor El or ;Irrd) Ice Well No. Oil (EMI.) 3706.27 3706.27 • 11 _ 3706.2] S17,96 /bbl Gas (MCF) 5820 5820 - 5820 S .24 /MCF Well No. Oil (BbI.) _ _ S /bbl Gas (MCFI S /MCF Well No. Oil (8W.) _ _ S /bbl Gas (MCF) $ /MCF D2. SECONDARY,TERTIARY OR RECYCLING METHODS OF PRODUCTION OR RECOVERY Well No. Oil (Bbl.1 $ /bbl Gas (MCF) S /MCF Well No. Oil (Bbl.) 1S /bbl Gas (MCF) S /MCF Well No. Oil (Bbl.) $ /bbl Gas (MCF) $ /MCF reit 03. METHOD OF SECONDARY,TERTIARY OR RECYCLING RECOVERY, (i.e. water injection,CO2 injection,etc.). No. Well No. Well No. E. ASSESSMENT EXEMPTIONS REOUEST: (Attach separate sheet if necessary] Exempr.icris are limited to the fractional interest owned by the,Federal Government,the State of Colorado,counties,cities,towns,municipal corpora-lions.tribal councils or other government organizations within the State of Colorado. Hama o1 Oowrnwent Fractional Lease No.II Legal Description Organization(twist's.In1.rul Addnu Inluesl Owned Total Pre diction; I Fnamplr IT.stable! IS/Barrel or MCY: List be o* or attach a separate sheet listing buil, t, loxmiss J1W lLJaaUUu, ....I,,„. ...,,,,, .. ... I lice Old;I include the description and location e : property, the date of installation, the origin stalled cost,and any additions since original installation. . Date of Installed Cost Additions Since Orlelnal S ulydimel,Fist d Leasehold Umprov.Manic On o eriptlen and Lotlon Installation Installation ATTACHED • • I is LISTING OF PERSONAL PROPERTY. y,.;I.j tc: • -- •" - -I • • urmish a complete listing of all property.Additions and deletions maybe listed if a complete listing has been previously filed with the assessor.' . Ile.m - Description • Modal or . Year Dale Aceulred Original Estimated Capacity ' Mtg. Intlallad Cost estimate Remaining New ' Used ►etime Useful Life Condition In Yon(1 L List Personal Property acquired during previous ear. (Attach separate sheet if necessary.) I ra f as amavunWdl ST spoon OOA RO >g0NALi YNA 9YAalO en.231TR3gORq et0 NDITAOD] ;„:4,41:• �hd_ ..+ass a_C.__1 —.� _. __ _ e ,2l Liss Personal Property sold,traded or permanently disposed of duringprevious year. (Attach separate sheet if necessary.) 1 (3:; Lit.. ALL Mobile Equipment. Attach separate sheet if necessary. NOTE: The cost, description and year acquired data must be furnished above for those fully depreciated assets still in use. H_ DEPRECIATION SCHEDULE (Furnish Information or Attach most current Copy of Federal Depreciation Schedule) — - a Grorai end guideline clan b. Dale o. Cod or' d. Depreciation a. Method of I. Life or • . a• Deprecldlon lot , allowed or allowable . computing tab . •'' ' this year _. --K saaedpuen el property __ ,acquired .m.r Oral. In prior yams depreciation - - . . ._.— _ __ __ . ... . _ .. ._ .. . . . .. . . . _ . i .. .. . ...n .. S . ,. •,. , r - Cost of other lolly depreciates:cossets still in use. $ Total depreciation I. 'LEASED, LOANED,OR RENTED PROPERTY (Furniture,Signs,Etc.) (Declare Property Owned By Others Here.) Did yct_ tree in your possession on January 1st any leased,loaned,rented machinery, equipment,or furniture, fixtures, signs,vending mact:ir .'t.etc.? 0 YES 0 NO II yes,list below showing description of this property and name and address of owners. Curre karma end Address of Owner/Lessor Description Model/Serial No. Year GSA nt 1 Y 1«r Year Installed Total Yearly Rent MI5• Please hna VI details of purchase or maintenance options. - J. IPL•F.C.1ASER'S STATEMENT lir: mama and addresses of purchasers of oil and gas products. Attach separate sheer it necessary. . Name Address Quantity Permian Corporation - Oil P.O, Box 1183, Houston, Texas 77251 3706.27 • NIP_L - Gas P.O. Box 1208, Lombard; iLL bU14B 5810 K. DECLARATION THIS RETURN IS SUBJECT TO AUDIT. . 'T Omelet under penalty of perjury In the second degree,that this schedule.together with any accompanying exhibits or statements,has been examined by rme and to the best of my knowledge.Inlormatiun,and belief.seta forth a full and complete list ol ell usable personal property owned by me or in my Posses- sir. o-under my control, located in this county in Colorado on the assessment dale of this year;that such property has been reasonably described and its wage body represented;and that no attempt hasbeen made�toflnideed the pressor as to its eve,quality,quantity or value." CRS 39-5.101(2) SIGIU.TLRE OF OWNER OR re LL . 11.-z- .,,,_---• �-� p NAME OF OWNER re Ayotn(6,,n cue rcf/ ,jo, e • DATE e' -7 '. SJ pryers MauF OF PERSON SIGNING_—WA,. KPaNI. (_LS tL,≤ PiIONE,Nl1MBER _3“4_97.2 - :J q 7 Cr SURFACE EQUIPMENT LIST SUSIE 11-9 NN/4NH/4 of Section 9, Township 10 North, Range 61 Nest Lufkin C 320 D-305-100 Pumpjack 8-1/2 x 10 CMA Ajax Engine 10' x 10' (Approx) Engine House 30" x 10' Gas Separator 4' x 25' Vertical Heater-Treater 15' x 15' (Approx) Treater house 2 - 300 STB Stock Tanks Note: All equipment listed is used. Date of installation is unknown. Installed coat is unknown as Petrocarbon was not installer but rather purchased it after it was installed. PETROCARBON ENERGY CORP. JUPITER PRODUCTION FOR Year, 1987 STATE PRODUCTION TAXES Well Name Barrels Oil Value MCF Oas Value Total Value = == == Bashor 1-8 1002. 18 $17,509.07 18833.00 6178.08 23687. 15 Bashor 8-8 2390.96 $42,747.70 6125.00 1402.67 44150.37 Bashor 8-17 2157.53 $40,333.61 9994.00 1538.47 41872.08✓ Anderson 777.66 $14,254.08 6159.00 1628.40 15882.48 ✓ Banzhaf 623.56 $11,240.90 12195.00 3640.38 14881.28✓ Josey 1751 .47 $32,217.97 47566.00 13377. 11 45595.08v' Susie 3706.27 $66,579.62 5820.00 1423.50 68003. 12✓ Mae 187.31 $3,309.77 0.00 0.00 3309.77✓ 12596.94 $228, 192.72 106692 $29, 188.61 $257,381 .33 • IIIINI1 0410 I'l..O1•«I Iw PA-A� S-v 6,r _____ .i��til�w _ _-- - Cdf., (31017.4.41%. t. ,9d V. ,.V�.,. . +.E Sie-.4. Q� ilk pu.p_1a1 _ D t 7/a.l _ i' ._.. ? ' 14.41 . h� r-ill ri LCA_ I 11 2 1 go.O,4, 1-Sc _ 4 . O1 401 ' 1 I 3 I faof'e) ..q''V . _. _.. 49 al Ii 31 - I 4 lQ 4 ' f •t•iP i-i1 499 00 100 5 L1ti•1s�1,1 7 14S I' , / 033 1 4 114 4 794 s I 8 ' S .. 4Y 4'1 - 444 ! IIYY8 9 0 to 2 7' f l _ of ` ..1- 12 3 13 4 14 5 M Ott D.411LevA.T1 — - .. _ 15 6 _....---- 16 1 gQs111+t, I-Q 3 - _s9 4' 9l1 11 8 Lgo11,.O, 1-1 ��r ' I _ '9 ' v i• ? ✓ 18 0 20 1 21 2 113 1 t r 3 '+9 1 if 22 3 23 / 24 5 25 6 26 1 21 8 28 9 29 - ---- ---- - - -. 3_ ... _ 30 1 31 - 2 32 _. . 