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Home My WebLink About940725.tiff RESOLUTION RE: APPROVE OIL AND GAS DIVISION ORDER 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 an Oil and Gas Division Order to Elk Exploration, Inc. , 216 16th Street, Suite 1400, Denver, Colorado 80202, and WHEREAS, said Division Order covers land more particularly described as follows: Township 3 North, Range 66 West, 6th P.M. Section 2: SiNW,' 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 Elk Exploration, 216 16th Street, Suite 1400, 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 Division Order. 940725 fin , `::. , k,, _< / DIVISION ORDER - 52, T3N, R66W PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 27th day of July, A.D. , 1994. BOARD OF COUNTY COMMISSIONERS ATTEST: AidifileuetWELD COUNTY,� C?LORADO Weld County Clerk to the Board .f' K/// NO A 4 / W. H. Webster, Chairman BY: 1ik( / / f�ilke�& EXCUSED DATE OF SIGNING (AYE) Deputy Qierk to the Board Dale K. Hall, Pro-Tem APPROVED AS TO FORM: � it �- 71,e1. '. � ,Ki"Tge . Baxter Ill:gounty Con 7 Ataome Coffin nce L. Harbert EXCUSED Barbara J. Kirkmeyer 940725 AR.241n2314 OIL AND GAS DIVISION ORDER ELK EXPLORATION, INC. PROPERTY NO. 216 16711 Street, Suite 1400 Denver, CO 80202 (303) 572-1400 Each of the undersigned OWNERS guarantees end 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 sole of oil, gas and hydrocarbons from the property described on the reverse side hereof, end until receipt of written notice either from Elk Exploration, Inc., ("Elk")or from us, the undersigned owner and ell other parties executing this instrument hereby authorize Elk,its successors or assigns to receive and measure such sales in accordance with applicable contractual andlor governmental rules and regulations and to give credit as sot forth on the reverse side hereof. The following covenants ere parts of this instrument end shall be binding on the undersigned, their successors, legal representatives,heirs end assigns: Oil: Oil sold hereunder shall be delivered f.o.b. to the carrier designated to gather and receive such oil, and shell become Elk'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 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 dote said oil is received by the designated carrier, 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 mode by such purchaser and at the price received by Elk for such oil, reduced by any transportation or gravity charges deducted by such purchaser. Quality and quantity shall be determined in accordance with the conditions specified in the price posting. Gas: Settlements for gee 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 lair 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 runts) on the spacing unit or at such other placate)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 shell be used to determine the net proceeds realized from the sale. The term "gas" shall be deemed to include gee, caeinghead gas, gasoline and ell other hydrocarbons and products recovered in the processing and conditioning of such gas. II 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 tinnily determined. If any portion of the proceeds delivered from the sale of gas 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 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 In or may be required to pay in connection with the p undersigned's portion of the refund. U • O p4 Pooled Production: Should the oil, gee 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 (n herein-described land on the basis of meter readings, tank strapping or any other method generally accepted in the industry as en equitable basis for determining the quantity and quality of Production sold from each separately owned tract. Such formula shall be uniformly applied tJ to nil owners of an internal 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 H extent necessary to conform with the applicable unitization agreement or plan and all revisions or amendments thereto, but otherwise to r-Iremain in full force and effect as to all other provisions. In such event, the portion of the unitized Production sold hereunder shell be the interest of the undersigned in that portion of the total unitized Production delivered which is allocated to the herein described land end shell 0.i be deemed for all purposes to have been actually produced from said land. (r1 ea ox N H Settlements: Settlements