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RESOLUTION
RE: APPROVE GAS DIVISION ORDER WITH ASSOCIATED NATURAL GAS, INC. , AND
AUTHORIZE CHAIRMAN TO SIGN
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WHEREAS, the Board of County Commissioners of Weld County, Colorado,
~ pursuant to Colorado statute and the Weld County Home Rule Charter, is vested
a with the authority of administering the affairs of Weld County, Colorado, and
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o• WWHEREAS, Weld County, Colorado, has received a Gas Division Order with
J)411 Associated Natural Gas, Inc. , P.O. Box 5493, Denver, Colorado 80217, and
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WHEREAS, said Division Order covers land more particularly described as
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follows:
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o x Township 5 North, Range 66 West, 6th P.M.
WSection 33: NE'-y-, SW; as to all formations
Ubetween the surface of the earth to the top
of the Niobrara Formation
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H Weld County, Colorado
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W WHEREAS, Weld County is entitled to a one-eighth royalty interest on
VD W production, and
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N Z WHEREAS, in order to receive said royalty interest, Weld County must
o execute said Division Order, a copy of which is attached hereto and incorporated
w herein by reference, and
c r4 WHEREAS, said Division Order has been reviewed by a member of the Weld
r2 c County Attorney's staff and found to be in order, and
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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 Gas Division Order with Associated Natural Gas, Inc. ,
P.O. Box 5493, Denver, Colorado 80217, 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.
910479
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RE: DIVISION ORDER - ASSOCIATED NATURAL GAS, INC.
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� The above and foregoing Resolution was, on motion duly made and seconded,
N O adopted by the following vote on the 3rd day of June, A.D. , 1991.
A _
BOARD OF COUNTY COMMISSIONERS
0 3 ATTEST:� WELD COUNT LORADO
n W Weld C o-gitt .,htot*. Board
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M Dep ... to the Board Geor e Kennedy, Pro-Tem
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o � APPROVED AS TO FORM:
W Constance
L. Harber
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\ W C my Attorney C. W. Kirby
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W. H. Webster 1/4/
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910479
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GAS DIVISION ORDER
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TO: ASSOCIATED NATURAL GAS, INC. •
- P. O. Box 5493
rn o Denver, Colorado 80217
c Attn: Division Order Department Lease No. 2127
"1U Date April 16, 1991
CZ Plant
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O 3 The undersigned, and each of us, certify and guarantee that we are the legal owners of andfiereby warrant the title to our respective interests in
an.W the proceeds derived from the sale of Gas produced and saved from the pomer lfl lease c'unit located
a in the County or Parish of Weld , State of Colorado
p more particularly described as follows:
C)
TOWNSHIP 5 NORTH - RANGE 66 WEST, 6th P.M.
M a Section 33: NE/4SW/4 as to all formations
o; ce between the surface of the earth to the top
o x of the Niobrara Formation
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CO C.) OWNER NO. CREDIT TO DIVISION OF INTEREST DECIMAL
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w SEE ATTACHED EXHIBIT "A" FOR OWNERSHIP LISTING
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>4 Effective B AM Date of First Production , and until further notice, you are hereby authorized to take or retain possession
U of all Gas from said property(ies)on and after the effective day and to give credit as set forth above for all proceeds derived from the sale of Gas from
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a said property(ies) subject to the conditions, convenants and directions set out below:
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r+1 CO FIRST: It is understood that the Ga roduced from the above-described proper ies)is being sold-under that cytain Puhase and
'-1 0 Processing Agreement dated Jaanuary is.194 . between ! ranci s trier yrc
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@ W as "Seller" and Associated Natural Gas, Inc. as "Buyer", and that all terms and covenants contained therein, and in any amendments,
extensions or renewals thereof shall govern and be bindina upon the parties hereto in all respects which shall include.but not be restricted
to,the price to be paid for said Gas and the time when such payments are to be made.As used in this Division Order,the term"Gas"shall
be deemed to include casinghead gas, gasoline and all other products which Associated Natural Gas, Inc. receives and/or recovers by
processing from Gas produced from wells on said propertygesl.
All covenants appearing on the reverse side hereof are incorporated herein by reference and the undersigned agree that each shall be deemed and
considered an essential part of this division order in like manner and with the same effect as if printed above our signatures.
The undersigned expressly waive any claim against you for any and all amounts which may be due us from others for production prior to the effective
date hereof.
