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RESOLUTION I�
RE: APPROVE OIL AND GAS DIVISION ORDER FROM ASSOCIATED TRANSPORT
AND TRADING COMPANY, P.O. BOX 5493 , DENVER, COLORADO 80217,
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 Nielson Enterprises, Inc. , and
WHEREAS, said lease covers land more particularly described
as follows:
TOWNSHIP 2 NORTH - RANGE 65 WEST
Section 18 : SE/4NE/4
Weld County, Colorado
WHEREAS, Associated Transport and Trading Company 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 Associated Transport and Trading
Company, 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.
106b3.
901181
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Page 2
RE: DIVISION ORDER - ATTCO
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 26th day of
November, A.D. , 1990 .
na / /1 ( ' /!fl /J BOARD F COUNTY COMMISSIONERS
ATTEST: WELD NTY, COLORADO
Weld County Clerk to the Board /L
ene R. Brantner, Chairman
BY: getA,etlitide-taLc_itGeo ge Ken edy, ciZuty Clerko te Boards l///� VV
APPROVED AS TO FORM: Constance L. H-arbe t ��� !
C.W. Kir y
C unty Attorney
Gor y
901181
A tf22 41,
UM NEUAl UUSJ ^
314 4
(COMBINED CAS AND OIL)
IC: ASSOCIATED NATURAL OAS, SOC. (•ANSI•)
ASSOCIATED 1NANSPORT AID TWOS COMM (aATTCO')
Vest Office Soa S493 8552 (Gas)
Omar, Colorado KM
ATTN: •O idden Order OsporLent Lease No. 50446 (Oil )
Date November 9, 1990
Plant
the undersigned, end tech of son, certify enld guarantee that use ere the legal owners of snd hereby usrrant the title to our
respective interests in the proceeds derived from the sale of Gas end Oil (es sore individually defined herein) produced end
saved from the KAP #1 lease or snit located in the Canty or Parish of Welt
state of Colorado pore particularly described es follows:
TOWNSHIP 2 NORTH - RANGE 65 WEST
Section 18: SE/4NE/4
OWNER NO. CREDIT TO DIVISION Of INTEREST DECIMAL
SEE ATTACHED EXHIBIT "A" FOR OWNERSHIP LISTING
Effective B:DO A.M. October 1, 1990 and until further notice, you are hereby authorized to take or retain
possession of all Gas and oil fro& said property(ies) on end after the effective day end to give credit as set forth above for
all proceeds derived froa the sale thereof from said property(ies) subject to the conditions, covenants end directions set out
below:
FIRST: It is understood that the Gas produced fro& the above-described property(ies) is being sold
under that certain Gas Purchase and Processing Agreement dated October 12 19_$JQ, between
Basin Operating CompaNy as 'Seller' and ASSOCIATED NATURAL GAS,
INC. as 'Buyer', and that all terms and covenants contained therein, end in any amendments, extensions,
or renewals thereof shall govern end be binding 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
ere to be made. As used in this Division Order, the ter, 'Gas' shall be deemed to include cssinghead
gas, gasoline and all products which Associated Natural Gas, Inc. may receive and/or recover by
processing fro; gas produced froa wells on said property(ies).
All covenants appearing on the reverse side hereof are incorporated herein by reference and the undersigned agree that each shall
be deemed snd considered an essential part of this Division Order in like manner and with the same effect as it printed above
our signatures.
The undereiyhld'exDrestly waive any claim against ANGI and ATTCO for any and all amounts which may be due us fro& others for
production pr Syr to thoieffective date hereof.
C Owners Sign below Taxpayer identification or
StTt' r-�
�y,t � ter Neill ress) Social Security limber
ATTEST: Xt. ,l� 84—6000R13
Gene R. Brantner,Chairman
Weld Cnunty Rnard of Crimmiccinnere
Deput e k,1;' the Board Address
P.O. Box 758, Greeley, CO 80632
Address
Address
B 1283 REC 0"2234446 11/29/90 16: 42 X0. 00 1/003
F 1645 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
y" 6 >, , r 1 a
3
901181
gum: The Nerd °Olt° ai used herein Shell is eli de, but is not limited\ to, eandenaste end ell
mar le CiOuid *dread produced WM avid hereunder, but axe og that ',covered fro
processing of Oes. All NI ►e.eived end psrdsesed hereunder shall be mereheateble Oil end shot C-►eeome
the rty Of ATTCO es soon s the of any carrier it
designnsde e
s. ATTCO Shell Mott be expect ereceived
edtoo receive Oil I custody
definite emest t ilies, Mar fOr fixed periods,
Ilex to provide Storage,
THIRD: The Oil received and purchased hereuder shalt be delivered f.o.b. to any carrier ATTCO
accordingstohich the division rs Of Interests said
herrein specif end ieed eTCO tgrees to thepriceey for Such Oil to the agreed wpm between ATTCO undersigned
andt he
tease operator.
