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AR2297616
RESOLUTION
RE: APPROVE OIL AND GAS DIVISION ORDER TO MARTIN EXPLORATION MANAGEMENT
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 an Oil and Gas Division Order
to Martin Exploration Management Company, P.O. Box 298, Blue Island, IL 60406,
and
WHEREAS, said Division Order covers land more particularly described as
follows:
Township 1 North, Range 67 West, 6th P.M.
Section 6: Wz
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 Martin Exploration
Management Company, P.O. Box 298, Blue Island, IL 60406, 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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F 0461 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 920661
I r.[ i 1 a - 1 e- /L 44-itii i✓ Cr'
DIVISION ORDER - MARTIN EXPLORATION MANAGMENT COMPANY
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 22nd day of July, A.D. , 1992.
/l ✓! a 14 BOARD OF COUNTY COMMISSIONERS
ATTEST: WELD COUNTY, COLORADO
Weld County Clerk to the Board
George Ken dy, C airman
BY: '` EXCUSED
De k&,to the Bo Constance L. Harbert, Pro-Tem
t "
APPROVED. ' FORM: t
enited.",
C. W. Kirby
2 EXCUSED
County Attorney Gordon E. Lacy
S-41fra
W. H. Webster
920661
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F 0462 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
OIL AND GAS DIVISION ORDER
DATE: May 18, 1992
Ns M/AR�TIN LEASE NO.: 0007 , 0449
LEASE NAME: Glens #2 $ Glens #13-6
EFFECTIVE DATE: December 6, 1990
TO: MARTIN EXPLORATION MANAGEMENT COMPANY
P.O. BOX 298
BLUE ISLAND, ILLINOIS 60406
Each of the undersigned, individually, for themselves, their heirs, successors, and assigns,
hereby represents, warrants, and guarantees to Martin Exploration Management Company
(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
foltowinOco,adescribed area or well located in the County of Weld , State of
and more particularly described as follows:
Township 1 North, Range 67 West, 6th P.M.
Section 6: W/2
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 DECIMAL 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 applicable rules, regulations, or standards generally
accepted in the industry. In the event that the Company is the purchaser of such oil, settlements
therefor shall be based upon the Company's posted price for similar oil in 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 25th 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 ($25)
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-,Elie 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.
6. The undersigned shall notify the Company of any change in the ownership of their
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 receive a certified copy of the
instrument changing such interest and 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. '
o �o` F 0463 MARYOANN7FEUERSTEIN/CLERKS&3 RECORDER WELD CO, CO 9s O S1
7. The undersigned ha'-41y represent, grant to, and agree the Company that the interest
' of the undersigned and of t. 2ompany in and to the oil and gas w, has or which may be produced
from the premises is in full force and effect and that all payme„cs 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 making any payments for settlements so long as the
same are made in accordance with the terms of the division of interest schedule set forth below.
8. 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 gas 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 instrument may be executed in counterparts with each counterpart considered to be a
binding agreement of the signatories thereto; and all 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 acknowledgment and consent to
the foregoing terms, warranties, and agreements.
W NESS SIGN LOW: OWNER SIGN BELOW: SS NO. OR TAX ID NO.
ATTEST:
84-6000813
D Cf ;0 ARD County of Weld, a Political Subdivision
BY: of the State of Colorado
•
By: x , 07/27/92
Name: GEORGE KEN ^DY
Title: CHAIRMAN, WELD COUNTY BOARD OF MMISSIONERS
IMPQRTANT: TO AVOID DELAY IN PAYMENT, YOUR CURRENT ADDRESS AND YOUR SOCIAL SECURITY NUMBER OR TAX
ACCOUNT NUMBER MUST BE SHOWN
STATE OF — )
SS
COUNTY OF )
The foregoing instrument was acknowledged before me, a Notary Public, this day of
, 19 , by --
Witness my hand and official seal.
