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HomeMy WebLinkAbout930250.tiff RESOLUTION RE: APPROVE TWO AMENDED DIVISION ORDERS TO TOTAL PETROLEUM, INC. , AND AUTHORIZE CHAIRMAN TO SIGN - W? AND SE SW S6, T8N, R58W WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, Weld County, Colorado, has received two Amended Division Orders to Total Petroleum, Inc. , Suite 200, 515 Central Park Drive, Oklahoma City, Oklahoma 73105-1702, and WHEREAS, said Division Orders cover land more particularly described as follows: Township 8 North, Range 58 West, 6th P.M. Section 6: WI and SE SW Weld County, Colorado WHEREAS, Weld County is entitled to a one-eighth royalty interest on production, and WHEREAS, in order to receive said royalty interest, Weld County must execute said Division Orders, copies of which are attached hereto and incorporated herein by reference, and WHEREAS, said Division Orders have been reviewed by a member of the Weld County Attorney's staff and found to be in order, and WHEREAS, the Board deems it advisable to approve said Division Orders on the parcel of land described herein. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the two Amended Division Orders to Suite 200, 515 Central Park Drive, Oklahoma City, Oklahoma 73105-1702, on the hereinabove described parcel of land be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chairman be, and hereby is, authorized to sign said Division Orders. 930250 AMENDED DIVISION ORDERS - TOTAL PETROLEUM, INC. PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following� vote on the 22nd day of March, A.D. , 1993. �` f / if f��1 BOARD OF COUNTY COMMISSIONERS ATTEST: .ill ` WEL� COUNTY, COLORADO Weld County Clerk to the Board ((///�� Constance/L.. Harbert, Chairman BY: / /440 th) /� Deputy lerk to the Board W. H Webster, iPro-Tem wl APPROVED AS TO FORM: f �C[ eorg E. Baxter o—L� ount tt rney Da e K. Ha /$$$arbara J. Kirkme er e/ 930250 • - TO: Total Petroleum, Inc. — DIVISION ORDER- LEASE ;#305848-500 Suite 200 515 Central Park Drive Oklahoma City, OK 73105 March 2 , 19 93 The undersigned and each of us, certify and guarantee that we are the legal owners of and hereby warrant the title to our respective interests as set out below in all oil produced from all wells on the WALSH PRODUCTION — AS SHOWN BELOW farm or lease, located in Weld County, State of Colorado , more particularly described as follows: PAWNEE 4-6, 6-6 & 12-6 — W/2 Section 6-8N-58W (OIL) (LEASE #305848) PAWNEE 4-6, 6-6 & 12-6 — W/2 Section 6-8N-58W (GAS) (LEASE #305848-500) AR23269D2 Effective 7 a.m., 1st day of February , 19 93,and until further notice,you are hereby authorized to receive, purchase and give credit for all oil received from said property subject to the conditions, covenants and directions following: CREDIT TO DIVISION OF INTEREST 01-32346 COMMONWEALTH ENERGY ASSOCIATES .0010207 R.I. (Per each lease) III LP 01-28038 MILE HI OIL & GAS, INC. .0010207 R.I. (Per each lease) 03-0105466 WELD COUNTY BOARD OF COMMISSIONERS .0782948 R.I. (Per each lease) 01-31843 WALSH PRODUCTION .0011430 W.I. (Per each lease) 01-32338 FRANK H. WALSH .0004900 W.I. (Per each lease) (This division order covers interest of .0820692 previously being paid to the District Court Clerk of Weld County Colorado, Case #88CV290. Such interest being distributed in accordance with the Stipulation of Interest and Agreement for Settlement of Claims agreed to in the herein stated Case #88CV290. ) B 1375 REC 02326902 03/30/93 15 :49 $0 .00 1/001 F 1680 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO FIRST The oil purchased it pursuanceof his Do cam Order shall be merchantable and become your property upon delivers thereof to you sir to any pipe line designated by you.Quantities of oil nun and purchased hereunder shall be computed in et 42 US. n gallo per barrel from regularly compiled tank tablas show' g the full capacit or r he tanks_Corrections for temperature and deductions for dirt,sediment and other impurities are to be mademons in accordance with your rules,regulations and custom:in effect at the time and place of delivery.The oil shall be steamed or treated when feces render tt merchantable. SECOND_The oil received in pursuance of the Div Mon Order shall be paid for to the party or parties entitled thereto according to division of interests shown above at the price for each day's receipts posted and upon the basis therein indicated on that day by you for the same kind and quality of oil in the Feld in which it is received.If it is necessary to transport crude oil hereunder by truck then,in that ant,you are oat horized to deduct from such price the trucking charges.together with Federal Transportation Tax thereon.Should the oil be sold by you to another purchaser accepting delivery thereof at the lease tanks,settlement Thereof shall be based upon the price received by you for such oil and upon the volutne computation made by such purchaser.Payments shall be made monthly for oil received and purchased during the preceding month by your checks delivered or mailed to the respective parties at the addresses slated_However,it is agreed,If the amount payable to any of the undersigned is less than the statutory minimum sum during any month,you may withhold payment thereof,without interest,and in lieu of monthly settlement,make payment at such time as a statutory minimum sum has accumulated to the credo of the undersigned:provided,however,that settlement shall be made at least once during each calendar year,regardless of the amount which has accumulated to the credit of the undersigned.Pipe line grades and measurements are to govern and control in all settlements,subject to the provisions of price postings above referred to co ing computation of quantities.The undersigned authorize you to withhold front the proceeds of any and all runs made hereunder the amount of any tax placed thereon,or on the production thereof.by any governmental authority.and to pay the same in our behalf. THIRD_In case of any question,contmversy or adverse c a m of title hich in your opinion adversely attests tale to any interest credited hereunder,or in case title shall not be