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Home My WebLink About920958.tiff Mt2:1Db�'-'�5 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 1 North, Range 65 West, 6th P.M. Section 2: (SW;NW;) 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. B 1353 REC 02306245 10/07/92 14 :25 $0 . 00 1 /006 F 2149 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 920958 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 30th day of September, A.D. , 1992. BOARD OF COUNTY COMMISSIONERS ATTEST: t' ° O ) ,f WELD COUNTY, COLORADO Weld County Clerk. t Board w3 .c!•�,'� '- t eorge Ke nedy, Chairman { BY: C. ,vH_e EXCUSED DATE OF SIGNING (AYE) De Ier to he Board Constance L. Harbert, Pro-Tem APPROVED'2S 'd FORM: 7 C. W. Kir County Attorn y Gord c W. H. ebster B 1353 REC 02306245 10/07/92 14 : 25 $0 .00 2/006 F 2150 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 920958 D09PGRSD91n DIVISION ORDER To: "Vessels" Oil & Gas Company Wells: SEE EXHIBIT "A" 1050 17th St., #2000 No. : SEE EXHIBIT "A" Denver, CO 80265 Date : September 17, 1992 • 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 Adams, and/or County of Boulder, and/or County of Weld, State of Colorado described on attached Exhibit "A" (the "Property"); Effective as of September 1, 1992 at 7:00 a.m. local time (the "Effective Date"), and until further notice from die 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 die 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 die 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 turd 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 die 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 funtished by die operator shall control. 3. Payments shall be made monthly by Vessels checks delivered or mailed to die 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 die accumulated payments equal or exceed Twenty Five Dollars ($25), provided further that payment of all accumulated accounts shall he made annually in December. Vessels is authorized to withhold from all payments made hereunder die tmiount of:thy tax. including penalties and interest, imposed by governmental authorities on die 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 die undersigned affected by such claim agrees immediately to furnish Vessels written notice of such claim. In die 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 die undersigned authorizes Vessels to defer all payments attributable to die interest so affected, without obligation to pay interest on die 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 hamiless 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 troy 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 hamless 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 arc 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 die :unount so deferred, and Vessels is released from any and all liability for payments made prior thereto. 7. The undersigned hereby expressly adopts, ratifies and confirms 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 to amount of overpayment row 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 die Federal Energy Regulatory Commission or provisions of the Natural Gas Act or Natural Gas Policy Act of 1078, die 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 1353 REC 02306245 10/07/92 14 : 25 $0 . 00 3/006 F 2151 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 920958 I DIVISION ORDER September 17, 1992 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 pemtitted hereunder may be given to the party to be notified at the addresses provided herein. VESSELS WILL 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. Attest/Witness: Weld`Zrotinty Clerk George Ke edy, Chairman 05/92 • to tht' Board �/// j Social Security # By./�r ! � -� or y bbeptity� ler Ito the Board � Federal Tax ID # 84-6000813 Date Signed: September 30, 1992 Name & Address: Weld County Board of Commissioners P. 0. 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