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RESOLUTION
RE: APPROVE OIL AND GAS DIVISION ORDER TO HS RESOURCES, INC., 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 HS Resources, Inc., and
WHEREAS, said Division Order covers land more particularly described as
follows:
Township 3 North, Range 67 West, 6th P.M.
Section 21: S)SW) (HSR B/R "B" #13-21)
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 HS Resources, Inc., 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.
940973
gnA i g - a a 2 ,5 Xe.S6 OTee5 //'JC•
DIVISION ORDER - SISWI, S21, T3N, R67W (HSR B/R "B" #13-21)
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 3rd day of October, A.D. , 1994.
BOARD OF COUNTY COMMISSIONERS
ATTEST: LeMteth
WELD COUNTY, COLORADO
-P % 1
Weld County Clerk to the Board /0 / 1 J2 L.) r$-" 2/1
Webster, Cha'rman
BY: 91LQ& ' k .1 1 li... �QJL% t
Deputy erk to the Board Dale Hall, Pr/Te
APPROVED AS TO FORM: / .< e -/-ircx ?71-
Geor e Baxter
-yApre-ix L
ounty ttorie Constance L. Harbert
/ Barbara J. Kirkmeye I/
940973
Mail.1016 OIL AND GAS DIVISION ORDER
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HS RESOURCES, INC. PROPERTY NO.
1999 Broadway, Suite 3600
Denver, CO 80202
(303) 296-3600
Each of the undersigned OWNERS guarantees and warrants he is the owner of the oil and gas interest set out opposite his name on the
reverse side hereof or the proceeds from the sale of oil, gas and hydrocarbons from the property described on the reverse side hereof, and
until receipt of written notice either from HS Resources, Inc., ("HS") or from us, the undersigned owner and all other parties executing this
instrument hereby authorize HS,its successors or assigns to receive and measure such sales in accordance with applicable contractual and/or
governmental rules and regulations and to give credit as set forth on the reverse side hereof.
The following covenants are parts of this instrument and shall be binding on the undersigned, their successors, legal representatives, heirs
and assigns:
Oil:
Oil sold hereunder shall be delivered f.o.b. to the carrier designated to gather and receive such oil, and shall become HS's property upon
receipt thereof by the carrier designated by it or by any other purchaser to whom I-IS may sell such oil. The term "oil"as used in this division
order shall include all marketable liquid hydrocarbons gathered at the lease. HS agrees to pay for the oil sold hereunder at the price received
by it from the purchaser(s), the posted price in the area for oil of the same grade and gravity in the same producing field or area on the date
said oil is received by the designated carrier, or pursuant to the terms of any applicable sales contract. HS is authorized to reduce the price
by any gravity adjustments and truck, tankcar, or pipeline transportation charges as may be charged to it by the purchaser. Should the oil
sold hereunder be resold by HS to another purchaser accepting delivery thereof at the same point at which it takes title, HS agrees to pay
for such oil based upon the volume computation made by such purchaser and at the price received by HS for such oil, reduced by any
transportation or gravity charges deducted by such purchaser. Quality and quantity shall be determined in accordance with the conditions
specified in the price posting.
Gas:
Settlements for gas shall be based on the net proceeds realized by HS from the sale thereof for all volumes as measured at the meter runs)
on the spacing unit described on the reverse side hereof in accordance with HS's gas purchase contracts applicable to the lands after
deduction of a fair and reasonable charge for compressing, fractionation, conditioning, or other process making it merchantable and for
transportation if the gas is sold off the property. Title to the gas shall pass to HS or any purchaser, transporter, or gatherer designated by
HS at the meter run(s) on the spacing unit or at such other place(s) as may be designated in the applicable gas sales contract(s). Where gas
is sold subject to regulation by any governmental authority, the price applicable to such sale approved by such authority shall be used to
determine the net proceeds realized from the sale. The term "gas" shall be deemed to include gas, casinghead gas, gasoline and all other
hydrocarbons and products recovered in the processing and conditioning of such gas. 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("FERC")or the provisions of the
Natural Gas Act or Natural Gas Policy Act of 1978 (The "Acts"), HS may hold without interest the portion of the proceeds subject to refund
unless indemnity satisfactory to HS has been furnished or until HS's refund obligation has been finally determined. If any portion of the
proceeds delivered from the sale of gas is paid over by i-IS under any order, rule or regulation of the FERC or the provisions of the Acts, HS
is authorized to recover the amount of the refund applicable to the interest of each of the undersigned from future payments or, at HS's
election, it may invoice the undersigned therefor, plus the legal rate of interest HS is or may be required to pay in connection with the
undersigned's portion of the refund.
