HomeMy WebLinkAbout940663.tiff RESOLUTION
RE: APPROVE OIL AND GAS DIVISION ORDER TO GERRITY OIL AND GAS CORPORATION 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, on July 11, 1994, received an Oil and Gas
Division Order to Gerrity Oil and Gas Corporation, 4100 E. Mississippi Avenue,
#1200, Denver, Colorado 80222, and
WHEREAS, at said meeting on July 11, 1994, the Board deemed it advisable
to continue said matter to July 18, 1994 to allow time for County Attorney's
staff to further research said matter, and
WHEREAS, said Division Order covers land more particularly described as
follows:
Township 3 North, Range 66 West, 6th P.M.
Section 19: WI as to production from the
Codell and Niobrara formations,
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 Gerrity Oil and Gas
Corporation, 4100 E. Mississippi Avenue, #1200, Denver, Colorado 80222, 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.
940663
1 x'/') 117 '1 CS C: 6ci ti rti
DIVISION ORDER - WI S19, T3N, R66W
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 18th day of July, A.D. , 1994.
A.4, / BOARD OF COUNTY COMMISSIONERS
ATTEST: / //G2 WELD COUNTY C LORADO
/
Weld County Clerk to the Boar
(49211‘tilc1&HH.. ebsster, Chan BY: Deputy Cler t the Board Dale K. Hal Pro-Tern
APPR S TO FORM: EXCUSED DATE OF SIGNING (AYE)
Geor E. Baxter
County Ayttorn y "— Constance L. Harbert
EXCUSED DATE OF SIGNING (AYE)
Barbara J. Kirkmeyer
940663
MEMORANDUM
To: Board of County Commissioners
From: Bruce T. Barker, County Attorney
Subject Division Order from Gerrity Oil and Gas Corp.
The Division Order for the Platteville#2-19 Recom well was continued from July 11, 1994, to
July 18, 1994. The question from the Board was whether the last sentence under paragraph 1.
modifies the original oil and gas lease. The original lease requires the lessee to pay the County the
price for oil received at the wellhead. The last sentence in paragraph 1. of the Division Order
seems to modify that price by allowing Gerrity the opportunity to deduct transportation charges
from the price received at the wellhead before payment to Weld County.
I spoke with Dona Sanne of Gerrity Oil on July 14, 1994. She told me that her understanding of
that provision is that it does not alter the original lease, and, even if it is intended to do so,
Colorado law prohibits an oil company from modifying an oil and gas lease via language in the
division order. She did not believe that any costs for transportation have been deducted from
royalties received in that field. Dona suggested that I check the statements for the Platteville#1-19
well, because this recompletion well will be similar in terms of the amounts of deductions. She
also suggested that many landowners merely "line-out" those provisions in the division orders
which they do not like before sending the orders back to Gerrity!
Attached are copies of the statements for the Platteville#1-19 well for Jan. 25, 1994, and May 25,
1994. As you can see, the company has not been deducting transportation costs. The Platteville
#1-19 well has the same division order form as that before you now for the Platteville #2-19
Recom well, including the same"transportation cost deduction"language.
On Friday, July 15, 1994, I spoke with Keith Crouch, attorney for Gerrity. He told me that
Gerrity sells oil two ways. First, it may sell the oil to a company which goes to the site and
collects the oil. In that case, Gerrity does not have any transportation costs, and, as a result, the
lessors will get the price paid Gerrity without any deductions. The price in that case would
probably be $16.50 per barrel. Keith believes the Platteville #2-19 Recom is this type
arrangement. The second method is where Gerrity has to transport the oil to a refinery and then is
paid a price there. In that case, the price would probably be $18.00 per barrel received. Then
Gerrity would deduct the transportation costs ($1.50 per barrel) to get back to the price per barrel at
the wellhead ($16.50). He assured me that even in those cases where transportation costs are
deducted, the lessor still gets the price paid at the wellhead.
I suggest that in this case, it is not necessary to worry about the language in the last sentence of
paragraph 1. of the Division Order.
L r 0
) O 17 940663
GERRITY OIL & GAS CORPORATION 2434
4100 E MISSISSIPPI DENVER , CO. 80222
303-757-1110
ORIGINAL , DO NOT THROW AWAY, RETAIN FOR YOUR RECORDS .