FOURTH: Quantities of Oil purchased hereunder shall be detersined by the Method of Oessuroment end
of limitionation,
n, the g by aging ofO or storey, tanks regulerly compiled t to receive Minkk tables,hOil ltheruseut net of certified
of truck
a ges, the gouging
crock gauges, and the use of Meters or may other reasonably accurate method of aimau•eaint and
co putatien. ATTCO shall correct the volume and gravity to o teepersture of de fehrenheit end shall
deduct Ire such corrected volume the full percenteges of basic sediaent, water aid other impurities
as shown by its test. ATTCO may refuse to receive any Oil it considers to be not merchantable.
FIFTH: Payments are to be aide monthly by checks of ANGI for gas end ATTCO for Oil to be delivered
or mailed to the parties thereto entitled et the odd above given, provided that ii the amount
due any owner is less than Twenty-five and 00/100 Dollars (125.00) per month, ANG1 or ATTCO, at its
option, may deter the making of such payment until sum time es the aggregate amount due exceeds said
sus. The undersigned authorize ANGI end ATTCO to withhold from the proceeds of any and all Gss and
Oil referred to herein, the amount of ony tax placed thereon, or on the production thereof, including
but not limited to any severance, production or occupation tax, by any governmental authority, local,
state and/or federal, ond to pay the same in our behalf with the proceeds so withheld.
SIXTH: In the event of any adverse claim of title or in the event title shall not be satisfactory to
ANGI or ATTCO at any time during the term of this Division Order, each of the undersigned sprees to
furnish complete abstracts of title and other evidence of title satisfactory to ANGI and/or ATTCO end
authorizes sale to withhold payment without obligation to pay interest on the amount so withheld, until
satisfactory indemnity shall be furnished to ANGI snd ATTCO. Each undersigned party as to the interest
of such party hereunder respectively agrees, in the event suit is filed in any court affecting title
to said Gas and/or Oil, either before or after severance, to indemnify and save harslet, ANGI and ATTCO
against any and all liability for loss, cost, damage end expense which ANGI or ATTCO may suffer or incur
on account of receiving and ;eying said party the proceeds derived from the sale of said Gas and/or
Oil. Where ANGI and/or ATTCO, pursuant to the provisions hereof, withholds payment or any part thereof,
each undersigned party trot whom payment is withheld severally agrees to indemnify and hold ANGI and
ATTCO harmless of and from ell liability for any tax, together with all interest and penalties incident
thereto, imposed or assessed against or paid by thee on account of the sum or sums so withheld from
payment to said party and deduct all such taxes, interest and penalties so paid by then from any sums
owing by they to said party. I1 'suit is filed affecting the interest of the undersigned, written
notice thereof shall be given ANGI end ATTCO st the above address by the undersigned, together with
a certified copy of the complaint or petition filed. If ANGI or ATTCO are made a party to such
proceedings, the undersigned agrees to indemnify same against any judgment rendered therein and to
reimburse ANGI and ATTCO for any costs, attorney's fees or other expenses incurred in connection
therewith.
SEVENTH: The undersigned severally agree to notify ANGI and ATTCO of any change of ownership and no
transfer of interest shell be binding upon ANGI or ATTCO until transfer order and the recorded
instrument evidencing such transfer, or a certified copy thereof, shall be furnished to ANGI or ATTCO.
Transfer of interest shall be made effective 8:00 a.m. on the first day of the calendar month in which
proper notice is received by ANGI and ATTCO. ANGI and ATTCO are hereby relieved of any responsibility
for determining if and when any of the interests hereinabove set forth shall or should revert to or
be owned by other parties as a result of the completion of discharge of money or other payments from
said interests and the signers hereof whose interests are affected by such money or other payments,
it any, agree to give ANGI and ATTCO notice in writing by registered letter addressed to ANGI and ATTCO
at the above address, directed to Division Order Department, when any such money or other payments have
beer, completed or discharged, or when any division of interest other then that set forth above shall,
for any reason, become effective and to furnish transfer order accordingly and that in the event such
notice shell not be received, ANGI and ATTCO shall be held harmless in the event of, and are hereby
released fro any and all damage or loss which might arise oft of any overpayment. Should adjustments
be necessary, ANGI end AT= shall have rights (tut no duty) to set off any and all individual or joint
liabilities the undersigned has with sane, including but not limited to proceeds free this and other
lease interests owned by the undersigned.