ti factory to you at an, time during the term or this division order,each of the undersigned agrees to furnish complete abstract of title and other evidence of title satisfactory n ..cod authorizes you to retain the purchase price of the oil without obligation to pay interest on the amount so withheld,until satisfactory Indemnhv shall be furnished you against such question.canto, id verse claim or any such defects in ntle.or until an>question,controversy,adverse claim or defect to owners'title is settled to your satisfaction_In the event sill is fled in any court affecting little to nu mire haled hereunder,either before or after severance. the undersigned agree to indemnify and save you harmless from any and all costs in connection with such action,including attorneys'fees;and further the undersigned agree to Indemnity and save you harmless and any carrier transporting said oil for your account against any and all liability for loss,cost.damage and expense,including attorneys'fees.which you or the carrier may suffer or incur on account of receiving,transporting and paying us for said ail. FOURTH:The undersigned severally agree to notify you of any change of ownership and no transfer of interest shall be binding upon you until transfer order and the recorded instrument evidencing such transfer,or a certified copy thereof,shall be furnished you.Transfers of interest shall be made effective on the first day of the calendar month in which notice is received by you.You are hereby relieved of any responsibility for determining if and when any of the interests hereinabove set forth shall or should revert to or be owned by other parties either as a result of the completion or discharge of money or other payments from said'interests,or otherwise;and the signers hereof whose interests are affected by such money or other payments,if any,or by the reversion or change of an interest for any other reason. agree to give you nonce in writing by registered lever addressed to you at Oklahoma City,Oklahoma,when any such money or other payments have been completed or discharged or when any other division of interest than that set forth above shall,for any reason,become effective and to furnish transfer orders accordingly,and that in the event such notice shall not be received,you shall be held harmless in the them of.and are hereby released from any and all damage or loss which might arise out of any overpayment.The undersigned hereby further agrees to reimburse you for all amounts incorrectly paid to the undersigned for the above-described property. FIFTH.working Interest owners and.,or Operators who sign this Division Order,and each 01 them.guarantee and warrant for your benefit and that of any pipeline or other carrier designated by you to run or transport said oil,that all oil tendered hereunder has been and/or will be produced in accordance with applicable laws and/or official rules and regulations. s ri-This Division Order shall become valid and binding on each and every owner above named as soon as signed by such owner,regardless of whether or not all of the above named owners have so signs a shelI likewise be binding upon the heirs,personal representatives,successors and assigns of the parties hereto,and the undersigned hereby agree to all the terms and conditions of the Division Order now in effect and force. SEVENTH:You are authorized and directed to deduct operating expenses as furnished by the lease operator from the undersigned's interest,of same is a participating or pooled working interest),as set oat herein,in the oil produced and saved from the above described lands and remit same to the lease operator.The undersigned will look to the lease operator for detailed statements of all charges and credits of operating expenses at such mtervals as agreed upon by the operator and the undersigned working interest owner. • YOUR COPY SIGN• 'R ti,T' ESSES ^ . SIGNATURE OF OWNERS SOCIAL SECURITY , ATTEST: 'V OR TAXPAYER NUMBER Iftjml fix' �e+� .Y�?w/��✓✓ �J1��..e"e�� WE CO i , Rf' ^ BOARD ONSTANCE L. H , CHAIRMAN BY: � �_ /� '1• dC�A✓a 03/24/93 84-6000813 DEPUTY i 4' :OARD WELD COUNTY BOARD OF COMMISSIONERS ADDRESS: P.O. BOX 758 TELEPHONE: GREELEY, CO 80632 IMPORTANT:To avoid delay in payment or tax penalties according to law,you must please show your correct address and your social security number or tax identification number. Individual signatures must be witnessed by two disinterested persons. 341.018 R9/9I QPCmi ^{.ArJy�. LVv� LE 009 CL AMENDED LEASE 11305847 TO: Total Petroleum, Inc. DIVISION ORDER LEASE #305847-500 Suite 200 515 Central Park Drive Oklahoma City, OK 73105 March 2 19 93 The undersigned and each of us, certify and guarantee that we are the legal owners of and hereby warrant the title to our respective interests as set out below in all oil produced from all wells on the WALSH PRODUCTION - AS SHOWN BELOW farm or lease, located in Weld County, State of Colorado , more particularly described as follows: PAWNEE FEDERAL 14-6 - SE SW Section 6-8N-58W (OIL) (LEASE #305847) PAWNEE FEDERAL 14-6 - SE SW Section 6-8N-58W (GAS) (LEASE #305847-500) B 1375 REC 02326903 03/30/93 15:50 $0.00 1/001 AR _r3C69D3 F 1681 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO CO, Effective 7 a.m., 1st day of February , 19 93,and until further notice,you are hereby authorized to receive, purchase and give credit for all oil received from said property subject to the conditions, covenants and directions following: CREDIT TO DIVISION OF INTEREST 01-32346 COMMONWEALTH ENERGY ASSOCIATES .0005105 R.I. (Per each lease) III LP 01-28038 MILE HI OIL & GAS, INC. .0005107 R.I. (Per each lease) 03-0105466 WELD COUNTY BOARD OF COMMISSIONERS .0392169 R.I. (Per each lease) 01-31843 WALSH PRODUCTION .0005719 W. I . (Per each lease) 01-32338 FRANK H. WALSH .0002451 W.I. (Per each lease) (This division order covers interest of .0410551 previously being paid to the District Court Clerk of Weld County Colorado, Case #88CV290. Such interest being distributed in accordance with the Stipulation of Interest and Agreement for Settlement of Claims agreed to in the herein stated Case #88CV290.) hl