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Home My WebLink About930237.tiff RESOLUTION RE: APPROVE TWO OIL AND GAS DIVISION ORDERS TO ELK EXPLORATION, INC. , AND AUTHORIZE CHAIRMAN TO SIGN - S1NW,' S20, T3N, R66W (HSR ATHERTON #5-20 AND HSR BERNSTEIN #6-20) 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 two Oil and Gas Division Orders to Elk Exploration, Inc. , 3807 Carson, Evans, Colorado 80620, and WHEREAS, said Division Orders cover land more particularly described as follows: Township 3 North, Range 66 West, 6th P.M. Section 20: S;NWt (HSR Atherton 115-20 and HSR Bernstein #6-20) 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 Orders, copies of which are attached hereto and incorporated herein by reference, and WHEREAS, said Division Orders have 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 Orders on the parcel of land described herein. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the two Oil and Gas Division Orders to Elk Exploration, Inc. , 3807 Carson, Evans, Colorado 80620, on the hereinabove described parcel of land be, and hereby are, approved. BE IT FURTHER RESOLVED by the Board that the Chairman be, and hereby is, authorized to sign said Division Orders. 930237 I nIf nn rib DIVISION ORDERS - ELK EXPLORATION (HSR ATHERTON /i5-20 AND HSR BERNSTEIN 116-20) PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 15th day of March, A.D. , 1993. '•TIN , BOARD OF COUNTY COMMISSIONERS ATTEST: /69 EGG"✓ 7 WELD COUNTY, COLORADO Weld County Clerk to the Board EXCUSED /- // Constance /L. Harbert, (Chairman BY: /l�T, E_--Ci. "-C�-„ LX I�- A Of PI 124 Deputy C erk to the Bo rd W. H. ster, P`r/g-Tem�y f� APPROVED AS 0 FORM: i CBaxter- Zior-J/4-, orge f��..a€,. ' County Attorney Dale//SS K. Hall l arbara J. Kirkmeye C 930237 H�ct�z��sn OIL AND GAS DIVISION ORDER ELK EXPLORATION, INC. PROPERTY NO. 3807 Carson Evans, CO 80620 1303) 330-0614 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 Elk Exploration, Inc. ("Elk")or from us,the undersigned owner and all other parties executing this instrument hereby authorize Elk,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 Elk's property upon receipt thereof by the carrier designated by it or by any other purchaser to whom Elk may sell such oil. The term"oil" as used in this division order shall include all marketable liquid hydrocarbons gathered at the lease. Elk 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. Elk 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 Elk to another purchaser accepting delivery thereof at the same point at which it takes title, Elk agrees to pay for such oil based upon the volume computation made by such purchaser and at the price received by Elk 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 Elk from the sale thereof for all volumes as measured at the meter run(s) on the spacing unit described on the reverse side hereof in accordance with Elk'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 Elk or any purchaser,transporter, or gatherer designated by Elk 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"), Elk may hold without interest the portion of the proceeds subject to refund unless indemnity satisfactory to Elk has been furnished or until Elk's refund obligation has been finally determined. If any portion of the proceeds delivered from the sale of gas is paid over by Elk under any order, rule or regulation of the FERC or the provisions of the Acts, Elk is authorized to recover the amount of the refund applicable to the interest of each of the undersigned from future payments or, at Elk's election, it may invoice the undersigned therefor, plus the legal rate of interest Elk 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 Elk, according to the division of interest herein specified, less any taxes required by law to be deducted and paid by you applicable to the interest(s) set forth herein. However, if the amount due any owner is less than Twenty-Five and 00/100 ($25.00) Dollars per month, Elk, 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. In the event any dispute or question arises concerning the title to the interest of the undersigned in said Production or the proceeds thereof, Elk will he 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 Elk's satisfaction,or until indemnity satisfactory to Elk has been furnished,Elk 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 shall be immediately furnished Elk by the undersigned, stating the court in which the same is filed and the title of such suit or action. Elk 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. Elk 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 Elk 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, Elk 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 Elk 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 Elk 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. Warranties: Working Interest Owners and/or Operators,and each of them,by signature to this instrument,certify,guarantee and warrant for Elk'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. B 1374 REC 02325750 03/19/93 16 :05 $0 . 00 1/002 F 1495 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 930237 �i0C' The undersigned and each of them, represent, guarantee and warrant that they are the legal owners, in the pr$ or io ,rsetiout'below, of all the oil, gas and hydrocarbons produced from the wellls) described below. �' / ./A-1-::::" , , R ; `:,\-_.?: /7- ••_ • Well Namels): HSR Bernstein #6-20 Description of Property: S/2NW/4 Section 20 [Drilling end Spacing Unit] Township 3 North, Range 66 West, 6th P.M. Weld County, Colorado Formation(s): Codell & Niobrara No. of Acres: 80 Acres Credit To Division of Interest Type Board of County Commissioners Weld County .0625000 RI P. O. Box 758 Greeley, CO 80632 This Oil and Gas Division Order is executed this 15TH day of MARCH , 19 93 , and effective as of the date of first Production. F rt /ATTEST: 71iG� (�, //fJ tii)../ P.O. BOX 758 Witn� of Signature TO D .Name W.H. WEBSTER, CHAIRMAN r Street or Box No. //�/'99 p; x WELD COUNTY BOARD OF COMMISSIONERS BY: / (2,-,1-(0, i / y41e 84-6000813 GREELEY, CO 80612 Witness of Sin tura DEPU'�___Ck FSocial Security(or Tax ID) Number City, State. Zip 03/17/93 Witness of Signature Name Street or Box No. Witness of Signature Social Security(or