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RESOLUTION
RE: APPROVE OIL AND GAS DIVISION ORDER FROM ASSOCIATED TRANSPORT
AND TRADING COMPANY, P.O. BOX 5493 , DENVER, COLORADO 80217,
AND AUTHORIZE CHAIRMAN TO SIGN
WHEREAS, the Board of County Commissioners of Weld County,
Colorado, pursuant to Colorado statute and the Weld County Home
Rule Charter, is vested with the authority of administering the
affairs of Weld County, Colorado, and
WHEREAS, Weld County, Colorado, is the holder of a certain
lease with Nielson Enterprises, Inc. , and
WHEREAS, said lease covers land more particularly described
as follows:
TOWNSHIP 2 NORTH - RANGE 66 WEST
Section 26 : SF./4NE/4
Weld County, Colorado
WHEREAS, Associated Transport and Trading Company has
submitted an Oil and Gas Division Order on the subject property,
and
WHEREAS, Weld County is entitled to a one-eighth royalty
interest on production, and
WHEREAS, in order to receive said royalty interest, Weld
County must execute said Division Order, a copy of which is
attached hereto and incorporated herein by reference, and
WHEREAS, said Division Order has been reviewed by a member of
the Weld County Attorney' s staff and found to be in order, and
WHEREAS, the Board deems it advisable to approve said
Division Order on the parcel of land described herein.
NOW, THEREFORE, BE IT RESOLVED by the Board of County
Commissioners of Weld County, Colorado, that the Oil and Gas
Division Order as submitted by Associated Transport and Trading
Company, P.O. Box 5493 , Denver, Colorado 80217 , on the
hereinabove described parcel of land be , and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chairman be, and
hereby is , authorized to sign said Division Order.
901179
s,a sAiArn
Page 2
RE: DIVISION ORDER - ATTCO
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 26th day of
November, A.D. , 1990.
BOARD O
ATTEST: : � � r WELUNTYi,N COMMISSIONERS
CO TY CRADO
Weld County Clerk to the-Board Get �
R. Brantner, Chairman
BY: Geo ge Kenn dy, 'Pro-Te
c6
Deputy Clerk t the B _
APPROVED AS TO FORM: Constance L. ,Harbert
G��
C.W. .Kir
.4
County Attorney l
Gordd .
901179
y
41-1-(( .
ASSOCIKTEU TRANSPORT & TRADING-COMPANY _=
November 9, 1994
TO ALL INTEREST OWNERS:
•
Basin Exploration , Inc. has recently acquired all of Nielson
Enterprises Inc. ' s oil and gas properties in Colorado and has
reached an agreement with Associated Transport and Trading Company
to distribute the oil revenues from said properties and Associated
Natural Gas, Inc . to distribute the gas revenues. The effective
date of the change of the distribution from Nielson to Associated
will be October 1 , 1990.
To accommodate this transfer , enclosed please find Oil and Gas
Division Orders for execution in accordance with the attached
instruction sheet. Return to the below listed letterhead address
at your earliest convenience. Should executed Division Orders not
reach Associated Natural Gas, Inc, within 45 days, revenues will
be suspended pending receipt of same.
Oil checks are issued on the 20th of each month; gas checks
are issued on the last day of each month. Both ANGI and ATTCO have
a $25.00 minimum value before a check is issued . Monies less than
$25.00 remain in a minimum suspense account until the $25.00 is
reached or all monies are released once a year in December ( if the
minimum is not met ) .
On Working Interest ownership, Lease Operating Expenses will
be netted against revenue unless other arrangements are currently
in place with Basin.
ATTCO/ANGI look forward to being of service to you.
Yours very truly ,
ASSOCIATED TRANSPORT AND TRADING COMPANY
ASSOCIATED NATURAL GAS, INC.
