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DIVISION ORDER t1/4-7/0
TO THE CALIFORNIA COMPANY DO-1033 CALCO-UPRR-VERVE R. WOODS ET AL
800 The California Company Building UNIT #1
New Orleans 12, Louisiana
1. Each undersigned is the owner of the interest set forth below opposite his signature, in all the oil and gas pro-
duced from the land hereinafter described. The word "oil," when used in this Division Order, shall include also condensate,
distillate and other liquid hydrocarbons. This Division Order shall apply to production from the following described land:
West Half of the Southwest Quarter (W2 of Sw)
of Section 26, Weld County, Colorado.
2. This Division Order shall become effective at 7:00 A. M. First Run 10 and shall remain
in effect until terminated by written notice from the undersigned to you or from you to the undersigned. You are au-
thorized to take or retain possession of all oil and gas produced from said land on and after the effective date, as well as
all such oil and gas in storage on the effective date and not previously disposed of. Such oil and gas may be measured in
accordance with standards generally accepted in the industry or agreed upon by you and any purchaser of such oil or gas.
3. From time to time (a) you may appropriate any such oil or gas to your own use, in which event you shall pay to
the undersigned his share of the market value thereof prevailing for the field where produced on the date of such appro-
priation; or (b) you may sell any such oil or gas to any purchaser, in which event you shall account to the undersigned
for his share of such oil or gas at the price received by you from such purchaser, less the costs of treating, handling, and
transportation to the point of sale, and subject to the terms of any contract of purchase and sale between yon and such
purchaser. Payment may be made by check mailed to each undersigned at his address given below. Payments applicable
to any interest may be withheld until the amounts credited thereto aggregate $1.00 or more. You shall not be required
to account to the undersigned for any oil or gas used for operations on said land; nor for any oil or gas lost or de-
stroyed prior to any such appropriation or sale; nor for any gas flared.
4. Each undersigned hereby warrants title to the interest in the oil and gas hereinbelow credited to him; in case of
any adverse claim of title to such oil or gas, or any part thereof, or to the lands from which such oil or gas is produced,
the undersigned agrees to indemnify you in a manner satisfactory to you against any such adverse claim; and hereby author-
izes you to retain, without interest, the purchase price of such oil or gas until such indemnity shall be furnished or until
the dispute as to ownership shall have been settled. Each undersigned further agrees to indemnify you and hold you
harmless against any and all claims, demands and causes of action of every kind whatsoever and by whomsoever brought
incident to or in any wise growing out of your taking the oil or gas credited to the undersigned hereinbelow, or for
accounting for same or withholding the proceeds thereof, including court costs gild attorneys fees.
5. You are hereby authorized to withhold from the proceeds accruing hereunder to the undersigned the amount of
any severance, production, occupation or other tax levied by or under authority of the laws of the United States, the •
State, or of any legal subdivision thereof, against such oil and gas or against the undersigned for and on account of his
interest in said oil and gas or said land and to pay any and all such taxes with the withheld proceeds.
6. Each undersigned agrees to notify you of any change of ownership affecting his interest. No transfer of interest
shall be binding upon you until the first day of the calendar month next following the month in which the transfer order
and a certified copy of the recorded instrument evidencing such transfer shall have been furnished to you at the address
above given.
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7. This Division Order shall be effective as to, and binding upon,each undersigned as soon as signed by him regardless
of the failure or refusal of any other owner to execute the same. If the provisions of this Division Order are in conflict
with the provisions of any oil and gas lease covering the above described land, the provisions of this Division Order shall
prevail.
WITNESSES: OWNER DIVISION OF INTEREST
BOARD OF COUNTY COMMISSIONERS OF T.'ELD COUNTY
BY .OO144 58 r.i.
Title
Address• Greeley, Colorado
at• 60' strip • 00061424 r.i.
80' strip • .003803 . r.i.
Total .00)11, 158 r.i.
AddreQq•
CC-394-1 (Rev.)
s, - 1•6-
DIVISION ORDER
DO-1033 CALCO-UPRR-VERNE R. WOODS
ET AL UNIT #1
WELD COUNTY, COLORADO
UPRR r/w
Verne R. Woods .41 a TR:26-8-66
60' Strip
SO' Strip
•
LALIF11TIi `1 P ---
800 THE CALIFORNIA COMPANY BLDG. • NEW ORLEANS 12 • LA.
June 27, 1958
In Reply Refer To
H. W. Waguespack, Jr.
DO-1033 CALCO-UPRR-VERNE R. WOODS
ET AL UNIT #1
Weld County, Colorado
Board of County Commissioners
of Weld County
Greeley, Colorado
Gentlemen:
As you know, The California Company completed the Verne R.
Woods et al Unit #1 well in the Pierce Field, Weld County, Colorado.
Under Declaration of Pooling, dated January 10, 1958, which
is recorded in Book 1494 at page 529 of the records of Weld County,
Colorado, the west Half of the Southwest Quarter of Section 26, Town-
ship 8 North, Range 66 West, was pooled insofar and only insofar as
the Lyons sand formation is concerned. The Lyons sand is that sand
found in the Calco-UPRR-Priddy #1 well located in Section 23, Town-
ship 8 North, Range 66 West. Under the Unit as created the following
parcels are included in a drilling unit:
Tract Acrea a Percentage
Union Pacific Railroad right-of-way 1 .3 19.234
Verne R. Woods 61.56 77.207%
Weld County #10 - 60' strip .41 .514%
Weld County #10 - 80' strip 2.143 3.043%
Total 79.85 100.000%
Your attention is invited to the fact that the royalties un-
der the Weld County strips are computed separately. We understand
that Mr. and Mrs. Verne R. Woods are asserting a claim of title to the
.41-acre tract, perhaps on the basis of its abandonment for road pur-
poses by the County. The deed to the .)41-acre tract was acquired from
Jessie E. Fisk to Jeld County on July 12, 1923, by Warranty Deed re-
corded July 13, 1923, in Book 711, page 218, of the records of Weld
County, Colorado. The deed to the .4l-acre tract reads in part as
follows:
"A piece or parcel of land 60 feet in width to be
used for road purposes, (underscoring supplied
the center line of which tract is described as
follows, to-wit: Beginning at a point 294.7 feet
Board of County Commissioners
June 27, 1958
page 2
North of the Southwest corner of Section 26, Town-
ship 8 North, Range 66 West of the 6th P.M., being
on the west line of said section, thence on a 20
curve to the left 456.6 feet to a point on the south
line of said Section 26, and 294.7 feet East of the
Southwest corner of said Section 26".
It is for this reason that we have shown these tracts sep-
arately for payments on this tract may be withheld until title there-
to is resolved or payments will be made to you under warranty with a
right of recovery out of future royalties in the event it is later
determined that Weld County no longer has title to this parcel.
In order that we may be in a position to commence the pay-
ment of royalties under this well we have prepared and enclose our
division order giving effect to the ownership as created by the unit
and giving effect to the agreement as mentioned in this letter. If
the above is in accordance with your understanding, kindly sign the
division order at the space indicated and return to us. The addi-
tional copy is intended for your files.
Yours very truly,
741 7(1. 4,417/1461(/'
iiWW s ds
Encls.
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