HomeMy WebLinkAbout930165.tiff RESOLUTION
RE: APPROVE TWO OIL AND GAS DIVISION ORDERS TO ELK EXPLORATION, INC. 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 two Oil and Gas Division
Orders to Elk Exploration, Inc. , 3807 Carson Avenue, Evans, Colorado 80620, and
WHEREAS, said Division Orders cover land more particularly described as
follows:
Township 3 North, Range 66 West, 6th P.M.
Section 2 : Ni NW,'-,
HSR Freeland #3-2 and Fromholz #4-2
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 Orders, copies of which are attached hereto and
incorporated herein by reference, and
WHEREAS, said Division Orders have 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 Orders on
the parcel of land described herein.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the two Oil and Gas Division Orders to Elk Exploration,
Inc. , 3807 Carson Avenue, Evans, Colorado 80620, on the hereinabove described
parcel of land be, and hereby are, approved.
BE IT FURTHER RESOLVED by the Board that the Chairman be, and hereby is,
authorized to sign said Division Orders.
930165
I r_ /^,n1 /,. CC_ K L,K ( lowePL(KiK ta)
DIVISION ORDERS - ELK EXPLORATION, INC.
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 17th day of February, A.D. , 1993.
� i BOARD OF COUNTY COMMISSIONERS
ATTEST: p / /1�.;��� �i WELD COUNTY, COLORADO
Weld County Clerk to the Board A.2g.xa,:..
//�� /// Const nce L. Harbert,
Chairman
BY:_,>ii r?'-iFl.i/?/ --1"-,/,' �� �r�/ i' (44d
Deputy Clerk to the Boa W. H. ebster, Pr -Tem
V AS TO FORM: A._,,,
'/-�4¢- /ur. Baxter
li
ounty At orn � Hall U
Da
Barbara J. KirkmeyTr
930165
AR.23212471 2971 OIL 4ND GAS DIVISION ORDER
ELK EXPLORATION, INC.
3807 Carson
Evans, CO 80820
(303) 330-0814
Each of the undersigned OWNERS guarantees and warrants he Is the owner of the oil and gas interest set out opposite his name on the reverse
side hereof or the proceeds from the sale of oil,gas and hydrocarbons from the property described on the reverse side hereof,and until receipt
of written notice either from Elk Exploration,Inc. ('Elk")or from us,the undersigned owner and all other parties executing this Instrument hereby
authorize Elk,its successors or assigns to receive and measure such sales in accordance with applicable contractual and/or governmental rules
and regulations and to give credit as set forth on the reverse side hereof.
The following covenants are parts of this instrument and shall be binding on the undersigned,their successors,legal representatives,heirs and
assigns:
Oil:
Oil sold hereunder shall be delivered f.o.b,to the carrier designated to gather and receive such oil,and shall become Elk's property upon receipt
thereof by the carder designated by It or by any other purchaser to whom Elk may sell such oil. The term'oil'as used in this division order shall
include all marketable liquid hydrocarbons gathered at the lease. Elk agrees to pay for the oil sold hereunder at the price received by It from
the purchaser(s),the posted price In the area for oil of the same grade and gravity in the same producing field or area on the date said oil is
received by the designated carder,or pursuant to the terms of any applicable sales contract. Elk is authorized to reduce the price by any gravity
adjustments and truck,tankcar,or pipeline transportation charges as may be charged to it by the purchaser. Should the oil sold hereunder be
resold by Elk to another purchaser accepting delivery thereof at the same point at which it takes title,Elk agrees to pay for such oil based upon
the volume computation made by such purchaser and at the price received by Elk for such oil,reduced by any transportation or gravity charges
deducted by such purchaser. (Duality and quantity shall be determined in accordance with the conditions specified in the price posting.