33 4 34 5 35 6 36 7 _ 31 8 38 , 9 39 0 40 I - _. II 2 42 3 13 I 44 5 45 5 46 1 41 3 18 3 49 1 II 50 I •. st ilegostip OFFICE OF WELD COUNTY ASSESSOR 1 PHLNIE 003)31+4104 E1LT 4266 91610TH Shan GREELEY,COLORADO 60031 October 15, 1990 COLORADO CERTIFIED MAIL Misahar Investments, Inc. 475 Seventeenth Street Suite 1220 Denver, CO 80202 Gentlemen: We have reviewed the reporting of Weld County ad valorem assessment information for production years 1986 and 1987 on properties that Misahar Investments, Inc. (Misahar) assumed from Petrocarbon Energy Corporation effective June 22, 1989. We have been unable to contact the principals of Petrocarbon Energy; therefore, we are directing this inquiry to Misahar as the current operator and responsible party. As a result of the procedures described below, we are proposing an increase in taxable value of $153 , 948 for the 1986 and 1987 production years. These proposed adjustments are preliminary, however, and may be adjusted subsequent to your response. Our procedures included comparing oil/gas volumes and values reported for ad valorem assessment to similar data reported to the Colorado Oil & Gas Conservation Commission (COGCC) . Specifically, reported ad valorem volumes were compared to COGCC annual oil and gas statistics compiled from monthly production/sales reports filed by operators (OGCC Form 7) . Similarly, ad valorem volumes and values were compared to computer generated annual summaries of Oil and Gas Conservation Levy reports filed quarterly by operators and/or purchasers (OGCC Form 8) . We documented selected historical data from wells for which significant volume and/or value discrepancies were identified. ?SPORT FORMAT Wells with volume/value discrepancies resulting from the above procedures are identified on Schedule 1; estimated additional taxable value is computed on Schedule 2. Schedules 1 and 2 are master schedules supported by detailed well analyses for eaoh " t ' applicable year. 4 , i +tpi I+4:t 4p ,:.r.i 5".7�J.i' �� iM�',7't':id Y; .., i•F i0'. 1Misahar Investments Page Two October 15, 1990 Schedule 1--Master Schedule Of Well Data/History This schedule includes selected biographical data for all wells with volume/value discrepancies during one or both of the production years 1986 and 1987. In the case of leases with multiple wells, the legal description is the location of the initial well. Schedule 1 information was compiled exclusively from COGCC files. Schedule 2--Master Schedule of Taxable Value Adjustments This analysis is a summary of estimated increases in taxable value resulting from volume/value discrepancies for all wells during the production years 1986--1987 . The "Estimated Taxable Value Adjustment" is computed as the "Gross Value Increase" reduced only by "12 . 5% of Increase" , since there was no exempt royalty applicable to the exception wells. Schedule 2-A--Crude Oil Sales Volumes/Values Schedules 2-B--Natural Gas Sales Volumes/Values These schedules are detailed analyses of volume/value discrepancies, supporting Schedule 2 , for each of the production years reviewed. There were multiple COGCC Form 8 reporters for many leases. If applicable, we have indicated each Form 8 reporter and subtotaled the volumes/values prior to a comparison to your ad valorem reporting. The basis for all estimated taxable value increases is the difference between the COGCC Form 8 gross product value and the gross value reported to Weld County for ad valorem assessment. If you do not agree with proposed adjustments, please provide purchaser statements or other documentation supporting your ad valorem reporting. • VELVET 21-17 We noted that Petrocarbon filed OGCC Form 10 on October 12, 1987 indicating shut-in status for the Velvet 21-17, located in ,e, , . . 1 Misahar Investments, Inc. Page Three October 15, 1990 the NENW quarter, Section 17, Township 10 North, Range 61 West. If possible, please indicate when the well was initially shut in and confirm that there were no sales from this well from January, 1986 through 1989 . CONCLUSION Please review your records relating to the reporting and computation of Weld County ad valorem tax for the 1986 and 1987 production years. Please respond to our office within the next thirty (30) days. We will assist you in making the necessary adjustments based on your response. A Special Notice of Valuation for each tax year will be issued in approximately thirty days. Any response you submit will be considered in the computation of adjusted taxable values and preparation of the Special Notice. You may contact me at (303) 356-4000, extension 4256, should you require additional information. Please direct questions regarding specific wells within this inquiry to Chuck Norman of our minerals department in Denver at (303) 234-1137 . Respectfully, _ i'''CHI 1 a-rt .1:-/-5:-r---r---Ls% --K) Richard W. Keirnes Weld County Assessor SCHEDULE 2-A PAGE 1 OF 1 • PETROCARBON ENERGY CORPORATION COMPARATIVE SCHEDULE OF CRUDE OIL SALES VOLUMES AND SALES PROCEEDS 1987 AND 1988 AO VALOREM TAX YEARS (1986 AND 1987 PRODUCTION YEARS) PROD VOLUME VALUE BBL VAL---- YEAR WELL NAME AD VAL COGCC 07 COGCC 08 AD VAL COGCC #8 AD VAL FORM 8 FORM 8 REPORTER(S) 1986 BASHOR 8-8 3.117 $47,728 $15.31 ASAMERA OIL 1986 BASIVIR 8-8 2,984 38.003 12.74 PERMIAN TOTAL--BASHOR 5.19 6,181 6.101 $75,394 85,731 $14.51 1987 BANZHAF 23-4 298 5,098 17.11 ASAMERA OIL 1987 BANZHAF 23-4 623 11,240 18.04 PETROCARBON ENERGY CORP TOTAL--BANZHAF 624 717 921 11,244 16,338 18.02 1987 BASHOR 8-17 2,158 2,594 2,774 40,333 51,673 18.69 18.63 PETROCARBON ENERGY CORP • i�::'Ai 130111;I orp?' .. . ,I '7; ,i. {�� . , ai4 i'144." • ' PAGE 1 OF 1 • 'S,CHEDULE 2 PETROCARBON ENERGY CORPORATION MASTER SCHEDULE OF TAXABLE VALUE ADJUSTMENTS 1987 & 1988 AD VALOREM TAX YEARS (1988 & 1987 PRODUCTION YEARS) • BASIS FOR GROSS CLAIMED 12.5% OF EST TAXABLE PROD GROSS SOURCE VALUE ROYALTY .INCREASE VALUE YEAR WELL NAME VALUE ADJ SCHEDULE INCREASE EXEMPT % LESS ROY EX ADJ 1986 BASHOR 8-8 DGCC FORM 8 2-A 10,337 0.00% 1,292 9,045 1987 BANZHAF 23-4 DGCC FORM 8 2-A 5,094 0.00% 631 4,457 1987 BASHOR 8-17 DGCC FORM 8 2-A 11,340 0.00% 1,418 9,923 1986 BASHOR 1-8 DGCC FORM 8 2-8 5,284 0.00% 661 4.624 1987 ANDERSON 22-4 DGCC FORM 8 2-B 20,757 0.00% 2.595 18,162 1987 BANZHAF 23-4 DGCC FORM 8 2-B 69,028 0.00% 8.629 60,400 1987 JOSEY 12-8 DGCC FORM 8 2-B 42,748 0.00% 5,344 37,405 1987 SUSIE 11-9 DGCC FORM 8 2-8 11,352 0.00% 1,419 9,933 TOTAL ESTIMATED ADDITIONAL ASSESSMENT, 1986 & 1987 PRODUCTION YEARS $153,948 • A: C1p;s_,;;. . ,,, 4w,}Jfft)'41nIti:i4431 h1 n 4'.r3Biik?Nh.t t -e i'.,014% .t:l1AF•-:J l,!4:.`. :Mrl,in ' • a»: ' t''t.'im ,a i . t «i l a « a k §$$$1$ �§§��U)% 6« 7f,f,f? : 2% 44444144 2 MA �. 2s § 1§§§K§ -5 e;;;; IIIm& !;�/7} I a;i;; a. °k 5 55 m Air§i �gn; % } }} »§ 999!9! , §2 0000000 g & lRBR ® Willi - glige5 zth %— »0 �sfm„■ ocoo Wt; 3$„??? . 3 of X= � \\\\\°j • § ! 111M \ --§ -!- .._, c ■ I n .._-, ir■ W 1151111 • §g@ 9 - a�ag■■e ■ | ■■e■■9§ § _ IIE§ 2§ | ---_, . 