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Home My WebLink About930187.tiff S � RESOLUTION RE: APPROVE CONSENT TO COMMINGLING WITH BASIN EXPLORATION 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 Consent to Commingling with Basin Exploration, 370 17th Street, Suite 1800, Denver, Colorado 80202, and WHEREAS, said Consent to Commingling covers land more particularly described as follows: Township 2 North, Range 65 West, 6th P.M. Section 18: EZ Muse #1 and Muse #2 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 Consent to Commingling, a copy of which is attached hereto and incorporated herein by reference, and WHEREAS, said Consent to Commingling 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 Consent to Commingling on the parcel of land described herein. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Consent to Commingling with Basin Exploration, 370 17th Street, Suite 1800, Denver, Colorado 80202, 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 Consent to Commingling. 930187 L E6D0 ► r,._. ; 7 CONSENT TO COMMINGLING - BASIN EXPLORATION PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following� vote on the 22nd day of February, A.D. , 1993. ATTEST: /� / //2 BOARD OF COUNTY COMMISSIONERS �� l o' WELD OUNTY, COLORADO Weld County Clerk to the Board -�- �,C.-ica �` /�� Constance L. H berttt,,�Chairman fI Deputy Clerk to the W. H. ebst r, Pro-Te� �� APPROVED AS TO FORM: cfb 0eo� torn ge E. axte _ Cau3rCy A Da K. Hall I -: 7 Barbara J. Kirkmeyex 930187 AR2323b71 �.• I_� ( i l Y BASIN EXPLOR TION , , 16 INC. TO TI;_ January 18, 1993 Weld County C/O Board of Commssioners P.O. Box 758 Greeley, CO 80632 Re: Consent to Commingling Muse #1 and Muse #2 E/2, Section 18-2N-65W Weld Co. , Colorado Gentlemen: Previously Basin Exploration Company ( "Basin" ) had sent to you a commingling notice and consent form for the Muse # 2 well . The consent form would allow Basin to commingle the "J" Sand formation with the Codell and Niobrara in the same well bore of the Muse # 2 , that already has production of the "J" Sand formation in the SE/4 of Section 18 . Basin believes that this method of producing oil and gas from the well will maximize the recovery of mineral resources and will benefit all parties with interests in the well . The letter that was sent to you for the Muse #2 inadvertently reflected the interests for the Codell and Niobrara spacing unit incorrectly. Please replace Exhibit "A" of your previous letter with the corrected Exhibit for the Muse #2 , (SE/4 ) , for Codell- Niobrara spacing. In addition to the commingling of the Muse # 2, Basin is now proposing the commingling of the Muse # 1 . However, the designated producing unit for the "J" Sandstone Formation in this well is 320 acres, while the designated producing units for the Codell and Niobrara formations in the wells is 160 acres . A description of the respective unit, along with your participation in each of the units are as further set out on Exhibit "A" attached hereto. In order to commingle the production from these different formations and units, the Oil and Gas Conservation Commission of the State of Colorado ( "Commission" ) provides that Basin may obtain your consent. The Commission also provides that Basin may obtain your agreement to a method, or formula, whereby the common production stream will be allocated between the two producing units . Basin is proposing the allocation formula described on Exhibit "B" attached hereto, which is self-explanatory. B 1372 REC 02323671 03/02/93 16:36 $0 .00 1/007 F 1089 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 930187 370 17th Street, Suite 1800 Denver, Colorado 80202 Office 303/685-8000 FAX 303/685-8010 )-. OC is 3. cc. ; a 151'v (O ktu''a/u , 1-3) January 18, 1993 Commingling Consent Muse #1 & #2 If you consent to commingling of the "J" Sandstone Formation along with the Codell and Niobrara Formations in the Muse #1 well, and further agree to the proposed allocation method for allocating oil and gas production between the two separate producing units, please date and sign one original copy of this letter in the space provided below, have your signature acknowledged before a Notary Public, and return one original copy of the letter, executed and acknowledged, to Basin at the address set out below. If you have any questions concerning this matter, please feel free to contact the undersigned of Basin. For your convenience, I have enclosed my card. Sincerely, ( ?liet4--,' 62-,A4 C. Elaine Carleton Landman ACCEPTED AND AGREED TO THIS 22ND DAY OF FEBRUARY , 1993 . BOARD F COUNTY COMMISSIONERS - WELD COUNTY BY: ` ,�.