1
Barbara L . Buck
Manager , Division Orders
BLB: bIg
Enclosure
900 REPUBLIC PLAZA • 370 SEVENTEENTH STREET • DEM/ER COLORADO 80202 • (303)595-3339 • FAX(303)595-0480
MAILING ADDRESS. P.O. BOX 5493 • DENVER, COLORADO 80217
LED°89
(CONDINED CAS AND OIL)
10; ASSOCIATED NATURAL SAS, INC. (*ANSI')
ASSOCIATES/ TAMEOC rt AID MOMS COMPANY t'ATTOD') •
Pest Office Err 5493 10747 (Gas)
Denver, Colorado 80217
ATTN: Walston Order Department - Loose No. 50403 (Oil )
Date November 9, 1990
Plant
the undersigned, end each Of us, certify and guarantee that we are the legal owners of and hereby warrant the title to our
respective interests in the proceeds derived from the sale of des end Oil (es more individually defined Weld
produced and
d
saved free the Badding di tease or unit located in the County or Perish of ,
State of Colorado more particularly described as follows:
TOWNSHIP 2 NORTH - RANGE 66 WEST
Section 26: SE/4NE/4
OIMER No. CREDIT TO DIVISION Of INTEREST DECIMAL
SEE ATTACHED EXHIBIT "A" FOR OWNERSHIP LISTING
Effective S:00 A.N. October 1 . 1990 . and until further notice, you are hereby authorized to take or retain
possession of all Ges and Oil iroe said property(ies) on and after the effective day and to give credit as set forth above for
all proceeds derived from the sale thereof frog said property(ies) subject to the conditions, covenants end directions set out
below:
FIRST: It is understood that the Gas produced free the above-described property(ies) is being sold
under that certain Gas Purchase and Processing Agreement dated October 12 , i9__aQ, between
Basin Operating Compagy as 'Seller' and ASSOCIATED NATURAL GAS,
INC. es 'Buyer', and that all terms and covenants contained therein, and in any amendments, extensions,
or renewals thereof shall govern and be binding upon the parties hereto in all respects which shall
include, but not be restricted to, the price to be paid for said Gas and the time when such payments
are to be made. As used in this Division Order, the term 'Gas' shall be deemed to include casinghead
gas, gasoline and all products which Associated Natural Gas, Inc. may receive and/or recover by
processing trot Gas produced fro, wells on said property(les).
All covenants appearing c the reverse side hereof are incorporated herein by reference and the undersigned agree that each shall
be deemed and considered an essential part of this Division Order in like manner and with the same effect as if printed above
our signatures.
The undersigned expressly waive any cleie against ANGI and ATTCO for any and all amounts which may be due us from others for
production prior to the effective date hereof.
s Sign Below Taxpayer identification or
Si tur 1 W ter hailing e ) Social Security la.mtwr
ATTEST: /� 84-6000813
e Board . Gene R. Brantner,Chairman
B Weld County Board of Coytmissinners
Dept k to the Board Address
} P.O. Box 758, Greeley, CO 80632
Address
Address
B 1283 REC 02234448 11/29/90 16: 42 40. 00 1/003
F 1651 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
901179
SFtriD: The word *Oils as wed herein shell Include, Out 1s rot timitud to, condensate end ell
Yrteteble 11qu1tl hydrocerbcv produced end Wiled hereunder, but am:Swains that recovered From
processing, of Wis. All Oil s lead and purchased hereunder shall be acre .able Oil end shell became
the property of ATTCO es aeon es the same it 'Stewed into its tweedy ow that Of any carrier It
designates. *TYCO shall not be expected t0 receive Oil 1n definite quantities, Nor for fixed periods,
new to provide storage.
TNIhD: The Oil received and purchased hereunder 'shell be delivered f.o.b. to ony carrier ATTCO
designates Which pothers and receives said Oil end ATCD agrees to pay for such oil to the undersigned
according to the division of interests herein specified at the price agreed upon between ATTCO and the
lease operator.
