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Home My WebLink About930129.tiff RESOLUTION RE: APPROVE DIVISION ORDER TO VESSELS OIL AND GAS 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 a Division Order to Vessels Oil and Gas Company, 1050 17th Street, #2000, Denver, Colorado 80265, and WHEREAS, said Division Order covers land more particularly described as follows: Township 2 North, Range 66 West, 6th P.M. Section 18: E3 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 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 Division Order to Vessels Oil and Gas Company, 1050 17th Street, #2000, Denver, Colorado 80265, 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. //1�� '/yyl 930129 DIVISION ORDER - VESSELS OIL AND GAS COMPANY PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 3rd day of February, A.D. , 1993. J/ ' BOARD OF COUNTY COMMISSIONERS ATTEST: ILIA) """� I/� /��2 WELD COUNTY, COLORADO CC / Weld County Clerk to the Board Constance L. Harber , C airman BY: �JIZ O Deputy C erk to the Boa d W. H. ester, P em APPROVED AS FORM: eorge Baxter ounty Attorney Dale K. Hall i �G .AA_ arbara J. Kirkmeyer 930129 --VESSELS OIL & GAS COMPANY SUITE 2000,PRUDENTIAL PLAZA-1050 SEVENTEENTH STREET•DENVER,COLORADO 80265 j '' n: S 3 303 825-3500 THOMAS G.VESSELS Chairman of the Board nI \ THOMAS J.VESSELS President I, ) I / January 7, 1993 Weld County Colorado Board of County Commissioners P. O. Box 758 Greeley, CO 80634 Oil and Gas Production Interest - Weld County, Colorado Highland Well #1 & #2 (VOG #91240 & #91421) Gentlemen: In response to the letter dated September 23, 1992, from Ms. Debra Milano with Basin Exploration, Inc.,in connection with the subject property,enclosed is the necessary division order for approval. Please review the division order and if it meets with approval, have it signed as provided and return the signed order to my attention. I hope the enclosed is satisfactory. Please let me know if there is anything else which you need, or anything further which I can do to help you. Very truly yours, Vessels Oil & Gas Company as---4,44 „, Fred E. Abernathy, Jr. Enclosed: Division Order cc.w/o-encl: Ms.Debra Milano Ms.Sharon Jae LTR.92\DO-BASIN.01A 9a0129 i = PrGSS5 AR2Je,Lss9 I)fl.91\SDO.WGLD.082 DIVISION ORDER To: "Vessels" Oil & Gas Company Wells: SEE EXHIBIT "A" 1050 17th St., #2000 No. : SEE EXHIBIT "A" Denver, CO 80265 Date : January 7, 1993 Each of the undersigned certifies, guarantees and warrants that they are the legal owner of or have valid contractual or other legally binding authority to sell and deliver, in the proportion set forth opposite their name below, all the oil, gas and associated substances, or proceeds from the sale of oil, gas and associated substances, produced from or attributable to the well or wells located in the County of Weld, State of Colorado described on attached Exhibit "A" (the "Property"); Effective as of August 1, 1992 at 7:00 a.m. local time (the "Effective Date"), including suspended proceeds from sales of production, and until further notice from the undersigned in writing, subject to all of the provisions hereof, Vessels is authorized and directed to receive all of the Production of oil, gas and associated hydrocarbons (the "Production") produced therefrom, purchase such Production and to give credit for the undersigned's share of Production produced and sold from the Property as follows: See Exhibit "A" for division of interests which is attached to and made a part of this Division Order. The following covenants are part of this Division Order and shall be binding on the undersigned, their respective successors, legal representatives, and assigns. 