My Commission Expires: ---
Notary Public
Address of Notary
STATE OF__ )
SS
COUNTY OF )
The foregoing instrument was acknowledged before me, a Notary Public, this day of
, 19 , by •
Witness my hand and official seal. — ----
My Commission Expires: - ---- -- - -- —
Notary Public
Address of Notary
CORPORATION ACKNOWLEDGMENT
STATE OF )
SS
COUNTY OF )
BEFORE ME, the undersigned, a Notary Public in and for said county and state, on this day
personally appeared , known to me to be the person and
officer whose name is subscribed to the foregoing instrument, and acknowledged to me that the same
was the act of the said , a corporation, and
that he executed the same as the act of such corporation for the purposes and consideration therein
expressed and in the capacity therein stated.
GIVEN under my hand and seal of office this the day of , A.D.,
19 ._ -----
My Commission Expires: Notary Public .
120489 Address of Notary
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t;ffi '. , F 0464 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 320561
8/10
EXHIBIT " A "
GLENS *2 & GLENS *13-6
TOWNSHIP 1 NORTH, RANGE 67 WEST
SECTION 6: W/2
DIVISION OF
LOT * BLOCK CREDIT TO ADDRESS INTEREST TYPE
Tract IV
4,5 1 County of Weld, a P. 0. Box 758 0.0063023 RI
3 - 8 2 Political Subdivision Greeley, Colorado 80632
6 - 8 3 of the State of Colorado
6,8 8
1-8,10-12 9
1-3,7,8,10-12 16
5-8,10 17
15 - 18 19
5 - 15 20
1-3, 7-18 28
2,3,5,6,9-18 29
1-4, 10-14 30
1 - 12 31
1, 4 - 8, 10 32
1-3, 6,10-12 33
1,2,3 28 Mabel S. Green 1060 South Steel Street 0.0012611 RI
2,3,5,6,9-18 29 Denver, Colorado 80209
1-4, 5, 10-14 30
7 - 12 31
1, 4 - 8,9,10 32
5, 6,10-12 33
1,2,3 28 Stuart A. Smith 804 Euclid Avenue 0.0012611 RI
2,3,5,6,9-18 29 Boulder, Colorado 80302
1-4, 5, 10-14 30
7 - 12 31
1, 4 - 8,9,10 32
5, 6,10-12 33
NW/4 St. 's etc. Town of Dacono, a P. 0. Box 186 0.0146583 RI
Municipal Corporation Dacono, Colorado 80514
1 - 3 19 now in Carbon Valley
Embers, Inc.
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- [ u
MART71111
T MARTIN EXPLORATION MANAGEMENT COMPANY
July 14, 1992 cr
I\ JUL 1 7 1992
'VELD COUNTY
ATTORNEY'S OFFICE
Mr. Bruce T. Barker
Assistant Weld County Attorney
P. O. Box 1948
Greeley, Colorado 80632
RE: Weld County
Glens #2 & Glens #13-6
W/2 of Sec. 6, T 1N, R 67W
Weld County, Colorado
Dear Mr. Barker,
Pursuant to your letter dated June 2, 1992, enclosed please find
a portion of the Division Order Title Opinion for the Glens #13-6
well . Please note that Weld County's interest is based on 15 . 28926
net mineral acres out of 303 . 25 unit acres, at a 12 . 5% royalty
interest .
From what I have been able to piece together from our files, on
December 23, 1977 Martin received a Division Order Title Opinion on
the Dacono #1, #2, #3, #4 unit covering the NW/4 of Section 6,
Township 1 North, Range 67 West (a copy of a portion this opinion has
been enclosed) . This opinion determined that some of the individual
lot owners own the minerals underlying their lots, thereby reducing
Weld County' s mineral acreage to 15 .28296 . A copy of the Dacono #1,
#2, #3, #4 Division Order signed by Weld County in January, 1978 has
been enclosed for your review.
Since Weld County's interest in the W/2 unit lies within the
NW/4, the December 23, 1977 title opinion also served to update the
title for the Glens #2 unit located in the W/2 of Section 6, at which
time Weld County's interest was reduced to .0063023, and the
individual lot owners where added to the unit . In other words, Weld
County has been receiving royalties at the revised decimal interest
since the beginning of 1978 .