'SCHEDULE 2-B PAGE 1 OF 1 PETROCARBON ENERGY CORPORTATION COMPARATIVE SCHEDULE OF NATURAL OAS SALES VOLUMES AND SALES PROCEEDS 1987 AND 1988 AD VALOREM TAX YEARS (1980 AND 1987 PRODUCTION YEARS) PROD VOLUME ----GROSS VALUE---- ---MCF VAL---- YEAR WELL NAME AD VAL COGCC #7 COGCC #8 AD VAL COGCC #8 AD VAL FORM 8 FORM 8 REPORTER(S) 1986 BASIEIR 1-8 67,808'7 67,808✓ 77,172 ✓ $52,212 $57,496 $0.77 $0.75 PETROCARBON ENERGY CORP 1987 ANDERSON 22-4 12,998 20,792 1.60 MGF OIL CORP 1987 ANDERSON 22-4 ? i.. .1 6,159 ✓ ,'1,566 0.25 PETROCARBON ENERGY CORP TOTAL--ANDERSON 6,159 a 5,858 19,157 1,601 22,358 0.26 I 1987 BANZHAF 23-4 41,527 69,092 1.66 MGF OIL CORP 1987 BANZHAF 23-4 12.195 3,473 0.28 PETROCARBON ENERGY CORP TOTAL--BANZHAF 12,195 `e. 12,054 53,722 3,537 72,565 0.29' 1987 JOSEY 12-8 25,508 43,477 1.70 MGF OIL CORP 1987 JOSEY 12-8 47,566 12,589 0.26 PETROCARBON ENERGY CORP TOTAL--JOSEY 47,566 ✓47,636 73,074 13,318 56,066 0.28 1987 SUSIE 11-9 8,217 13,427 1.63 MGF OIL CORP 1987 SUSIE 11-9 542.0 5.820 1,362 0.23 PETROCARBON ENERGY CORP TOTAL--SUSIE (.5,(7a0)o) 6,999 5,712 14,037 3,437 14.789 0.49 NOTE 1: THE SUSIE 11-9 (1987) AD VALOREM REPORTING INCLUDES 1,179 MCF WITH A VALUE OF $2,040 REPORTED BY MGF OIL CORP. • .+., •41.40 4"tl'+Y1 '�h..i4+_.,yt,0•{4;'r�/.B, .. .'"a4+ AiA/P1CaIO1:T'I0.rrJ1. ... . , •,, '• ,, .'i:.. stfr ‘ OFFICE OF THE COUNTY TREASURER FRANCIS M.LOUATALET COUNTY TREASURER PHONE(303)358.4000,EXT.4459 P.O.BOX 458 GREELEY.COLORADO S0532-0455 WI I 111 C COLORADO December 14, 1990 RE: Misahar Investments Corrected Tax Notices 1987-1988 Ad Valoreum Tax Years (1986-1987 Production Years) Weld County, Colorado Misahar Investments 475 17th Street Suite 1220 Denver, CO 80202 Dear Mr. Hembree: Enclosed are the corrected Weld County tax notices for oil and gas wells owned by Misahar Oil Corporation. The amount now currently due is as follows: Additional Tax Amount Due $ 12,463.44 These notices must be paid by January 14, 1991 , to avoid penalties. If you have any questions concerning this matter please give me a call. Very truly yours, Beverly A. Pennington Weld County Treasurer's Office CORRECTED NO JCL F'ARC TYPE O WELD TREAS TAX INOUIRY TAX YEAR 1987 ATIIN609 PIN ')203287 PARC 029108000004 SPACE SECT 02 TAX AREA 1204 PETRpCARBON ENERGY CORP 10795 W BELLEVIEW EW AVE LITTLETON TTLETON CO 80:217 �L,a 402 I\°‘4° 4976--8 LEASEHOLD INT SE4NE4 8 10 61 LAND 85:9►:►J (BASHOR #8-8) FETROCARBON ENERGY CORF' IMPS TAX INTEREST PAID—BY TOTAL 85290 ADV MILEAGE DFEE SFEE RECEIPT LEVY 78.696 .oIdw6 2999.89 TAX FULL 6711 .98 A800?010664522 TAX CREDIT 2999.89 TAX 1ST 3355.99 A880'>72761,1.1.91.5 TAX 2ND 3355.99 NET TAX 6711 .98 ADV MILEAGE DFEE SFEE ADDITL LESS PAID 5999.78 BALANCE 712.20 PENALTY DUE MESSAGE: 1ST DUF F'F1 :TAX PAYMENT PF_: BROWSE PAYMTS PF3:NEXT PIN FULL DUE 712.20 F'F4:BANKRUPTCY AUDIT PFB:REMARK: ADD F'F9 :REMARKS BROWSE PF10:OWNERS PFII :LEGALS PF12:TREAS.MENU CORRECTED folG t I6 PARC TYPE 0 WELD TREAS TAX INQUIRY FAX YEAR 1987 ATTTA1Z•.^ PIN 0203187 PARC 0291080000004 SPACE SEQ 01 TAX AREA 1204 PETROCARBON ENERGY CORP o'°'f ,s0 10795 W BELLEVIEW EW AVE LITTLETON TTL ETON CO 80217 88, ti, 4976-A LEASEHOLD INT SE4SE4 8 1►► 61 LAND 92670) (#1 . 6ASHOR) F'ETRC3CARBON ENERGY CORP IMPS TAX INTEREST PAID-BY TOTAL 92670 ADV MILEAGE DFEE SFEE RECEIPT LEVY 78.696 '1464.59 TAX FULL 7292.76 A880-7010664622 TAX CREDIT 3464. 59 TAX 1ST 3646.30 A88072766.1 0915 TAX 2ND 3646.30 NET TAX 7292. 76 ADV MILEAGE DFEE SFEE ADDITL LESS PAID 6929. 18 BALANCE 363.58 PENALTY DUE MESSAGE: 1ST DUF PF1 :TAX PAYMENT PF2:BROWSE PAYMTS PF3:NEXT PIN FULL DUE 363. 58 PF4 :BANKRUPTCY AUDIT PF8:REMARI: ADD PF9:REMARKS BROWSE PFIO:OWNERS PF11 :LEGALS PF12:TREAS.MENU • CORRECTED NOTICE PARC TYPE 0 WELD TREAS TAX INQUIRY TAX YEAR 1988 PIN 0170188 PARC 029117000009 SPACE SEl1 01 12I 4Nb09 PETR1)CARFON ENERGY CORPORATIONTAX AREA 1204 3:'•. SOUTH BANNOCI: Sr. SU ENGL.EWOOI) 5167 -A LEASEHOLD INT SE4NF_4 17 lei 61 CO 6011031..6 ( 0' ( 8ASF-IUR 8--170 F'E:TROCARE+ON ENERGY CORPORATION LAND 46520 TAX INTEREST IMPS PAID-BY TOTAL 46520 ADV MILEAGE DFEE SFEE RECEIPT 1405. 56 LEVY 81 . 178 TAX FULL 3776.40 A890227A890227990-2;918 TAX CREDIT 1465. 56 TAX 1ST 1888.20 A8907265947-,17 TAX 2ND 1688.20 ADV MILEAGE DFEE SFEE NET TAX 3776. 40 ADDITL LESS PAID 2971 . 12 BALANCE 805.28 PENALTYMESSAGE: DUE F'F 1 : TAX PAYMENT F'F`2:BROWSE PAYMTS PF3:NEXT' PIN FL.ILL_1S DUE F'F 4:EiANKRUPTCY DUE 805. 28 PF8:RE_MARI:: ADD PF=9:REMARI=::S BROWSE PF.1O:OWNERS PF1.i :L_EGALS PF 1.2:TREAS.MENL1 CORRECTED NOi1u F'ARC TYPE 0 WELD TREAS TAX INOUTRY TAX YEAR 1988 ATIIN609 PIN 0170488 PARC 029104000096 SPACE SEGI 01 TAX AREA 120►4 PETROCARBON ENERGY CORPORATION 1 tip; 3333 SOUTH 8ANNOCF�; ST, SU ENGL.EWOOD CO ao11C► ,i, � ��' 5132--A LEASEHOLD INT SE4NW4 4 10 61 LAND 32040) (ANDERSON Z2-43 PETROCARBON ENERGY CORPORATION IMPS TAX INTEREST PAID-BY TOTAL 32040 ADV MILEAGE DFEE SFEE RECEIPT LEVY 81 . 170 563. 38 TAX FULL 2600.94 A8902279903518 TAX CREDIT 563.38 TAX 1ST 1300.47 A8907265947512 TAX 2ND 1300.47 NET TAX 2600.94 ADV MILEAGE DFEE SFEE ADD I TI._ LESS PAID 1126.76 BALANCE 1474. 18 PENALTY DUE MESSAGE: 1ST DUE 173.71 FF1 :TAX PAYMENT F'F2:BROWSE PAYMTS FF3:NEXT PIN FULL DUE 1474. 18 PF 4:BANK:RUF'TCY AUDIT F'F8:REI`1ARI< ADD F'F9:REMARI=:'S BROWSE PF 1 O:OWNERS F'F 1.1. :LEGALS F'F12:TREAS.MENU CORRECTED NOfiCL PARC TYPE 0 WELD TREAS TAX INQUIRY TAX YEAR 1988 PIN 0170388 PARC 029108000003 A2I Nb�►9 SPACE SE[I 01 TAX AREA 12044 PETROCARBON ENERGY CORPORATION 333 SOUTH E+ANNOCI( ST. SIJ ENGLEWOOD CO 80.11 i► 3`lib:o 1( �l a‘1 4978-A LEASEHOLD I NT SW4NW4 8 10;> 61 LAND (I]USEY 12-s) F'ETROCARHON ENERGY CORPORATION 77240) TAX INTEREST IMPS PAID-BY I D-BY TOTAL 77240 ADV MILEAGE DFEE SFEE RECEIPT LEVY 81 . 178 1616.66 TAX FULL 6270.20 A8902279903610 TAX CREDIT 1616.66 TAX 1ST 3135. 10 A8907265947012 TAX 2ND 3135. 10 NET TAX 6270.20 ADV MILEAGE DFEE SFEE ADDITL LESS PAID 3233.32 BALANCE 3(36.88 PENALTY DUE MESSAGE: 1ST DUE F'F1 : IAX PAYMENT PF2:BROWSE PAYMTS PF3:NEXT PIN FULL DUE 3036.88 PF4:DANK.RUF'TCY AUDIT PF'B:REMARI( ADD PF9:REMARI^S DROWSE PF 10:OWNERS PF 11 :1_.EGALS PF.12:TREAS.MENU • CORRECTED NO 1 PARC TYPE 0 WELD TREAS TAX INQUIRY TAX YEAR 1988 F'I N 0174688 F'ARC 0291 0900001 06 SPACE A2 I I N6+)9 PETROCARBON ENERGY CORPORATION SE.W ��= TAX AREA 1204 :333 SOUTH BANNOCV ST, SU ENGLEWOOD CO 80.11+i re0<<° ( °1r1 + 5135-8 LEASEHOLD INT NW4NW4 9 10 61 LAND 69390) (SUSIE 11-9). PETROCARBON ENERGY CORPORATION TAX INTEREST IMPS PAID-BY I D--6Y TOTAL 69390 ADV MILEAGE DFEE SFEE RECEIPT LEVY 81 . 178 2413. 42 TAX FULL 5632.94 A890'227990 3816 TAX CREDIT 2413.42 TAX 1ST 2816.47 A8907265947212 TAX 2ND 2816.47 NET TAX 5632.94 ADV MILEAGE DFEE SFEE AUDITL. LESS PAID 4826.84 BALANCE 806.10 PENALTY DUE MESSAGE: 1ST DUE PF1 :TAX PAYMENT PF2:BROWSE PAYMTS FF3:NEXT PIN FULL DUE 806. 