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RESOLUTION
RE: APPROVE GAS DIVISION ORDER TO NORTH AMERICAN RESOURCES 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 Gas Division Order to North
American Resources Company, 16 East Granite, Butte, Montana 59701, and
WHEREAS, said Division Order covers land more particularly described as
follows:
Township 2 North, Range 64 West, 6th P.M.
Section 30: W2
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 Gas Division Order to North American Resources
Company, 16 East Granite, Butte, Montana 59701, 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.
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0707
DIVISION ORDER - NORTH AMERICAN RESOURCES CO.
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 27th day of April, A.D. , 1992.
BOARD OF COUNTY COMMISSIONERS
ATTEST: / fi 4/ F WELD COUNTY, COLORADO
aoted_J,
Weld County Clerk to the Boar
�. \ .‘i George Ken edy, Chairman
BY: _
De lYlvrl<to tie;Board Constan�arbert, Pro-Tem
APPROVED OR�f /Ct
�4•d:ft C. W. Ki by
County Attorney Gor . L cy
W. H. Webster
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F 1542 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
920379
•
GAS DIVISION ORDER
TO: NORTH AMERICAN RESOURCES COMPANY
EFFECTIVE: January1,1991
The below named parties,hereinafter designated as"OWNERS",and each of them
by their signatures hereto affixed,do hereby represent,certify and warrant that they are
the legal owners in the proportions set out below of all the gas and associated liquid
hydrocarbons produced from or allocated to the well,acreage or communitized area more
particularly described as follows:
Township 2 North,Range 64 West
Section 30:W2
Gurtler#1
in Weld County,State of Colorado,and are entitled to receive payments for gas taken or
sold off of the premises,and until further notice credit for such gas so taken or sold from
said premises shall be given as directed below:
CREDIT TO DIVISION OF INTEREST MAILING ADDRESS
See Exhibit"A"attached
o
o NORTH AMERICAN RESOURCES COMPANY,hereinafter called"OPERATOR"may sell and
M o deliver to any purchaser and then remit to the OWNERS as set out herein for all gas and
• associated liquid hydrocarbons,including condensate produced,saved and sold from said
premises as follows:
o W
0 3 1. Payment for gas shall be paid to the OWNERS according to the division of interest
o(4 shown above.Payment therefor may be made monthly by the OPERATOR mailing to such
o parties its check therefor at the post office address stated,on or before thirty(30)days
8 after receipt by OPERATOR of sufficient information upon which settlement therefor may
c.) be made.If the amount accruing to the interest of any Owner herein is less than Twenty
o a Five Dollars($25.00)in any one month,the proceeds of such runs may,at the option of
• OPERATOR,be accumulated and paid without interest on an annual basis,payment to be
made in December of each year.
a
If a refund of a portion of the proceeds derived from the sale of gas may be
O• required under any order,rule or regulation of the Federal Power Commission or other
o z governmental agency having jurisdiction thereof,or the provisions of the "Natural Gas
w Act",the price for gas shall be calculated on the basis of the unsuspended or unconditional
h certificated price for such gas.OPERATOR may hold,without interest, the portion of
w proceeds subject to possible refund until the amount of the refund,if any,is determined by
D final unappealable order of the Federal Power Commission or such other governmental
w agency.OPERATOR is also expressly authorized and given the right,in its sole discretion,to
w withhold or deduct from the share of any disbursement,directed hereunder attributable to
z any Owner,a sufficient sum to pay all ad valorem taxes,applicable State and Local taxes,
KC Resource Indemnify Fund Tax and any other tax(excluding income taxes)that will become
o• due and payable by any Owner,and to pay such taxes and render a full account of any such
taxes paid by it to any Owner for whom such taxes have been paid.
C4
m 2. Settlement for the above interests shall be made on the basis of the net proceeds
M received from the sale of gas based upon the volume computations made or accepted by
the purchasers thereof. "Net Proceeds" means the amount received from such sale less
as w transportation,dehydration,separating,treating,processing and compression charges and
other costs or expenses,if any.OPERATOR may sell gas to any purchaser of its choice at such
quantities and prices as it shall deem prudent.However,in the event the sales price for gas
is established or regulated by the Federal tower Commission,or 5,, y����nmentai
authority,the price applicable to such sales for the purpose of calculating net proceeds
shall be the unsuspended or unconditional certificated price for such gas determined by
final unappealable order of the Federal Power Commission or such other governmental
agency.
3. Payments so made are to be in full settlement for such gas so taken or sold from
said premises.
4. OWNERS severally shall notify OPERATOR of any change of ownership,and no
transfer of interest shall be binding upon OPERATOR until a request to make such transfer
and the recorded instrument evidencing such transfer,or a certified copy thereof,shall be
furnished to OPERATOR.Transfers of interest shall be made effective not earlier than the
first day of the calendar month in which notice is received by OPERATOR.OPERATOR is
920319
LE0oS>- 3
relieved hereby of any responsibility for determining if and when any of the interests set
forth above shall or should revert to or be owned by other parties as the result of the
completion or discharge of money or other payments from said interests and the OWNERS
whose interests are affected by such money or other payments, if any, assume said
responsibility and shall give OPERATOR notice in writing by certified letter addressed to
OPERATOR, when any such money or when any other division of interest than that set
forth above shall, for any reason, become effective, and to furnish requests for transfer
accordingly, and that in the event such notice shall not be received, OPERATOR shall be
held harmless in the event of and is hereby released from any and all damage or loss which
might arise out of any overpayment.