Pooled Production:
Should the oil, gas and/or hydrocarbons produced from the herein-described land ("Production") be commingled with those produced from
one or more other separately owned tracts of land prior to delivery to the designated carrier(s), the commingled Production sold hereunder
shall be deemed to be the interest of the undersigned in that portion of the total commingled Production delivered which is allocated to the
herein-described land on the basis of meter readings, tank strapping or any other method generally accepted in the industry as an equitable
basis for determining the quantity and quality of Production sold from each separately owned tract. Such formula shall be uniformly applied
to all owners of an interest in the tracts of land involved. Should the interest of the undersigned in the Production from the herein-described
land be unitized with that produced from one or more other tracts of land, this instrument shall thereafter be deemed to be modified to the
extent necessary to conform with the applicable unitization agreement or plan and all revisions or amendments thereto, but otherwise to
remain in full force and effect as to all other provisions. In such event, the portion of the unitized Production sold hereunder shall be the
interest of the undersigned in that portion of the total unitized Production delivered which is allocated to the herein described land and shall
be deemed for all purposes to have been actually produced from said land.
Settlements:
Settlements shall be made monthly by check mailed to the respective parties at the latest address known by HS, according to the division
of interest herein specified, less any taxes required by law to be deducted and paid by you applicable to the Interestls) set forth herein.
However, if the amount due any owner is less than Twenty-Five and 00/100 ($25.00) Dollars per month, HS, at its option, may defer the
making of such payment until such time as the aggregate amount due exceeds said sum.
Evidence of Title:
The oil and gas lease or leases, and any amendments, ratifications or corrections thereof, under which said Production is derived, are hereby
adopted, ratified, and confirmed as herein and heretofore amended, and the undersigned OWNER(S) do hereby lease, let and demise to HS
the land contained within the spacing unit designated below under the identical terms and provisions of the lease heretofore executed by
OWNER(S) or its predecessor in interest. In the event any dispute or question arises concerning the title to the interest of the undersigned
in said Production or the proceeds thereof, HS will be furnished, free of cost, satisfactory abstracts or other evidence of title upon demand.
Until such evidence of title has been furnished and/or such dispute, defect, or question of title is corrected or removed to HS's satisfaction,
or until indemnity satisfactory to HS has been furnished, HS is authorized to withhold the proceeds of such oil or gas received and run,
without interest. In the event any action or suit is filed in any court affecting the title to the interest of the undersigned in the herein-described
land or the Production therefrom or the proceeds thereof to which the undersigned is a part, written notice of the filing of such suit or action
'4110 t• , , _ _ —_ I: :'1-' i
Mary Ann Feuer'stein Weld co. . Clerk k Recorue ' 0.00
(h:transfertlandlfomtstdofoen)
1940 97 3
I
\ shall be immediately furnished HS by the undersigned, stating the court in which the same is filed and the title of such suit or action. HS
will not be responsible for any change of ownership in the absence of actual notice and satisfactory proof of receipt of notice and interest
ownership thereof. HS shall be indemnified and held harmless by each party to this division order, to the extent of each party's interest as
set forth herein, from any claims, causes of action, challenges to title and judgments against it or as a result of each party's interest or claim
thereto rendered against HS on account of receiving, purchasing, paying for or transporting Production therefrom credited to such party's
interest pursuant to this division order.