�-€.." �dlU` 22 /93 TITLE: CHAIRMAN STATE OF COLORADO ) ) SS . COUNTY OF td,�_41 ) •„T,;2e foregoing instrument was acknowledged before e this ,004 d , " 1= 1993, by (yam _ > o 4 +-LZ� , as as cMn�, "- of the Board of County Commissioners on behalf of. 'c eld County. Witness my hand and official seal . My comiliision expires : /7 API COMMISSION EXPIRES JUNE 8, 1999 Notary Public B 1372 REC 02323671 03/02/93 16 :36 $0 .00 2/007 F 1090 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 93019'7 EXHIBIT "A" E/2 Section 18 320.0 acre spacing unit limited to the "J" Sand formation OWNER NAME & ADDRESS NET REVENUE INTEREST Amoco Production Company 2 .51953 % P.O. Box 800 Denver, Colorado 80202 Carol Bell 1 .46484 % 1671 Weld County Road 63 Keenesburg, Colorado 80643 Phyllis Bollman 1 .46484 % 50 Albion Street Denver, Colorado 80220 Energy Minerals Corporation 2 . 32423 % 518 17th Street, Suite 1010 Denver, Colorado 80202-4111 Fayrene Meyers 1 .46485 % 2949 S. Patton Court Denver, Colorado 80236 Eugene Muse 1 . 46485 % 635 S. Fulton Avenue Fort Lupton, Colorado 80621 Maynard Nichols . 58594 % P.O. Box 192 Hudson, Colorado 80642 Potts Farm Account 5 . 81054 % C/O Harvey O. Potts, Manager P.O. Box 237 Meade, Colorado 80542 Weld County . 43945 % C/O Board of Commissioners P.O. Box 758 Greeley, Colorado 80632 Basin Exploration, Inc. 82 . 46093 % Basin Operating Company 370 17th Street, Suite 1800 Denver, Colorado 80202 * Basin' s interest only as allocated to the Muse # 1 J-Sand production. Exhibit A, Page 1 B 1372 REC 02323671 03/02/93 16:36 $0 .00 3/007 F 1091 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 920187 Exhibit "A" continued In addition to the preceding owners for the entire 320 acre spacing unit, the following owners have an interest in the J-Sand Production in the SE/4 (Muse #2) . Their interests and Basin' s repective interest for the J-Sand Muse #2 well is as follows: Tommy D. Ables .20365 % 17050 County Road 136 Tyler, Texas 75703-7307 Norman M. Bodily . 20365 % 8210 Lake Bend Drive Roulett, Texas 75088 John D. Cranor 1 . 00000 % 5735 South Ivy Englewood, Colorado 80111 Robert L. Snyder . 81461 % 807 Aspen Drive Cody, Wyoming 82414 Basin Exploration, Inc. 80 .23902 % Basin Operating Company 370 17th Street, Suite 1800 Denver, Colorado 80202 These additional interests in the Muse #2 well for the J Sand do not affect the previously stated owners' interest in the Muse #2 well or the Muse #1 well. Exhibit A, Page 2 B 1372 REC 02323671 03/02/93 16:36 $0 .00 4/007 F 1092 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO Exhibit "A" continued EXHIBIT "A" SE/4 Section 18 160.0 acre spacing unit limited to the Codell and Niobrara formations OWNER NAME & ADDRESS NET REVENUE INTEREST Amoco Production Company . 70313 % P.O. Box 800 Denver, Colorado 80202 Energy Minerals Corporation 4 . 64844 % 518 17th Street, Suite 1010 Denver, Colorado 80202-4111 Potts Farm Account 11 . 62110 % C/O Harvey 0. Potts, Manager P.O. Box 237 Meade, Colorado 80542 Weld County . 87890 % C/O Board of Commissioners P.O. Box 758 Greeley, Colorado 80632 Tommy D. Ables .20365 % 17050 County Road 136 Tyler, Texas 75703-7307 Norman M. Bodily .20365 % 8210 Lake Bend Drive Roulett, Texas 75088 John D. Cranor 1 . 00000 % 5735 South Ivy Englewood, Colorado 80111 Robert L. Snyder . 81461 % 807 Aspen Drive Cody, Wyoming 82414 Basin Exploration, Inc. 79 . 