10 F'F4:BANKRUPTCY AUDIT PFB:REMARK ADD F'F9:REMARKS BROWSE PF10:OWNERS PF11. :LEGALS PF12:TREAS.MENU CORRECTED NOf iC PARC TYPE 0 WELD TREAS TAX INQUIRY TAX YEAR 1988 ATIIN6O9 PIN 0170588 PARC 029104000004 SPACE SEU 01 TAX AREA 1204 PETROCARBON ENERGY CORPORATION _q33_z SOUTH BANNOCI( ST, SU ENGLEWOOD CO 80110 �� l r ' Iii t 4:�' 4954-A LEASEHOLD INT NE4SW4 4 10 61 LAND 77800 ) (BANZHAF 23-4) PETROCARBON ENERGY CORPORATION IMPS TAX INTEREST PAID-BY TOTAL 77800 ADV MILEAGE DFEE SFEE RECEIPT LEVY 81 . 178 525.22 TAX FULL 6315.66 A8902279904018 TAX CREDIT 525.22 TAX 1ST 3157.83 A8907265947412 TAX 2ND 3157.83 NET TAX 6315.66 ADV MILEAGE DFEE SFEE ADDITL LESS PAID 1050.44 BALANCE 5265.22 PENALTY DUE MESSAGE: 1ST DUE 2107.39 F'F1 :TAX PAYMENT F'F2:BROWSE PAYMTS PF3:NEXT PIN FULL DUE 5265.22 PF4:BANI(RUPTCY AUDIT F'F8:REMARK:: ADD F'F9:REMARI(S BROWSE F'F I O:OWNERS PF 11 :L.EGALS PF 12:TREAS.MENU Ilettgaii 1111111 13333333 isN 1 3Sd3433m Wffiia ss .Zss ablZhhhaill ≤ 11111 IliII I ppU_ Issi LaLlah 51 iily.22g sass ligagn IL.i .'",f00 lti $fgflfl : 1 !!!1!11 13-C! 0,32V22 1 , 6 �LL 1 00.00000 OE ` F : 0000000 W P �j N • ir gi 0 lilted! lfis fil ffi~ 362" 8A M PEir �8 45,NEOULE 2 PAGE 1 OF PETROCARBON ENERGY OORPcsATIQN MASTER ScHEPUI0 OF TAXABLE VALUE ADJUSTMENTS 1887 F 1980 AD VALOREM TAX YEARS (1986 R 1807 PRODUCTION YEARS) 4A51S FOR PROS; PLAINER 12.5% OF EST TAXABLE PROP 69055 SOURCE NALUE. ROYAITY INCREASE VALUE YEAR YELL NAME VALUE A04 SCMEOULE INCREASE EXEMPT % LESS ROY EX ADJ 7 1986 OASIYIR 0-6 pecF FORM 1 2-A A 1(037' 0.00% 1,292 8,045 ,1°"° 1987 6ANZHAF 27-4 pecC FORM 0 3-A 8,094" p.00% 637 4,457 1987 BASWIR 8-17 06cc FORM 0 2-A A 11,540' 0.00% 1,418 8,823 E36° 1988 BASHOR 1-6 p6CC FORK 1 2-1 B 5,284' 0.00% 661 4,624 1967 ANDERSON 33-4 O6cc FORM 0 2-0 0 28,757' 0.004 2,595 18,162 IY.' ° / 1987 BAN2HAF 23-4 06CC FORS 0 2-6 6 69,028" 040% 8.629 60,40Q 1987 JOSET 12-6 OGCC FORM 0 2-1 8. 42,748./ 0.00% 5,344 37,405 1987 SUSJE 11-8 OGCC FORM 6 2-0 0 11.352' 9.004 1,419 9,933 (1/I !t9 TOTAL ESTINATEO ADDITIONAL A55ESSMEN , 1986 A 1987 PRODUCTION YEARS 5153.948 • • SC11E091T 2-A PAGE I OF I • PETROCAR4ON ENERGY CORPORATION COMPARATIVE 6FNErNLE OF FRUOE 015 54116 Y911ME6 44414691 PRDFEE46 1447 AND 1904 A4 YAIOREM 1144 YEAR§ (1445 AAP 1541 PRODU6TIQN cN1.\gRt 0'4:1r' P .�A (PD • r' C/i PROD x-,-oi--c7rIMI Trax7T7T77s c7Ttx7-VA1N( , . . GBL VAL- YEAR V311 NAME A9 VA(. cO6C6 17 COGCC 00 A4 VA1 FDGCG 46 AD VAL FORM 4 FORM 6 REPORTERS) 1900 1145m9 0-0 0,117 $47,736 615.31 ASAMERA OIL 1986 6ASIEIR 8-4 2,904 00,003 42.74 PERMIAN TOTAL--BASHOR , 4,1! 4,161 4%191 675,394 65,731 614.51 It 1987 6ANZI$F 34-4 } 2@4J - 5,094 17.11 ASAMERA OIL 1987 OANZHAF 33-4 " 42 ,.w"',k<, 11,240 18.04 PETROCARBON ENERGY CORP /k^rxrcpr, TOTAL--BANZHAF 424 717 621 11,344 16,338 18.02 1987 6ASHOR 8-17 3,158 2,594 2,774 40,333 51.673 18.69 18.63 PETROCARBON ENERGY CORP • • • • ,t!o,,,y,r ate.,_r:,. .. rt';;;;Gryi noIrt(.i 7ANv. wt.. J., , • r, , .. •:(SY . '':dae. ,_,_ _ ; ., rt$u4 r...' , SCHCOULE 2-Q PAGE 1 OF 1 PETR1CARRQN ENERGY CORPORTATION • COMPARATIVE SCNEQU1.E Of NATURAL 6A5 $µES VOLUME; AND ;µES PNQCEED$ 1987 ANN 1888 AD VALOREM TAX YEARS (1884 AHD 1887 PRODUCTION YEARS) 11 ei PROD • P . YOLUNE -r--GROSS VALUE---- ---ELF VAL---- YEAR WELL NAME AD VAL COGCC 07 COGCC 10 AD YAL COBCC /8 AD VAL FORM 8 FORM 8 REPORTERS) 1988 BASIIDR 1-8 87,8081 87,80;Y 77,172 I! ;52,212 $57,486 $0.77 $0.75 PETROCARBON ENERGY CORP 1987 ANDERSON 22-4 12,998 20,792 1.60 MAE OIL CORP 1987 ANDERSON 22-4 3.9,SQ 9,158 r x'1,568 0.25 PETROCARBON ENERGY CORP TOTAL--ANDERSON (. 8,159'L 5,858 19.157 1.601 22,358 0.26 / 1987 BANZHAF 23-4 41,627 69,092 1.66 HGF OIL CORP 1987 BANZIAF 23-4 - 12,19§ ) 3,473 ' 0.28 PETROCARBON ENERGY CORP TOTAL--BANZHAF 1 12,19;12,054 53.722 3,537 72,565 0.29'' 1987 JOSEY 12-8 25,508 43,477 1.70 MGF OIL CORP 1987 JOSEY 12-8 - 47,566 '> 12.589 0.26 PETROCARBON ENERGY CORP TOTAL--JOSEY /(47,568 47,636 73,074 13,318 56,066 0.28{ i 1987 SUSIE 11-8 8,217 13,421 1.63 MGF OIL CORP 1981 SUSIE 11-9 Spa o . - 5,820 ) 1.362 0.23 PETROCARBON ENERGY CORP TOTAL--SUSIE (SBzJ) 6;999 5.712 14.037 3,437 14.789 0.49 NOTE 1; THE SUSIE 11-9 (1987) AD VALOREM REPORTING INCLUDES 1,179 MCE WITH A VALUE OF $2,040 REPORTED BY MGF OIL CORP. 1l/I tt) V �� r1. _ • 2 ;/ _. Atli\ T et ( t,.d . MEMORANDUM TO; Darry Ferguson �S FROM: Angela Sanders?' DATE: June 13, 1991 SUBJECT: Jupiter Ad Valorem Taxes Darry, as you know, the Weld County Assessors Office has been looking for resolution of certain discrepancies in the reporting of Jupiter' s ad valorem taxes for the years 1986 and 1987. The first notice in October, 1990 referred to two sets of wells that had discrepancies in what was reported on COGCC Form 8 and the annual ad valorem reports for sales volumes and/or sales values. There was an additional assessment for the two sets of wells in December, 1990 of $12,463.44. The notice in April, 1991 brought up a third area of concern. For the period September through December, 1986 no ad valorem taxes have been paid for the four wells acquired from MGF in April, 1987 . The Weld County Assessors Office estimates the taxes due for this period to be approximately $7,500.00. As Chuck Norman does in his letter dated April 30, 1991, I will respond to each of these areas of concern separately. Group "A" includes three wells that show higher crude oil sales volumes on COGCC Form 8 than are reported for ad valorem assessment: -- Schedule 1 - Bashor 8-8 - 1986 PEC did not report any oil sold on COGCC Form 8 yet reported 5196 BBLS sold at an average price of $14 .51 for ad valorem assessment. Permian and Asamera reported 6101 BBLS purchased for the year. I could find no support for the numbers PEC reported but using the settlement statements from Asamera and Permian which showed actual BBLS sold this resulted in an average sales price for the year of $14 .05, and an overpayment of taxes of $97 .87 . -- Schedule 2 - Bashor 8-17 - 1987 PEC reported 2774 BBLS sold on COGCC Form 8 and 2158 BBLS sold for the ad valorem assessment. Actual barrels sold per the Permian settlement sheets were 2577 BBLS at an average annual sales price of $18.66. The ad valorem report did not include sales for the month of June, 1987 . This results in an amount due of $444 .50. -- Schedule 3 - Banzhaf 23-4 - 1987 PEC reported the same 624 BBLS sold on both the COGCC Form 8 and the ad valorem assessment, but neither report included January, 1987 sales. This results in an amount due of $114 .34 . Group "B" includes five wells in which the volumes and sales price per MCF on COGCC Form 8 were higher than what was reported . for the ad valorem assessment. With the exception of one well, on which PEC reported incorrectly, PEC reported the same sales volume SCHEDULE 1 BASHOR 8-8 (BBLS) VALUE 1986 COGCC #7 COGCC #8 AD VAL ACTUAL SOLD TO RECD JAN 447 439.28 Asamera $10,760.49 FEB 885 885.99 Asamera 15,288.91 MAR 0 0 0.00 Asamera 0.00 APR 912 904.75 Asamera 10,358.90 MAY 671 664.42 Asamera 8,346.15 JUN 222.59 Asamera 2,971.68 JUN 657 0 423.58 Permian 5,443.00 JUL 639 626.96 Permian 6,948.91 AUG 442 435.44 Permian 5,598.20 SEP 416 0 414.27 Permian 5,622.15 OCT 436 433.98 Permian 5,672.05 NOV 222 221.61 Permian 2,898.66 DEC 424 0 427.49 Permian 5,820.66 6,151 0 5, 196 6, 100.36 $85,729.66 AVERAGE ANNUAL PRICE $14.05 ACTUAL BBLS SOLD 6, 100.36 It AVERAGE ANNUAL PRICE $14.05 GROSS VALUE $85,710.06 8 87.5% $74,996.30 (i * 1987 MILL LEVY 78.696 ON ©y $5,901.91 7 LESS; PAID BY PEC (5,999.78) S, V11 .51, OWED (DUE) ($97.87) -I10. 