Gas:
Settlements for gas shall be based on the net proceeds realized by Elk from the sale thereof for all volumes as measured at the meter run(s)
on the spacing unit described on the reverse side hereof in accordance with Elk's gas purchase contracts applicable to the lands after deduction
of a fair and reasonable charge for compressing,fractionation,conditioning,or other process making it merchantable and for transportation if
the gas is sold off the property. Title to the gas shall pass to Elk or any purchaser,transporter,or gatherer designated by Elk at the meter run(s)
on the spacing unit or at such other place(s) as may be designated in the applicable gas sales contract(s). Where gas is sold subject to
regulation by any governmental authority, the price applicable to such sale approved by such authority shall be used to determine the net
proceeds realized from the sale. The term"gas"shall be deemed to Include gas,casinghead gas,gasoline and all other hydrocarbons and
products recovered in the processing and conditioning of such gas. 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 ('FERC') or the provisions of the Natural Gas Act or
Natural Gas Policy Act of 1978 (The 'Acts"), Elk may hold without interest the portion of the proceeds subject to refund unless indemnity
satisfactory to Elk has been furnished or until Elk's refund obligation has been finally determined. If any portion of the proceeds delivered from
the sale of gas la paid over by Bk under any order,rule or regulation of the FERC or the provisions of the Acts,Elk is authorized to recover the
amount of the refund applicable to the Interest of each of the undersigned from future payments or, at Elk's election, it may invoice the
undersigned therefor,plus the legal rate of Interest Elk is or may be required to pay in connection with the undersigned's portion of the refund.
Pooled Production:
Should the oil,gas and/or hydrocarbons produced from the herein-described land('Production')be commingled with those produced from one
or more other separately owned tracts of land prior to delivery to the designated carrier(s),the commingled Production sold hereunder shall be
deemed to be the interest of the undersigned In that portion of the total commingled Production delivered which is allocated to the herein-
described land on the basis of meter readings,tank strapping or any other method generally accepted in the industry as an equitable basis for
determining the quantity and quality of Production sold from each separately owned tract. Such formula shall be uniformly applied to all owners
of an Interest in the tracts of land involved. Should the interest of the undersigned in the Production from the herein-described land be unitized
with that produced from one or more other tracts of land,this instrument shall thereafter be deemed to be modified to the extent necessary to
conform with the applicable unitization agreement or plan and all revisions or amendments thereto,but otherwise to remain in full force and
effect as to all other provisions. In such event,the portion of the unitized Production sold hereunder shall be the Interest of the undersigned
In that portion of the total unitized Production delivered which is allocated to the herein described lend and shall be deemed for all purposes
to have been actually produced from said land.
Settlements:
Settlements shall be made monthly by check mailed to the respective parties at the latest address known by Elk,according to the division of
Interest herein specified,less any taxes required by law to be deducted and paid by you applicable to the interest(s)set forth herein. However,
if the amount due any owner is less than Twenty-Five and 00/100($25.00) Dollars per month,Elk,at its option,may defer the making of such
payment until such time as the aggregate amount due exceeds said sum.
Evidence of Title:
The oil and gas lease or leases,and any amendments,ratifications or corrections thereof,under which said Production is derived,are hereby
adopted, ratified, and confirmed as herein and heretofore amended. In the event any dispute or question arises concerning the title to the
Interest of the undersigned In said Production or the proceeds thereof,Elk will be furnished,free of cost,satisfactory abstracts or other evidence
of title upon demand. Until such evidence of title has been furnished and/or such dispute,defect,or question of title Is corrected or removed
to Elk's satisfaction,or until indemnity satisfactory to Elk has been furnished, Elk is authorized to withhold the proceeds of such oil or gas
received and run,without interest. In the event any action or suit is filed in any court affecting the title to the interest of the undersigned In the
herein-described land or the Production therefrom or the proceeds thereof to which the undersigned Is a part,written notice of the filing of such
suit or action shall be immediately furnished Elk by the undersigned,stating the court in which the same is filed and the title of such suit or
action. Elk will not be responsible for any change of ownership in the absence of actual notice and satisfactory proof of receipt of notice and
Interest ownership thereof. Elk shall be indemnified and held harmless by each party to this division order,to the extent of each party's interest
as set forth herein,from any claims,causes of action,challenges to title and judgments against it or as a result of each party's interest or claim
thereto rendered against Elk on account of receiving,purchasing,paying for or transporting Production therefrom credited to such party's interest
pursuant to this division order.