92652 % Basin Operating Company 370 17th Street, Suite 1800 Denver, Colorado 80202 Exhibit A, Page 3 B 1372 REC 02323671 03/02/93 16:36 $0.00 5/007 F 1093 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO r1nn.a can.. Exhibit "A" continued EXHIBIT "A" NE/4 Section 18 160.0 acre spacing unit limited to the Codell and Niobrara formations OWNER NAME & ADDRESS NET REVENUE INTEREST Amoco Production Company 9 . 37500 % P.O. Box 800 Denver, Colorado 80202 Carol Bell 2 . 929685 % 1671 Weld County Road 63 Keenesburg, Colorado 80643 Phyllis Bollman 2 . 929685 % 50 Albion Street Denver, Colorado 80220 Fayrene Meyers 2 . 92969 % 2949 S. Patton Court Denver, Colorado 80236 Eugene Muse 2 . 92969 % 635 S. Fulton Avenue Fort Lupton, Colorado 80621 Maynard Nichols 1 . 17188 % P.O. Box 192 Hudson, Colorado 80642 Basin Exploration, Inc. 77 . 73437 % Basin Operating Company 370 17th Street, Suite 1800 Denver, Colorado 80202 Exhibit A, Page 4 B 1372 REC 02323671 03/02/93 16 :36 $0.00 6/007 F 1094 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO EXHIBIT "B" PROPOSED ALLOCATION METHOD "Production" The "Production Method" of allocation assigns monthly volumes of oil and gas to each formation which is commingled within a single wellbore. The volumes are determined by estimating the reserves for each formation suing actual production histories . The oil and gas reserves for each formation are then used to establish the contribution of each formation to the total recovery from the well. The ratios between each formation will remain the same for the life of the well. The procedure is as follows : 1 . Calculate the "J" Sand reserves for the subject well . 2 . Plug back the "J" Sand and complete the Codell formation. 3 . Produce the Codell formation a minimum of three months to establish a stabilized production trend. 4 . Calculate the Codell reserves for the subject well. 5 . Determine the ratio of gas reserves on an MMBTU basis and the oil reserves for each formation for each year of the life of the well . 6 . Allocate monthly production for reach year based on the projected oil and gas ratios calculated for that year. 7 . Example of allocation: Let Al = "J" Sand Oil Reserves for Year Let A2 = "J" Sand Gas Reserves for Year Let Si = Codell Oil Reserves for Year Let B2 = Codell Gas Reserves for Year Total Oil Reserves for Year = Al + B1 Total Gas Reserves for Year = A2 + B2 "J" Sand Allocation Oil Factor for Year = (A1/(A1+B1) ) "J" Sand Allocation Gas Factorfor Year = (A2/(A2+B2) ) Codell Allocation Oil Factor for Year = (B1/(A1+B1 ) ) Codell Allocation Gas Factor for Year= (B2/(A2+B2) ) 8 . All "J" Sand royalty owners within the standard 320 acre "J" Sand spacing unit will be paid based on the "J" Sand allocation, and all Codell royalty owners within the 160 acre Codell spacing unit will be paid based upon the Codell allocation. 930187 ELK EXPLORATION, INC. 1801 Broadway 3807 Carson Avenue CORPORATE OFFICES Suite 1050 731 Sansone Street Denv)er,CO 80202 Evans, CO 80620 Filth Floor (303(telefax 30322-5642) (telefax 303/330-0639) C(303)330-0614 San Francisco,CA 94111 (tale 415/4335911) ¶: t 0 CLE February 16, 1993 Re: HSR GRIFFITH #5-2 N/2 Section 2 , Township 3 North, Range 66 West, 6th P.M. , Weld County, Colorado Dear Interest Owners: Enclosed herewith is a Division Order, in duplicate, for the captioned well in which you own an interest . For owners signing on behalf of a corporation, the division order must be signed by a duly authorized officer and attested. The corporate seal must be affixed and the title of the signing officers shown. For owners signing as individual owners, after verifying that your interest is correct, please sign the original before TWO witnesses, show your social security and/or tax identification number, check your address for accuracy, and return the original to us in the envelope provided. The extra copy is for your records. If you have any questions or if I can be of assistance to you in any way, please call me at (303) 330-0614 . Sincerely yours, ELK EXPLORATION, INC. Jo Ann Dubler 930187 Hello