1. All payments attributable to the interests of the undersigned in Production from the Property shall be made on the basis of the contract price received by Vessels from the sale of such Production (or, if there is no contract, on the basis of the net price actually received by Vessels with respect to such Production), after deducting taxes and costs as provided in such contract and in this Division Order. Payments made hereunder shall be made on the basis of the volume computations made by the purchasers of the Production taken or sold from the Property. The undersigned agrees that you shall have the sole discretion as to the terms of any contract of sale. 2. If all or any part of the Property is now or hereafter included in any unit established by voluntary agreement or governmental order, settlements hereunder shall be based on the unit Production allocated to the Property. If Production from the Property is now or hereafter commingled with Production from lands or formations, settlements hereunder shall be based on the commingled Production allocated to the Property. In determining such allocations, the Production data furnished by the operator shall control. 3. Payments shall be made monthly by Vessels checks delivered or mailed to the parties entitled thereto at the addresses set forth herein; provided however, that if the proceeds accruing to any interest hereunder shall be less than Twenty Five Dollars ($25) for any month, Vessels is authorized to defer payments, without interest, until such time as the accumulated payments equal or exceed Twenty Five Dollars ($25), provided further that payment of all accumulated accounts shall be made annually in December. Vessels is authorized to withhold from all payments made hereunder the amount of any tax, including penalties and interest, imposed by governmental authorities on the Production from the Property and to pay the same on behalf of the undersigned. 4. If any claim is made which in Vessels' opinion adversely affects title to any interest covered hereby, each of the undersigned affected by such claim agrees immediately to furnish Vessels written notice of such claim. In the event of any such claim, or in the event title to any interest in the Property covered hereby is not satisfactory to Vessels, each of the undersigned authorizes Vessels to defer all payments attributable to the interest so affected, without obligation to pay interest on the amount so deferred, until such claim or title question is corrected or removed to Vessels satisfaction. Each of the undersigned further agrees to indemnify and hold Vessels harmless from and against any and all loss, liability,claim or expense, including attorney's fees, arising out of the payment to the undersigned of the proceeds of Production attributable to their interest. 5. Vessels shall not be responsible for determining when any interest hereunder shall change by increase, decrease, termination, reversion or otherwise, and each of the undersigned agrees to notify Vessels of any change of ownership affecting their respective interest. Until such written notice is received by Vessels, Vessels is authorized to remit pursuant to the division of interest credited hereunder and Vessels shall be held harmless against any and all loss, liability claim or expense, including attorney's fees, arising out of Vessels' failure to receive such notice. 6. No transfer of any interest or change in the right to receive payments, however accomplished, shall be effective as to Vessels until 7:00 a.m. local time on the first day of the calendar month following the month in which you are furnished proper division or transfer orders and proof satisfactory to Vessels of such transfer or change. Until such documents have been furnished, Vessels is authorized to defer payments attributable to interests so affected, without obligation to pay interest on the amount so deferred, and Vessels is released from any and all liability for payments made prior thereto. 7. The undersigned hereby expressly adopts, ratifies and confums their respective division of interest as herein set forth as well as each oil and gas lease, unit declaration or agreement, oil and/or gas sales or processing agreement, and all amendments thereof, under which Production covered hereby is produced, processed and sold. In the event of overpayment to any owner, Vessels is authorized upon discovery of such overpayment to recoup the amount of overpayment from future accruals to this or any other leasehold interest of such owner for which Vessels makes settlement. If, at any time, a refund of a portion of the proceeds derived