Owners Sign Below Taxpayer Identification or
Signatures of Witnesses (Enter
Mailing Address) Social Security Number
ATTEST: C 84-6000813
U ARD CHAI , W D NTY COMMISSIONERS
BY• Address: P BOX 758
D P TY CLE T BOARD
6/3/91 GREELEY, CO 80632
Address:
Address:
91.04'79
WHITE-Return toANGI / YELLOW-For your records / PINK-ANGIfileepRIGINAL
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SECOND: Payments are to be made monthly by checks of Associated Natural Gas, Inc.to be delivered or mailed to the parties thereto
entitled at the addresses above given.provided that it the amount due any owner is less than Twenty-Five and 00/100($25.00)Dollars per
month,Associated Natural Gas, Inc.,at its option,may defer the making of such payment until such time as the aggregate amount due
exceeds said sum.The undersigned authorize Associated Natural Gas. Inc.to withhold from the proceeds of any and all Gas referred to
herein the amount of any fax placed thereon, or on the production thereof. including but not limited to any severance, production or
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occupation tax,by any governmental authority,local,state and/or federal,and to pay the same in our behalf with the proceeds so withheld.
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UTHIRD: In the event of any adverse claim of title or in the event title shall not be satisfactory to Associated Natural Gas. Inc.at any time
during the term of this Division Order,each of the undersigned agrees to furnish complete abstracts of title and other evidence of title
A satisfactory to Associated Natural Gas, Inc.and authorizes Associated Natural Gas. Inc to withhold payment,without obligation to pay
O 4.1 interest on the amount so withheld,until satisfactory indemnity shall be furnished to Associated Natural Gas,Inc against such adverse
O 3 claims or any such defects in title,or until title shall be made satisfactory to Associated Natural Gas,Inc..Each undersigned party,as to the
o a interest of such party hereunder.respectively agrees,in the event suit is filed in any court affecting title to said Gas.either before or after
h W severance,to indemnify and save harmless Associated Natural Gas. Inc.against any and all liability for loss.cost.damage,and expense
C] which Associated Natural Gas.Inc.may suffer or incur on account of receiving and paying said party the proceeds derived from the sale of
0 said Gas Where Associated Natural Gas.Inc.,pursuant to the provisions hereof,withholds or an
payment, Y part thereof,each undersigned
U party from whom payment is withheld severally agrees to indemnify and hold Associated Natural Gas,Inc.harmless of and from all liability
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for any tax.together with all interest and penalties incident thereto, imposed or assessed against,or paid by it on account of the sum or
r} sums so withheld from payment to said party,and deduct all such taxes,interest and penalties so paid it from any sums owing by it to said
" `.4 party.
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r ►� FOURTH:The undersigned severally agree to notify Associated Natural Gas,Inc.of any change of ownership,and no transfer of interest
U shall be binding upon Associated Natural Gas.Inc.until transfer order and the recorded instrument evidencing such transfer,or a certified
O Z copy thereof.shall be furnished to Associated Natural Gas.Inc..Transfer of interest shall be made effective 8 AM on the first day of the
H calendar month in which proper notice is received by Associated Natural Gas.Inc..Associated Natural Gas.Inc.is hereby relieved of any
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so Err responsibility for determining if and when any of the interests hereinabove set forth shall or should revert to or be owned by other parties
O r13 as a result of the completion of discharge of money or other payments from said interests.and the signers hereof whose interests are
a' affected by such money or other payments if any. agree to give Associated Natural Gas. Inc. notice in writing by rearstered letter
r addressed to Associated Natural Gas. Inc., P.O. Box 5493. Denver, Colorer')80217. Attn- Division Order Department. when any such
� Ss, money or other payments have been completed or discharged,or when any division of interest other than that set forth above shall.for any
(y reason. become effective and to furnish transfer order accordingly, and that in the event such notice shall not be received,Associated
csr 2 Natural Gas. Inc.shall be held harmless in the event of,and is hereby released from any and all damage or loss which might arise out of,
(NI y any overpayment.
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U � FIFTH: 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 or the provisions of the Natura!Gas Act or Natural Gas Policy Act of 1978,Associated Natural Gas, Inc.