4501 W. 127th ST., ALSIP, IL. 60658 • P.O. BOX 298, BLUE ISLAND, IL. 60406 • 708-385-6500
9220661
Mr. Bruce T. Barker
July 14, 1992
page 2
If I can be of further assistance, please do not hesitate to
contact me at the phone number or address listed below.
Very truly yours,
Martin Exploration Management Company
Rebecca J.' orrane
Land Department
\rm
Enclosures
rpm
47 OFFICE OF COUNTY ATTORNEY
441 PHONE(303)3564000 EXT.4391
P.O. BOX 1948
GREELEY,COLORADO 80632
WI C.
COLORADO
June 2, 1992
Martin Exploration Management Company
P . O. 298
Blue Island, IL 60406
RE: Oil and Gas Division Order for Glens #2 and Glens #13-6
Wells in Weld County, Colorado
Dear Sirs :
The Board of County Commissioners of Weld County, Colorado, has
received the Oil and Gas Division Order for the Glens #2 and Glens
#13-6 wells in Weld County, Colorado. This corresponds to Lease
No. 0007 and No. 0449 . Enclosed is a copy of this Division Order.
The Division Order states that the property in question is located
in the West half of Section 6 , Township 1 North, Range 67 West of
the 6th P.M. , Weld County, Colorado. Specifically, Tract IV is the
property in question.
I am uncertain as to how your company calculated the royalty
interest for Weld County at . 0063023 . Weld County' s records show
a division of interest which is 1 . 1992685% . Those records are from
February, 1975, but do not appear to have been updated since that
time.
Please send me information as to how your company calculated the
royalty interest. You may send this information to: Bruce T.
Barker, Assistant Weld County Attorney, P.O. Box 1948, Greeley, CO
80632 .
Please be advised that I have recommended that the Board of County
Commissioners refrain from signing the oil and gas Division Order
until your company responds to my inquiry.
920661
Please call me if you need any further information from this
office . I may be reached at (303) 356-4000, Ext. 4391 .
Yours truly,
Bruce T. Barker
Assistant County
BTB:bp
pc: Weld County Clerk to the Board
90£51
WELD cou :I I
- u
MARTIN 58
T MARTIN EXPLORATI8N 'MANAGEMENT COMPANY
CLERK
TO THE BOti may 19, 1992
RE: Glens #2 and Glens #13-6
Dear Royalty Owner:
We have drilled a second well within the Glens #2 Unit and have signed agreements
to sell the gas and oil from the Glens #13-6 well. Before funds can be released on the
second well, the following is needed for the enclosed Division Orders:
1. Your signature on the reverse side of the Division Order.
2. Your signature must be witnessed.
3. The Division Order must be notarized, i.e. , signed in the presence of a notary
public.
4. Your Social Security number or Tax I.D. number must be listed next to your name
on the Division Order. FUNDS WILL NOT BE RELEASED WITHOUT THIS NUMBER.
5. If your mailing address shown on the Division Order is incorrect, please
indicate your proper mailing address.
Upon completion of the above items, please return one copy of the executed Division
Orders for the well to MARTIN EXPLORATION MANAGEMENT COMPANY, ATTN: LAND DEPARTMENT,
P. 0. BOX 298, BLUE ISLAND, ILLINOIS 60406. The extra copy may be retained for your
files.
Upon receipt of the executed Division Order we will disperse funds back to date of
first production for the Glens #13-6 well. Please be advised that royalty checks are
written on approximately the 22nd of the month and include payment for Division Orders
received and processed by the 15th of the month. However, a royalty check will be
issued only when the account has reached the $25.00 minimum, or in December, whichever
comes first.
Please note that this Division Order will also release all funds held in suspense
for those owners who are new to the unit or who did not return the necessary documents
when the Glens #2 first started producing.
Should you have any questions concerning the division order, please contact Rebecca
Morrane at the address or phone number listed below. Questions concerning royalty
checks should be directed to our Oil & Gas Accounting Department, at the same address
and phone number.