RST'.The oil purchased inpursuance ofthls Div en Order shall be merchantable and become your pro pens upend tiers thereof to you ,y pipe line dest gnacd by you.Quantities o f oil tan and purchased hereunder shall becomputed in term5 of 42 C.S.gallonsper barrel Oom regularly compiled tank tables showing the full capacity of the tanks.Co ns for temperature and deductions for dirt,sedment and other impunties are to be made in accordance with_ delivery les.ree I regulations and customs in effect at the time and place of .The oil shall be steamed or treated when necessary to render it merchantable. SECOND:The l receoed in pursuance of the Div Yon Order shall be paid for to the party or parties entitled thereto a ording to diviston of interests shown above at the price for each days receipt, posted and upon the basis therein indicated on that day by you tar the same kltd and quality of oil in the Feld in which it is race ved.If 13 necessary to transport crude oil hereunder by truck,then, n t hat es em.you are authorized to deduct from such price the trucking charges.together with Federal Transportation Tax thereon.Should the oil be sold by you to another purchaser accepting delivery thereof at the lease tanks,settlement thereof shall be based upon the price received by you for such oil and upon the volume computation made by sach purchaser.Payments shall be made monthly for oil received and purchased during the preceding month by your checks delivered or mailed to the respective parries at the addresses stated.However,it is agreed,If the amount payable to any of the undersigned is less than the statutory minimum sum during any nth,you may withhold payment thereof.without interest.and In lieu of monthly settlement,make payment at such time as a statutory minimum sum has mu lated to the credit of the undersigned:provided.however,that settlement shall he made at least once during each calendar year,regardless of the amount which has accumulated to the credit of the undersigned. Pipe line grades and measurements are to govern and control in all settlements,subject to the provisions of price postings above referred to concerning computation of query ales. The undersigned authorize you to withhold from the proceeds of any and all runs made hereunder the amount of any tax placed thereon,or on the production thereof,by any governmental authority,and to pay the same in our behalf. THIRD:Incase of any question.controversy or adverse claim of title which in your opinion adversely affect s title to any interest credited hereunder,or in case title shall not he satisfactory to you at any time during the term of this division order,each of the undersigned agrees to furnish complete abstract of title and other evidence of title satisfactory to you and authorizes you to retain the purchase price of the oil without obligation to pay interest on the amount so withheld,until satisfactory indemnity shall be furnished you against such question.controversy,adverse claim or any such defects in title,or until any question,controversy,adverse claim or defect to owners'title is settled to your sat isfaction.In the event suit is filed in any court affecting title to oil purchased hereunder,either before or after severance. the undersigned agree to indemnify and save you harmless from any and all costs in connection with such action,including attorneys'fees:and further the undersigned agree to indemnify and save you harmless and any carrier transporting said oil for your account against any and all liability for loss,cost,damage and expense,including attorneys'fees,which you or the carrier may suffer or incur on account at receiving,transporting and paying us for said oil. FOURTH:The undersigned severally agree to notify you of any change of ownership and no transfer of interest shall be binding upon you until transfer order and the recorded instrument evidencing such transferor a certified copy thereof,shall be furnished you.Transfers at Interest shall be made effective on the first day of the calendar month in which notice is received by you.You are hereby relieved of any responsibility for determining If and when any of the interests hereinabove set forth shall or should revert to or be owned by other parties either as a result of the completion or discharge of money or other payments from said interests,or otherwise:and the signers hereof whose interests are affected by such money or other payments,if any,or by the reversion or change of an interest for any other reason, agree to give you notice in writing by registered letter addressed to you at Oklahoma City,Oklahoma,when any such money or other payments have been completed or discharged or when any other division of interest than that set forth above shall,for any reason,become effective and to furnish transfer orders accordingly,and that in the event such notice shall not be received,you shall be held harmless m the event of.and are hereby released from any and all damage or loss which might arise out of any overpayment.The undersigned hereby further agrees to reimburse you for all amounts incorrectly paid to the undersigned for the above-described property. FIFTH:Working Interest owners and/or Operators who sign this Division Order,and each of them,guarantee and warrant for your benefit and that of any pipeline or other carrier designated by you to run or transport said oil.that all oil tendered hereunder has been andtor will be produced In accordance with applicable laws and:or official rules and regulations. SIXTH:This Division Order shall become valid and binding on each and every owner above named as soon as signed by such owner,regardless of whether or not all of the above named owners have so signed and shall likewise be binding upon the heirs,personal representatives,successors and assigns of the parties hereto,and the undersigned hereby agree to all the terms and conditions of the Division Order now in effect and force. SEVENTH:You are authorized and directed to deduct operating expenses as furnished by the lease operator from the undersigned's interest.