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AR2vl?vnD RESOLUTION
RE: APPROVE CRUDE OIL DIVISION ORDER TO FRONTIER OIL AND REFINING
COMPANY 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 Crude Oil Division Order to Frontier
Oil and Refining Company, 1700 Lincoln, Suite 2100, Denver, Colorado 80203, and
WHEREAS, said Division Order covers land more particularly described as follows:
Township 6 North, Range 66 West, 6th P.M.
Section 26: NE 1/4 SW 1/4
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 Crude Oil Division Order to Frontier Oil and Refining Company, 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.
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DIVISION ORDER - NE 1/4 SW 1/4, S26, T6N, R66W
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted by
the following vote on the 21st day of November, A.D., 1994.
BOARD OF COUNTY COMMISSIONERS
ga/ATTEST: WELD COUNTY COLORADO
Weld County CIePk a%'Ord Ix fFV u' ""t,/
W. H. Webster, Ch irman
BY: ; )4
Deputy CI to the Board Dale K. Hall, Pro-Te
APPROVED AS TO FORM:
eorge Baxter
ounty y Attornly Constance L. Harbert
EXCUSED
Barbara J. Kirkmeyer
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FRONTIER OIL AND REFINING COMPANY
AR24 ' V7g " CRUDE OIL DIVISION ORDER a
Date: November 10. 1994
Lease No: CO - 364
Contract No: 9402-012P
Operator: Francis Energv, Inc.
Prepared By: Camille Jacobs
TO: Frontier Oil and Refining Company
1700 Lincoln, Suite 2100 _ I � �109 �
/] �]
Denver, Colorado 80203 Apt 0 ✓C !/I
The undersigned, and each of them, guarantee and warrant that they are the legal owners in the proportions
set out below of all the oil, condensate and/or other hydrocarbons produced from the PAYNE NO. 2-26 described
as:
TOWNSHIP 6 NORTH. RANGE 66 WEST
Section 26: NE/4 SW/4 -
in 'WELD County, State of COLORADO, and commencing at 7 a.m. on the 1ST day of OCTOBER, 1994, and
until further written notice either from you or us, you are authorized to receive oil therefrom, giving credit as
directed below:
OWNER NO CREDIT TO DIVISION/I{QVD OF INTEREST
2415 Payne, Inc. . 18744230 RI
2118 N. 47th Avenue
Greeley, Colorado 80632
2313 Weld County Board of Commissioners .00168260 RI
1400 N. 17th. Avenue
Greeley, Colorado 80631
2416 Adam C. Buna .01029170 OR
c/o First Bank of Boulder
8500 Lockout Road
Boulder, Colorado 80302 - 3303
2417 Robert L. Childers .01029170 OR
P. O. Box 756
Greeley, Colorado 80632
2418 Nicholas D. Francis .01029170 OR
- . P. O. Box 2331
Greeley, Colorado '80632
2420 FEI- Payne Joint Venture .78000000 WI
c/o Francis Energy, Inc.
P. O. Box 2331
Greeley, Colorado 80632
INDEMNITY: THE UNDERSIGNED AGREES TO HOLD YOU HARMLESS FROM ALL LOSS , COST, EXPENSE OR DAMAGE YOU MAY INCUR BY REASON OF
YOUR MAKING PAYMENT AS HEREIN PROVIDED, AND TO DEFEND IN YOUR NAME ANY SUITS WHICH MAY BE BROUGHT AGAINST YOU
BY ANY PARTIES ASSERTING ANY INTEREST OR CLAIM TO THE OIL SOLD HEREUNDER OR ITS PROCEEDS , AND TO PAY ALL COURT
COSTS, ATTORNEY' S FEES AND INTEREST IN CONNECTION THEREWITH.