35 (ah}0a u..{ pca SI N.cb-ccL&) b.49. °Le .•- c,), -4.- r . S(.o..Q i1 o..C.i. 0L4 dl,_,ci' c-.11,o' I.Ic.A . F.,' . .Q 1... + p E-c_. bor &Q pcv4-mac,... �.a c. a.&. aoQoeu vn cLcQane.•F �... [ol. . . 9., ( c.. . .1.. E,. I . n,.. SCHEDULE 2 BASHOR 8-17 (8BLS) VALUE 1987 COGCC #7 COOCC #8 AD VAL ACTUAL SOLD TO REC'D JAN 0 0.00 $0.00 FEB 0 0.00 0.00 MAR 0 0 0.00 0.00 APR 0 0.00 0.00 MAY 0 0.00 0.00 JUN 425 616 419.45 Permian 7,762.84 JUL 420 412.26 Permian 7,935.46 AUG 627 621 .56 Permian 12,071 .43 SEP 391 1,423 388.90 Permian 7,097.42 OCT 184 183.83 Permian 3,354.90 NOV 362 364.88 Permian 6,571. 12 DEC 185 735 186. 10 Permian 3,303.28 2,594 2,774 2,158 2,576.98 $48,096.45 AVERAGE ANNUAL PRICE $18.66 ACTUAL BBLS SOLD 2,576.98 $ AVERAGE ANNUAL PRICE $18.66 GROSS VALUE $48,086.45 C 87.5% $42,075.64 r, Q U 0. * 1988 MILL LEVY 81. 178 $3,415.62 LESS: PAID BY PEC (2,971. 12) <'R,i3t,4 .8K> OWED (DUE) $444.50 r,ro,111 SCHEDULE 3 BANZIIAF 23-4 (BBLS) 1987 COGCC #7 COGCC #8 AD VAL ACTUAL SOLD TO JAN 0 89.33 Aaamera FEB 0 0.00 __ 298. 12 MAR 0 209 208.79 Asamera __ APR 0 0.00 MAY 0 0.00 JUN 218 213 213. 47 Permian JUL 0 0.00 AUG 0 0.00 623.56 SEP 0 0 0.00 OCT 201 201 .30 Permian NOV 0 0.00 DEC 0 201 0.00 _ 419 623 624 712.89 AVERAGE ANNUAL PRICE $18.02 ACTUAL BULB SOLD 712.89 LESS: REPORTED ON AD VAL (623.56) ADD'L MILS TO BE TAXED 89.33 B AVERAGE ANNUAL PRICE $18.02 GROSS VALUE $1 ,609.73 O 87.5% $1,408.51 * 1988 MILL LEVY 81. 178 TAX OWED $114.34 SCHEDULE 4 BASIIOR 1-8 (MCF) 1986 COGCC #8 AD VAL COGCC #7 JAN 4,422 i FEB 8,175 ; MAR 33,687 11 ,726 ; 33,687 APR 9,364 MAY 9,262 JUN 25,777 7, 151 JUL 5,832 AUG 3,642 SEP 12,005 2,531 OCT 2,658 NOV 979 DEC 5,703 2,066 77,172 67,808 67,808 SCHEDULE 5-A PETROCARBON ENERGY CORPORATION SALES OF OIL AND GAS FOR 9/86 TIIRU 12/86 (prepared 6/12/91 AKS) AVE $/ AVE $/ ANDERSON 22-4 BBLS REVENUE BBL/YR MCF NET REV MCF/YR September 170.91 $2,093.65 2, 180 $1,314.74 October 187.74 2,299.82 1,745 794. 10 November 242.56 2,970.02 579 285.11 December 231.39 2,935.41 1 , 192 554.73 832.60 $10,298.90 $12.37 5,696 $2,948.68 $0.52 AVE $1 AVE $/ BANZHAF 23-4 BBLS REVENUE BBL/YR MCF NET REV MCF/YR September 0.00 0.00 5,902 $3,559.46 October 184.40 2,258.90 5,842 2,658.53 November 190.77 2,336.93 2,365 1 , 164.56 December 216.26 2,740.49 2,935 1 ,365.88 691.43 $7,336.32 $12.40 17,044 $8,748.43 0.51 AVE $/ AVE $/ JOSEY 12-8 BBLS REVENUE BBL/YR MCF NET REV MCF/YR September 166.00 2,053.42 2,246 $1 ,354. 55 October 0.00 0.00 2,259 1 ,028.01 November 0.00 0.00 818 402.80 December 107.00 1 ,323.59 1 ,697 789.74 273.00 $3,377.01 $12.37 7,020 $3,575. 10 0.51 AVE $1 AVE $1 SUSIE 11-9 BBLS REVENUE BBL/YR MCF NET REV MCF/YR September 562.39 6,932.56 888 $535.55 October 600.91 7,361. 16 876 398.64 November 533.98 6,541.26 526 259.01 December 249.03 3,050.62 585 272.25 1,946.31 $23,885.59 $12.27 2,875 $1 ,465.45 0.51 NOTE: On the Josey well there is no backup to support a sales price; therefore, an average sales price of $12.37 was used. SCHEDULE 5-B PETROCARBON ENERGY CORPORATION AD VALOREM TAX FOR 9/86 TIIRU 12/86 (prepared 6/12/91 AKS) GROSS 1987 TAX UNITS AVE $/YR VALUE 87. 5% LEVY DUE ANDERSON 22-4 1101.5 833 12.37 10,299. 26 9,011 .85 78.696 $709.20 MCF 5,696 0.52 2,961 .92 2,591 .68 78.696 203.95 BANZIIAF 23-4 BBLS 591 12.40 7,333.73 6,417.01 78.696 504.99 MCF 17,044 0.51 8,692. 44 7,605.89 78.696 598.55 JOSEY 12-8 BBLS 273 12. 37 3,377.01 2,954.88 78.696 232.54 MCF 7,020 0. 51 3,580.20 3, 132.68 78.696 246.53 SUSIE 11-9 BBLS 1,946 12.27 23,881 .22 20,896.07 78.696 1 ,644.44 MCF 2,875 0. 51 1 ,466.25 1 ,282.97 78.696 100.96 $4 ,241. 16 SCHEDULE 6 PETROCARBON ENERGY CORPORATION SUMMARY OF AD VALOREM TAXES OWED FOR JUPITER (prepared 6/13/91 AKS) GROUP "A" -- 1986 Bashor 8-8 ( $97 .87) 1io_ a:. -- 1987 Bashor 8-17 -444 .50 tiso. ol -- 1987 Banzhaf 23-4 114 . 34 GROUP "B" -- 1986 Bashor 1-8 0.00 -- 1987 Anderson 22-4 0.00 -- 1987 Banzhaf 23-4 0 .00 -- Josey 12-8 0 .00 -- Susie 11-9 0 .00 GROUP "C" -- 1986 Anderson 22-4 913. 15 -- 1986 Banzhaf 23-4 1, 103 .54 -- 1986 Josey 12-8 479 .07 -- 1986 Susie 11-9 1, 745 .40 TOTAL TAX OWED 4 , 702 . 13 LESS: PAID IN ESCROW 5, 000. 00 REFUND DUE PEC $297 . 87 to II? . 59 Dtw. 15If1 •iG I 'lU LU ------- -'- - WELBORN DUFFORD BROWN 8 TOOLEY, P.C, PEGGY J. ANDERSON ATTORNEYS AT LAW MOTH 4 AHOEN P H▪ U. DUFFORD SUITE 1700 SASH AI.TOOLEY S.O. BROW• p00 •ROADWAY SCOTT A MIRULEONY THOMASNAVEPOV D. ORDWN JOHN O.COKUL DAVID• TW. FU 11933 JASONIBOSI DENVER.COLORADO I30200-17O1 H .COWAN! WILLIAM L W. FUROASOH TAMMY E.VALDES OHNF W. ROOK TELEPHONE 13031 661 6013 TAMMY 09TRANDER-NRUO Er BEVERLY W. QUAIL FACSIMILE (30310333-3004 KAREN O RANDE RICHARD J. •ANT TE RR A.LIEN IN KATHRYN L.PANTO KATHRYN L.POWERS PHILLIP D. BARREN GREGORY A.RUEG000GER JOHN F. MICE aP[CtAI COUNSEL RANDALL J. FEUERSTLIN MORRIS O.HUNSEL JR. S.KIRK INGEBACTISEN STEPHEN J. SULLIVANORC 1991 MJAMESORRIS t.CARCO*,JR July 3, ER GERALD PADRUEU DOUGLAS P RUlOSCOO[R EDWARD O WHITE Mr . Charles A. Norman Office of the Weld County Assessor 915 10th Street Greeley, CO 80631 Re: Ad Valorem Taxes, Jupiter Field Investments Petrocarbon Energy Dear Chuck: To follow up our conversation last month and at the request Ms . Jan Allison, I am transmitting this letter to you on behalf of Petrocarbon Energy Corporation. The issue we are trying to resolve is whether the value of production from the Jupiter Field for county ad valorem tax purposes should be equal to the price efessttablish(dNbyLthe contract with hNatural Gas tne Company Petrocarbon summarizing the letter is a paper prepared by history of the Jupiter Field, which I would recommend you read to learn the historical background of this matter . This letter explains why Petrocarbon feels the value for ad valorem tax purposes should gl the amount p the well owners without inclusion of any pipeline costs . As you know, C.R.B. S 39-7-101 requires an oil and gas well operator to file a statement showing the selling price at the wellhead of all oil or gas or transported. C.R.S . S 39-7-102 states that the value of oil or gas leaseholds for ad valorem tax purposes shall be equal to 87 . 