(if same is a participating or pooled working interest),as set out herein,in the oil produced and saved from the above described lands and remit same to the lease operator.The undersigned will look to the lease operator for detailed statements of all charges and credits of operating expenses at such rntervals as agreed upon by the operator and the undersigned working interest owner. SIGNQ, 'R;OE,WITNESSES SIGNgTURE OF OWNERS YOUR COPYAL SECURITY / / OR E.• !, +-' TAXPAYER NUMBER ATTEST: / /' (Z Jar/l79 t� W LERK TO -BOARD CONS ANCE L. HARE , N 03/24/93 BY• sY V iett . WELD COUNTY BOARD OF COMMISSIONERS 84-6000813 DEPUTY C RK TO BOARD ADDRESS: P.O. BOX 758 TELEPHONE: GREELEY, CO 80632 356-4000 X4225 IMPORTANT:To avoid delay in payment or tax penalties according to law,you must please show your correct address and your social security number or tax identification number. Individual signatures must be witnessed by two disinterested persons. 330250 341-Ole R9 9I QPCo. TOTAL Total Petroleum,Inc. SUITE 200 515 CENTRAL PARK DRIVE OKLAHOMA CITY, OKLAHOMA 73105-1702 - - TELEPHONE 405 525.8100 Date: March 2, 1993 Re: Lease #305847 - Pawnee Federal 1'4-6 Lease #305847-500 - PmWnee-Federal 14-6 To: WELD COUNTY BOARD OF COMMISSIONERS Weld County, Co lorpdo, PO BOX 758 District Court Clerk 'of Weld County Colorado GREELEY CO 80632-0758 Interest In accordance with documentation received by this office, an Amended Division Order is being issued herewith. Please have it executed by all parties returning the original to this office. REQUIREMENT: The following additional documentation must be provided to us before any transfer will be made on our records: THE ENCLOSED INSTRUMENT SHOULD NOT BE ALTERED IN ANY WAY UNLESS ACCOMPANIED BY DOCUMENTATION SUPPORTING THE ALTERATION. IF YOUR NAME AND INTEREST ARE CORRECTLY SHOWN: SIGNATURE: Sign your name as shown on the enclosed document. Have your signature witnessed by two disinterested people. If signing for a partnership, ALL of the partners must sign, unless a specific partner has been given signatory rights. A certified copy of his authority must be furnished. If signing for a corporation, the instrument must be executed by the president or vice president . The signature MUST be attested, corporate seal affixed and title of the signatory parties shown (e.g. signed by president, attested by corporate secretary). SIGNATURE BY If the enclosed instrument is signed by an Agent , Guardian, SECOND-PARTY: Attorney-In-Fact, Estate Representative, Trustee, or any party other than the named interest owner, evidence of the executory rights of the signatory party must be attached. SOCIAL SECURITY Please provide your social security or taxpayer identification NUMBER OR TAX number. Failure to furnish this number will result in a 31% IDENTIFICATION backup withholding tax in accordance with federal income tax law `7UMBER: and may subject you to a $50.00 penalty by the I.R.S. MAILING ADDRESS: Indicate in the space provided the proper check mailing address . PRINT OR TYPE. If you are already receiving checks from this company, please be certain to use the same address to which we are now mailing checks. LEASE NUMBER: The lease number that appears on the enclosed instrument will appear on the check detail and should ALWAYS be used when corresponding with this company. ADDRESS CHANGE: You should notify us PROMPTLY of any change in your mailing address. This notice must be over your own signature, or the signature of your appointed agent. CHECKS: No check will be issued by Total Petroleum unless $25.00 or more is accrued for a particular owner number, except in December when checks will be issued regardless of amount. PLEASE USE OUR ENCLOSED, SELF-ADDRESSED ENVELOPE TO RETURN THE EXECUTED INSTRUMENTS, WITHOUT DELAY, TO US. RETAIN THE EXTRA COPY FOR YOUR RECORDS. Sincerely, Charlotte Looper (405) 557-7036 930250 TOTAL Total Petroleum,Inc. SUITE 200 515 CENTRAL PARK DRIVE OKLAHOMA CITY, OKLAHOMA 73105,1702 TELEPHONE 405 525-5100 Date: March 2, 1993 Re: Lease #305848 - ,Pawnee 4-6, 6-6 & 12-6 Lease #305848-500 - 'Pawnee 4-6, 6-6 & To:WELD COUNTY BOARD OF COMMISSIONERS 12-6 PO BOX 758 Weld County, Colorado GREELEY CO 80632-0758 District Court Clerk of Weld County Colorado Interest In accordance with documentation received by this office, an Amended Division Order is being issued herewith. Please have it executed by all parties returning the original to this office. REQUIREMENT: The following additional documentation must be provided to us before any transfer will be made on our records: THE ENCLOSED INSTRUMENT SHOULD NOT BE ALTERED IN ANY WAY UNLESS ACCOMPANIED BY DOCUMENTATION SUPPORTING THE ALTERATION. IF YOUR NAME AND INTEREST ARE CORRECTLY SHOWN: SIGNATURE: Sign your name as shown on the enclosed document. Have your signature witnessed by two disinterested people. If signing for a partnership, ALL of the partners must sign, unless a specific partner has been given signatory rights. A certified copy of his authority must be furnished. If signing for a corporation, the instrument must be executed by the president or vice president . The signature MUST be attested, corporate seal affixed and title of the signatory parties shown (e.g. signed by president, attested by corporate secretary) . SIGNATURE BY If the enclosed instrument is signed by an Agent , Guardian, SECOND-PARTY: Attorney-In-Fact, Estate Representative, Trustee, or any party other than the named interest owner, evidence of the executory rights of the signatory party must be attached. SOCIAL SECURITY Please provide your social security or taxpayer identification NUMBER OR TAX number. Failure to furnish this number will result in a 31% IDENTIFICATION backup withholding tax in accordance with federal income tax law NUMBER: and may subject you to a $50.00 penalty by the I.R.S. MAILING ADDRESS: Indicate in the space provided the proper check mailing address. PRINT OR TYPE. If you are already receiving checks from this company, please be certain to use the same address to which we are now mailing checks. LEASE NUMBER: The lease number that appears on the enclosed instrument will appear on the check detail and should ALWAYS be used when corresponding with this company. ADDRESS CHANGE: You should notify us PROMPTLY of any change in your mailing address. This notice must be over your own signature, or the signature of your appointed agent. CHECKS: No check will be issued by Total Petroleum unless $25.00 or more is accrued for a particular owner number, except in December when checks will be issued regardless of amount. PLEASE USE OUR ENCLOSED, SELF-ADDRESSED ENVELOPE TO RETURN THE EXECUTED INSTRUMENTS, WITHOUT DELAY, TO US. RETAIN THE EXTRA COPY FOR YOUR RECORDS. Sincerely, Charlotte Looper (405) 557-7036 930 • leS OFFICE OF COUNTY ATTORNEY tO;V: PHONE(303)356-4000 EXT.4391 P.O. BOX 1948 GREELEY,COLORADO 80632 C. COLORADO March 8, 1993 Ms . Charlotte Looper Total Petroleum, Inc . 