PAGE 3
PAYEE: 6413 WELD COUNTY COLORADO CHECK NO = 3322 DATE: 01/25/94
SALE TYP YOUR YOUR
DATE PROD INT PRICE QUANTITY GROSS INTEREST SHARE
WELL : 05013811 LOUSTELET E 15-11
FORMATION: COL
11 /93 G R_ 0 . 0000 267. 00 0 . 00 :MME i U :
GROSS VALUE 447.33 0 . 001701F0 0 .7.
SEVERANCE TAX 8.9S 0 - 0
AO VALOREM TAX 33 _ S5 0 . 0
NET AMOUNT 404.83 0 . 6
WELL : 05018-11 PLATTEVILLE 1-19
FORMATION : JN
11/93 0 RI 14 -2329 67. S2
GROSS VALUE 1001 .52 0 . 00241200 2 .4
NET AMOUNT 1001 -S2 2 -4
11 /93 G RI i .819LF 2402 .23
GROSS VALUE 4370 . 60 0 . 00241800 10 .S
NET AMOUNT 4370 .60 10 .S
WELL : 05025921 VOLLMAR i
FORMATION: SX
11 /93 0 RI 14 .8330 197-41
GROSS' VALUE 2928. 12 0 . 00021880 0 . 6
NET AMOUNT 2928. 12 0 - 6
TOTAL CHECK AMOUNT 211 .7:
PRODUCT LEGEND
0 OIL G GAS
940663
WAMMfI..I..*..`
GERRITY OIL Sc GAS CORPORATION 2741
410.. E MISSISSIPPI DENVER, CO. 30222
303-757-1110
ORIGINAL. DO NOT THROW AWA'c' , RETAIN FOR YOUR RECORDS .
PAGE 4
PAYEE : 8 r 05/25/94
•' 6413 WELD '=[?t.?P.I �`� '���LORAUL? c:!�E•I!^, i�1_ ,6 70 DATE :
SALE TYP '/OUR YOUR
j
DATE PROD INT PRICE QUANTITY CROSS INTEREST SHARE
WELL : 05013811 LOUSTELET B 15-11
FORMATION : CDL t .y1, i. I`'F
01 /94 C RI 0 .0000 7L4 . 00 '• 1 . '.12T .1
GROSS VALUE . 12•.2 .53
0.00170430 2 . 08
SEVERANCE TAX 24 .45 0.04
AD VALOREM TAX 91 . 69 0. 16
NET AMOUNT 11'36.39 1 .33
02/94 G RI 0 .0000 320.00 0 .0n n1»`TU}
GROSS VALUE 4=5.76 0.0017 0430 0 .76
SEVERANCE TAX 8 . 92 0 .02
AD VALOREM TAX 33.43 0. 06
NET AMOUNT 407 .41 0. 62
0394 G RI 1 .4298 454 . 00
GROSS VALUE 649. 15 0 . 00170430 1 . 11
SEVERANCE TAX 12.98 0.02
AD VALOREM TAX 43.69 0.08
NET AMOUNT 527 . 48 1 . 01
WELL : 05017751 OSTER Pm F 11 --13
FORMATION: CN
03/94 0 RI 12.7934 163 . 94
GROSS VALUE 2 : 62 . 16 0.00092180 1 . 99
J
SEVERANCE TAX =3._4 0.04
AD VALOREM TAX : L,2. 16 0 . 15
NET AMOUNT 1956.76 1 .80
WELL: 05018611 PLATTEVILLE 1 -19 (J)
FORMATION: JN
01 /;4 0 RI 2.0916 1771 . 97
GROSS VALUE X2 .52 0 . 00241300 3 . 76
NET AMOUNT 362.58 8 . 76
02/94 G RI 2 . 1210 1503 .03
CROSS VALUE 3198 .71 0 . 00241800 7 . 73
NET AMOUNT 3198 . 71 . . 73
940663
GL. .,-I T Y OIL GAS CORPORATIOk O!. 2742
4100 E MISSISSIPPI DENVER, CD. 80222
303-757-1110
ORIGINAL , DO NOT THROW AWAY , RETAIN 0R YOUR RECORDS .