5% of the selling price of sl and gas . In werehe atpthe, nearly wellhead. ror gas sales of oil pr gas and n production r ne to th and d otookdeliveryofathe gas aaty the iwellhead .lt a pipe liIn theses well situations Weld County followed a policy of valuing the gas at en amount equal to the gross sales price at the first point of sale, which is equivalent to the selling price at the wellhead. f .4 ZL ItI _ 1661 'Yu 'Lu WELBORN DUFFORD BROWN 8 TOOLEY, P.C. Mr . Charles A. Norman July 3, 1991 Page 2 In other situations the pipeline owner and the well operator may be the same company or affiliated companies . In these situations, the pipeline owner often enters into a contract with its subsidiary (which operates the well) , or with the other (non-operator) well owners to provide for a contract price at the wellhead which allows deduction for transportation in the pipeline. The transportation costs are deducted from the amount paid to the well owners. In the case of Jupiter Yield, the well owners could not find a purchaser willing to build a pipeline to the wells, so they contracted with Reliance Pipeline Company to build a pipeline to the location where NGPL would buy the gas . Reliance built the pipeline and operated it, charging a fee to the well owners to transport the gas to the point of sale. NGPL paid Reliance; Reliance deducted the transportation fee from the proceeds and paid the remainder to the well owners . The amount received by the well owners was equal to the contract price paid to Reliance less the transport costs charged by Reliance. Basing the ad valorem tax on the amount received by the well owners after deduction of the transportation fee would be consistent with the valuation method used to assess the value of production at wells where the purchaser built a pipeline to the well, or at wells where the purchaser contracts with its own subsidiary or with non-operators in a well in which it operates . Petrocarbon purchased the interest of Reliance in the Jupiter Field pipeline in 1987 and since that time either Petrocarbon or Misahar Investments, Inc. have operated the pipeline under the terms of the original Reliance contract . (Petrocarbon sold its interest in the Jupiter Field and the pipeline to Misahar) . Since the well operator and the pipeline owner have been the same entity it is possible the operator could have avoided ad valorem taxes by increasing the transportation fee, which would reduce the "value" of gas at the wellhead . In this case, however, Petrocarbon and, to my knowledge, Misahar have charged the same transportation fee es Reliance charged pursuant to the original transportation contract which was negotiated at arms-length. Therefore, the value of the oil or gas et the wellhead is equal to the NGPL contract price less the transportation fee allowed by the Reliance contracts . r e zs i WELBORN DUFFORD BROWN 8 TOOLEY, P.C. Mr. Charles A. Norman July 3 , 1991 Page 3 I feel valuation problems similar to the one in this matter will arise with greater frequency now that FERC Order No. 451 is forcing most pipelines to allow open access to producers . Under order No . 451 pipelines will become more like common carriers because they will be required to provide transportation to producers who are selling gas to purchasers other than the pipeline owners . Problems will arise in situations where, for example, a producer sells gas to an end user in Chicago for $5 per MCF, but the producer is required to pay processing and transportation fees which leave the producer a gross price of $1 . 25 at the wellhead. This $1 . 25 per MCF price at the wellhead will most likely be nearly equal to the gross sales price at the first point of sale received by a producer who sells his gas to a pipeline at the wellhead . Assessing the first producer based upon a sales price of $5 per MCF would be inequitable and, in my opinion, in violation of C.R.S. S 39-7-101 . It appears that most counties and oil and gas producers are attempting to establish the value of gas for ad valorem purposes by using some method which will result in a value of the gas equal to its gross value at the wellhead. This appears to be a simple, workable method consistent with the statute. Problems will arise where there is no arms-length contract between the producer and the transporter, in which case some other method will have to be used to determine the fair market value of the gas at the wellhead (perhaps using an average of prices in the area) . Fortunately, in this matter , there is an arms-length contract which can be used to establish the gross sales price of the gas at the wellhead. Please call me if you have any questions concerning this matter or you would like to discuss it further . Sincerely, WELBORN DUFFORD BROWN & TOOLEY, P.C. Stephen J. Sullivan SJS/bap Enclosure cc: Jan Allison, Esq. Derry Ferguson (Misahar Investments) 0235Q SENT BY:Xerox Telecopier 7021 ' 9-11-91 ; 1 :5UPM 403 ''3tlu4- 303 ioi 440Z,s o bLP 10 ' 91 13131 PAGE . 002. 4 OFFICE OF COUNTY ATTORNE' /int PHONE 19031 900 4 eXt 439 sox yes P.O..p Hive. JOLORADO • September 5, 1991 Mr. Stephen J. Sullivan WELSORN DUFFORD BROWN & TOOLEY, P .C . 1700 Broadway, Suite 1700 Denver, CO 80290-1701 RE ; Ad Valorem Taxes , Jupiter Field Petrocarbon Energy Corporation/Misahar Investments Dear Steve , I am in receipt of your July 17 , 1991, letter on behalf of Petrocarbon Energy Corporation. Your letter, addressed to Chuck Norman, came with enclosures, and you discussed ad valorem taxes for your client ' s interests in the Jupiter Field . The issue for resolution is whether gas gathering and compression costs are deductible from the "selling price" of the gas Subject to ad valorem taxation. See, Section 39-7-102 , C.R.S . You have correctly identified the applicable Colorado state laws ; Sections 39-7-101 and 102 , C . A. S . You have also correctly stated the practice of many counties , including Weld County, in applying these provisions . . . Weld County followed a policy of valuing the gas at an amount equal to the gross sale§ price At the first point of sale . . . Your client' s experiences indicate that the gas purchase transactions in the Jupiter Field are quite complex, involving several parties - the operator/interest owners , the gas purchaser and the pipeline/gas gathering system owner. Dynamic economic , factors ouch an worldwide supply and demand for natural gas may further complicate purchase agreement negotiations . Such factors certainly influence the resulting agreement terms such as price, agreement incentives and the term or length of the agreement , serve ur ;nerox let eco ler lute —il—ai , i •4 Ihroi uuau uua-. auo „ ! •. V. •4 btr 1b ' Si 13: x1 PRGE . 