515 Central Park Drive, Suite 200 Oklahoma City, OK 73105-1702 RE : Question Regarding Royalty Interest for Two Division Orders Dear Ms . Looper: Enclosed are copies of two Division Orders for properties located in Section 6 , Township 8 North, Range 58 West of the 6th P.M. , Weld County, Colorado . The Division Orders are for oil and gas produced from the Pawnee Federal 14-6 well located in the southeast quarter of the southwest quarter of Section 6 , and for the Pawnee 4-6 , 6-6 , and 12-6 found in the west half of Section 6 . We are currently uncertain as to how your company figured the royalty interest for both of these division orders . Therefore, we respectfully request that your company provide some information which will explain these respective royalty interests . Please call me at ( 303) 356-4000, Extension 4389 if you wish to discuss this matter by telephone. Very truly yours , Bruce T. Barker ---- Assistant Weld County Attorney BTB/gb: looper Enclosure 93025c r ., ; ,n TOTAL Total Petroleum,Inc. SUITE 200 515 CENTRAL PARK DRIVE OKLAHOMA CITY. OKLAHOMA 7 3105-1 70 2 TELEPHONE 405 525-8100 (405) 557-7036 March 12, 1993 r15 ` 1 Mr. Bruce T. Barker . , p; i! !' Assistant Weld County Attorney 1993 P. O. Box 1948 I_ U Greeley, Colorado 80632 El 1_0 00UNTY A1:ORNEY'S OFFICE RE: Pawnee Federal 14-6 (#305847 & 305847-500) Pawnee Federal 4-6,6-6 & 12-6 (#305848 & 305848-500) Weld County, Colorado Dear Mr. Barker: In response to your letter of March 8, 1993, please be advised that our Amended Division Orders covering the referenced leases, dated March 2, 1993, were prepared based on a copy of the Order Approving Stipulation of Interest and Agreement of Settlement of Claims and the subject Stipulation Agreement. This Order and Stipulation Agreement pertains to Case No. 88-CV-290, Fina Oil and Chemical Company, Plaintiff v. Ewing Investment Company, et al, Defendants, and was forwarded to this office by Dante L. Zarlengo, attorney for Fina. We are enclosing copies of the Order and Stipulation for your review. Should you have further questions please feel free to contact me. Very truly yours, CitQ/Li LOp Charlotte Looper Division Order Analyst CL:dal Enclosures 920250 DISTRICT COURT, COUNTY OF WELD, COLORADO Case No. 88-CV-290 ORDER APPROVING STIPULATION OF INTEREST AND AGREEMENT FOR SETTLEMENT OF CLAIMS FINA OIL AND CHEMICAL COMPANY, Plaintiff, v. EWING INVESTMENT COMPANY, a general partnership, TEXACO, INC . , and HOMER E . NORTHUP, WELD COUNTY, COLORADO, ROBERT M. GILBERT, MILE HI OIL & GAS, INC . , COMMONWEALTH ENERGY ASSOCIATES, LP III , Defendants . COMES NOW the Court and accepts the Stipulation of Interest and Agreement for Settlement of Claims as an Order of Court and directs the Clerk of the Court to distribute the funds as set forth therein and further orders that said distribution be adjusted in accordance with Orders of this Court dated May 21 , 1992 directing distributions to Defendants Homer E . Northup and Ewing Investment Company, and September 16 , 1992 directing distribution to Defendant Robert A. Gilbert. DONE this a day of , 1993 . BY THE COURT: " /1/4% District Court Judge ' uMsto Orden 930250 Notice: The above and foregoing Order Approving Stipulation of Interest and Agreement for Settlement of Claims has been filed with the Court. You have 18 days, from the date of mailing, to object to the form of the Order, pursuant to § 1-16 , Rule 121, C.R.C.P. , by filing, in writing, with the Clerk to Division II, objections and suggested modifications to the form of the Order. 9302•5p CERTIFICATE OF MAILING The undersigned hereby certifies that a true and correct copy of the foregoing proposed ORDER APPROVING STIPULATION OF INTEREST AND AGREEMENT FOR SETTLEMENT OF CLAIMS was placed in the United States mail, postage prepaid, addressed to : Dante L. Zarlengo 1801 Broadway, Suite 1600 Denver, CO 80202 Thomas W. Neibrugge 1665 Grant Street Denver, CO 80203 Melvin Dinner 630 Greeley National Plaza Greeley, CO 80631 William H. Southard 309 United Bank Building 1025 9th Avenue Greeley, CO 80631 DATED this l ( day of A C,LLL(tt t , 1993 . � � J 93025g DISTRICT COURT, COUNTY OF WELD, COLORADO Case No. 88-CV-290 STIPULATION OF INTEREST AND AGREEMENT FOR SETTLEMENT OF CLAIMS FINA OIL AND CHEMICAL COMPANY, Plaintiff, v. EWING INVESTMENT COMPANY, a general partnership, TEXACO, INC. , and HOMER E . NORTHUP, WELD COUNTY, COLORADO, ROBERT M. GILBERT, MILE HI OIL & GAS, INC . , COMMONWEALTH ENERGY ASSOCIATES, LP III, Defendants . THIS STIPULATION OF INTEREST AND AGREEMENT FOR SETTLEMENT OF CLAIMS was entered into the date and year hereinafter stated by and between Fina Oil and Chemical Company, having a primary place of business at 1601 Northwest Expressway, Suite 900, Oklahoma City, Oklahoma 73112 , hereinafter referred to as "Fina" ; the Board of County Commissioners of Weld County, Colorado, having their place of business as 915 Tenth Street, Greeley, Colorado, hereinafter referred to as "County" ; Ewing Investment Company, a general partnership, in c/o Melvin Dinner, 630 Greeley National Plaza, Greeley, Colorado, having its place of business in Weld County, Colorado, hereinafter referred to as "Ewing" ; Homer E. Northup, c/o Melvin Dinner, 630 Greeley National Plaza, Greeley, Colorado, hereinafter referred to as "Northup" ; Robert M. Gilbert, 1025 Ninth Avenue #309 , Greeley, Colorado, hereinafter referred to as "Gilbert" ; Commonwealth Energy