EIGHTH: If any portion of the proceeds derived fro the sale o4.Gas is subject to refund under any
order, rule or regulation of the Federal Energy Regulatory Commission or the provisions of the Natural
Gas Act or Natural Gas Policy Act of 1976, ANGI say hold without interest the portion of the proceeds
subject to refund unless indemnity satisfactory to ANGI has been furnished, or until ANGI's refund
obligation has been finally determined. 1/ any portion of the proceeds derived from the sale of Gas
is paid over by ANGI under any order, rule or regulation of the Federal Energy Regulatory Commission
or the provisions of the Natural Gas Act or Natural Gas Policy Act of 1978, ANGI and ATTCO are
authorized to recover the amount of the refund applicable to the interest of each of the undersigned
frog future payments (Gas and Oil) or at ANGI's election, it say invoice the undersigned therefor, plus
the legal rate of interest ANGI is or may be required to pay in connection with the undersigned's
portion o1 the refund.
NINTH: 11 the undersigned is a working interest owner shH/or operator, he or she guarantees and
warrants that all Gas and Oil tendered hereunder has been or will be produced and delivered in
compliance with all spplicable federal, state and local laws, orders, ruses am ,ewvsatrons.
TENTH: This Division Order shall become valid and binding upon each end every owner above named upon.
execution hereof by such owner regardless of whether or not any of the other above-named owners. have
so signed. No termination of this Division Order shall be effective without giving thirty (10) days
prior written notice. If the provisions of this Division Order are in conflict with the provisions
01 any oil and gas lease covering the above-described property(ies), the provisions of this Division
Orden shell pteveil. face undersigned owner ratifies and confirms his oil and gas lease as being in
lull force and effect as of the date hereof. In consideration of the purchase of Gas and Oil hereunder,
consent is given ANGI and ATTCO and any pipeline company whir' same may cause to connect with the wells
and tanks or, said land, tc disconnect and remove such pipelines, in case of terrination by either ANGI
or ATTCO or the undersigned of sny purchases under this Dtvisior. Order . Ir. the event of conflict
between the provisions of this Division Order and applicable las or regulations, the provisions of this
Divnsior. Order shall be deemed modified se as to comply with such la. or 'regotat ion.
B 1283 REC 02234446 11/29/90 16: 42 X0.00 2/003
F 1646 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
EXHIBIT A
50446
•
OWNER. NO CREDIT TO PERCENTAGE INTEREST
4430 ENERGY MINERALS CORPORATION 2. 324230 OI
10997 MAYNARD W. NICHOLS 0. 195310 OI
2882'.7 AMOCO PRODUCTION COMPANY 2. 519530 OI
10997 MAYNARD W. NICHOLS 0. 390630 RI
22971 WELD COUNTY C/0 !,!4 ''. 0. 439450 RI
BOARD OF COUNTY C0AM1SSIONERS
29578 CAROL BELL 1. 464840 RI
29579 PHYLLIS BOLLMAN 1. 464840 RI
29580 FAYRENE MEYERS 1. 464850 RI
29581 EUGENE MUSE 1. 464850 RI
29582 POTTS FARM ACCOUNT 5. 810540 RI
C/O HARVEY 0 POTTS MANAGER
28825 BASIN EXPLORATION INC FOR 82. 460930 WI
NIELSON PROPERTIES
*** 100. 000000
B 1283 REC 02234446 11/29/90 16: 42 X0. 00 3/003
F 1647 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
, •
ATKO r
A5SOCII•TEU TRANSPORT & TR4DIN6 COMP `,JJ
November 9, 1990 -7,01 -
.
•
TO ALL INTEREST OWNERS:
Basin Exploration, Inc. has recently acquired all of Nielson
Enterprises Inc. 's oil and gas properties in Colorado and has
reached an agreement with Associated Transport and Trading Company
to distribute the oil revenues from said properties and Associated
Natural Gas, Inc. to distribute the gas revenues. The effective
date of the change of the distribution from Nielson to Associated
will be October 1 , 1990.
To accommodate this transfer, enclosed please find Oil and Gas
Division Orders for execution in accordance with the attached
instruction sheet. Return to the below listed letterhead address
at your earliest convenience. Should executed Division Orders not
reach Associated Natural Gas, Inc. within 45 days, revenues will
be suspended pending receipt of same.
Oil checks are issued on the 20th of each month; gas checks
are issued on the last day of each month. Both ANSI and ATTCO have
a $25.00 minimum value before a check is issued . Monies less than
$25.00 remain in a minimum suspense account until the $25.00 is
reached or all monies are released once a year in December ( if the
minimum is not met) .
On Working Interest ownership, Lease Operating Expenses will
be netted against revenue unless other arrangements are currently
in place with Basin.
ATTCO/ANGI look forward to being of service to you.
Yours very truly,
ASSOCIATED TRANSPORT AND TRADING COMPANY
ASSOCIATED NATURAL GAS, INC.
ittefe_.
Barbara L. Buck
Manager, Division Orders
BLB:blg
Enclosure
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
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