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RESOLUTION
RE: APPROVE OIL AND GAS DIVISION ORDER FROM TOWER ENERGY
CORPORATION, 11990 GRANT STREET, SUITE 218, NORTHGLENN,
COLORADO 80233, 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, is the holder of a certain
lease with Tower Energy Corporation, and
WHEREAS, said lease covers land more particularly described
as follows:
TOWNSHIP 2 NORTH, RANGE 64 WEST, 6th P.M.
Section 30: SW SW
Weld County, Colorado
WHEREAS, Tower Energy Corporation has submitted an Oil and
Gas Division Order on the subject property, and
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 as submitted by Tower Energy Corporation, 11990
Grant Street, Suite 218, Northglenn, Colorado 80233, 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.
Lcoe9,--17 714,
r�Y
900390
Page 2
RE: DIVISION ORDER - TOWER ENERGY CORPORATION
The above and foregoing Resolution was , on motion duly made
and seconded, adopted by the following vote on the 7th day of May,
A.D. , 1990 .
c .: BOA O COUNTY COMMISSIONERS
ATTEST: 2c .G ,, ;., ;` ,,� ,; WEL NTY, COLORADO
Weld County dlerk and Recorder
and Clerk to the Board ene R. Bran n r, hairman
EXCUSED
BY: c George Kennedy, Pro-Tem
eputy County erk
APPR VED AS TO FORM: on nce . Harbert
i •
C.W. Kirb
County Attorney
Gor
900390
• -
--A 2213119
luWER ENERGY CORPORATION
OIL AND GAS DIVISION ORDER
TO:TOWER ENERGY CORPORATION Property No.: 05.133.00
11990 Grant Street,Suite 218
Northgienn,Colorado 80233 Date: January 1, 1990
Each of the undersigned warrants that he is the owner of the interest set out below opposite his name of the oil(which includes
condensate and other liquid hydrocarbons)and gas(which includes oil well gas and all other gaseous substances),or the proceeds
or value,produced from the Starks 41 lease,unit,pooled or communitized area in
m o Weld County, Colorado ,described as follows:
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U TOWNSHIP 2 NORTH, RANGE 64 WEST, 6th P.M.
Section 30: SW SW
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o t%Subject to the covenants appearing on the reverse side of this page,and commencing as of 7:00 a.m.January 1, 199Q
••'a and until further written notice either from the undersigned or from you,you are authorized to receive oil, gas,Q oil and
gas production therefrom and to purchase and pay for such indicated production as follows:
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a, OWNER NO. CREDIT TO INTEREST TYPE
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Each of the covenants contained on the reverse side of this page is Incorporated in this Division Order by this reference.
Signatures of Witnesses Owners Sign Below Taxpayer identification or
for attest) (Enter Matting Address)
Social Security Number
CHAT , BOARD OF WELD CO NTY
COMMIS NERS
ATTEST , ,i � �cvt- BY: 84-6000813
Address 915 10th Street, P.O. Box 758
Dep ty Cou tY' r.'
i.
Greeley, CO 80632
Address
Address
7 3
The following covenants are an integral part of this Division Order and shall be binding upon each interest owner executing this
Division Order("I" or"me")and upon all my successors,legal representatives and assigns,without regard to whether any other
Interest owner or owners have so signed.
OIL: Oil received and purchased hereunder shall become your property when delivered to you or your purchaser or to any public or
private carrier designated by you.Such oil shall be credited to me in proportion to my interest shown on the face of this Division Order,
based upon the price actually received by you from your oil purchaser and upon the volume computation made by your oil purchaser.
You or your oil purchaser shall receive only oil which,in the sole opinion of you or your purchaser,is merchantable.You are hereby authorized
to deduct from the proceeds which otherwise would be paid to me my proportionate share of the actual cost of rendering the oil marketable,
storing the oil at any point other than the lease tanks, and transporting the oil to the purchaser's point of delivery.
GAS:Settlements for my interest in gas or the "value"or"market value"thereof shall be based upon the actual net proceeds received
by you at the well from your gas purchaser when the gas is sold at the well;if gas is sold,processed or used off the premises.settlements
shall be based upon the market value at the well of the gas, based upon the allocation set forth in a processing agreement covering
such gas or,absent such agreement, upon the same basis as settlements made to other producers for gas of like kind and quality from
the same field or area; provided, however,that such market value at the wells shall never exceed the net proceeds actually received by
you from your gas purchaser
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COMMINGLED PRODUCTION:If the oil or gas is commingled with production from other separately owned land prior to delivery to your
N O purchaser or carrier, my share of the commingled production shall be determined by meter measurements, periodic well test, or any
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other method generally accepted in the industry as an equitable basis for determining the quantity and quality of production sold or delivered
from each separately owned tract; provided, however, that such method shall be uniformly applied to all concerned tracts.
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a UNITIZATION: I hereby join and ratify the terms of any declaration or order establishing the pool,.gommunitized area, or unit ..ii.any`
W described on the face of this Division Order. In addition, if all or ails/portion of the land described herein is included in one or more
aunits now or hereafter formed or revised either voluntarily or by order of any appropriate governmental authority,I agree that this Division
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U Order shall be subject to such unit or units and that settlements to me shall be made in accordance with the production allocated to
W said land without the execution of additional division orders.