Associates, LP III , having its place of business as c/o William L. Taylor, Registered Agent, 1 James Center, 906 East Carey Street, Richmond, Virginia 23219 , hereinafter referred to as "Commonwealth" and Mile Hi Oil and Gas , Inc . , having its place of business as c/o Howard L. Kennedy, Registered Agent, 3190 South Wadsworth Blvd. , Lakewood, Colorado 80227 , hereinafter referred to as "Mile Hi . " The parties may be referred to herein as the "parties" . The parties have conflicting claims to the oil and gas leasehold estate underlying the subject property described as : T8N, R58W, 6th P .M. , Weld County, Colorado, Section 6 : NW} , N}SW} , SW}SW# , also described as Lots 8, 9 , 10, 11, 12 , 13 and 14 , in accordance with resurvey plat dated April 18, 1919 . LMViSion ordere MAR 1 199 930250 RECITALS : I . Recitals : a. Fina claims an undivided interest in and to the oil and gas leasehold estate covering the subject lands . Fina ' s claim to an undivided interest in the oil and gas leasehold estate pertaining to the subject lands was based upon the following oil and gas leases : 1 . Oil and Gas Lease dated December 4 , 1985, recorded at Book 1094 , No. 02035216 , Weld County, Colorado, records from Weld County in favor of Rio Grande Exploration Company, now owned by Fina . 2 . Oil and Gas Lease dated January 28, 1988, recorded June 9 , 1988 , in Book 1198, No. 02144177 , the records of the Clerk and Recorder for Weld County, Colorado, from J. Chalmers Ewing for Ewing Investment Company, a partnership, to Fina Oil and Chemical Company, covering the subject lands . 3 . Oil and Gas Lease dated May 9 , 1988, recorded in Book 1201 , at Page 02146976 , of the records of the Weld County Clerk and Recorder, from Homer E . Northup and spouse to Fina Oil and Chemical Company, covering the subject lands . b. Defendant, Ewing Investment Company, claims an interest in and to the mineral estate underlying the subject lands by virtue of a deed dated January 10 , 1933 , from Gagan Land Corporation to Louise C . Ewing recorded in Book 942 , at Page 199, of the records of the Weld County Clerk and Recorder. Defendant, Ewing Investment Company, has succeeded to the interest of Louise C. Ewing. c . Defendant, Homer E . Northup, claims an interest in the subject land by virtue of a Deed dated February 23, 1932 , recorded in Book 929 , at Page 202 , of the records of the Weld County Clerk and Recorder from the Gagan Land Corporation to Homer E . Northup. Subsequent conveyances by Homer E. Northup retained the entire mineral estate in oil , gas , and other minerals to him. d. Defendant, Board of County Commissioners of Weld County, Colorado, claims an interest in and to the subject lands by virtue of property tax deed 2 930250 proceedings . The subject lands were assessed for taxation for the year 1931 by Weld County. Pursuant to that assessment, Tax Sale Certificate 2522 was issued on December 31, 1932 , in favor of Weld County. The Tax Deed was issued by the Weld County Treasurer in favor of Weld County, dated May 15 , 1939 , recorded in Book 1042 , at Page 456 , of the records of the Clerk and Recorder of Weld County, Colorado . e. Defendant, Robert M. Gilbert claims an interest in and to the subject lands by virtue of a Treasurer ' s deed dated January 20, 1952 , recorded in Book 1324 , page 192 , of the records of the Weld County Clerk and Recorder from the Weld County Treasurer in favor of Robert M. Gilbert (a one- fifth interest) and Mel C. Bedinger (a one-fifth interest) . One-half of the interest of Mel C . Bedinger was conveyed through various mesne distributions and conveyances to Commonwealth (a one-twentieth interest) and to Mile Hi (a one- twentieth interest) . f . Mile Hi and ,Commonwealth claim an interest in and to the oil and gas leasehold estate underlying the subject lands by virtue of the following oil and gas leases and deeds : 1 . Oil and Gas Lease dated April 16 , 1987 , recorded in Book 1154 , No. 02097504 , of the records of the Weld County Clerk and Recorder from Robert M. Gilbert to Mile Hi Oil and Gas , Inc . This Oil and Gas Lease is presently owned by Commonwealth Energy Associates , LP III , and Mile Hi Oil and Gas , Inc . 2 . Oil and Gas Lease dated April 7 , 1987 , recorded in Book 1154 , No. 02097502 , of the records of the Weld County Clerk and Recorder from Lynne B. Mickel, formerly known as Lynne Bedinger Bergman, to Mile Hi Oil and Gas , Inc . This Oil and Gas Lease is now owned by Commonwealth and Mile Hi . 3 . Oil and Gas Lease dated April 7 , 1987, from Barry Clay Bedinger to Mile Hi Oil and Gas, Inc . , recorded in Book 1154 , No. 02097503 . Barry Clay Bedinger ' s interests are currently held by Commonwealth and Mile Hi . . This Oil and Gas Lease is now owned by Commonwealth Energy Associates , LP III , and by Mile HI Oil and Gas , Inc . 3 9430250 4 . Mineral Deed dated April 3 , 1989 , from Dan T. Clark to Commonwealth Energy Associates-III , LP recorded in Book 1232 , No. 02179846 , records of the Weld County Clerk and Recorder and effective May 16 , 1988 . 5 . Mineral Deed recorded 12/14/90 from Daniel T. Clark to Mile Hi Oil and Gas , Inc. , recorded in Book 1285 , No . 2235977 , records of the Weld County Clerk and Recorder (effective September 30 , 1990 ) . g. That pending adjudication of matters in Case No. 88-CV-290, there has been deposited into the Registry of the Court into a suspense fund, the decimal interest amount of . 0879488 on the Northwest Quarter and West Half Southwest Quarter of Section 6 , Township 8 North, Range 58 West and . 0439963 on East Half Southwest Quarter of Section 6, Township 8 North, Range 58 West of the 6th Principal Meridian, Weld County, Colorado, of the oil and gas proceeds which includes Lot 15 (containing 40 . 