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HomeMy WebLinkAbout930625.tiff RESOLUTION RE: APPROVE 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 a 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: WISE* 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 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. 930625 LE-6a9 cam : ,/y/- DIVISION ORDER - ASSOCIATED NATURAL GAS, INC. PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 19th day of July, A.D. , 1993. alai / BOARD OF COUNTY COMMISSIONERS ATTEST: Q� /�IVJj(1//IA//// WELD COUNTY, COLORADO Weld nty�Clerk to the Board EXCUSED Constance L. arbert, Chairman BY: Deputy Clerl to the Bo W. H. ebster, Pro-Tem APPROVED AS TO FORM: EXCUSED DATE OF SIGNING (AYE) G rge 7c1:1- r ty Attorney tit" K. Hall arbara J. Kirkmey r 930625 AR23Y3632 GAS DIVISION ORDER TO: ASSOCIATED NATURAL GAS, INC. Lease No. 46016 P.O. Box 5493 Denver, CO 80217 Date: July 6, 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 produced and saved from the Miller E #1-6, 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/28E/4 er No. Credit To Division of Interest Decimal 1 29 Weld County 0.28438% RI 0.0028438 40345 Elton N. Miller and 12.21562% RI 0.1221562 Catherine S. Miller 39457 Basin Exploration, Inc. 87.5% 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, sale of Gas 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 Dacano Oil Company as "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 and,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. receives and/or recovers 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 you 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 ,` kat \ 4,/ rifif ATTEST: V [e , 84-6000813 CL IC nT^O BOARD-. W. H. B T , HAIRMAN PRO-T:' 07/21/93 ] p a i Address WELD COUNTY BOARD OF DEPUTY ERR COMMISSIONERS P.O. BOX 758 GREELEY, CO 80632 Address Address B 1394 REC 02343632 07/29/93 16 :31 $0 .00 1/002 MNH:ls F 1486 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO ORIGINAL • 930625 j_sOd9,a 920f25 C4 SECOND: Payments are to be made monthly by checks of Associated Natural Gas, Inc. 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 00/100 Dollars ($25.00) per month, Associated Natural Gas, Inc., at its option, may defer the making of such payment until such time as the aggregate amount due exceeds said sum. The undersigned authorizes Associated Natural Gas, Inc. to withhold from the proceeds of any and all Gas 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. THIRD: In the event of any adverse claim of title or in the event title shall not be satisfactory to Associated Natural Gas, Inc. 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 Associated Natural Gas, Inc. and authorizes Associated Natural Gas, Inc. to withhold payment, without obligation to pay interest on the amount so withheld, until satisfactory indemnity shall be furnished to Associated Natural Gas, Inc. against such adverse claims or any such defects in the title, or until title shall be made satisfactory to Associated Natural Gas, Inc. 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, either before or after severance, to indemnify and save harmless Associated Natural Gas, Inc. against any and all liability for loss, cost, damage, and expense which Associated Natural Gas, Inc. may suffer or incur on account of receiving and paying said party the proceeds derived from the sale of said Gas. Where Associated Natural Gas, Inc. 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 Associated Natural Gas, Inc. harmless of and from all liability for any tax, together with all interest and penalties incident thereto, imposed or assessed against, or paid by it on account of the sum or sums so withheld from payment to said party, and deduct all such taxes, interest and penalties so paid it from any sums owing by it to said party. FOURTH: The undersigned severally agree to notify Associated Natural Gas, Inc. of any change of ownership, and no transfer of interest shall be binding upon Associated Natural Gas, Inc. until transfer order and the recorded instrument evidencing such transfer, or a certified copy thereof,shall be furnished to Associated Natural Gas, Inc. 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 Associated Natural Gas, Inc. Associated Natural Gas, Inc. is 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 Associated Natural Gas, Inc. notice in writing by registered letter addressed to Associated Natural Gas, Inc., P. 0. Box 5493, Denver, Colorado 80217, Attn: 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, Associated Natural Gas, Inc. shall be held harmless in the event of, and is hereby released from, any and all damage or loss which might arise out of any overpayment. FIFTH: 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, Associated Natural Gas, Inc. may hold without interest the portion of the proceeds subject to refund unless indemnity satisfactory to Associated Natural Gas, Inc. has been furnished, or until Associated Natural Gas, Inc's. refund obligation has been finally determined. If any portion of the proceeds derived from the sale of Gas is paid over by Associated Natural Gas, Inc. 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, Associated Natural Gas, Inc. is authorized to recover the amount of the refund applicable to the interest of each of the undersigned from future payments, or at Associated Natural Gas, Inc's. election, it may therefore invoice the undersigned, plus the legal rate of interest Associated Natural Gas, Inc. is or may be required to pay in connection with the undersigned's portion of the refund. SIXTH: 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. If the provisions of this Division Order are in conflict with the provisions with 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. B 1394 REC 02343632 07/29/93 16:31 $0.00 2/002 F 1487 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 9:30625 A6461 ASSOCIPTED Nal.RAL 645, INC. tj INSTRUCTIONS TO ALL INTEREST OWNERS • • THE ENCLOSED GAS DIVISION ORDER OR GAS TRANSFER ORDER.SHOULD • NOT BE ALTERED IN ANY WAY EXCEPT TO CORRECT SPELLING ERRORS, UNLESS ACCOMPANIED BY DOCUMENTARY EVIDENCE TO SUPPORT THE CHANGE. If your name and interest are correctly shown: L Sign your name as shown on the. Gas Division Order or Gas Transfer Order. • 2. Have your signature witnessed by Iwo col:Telcnt witnesses. 3. if your name has clanged due to marriage,or divorce, execute the Gas Division Order or Gas Transfer Order using your prrscnt 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 reilted. 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. Gas Division Orders or Gas 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 Gas DivEion Order or Gas Transfer Order should be returned to: Associated Natural Gas Inc. P. O. Box 5493 Denver, CO 80217 Attention: Division Order Department 10. Should you have any further questions regarding the enclosed Gas Division Order or Gas Transfer Order, please contact your Operator or Associated Natural Gas Inc. at (303) 595-3331. • 11. Please DO NOT DETACH the Exhibit front the Gas Division Order or Gas Transfer Order if one is included. 900 REPUBUC PLAZA • 370 SEVENTEENTH STREET • DENVER COLORADO 80202 • (303)595-3331 • FM(303)595-0480 WAILING ADDRESS: P.O. BOX 5493 • DENVER COLORADO 80217 330625 Hello