THE COVENANTS APPEARING ON THE REVERSE SIDE HEREOF ARE ALSO PART OF THIS DIVISION ORDER AND SHALL BE BINDING ON THE UNDERSIGNED,
THEIR SUCCESSORS, LEGAL REPRESENTATIVES, AND ASSIGNS :
NOTICE: The U .S. Internal Revenue Service requires that owners furnish their Social Security or Employer
Identification Number . Please insert this number in the space below the signature Line. Read the terms
on the back before signing below. If executing on behalf of a corporation, indicate your official capacity,
impress the corporate seal , and have your signature attested by the secretary of the corporation.
Signature of Two Signature of Hall Check To The
g Owner Following Address
Witnesses/Attest
(Please Print or Type)
ATTEST : L / �1�� ! L/A 97-p
/ PO Box 758
Clerk to the Board By: W. H . Webster , Chairman
'1 •. np /n� y� Title: Board of Commissioners Greeley , CO 80632
BY :C jy�k�(U IJ I Lt1l .Qon 84-6000819
(((U��� Social -600081 Security/Employer ID Number
(n/ /94)
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FIRST:The oil received and purchased hereunder shall become your property as soon as the same
is received into your custody or that of any carrier designated by you.
SECOND: The oil received and purchased hereunder shall be delivered F.O.B. to any carrier
designated by you which gathers and receives said oil, and you agree to pay for such oil to the respective owners
according to the division of interest above specified at the price posted for oil of the same grade and gravity in the
same producing field on the date said oil is received by you. If the oil should be sold by you to another purchaser
accepting delivery thereof at the lease tanks, settlement therefor shall be based upon the price received by you for
such oil and upon the volume computation made by such purchaser.
THIRD:Quality and quantity shall be determined in accordance with the conditions specified in
the price posting. You may refuse to receive any oil not considered merchantable by you.
FOURTH:Settlements and payments shall be made monthly for oil received and purchased during
the preceding month, by check mailed to the respective parties at the address above given, for the amount of such
purchase price due said parties respectively, less any taxes required by law to be deducted and paid by you as
purchaser. If at any settlement date the amount payable to any party hereunder shall be less than twenty-five dollars
($25.00) per month, settlement may be made annually, without interest.
FIFTH: Satisfactory abstracts or other evidence of title will be furnished you at any time on
demand. In the event of failure to furnish such evidence of title, or in the event of any dispute or question at any
time concerning the title to said land and/or the oil produced therefrom, you are authorized to withhold the proceeds
of all oil received and run, without interest, until such dispute, defect or question of title is corrected or removed
to your satisfaction, or until indemnity satisfactory to you has been furnished; and in the event any action or suit
is filed in any court affecting the title to the land above described or the oil produced therefrom, to which any of
the undersigned is a party, written notice of the filing of such suit or action shall be immediately furnished you by
the undersigned, stating the court in which the same is filed and the title of such suit or action. You will not be
responsible for any change of ownership in the absence of actual notice and satisfactory proof thereof. You are
hereby relieved of responsibility for determining if and when any of the interests hereinabove set forth shall revert
to or be owned by others as a result of the completion or discharge of any payment or the termination of any estate
or disability.
SIXTH: This Division Order shall become valid and binding on each and every owner above
named as soon as signed by him or her regardless of whether or not any of the other above named owners have so
signed; and in consideration of the purchase of oil hereunder, consent is hereby given to you and/or any pipeline
company which you may cause to connect with the wells and/or tanks on said land, to disconnect and remove such
pipelines, in case of termination by either you or us of purchase under this Division Order. Any change in interest
or ownership shall be effective as to Purchaser on the first day of a calendar month, following date of receipt.
SEVENTH: Working Interest Owners and/or Operators who sign this Division Order, and each
of them, guarantee and warrant, for your benefit and that of any pipeline or other carrier designated by you to run
or transport said oil, that all oil tendered hereunder has been or will be produced in accordance with applicable laws
and official rules and regulations. Royalty Owners who sign this Division Order recognize as valid and subsisting
in full force and effect all oil and gas leases of record held by the within named Working Interest Owners, which
cover or purport to cover Royalty Owner's interest in the above described lands as well as any unit and the same are
hereby ratified, adopted and confirmed. Insofar as necessary to effect the purposes of this provision, this instrument
shall be construed as containing words of present grant.
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