from the sale of oil or gas is required under any order, rule or regulation of the Federal Energy Regulatory Commission or provisions of the Natural Gas Act or Natural Gas Policy Act of 1078, the undersigned agrees to refund all such proceeds, together with interest thereon, due and applicable with respect to the undersigned's portion of such refund. B 1370 REC 02321559 02/11/93 15 :48 $0 .00 1/004 F 1002 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 53G1e9 DIVISION ORDER January 7, 1993 Page Two 8. Vessels is authorized to make a fair and reasonable charge for gathering, compressing, dehydrating or otherwise making the undersigned's share of gas merchantable, and for transportation if gas is sold off the Property. Vessels is further authorized to deduct a fair and reasonable charge for transportation where necessary to make the oil merchantable. 9. This division order shall become valid and binding on each owner, their respective successors, legal representatives and assigns, as soon as signed by such owner, regardless of whether or not all have so signed. This Division Order may be executed in one or more counterparts, and all counterparts so executed shall constitute one original instrument. 10. Payments to the undersigned hereunder shall be subject to all present and future federal, state and local laws, regulations and orders. 11. Any written notice required or permitted hereunder may be given to the party to be notified at the addresses provided herein. VESSELS WIT T NOT MAKE PAYMENTS TO YOU UNTIL YOUR CORRECT SOCIAL SECURITY NUMBER OR FEDERAL TAX IDENTIFICATION NUMBER HAS BEEN PROVIDED TO VESSELS. ALL SIGNATURES MUST BE WITNESSED BY SOMEONE OTHER THAN A RELATIVE, AND CORPORATIONS MUST HAVE THE CORPORATE SEAL AFFIXED HERETO AND PROPERLY ATTESTED. YOUR CORRECT MAILING ADDRESS MUST BE SHOWN BELOW TO RECEIVE PAYMENTS.a / 5" .,./,) ,/,/,/ / / 1 i4f4il Attest/Witness:fr� Chairman, Board of County Commissioners egVp8/n_. / WELD COUNTY CLEI1;; TOfHE BOARD Social Security # BY: riled /`/i• a Cdr or ' DEPUTY CLERK TO THE BOARD--- Federal Tax ID # 84-6000-813 Date Signed: 2/3/93 Name & Address: Weld County Board of Cnmmissioners 915 10th Street, P.O. Box 758 Greeley, CO 80631 Attest/Witness: Social Security # or Federal Tax ID # Date Signed: Name & Address: DO.92lSDO-WELD.082 B 1370 REC 02321559 02/11/93 15 :48 $0 .00 2/004 F 1003 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO , • 9 10129 _ OD `OJ L:'121A F '.Q►'.OO.E'.::. i r.'-=,� ..X_ .. 3.2:74. "'.t P.. .. _;: 1 0 ' If TOZG 600/£ 00'0t 8t:ST Z6/TT/Z0 6SSTZ£Z0 3 I 0LEI g I I ; I I I ,4 I I to ! o ,p ; ' ' 1 1 I � i •>~ : ,-4 . ≥s • : I o ' 1 :0' j N '. • - 0 ! ; ' r- I Io I0 : IIII I w :.t3 : , ,N 1 hp I 1 .43 ' !Ul i , .L(I Cl ` ,• I 0 t •• � I , . I.: 'J !WW ' :� •e.. iN • ' • !o I I I I • I I 'm mil �I . . I I Ic••3 I I 1O ' I I i ;tow LLI ; , 1 1 I In I ; I .0 ! I w :aw :I- ,� I ; I-4 I O I I 1 . 1 1 Q i j jo 1 i i <c i ;.J ; '� • •' • I . '0 • I0 ! I .0 'I , • I I1 •O I Ii ''' ! I :.'4, ft' I I ! .0 . ! ;0, I I ; I f I . ... I H Ui '0 . I ; : 0 • i ;0. !•-+ I : '" I i ;'-' i ,0111 ° , I I ; I I ! It ! I ; ' i • • 1 'I 1 • . 1 .I 1 1. ; E ! : ' ; t ' , ; • t i .: = 1' ! 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V . i ! 1 t i i , w •u. iQ. t . 3 • INSTRUCTIONS TO ALL INTEREST OWNERS READ CAREFULLY BEFORE SIGNING YOUR DIVISION ORDER Other than as instructed herein, the enclosed division order should not be altered in any way unless when returned to Vessels, you also provide us with evidence to support any changes and the division order is dated and initialed by the signing party where such changes are made on the division order. If your name and interest are correctly shown on the Exhibit "A" to the division order: SIGNATURE: Sign your name where provided on page two of the division order and print or type your name below the signature line. Have your signature witnessed by one person not related to the signing person (s) . If signing for a corporation, your signature must be attested, corporate seal affixed, and title of signatory parties shown. If signed for a partnership, all partners must sign unless signed by