Contingent Interests:
Whether or not any contingency is expressly stated in this instrument,Elk Is hereby relieved of any responsibility for determining when any of
the interests herein shall increase,diminish,terminate,be extinguished or revert to other parties as a result of the completion or discharge of
money or other payments from said interest, or as a result of the expiration of any time or term limitation (either definite or indefinite), and,
unless Elk is also the operator of the property,as a result of an increase or decrease In Production,or as a result of a change In the depth,the
methods or the means of Production,or as result of a change in the allocation of Production affecting the herein described land or any portion
thereof under any agreement or by order of governmental authority,and until Elk receives notice In writing to the contrary,It is hereby authorized
to continue to remit the proceeds of Production without liability pursuant to the division of interest shown herein.
Warranties:
Working Interest Owners and/or Operators,and each of them,by signature to this instrument,certify,guarantee and warrant for Elk's benefit
and that of any pipeline or other carrier designated to run or transport said oil or gas,that all oil or gas tendered hereunder has been and shall
be produced from or lawfully allocated to the herein described land in accordance with all applicable Federal,state and local laws,orders,rules
and regulations. This Instrument may be executed by one or more,but all covenants herein shall be binding upon any party executing same
and upon his heirs,devisees,successors and assigns irrespective of whether other parties have executed this instrument.
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F 1694 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
Ce The undersigned and each of them, represent, guarantee and warrant that they are the legal owners, in the proportions set out below,
of all the oil, gas and hydrocarbons produced from the well(s) described below.
Well Name(s): HSR Fromholz 4-2
Description of Property: N/2 NW/4 Section 2
(Drilling and Spacing Unit) Township 3 North, Range 66 West, 6th P.M.
Weld County, Colorado
Formation(s): Codell & Niobrara
No. of Acres: 80 Acres
Credit To Division of Interest Type
Board of County Commissioners
Weld County .06250000 Al
P. O.Box 758
Greeley, CO 80632
This Oil and Gas Division Order is executed this 17th day of February , 1993 , and effective as of the date of first
Production.
Attest: `*1414'li(4< ,.: � � ��.cc� P.O. Box 758
Witness of Signature Clerk to Bd Name Constance L. arbert Street or Box No.
Chairman 02/22/93
By: °�-(Q,ngzwt 84-6000813 Greeley. CO 80632 _
Witness of Si attire Social Security(or Tax ID) Number City, State, Zip
Witness of Signature Name Street or Box No.
Witness of Signature Social Security (or Tax ID) Number City. State, Zip
Witness of Signature Name Street or Box No.
Witness of Signature Social Security(or Tax ID)Number City, State, Zip
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F 1695 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
q C � v
¶ 170 165 ( �'
AR2322970 OL. ND GAS DIVISION ORDER
ELK EXPLORATION, INC.
3807 Carson
Evans, CO 80620
(303) 330-0814
Each of the undersigned OWNERS guarantees and warrants he is the owner of the oil and gas Interest set out opposite his name on the reverse
side hereof or the proceeds from the sale of oil,gas and hydrocarbons from the property described on the reverse side hereof,and until receipt
of written notice either from Elk Exploration,Inc. (Elk')or from us,the undersigned owner and all other parties executing this Instrument hereby
authorize
sgele9one and to give or successors or
assigns
as set forth on the reverse
into receive and measur
such
her
eof.