Contingent Interests:
Whether or not any contingency is expressly stated in this instrument, HS is hereby relieved of any responsibility for determining when any
of the interests herein shall increase, diminish, terminate, be extinguished or revert to other parties as a result of the completion or discharge
of money or other payments from said interest, or as a result of the expiration of any time or term limitation (either definite or indefinite), and,
unless HS is also the operator of the property, as a result of an increase or decrease in Production, or as a result of a change in the depth,
the methods or the means of Production, or as result of a change in the allocation of Production affecting the herein described land or any
portion thereof under any agreement or by order of governmental authority, and until HS receives notice in writing to the contrary, it is hereby
authorized to continue to remit the proceeds of Production without liability pursuant to the division of interest shown herein.
Werrentfee:
Working Interest Owners and/or Operators, and each of them, by signature to this Instrument, certify, guarantee and warrant for HS's benefit
and that of any pipeline or other carrier designated to run or transport said oil or gas, that all oil or gas tendered hereunder has been and shall
be produced from or lawfully allocated to the herein described land in accordance with all applicable Federal, state and local laws, orders,
rules and regulations. This instrument may be executed by one or more, but all covenants herein shall be binding upon any party executing
same and upon his heirs, devisees, successors and assigns irrespective of whether other parties have executed this instrument.
The undersigned and each of them, represent, guarantee and warrant that they are the legal owners, in the proportions set out below, of all
the oil, gas and hydrocarbons produced from the well(s) described below.
�� SIP. I /
Well Name(s) : HSR B/R "B" #13-21
Description of Property: S/2SW/4 SECTION 21 YP O3 - 1 I ' D1 _ ell 8'
[Drilling and Spacing Unit] TOWNSHIP 3 NORTH, RANGE 67 WEST I
WELD COUNTY, COLORADO
Formation(s) : Codell & Niobrara
No. of Acres: 80 Acres
Credit To Division of Interest Type
SEE EXHIBIT 'A' ATTACHED HERETO AND MADE A PART HEREOF:
This Oil and Gas Division Order is executed this 3rd day of October , 1S 19 94 , and effective as of the date of first Production.
TTEST : 10 / 05 / 94 P . O . Box 758
Witness of Signature Name W . H . Webster , Chairman Street or Box No.
rk o Bo. d' Weld County Board of Commissioners
BY : " �' / C �to �' F 84- 6000813 Greeley , CO 80632
Witness of nature Social Security (or Tax ID) Number City, State, Zip
Deputy erk to Board
Witness of Signature Name Street or Box No.
Witness of Signature Social Security (or Tax IDI Number City, State, Zip
Witness of Signature Name Street or Box No.
Witness of Signature Social Security (or Tax ID) Number City, State, Zip
2411076 B- 1462 P- 3 " 9 10/ 1 —/94 02 : 5Th PG 2 OF
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(h.IransreNantl Corms doform2)
940973
HS RESOURCES, INC.
EXHIBIT 'A'
DATED SEPTEMBER 16, 1994
HSR B/R "B"ti 13-21
TOWNSHIP 3 NORTH, RANGE 67 WEST
SECTION 21: S/2SW/4
WELD COUNTY, COLORADO
CODELL/NIOBRARA FORMATION
NAME INTEREST TYPE
Elvema Burchfield .05496875 RI
c/o Agricola Realty & Management L.L.C.
724 West Railroad Avenue
Fort Morgan, CO 80701
Sherry Redmond .05496875 RI
c/o Agricola Realty & Management L.L.C.
724 West Railroad Avenue
Fort Morgan, CO 80701
Pyramid Energy, Inc. .00157812 RI
14100 San Pedro #700
San Antonio, TX 78232
arnliS5/eld County Board of Land Commissioners .00062500 RI
10th Street
Greeley, CO 80632
Union Pacific Resources Company .02571875 RI
P. O. Box 7
Ft. Worth, TX 76101-0007
X O Exploration, Inc. .00095000 ORI
c/o Max Ernest
14182 W. 4th Avenue
Golden, CO 80410-5218
HS Resources, Inc. .86119063 WI
One Maritime Plaza, 15th Floor
San Francisco, CA 94111
TOTAL 1.00000000
?3110-1, -1463 P_3-4 tC/1-/a4 0'_:5-P PS ; OF 3
NOTE: THIS EXHIBIT IS PART OF THE DIVISION ORDER AND IS NOT TO BE REMOVED.
940973
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