HomeMy WebLinkAbout920948.tiff AR23175 4511
RESOLUTION
RE: APPROVE CONSENT TO COMMINGLING WITH BASIN OPERATING 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 Consent to Commingling with
Basin Operating Company, 633 17th Street, Suite 1500, Denver, Colorado 80202,
and
WHEREAS, said Consent to Commingling covers land more particularly
described as follows:
Township 2 North, Range 66 West, 6th P.M.
Section 26: SEINE;
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 Consent to Commingling, a copy of which is attached hereto and
incorporated herein by reference, and
WHEREAS, said Consent to Commingling 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 Consent to
Commingling on the parcel of land described herein.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the Consent to Commingling with Basin Operating Company,
633 17th Street, Suite 1500, Denver, Colorado 80202, 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 Consent to Commingling.
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F 0108 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 920948
I Look() ems. ' att5/N (PLI Pc(tTeu)
CONSENT TO COMMINGLING - BASIN OPERATING CO.
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following n vote on the 28th day of September, A.D. , 1992.
ATTEST: �/✓ �� BOARD OF COUNTY COMMISSIONERS
,WELD CO CO COLORADO
Weld County Clerk to the Board
Geo a Ken edy, Chairman / s
BY:4> Y///_ ti �� /ii( /
Deputylerk�ti the Constance L. Harbert,
APPROVED AS ORM' lidlif,""fr
Ki C. W. Kir
C� 67 �-� / ~Y
ounty Attorney GordlnE. LAcy
IX k
W. Webster
aaq
920948
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F 0109 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
BASIN WELD COUNTY
EXPWR _, TIOI`I
INC SEP 14 !H 9: 57
CLERK
TO THE EC/
September 10, 1992
TO: Owners as Shown on Mailing List
RE: Consent to Commingling
Badding #1 Well
SE/4NE/4 Section 26-2N-66W
Weld Co. , Colorado
Gentlemen:
Basin Operating Company ("Basin") proposes to produce oil and gas from both the
"J" Sandstone Formation as well as the Codell and Niobrara Formations of the
referenced well. Basin believes that this method of producing oil and gas from
the well will maximize the recovery of mineral resources and will benefit all
parties with interests in the well. However, the designated producing unit for
the "J" Sandstone Formation in this well is 320 acres, while the designated
producing unit for the Codell and Niobrara formations in the well is 80 acres.
Basin proposes designating 160 acres as the producing unit for the Niobrara and
Codell formations. A description of the respective units, along with your
participation in each, is further set out on Exhibit "A" attached hereto.
In order to commingle production from these different formations and units, the
Oil and Gas Conservation Commission of the State of Colorado ("Commission")
provides that Basin may obtain your consent. The Commission also provides that
Basin may obtain your agreement to a method or formula whereby the common
production stream will be allocated between the two producing units. Basin is
proposing the allocation formula described on Exhibit "B" attached hereto, which
is self-explanatory.
If you consent to the commingling of the "J" Sandstone Formation along with the
Codell and Niobrara Formations in the referenced well, and further agree to the
proposed allocation method for allocating oil and gas production between the two
separate producing units, please sign this letter in the space provided below
before a Notary Public and return one original, which has been properly executed
and acknowledged, to Basin at the address set out below.
92 0D49
633 17th Street, Suite 1500 Denver, Colorado 80202 Office 303-292-2322 FAX 303-292-0050
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.-v-' p f F 0110 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
September 10, 1992
Badding #1 Well
Page Two
If you have any questions concerning this matter, please feel free to contact
Mr. Dan Schwartz of Basin at the letterhead address.
S'n erely,
V
Dan L. Schwartz -
Vice President
gkm
attachments
AGREED AND ACCEPTED THIS DAY OF , 1992
Sylvester J. Badding
Dorothy Ann Badding
John D. Cranor
C. A. Patchen
3, Q 49
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F 0111 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
September 10,1992
Badding #1 Well
Page Three
ESTATE OF JOSEPHINE M. RYMAL
by
(Title)
Gross National Bank, Guardian
ATTEST: WELD COUNTY
1,ELD O iii �� : .� , l(1E BOARD b
/� /J by
/ I % z4- Cf/ j CHAI (Titl
B`i: i i CL Board of County Commissioners 09/30/92
T THE BOAR�-
MACEY & MERSHON OIL INC.
