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Home My WebLink About971111.tiff83r) OIL AND GAS DIVISION ORDER FFS RESOURCES, INC. 1999 Broadway, Suite 3600 Denver, CO 80202 (303) 296-3600 PROPERTY NO. 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 HS Resources, Inc., ("HS") or from us, the undersigned owner and all other parties executing this instrument hereby authorize HS, 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 HS's property upon receipt thereof by the carrier designated by it or by any other purchaser to whom HS may sell such oil. The term "oil" as used in this division order shall include all marketable liquid hydrocarbons gathered at the lease. HS agrees to pay for the oil spld'hereunder at the price received by it from the purchaser(s), the posted price in the area for oil of the same gratie',and'grav((y in the same producing field or area on the date said oil is received by the designated carrier, or purilianl?to,the terinS of pny applicable sales contract. HS is authorized to reduce the price by any gravity adjustments' and trunk,tankcar,".or pipeline transportation charges as may be charged to it by the purchaser. Should the ojl sold fi'ereunder be resold by HS to another purchaser accepting delivery thereof at the same point at which ittakes ti I' HST gr to pay forisuch oil based upon the volume computation made by such purchaser and at the price‘receiv b}1. fS (6"such'oiit, reduced by any transportation or gravity charges deducted by such purchaser.. Ouality and q ,ntitrshalffie.cfeterined in accordance with the conditions specified in the price posting. Gas: Settlements for gas shall be based on the net proceeds realized by HS 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 HS'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 HS or any purchaser, transporter, or gatherer designated by HS 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"), HS may hold without interest the portion of the proceeds subject to refund unless indemnity satisfactory to HS has been furnished or until HS's refund obligation has been finally determined. If any portion of the proceeds delivered from the sale of gas is paid over by HS under any order, rule or regulation of the FERC or the provisions of the Acts, HS is authorized to recover the amount of the refund applicable to the interest of each of the undersigned from future payments or, at HS's election, it may invoice the undersigned therefor, plus the legal rate of interest HS 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 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 HS, 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, HS, 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, and the undersigned OWNER(S) do hereby lease, let and demise to HS the land contained within the spacing unit designated below under the identical terms and provisions of the lease heretofore executed by OWNER(S) or its predecessor in interest. In the event any dispute or question arises concerning the title to the interest of the undersigned in said Production or the proceeds thereof, HS 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 HS's satisfaction, or until indemnity satisfactory to HS has been furnished, HS 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 HS by 2546837 B-1604 P-813 05/06/1997 03:41P PG 1 OF 3 REC (II:transfer% Weld County CO JA Suki Tsukamoto Clerk & Recorder 0.00 D0C /-'O/4/ 971111 DATED CORRECTION DATE APRIL 23, 1997 WELL NUMBER 941460 the undersigned, stating the court in which the same is filed and the title of such suit or action. HS 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. HS 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 HS 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, HS 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 HS 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 HS 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 HS'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 well(s) described below. Well Name(s): HSR SELBY #1-32 Description of Property: [Drilling and Spacing Unit] Formation(s): No. of Acres: E/2NE/4 SECTION 32 TOWNSHIP 5 NORTH, RANGE 67 WEST WELD COUNTY, COLORADO Codell/Niobrara 80 Acres Credit To Division of Interest Type SEE EXHIBIT 'A' ATTACHED HERETO AND MADE A PART HEREOF: This Oil and Gas Division Order is e Production. ATTEST: the Witness of Signature Witness of Signature Witness of Signature Witness of Signature Name 5th day of May , 19 97, and effective as of the date of first orge E. Baxter f