*** PLEASE DO NOT DETACH EXHIBIT "A" FROM THE DIVISION ORDER ***
4501 W. 127th ST., ALSIP, IL. 60658 • P.O. BOX 298, BLUE ISLAND, IL. 60406 • 708-385-6500
920561,
CHARLES A. REDPATH, JR. 1/c
ATTORNEY AT LAW
PO, BOX 616
ENGLEWOOD, COLORADO 80151
(303) 761-0238
May 2, 1991
DIVISION ORDER TITLE OPINION
Glens No. 13-6 Well
Weld County, Colorado
MARTIN EXPLORATION MANAGEMENT COMPANY
Attn: Stephen A. McLaughlin
2300 Central Avenue - Suite A
Boulder, Colorado 80301
Gentlemen:
At the request of Stephen A. McLaughlin, but for the account of Martin
Exploration Management Company (MAC) and its gas and gas associated hydro-
carbons purchaser, I have examined the below described instruments, docwnents
and other materials and, basing my Opinion thereon for Division Order purposes,
I find title to the lands set forth below to be as follows:
DESCRIPTION OF LANDS
Township 1 North, Range 67 West, 6th P.M. , Weld County, Colorado
Section 6: W1
containing 303.25 acres, more or less.
INSTRUMENTS, DOCUMENTS, RECORDS AND MATERIALS EXAMINED
1. The undersigned's Drilling Title Opinion of August 29, 1990,
covering the fractional W1/2 Sec. 6-1N-67W, for the interval fran beginning to
August 20, 1990, based upon prior Opinions and personal records examination.
2. MEMO statement (possibly from Transamerica Title Insurance Company
records search) stating that no documents have been recorded against the W1
Sec. 6 for the interval from August 19, 1990 to December 6, 1990.
TITLE (As of December 6, 1990 or date of first production from the
captioned well, whichever first occurred.)
LEASEHOLD ESTATES (Limited to the pooled 320 acre "J" sand gas unit)
LANDOWNERS ROYALTY INTEREST Tract Unit
Tract I - Parcl cane at NW corner
Sec. 6, th. E. along N. line 287.5' ,
th. S. along W. line of Railroad Ave.
to S. line of NWa Sec. 6, to a point
325' E. of SW corner of NWo Sec. 6,
th. W. 325' to SWa of NWq Sec. 6,
th. N. along W. line to p-o-b,
18.77 ac. ,m/1 (Unit Factor 6.18961%)
Champlin Petroleum Company 18.75% 1.16055%
92A0661
Tract IV - That portion of 'Ibwn of Dacono 543300
in NWa Sec. 6-1N-67W, desc. as: Lots 4-5,
BL. 1, Lots 3-8, Bl. 2, Lots 6-8, B1.3,
Lots 6 & 8, Bl. 8, Lots 1-8, 10-12 B1.9,
Lots 1-3, 7,8, 10-12 B1.16, Lots 5-8, 10
B1. 17, Lots 15-18 B1. 19, Lots 5-15 Bl.
20, Lots 1-3, 7-18 Bl. 28, Lots 1-4, 10-14
Bl. 30, Lots 1-12 Bl. 31, Lots 1, 4-8, 10
Bl. 32 & lots 1-3, 6, 10-12 81. 33, Lots 2-3,
5-6,9-18Y Bl. 29 15.28926 ac. (UF 5.04180%)
May 2, 1991 -5- Glens 13-6 well
LANDOWNERS ROYALTY INTEREST (Cont.)
Tract IV (Cont) Tract Unit
County of Weld, a political Sub-
division of State of Colorado 12.5% .63022%
920%1
CHARLES A. REDPATH. JR.
ATTORNEY AT LAW
ISIS FIRST NATIONAL SANK 'BUILDING
DENVER.COLORADO 8O293
TELELNONEI 520-5413
December 23, 1977
DIVISION ORDER TITLE OPINION
12,ac:ono 1-4 Wells.