an authorized partner and Vessels is furnished a certified copy of his or her authority. SIGNATURE BY SECOND PARTY: If this division order is signed by an agent, or an attorney-in-fact, guardian, estate representative, trustee or any party other than the named interest owner, Vessels must be provided evidence of the rights vested in the signatory party. FEDERAL TAX PAYER'S IDENTIFICATION NUMBER OR SOCIAL SECURITY NUMBER: Insert your number in the space provided. MAILING ADDRESS : Insert in the space provided. Please print or type. Do not abbreviate. If you are already receiving checks from Vessels, be sure to use the same address to which Vessels is now mailing checks . PROPERTY/WELL NUMBER AND NAME: In the upper left-hand corner of the Exhibit "A" to the division order you will find the number and name assigned to this property. This name and number will appear on the statement attached to your check and should always be used when corresponding with Vessels . CHANGE OF ADDRESS: You should notify Vessels promptly in writing of any change in your mailing address . This notice must be over your own signature, or the signature of your appointed agent . Always include your Owner Number (which appears on your check) and your old address then state your new address with zip code. FOR PAYMENT: Return one signed division order to: VESSELS OIL & GAS COMPANY 1050 - 17TH STREET, SUITE 2000 DENVER, CO 80265 INFORMATION: If you have any questions regarding the division order, please contact Fred Abernathy, Jr. at (303 ) 825-3500 . INSTRUCTIONS TO ALL INTEREST OWNERS READ CAREFULLY BEFORE SIGNING YOUR DIVISION ORD1l OFFICE OF COUNTY ATTORNEY ` PHONE(303)356-4000 EXT.4391 P.O. BOX 1948 GREELEY,COLORADO 80632 WUDc. COLORADO January 12, 1993 Vessels Oil and Gas Company Attn: Fred Abernathy, Jr. Suite 2000, Prudential Plaza 1050 17th Street Denver, CO 80265 RE : Division Order for Highland Well No. 1 and No . 2 Dear Mr. Abernathy: Enclosed is a copy of a Division Order which was received by the Board of County Commissioners of Weld County, Colorado on January 11, 1993 . As you can see, the Division Order is for the wells known as the Highland No. 1 and No. 2 . Before I recommend to the Board of County Commissioners that they sign the Division Order, I respectfully request that you provide me with some information to explain how the lease interest for Weld County on each well was calculated at . 00112500 . Please call me at ( 303) 356-4000, extension 4389 , if you wish to discuss this matter over the phone, or send any writing to me at: P .O. Box 1948 , Greeley, Colorado 80632 . Very truly yours , 1ptc--Bruce T. Barker Assistant Weld County Attorney BTB/db Enclosure pc : Clerk to the Board 930129 VESSELS OIL & GAS COMPANY SUITE 2000,PRUDENTIAL PLAZA• 1050 SEVENTEENTH STREET-DENVER,COLORADO 80265 303 825-3500 THOMAS G.VESSELS.Chairman of the Board THOMAS J.VESSELS,President 11 January 28, 1993 E t7 Vt Mr. Bruce T. Barker J JAN 2 9 1993 Weld County P. O. Box 1948 4Tl'p Lp COUN Greeley, CO 80632 RNEY S OFFICE Weld County Oil and Gas Production Interest HIGHLAND WELLS #1 & #2 Township 2 North, Range 66 West 6th P.M. Section 18: East-Half Southwest Quarter (E/2SW/4); Weld County, CO Dear Mr. Barker: This is written in response to your letter dated January 12, 1993, regarding the captioned. Vessels purchased its interest in the subject wells from Roemer Oil Company and took over as Operator effective October 1, 1991. Basin Exploration, Inc., a Non-Operator working interest owner, in their letter dated September 23, 1992, requested that Vessels make payment to Basin covering only its net revenue interest and make payment to all royalty owners on behalf of Basin. Vessels agreed to comply with Basin's request beginning with August, 1992 production. Vessels has not updated nor verified tide covering interests in leases and tracts which we have no leasehold interest. We have relied upon the division of interest ownership information provided to us by our predecessors in title and Basin, and the warranty and indemnification provisions contained in our division order provide further protection against any errors or incorrect