sales in accordance with applicable contractual and/or governmental rules
and
The following covenants are parts of this instrument and shall be binding on the undersigned,their successors,legal representatives,heirs and
assigns:
Oil:
Oil sold hereunder shall be delivered f.o.b.to the carrier designated to gather and receive such oil,end shall become Bk's property upon receipt
thereof by the carrier designated by it or by any other purchaser to whom Elk may sell such oil. The term"oil"as used in this division order shall
include all marketable liquid hydrocarbons gathered at the lease. Elk agrees to pay for the oil sold hereunder at the price received by it from
d oil is
the received
by the theposted price in the uan for off of ths same grade Gb a sales contract. Elk i In the same s authorized toroducing o or area on the date reduce the price by any gravity
adjustm nt the designatedn carricar,or or i pose ant to the terms of any app
adjustments end truck,tanker,or pipeline transportation charges as may be charged to it by the purchaser. Should the oil sold hereunder be
resold by Elk to another purchaser accepting delivery thereof at the same point at which it takes title,Bk agrees to pay for such oil based upon
the volume deducted by suchdpurchaser.made
Quality a such nd quantity shall the
be price
teermiin d in ved axo dance with oil,
the conditiouced ns sanpecifietransd ination orthe price possti charges
Gas:
Settlements for gas shall be based on the net proceeds realized by Elk from the sale thereof for all volumes as measured at the meter run(s)
on the spacing unit described on the reverse side hereof in accordance with Elk's gas purchase contracts applicable to the lands after deduction
of a fair and reasonable charge for compressing,fractionation,conditioning,or other process making it merchantable and for transportation if
the gas Is sold off the property. Title to the gas shall pass to Elk or any purchaser,transporter,or gatherer designated by Elk at the meter run(s)
on the spacing unit or at such other place(s) as may be designated in the applicable gas sales contract(s). Where gas is sold subject to
regulation by any governmental authority,the price applicable to such sale approved by such authority shall
be
all othero determine the net
termine th and
proceeds realized from the sale. The term 'gas" shall be deemed to include gas, casinghead gas,gasoline
products recovered In the processing and conditioning of such gas. 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 (FERC') or the provisions of the Natural Gas Act or
Natural Gas Policy Act of 1978 (The 'Acts'), Elk may hold without interest the portion of the proceeds subject to refund unless Indemnity
satisfactory to Elk has been furnished or until Elk's refund obligation has been finally determined. If any portion of the proceeds delivered from
the sale of gee is paid over by Elk under any order,rule or regulation of the FERC or the provisions of the Acts,Elk is authorized to recover the ed from uamount of the refund ndersigned therefor,plus applicable
rate of interest Elk is or may be required to pay Innconnure payments
cti newith thesundt lersignedk's 's portionon, it aof Invoice
refund
Pooled Production:
Should the oil,gas and/or hydrocarbons produced from the herein-described land(Production')be commingled with those produced from one
or more other separately owned tracts of land prior to delivery to the designated carrier(s),the commingled Production sold hereunder shall be
deemed to be the interest of the undersigned in that portion of the total commingled Production delivered which is allocated to the herein-
described land on the basis of meter readings,tank strapping or any other method generally accepted in the industry as an equitable basis for
determining the quantity and quality of Production sold from each separately owned tract. Such formula shall be uniformly applied to all owners
of an Interest In the tracts of land Involved. Should the interest of the undersigned in the Production from the herein-described land be unitized
with that produced from one or more other tracts of land,this instrument shall thereafter be deemed to be modified to the extent necessary to
conform with the applicable unitization agreement or plan and all revisions or amendments thereto,but otherwise to remain in full force and
effect as to all other provisions. In such event,the portion of the unitized Production sold hereunder shall be the interest of the undersigned
in that portion of the total unitized Production delivered which is allocated to the herein described land and shall be deemed for all purposes
to have been actually produced from said land.
Settlements:
Settlements shall be made monthly by check mailed to the respective parties at the latest address known by Elk,according to the division of
interest herein specified,less any taxes required by law to be deducted and paid by you applicable to the interest(s)set forth herein. However,
if payment emount due until such time owneris less
aggregatethan
Twenty-Five
due exceeds se/10 d sum.
($25.00)Dollars per month,Elk,at Its option,may defer the making of such
as a ntEvidence of Title:
The oil and gas lease or leases,and any amendments,ratifications or corrections thereof,under which said Production is derived,are hereby
adopted, ratified, and confirmed as herein and heretofore amended. In the event any dispute or question arises concerning the title to the
interest of the undersigned in said Production or the proceeds thereof,Elk will be furnished,free of cost,satisfactory abstracts or other evidence
of title upon demand. Until such evidence of title has been furnished and/or such dispute,defect,or question of title is corrected or removed
to Elk's satisfaction,or until indemnity satisfactory to Elk has been furnished, Elk is authorized to withhold the proceeds of such oil or gas
received and run,without interest. In the event any action or suit is filed in any court affecting the title to the interest of the undersigned In the
herein-described land or the Production therefrom or the proceeds thereof to which the undersigned is a part,written notice of the filing of such
suit or action shall be Immediately furnished Elk by the undersigned,stating the court in which the same is flied and the title of such suit or
action. Elk will not be responsible for any change of ownership in the absence of actual notice and satisfactory proof of receipt of notice and
interest ownership thereof. Elk shall be indemnified and held harmless by each party to this divison order,to the extent of each party's Interest
as set forth herein,from any claims,causes of action,challenges to title and judgments against it or as a result of each party's interest or claim
thereto rendered against Elk on account of receiving,purchasing,paying for or transporting Production therefrom credited to such party's interest
pursuant to this division order.