shall be made monthly by check mailed to the respective parties at the latest address known by Elk, according to the division U of interest herein specified, less any taxes required by law to be deducted and paid by you applicable to the Interest(e) set forth herein. Cn However, if the amount due any owner is lass than Twenty-Five end 00/100 (925.00) Dollars per month, Elk, et Its option, may defer the p p making of such payment until such time as the aggregate amount due exceeds said sum, c U O �7 mEvidence of Tide: cV 3in The oil and gas lease or leases, end any amendments,ratifications or corrections thereof,under which said Production is derived,era hereby .II 0i adopted, ratified, end confirmed as herein and heretofore amended. In the event any dispute or question arises concerning the title to the p, is interest of the undersigned in said Production or the proceeds thereof, Elk will be furnished, free of cost, satisfactory abstracts or other , , t' evidence of title upon demand. Until such evidence of title hes been furnished andlor such dispute,defect, or question of title is corrected to k 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 le filed In any court affecting the title to the interest of the m undersigned in the herein-described land or the Production therefrom or the proceeds thereof to which the undersigned is a pert,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 end the ▪ title of such suit or action. Elk will not be responsible for any change of ownership in the absence of actual notice end satisfactory proof en of receipt of notice and interest ownership thereof. Elk shall be indemnified and held harmless by each party to this division order, to the .�-1 extent of each party's interest as sot forth herein,from any claims,causes of action,challenges to title end 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 N7E therefrom credited to such party's interest pursuant to this division order. 940725 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. 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 welllsl described below. Well Name(s): HSR GRIFFITH #5-2 Description of Property: S/2NW/4 SECTION 2 [Drilling and Spacing Unit) TOWNSHIP 3 NORTH, RANGE 66 WEST WELD COUNTY, COLORADO Formation(s): Codell & Niobrara No. of Acres: 80 Acres Credit To Division of Interest Type SEE EXHIBIT 'A' ATTACHED HERETO AND MADE A PART HEREOF: • This 0. and Gas Divis' n Orde is,executed this 27thday of July , 1994 , and effective as of the date of first Production. / / TTEST • � / (/).211 08/01/94 P.O. Box 758 Witness of e " - Name W. H. Webster, C airman Street or Box No. Wed Co k 'to. BQard Weld County Board of Commissioners BY: / : 1 84-6000813 Greeley. CO 80612 fitness of Signs j , Social Security(or Tax ID) Number City, State, Zip Deputy Clerk to Board 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 2401234 B-1454 P-162 08/05/94 02:03P PG 2 OF 3 940725 ELK EXPLORATION, INC. EXHIBIT'A' DATED JUNE 29, 1994 1ISR GRIFFITH #5.2 TOWNSHIP 3 NORTH, RANGE 66 WEST SECTION 2: S/2NW/4 WELD COUNTY, COLORADO CODELUNIOBRARA FORMATION NAME INTEREST TYPE Charles Graznak .03125000 RI Audrey E. Graznak 205 Olive Lane Platteville, CO 80651 Calvin A. Lorenz .01041667 RI 3650 B Parkmoor Village Drive Colorado Springs, CO 80917 Velda A. Hart .01041666 RI 622 N. E. 41st Terrace Kansas City, MO 64116 BWAB Incorporated .00776042 RI 475 17th Street, #1600 Denver, CO 80202 The Esperanza Corporation .00218750 RI 718 17th Street, #808 Denver, CO 80202 George W. Clay IV .00009115 RI Dana D. Clay 2713 FM 368 South Iowa Park, TX 76367 WYOTEX Oil Company .00006510 RI 5877 W. Asbury Place Lakewood, CO 80227 • Old West Tours .00006510 RI n~i P. O. Box 2437 a Gillette, WY 82717 High Plains Associates, Inc. .00003906 RI 1600 Broadway, #1565 Denver, CO 80202 ty N John C. Wallace .00010417 RI N 200 Pine Avenue#620 Long Beach, CA 90802 co 0 Thomas C. Wallace .00010417 RI e 1265 S. High Street r, Denver, CO 80209 0 - Weld County Board of Commissioners .06250000 RI 915 10th Streeto 9b Greeley, CO 80632 u� w Amoco Production Company .03366000 ORI P. O. Box 591 Tulsa, OK 74102-0591 Amoco Production Company .00875000 WI P. O. Box 591 Tulsa, OK 74102-0591 Platteville Limited Partnership .42462090 WI One Maritime Plaza, 15th Floor San Francisco, CA 94111 HS Resources, Inc. .40796910 WI One Maritime Plaza, 15th Floor San Francisco, CA 94111 TOTAL 1.00000000 9407?5 Hello