payments as a result of this reliance. Also, Basin has informed us that the Weld County mineral interest is covered by a leasehold interest acquired from Nielson Enterprises, Inc. (Gen Oil) effective October 1, 1990, and the Weld County production interest shown on the division order has been calculated as follows: WELD COUNTY Weld County Weld County HIGHLAND Weld County Lease HIGHLAND UNIT Mineral Interest Lease Acreage Unit Acres Landowner Royalty LANDOWNER ROYALTY 1/2 x 1.44 / 80.00 x 1/8th = 0.1125% In researching our files I am unable to locate title opinions, lease copy or other documents to verify the accuracy of the above formula and the Weld County oil, gas and mineral interest. If you need additional title information, I recommend that you contact Basin Exploration, Inc. 930129 Mr. Bruce T. Barker Weld County January 28, 1993 Page Two I hope this information is helpful to you and satisfactory for you to now recommend to the Board of County Commissioners that they sign the Division Order provided to you in my January 13, 1993 letter. Thank you for your letter and response with this request. Please let me know if there is anything else which you need, or anything further which I can do to help you. Very truly yours, Vessels Oil & Gas Company 'j' red E. Abernathy, Jr. cc: Ms.Debra Milano Basin Exploration,Inc. 370 17th St.,Suite 1800 Denver,CO 80202 LTR.93.TR-WELD.01A 930129 mEmoRAnDum WilkTo Board of Co. Commissioners Date February 2, 1993 COLORADO Frruce T. Barker, Assistant Weld County Attorney sun;ect Division Order Request From Basin Exploration, Inc. , ana vessels oil and Gas Company. The Board of County Commissioners has received a request from Basin Exploration, Inc. , and Vessels Oil and Gas Company for the Chairman' s signature on a Division Order for oil to be produced from the East half Southwest quarter of Section 18, Township 2 North, Range 66 West of the 6th P.M. , Weld County, Colorado. I was uncertain as to how Vessels calculated the royalty interest for Weld County at . 1125 per cent. The explanatory letter from Fred Abernathy, Jr. , is attached. The lease acreage of 1 .44 acres is derived from a map of the Division No. 1 Subdivision. Attached is a copy of the plat which shows in yellow where the 1. 44 acres is located. The one half mineral interest for Weld County is derived from the fact that Weld County conveyed one half of the oil and gas mineral interests in Lot 7 in 1988 . A copy of the deed which transferred this interest is attached. I recommend that the Board authorized the chairman' s signature on the Division Order from Vessels Oil and Gas Company. ruce T. Barker BTB/db Attachments 930129 -VESSELS OIL & GAS COMPANY SUITE 2000,PRUDENTIAL PLAZA-1050 SEVENTEENTH STREET•DENVER,COLORADO 80265 303 825-3500 THOMAS G.VESSELS.Chairman of the Board THOMAS J.VESSELS,President January 28, 1993 Mr. Bruce T. Barker JAN 2 9 1993111 Weld County P. O. x 1948WEL Greeeley CO 80632 AR EY'g OFFICE. Weld County Oil and Gas Production Interest HIGHLAND WELLS #1 & #2 Township 2 North, Range 66 West 6th P.M. Section 18: East-Half Southwest Quarter (E/2SW/4); Weld County, CO Dear Mr. Barker: This is written in response to your letter dated January 12, 1993, regarding the captioned. Vessels purchased its interest in the subject wells from Roemer Oil Company and took over as Operator effective October 1, 1991. Basin Exploration, Inc., a Non-Operator working interest owner, in their letter dated September 23, 1992, requested that Vessels make payment to Basin covering only its net revenue interest and make payment to all royalty owners on behalf of Basin. Vessels agreed to comply with Basin's request beginning with August, 1992 production. Vessels has not updated nor verified title covering interests in leases and tracts which we have no leasehold interest. We have relied upon the division of interest ownership information provided to us by our predecessors in title and Basin, and the warranty and indemnification provisions contained in our division order provide further protection against any errors or incorrect payments as a result of this reliance. Also, Basin has informed us that the