Tax ID) Number City, State, Zip Witness of Signature Name Street or Box No. Witness of Signature Social Security (or Tax ID)Number City, State, Zip B 1374 REC 02325750 03/19/93 16 :05 $0 .00 2/002 F 1496 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 3 f 930?"3'7 1 J AR2325751 OIL AND GAS DIVISION ORDER ELK EXPLORATION, INC. PROPERTY NO. 3807 Carson Evans, CO 80620 (303) 330-0614 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 Elk Exploration, Inc. ("Elk")or from us, the undersigned owner and all other parties executing this instrument hereby authorize Elk,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 Elk's property upon receipt thereof by the carrier designated by it or by any other purchaser to whom Elk may sell such oil. The term"oil"as used in this division order shall include all marketable liquid hydrocarbons gathered at the lease. Elk 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. Elk 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 Elk to another purchaser accepting delivery thereof at the same point at which it takes title, Elk agrees to pay for such oil based upon the volume computation made by such purchaser and at the price received by Elk 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 Elk from the sale thereof for all volumes as measured at the meter run(s) on the spacing unit described on the reverse side hereof in accordance with Elk'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 Elk or any purchaser,transporter, or gatherer designated by Elk 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"), Elk may hold without interest the portion of the proceeds subject to refund unless indemnity satisfactory to Elk has been furnished or until Elk's refund obligation has been finally determined. If any portion of the proceeds delivered from the sale of gas is paid over by Elk under any order, rule or regulation of the FERC or the provisions of the Acts, Elk is authorized to recover the amount of the refund applicable to the interest of each of the undersigned from future payments or, at Elk's election, it may invoice the undersigned therefor, plus the legal rate of interest Elk 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 Elk, according to the division of interest herein specified, less any taxes required by law to be deducted and paid by you applicable to the interest(s) set forth herein. However, if the amount due any owner is less than Twenty-Five and 00/100 ($25.00) Dollars per month, Elk, 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. In the event any dispute or question arises concerning the title to the interest of the undersigned in said Production or the proceeds thereof, Elk 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 Elk's satisfaction, or until indemnity satisfactory to Elk has been furnished, Elk 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 shall be immediately furnished Elk by the undersigned, stating the court in which the same is filed and the title of such suit or action. Elk 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. Elk 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 Elk 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, Elk 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 Elk 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 Elk 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. Warranties: Working Interest Owners and/or Operators,and each of them,by signature to this instrument,certify,guarantee and warrant for Elk'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. B 1374 REC 02325751 03/19/93 16 :06 $0 .00 1/002 F 1497 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO LE me 3 7 The undersigned and each of them, represent, guarantee and warrant that they are the legal owners, in the p4oportioy ut below, of all the oil, gas and hydrocarbons produced from the wellls) described below. 44,, -tea , �;; C,/ Well Name(s): HSR Atherton 5-20 . Description of Property: S/2NW/4 Section 20 [Drilling and Spacing Unit] Township 3 North, Range 66 West, 6th P.M. Weld County, Colorado Formation(s): Codell & Niobrara �n No. of Acres: 80 Acres Credit To Division of Interest Type Board of County Commissioners Weld County .0625000 RI P. 0. Box 758 Greeley, CO 80632 This Oil and Gap Division Orrr+is executed this 15TH day of MARCH , 19 93 , and effective as of the date of first � �� ATTEST: �r+s � /p P.O. BOX 758 Witr�gso of Signatu G 0 BD Name W.H. W STER CHA_ RO'1ltMet or Box No. •��„ WELD COUNTY BOARD OF COMMISSIONERS BY: / 84-6000813 GREELEY, CO 80632 itness of ignat EPUTuKcocial Security(or Tax ID) Number City. State, Zip 03/17/93 Witness of Signature Name Street or Box No. Witness of Signature Social Security(or Tax ID)Number City, State, Zip Witness of Signature Name Street or Box No. Witness of Signature Social Security(or Tax ID) Number City, State, Zip B 1374 REC 02325751 03/19/93 16 :06 $0 . 00 2/002 F 1498 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO N ELK EXPLORATION, INC. 1801 Broadway 3807 Carson Avenue CORPORATE OFFICES Suite 1050 731 Sansome Street Denver,CO 80202 Evans, CO 80620 Fifth Floor (303)292-5560 (303) 330-0614 San Francisco,CA 94111 (telefax 303/292-5642) (telefax 303/330-0639) (415 433-5795 (telefax 415/433-5811) March 4, 1993 Re: HSR Bernstein #6-20, Atherton #5-20, Fitzpatrick #4-20, "Aid Fine #3-20 NW/4 Section 20, Township 3 North, Range 66 West, 6th P.M. , Weld County, Colorado Dear Interest Owner: Enclosed herewith, each in duplicate, are division orders covering your interest in the captioned wells. Please sign the originals of each of the division orders, having your signature witnessed by TWO witnesses, show your social security number or tax identification number in the space provided, and the address to which checks should be mailed. If you are able to get these division orders signed and returned to me by March 15th, we can place them in line for payment, and you should receive a check the first week of April for the monies now in suspense attributable to your interest. If you have any questions, please don't hesitate to call me at (303) 330-0614. We sincerely regret the delay in getting these division orders out to you, and we appreciate your patience. Sincerely yours, ELK EXPLORATION, INC. � 441./n ( L GCE' tz Jo Ann Dubler Land Consultant 930237 Hello