PAGE 5
PAYEE : X413 WELD, :TuN CY COLORADO iC< AD: 6870 DATE; 05/25/94
SALE TVP YOUR YOUR
DATE PROD INT PRICE QUANTITY GPCcv INTEREST SHARE
03/94 C RI 2 .0014 1672. 83
GROSS VALUE 7348.04 0.00241200 2 . 1 C
NET AMOUNT 2 -8.04 3 . 1
WELL : 05026651 WATADA RED WW 19-04 D ?.J
FORMATION; JSD
03/93 C RI 0 .0000 122 . 00 0 , C7 ,,R:OBTU)
GROSS VALUE 2 . • _ 0.00071020 2 .65
SEVERANCE TAX 74 .53 0.05
AD VALOREM TAX ._x'9 .50 0.20
NET AMOUNT -2 .70 2 .40
04/93 G RI 0.0000 _ff75 . 00 0.00 niSTU)
GROSS VALUE _25 . 85 0. 00071020 t . 25
?
SEVERANCE TAX ; ' . / 2 0 . 10
CONSERVATION TAX 9 .60 0 . 01
AD VALOREM TAX 553.94 C' . 29
NET AMOUNT -,..-:4 .59 L .75
05/93 C RI 0 .0000 4b92 . 000 0 .0: P.,•!rTU)
GROSS VALUE _ .'23 . 0.00071D20 7 .48
SEVERANCE TAX _ . . . 56 0. 15
CONSERVATION TAX 13. 69 0.01
AD VALOREM TAX _3.{♦ .60 0 .54
�f NET AM .:
OUNi /� 5 .i . • A . -70A . -7000/93 C RI 0 . 0000 :45 . 00 .0 iMMl Z )
GROSS VALUE 675. 74 0. 00071020 4 . 21
SEVERANCE TAX 121 .51 0 . 0?
CONSERVATION TAX 7 .90 G . 01
AD VALOREM TAX 455.68 . 32
NET AMOUNT 5490.65 2 . 3c
07/93 C RI 0 . 0000 2067 . 00 0.00 :MMBTU)
GROSS VALUE 3639. 18 0.00071020 2 . 52
SEVERANCE TAX 72.78 0 . 05
AD VALOREM TAX 272.94 0 . 19
NET AMOUNT 32=3 .46 2 . 34
940663
AL AND GAS DIVISION ORDER
Date: May 27, 1994
Ake3laaMa Lease No.: 05018632
Lease Name:Plattevills 2-19 Recom
Effective Date: 1st Production
To: Gerrity Oil &Gas Corporation
4100 E. Mississippi Ave., #1200
Denver, CO 80222
Each of the undersigned, individually, for themselves, their heirs, successors, and assigns, hereby
represents, warrants, and guarantees to Gerrity Oil & Gas Corporation (hereinafter referred to as the
"Company"►, its successors and assigns,that the undersigned is the legal owner of the decimal interest, as set
forth below opposite each undersigned's name, in the proceeds from all oil, condensates, and natural gas which
may be produced from or allocated to the following-described area or well located in the County of Weld, State
of Colorado, and more particularly described as follows:
Township 3 North. Ranee 66 West. 6th P.M"
Section 19: W% as to production from the Cahill and Niobrara formations
Commencing on the effective date hereof, the Company is hereby granted and authorized to take and
receive all oil, condensates, and natural gas which may be thereafter produced from the above-described area or
well and, subject to the other terms and conditions hereof, to give credit therefor to the undersigned in
accordance with the division of interest schedule as follows:
Credit To Address Percent Interest
For Division of Interest see Exhibit'A"Attached Hereto and Made a Part Hereof
Additionally, in consideration of the wells drilled or to be drilled on the above-described lands and the
payment to the undersigned of royalties on production from said wells, the undersigned agree, grant, and
represent to and with the Company as follows:
1. Oil (including crude oil and condensate) shall become the property of the purchaser thereof
upon its delivery to the purchaser or to the purchaser's agent or carrier, and payments hereunder shall be based
upon the net price received therefor from the purchaser. Oil shall be graded and measured in accordance with
appiicabie rules, regulations, or standards generally accepted in the industry. In the event that the Company is
the purchaser of such oil, settlements therefor shad be based upon the Company's posted price for sirnildr oil Tr.
the field where produced and in effect on the date of delivery, or if no posted price is then in effect, settlements
shall be based upon the then prevailing market price on the date of delivery thereof in the field where produced.