Weld County mineral interest is covered by a leasehold interest acquired from Nielson Enterprises, Inc. (Gen Oil) effective October 1, 1990, and the Weld County production interest shown on the division order has been calculated as follows: WELD COUNTY Weld County Weld County HIGHLAND Weld County Lease HIGHLAND UNIT Mineral Interest Lease Acreage Unit Acres Landowner Royalty LANDOWNER ROYALTY 1/2 x 1.44 / 80.00 x 1/8th = 0.1125% In researching our files I am unable to locate title opinions, lease copy or other documents to verify the accuracy of the above formula and the Weld County oil, gas and mineral interest. If you need additional title information, I recommend that you contact Basin Exploration, Inc. 920129 Mr. Bruce T. Barker Weld County January 28, 1993 Page Two I hope this information is helpful to you and satisfactory for you to now recommend to the Board of County Commissioners that they sign the Division Order provided to you in my January 13, 1993 letter. Thank you for your letter and response with this request. Please let me know if there is anything else which you need, or anything further which I can do to help you. Very truly yours, Vessels Oiill�& Gas Company 1 /9 /4, red E. Abernathy, Jr. cc Ms.Debra Milano Basin Exploration,Inc 370 17th St.,Suite 1800 Denver,CO 80202 LTR.93.TR-WELD.0IA 920129 • g •_6 OFFICE OF COUNTY ATTORNEY et PHONE(303)3564000 EXT.4391 P.O. BOX 1948 GREELEY, COLORADO 80632 IIl O COLORADO January 12 , 1993 Vessels Oil and Gas Company Attn: Fred Abernathy, Jr. Suite 2000 , Prudential Plaza 1050 17th Street Denver, CO 80265 RE : Division Order for Highland Well No. 1 and No . 2 Dear Mr. Abernathy: Enclosed is a copy of a Division Order which was received by the Board of County Commissioners of Weld County, Colorado on January 11 , 1993 . As you can see, the Division Order is for the wells known as the Highland No. 1 and No. 2 . Before I recommend to the Board of County Commissioners that they sign the Division Order, I respectfully request that you provide me with some information to explain how the lease interest for Weld County on each well was calculated at . 00112500 . Please call me at ( 303 ) 356-4000, extension 4389 , if you wish to discuss this matter over the phone, or send any writing to me at: P .O. Box 1948, Greeley, Colorado 80632 . Very truly yours , •-•Zc= Bruce T. Barker • Assistant Weld County Attorney BTB/db Enclosure pc : Clerk to the Board 930129 R ,i1 J i�: . . .. , , ,,,. , ,,,, , J'J1 ; T 'i :,,. . . .. ,,, , (-,, , . ,. • ,.,I7 _, ,,,,2„.,,J-c-- „ , ,, r ,,: . , , „lit ,) , ,,,, , _—r fft ,_ '3"9.34 ' ' . ,.....,, :.. ,::.,, /4 -! �VV pj . ill �7. 3 f Syr s C7 r Ja -_,c.,ts dti' Q; to > {Ae L J 'rei';,-; .;;.'•.'",":„•':;;';',,..:;,-:;',,,,..,:'p 1. ', ..,;'.$410°--3.e avY • # r w ,rt , �,'a 4 . . v i S� f '�- .;.,c,?.,.'r - - '' ' 4 P''ti rk N '- ` 1 : of .k°fG --,�r - I - {t . /&c /,W ,. r I _' if • . ,,.,,'7.,',.,.'.7,-!,:i:,,,..;!..": 322222 - t� ' t`• ••/t c tp .1L F ° .,T ,5 1 h .'..i'—'1:17,' t f 1 7 < 1 d'`... e<,.2/.f 1 ,_ t i, /;,..,@I/f>lN ? I1 ; y 1 p i l at , .: ',.,',-1,,:,,,;;-i•-..,,,,:.,:..:;,-,,.,,, r B- k�. :i NS lar t ' , f ! f d ' "a :.$s-i tY : 3 •'\ q:t 56 r S7 of H/veK r5t A I .".,::-'f°,,';'•11r3:,--:;.1.:,:r,: 1 Ek t- s ;7 Y '1 ate � Y� ,�:.{ n µt YJ"`�.^.•7 k,„x' a!y. 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RECORDER'S S'IAMP THIS DEED,Made this 2nd day of August , 19 88 , between County of Weld, a body politic and corporate of the State of Colorado, by and through the - Board of County COMMIS nioilers of Weld County of the County of Weld and State of Colo- rado, of the first part, and Darrell L. Bearson and Nelva M. Bearson whose legal address is 10501 Weld County Road 25} , Fort Lupton, Colorado 80621 of the County of Weld and :tate of Colorado, of the second part; WITNESSETH,'lhat the said party of the first part, for and in consideration of the sum of THIRTY THOUSAND AND NO/HUNDREDTHS Dollars, to the said party of the first part, in hand paid by the said part ies of the second part, the receipt whereof is hereby confessed and acknowledged, has granted, bargained, sold and con- veyed, and by