ATTEST:
by
-,.) ) , ;etka%tat:y (Title)
920945
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F 0112 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
STATE OF )
SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 1992, by •
Witness my hand and official seal.
My commission expires:
Notary Public
STATE OF )
SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 1992, by •
Witness my hand and official seal.
My commission expires:
Notary Public
STATE OF )
SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
1992, by
as
of •
Witness my hand and official seal.
My commission expires:
Notary Public
92€ 949
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F 0113 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
EXHIBIT "A"
E/2 SECTION 26-T2N-R66W
320.00 ACRE SPACING LIMITED TO THE "J" SAND
OWNER NET REVENUE INTEREST
Sylvester J. Badding and
Dorothy Ann Badding 7.500000%
Weld County, Colorado 6.250000%
C. A. Patchen 0.500000%
John D. Cranor 0.875000%
Macey & Mershon Oil Inc. 2.500000%
Estate of Josephine M. Rymal 0.446425%
Basin Operating Company 81.928575%
NE/4 SECTION 26-T2N-R66W
160.00 ACRE SPACING LIMITED TO THE CODELL AND NIOBRARA FORMATIONS
OWNER NET REVENUE INTEREST
Sylvester J. Badding and
Dorothy Ann Badding 15.000000%
C. A. Patchen 1.000000%
Estate of Josephine M. Rymal 0.892850%
John D. Cranor 0.875000%
Basin Operating Company 82.232150%
920949
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F 0114 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
EXHIBIT "B"
PROPOSED ALLOCATION METHOD
"Production"
The "Production Method" of allocation assigns montly volumes of oil and gas to
each formation which is commingled within a single wellbore. The volumes are
determined by estimating the reserves for each formation using actual production
histories. The oil and gas reserves for each formation are then used to
establish the contribution of each formation to the total recovery from the
well. The ratios between each formation will remain the same for the life of
the well. The procedure is as follows:
1. Calculate the "J" Sand reserves for the subject well.
2. Plug back the "J" Sand and complete the Codell formation.
3. Produce the Codell formation for a minimum of three months to establish a
stabilized production trend.
4. Calculate the Codell reserves for the subject well.
5. Determine the ratio of gas reserves on an MMBTU basis and the oil reserves
for each formation for each year of the life of the well.
6. Allocate monthly production for each year based on the projected oil and gas
ratios calculated for that year.
7. Example of allocation:
Let Al = "J" Sand oil reserves for year
Let A2 = "J" Sand gas reserves for year
Let B1 = Codell oil reserves for year
Let B2 = Codell gas reserves for year
Total oil reserves for year = Al + B1
Total gas reserves for year = A2 + B2
"J" Sand oil allocation factor for year = (A1/[A1+B1] )
"J" Sand gas allocation factor for year = (A2/[A2+B2] )
Codell oil allocation factor for year = (B1/[A1+B1] )
Codell gas allocation factor for year = (B2/[A2+82] )
8. All "J" Sand royalty owners within the standard 320.00 acre "J" Sand spacing
unit will be paid based on the "J" Sand allocation, and all Codell royalty
owners within the standard 160.00 acre Codell spacing unit will be paid
based upon the Codell allocation.
920348
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F 0115 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
Badding #1 Mailing List
September 10, 1992
Sylvester J. Badding and
Dorothy Ann Badding
3871 Weld County Road 21
Fort Lupton, CO 80621
Weld County
Board of County Commissioners
P. O. Box 758
Greeley, CO 80632
Macey & Mershon Oil Inc.
1600 Broadway, Suite 1760
Denver, CO 80202-4970
John D. Cranor
5735 South Ivy
Englewood, CO 80111
C. A. Patchen
3151 S. Jasmine Way
Denver, CO 80222
Groos National Bank, Guardian
Estate of Josephine M. Rymal
P. O. Box 1330
San Antonio, TX 78295
920349
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F 0116 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
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