003 Stephen J. Sullivan Page 2 September 5 , 1991 Your letter advocates Minimizing the ad valorem tax burden on the Jupiter Field interest owners by allowing deductions for the gas gathering and compression costs incurred in marketing the gas . The applicable statutory provision does not provide for such deductions rrom "selling price. " section 39-7-102 ( 1 ) (a) , C.R.S . As you know, the only express , allowed deductions from the "selling price" are, for federal , state and local government royalty interests . The statutory scheme is simple - taxes are levied on the gross selling price less government royalties . Your position seeks accommodation for your client ' s management decisions made in a Complex and dynamic economic market. The law has not been amended to keep pace with the business realities/hardships you have identified in the Jupiter Field. The Weld County Assessor has no authority to read such accommodations into the law on behalf of the Jupiter Field interest owners - or anyone else . The available evidence concerning Petrocarbon Energy' s interests in the Jupiter Field show a gross sales price paid at the first point of sale for the 1987 and 1988 tax years of $1 . 80 and $1 . 65 per MCF, respectively. Petrocarbon Energy' s Declaration Schedules filed with the Weld County 'Assessor during this same time period show an average sales price of approximately . 25e per MCI, i .e . the gross sales price less gathering and compression costs . The Weld County Assessor will assess the lease holds at the estimate average gross sales price rate in compliance with Section 39-7-102 , C.R.S .. Accordingly, enclosed are two schedules for your review. The schedule titled "schedule of Agreed-Upon Adjustments ' per Petrocarbon Response of June 13 , 1991" indicates a net balance due to Weld County of approximately $617 . 00 . This schedule, verified by Angela Sanders and Chuck Norman, represents the settlement of all issues except natural gas valuation for the tax years 1986 and 1987 . The second schedule is a recomputation of Jupiter Field taxable value,' for production and sales years 1986 and 1987 . The estimated additional taxable value is computed using ; ( 1) gas sales volumes originally reported to the Weld County Assessor by Petrocarbon for sales years 1986 and 1987 , valued at estimated gross sales prices/MCF of $ 1 . 80 and $ 1 . 65 , respectively, less ; BENZ Hflerox lelecoipner 'lU21 7 "-11-81 1 1 ;b2PM i oudda)-'+U4-+ Jud ivl sou.,, atr le est 13: 32 PAGE . 004 Stephen J. Sullivan Page 3 September 5 , 1991 (2) gross gas sales values previously supplied by patrocarbon. Notices of Valuation and tax bills for the above adjustments will be issued within thirty days . Please contact me at 356-4004 , ext. 4391 , should you wish to discuss any of the above in more detail. Sincerely, 4 I / 4/, /4 Allison e Assistant Weld County Attorney JAtrm xct Warren Lasell , Weld County Assessor Mike Loustalat, Weld County Treasurer Charles A. Norman 5trI •A lVy l I tl lytUps l IUc I , u. I I -u I , Ha&I"DI , ,,.,,�a vy PAGE . 005 PAGE 1 OF 1. . • PETROCARSON ENERGY CORPORATION SCHEDULE OF AGREED-UPON ADJUSTMENTS PER PETROCARBON RESPONSE OF JUNE 19. 1901 ADDI EXEMPT TAXABLE TAX AD VAL ADJUSTMENT ROYALTY VALUE TAX MILL ADDL YEAR PARCEL NUMBER WELL NAME OIL 6AS TOTAL % 9.67.5% AREA LEVY TAX 1687 029106000004-02 BASHOR 6-6 110.316 60 110,318 0,000% 16,027 1104 78,898 6710 1967 029104000098-01 ANDERSON 11.4 . 10,299 2,96E 13,281 0.000% 11,803 1204 76.698 813 1967 020104000004-01 BANZHAF 13.4 7,334 8,683 16,027 0.000% 14,024 1204 76.696 1,104 tip 029108000063-Ot JOSEY 11.8 3,377 3,580 6,987 0.000% 6,067 1204 78.686 479 1917 0[8109000008-01 SUSIE 11.9 23,381 1.488 25,347 0.000% 22,179 1204 78.696 1,745 1986 029117000009.01 MINOR 6-17 7,754 0 7.754 0.000% 6,785 1294 11.178 551 1988 029104000004-01 BANZHAF 23-4 1,110 0 1,810 0.000% 1,409 1204 61.178 114 $5,617 LESS ESCROW DEPOSIT (5,000) BALANCE DUE $611 SENT BY:Xerox Telecoppier 7021 ; F 1-91 ; Judui'2 k-' JUJ 7oi 2ao2,4 I 'oar Sic) 1.7, 'id PAGE . 008 PAGE 1 OF I PETROCARRON ENERGY CORPORATION SCHEDULE OF NATURAL OAS VALUATION ADJUSTMENTS BASED ON ESTIMATED AVERASE PRICES TAX YEARS 1987 AND lees (PRODUCTION YEARS 1088 AND 1987) POOL EXEMPT TAXABLE TAX AO VAL ADJUSTMENT ROYALTY VALUE TAX MILL ADOL YEAR PARCEL NUMBER WELL NAME OIL OAS TOTAL X 1.67.5% AREA LEVY TAX 1887 NEW ACCOUNT ANDERSON 22-4 $0 $7,281 $7,291 0.000% $9,179 1204 78.896 $502 1887 NEW ACCOUNT BANZHAT 23-4 0 21,967 21,987 0.000% 18,239 1204 76.568 1.514 1907 NEW ACCOUNT J05EY 12-8 0 9,058 9,058 0.000% 7.924 1204 78.808 624 1907 NEW ACCOUNT SUSIE 11-9 0 1.709 3,702 0.000% 3,245 1204 18.690 255 1987 929108000004-01 SASNOR 1-8 0 69,942 69,942 0.000% 61,112 1204 78.696 4,809 1887 028108000004-42 BASHOR 8-8 0 17,609 17,609 0.000% 15,408 1204 78.696 1,117 1988 029108000006-01 ANDERSON 22-4 SO $6.661 18.561 0.000% 57,491 1204 81.118 $606 1968 029104000004-01 BANZIULF 2S-4 0 16,685 16,585 0.000% 14,612 1704 01.178 1,176 1985 029108000002.01 JOSEY 12-8 0 85,106 65,106 0.000% 57,020 1204 81.178 4,829 1980 029100000006-01 SUSIE 11-0 0 8.206 8.200 0.000% 7,180 1204 81.176 582 ISIS 020108000004-01 BASH0S 1-8 0 25,047 24,047 0.000% 21.911 1204 81.178 1,779 1986 029108000004-02 BASHOR 8-4 0 6,607 8,697 0.000% 7,410 1204 81.178 818 1986 028117000009-01 BASHOR B-1) 0 14,991 14.991 0,000% 19,117 1204 61,178 1,065 TOTAL ESTIMATED TAX DUE.-4A4 VALUATION ISSUE 918,376 Petrocarbon Energy Corporation STATEMENT OF ISSUES Petition to the State Board of Assessment Appeals Petrocarbon Energy Corporation vs. Weld County, Colorado Re: Schedule Number 0002507 Schedule Number 0006767 Schedule Number 0006768 Description - Josey #12-8 Description - Susie #11-9 Description - Anderson #22-4 Description - Banzhaf #23-4 Weld County assessed tax on the sale of gas production at a "sales point" not at the "wellhead" as required by state law. The details have been more fully described in the attached letter from Mr. Steve Sullivan to Mr. Charles A. Norman. Petrocarbon believes the tax it paid was on the Actual wellhead price of gas. Any added value due to the third party contract pricing of transportation and compression to the sales point is not and should not be included in the ad valorem taxing schedules. Secondly, Weld County hired an auditor to audit these accounts after Petrocarbon's protest period expired. Thus Petrocarbon's right of "due process" was ignored by Weld County and accordingly prejudiced Petrocarbon's right to enter a protest in the normal system of protest and appeal. £a4 Darry tY F guson, President 3333 South Bannock Street, Suite 450 Englewood, Colorado 80110 (303) 789-2425 WELBORN DUFFORD BROWN 8 TOOLEY, P.C. ROBERT F. WELBORN ATTORNEYS AT LAW PEGGY J.ANDERSON PHILIP G. DUFFORD