If the oil is purchased by the Company and resold to another purchaser accepting delivery thereof on the
premises, settlements hereunder shall be based on the net price received therefor by the Company. The
Company may deduct from any price received for the oil the reasonable costs of transporting and/or treating the
same if incurred.
2. Natural gas, including casinghead gas if marketed with gas well gas, shall be delivered and sold
to and become the property of the pipeline company to whom the gas is agreed to be sold by the Company.
Settlements to the undersigned shall be based upon the terms, conditions, and prices for said gas as agreed to
with the pipeline company less any costs of treatment, compression, transmission, or dehydration thereof which
are paid by the Company.
3. Oil and natural gas produced and sold from the premises is or may become subject to orders of
certain regulatory authorities who could vary the terms of any agreement for the production or sale thereof. To
the extent that such orders do modify or change current sales or production arrangements, the provisions
thereof, as well as the provisions hereof, shall be so modified accordingly.
4. Settlements hereunder for oil and gas shall be made monthly by the Company mailing or
delivering its check to the undersigned at the address indicated in an amount, less taxes required to be withheld,
calculated in accordance with the schedule of interest as herein contained. Settlements shall be mailed no later
than the 26th day of each month for oil and/or gas taken or sold during the second preceding calendar month. If
at any settlement date the amount payable to any of the undersigned shall be less than Twenty-five Dollars
($25), the Company may defer such payment and make payment when such settlement amount has
accumulated to Twenty-five Dollars 1025)but, in any event, not less than annual intervals.
5. The undersigned individually warrant that they are the owner of their respective interest as
herein set forth and that in the event of an adverse claim made thereto or in the event ownership of the
undersigned's interest is not substantiated by record examination, the Company may retain any and all
settlements due therefor, without interest, until such claim or ownership of the interest is settled, fully
adjudicated or otherwise determined, or until the Company is adequately indemnified therefor by the parties
claiming such interest. The Company may, at any time, require the undersigned to furnish proof of its title to its
interest, including abstracts of title or other pertinent records or documents.
B 1452 REC 02398848 07/22/94 15: 54 $0. 00 1/003 940639
F 0180 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
_ (211)1
940663
6. The undersigned notify the Company of any change in the ownership r it interest, and the Company shall not
be liable for,nor shall it be required to recognize,any change in ownership unless and until the Company shall actually receives certified copy
of the instrument changing such interest sad the transferee thereof executes and returns to the Company such transfer order or amended division
order as the Company may reasonably require. In no event shall the Company be required to give effect to any change of interest of the
undersigned prior to the first day of the calendar month next following the month in which the Company is notified of such change,regardless
of the effective date of the instrument transferring the same.
7. The undersigned hereby represent,grant to,and agree with the Company that the interest of the undersigned and of the
Company in and to the oil and gas which has or which may be produced from the premises is in full force and effect and that all payments
required to be made and all acts required to be done by the Company with respect thereto have been performed. The undersigned hereby releases
the Company from any and all claims and damages arising from the purchase and handling of oil or gas from the premises and for nuking any
payments for settlements so long as the same are made in accordance with the terms of the division of interest schedule set forth on Exhibit'A'.
S. In the event that the area or well described above,or any part thereof,is included in one or more pooled or unitized units
now or hereafter formed by order of any appropriate governmental authority by agreement or otherwise, the undersigned and the Company
recognize and agree that settlement for oil and gat shall be made in accordance with the production allocated to the premises above described
without the necessity for the execution of additional or supplemental division orders. To the extent that the premises as described above
constitute a,previously pooled or unitized area,the same is hereby ratified.
9. The provisions hereof shall be binding upon and inure to the benefit of the Company and the undersigned,their respective
heirs,successors,administrators,and assigns. No change in the ownership of any interest herein described shall have the effect of changing
the binding nature hereof. This inawmem may be executed in counterparts with each counterpart considered to be a binding agreement of the
signatories thereto;and sU counterparts,as executed,shall be considered to be one instrument.
10. Should it be determined from time to time by the courts,any governmental agency having jurisdiction,or the Company
and the purchaser of production,that the prices or allowances,if any, being paid to the Company and the amounts being disbursed to the
undersigned are in excess of lawful prices or prices agreed to with the oil or gas purchaser,and a refund Is then required,you agree to promptly
refund such excess amounts so paid to you,including interest thereon,if required. Additionally,the Company shall have the right to recover
such excess amounts out of future settlements hereunder to which you are entitled.