FOIIIITN: Quantities of Oil purchased hereunder shall be determined by the method of measureeent and
computation employed by ATTCO er ATTCO's spent designated to receive such Oil including but not by coy
Of lioitetion, the gauping of storm., tanks wing regularly compiled tank tables, the use of certified
truck gauges, and the we of Deters or eny other reasonably •[curate method of measureoent end
computation. ATTCO shall correct the vo4ae and gravity to es temperature of AO Fahrenheit and shall
deduct from such corrected volume the full percentages of basic sediment, water end ether impurities
•s shown by its test. ATTCO may refuse to receive any Oil 1t eonsiders to be not merchantable.
FIFTH: payments ere to be made monthly by checks of ANGI for Sam and ATTCO for Oil to be delivered
or mailed to the parties thereto entitled at the eddresses ebove given, provided that if the amount
due any owner is less than Twenty-live and 00/100 Dollars (825.00) per month, ANGI or ATTCO, at its
option, may defer the asking of such payment until such time as the aggregate amount due exceeds said
sum. The undersigned authorize ANGI and ATTCO to withhold lroe the proceeds of ony end all Gas end
Oil referred to herein, the amount of any tax placed thereon, or on the production thereof, including
but not halted to any severance, production or occupation tax, by any governmental authority, local,
state and/or federal, and to pay the same to our behalf with the proceeds so withheld.
lifxTN: In the event o1 any adverse claim of title or in the event title shell not be satisfactory to
ANGI or ATTCO at any time during the term of this Division Order, each of the undersigned agrees to
furnish complete abstracts of title and other evidence of title satisfactory to ANGI and/or ATTCO and
•uthorizes some to withhold payment without obligation to pay interest on the amount so withheld, until
satisfactory indemnity shall be furnished to ANG1 and ATTCO. Each u dersigned party •s to the interest
of such party hereunder respectively agrees, in the event suit is filed in any court affecting title
to said Gas end/or Oil, either before or after severance, to indemnify and save harmless ANGI and ATTCO
against any and all liability for loss, cost, damapc and expense which ANGI or ATTCO may suffer or incur
on account of receiving and paying said party the proceeds derived from the sale of said Gas and/or
Oil. Where ANGI and/or ATTCO, pursuant to the provisions hereof, withholds payment or any part thereof,
each undersigned party trot whom payment is withheld severally agrees to indemnify and hold ANG1 and
ATTCO harmless of and frog all liability for any tax, together with all interest and penalties incident
thereto, imposed or assessed against or psid by then on account of the sun or sums so withheld from
payment to said party and deduct all such taxes, interest and penalties so paid by tree frog any sums
owing by thee to said party. 11 .suit is filed affecting the interest of the undersigned, written
notice thereof shalt be given ANGI and ATTCO at the above address by the undersigned, together with
a certified copy o1 the complaint or petition filed. 11 ANGI o- ATTCO are made a party to such
proceedings, the undersigned sprees to indemnify same against any judgment redered therein and to
reimburse ANGI and ATTCO for any costs, attorney's fees or other expenses incurred in connection
therewith.
SEVENTH: The undersigned severalty spree to notify ANGI and ATTCO of any change of ownership and no
transfer of interest shall be binding upon ANGI or ATTCO until transfer order and the recorded
instrument evidencing such transfer, or a certified copy thereof, shell be furnished to ANGI or AT1C0.
Transfer of interest shall be made effective 8:00 s.s. on the first day of the calendar month in which
proper notice is received by ANGI ■nd ATTCO. ANGI and ATTCO are hereby relieved of any responsibility
for deteraining if and when any of the interests hereinebove set forth shall or should revert to or
be owned by other parties as • result of the completion of discharge of money or other payeents from
said interests and the signers hereof whose interests are affected by such money or other payments,
if any, agree to give ANGI and ATTCO notice in writing b> registered letter addressed to ANGI and ATTCO
et the above address, directed to Division Order Department, when, any such money or other payments have
beer, coe.pteted or discharged, or when any division: of interest other then that set forth above shall,
for eny reason, become effective and to furnish transfer order accordingly and that in the event such
notice shall not be received, ANGI and ATTCO shall be held hereless in the event of, and are hereby
released fror any and all desape or loss which might arise out of any overpayment. Should adjustments
be necessary. ANGI and ATTCO shall have rights (AA no duty) to set off any and all individual or joint
liabilities the undersigned has with same, including but not Limited to proceeds tree this and other
lease interests owned by the undersigned.