SUITE 1700 KEITH D.TOOLEY THOMAS G. BROWN 1700 BROADWAY SASHA KARPOV A, DALE TOOLEY 11933-19851 SCOTT J. MIKULECKY DAVID W. FURGASON DENVER,COLORADO 80290-1701 JOHN S.COWAN WILLIAM C.ROBB TELEPHONE 13031861-8013 MARLA E.VALDEZ JOHN F. WELBORN TAMMY A.TIERNEY FACSIMILE 13031832-3804 BEVERLY J. QUAIL KAREN OSTRANDER-KRUG RICHARD L.FANYO TERRY JO EPSTEIN KATHRYN L.POWERS TODD A.LINN PHILLIP D. BARBER GREGORY A.RUEGSEGGER JOHN F. HECK RANDALL J. FEUERSTEIN July 17, 1991 SPECIAL COUNSEL S.KIRK INGEBRETSEN STEPHEN J. SULLIVAN MORRIS B.HECOX,JR. GERALD PADMORE JAMES E.CARPENTER DOUGLAS P RUEGSEGGER EDWARD D- WHITE Mr . Charles A. Norman Office of the Weld County Assessor 915 10th Street Greeley, CO 80631 Re: Ad Valorem Taxes, Jupiter Field Petrocarbon Energy Corporation/Misahar Investments Dear Chuck: To follow up our conversation last month and at the request Ms . Jan Allison, I am transmitting this letter to you on behalf of Petrocarbon Energy Corporation. The issue we are trying to resolve is whether the value of production from the Jupiter Field for county ad valorem tax purposes should be equal to the price established by the contract with Natural Gas Pipeline Company of America ("NGPL") . Enclosed with this letter is a paper prepared by Petrocarbon summarizing the history of the Jupiter Field, which I would recommend you read to learn the historical background of this matter . This letter explains why Petrocarbon feels the value for ad valorem tax purposes should equal the amount paid to the well owners without inclusion of any pipeline costs . As you know, C.R.S. § 39-7-101 requires an oil and gas well operator to file a statement showing the selling price at the wellhead of all oil or gas or transported. C.R.S. § 39-7-102 states that the value of oil or gas leaseholds for ad valorem tax purposes shall be equal to 87. 5% of the selling price of oil and gas . In the past, nearly all of the sales of oil and gas production were at the wellhead. For gas production the purchaser usually built a pipeline to the well and took delivery of the gas at the wellhead. In these situations Weld County followed a policy of valuing the gas at an amount equal to the gross sales price at the first point of sale, which is equivalent to the selling price at the wellhead. WELBORN DUFFORD BROWN & TOOLEY, P.C. Mr. Charles A. Norman July 17, 1991 Page 2 In other situations the pipeline owner and the well operator may be the same company or affiliated companies . In these situations, the pipeline owner often enters into a contract with its subsidiary (which operates the well) , or with the other (non-operator) well owners to provide for a contract price at the wellhead which allows deduction for transportation in the pipeline. The transportation costs are deducted from the amount paid to the well owners. In the case of Jupiter Field, the well owners could not find a purchaser willing to build a pipeline to the wells, so they contracted with Reliance Pipeline Company to build a pipeline to the location where NGPL would buy the gas . Reliance built the pipeline and operated it, charging a fee to the well owners to transport the gas to the point of sale. NGPL paid Reliance; Reliance deducted the transportation fee from the proceeds and paid the remainder to the well owners . The amount received by the well owners was equal to the contract price paid to Reliance less the transport costs charged by Reliance. Basing the ad valorem tax on the amount received by the well owners after deduction of the transportation fee would be consistent with the valuation method used to assess the value of production at wells where the purchaser built a pipeline to the well , or at wells where the purchaser contracts with its own subsidiary or with non-operators in a well in which it operates . Petrocarbon purchased the interest of Reliance in the Jupiter Field pipeline in 1987 and since that time either Petrocarbon or Misahar Investments, Inc. have operated the pipeline under the terms of the original Reliance contract . (Petrocarbon sold its interest in the Jupiter Field and the pipeline to Misahar) . Since the well operator and the pipeline owner have been the same entity it is possible the operator could have avoided ad valorem taxes by increasing the transportation fee, which would reduce the "value" of gas at the wellhead. In this case, however, Petrocarbon and, to my knowledge, Misahar have charged the same transportation fee as Reliance charged pursuant to the original transportation contract which was negotiated at arms-length. Therefore, the value of the oil or gas at the wellhead is equal to the NGPL contract price less the transportation fee allowed by the Reliance contracts . WELBORN DUFFORD BROWNS TOOLEY, P.C. Mr . Charles A. Norman July 17, 1991 Page 3 I feel valuation problems similar to the one in this matter will arise with greater frequency now that FERC Order No . 451 is forcing most pipelines to allow open access to producers . Under Order No. 451 pipelines will become more like common carriers because they will be required to provide transportation to producers who are selling gas to purchasers other than the pipeline owners . Problems will arise in situations where, for example, a producer sells gas to an end user in Chicago for $5 per MCF, but the producer is required to pay processing and transportation fees which leave the producer a gross price of $1.25 at the wellhead. This $1 . 25 per MCF price at the wellhead will most likely be nearly equal to the gross sales price at the first point of sale received by a producer who sells his gas to a pipeline at the wellhead. Assessing the first producer based upon a sales price of $5 per MCF would be inequitable and, in my opinion, in violation of C.R.S. § 39-7-101. It appears that most counties and oil and gas producers are attempting to establish the value of gas for ad valorem purposes by using some method which will result in a value of the gas equal to its gross value at the wellhead. This appears to be a simple, workable method consistent with the statute. Problems will arise where there is no arms-length contract between the producer and the transporter, in which case some other method will have to be used to determine the fair market value of the gas at the wellhead (perhaps using an average of prices in the area) . Fortunately, in this matter, there is an arms-length contract which can be used to establish the gross sales price of the gas at the wellhead. Please call me if you have any questions concerning this matter or you would like to discuss it further. Sincerely, WELBORN DUFFORD BROWN & TOOLEY, P.C. Stephen J. ' Sullivan SJS/bap Enclosure cc : Jan Allison, Esq. Darry Ferguson (Misahar Investments) 0235Q Hello