Contingent Interests:
Whether or not any contingency is expressly stated in this instrument,Elk is hereby relieved of any responsibility for determining when any of
the interests herein shall increase,diminish,terminate,be extinguished or revert to other parties as e result of the completion or discharge of
money or other payments from said interest, or as a result of the expiration of any time or term limitation (either definite or indefinite),and,
unless Elk Is also the operator of the property,as a result of an increase or decrease in Production,or as a result of a change in the depth,the
methods or the means of Production,or as result of a change in the allocation of Production affecting the herein described land or any portion
under
any
the proceeds of Productionrwithout lliability authority,suant o the d and until Bk ivision on of iives nterest sho in wn here the in.nMary,it is hereby authorized
Warranties:
Working interest Owners and/or Operators,and each of them,by signature to this Instrument,certify,guarantee and warrant for Elk's benefit
and that of any pipeline or other carrier designated to run or transport said oil or gas,that all oil or gas tendered hereunder has been and shall
be produced from or lawfully allocated to the herein described land in accordance with all applicable Federal,state and local laws,orders,rules
and end regulations. This instrument
his heirs,devisees,successors and be ass asted signs irrespective one or of whethe but all r other partiesenants in ha havl be e executed binding
innstrumn entarty executing same
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F 1692 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
9'30185
CoPY
The undersigned and each of them, represent, guarantee and warrant that they are the legal owners, in the proportions set out below,
of all the oil, gas and hydrocarbons produced from the wellls) described below.
Well Name(s): HSR Freeland 3-2
Description of Property: N/2 NW/4 Section 2
[Drilling and Spacing Unit) Township 3 North, Range 66 West, 6th P.M.
Weld County, Colorado
Formation(sl: Codell & Niobrara
No. of Acres: 80 Acres
Credit To Division of Interest Type
Board of County Commissioners
Weld County .06250000 RI
P. O.Box 758
Greeley, CO 80632
This Oil and Gas Division Crder is executed this 17th day of February , 19 93_, and effective as of the date of first
Production.
Attest:
1 /U P.O. Box 758
..5i44..$4:yLx '- ( - .
Witness of Signature NameConstance L. arbert Street or Box No.
Chairman 02/22/93
BY: 1 d-((`o-2,.vw- -v 84-6000813 Greeley, CO 80632
Witness of Si ature Social Security(or Tax ID) Number City, State, Zip
Witness of Signature Name Street or Box No.
Witness of Signature Social Security(or Tax ID)Number City, State, Zip
Witness of Signature Name Street or Box No.
Witness of Signature Social Security(or Tax ID)Number City, State, Zip
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F 1693 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
c.T
9201..65
ELK EXPLORATION, INC.
1801 Broadway 3807 Carson Avenue CORPORATE OFFICES
Suite 1050 Evans, CO 80620 731 Sansome Street
Denver,CO 80202 Fifth Floor
3031292-5560 (303) 330-0614 San Francisco,CA 94111
(telefax 303/292-5642) (telefax 303/330-0639) (415)433-5795
(telefax 415/433-5811)
February 3, 1993
Re: HSR Freeland #3-2 and Fromholz #4-2
N/2 NW/4 Section 2, Township 3 North, Range 66 West,' `
6th P.M. , Weld County, Colorado
Dear Interest Owners:
Enclosed herewith is a Division Order, in duplicate, for each of
the captioned wells in which you own an interest.
For owners signing on behalf of a corporation, the division order
must be signed by a duly authorized officer and attested. The
corporate seal must be affixed and the title of the signing
officers shown.
For owners signing as individual owners, after verifying that your
interest is correct, please sign the originals of each before TWO
witnesses, show your social security and/or tax identification
number, check your address for accuracy, and return the original to
us in the envelope provided. The extra copy of each is for your
records.
If you have any questions or if I can be of assistance to you in
any way, please call me at (303) 330-0614.
Sincerely yours,
ELK EXPLORATION, INC.a
Ann Dubler
9301b5
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