HomeMy WebLinkAbout931179.tiff RESOLUTION
RE: APPROVE OIL AND GAS DIVISION ORDER TO ASSOCIATED NATURAL GAS, INC. , FROM
DACONO OIL COMPANY 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, has received an Oil and Gas Division Order
to Associated Natural Gas, Inc. , P.O. Box 5493, Denver, Colorado 80217, from
Dacono Oil Company, and
WHEREAS, said Division Order covers land more particularly described as
follows:
Township 2 North, Range 66 West, 6th P.M.
Section 6: WISE*
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 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 to Associated Natural Gas,
Inc. , P.O. Box 5493, Denver, Colorado 80217, from Dacono Oil Company, on the
hereinabove described parcel of land be, and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chairman be, and hereby is,
authorized to sign said Division Order.
931179
L±009 C'C : f1NGl
DIVISION ORDER - ASSOCIATED NATURAL GAS, INC.
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 15th day of November, A.D. , 1993.
1) A / /� / BOARD OF COUNTY COMMISSIONERS
ATTEST: A 1 ,,,,,/(/ �LJ/� WELD COUNTY, COLORADO
/ D
Weld County Clerk to the Board
71-
Deputy/ / J� Constance L. Har ert Chairman
BY.� Cler
t the
Boa d
Cler to the Boar W. H. Webster, Pr -Tem
APPROVED AS TO FORM: e 7
Georg . Baxt
o my Attorn y e K. Hall
i�-
arbara J. Kirkme er
931179
DIVISION ORDER
(COMBINED GAS AND OIL)
AR2361202 REVISED & SUPPLEMENTAL
Gas Lease No. 46016
TO: ASSOCIATED NATURAL GAS, INC. ("ANGI") Oil Lease No. 51514
ASSOCIATED TRANSPORT & TRADING CO. ("ATTCO")
P.O. Paz 5493
Denver, CO 80217 Date: November 3, 1993
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 in the proceeds derived from the sale
of Gas & Oil (as more individually defined herein) produced and saved from the Miller-Elton
Raul lease or unit, located in the County or Parish of Weld, State of Colorado, more
particularly described as follows:
Township 2 North. Range 66 West
Section 6: W/2SE/4
Owner No. Credit To Division of Interest Decimal
1129 Weld County 0.284375% RI 0.00284375
40345 Elton N. Miller & 12.10625% RI 0.1210625
Catherine S. Miller
587 Farmers Reservoir & Irrigation Co. 0.131250% RI 0.0013125
39457 Basin Exploration, Inc. 87.478125% WI 0.87478125
Effective at 8:00 A.M. October 1,1993 and until further notice, you are hereby authorized to take or retain possession of all
Gas frail said property(ies) on and after the effective day and to give credit as set forth above for all proceeds derived frail
the sale thereof from said property(ies) subject to the conditions, covenants and directions set out below:
FIRST: It is understood that the Gas produced from the above-described property(ies) is being sold under that certain Gas
Purchase and Processing Agreement dated November 1, 1991 between Dacono Oil Company as "Seller" and Associated Natural Gas, Inc.
as "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 other products which Associated Natural Gas Inc. may receive and/or recover by
processing fran gas produced from wells on said property(ies).
All covenants appearing on the reverse side hereof are incorporated herein by reference and the undersigned agree that each shall
be deemed and considered an essential part rf this Division Order in like manner and with the same effect as if printed above
our signatures.
The undersigned expressly waive any claim against "ANGI" or "ATTCO" for any and all amounts which may be due us from others for
production prior to the effective date hereof.
Signatures of Witnesses Owners Sign Below Taxpayer I.D. Number or
(Enter MailinggAddress) Social Security Number
ATTEST: a . Gz 84-6000813
WELL/COUNTYCyL�ERK TO BOARD " CONSTANCE L. HARBERT, CHAIRMAN 11/17/93
BY: Vii.14 Address WELD COUNTY BOARD OF COMMISSIONERS
DEPUTY ZtLERK TO BOARD
P.O. BOX 758, GREELEY, CO 80632
Address
Address
ORIGIN ¢
MNM:ls
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B 1413 REC 02361202 11/24/93 15 : 57 $0 .00 1 /002
F 1381 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
5:2117S
SECOND: The word "Oil" as used herein shall include, but is not limited to, condensate and ell marketable liquid
hydrocarbons produced and saved hereunder, but excluding that recovered from processing of Gas. ALL Oil received and
purchased hereunder shall be merchantable Oil and shall became the property of "ATTCO" as soon as the same is received
into its custody or that of any carrier it designates. "ATTCO" shall not be expected to receive Oil in definite
quantities, nor for fixed periods, nor to provide storage.
THIRD: The Oil received and purchased hereunder shall be delivered f.o.b. to any carrier "ATTCO" designates which
gathers and receives said Oil and "ATTCO" agrees to pay for such Oil to the undersigned according to the division of
interest herein specified at the price agreed upon between "ATTCO" and the Lease operator.
FOURTH: Quantities of Oil purchased hereunder shall be determined by the method of measurement and computation
employed by "ATTCO" or "ATTCO's" agent designated to receive such Oil including but not by way of limitation, the
gauging of storage tanks using regularly compiled tank tables, the use of certified truck gauges, and the use of meters
or any other reasonably accurate method of measurement and computation. "ATTCO" shall correct the volume and gravity
to a temperature of 60 Fahrenheit and shall deduct from such corrected volume the full percentages of basic sediment,
water and other impurities as shown by its test. "ATTCO" may refuse to receive any Oil it considers to be not
merchantable.