03 acres ) . Ownership of lot 15 ( Southeast Quarter Southwest Quarter of Section 6 , Township 8 North, Range 58 West) is not subject to dispute. h. A dispute exists between County, Gilbert, Ewing, Northup, Commonwealth and Mile Hi concerning present ownership of an undivided interest in and to oil , gas , and other minerals pertaining to the subject lands . Civil Action No. 88-CV-290 has been filed in the District Court of the County of Weld, State of Colorado, to determine the rights of these parties and other parties with respect thereto. i . The parties desire to settle the existing dispute between and concerning ownership of oil, gas , and other mineral rights underlying the subject lands, on the terms and subject to the conditions and covenants contained in this agreement . j . Defendant, Commonwealth Energy Associates LP III , has disclaimed any interest in the litigation to the extent said interests were in dispute as of May 31 , 1989 , but would retain any interest received through the Mineral Deed from Dan T. Clark dated April 3, 1989 . k. Defendant, Mile Hi Oil and Gas, Inc . , has neither answered nor defended the Complaint or Amended Complaint . Mile Hi would retain any interests 4 930250 4 . Fina Oil and Chemical Co . : ( For production thru 9/30/90) . 0185692 ( For production after 9/30/90) .0185692 5 . Mile Hi : ( For production thru 9/30/90) . 000 (For production after 9/30/90) . 0116059 Total in Suspense : (For production thru 9/30/90) 1 . 00000000 (For production after 9/30/90) 1 . 00000000 Said distribution is based upon Northup and Ewing ' s relinquishment of their claims and upon the disclaimer and default of Commonwealth (as to its working interest) , Mile Hi (as to part of its royalty interests and all of its overriding royalty interests ) , and Texaco. c . Prior to distribution of the suspense fund, there shall be assessed against the fund the sum of $3, 200 . 00 for attorney' s fees to the stakeholder Fina, through its attorney, Dante L. Zarlengo, in full and final settlement for all such claims incurred during the course of this litigation. Payments to be charged to the parties share of the suspense fund as follows : Weld County $2 , 852 . 38 Gilbert $ 213 . 92 Commonwealth $ 37 . 14 Fina $ 59 . 42 Mile Hi $ 37 . 14 d. The Clerk of the Court is directed to dispense the sum of $6 , 700 . 00 to Northup and $1 , 300 . 00 to Ewing in full and final settlement of any claim each may have for ownership to the oil, gas , and mineral estate underlying the subject property including any claim of ownership or royalty interest. The payment shall be taken from the suspense fund prior to distribution of the proceeds and charged to the fund as follows : 6 930250) Weld County $7 , 130 . 95 Gilbert $ 534 . 80 Commonwealth $ 92 . 85 Fina $ 148 . 55 Mile Hi $ 92 . 85 e. With respect to lots 8 , 9 , 10, 11 , 12 , 13 & 14 , the oil and gas interests of the parties are determined as follows : . \ ,i :J ‘ a ) MINERALS : OIL AND GAS ONLY Q L� Royalty Owner Interest Weld County, Colorado : (Thru 9/30/90 ) 3/5 (After 9/30/90 ) 3/5 Robert M. Gilbert : (Thru 9/30/90 ) 1/4 (After 9/30/90 ) 1/5 Commonwealth Energy Associates LP III (Thru 9/30/90 ) 1/20 (After 9/30/90) 1/20 Mile Hi Oil & Gas , Inc. : (Thru 9/30/90) 1/10 (After 9/30/90 ) 3/20 Overriding Royalty Owner 5% X 1/5 X Mile Hi Oil & Gas , Inc . 62 . 5% + 2% X 1/5 X 62.5% 7 930250 Working Interest Owner Fina Oil & Chemical Co . 60% Commonwealth Energy Associates LP-III 25% Mile Hi Oil & Gas , Inc . 15% f . The distribution of any further proceeds from Lots 8 through 15 under the leases described herein shall be as follows , accounting for Northup and Ewing ' s relinquishment of claim and the disclaimer and partial Default of Commonwealth and Mile Hi : DISTRIBUTION OF PROCEEDS Royalty ( For production through 9/30/90) Owner Decimal Interest Weld County: (Lots 8-11 , 13 & 14 ) . 0783948 (Lots 12 & 15 ) . 0392169 Robert M. Gilbert : (Lots 8-11 , 13 & 14 ) . 0425488 (Lots 12 & 15 ) . 0212850 Commonwealth: (Lots 8-11 , 13 & 14 ) . 0062942 (Lots 12 & 15 ) . 0031486 Mile Hi Oil & Gas , Inc . :(Lots 8-11 , 13 & 14 ) . 0105470 (Lots 12 & 15 ) . 0052761 United States : . 000 (Lots 8-11 , 13 & 14 ) .0624689 (Lots 12 & 15 ) Totals : (Lots 8-11 , 13 & 14 ) . 1377848 (Lots 12 & 15 ) . 1313955 8 930250 Royalty ( For production after 9/30/90 ) Owner Decimal Interest Weld County: 3O.58 5 (Lots 8-11 , 13 & 14 ) . 0783948 30s$Ne)__--(Lots 12 & 15) . 0392169 ‘ Robert M. Gilbert : ( Lots 8-11 , 13 & 14 ) . 0362546 ( Lots 12 & 15 ) . 0181363 1: Commonwealth: (Lots 8-11 , 13 & 14 ) . 0062942 ( Lots 12 & 15 ) . 0031486 ', , Mile Hi : (Lots 8-11 , 13 & 14 ) . 0168412 (Lots 12 & 15 ) . 0084248 ' United States : (Lots 8- 11 , 13 & 14 ) . 000 (Lots 12 & 15 ) . 0624689 Totals : (Lots 8-11 , 13 & 14 ) . 1377848 (Lots 12 & 15 ) . 1313955 Overriding Royalty Owner Decimal Interest Mile Hi Oil and Gas , Inc . : (Lots 8-d1 , 13 & 14 ) . 0073828 (Lots 12 & 15 ) . 0036932 AQ, D & J Trust : (Lots 8-11 , 13 & 14 ) . 0249876. 000 (Lots 12 & 15 ) Texaco, Inc . : (Lots 8-11 , 13 & 14 ) . 0075000 (Lots 12 & 15 ) . 0037518 Totals : (Lots 8-11 , 13 & 14 ) . 0148828 (Lots 12 & 15 ) .0324326 9 930250 Working Interest Owner Decimal Interest Fina Oil and Chemical : (Lots 8- 11 , 13 & 14 ) . 5175707 (Lots 12 & 15 ) . 2589147i Commonwealth Energy Assoc . , LP-III : (Lots 8- 11 , 13 & 14 ) . 2026367 (Lots 12 & 15 ) . 1013689jf‘ Mile Hi Oil and Gas , Inc . : (Lots 8- 11 , 13 & 14 ) . 1271250 . (Lots 12 & 15 ) . 0635942( Eagle Exploration: (Lots 8-11 , 13 & 14 ) . 000 ( Lots 12 & 15 ) . 4122941 Totals : (Lots 8-11 , 13 & 14 ) . 8473324 (Lots 12 & 15 ) . 8361719 GRAND TOTALS : (Lots 8-11, 13 & 14 ) 1 . 0000000 (Lots 12 & 15 ) 1 . 0000000 g. Fina may rely upon the terms and provisions of this Stipulation of Interest and Agreement for Settlement of Claims in distribution of proceeds from the sale of oil or gas produced from the subject lands . Fina is hereby released and discharged from any and all claims, debts , actions or liability incurred by or relevant to the payment of production proceeds in the manner described in this document . The parties agree to execute such additional instruments as Fina may reasonably request to facilitate future distribution of proceeds . The parties ratify and approve the payment of production proceeds heretofore made by Fina insofar as such payments pertain to the interest in dispute as described in this action. 