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Home My WebLink About930802.tiff RESOLUTION RE: APPROVE OIL AND GAS DIVISION ORDER TO ASSOCIATED NATURAL GAS, INC. , FROM DACONO OIL 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 Associated Natural Gas, Inc. , P.O. Box 5493, Denver, Colorado 80217, from Dacono Oil Company, and WHEREAS, said Division Order covers land more particularly described as follows: Township 2 North, Range 66 West, 6th P.M. Section 6: WsSE* 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 Associated Natural Gas, Inc. , P.O. Box 5493, Denver, Colorado 80217, from Dacono Oil 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. 930802 JQ / Get nB (1(1 : L 5=;; p , 110,�S1- DIVISION ORDER - ASSOCIATED NATURAL GAS, INC. PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the followi vote on the 16th day of August, A.D. , 1993. {//�� /� vl/G�Z '�l BOARD OF COUNTY COMMISSIONERS ATTEST;1 Ly t WEL COUNTY, COLORADO Weld County Clerk to the Board onsttance L. CHarbert, Chairman BY: Deputy Clerk t the Board W. b tt o-.Tem APPROVED AS TO FORM: c , eorge . Baxter jam.,-- I "County Attorney Da . Hall arbara J. Kirkmey r 930802 • AR21146933 DIVISION ORDER (COMBINED GAS AND OIL) Gas Lease No. 46016 TO: ASSOCIATED NATURAL GAS, INC. ("ANGI") Oil Lease No. 51514 ASSOCIATED TRANSPORT A TRADING CO. ("ATTCO") P.O. Box 5493 Denver, CO 80217 Date: August 5, 1993 The undersigned, and each of us, certify and guarantee that we are the legal owners of and hereby warrant the title to our respective interests in the proceeds derived from the sale of Gas & Oil (as more individually defined herein) produced and saved from the Miller. Elton N. /E/ #1 lease or unit, located in the County or Parish of Weld, State of Colorado, more particularly described as follows: Township 2 North, Range 66 West Section 6: W/2SE/4 Owns o. Credit To Division of Interest Decimal 112 9 Weld County 0.28438% RI 0.0028438 4O345 Elton N. Miller and 12.21562% RI 0.1221562 Catherine J. Miller 39457 Basin Exploration, Inc. • 87.50000% WI 0.8750000 Effective at 8:00 A.M. Date of first purchase and until further notice, you are hereby authorized to take or retain possession 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 sate thereof from said property(ies) subject to the conditions, covenants and directions set out below: FIRST: It is understood that the Gas produced from the above-described property(ies) is being sold under that certain Gas Purchase and Processing Agreement dated November 1, 1991 between Dacono Oil Co4any es "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 ant/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 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. may receive and/or recover by processing from gas produced from 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 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 "AIM" or "ATTCO" for any and all amounts which may be due us from others for production prior to the effective date hereof. Signatures of Witnesses Owners Sign Below Taxpayer I.D. Number or (Enter Mailing Address) Social Security Number ATTEST: / �/,dQ,A,// �J� f 84-6000813 ,.• CHAIRMAN, WELD COUNTY BOARD OF COMMISSIONERS 08/18/93 BY: t!/ i �I- i Address P.O. BOX 758 DEPUTY ,y' ERK TO !BOARD GREELEY, CO 80632 Address Address MNB:la ORIGINAL•` B 1398 REC 02346933 08/19/93 15 : 40 $0 .00 1/002 F 0662 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 230902 ��pos� ,.•�.., SECOND: The word "Oil" as used herein shall include, but is not limited to, condensate and all marketable liquid hydrocarbons produced and saved hereunder, but excluding that recovered from processing of Gas. All Oil received and purchased hereunder shall be merchantable Oil and shall become the property of "ATTCO" as soon as the same is received into its custody or that of any carrier it designates. "ATTCO" shall not be expected to receive Oil in definite quantities, nor for fixed periods, nor to provide storage. THIRD: The Oil received and purchased hereunder shall be delivered f.o.b. to any carrier "ATTCO" designates which gathers and receives said Oil and "ATTCO" agrees to pay for such Oil to the undersigned according to the division of interest herein specified at the price agreed upon between "ATTCO" and the lease operator. FOURTH: Quantities of Oil purchased hereunder shall be determined by the method of measurement and computation employed by "ATTCO" or "ATTCO's" agent designated to receive such Oil including but not by way of Limitation, the gauging of storage tanks using regularly compiled tank tables, the use of certified truck gauges, and the use of meters or any other reasonably accurate method of measurement and computation. "ATTCO" shall correct the volume and gravity to a temperature of 60u Fahrenheit and shall deduct from such corrected volume the full percentages of basic sediment, water and 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 made monthly by checks of "ANGI" for Gas and "ATTCO" for Oil to be delivered or mailed to the parties thereto entitled at the addresses above given, provided that if the amount due any owner is less than Twenty-five and no/100 Dollars ($25.00) per month, "ANGI" or "ATTCO", at its option, may defer the making of such payment untiL such time as the aggregate amount due exceeds said sum. The undersigned authorize "ANGI" and "ATTCO" to withhoLd from the proceeds of any and all Gas and Oil referred to herein, the amount of any 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, and 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 agrees to furnish complete abstracts of title and other evidence of title satisfactory to "ANGI" and/or "ATTCO" and authorizes same to withhold payment without obligation to