NWI Section 6-1N-67W
Weld County, Colorado
MARTIN C IL SERVICE, INC. ,
Attn : Mr. William V. Roberts,
Vice-President Finance,
P. O. Box 298,
Blue Island, IL 60403
Gentlemen :
At the request of both Thomas R. Barr and William. V. Roberts,
but for the account of Martin Oil Service, Inc. and the oil and oil
associated hydrocarbons purchasers, I have examined the below des-
cribed instruments, documents and other materials and, basing my
Opinion thereon for Division Order purposes, I find title to the
lands set forth below to be as follows :
DESCRIPTION CF LANDS
Township 1 North, Range 67 West, 6th P. M. , Weld County, Colorado
Section 6 : NWI
For purposes hereof deemed to contain 151. 17 acres,
whether actually more or less
INSTRUMENTS, DOCUMENTS, RECORDS AND MATERIALS EXAMINED
1. Attorney Raymond J. Gengler's Division Order Opinion of
July 7, 1975 covering the "J" Sand formation underlying the Wi of
Section 6-1N-67W, along with copies of Mr. Gengler' s later Opinions
of October 30, 1975, October 31, 1975, December 26, 1975, his letter
to Mr. Parlier dated April 13, 1976, his letter of September 28, 1976
to the First National Bang. of Denver, all concerning basic title
problems, with the first Opinion being based (as per Mr. Gengler)
upon various title material, a title policy, certificates of title,
title Tiem.oranda and reports of examination of the records of the
Weld County Clerk and Recorder's office as of June 25, 1975 at 8 :00
A.M.
2. The undersigned 's August 2, 1977 examination of the records
of the Weld County Clerk and Recorder's office as to basic title
chain from patent to acquisition of the above property in 1906 by
The Daconc Townsite Company and the townsite's subsequent conveyance
of Tract I lands to the Union Pacific Railroad Company, and its con-
veyance of vacated townsite lands (Tract II) to others, based upon
9 fig gi
RE TRACT IV: That _.... ,, ._
portion of the Town of Dacono, Colorado, situ-
ated in the NWI of Section 6-1N-67W, as follows :
Lots 4 and 5 of Block 1, Lots 3 through 8 of Block 2,
•�'�1C�LIa,�'�F
Decen'ber 23, 197 i - 11 - Dacono 1-4
Lots 5 through 8 of Block 3, Lots a and 8 of
Block 8, Lots 1 through 8 and 10 through 12 of
Block 9, Lots 1 through 3, 7, 8, 10 through 12 of
Block 16, Lots. 4 through 8 and 10 of Block 17, •
Lots 15 through 1`' of Block 19, Lots 5 through 15
of Block 20, Lots 1 through 3 and 7 through 18 of
Bloch 28, Lots 2, 3, 5, 6, 9 through 18 of Block
29, Lots 1 through 4 and 10 through 14 of Block 30,
Lots 1 through 12 of Block 31, Lots 1, 4 through 8
and 10 of Block 32 and Lots 1 through 3, 5 and 10
through 12 of Block 33, containing 15. 28926 acres,
(Unit Factor 10. 11395%)
Landowners Royalty Interest Unit Tract
Interest Interest
County of Weld, a political subdivi-
sion of the State of Colorado* 12. 50000% 1. 26425%
920661
OIL AND GAS DIVISION ORDER
MARTIN OIL SERVICE, INC.
Order No . 0053
Unit Dacono #1 , 2, 3,4
Effective Date August 2 , 1977
TO: Martin Oil Service, Inc .
4501 West 127th Street
Alsip, Illinois 60658
Each of the undersigned, for himself, his heirs, successors and
assigns , hereby represents, warrants and guarantees to Martin Oil Service,
Inc. (hereinafter referred to as the Company) , that he is the legal owner
of the interest , as set opposite his . name below, in the proceeds from all
oil and natural gas which may be produced from or allocated to the pre-
mises, located in the County of Weld, State of Colorado, and more par-
ticularly described as follows:
Township 1 North. Range 67 West , 6th P.M. Weld County, Colorado :
5/8 icf, 17
Section 6 : Northwest Quarter (NW/4) , containing ,I.51C11 acres more or less
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 hereafter produced from the premises , and, subject to the
other terms and conditions hereof, to give credit therefor to the under-
signed in accordance with the division of interest schedule as follows:
SOCIAL SECURITY OR DIVISION
TAX IDENTIFICATION OF
CREDIT TO NUMBER ADDRESS INTEREST %
County of Weld, a Weld County 1 . 26425% R. I .