eld County Board ommissioners 84-6000813 PO Box 758 Street or Box No. Greeley, CO 80632 city, State, Zip Street or Box No. Social Security (or Tax ID) Number City, State, Zip Name Street or Box No. Social Security (or Tax ID) Number City, State, Zip 2546837 B-1604 P-813 05/06/1997 03:41P PG 2 OF 3 (R. Uans(e,VancNormsWoform 2) CONSENT AGENDA 05/05/97 971111 LE0191 HS RESOURCES, INC. CORRECTION EXHIBIT 'A' DATED APRIL 23, 1997 HSR SELBY #1-32 TOWNSHIP 5 NORTH, RANGE 67 WEST SECTION 32: E/2NE/4 WELD COUNTY, COLORADO CODELL/NIOBRARA FORMATION NAME INTEREST Robert F. Selby and Marjorie Ann Jacobs, Joint Trustees of the Margaret E. Selby Trust 24542 WCR 15-1/2 Johnstown, CO 80534 (.50 x .125 x 75.87/80.00) Helen I. Betz 3500 Carlton Avenue #P47 Ft. Collins, CO 80525 (.50 x .125 x 75.87/80.00) Board of County Commissioners Weld County Centennial Center 915 10th Street Greeley, CO 80631 (1.0 x .125 x .751/80.00) Great Western Railway Company P. O. Box 537 Loveland, CO 80537 (1.0 x .125 x 3.379/80.00) HS Resources, Inc. One Maritime Plaza, 15th Floor San Francisco, CA 94111 (1.0 x .875 x 80.00/80.00) TOTAL 1.00000000 .05927344 TYPE RI .05927344 RI .00117343 RI .00527969 RI .87500000 WI 2546837 B-1604 P-813 05/06/1997 03:41P PG 3 OF 3 NOTE: THIS EXHIBIT IS PART OF THE DIVISION ORDER AND IS NOT TO BE REMOVED. 971111 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. 7 BY: coounty it•rney} DATE: 971111 Atrrie WiliDe COLORADO Mary K. Halsey H.S. Resources, Inc. 1999 Broadway, Suite 3600 Denver, CO 80202 Dear Ms. Halsey: WELD COUNTY ATTORNEY'S OFFICE PHONE: (970) 356-4000, EXT. 4391 FAX: (970) 352-0242 915 TENTH STREET P.O. Box 1948 GREELEY, COLORADO 80632 April21, 1997 RE: H.S.R. Selby Nos. 1-32 and 8-32 Enclosed are copies of two Division Orders sent to Weld County in January, 1997, and relating the East Half Northeast Quarter (E%NE'/) of Section 32, Township 5 North, Range 67 West of the 6th P.M., Weld County, Colorado. The first Division Order is for the H.S.R. Selby No. 1-32 well. The second is for the H.S.R. Selby No. 8-32 well. Also enclosed is a copy of a Resolution and Lease between Weld County and H.S. Resources for property located in the Northeast Quarter (NE%) of Section 32-5-67. I believe that each of the enclosed Division Orders has an incorrect figure on their Corrected Exhibits for the royalty interest attributed to the Board of County Commissioners of Weld County. My math shows: 1.0 x .125 x 1.818/80 = .00284062. I see that each of these Division Orders have the royalty interest for Weld County set at .00117343. Thus, the Corrected Exhibits to the Division Orders need to be corrected. I will be happy to resubmit the Division Orders to the Chairman of the Board of County Commissioners for his approval once the Corrected Exhibits and Division Orders are sent to my office. You may mail the Division Orders directly to me at: 915 Tenth Street, P.O. Box 1948, Greeley, Colorado 80632. If you should have any questions or comments regarding this letter or the enclosed, please feel free to call me at (970) 356-4000, extension 4390 ker y Attorney BTB/db:let/Halsey Enclosures pc: Clerk to the Board 971111 HS RESOURCES, INC. 1999 BROADWAY, SUITE 3600 DENVER, COLORADO 80202 (303) 296-3600 FACSIMILE (303) 296-3601 April 24, 1997 oard of County Commissioners Weld County Centennial Center 915 101h Street Greeley, CO 80631 RE: HSR Selby #1-32, HSR Selby #8-32 Township 5 North. Range 67 West Section 32: E/2NE/4 Weld County, Colorado Great Western Railway Company P. O. Box 537 Loveland, CO 80537 Enclosed please find a set of corrected Division Orders for the referenced wells. Our office was contacted by Bruce Barker, Weld County Commissioners. He said that Exhibit "A" was incorrect. The interest could not be calculated correctly from the acreage as listed on Exhibit "A". The interest for each of you was calculated based on the correct acreage, however, the acreage listed was for other Selby wells and not for the HSR Selby #1-31 and #8-32. We have corrected the acreage listed for each of you and have prepared new Division Orders. Please review the Division Orders and if they meet with your approval, execute them, have your signatures witnessed by two individuals, include Tax ID Numbers and return the originals to our office. The Division Orders marked "COPY" are for your records. Thank you for your attention to this matter. Please contact our office if you have any questions concerning this correction. mkh Enclosures Sincerely, HS RESOURCES, INC. MARY K IIALSEY Division Order Analyst 9'1111 ,.O Hello