these presents does grant, bargain, sell, convey and confirm unto the said parties of the second part, their heirs and assigns forever, all the following described lot or parcel of land,situate, lying and being in the County of Weld and State of Colorado, to wit: See attached Exhibit "A". • arauktmixrum0auctutimbuaciatxx Together with all and singular the hereditaments and appurtenances thereunto belonging, or in anywise appertaining, and the reversion and reversions, remainder and remainders, rents, issues and profits thereof; and all the estate, right, title, interest, claim and demand whatsoever, of the said party of the first part, either in law or equity, of, in and to the above bargained premises, with the hereditaments and appurtenances; TO HAVE AND TO HOLD the said premises above bargained and described, with the appurtenances, unto the said parties of the second part, their heirs and assigns forever. And the said party of the first part, for itself its heirs,executors and administrators,does covenant, grant, bargain and agree to and with the said part ies of the second part, theirheirs and assigns, the above bargained premises in the quiet and peaceable possession of said parties of the second part, theirheirs and assigns, against all and every person or persons lawfully claiming or to claim the whole or any part thereof, by, through or under the said party of the first part to WARRANT AND FOREVER DEFEND. IN WITNESS WHEREOF,The said party of the first part has hereunto set its hand and seal the day and year first above written. ATTEST: COUNTY OF WELD, A BODY POLITIC AND CORPORATE OF THE STATE OF COLORADO, ISUMIXSEIXILNIOCILHAMMONNICTDOitHiaNX BY AND THROUGH THE BOARD OF [SEAL] {aelCoun C e k and Recorder and COUNTY COMMISSIONERS OF WELD CTT r e rd COUNTY � SEAL] • B SEAL] STATE OF COL ADO, I Gene R. Brantner, Chairman J ss. County of v �7 The foregoing instrument was acknowledged before me this day of A L-Lik_t7-- 19`x '' ,by • My commission expires ,19 ///� .Witness my handand n official/ia seal. • My Commission Expires June 8, 1990 ( 'C'�G7 - //�Z�Lj!�GI Notary Public. CX/ F t Pa I mo e o DID 3/ 930129 No.16 SPECI0IWMRANTYDEEO.—DtntlrordP,ubli.hinitCo.,1824,d6StuutStrcrt,Dsnver,cvlvrado(5?A•G01t112.77 'I x: a1 1'Gv'h, 2 ! .1::,:q`34._ 1 l N,`r 4'1!,!..). \rf y . r n rl \ �tSiN rt lY n iJF 4, .I r tt + 1 ,i §My�ta Ro".l`.1'i it'll '?t a' uh« '1<+•. '? 1J 9 r �F wr. ,",y�4.w§i.aq ..; L 91 a 4,t+t*t rho, . s, e,:d+r l 1 N . ''C , s>✓,-• +!.''�i"' ;-,..t 3/ .irk r litill\ 1 yY Y A �§I 4 M V\A}' Gyli. fty ��r- 4 1 ,R ..,+ _ {it�ryN Z,ft•Ky"Y F f+- k..v R� J Y r 4 r Y, e t `.a 1Xau.ul • rw \....s.w..l. xA.�l 11.x... tii/11 11 ) ! 4 t 1. EXHIBIT "A" All that Part of Lot 7 of the South Half (Si ) of the Southwest Quarter (SW ) of Section 18 , Township 2 North, Range 66 West of the 6th P.M. , according to Division 1 map made by The Lupton Meadows Land Company, lying west of the South Platte River, including all gravel or aggregates, but excluding and reserving to said party of the first part, one-half of all oil , gas, and other hydrocarbons . 930129 ` mEmoRAnDum 1119€ To Board of Co. Commissioners Date February 2, 1993 COLORADO FroBruce T. Barker, Assistant Weld County Attorney Division Order Request From Basin Exploration, Inc. , Subject: and Vessels Oil and Gas Company. The Board of County Commissioners has received a request from Basin Exploration, Inc . , and Vessels Oil and Gas Company for the Chairman' s signature on a Division Order for oil to be produced from the East half Southwest quarter of Section 18, Township 2 North, Range 66 West of the 6th P.M. , Weld County, Colorado. I was uncertain as to how Vessels calculated the royalty interest for Weld County at . 1125 per cent. The explanatory letter from Fred Abernathy, Jr. , is attached. The lease acreage of 1 . 44 acres is derived from a map of the Division No. 1 Subdivision. Attached is a copy of the plat which shows in yellow where the 1 . 