o may hoes wrtriout interest the portion of the proceeds subject to refund unless indemnity satisfactory to Associated Natural Gas, Inc. nas
rr co been furnished or until Associated Natural Gas.Inc•s refund obligation has been finally determined If any portion of the proceeds derived
�-+ o from the sale of Gas is paid over by Associated Natura/Gas. Inc. under any order, rule or regulation of the Federal Energy Regulatory
w Commissions or the provisions of the Natural Gas Act or Natural Gas Policy Act of 1978. Associated Natural Gas. Inc. is authonzed to
recover lne amount of the refund applicable to the interest of each of the undersigned from future payments.or at Associated Natural Gas,
Inc.s e.eCtion.It may invoice the undersigned therefore.plus the regal rate of interest Associated Natural Gas.Inc.is or may be required to
pay in connection wren the undersigned's portion of the refund
SIXTH: This Division Order shall become val.d and binding upon each and every owner above names upon execution hereof by such
owner regardless of whether or not any of the other above-named owners have so signed. If the provisions of tnrs Division Order are in
conflict with the provisions of any oil and gas lease covering the above described property ties).the provisions of this Division Order shall
prevail.Eacn undersigned owner ratifies and confirms nrs oil and gas lease as being in full force and effect as of the date hereof •
91.0479
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EXHIBIT "A"
2127
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Division
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U Owner No. Credit To Of Interest Decimal
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D W• 7975 Louis E. Spomer 9. 36405% of 10 . 75% RI .0175576
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8c4 1129 eld County , Colorado 90.63595% of 12 . 5% RI . 1132949
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0 8687 Steven W. Shefte 1% ORI .0100000
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M W 42059 Harry A. Ells , Jr. 9.3 ,405% of 1 . 25% ORI . 0011705
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.. 25531 Energy Minerals Corporation 90. 63595% of 6. 0% ORI .0543016
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W 6955 Francis Energy , Inc. 79% of 9 .36405%,44
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rn U 90.63595% of 80. 50 WI .8035954
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910479
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MAY CT!, 1991 �U
A55OCIWEU NOM. 645, INC. •
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". ELD COUNTY
ATTORNEY'S OFFICE ,
M<ay 6, 1..991.
We J._'. Cowl t.y C;o3.Oradr
Office of County Attorney
P.O. Box 1948
Greeley , Colorado 00632
Attu: Br'u.e.e Barker.
Assistant. Weld County Attorney
Re: Spumer #1 ; ANG I Lease #212
Well, County , Colorado
Dear- Mr . Barker:
Associated Natural Gas, LAC. receipt: of your letter of Apr it
23, 1.991 in which you have questioned the accuracy of the Royalty
interest for' Weld County as <-hown on oz.tr DiVi5iOn Order of April
16, 1991 ,
This Oeder ;vas prepared pursuant to title as set forth in the Title
Opinion dated March 11 , 1991 whic`z was provided for our use by
Francis Energy , Operator of the wel7 . If you believe their Title
Opinion is incorrect , please contact Nicholas D. Francis at 1220
Eleventh Avenue, Suite 203, Greeley , Colorado 0063.1 . 71e3se ask
him to c:ontact us regarding this matter .
If we can be of further assistance, please do not: hesitate tU c_al l
or weite.
Yours very truly ,
A!.:;SOC I A'I ED NATURAL GAS, INC.
tor Adf."14.A14--)
Mamie L . Sinkes
Div.ir:iOf1 Order Analyst
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cc : Nicholas D. Francis
910479
900 REPUBLIC PLAZA • 370 SEVENTEENTH STREET • DENVER,COLORADO 80202 • (303)595-3331 • FAX(303)595-0480
MAILING ADDRESS: P.O. BOX 5493 • DENVER, COLORADO 80217
OFFICE OF COUNTY ATTORNEY
\I; PHONE(303)3564000 EXT. 4391
fit
\ P.O. 80X 1948
GREELEY,COLORADO 80632
COLORADO
April 23, 1991
Associated Natural Gas, Inc.
ATTN: Division Order Dept.
P. O. Box 5493
Denver, CO 80217
RE: Gas Division Order for
Lease No. 2127
Dear Sirs :
The Board of County Commissioners of Weld County, Colorado is in
receipt of a Gas Division Order for Lease No. 2127 . The property
in question is located in the Northeast Quarter, Southwest Quarter,
Section 33, Township 5 North, Range 66 West of the 6th P.M. , Weld
County, Colorado. Enclosed is a copy of the Gas Division Order.
Also enclosed is a copy of a Division Order from Permian Operating
Limited Partnership concerning the same property. This Division
Order was received in early April, 1991 .
The Board of County Commissioners has two questions for Associated
Natural Gas regarding the Gas Division Order:
A. Weld County' s records show that the royalty interest has
been . 1203328 . This is based upon the fractional
interest of 1/8 x 77 .013/80 . The royalty interest which
is listed in Exhibit A to your Gas Division Order is
. 1132949 . Please explain the discrepancy.
B. The Board is currently uncertain as to whether it should
sign the Division Order from Permian or the Division
Order from Associated Natural Gas . Please update the
Board as to the history of the transactions which may
have occurred in order to give Associated Natural Gas the
right to the Division Order.
9110479
As- O( natural Gas , Inc .
Page 2
April 23, 1991
Please send this information to: Bruce T. Barker, Assistant Weld
County Attorney, P. O. Box 1948, Greeley, Colorado 80632 .
I will look forward to your anticipated prompt attention to this
matter.
Sincerely,
����
Bruce T. Barker
Assistant Weld County Attorney
BTB:rm
910479
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