10 930250 IV. General Provisions a. This Agreement shall be deemed a covenant running with the land and shall be binding upon the parties , their heirs , successors, and assigns, and on future owners of any interest in the subject lands created by, through, or under the parties hereto. b. The parties agree to execute and deliver such other and further instruments as may be necessary or appropriate to evidence and implement the intent expressed herein . c. This Agreement is subject to approval of Weld County District Court pursuant to Action No. 88- CV-290 to the extent required by the Colorado Rules of Civil Procedure. d. This Agreement contains and constitutes the entire agreement between the parties . There are no oral or written representations, agreements, or statements between the parties relative hereto which the parties intend to be effective that are not contained in this Agreement. All such prior communications are deemed merged into the terms and provisions thereof . This Stipulation addresses title to the mineral interests and net royalty interest but is not intended to address any issues regarding the value of the proceeds from the subject properties . e. Each party represents and warrants : 1 . That it presently owns an interest in the subject land to the extent represented by the documents described in and the recitals contained in Article I , above, and that that interest has not been conveyed, pledged, mortgaged, encumbered, or otherwise assigned to any other party. 2 . Each party has the authority to enter into the terms and provisions of this Agreement and the executing party is authorized to do so. 3 . This Agreement is within the power of each party to execute and deliver, and is a binding legal obligation of the party. 11 9.30250 f . The parties jointly move for the entry of default against Defendant Mile Hi Oil and Gas, Inc . , covering part of its interests herein as no response or entry of appearance has been made and service has been made on the Defendant. Attached is an Affidavit pursuant to Rule 121 , Section 1 - 14 (b) , in support thereof . WHEREFORE, the parties hereto respectfully request that this Stipulation be made an Order of Court, that this matter be dismissed with prejudice following own,disbursementas otherwise of the suspense ne fund with each party to pay forth herein. FINA OIL AND CHEMICAL COMPANY By: tC. Lffldlf / Title: Attorne -in-Fa t June 7, 1991 Date Signed State of Oklahoma ss County of Oklahoma The foregoing STIPULATION OF INTEREST AND AGREEMENT FOR SETTLEMENT OF CLAIMS was acknowledged to C.ome Lindley this 7th day ay of June , 1991, by Richard Attorney-in-Fact of Fina Oil and Chemical Company. ,e°; LWLE ess my hand and official seal . 1 : � r ( .I A L) 1 ,;••. (1-to°,. N tart' Publi Jeania Luber My commission expires : May 23, 1993 12 930250 LAW OFFICES OF DANTE L. ZARLENGO By . DANitatd(444/6, ZARLE #2 93 1801 Broadway, Suite 1600 Denver, Colorado 80202 ( 303 ) 295-7357 Attorney for FINA OIL AND CHEMICAL COMPANY, Plaintiff BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY, COLORADO By: Title: Chairman Date Signed State of ) ss County of ) The foregoing STIPULATION OF INTEREST AND AGREEMENT FOR day SETTLEMENT OF CLAIMS was acknowledged to me this ays of , 1991 , by Chairman of , the Board of County C ommissio ners of Weld County, Colorado. Witness my hand and official seal . (S E A L) Notary Public My commission expires : 13 930250 THOMAS O. DAVID WELD COUNTY ATTORNEY By: LEE D. MORRISON #8067 Assistant County Attorney 915 Tenth Street P . O. Box 1948 Greeley, Colorado 80632 ( 303 ) 356-4000 , Ext . 1391 Attorneys for WELD COUNTY, COLORADO, Defendant COMMONWEALTH ENERGY ASSOCIATES, LP III By: Title: Date Signed State of ss . County of The foregoing STIPULATION OF INTEREST AND AGREEMENT FOR SETTLEMENT OF CLAIMS was abknowledged to me this s day of , 1991 , by a of Commonwealth Energy Associates , LP III . Witness my hand and official seal . (S E A L) Notary Public My commission expires : 14 930250 THOMAS W. NIEBRUGGE #8418 1665 Grant Street Denver, Colorado 80203 ( 303 ) 830-7127 Attorney for Commonwealth Energy Associates , LP III MILE HI OIL AND GAS, INC . By: Title: Date Signed State of ss . County of The foregoing STIPULATION OF INTEREST AND AGREEMENT FOR SETTLEMENT OF CLAIMS was acknowledged to me this day f , 1991 , by as of Mile Hi Oil and Gas , Inc . Witness my hand and official seal . (S E A L) Notary Public My commission expires : 15 930250 EWING INVESTMENT COMPANY By: Title: Date Signed State of ss County of The foregoing STIPULATION OF INTEREST AND AGREEMENT FOR SETTLEMENT OF CLAIMS was acknowledged to me this day of , 1991 , by as of Ewing Investment Company. Witness my hand and official seal . (S E A L) Notary Public My commission expires : DINNER, HELLERICH AND LAZAR By: MELVIN DINNER #592 630 Greeley National Plaza Greeley, Colorado 80631 ( 303) 352-2081 Attorneys for EWING INVESTMENT COMPANY, Defendant 16 930250 HOMER E. NORTHUP Date Signed State of ss County of ) The foregoing STIPULATION OF INTEREST AND AGREEMENT F to me this day OR 1991 SETTLEMENT OF CLAIMS wasacknowledged, by Homer E . Northup. of ' Witness my hand and official seal . (S E A L) Notary Public My commission expires : DINNER, HELLERICH AND LAZAR By' MELVIN DINNER #592 630 Greeley National Plaza Greeley, Colorado 80631 ( 303 ) 352-2081 Attorneys for HOMER E . NORTHUP, Defendant 17 930250 ROBERT M. GILBERT Date Signed State of ss County of The foregoing STIPULATION OF INTEREST AND AGREEMENT FOR SETTLEMENT OF CLAIMS was acknowledged to me this day of , 1991 , by Robert M. Gilbert . Witness my hand and official seal . (S E A L) Notary Public My commission expires : WILLIAM H. SOUTHARD ATTORNEY AT LAW WILLIAM H. SOUTHARD #1223 309 United Bank Building 1025 9th Avenue Greeley, Colorado 80631 ( 303 ) 353-1292 Attorney for ROBERT M. GILBERT, Defendant 18 90250 CERTIFICATE OF MAILING The undersigned hereby certifies that a true and correct copy of the foregoing STIPULATION OF INTEREST AND AGREEMENT FOR SETTLEMENT OF CLAIMS was placed in the United States mail , postage prepaid, addressed to: Richard H. Bate, Esq. 600 17th Street Suite 420 South Denver, CO 80202 DATED this day of , 19 SFINAOIL.RMM 19 930250 Hello