WHEREFORE,the undersigned have executed this Division Order in acknowledgmentend consent to the foregoing terms,warranties,
and agreements.
n Sign Ili/ - - ,`z� Owner Sign Below: SS No.or Tax ID No.
ATTEST: IJ////� Q, 84-6000813
CLERK TO #?ARD, W. H. WE TER, CHAIRMAN/ 07/13/94
, WELD COUNTY BOARD OF COMMISSIONERS
BY:� P.O. BOX 758
DEPUTY C GREELEY, CO 80632
IMPORTANT: TO AVOID DELAY IN PAYMENT,YOUR CURRENT ADDRESS AND SOCIAL SECURITY NUMBER OR TAX
ACCOUNT NUMBER MUST BE SHOWN
B 1452 REC 02398848 07/22/94 15 : 54 $0 . 00 2/003
F 0181 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
940663
EXHIBIT "A"
05018632 - PLATTEVILLE 2-19 REC (CH/NB)
OIL AND/OR GAS DIVISION ORDER
DECIMAL INTEREST
NAME AND ADDRESS OWNER NO. INTEREST TYPE
ROBERT & VIRGINIA BURSON 5883 0.00010090 R
121 VALENTINE Ill
LONGMONT CO 80501
CAROL G ROBERTSON 5893 0.00005950 R
1506 SANCHEZ CT
BOX 544
PLATTEVILLE CO 80651
LARRY R & JEANETTE K GREY 5904 0.00005200 R
P O BOX 465
PLATTEVILLE CO 80651
GLEN O & NANCY R DEINES 5948 0.00014270 R
100 N DIVISION
BOX 68
PLATTEVILLE CO 80651
GREGORY S 6 CARMEN M POLAND 6012 0.00014270 R
P 0 BOX 448
PLATTEVILLE CO 80651
LEON G DELA FUENTE 6044 0.00007120 R
JOANNA R DELA PUENTE
902 MAIN ST
BOX 155
PLATTEVILLE CO 80651
ROGER B & MARY E OLSEN 6046 0.00001090 R
7250 ELM ST
LONQMONT CO 80501
JANET F INDVIK 6069 0.00009910 R
1513 BELLA VISTA DR
PLATTEVILLE CO 80651
FRANCISCO T 6 CONNIE LIANAS 6108 0.00014270 R
P O BOX 562
PLATTEVILLE CO 80651
KEVIN W & JESSICA R WILLIAMS 6109 0.00014270 R
P 0 BOX 346
PLATTEVILLE CO 80651
VETERANS AFFAIRS ADMIN OF 6162 0.00006850 R
P 0 BOX 25126
DENVER CO 80225
DUMMY 6194 0.00476060 R
KAREN S & DALLAS F MAVIS 6326 0.00002600 R
1500 SANCHEZ CT
PLATTEVILLE CO 80651
JACK D 6 CHLOE 8 BLAZER 6360 0.00014270 R
P 0 BOX 2002
CAMP VERDE AZ 86322
ROGER L & TONYA M MAXEY 6390 0.00005950 R
1707 JUANITA CT
PLATTEVILLE CO 80651
MAGDALENO P 6 THERESA M GAMA 6397 0.00005460 R
1507 CARMELITA CT
BOX 89
PLATTEVILLE CO 80651
EDDIE 6 BERTHA VIGIL 6408 0.00005950 R
1508 CARMELITA Cr
P 0 BOX 338
PLATTEVILLE CO 80651
WELD COUNTY COLORADO 6413 0.00241800 R
C/O BOARD OF CTY COMMISSIONER
915 10111 ST
GREELEY CO 00632
GUILLERMO D R GUAJARDO 6415 0.00007120 R
RTE 2 BOX 215
402 LIBERTY AVE
PLATTEVILLE CO 80651
GRACE E ONEILL ESTATE 6420 0.00024970 R
BARBARA ANN JOHNSON PERS REP
P 0 BOX 64
PWTTEVILLE CO 80651-0064
RAYMOND 6 CORINA MORA 6461 0.00014270 R
312 CENTRAL AVE
BOX 218
PLATTEVILLE CO 80651
B 1452 REC 02398848 07/22/94 15 : 54 $0 . 00 3/003 �3
0182 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO , CO 94 v ej3
Hello