5. In the event of any dispute or question at any time concerning title to the above
described lands, or the gas produced therefrom, OPERATOR may hold the proceeds of all
gas runs hereunder, until indemnity satisfactory to OPERATOR has been furnished or until
such dispute or question of title is corrected or removed to court affecting title to either
the real property above described or to the gas produced therefrom in which any of the
undersigned are parties, written notice of the filing of such action shall immediately be
furnished to OPERATOR by the undersigned, stating the court in which the same is filed
and the title of such action or suit, and OPERATOR or any purchaser of gas runs shall be
held harmless from and any judgment rendered in such suit and all reasonable costs and
expenses incurred in defending against said claim whether in OPERATOR's defense of the
gas purchaser, and the undersigned shall pay said judgment and said costs and expenses in
the proportion and to the extent that the same affects his or their interest. Where, under
this provision the proceeds of any gas sales are retained, OWNERS agree to indemnify and
hold the OPERATOR harmless from any liability for any tax proposed or assessed against or
paid on account of such retained proceeds, together with the penalties incident thereto,
and the OPERATOR may deduct the same from any amount owing by it to OWNERS. In the
event of overpayment for gas to the interest of any Owner herein, OPERATOR is authorized
upon discovery thereof to recoup such amounts from future accruals to this or any other
interest of such Owner for which OPERATOR may make settlement.
6. This Agreement shall be binding upon all parties agreeing hereto irrespective of
whether all parties owning an interest in the minerals, royalty, and leasehold estates
execute the same, and shall extend to and be binding upon their respective heirs, devisees,
executors, legal representatives, successors and assigns. This Agreement may be attached as
an exhibit to any other document and incorporated therein by reference for all purposes
and execution of any such document to which this Gas Division Order may be attached shall
be deemed to be for all purposes of the same force and effect as execution of this
document.
7. If applicable, the OPERATOR will comply with all provisions of Executive Order
No. 11246 of September 24, 1965, and any amendments or supplement thereto and of the
rules, regulations and relevant orders of the Secretary of Labor.
8. Special Provision:.
84-6000813
ggi Federal ID Number =.rge Ken y, C, •/f �� '/92
Weld County Board of Commissioners )(ATTEST:
MailingAddress We . County : Board
915 10th Street
P.O. Box 758 X BY:
Greeley, CO 80632
deputy C er ��`:o4₹ti --
April 27, 1992 X
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F 1544 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
2
STATE of Colorado
ss
COUNTY Weld _ ) —
On this 27th day of April , 1992, before the undersigned Notary Public in and for
the State of Colorado , personally appeared George Kennedy
known to me to be the person/s whose name/s is/are subscribed to the within and foregoing igsfruttient and
acknowledged to me that they executed the same. / .`'fix=
Una Fy Pu i in ! . for h State of y`it(
t
Colorado
Residing at Greeley �
My Commission Expires t9lp000E1SS1C-- 4/111110f0',)Y995
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F 1545 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
020 tchr
EXHIBIT "A"
Attached to that certain
Gas Division Order effective
January 1, 1991, covering the
Gurtler #1 Well W2
Sec 30,T2N R64W
OWNER OWNER NAME INTEREST
8128 Russell L. Gurtler Jr. .02155% RI
9327 Eva M. Gurtler 3.09102% RI
8642 Colorado National Bank,Trustee 3.11257% RI
T.E. McClintock Trust
8505 William R and Shirley L. Graybill .04579% RI
8399 Dorothy Hartshorn 2.77426% RI
8343 Daniel Cooper & Peter Press .56161% RI
12762 Joan M. Bumpas .27343% RI
12763 Jerald C. Starks .27343% RI
12764 Michael E. Starks .27343% RI
12765 Roy D. Starks .27343% RI
12766 Kevin J. Starks .27343% RI
12767 Mary I. Starks .27343% RI
12768 Robert C. Starks .27343% RI
12769 Margo J. Hayes .27343% RI
8222 Marathon Oil Company .79654% RI
9173 George E. Walters .24591% RI
8035 Weld County, Colorado .72635% RI
8699 Vessels Oil & Gas CO. .67629% OR (1)
7925 Rancho Partnership LTD .28498% OR (1)
10828 F. O. LTD .05300% OR (1) & (2)
8450 Martin L. Rogers .04417% OR (1)
12525 E.O. G. Oil Company .00949% OR (1)
7384 Pacific Enterprises Oil (USA) 1.14387% OR
8222 Marathon Oil 2.12433% OR
9887 James F. Richardson .54470% OR
9915 Main Energy Inc. .54470% OR
12770 Robert L. Poundstone Trust .04228% OR (1)
12771 Everett O. Cummings .04228% OR (1)
12771 hamnc A %A/ .rLm nnrrni rn i.
9000 Amoco Production Co. 1.01689% OR
22 North American Resources Co. 79.88461% WI
100.00000%
(1) Suspended per comment and requirement set out in copy attached.
(2) See additional requirement.
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F 1546 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
WEL n' :TY
NORT AMERWWSN BZSOVRCES COMPANY
- e\ ) C� ��G€��RAQOFFIGFi�: EAST GRANITE, BUTTE, MONTANA 59701
' I"- " ' TELEP'Hbf4E(40%)723-5421 • FAX(406)782-8405
r r-.v
April 16, 1992
To Interest Owners
RE: Gurtler #1
Weld County, Colorado
Greetings:
Enclosed please find two (2) copies of a Gas Division Order relative to your
interest in the above captioned well.
Kindly review the enclosed, if you find them in form, please sign them. Enter
you tax identification number and current mailing address. Have your signature
notarized and return one copy to this office in the self addressed stamped envelope
provided.
Also enclosed is a W-9 form. Please complete and return with your executed
Division Order.
Thank you for your attention to this matter. If you should have any questions,
please contact this office.
Very truly yours,
r t ,
Mary Kay Thompson
Supervisor
Lease Administration
MKT/kmg
Enclosures
KMG/30/0307
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