EIGHTH: If any portior, of the proceeds derived lroa the sale of Gas is subject to refund under any
order , rule or regulation of the Federal Energy Regulatory Commissi
on ot the provisions o1 the Nature
Gas Act or Natural Gas Policy Act 01 1978, ANGI may hold without interest the portion, of the proceeds
subject to refund unless indemnity satisfactory to ANGI has been furnished, or until ANG1's refund
obligation hes been finally determined. If any portion of the proceeds derived trot the sale of Gas
is paid over by ANGI under any order, rule or regulation of the Federal Energy Regulatory Commission
or the provisions of the Natural Gas Act or Natural Gas Policy Act of 1978, ANGI and ATTCO are
authorized to recover the amount of the refund applicable to the interest of each of the undersigned
few future payments (Gas and Oil) or al ANGI's election, it may invoice the undenipned therefor, plus
the legal rate of interest ANGI is or may be required to pay in connection with the undersigned's
portion of the refund.
NINTH: I1 the undersigned is a working interest comer an"d/or operator, he or she guarantees and
warrants that all Ges and Oil tendered hereunder has been or will be produced and delivered in
eomrrlienre with ell ape:,irebte federal , state a^.r, fore laws. orders, rules and regulations.
TENTH: This Division Order shall become valid sad binding upon each and every owner above name" upon
executior hereof by such owner regardless of whether or not any of the other above-named owners.have
so sip-leo. No termination of this Division Orde shell be effective without giving thirty (SD) days
pea o- written notice, If the provisions of this Division Oder are in conflict with the provisions
of any oil and pes lease covering the above-described property(ies), thr provisions of this Division
Orde- shell prevail . Ea cl unde.-signed owner ratifies tiro confirms his oil and pa' lease as being in
full fo-cc ant effect as of the date hereof. lr. consideretior, of tht purchase of Gas and Dil hereunde- ,
eonse-.t is givr! ANF1 tint ATTCC and any pipe'.ine company Vh1Ch cant ea-y Cause lc connect with the wells
ant tads or seid Cant, tc disconnect and remove Such pipetinrs, in case of termination by ether ANG1
or AT1CC o' the unoe'signef of any purchases under this Divitio- Oroe- . In the event of eonftict
be;wee the provisions of treat Division. Oroe. erg apC' icsb'.e ie. D, rep=lstions, the provisions of this
Divtsio" Drat' shell be deems motifieC sc as tc com::ly Witt sic' la. or reg.tetion
B 1283 REC 02234448 11/29/90 16: 42 X0. 00 2/003
F 1652 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
EXHIBIT A
50403 -
OWNER- NO CREDIT TO PERCENTAGE INTEREST
2620 MACEY & MERSHON OIL INC. 2. 500000 OI
12753 C A PATCHEN 0. 500000 OI
28846 ROBERT L SNYDER 0. 691250 OI
28851 JOHN D CRANOR 0. 875000 OI
22971 WELD COUNTY C/O ge° 6. 250000 RI
BOARD OF COUNTY COMMISSIONERS
29471 SYLVESTER J LADDING AND 7. 500000 RI
DOROTHY ANN BADDING J/T
28231 COLTON & COLTON 8. 316960 WI
28625 BASIN EXPLORATION INC FOR 71. 558750 WI
NIELSON PROPERTIES
28866 DONNA STORM BARROW TTEE 0. 904020 WI
NINA SUE STORM 1989 TRUST
43414 RICHARD R. STORM 0. 904020 WI
*** 100. 000000
03
B 1283 REC 02234448 11/29/90 16: 4REGORDE0.00 CO,F 1653 MARY ANN FEUERSTEIN
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