44 acres is located. The one half mineral interest for Weld County is derived from the fact that Weld County conveyed one half of the oil and gas mineral interests in Lot 7 in 1988 . A copy of the deed which transferred this interest is attached. I recommend that the Board authorized the chairman' s signature on the Division Order from Vessels Oil and Gas Company. rB`uce `T. Barker BTB/db Attachments 930129 - VESSELS OIL & GAS COMPANY SUITE 2000,PRUDENTIAL PLAZA• 1050 SEVENTEENTH STREET•DENVER,COLORADO 80265 303 825-3500 THOMAS G.VESSELS.Chairman of the Board THOMAS J.VESSELS,President JO January 28, 1993 -.t'0i � Mr. Bruce T. Barker 4 JAN 2 9 1993 fi Weld County P. O. Box 1948 VVEArr��D COVNT Greeley, CO 80632 RivEy'S OFF CE Weld County Oil and Gas Production Interest HIGHLAND WELLS #1 & #2 Township 2 North, Range 66 West 6th P.M. Section 18: East-Half Southwest Quarter (E/2SW/4); Weld County, CO Dear Mr. Barker: This is written in response to your letter dated January 12, 1993, regarding the captioned. Vessels purchased its interest in the subject wells from Roemer Oil Company and took over as Operator effective October 1, 1991. Basin Exploration, Inc., a Non-Operator working interest owner, in their letter dated September 23, 1992, requested that Vessels make payment to Basin covering only its net revenue interest and make payment to all royalty owners on behalf of Basin. Vessels agreed to comply with Basin's request beginning with August, 1992 production. Vessels has not updated nor verified title covering interests in leases and tracts which we have no leasehold interest. We have relied upon the division of interest ownership information provided to us by our predecessors in title and Basin, and the warranty and indemnification provisions contained in our division order provide further protection against any errors or incorrect payments as a result of this reliance. Also, Basin has informed us that the Weld County mineral interest is covered by a leasehold interest acquired from Nielson Enterprises, Inc. (Gen Oil) effective October 1, 1990, and the Weld County production interest shown on the division order has been calculated as follows: WELD COUNTY Weld County Weld County HIGHLAND Weld County Lease HIGHLAND UNIT Mineral Interest Lease Acreage Unit Acres Landowner Royalty LANDOWNER ROYALTY 1/2 x 1.44 / 80.00 x 1/8th = 0.1125% In researching our files I am unable to locate title opinions, lease copy or other documents to verify the accuracy of the above formula and the Weld County oil, gas and mineral interest. If you need additional title information, I recommend that you contact Basin Exploration, Inc. 920129 ' Mr. Bruce T. Barker Weld County January 28, 1993 Page Two I hope this information is helpful to you and satisfactory for you to now recommend to the Board of County Commissioners that they sign the Division Order provided to you in my January 13, 1993 letter. Thank you for your letter and response with this request. Please let me know if there is anything else which you need, or anything further which I can do to help you. Very truly yours, Vessels Oil & Gas Company red E. Abernathy, Jr. cc Ms.Debra Milano Basin Exploration,Inc 370 17th St.,Suite 1800 Denver,CO 80202 LTR.93.TR-WELD.01A 930129 • • ( OFFICE OF COUNTY ATTORNEY PHONE(303)356-4000 EXT.4391 P.O. BOX 1948 GREELEY,COLORADO 80632 j. Uk. COLORADO January 12 , 1993 Vessels Oil and Gas Company Attn: Fred Abernathy, Jr. Suite 2000, Prudential Plaza 1050 17th Street Denver, CO 80265 RE : Division Order for Highland Well No. 1 and No. 2 Dear Mr. Abernathy: Enclosed is a copy of a Division Order which was received by the Board of County Commissioners of Weld County, Colorado on January 11, 1993 . As you can see, the Division Order is for the wells known as the Highland No. 1 and No. 2 . Before I recommend to the Board of County Commissioners that they sign the Division Order, I respectfully request that you provide me with some information to explain how the lease interest for Weld County on each well was calculated at . 00112500 . Please call me at ( 303) 356-4000, extension 4389 , if you wish to discuss this matter over the phone, or send any writing to me at: P .O. Box 1948 , Greeley, Colorado 80632 . Very truly yours , Bruce T. Barker Assistant Weld County Attorney BTB/db Enclosure pc : Clerk to the Board 9'30123 Hello