political sub- P.O. BOX 758
division of the Greeley, Colorado
State of Colorado 80631
r �P�wsa
S �t
y. 4
tff - 11
010378-PAN
- 1
Additionally, the undersigned agree, grant and rep-
resent to and with the Company as follows :
1 . Oil (including crude oil and condensate produced on the
premises) shall become the property of the purchaser thereof upon
its delivery to the purchaser or to the purchaser' s agent or
carrier, and settlements therefor shall be based upon the net
price received therefor from the Purchaser. Oil shall be graded
and measured in accordance with applicable rules and regulations
or standards generally accepted in the industry. In the event
that the Company is the purchaser of such oil, settlements therefor
shall be based upon the Company' s posted price for similar oil in
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 there-
of in the field where produced. If the oil is purchased by the
Company and resold thereby 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.
2 . Gas produced from the premises , including casinghead gas if
marketed with gas well gas, shall be delivered to and become the
property of the pipeline company to whom the gas is agreed to be
sold by the Company. Initially, the gas shall be delivered to Pan-
handle Eastern Pipe Line Company pursuant to a Gas Purchase Agree-
ment dated March 13, 1975, including any modifications and amendments
thereto, and for so long as that Agreement shall remain in force
and effect with respect to the premises . Settlements to the under-
signed shall be based upon the terms , conditions and prices for
said gas as agreed with the pipeline company, less any costs of
treatment, compression, transmission or dehydration.
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 under-
signed 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 20th day of each month for oil and/or gas taken or sold
during the second preceding calendar month. The Company is
authorized to withhold from any settlement due for gas sold and
delivered, an amount, not to exceed 10% thereof, to provide for the
contingency that a regulatory authority may hereafter require a
reduction in the price of gas sold and delivered from the premises ,
and require further that the producers thereof, including the
Company and the undersigned, reimburse the purchaser of the gas for
amounts deemed to be excessive in the price of the gas theretofore
sold and delivered. Upon such contingency being removed, all
amounts so withheld shall be paid to the person from whom withheld.
In the event that the Company does withhold such amounts for such
periods as it deems reasonable, the amounts so withheld shall be
deposited at interest for the benefit of the undersigned in a
bank or financial institution of the Company's s Aeetion" end the 1 t >
undersigned`, upon payment of .an amount so wit
any interest •actually paid one tar amount s 'e '
' 40117,;'r
Company shall not be responsibl for. the amo � 0 E7 .
> � h
earned thereon if` the monies are deposited with tbart " � '
or similar institution.
" \e4444447
508751 .o
� r�we
- 2 -
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.
6. The undersigned shall notify the Company of any change in the owner-
ship of their 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 receive a certified copy of the instrument changing such interest
and 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 interests of the undersigned and of the Company in and to
the oil and gas 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 under-
signed 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
making any payments for settlements so long as the same are made in accord-
ance with the terms of the division of interest schedule set forth above.
8. In the event that the premises described above, or any part thereof,
is included in one or more units now or hereafter formed by order of any
appropriate governmental authority, by agreement, or otherwise, the under-
signed and the Company recognize and agree that settlement for oil and gas
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 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
instrument may be executed in counterparts and all counterparts, if executed,
shall be considered to be one instrument.
WHEREFORE, the undersigned have executed this Division Order
in acknowledgement and consent to the aforegoing terms, warranties and
agreements.
_^
UNDERSIGNED
'Fier tCr.°%in
47
/V) 4.40,tel fi
County of Weld a political subdivision
of the State of Colorado Jr �
Tax Identification ,Number
o ' .
920661
WITNESSES UNDERSIGNED
Jam.
•
STATE OF COLORADO )
) SS
COUNTY OF WELD )
The foregoing instrument was acknowledged before me, a Notary
Public, this 1st day of February , 19 78 , by Leonard L.
Roe, Victor L. Jacnhnrci . Norman rarlqnn, ,Tuna R Rtainmart and
Ed Dunbar.
WITNESS my hand and official seal.
Notary Public
My Commission Expires:
June 3, 1979
508'768
920861 1, �
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