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• x SETTLEMENTS:Settlements shall be made each month by check mailed by you to me according to the division of,lnterest herein specified,
Z less any production, severance, occupation or other tax required to be paid or withheld with respect to my interest. If the proceerd.dye
o a me for any month are less than $25, you may defer settlements until the accruals total that sum, provided settlements shall be made
CFI U at least once each calendar year regardless of amount.
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H NOTICE OF TRANSFER: You shall not be responsible for any change in the ownership of my interest unless you have receiyed actual
anotice and satisfactory proof thereof. I agree to notify you in writing of any change of my ownership and,if requested by you,to execute
W and deliver to you an appropriate transfer order in your customary form concerning any such transfer or assignment of my interest. I
also agree that any transfer, assignment or conveyance of any of my interest hereunder shall be made subject to this Division Order
(v and effective at 7:00 a.m.on the first day of the calendar month in which notice is received.Without regard to whether any contingency
rn is expressly stated in this Division Order,you are hereby relieved of any responsibility for determining when any interest set forth herein
'--I z shall increase, diminish, be extinguishes or revert to other parties as a result of the completion of any money or other payments from
N Z,
N any interest, or as a result of the expiration of any time or term limitation (either definite or indefinite), or any other contingency. Until
o you receive notice in writing to the contrary, you are authorized to make all settlements pursuant to the division of interest shown on
N a the face of this Division Order. In the event said written notice is not received by you, I shall hold you harmless for any error resulting
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•%C in over or under payment, or a wrong payment of any such sum or sums.
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N CO TITLE EVIDENCE: Evidence of title satisfactory to you shall be furnished to you at the effective date hereof and at any time thereafter
r-I o when requested by you. If such evidence of title is not furnished,or in the event of any claim or controversy which, in your opinion,con-
ga Ga cerns title to any interest hereunder,you may hold,without interest and without any liability,the amount which otherwise would be credited
to me until indemnity satisfactory to you has been furnished, or until such claim or controversy is settled to your satisfaction.
INDEMNIFICATION: I agree to protect and indemnify you and your production purchaser from and against any loss or expense which
you and your production purchaser may suffer, sustain, or become liable for by reason of your and your production purchaser reliance
on this Division Order, regardless of how such loss or expense may arise and including, but not limited to,the following: any judgment
rendered in an action affecting.title to either the real property herein described or the oil and gas produced therefrom; all reasonable
costs or expenses incurred in defending in such action your position or that of your production purchaser; any claim or judgment for
any tax which may be asserted by any taxing authority against you or your production purchaser in connection with any sum of money
held in suspence by you or your production purchaser during the existence of any claim or controversy.
LEASE RATIFICATION: In consideration of the payments to be made to me hereunder,I ratify and confirm each oil and gas lease relating
to my interest and agree that such lease is now in full force and effect.
CANCELLATION:This Division Order shall remain in full force and effect until cancelled by any party hereto by providing 30 days advance
written notice of such cancellation to the respective parties at their addresses as shown herein.Cancellation of any other interest owner
shall not affect my interest, nor shall my cancellation affect any other interest owner.
GENDER: References contained herein to "he" shall be deemed to refer to "he", "she", or "it", as appropriate. •
900390
EXHIBIT A
PROPERTY NAME: Starks #1 COUNTY, STATE: Weld, CO
OWNER DECIMAL TYPE OF
NUMBER CREDIT TO INTEREST INTEREST*
10262 Weld County Board of County 0. 00726350 RI
Commissioners
915 - 10th Street
P.O. Box 758
Greeley, CO 80632
MO
o U TOTAL INTEREST(S) 0. 00726350
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*WI-Working Interest ORRI-Overriding Royalty Interest RI-Royalty Interest
ter ,
April 9, 1990
TO WHOM IT MAY CONCERN:
Please be advised that effective January 1, 1990, Macey & Mershon
Oil Inc. and its affiliates have sold all of their oil and gas
properties located in the Colorado Counties of Adams, Arapahoe,
Boulder, Morgan and Weld together with their properties located in
Stanton County, Kansas. The properties were sold to North American
Resources Company, a wholly owned subsidiary of Entech, Inc. , a
wholly owned subsidiary of The Montana Power Company of Butte,
Montana, and Tower Energy Corporation of Denver, Colorado. Tower
Energy Corporation has accepted the physical operation of the
properties effective April 1, 1990 .
Macey & Mershon Oil Inc. and its former employees are proud of the
reputation and excellence of operation they have established in the
Denver Basin over the past fifteen years. We are confident that
the new owners will endeavor to provide the same high standards
that Macey & Mershon Oil Inc. have strived to maintain.
Macey & Mershon Oil Inc. extends a most sincere "Thank You" to all
of the royalty and land owners, service contractors, customers and
associates that have contributed so much over the years to its
success. Your confidence, support and assistance will not soon be
forgotten.
In the future, please contact TOWER ENERGY CORPORATION regarding
these properties at Suite 2150, 1600 Broadway, Denver, Colorado
80202 , (telephone: 303-861-9183) .
Sincerely,
EY & MERSHON OIL INC.
AV
James A. Brown, General Manager
MACEY & MERSHON OIL INC.
Sint[ 2150 • 1600 BROADWAY • DENVER. Coiow.00 802024970 • (303) 86)9183
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