pay interest on the amount so withheld, until satisfactory indemnity shall be furnished to "ANGI" and "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 harmless "ANGI" and "ATTCO" against any and all liability for loss, cost, damage and expense which "ANGI" or "ATTCO" may suffer or incur on account of receiving and paying 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 from whom payment is withheld severally agrees to indemnify and hold "ANGI" and "ATTCO" harmless of and from alL liability for any tax, together with all interest and penalties incident thereto, imposed or assessed against or paid by them on account of the sun or sums so withheld from payment to said party and deduct all such taxes, interest and penalties so paid by them from any sums owing by them to said party. If suit is filed affecting the interest of the undersigned, written notice thereof shall be given "ANGI" and "ATTCO" at 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 shall 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, if any, agree to give "ANGI" and "ATTCO" notice in writing by registered letter addressed to "ANGI" and "ATTCO" at the above address, directed to the Division Order Department, when any such money or other payments have been completed or discharged, or when any division of interest other than that set forth above shall, for any reason, become effective and to furnish transfer order accordingly and that in the event such notice shall not be received, "ANGI" end "ATTCO" shall be held harmless in the event of, and are hereby released from any and alt damage or loss which might arise out of any overpayment. Should adjustments be necessary, "ANGI" and "ATTCO" shall have rights (but no duty) to set off any and all individual or joint liabilities the undersigned has with same, including but not limited to proceeds from this and other lease interests owned by the undersigned. EIGHTH: 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 Natural Gas Act or Natural Gas Policy Act of 1978, "ANGI" may 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. If 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 from future payments (Gas and Oil) or at "ANGI's" election, it may invoice the undersigned therefore, plus the legal rate of *interest ANGI" is or may be required to pay in connection with the undersigned's portion of the refund. NINTH: If the undersigned is a working interest owner and/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 applicable federal, state and local laws, orders, rules and regulations. TENTH: This Division Order shall become valid and binding upon each and 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 (30) days prior written notice. If the provisions of this Division Order are in conflict with the provisions of any oil and gas lease covering the above-described property(ies), the provisions of this Division Order shall prevail. Each undersigned owner ratifies and confirms his oil and gas lease as being in full 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 which same may cause to connect with the wells and tanks on said land, to disconnect and remove such pipelines, in case of termination by either "ANGI" or "ATTCO" or the undersigned of any purchases under this Division Order. In the event of conflict between the provisions of this Division Order and applicable law or regulations, the provisions of this Division Order shall be deemed modified so as to comply which such law or regulation. 4 B 1398 REC 02346933 08/19/93 15:40 $0. 00 2/002 • F 0663 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO ATTCO INSTRUCTIONS TO ALL INTEREST OWNERS O [HE ENCLOSED OIL DIVISION ORDER OR OIL TRANSFER ORDER SHOULD NOT BE ALTERED IN ANY WAY EXCEPT TO CORRECT SPELLING ERRORS, UNLESS ACCOMPANIED BY DOCUMENTARY EVIDENCE TO SUPPORT rail. CHANGE. If your name and interest are correctly shown: 1. Sign your name as shown on the Oil Division Order or Oil Transfer Order. 2. Have your signature witnessed by two competent witnesses. 3. If your name has changed due to marriage, or divorce, execute the Oil Division Order or Oil Transfer Order using your present name and furnish a copy of the marriage certificate or divorce decree. 4. If signing for a corporation, signature must be attested, corporate seal fixed and title of signatory party reflected. 5. If signed by an agent, attorney-in-fact,guardian or any party other than the named interest owner, a certified copy of the power of attorney or other evidence of such party's right to sign must be furnished. 6. Oil Division Orders or Oil Transfer Orders for partnerships must be executed by all partners or by an authorized partner. A certified copy of the instrument giving said partners authority to sign must be furnished. 7. Should you fail to provide your correct Social Security Number or Tax Identification Number, the law provides that we withhold 20% of all production proceeds due you. You may also be subject to a further penalty levied by the Internal Revenue Service. 8. Your correct mailing address should be noted in the space provided to insure prompt receipt of production proceeds. 9. The "Original" of the Oil Division Order or Oil Transfer Order should be returned to: Associated Transport and Trading Company P. O. Box 5493 Denver, CO 80217 Attention: Division Order Department 10. Should you have any further questions regarding the enclosed Oil Division Order or Oil Transfer Order,please contact your operator or Associated Transport and Trading Co. at (303) 595-3331. 11. Please DO NOT DETACH the Exhibit from the Oil Division Order or Oil Transfer Order if one is included. 930822 L�4 993 REPUBLIC PLAZA • 370 SEVENTEENTH STREET • DENVER.COLORADO 80202 • (303)5953331 • FAX(303)595-0d80 Hello