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GAS DIVISION, ORDER
TO:. PanEnergy Field Services, Inc.
(fka Associated Natural Gas, Inc.),
PO Box 5493
Denver, CO 80217
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 Schank`#2
& J 35-6
Lease No: 624
Date: March 17, 1997
lease or unit, located in the County of Weld, State of Colorado, more particularly described as follows:
Township 5 North. Range 66 West 6th P.M,
Section 35: S/2 NW/4
Owner No. Credit To
Decimal Interest
SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF
Effective at 8:00 A.M. February 1, 1997 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 January 21, 1985 between Gerrity Oil & Gas as "Seller,"
and PanEnergy Field Services, 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 PanEnergy Field Services, 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
(Enter Mailing Addrjiss)
ATTEST:
Address
Cler
Deput
jmq
/Georga'E. Baxter, Chair
Weld County Board of Commissioners
(03/24/97)
ss ' 915 10th St.
PO Box 758
Greeley, CO 80632
Taxpayer ID Number or
Social Security Number
84-6000813
2540597 B-1598 P-1063 04/01/1997 12:10P PG 1 OF 3 REC DOC
Weld County CO JA Suki Tsukamoto Clerk & Recorder 0.00
CONSENT AGENDA
03/24/97
970740
/ LE0018 -,
vir
SECOND: Payments are to be made monthly by checks of PanEnergy Field Services, 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 dollars ($25.00) per month, PanEnergy Field Services,
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 PanEnergy Field Services, 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
PanEnergy Field Services, 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
PanEnergy Field Services, Inc. and authorizes PanEnergy Field Services, Inc. to withhold payment,
without obligation to pay interest on the amount so withheld, until satisfactory indemnity shall be
furnished to PanEnergy Field Services, Inc. against such adverse claims or any such defects in the title,
or until title shall be made satisfactory to PanEnergy Field Services, 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 PanEnergy Field
Services, Inc. against any and all liability for loss, cost, damage, and expense which PanEnergy Field
Services, Inc. may suffer or incur on account of receiving and paying said party the proceeds derived
from the sale of said Gas. Where PanEnergy Field Services, 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 PanEnergy Field Services, 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 PanEnergy Field Services, Inc. of any change of
ownership, and no transfer of interest shall be binding upon PanEnergy Field Services, Inc. until transfer
order and the recorded instrument evidencing such transfer, or a certified copy thereof, shall be
furnished to PanEnergy Field Services, 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 PanEnergy Field Services, Inc.
PanEnergy Field Services, 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 PanEnergy Field
Services, Inc. notice in writing by registered letter addressed to PanEnergy Field Services, Inc., PO 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 tofurnish transfer order accordingly, and that in the
event such notice shall not be received, PanEnergy Field Services, 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 proyisions':of the Natural
Gas Act or Natural Gas Policy Act of 1978, PanEnergy Field Services, Inc. may hold\ ithout interest
the portion of the proceeds subject to refund unless indemnity satisfactory to PanEnergy. Field Services,
Inc. has been furnished, or until PanEnergy Field Services, Inc.'s refund obligation, has been finally
determined. If any portion of the proceeds derived from the sale of Gas is paid oyer`by PanEnergy, Field
Services, Inc. under any order, rule or regulation of the Federal Energy Regulatory Gommission,or`the
provisions of the Natural Gas Act or Natural Gas Policy Act of 1978, PanEnergy Field Service, Inc. is
authorized to recover the amount of the refund applicable to the interest of each of the undersigned from
future payments, or at PanEnergy Field Services, Inc.'s election, it may therefore invoice the
undersigned, plus the legal rate of interest PanEnergy Field Services, 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. Each undersigned owner ratifies and confirms his oil and gas lease as being in full force
and effect as of the date hereof.
2540597 B-1598 P-1063 04/01/1997 12:10P PG 2 OF 3
Exhibit A
624 SCHANK #2 & J35-6
Owner no. Credit to
Decimal Inflated
Type Interest Interest
111562 BARBARA ANN COX
22031 WELD COUNTY BOARD OF
COMMISSIONERS
49407 BONNIE KUNTZ
111563 CAROL L BRUNZ
111565 CONSTANCE M PEACE
49410 DANIEL C SCHANK
49409 GARY T SCHANK
49411 LINDA SCHANK GLIDWELL TRUST
NORWEST BANK GREELEY TRUSTEE
49408 SANDRA ELDER
29946_1 W G VAN BEBBER AND
YVONNE VAN BEBBER
15587 THOMAS G DOROUGH JR
29962 JANICE D SEARS
29903 THOMAS G DOROUGH TRUST
132641 UNIVERSAL OIL & GAS INC
29954 WALKER MILLER
RI 0.03561920
RI 0.00357190
RI 0.02137140
RI 0.03561920
RI 0.03561830
RI 0.02137130
RI 0.02137130
RI 0.02137130
RI 0.02137140
OI 0.00014290
OI 0.00036910
OI 0.00044650
OI 0.00024610
OI 0.00049210
OI 0.00044650
31152 GERRITY OIL & GAS CORPORATION WI 0.78057150
C/O PATINA OIL & GAS CORP
2540597 B-1598 P-1063 04/01/1997 12:10P PG 3 OF 3
PAGE: 1
COUNTY ATTORNEY
STAFF APPROVAL
This is to affirm the attached
Division Order or Authorization to
Receive Payment for an Oil and
Gas Well has been reviewed by
the County Attorney's staff as to
form, legal description, and
percentage of royalties, if
applicable.
BY:
ounty Attor
DATE: '
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