FIFTH: Payments are to be made monthly by checks of "ANGI" for Gas and "ATTCO" for Oil to be delivered or mailed to
the parties thereto entitled at the addresses above given, provided that if the amount due any owner is less than
Twenty-five and no/100 Dollars ($25.00) per month, "ANGI" or "ATTCO", at its option, may defer the making of such
payment until such time as the aggregate amount due exceeds said sum. The undersigned authorize "ANGI" and "ATTCO"
to withhold from the proceeds of any and all Gas and Oil referred to herein, the amount of any tax placed thereon, or
on the production thereof, including but not limited to any severance, production or occupation tax, by any
governmental authority, local, state and/or federal, and to pay the same in our behalf with the proceeds so withheld.
SIXTH: In the event of any adverse claim of title or in the event title shall 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 authorizes same to withhold payment without
obligation to pay interest on the amount so withheld, until satisfactory indemnity shall be furnished to "ANGI" and
"ATTCO". Each undersigned party as to the interest of such party hereunder respectively agrees, in the event suit is
filed in any court affecting title to said Gas and/or Oil, either before or after severance, to indemnify and save
harmless "ANGI" and "ATTCO" against any and all liability for loss, cost, damage and expense which "ANGI" or "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 pert thereof, each
undersigned party from whom payment is withheld severally agrees to indemnify and hold "ANGI" and "ATTCO" harmless of
and from all liability for any tax, together with all interest and penalties incident thereto, imposed or assessed
against or paid by them on account of the sum or sums so withheld from payment to said party and deduct all such taxes,
interest and penalties so paid by them from any sums owing by them to said party. If suit is filed affecting the
interest of the undersigned, written notice thereof shall be given "ANGI" and "ATTCO" at the above address by the
undersigned, together with a certified copy of the complaint or petition filed. If "ANGI" or "ATTCO" are made a party
to such proceedings, the undersigned agrees to indemnify same against any judgment rendered therein and to reimburse
"ANGI" and "ATTCO" for any costs, attorney's fees or other expenses incurred in connection therewith.
•
SEVENTH: Trip undersigned severally agree 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, shall be furnished to "ANGI" or "ATTCO". Transfer of interest shall be made
effective 8:00 A.M. on the first day of the calendar month in which proper notice is received by "ANGI" and "ATTCO".
"ANGI" and "ATTCO" 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 as a result of the completion of discharge
of money or other payments 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 by registered letter addressed to "ANGI"
and "ATTCO" at the above address, directed to the Division Order Department, when any such money or other payments have
been completed or discharged, or when any division of interest other than that set forth above shall, forany 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 harmless in the event of, and are hereby released from any and all damage or loss
which might arise out of any overpayment. Should adjustments be necessary, "ANGI" and "ATTCO" shall have rights (but
no duty) to set off any and all individual or joint liabilities the undersigned has with sane, including but not
limited to proceeds from this and other lease interests owned by the undersigned.
EIGHTH: If any portion of the proceeds derived from the sale of Gas is subject to refund under any order, rule or
regulation of the Federal Energy Regulatory Commission or the provisions of the Natural Gas Act or Natural Gas Policy
Act of 1978, "ANGI" may hold without interest the portion of the proceeds subject to refund unless indemnity
satisfactory to "ANGI" has been furnished, or until "ANGI's" refund obligation has been finally determined. If any
portion of the proceeds derived from the sale of Gas is paid over by "ANGI" under any order, rule or regulation of the
• Federal Energy
Regulatory Commission or the provisions of the Natural Gas Act or Natural Gas Policy Act of 1978, "ANGI" and "ATTCO"
7: are authorized to recover the amount of the refund applicable to the interest of each of the undersigned from future
C payments (Gas and Oil) or at "ANGI's" election, it may invoice the undersigned therefore, plus the legal rate of
J undersigned's interest "ANGI" is or may be required to pay in connection with the portion of the refund.
NINTH: If the undersigned is a working interest owner and/or operator, he or she guarantees and warrants that alt Gas
and Oil tendered hereunder has been or will be produced and delivered in compliance with all applicable federal, state
and local Laws, orders, rules and regulations.
TENTH: This Division Order shall become valid and binding upon each and every owner above named upon execution hereof
by such owner regardless of whether or not any of the other above-named owners have so signed. No termination of this -
Division Order shall be effective without giving thirty (30) days prior written notice. If the provisions of this
Division Order are in conflict with the provisions of any oil and gas lease covering the above-described property(ies),
the provisions of this Division Order shall prevail. Each undersigned owner ratifies and confirms his oil and gas
lease as being in full force and effect as of the date hereof. In consideration of the purchase of Gas and Oil
hereunder, consent is given "ANGI" and "ATTCO" and any pipeline company which same may cause to connect with the wells
and tanks on said land, to disconnect and remove such pipelines, in case of termination by either "ANGI" or "ATTCO"
or the undersigned of any purchases under this Division Order. In the event of conflict between the provisions of this
Division Order and applicable law or regulations, the provisions of this Division Order shall be deemed modified so
as to comply which such law or regulation.
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F 1382 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
931179
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