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• OIL DIVISION ORDER • .
•
TO: ASSOCIATED TRANSPORT&TRADING COMPANY Lease No.52762
P.O.Box 5493 !123
Denver,CO 80217 dpi 05123-13 7 Date:March 15,1996
The undersigned,and each of us,guarantee and warrant that we are the legal owners of our respective interest,in the proportions
hereinafter stated,in all oil,condensate and/or other hydrocarbons produced and saved from the Gatewood1l-1 lease,located in Weld
County,State of Colorado,described as follows:
Township 5 North.Range 65 West
Section 1: NE/4 SW/4
Effective at 8:00 A.M.March 1,1996 and until further written notice,you are authorized to receive all such oil production,for your own purchase or for resale,
to receive payment therefore,to give credit for all proceeds derived therefrom and pay therefor as follows:
Owner No. Credit To- Division of Interest Decimal
FOR DIVISION OF INTEREST SEE EXHIBIT"A"ATTACHED HERETO AND MADE OF PART HEREOF
herein by reference and the undersigned agree that each shall be deemed and considered
All covenants appearing on the reverse side hereof are incorporated gn gre
PP g
an essential part of this division order in like manner and with the same effect as if printed above our signatures.
' v ?Errs'�zt• 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
s
ses Owners Sign Below Taxpayer LD.Number or
test
a (Enter Mailing Address) Social Security Number
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O Meg,
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BARBARA J. KIRKMEYER, CHAIR
BY: � .�L.) WFT.D comm BOARD OF COMMTSSTONERS 84-6000813
dte +
Address PO BOX 758
GREELEY, CO 80632
MARCH 25, 1996
Address
QR1 C I_N_A_L_
Lls 960667
CONSENT AGENDA 2483121 B-1539 P-878 03/28/96 03:51P PG 1 OF 3 RgC ]X)C
03/25/96 Weld County CO Clerk & Recorder
LE0128 0.00
The following covenants are also part of this division order and shall be binding upon the above signed and upon his or her
successors,legal representatives and assigns.
FIRST: The word "oil"as used herein is hereby declared to include, but is not limited to, condensate and all marketable liquid
hydrocarbons produced and saved hereunder. All oil received and purchased hereunder shall be merchantable oil and shall become
your property as soon as the same is received into your custody or that of any carrier designated by you. You are not expected to
receive oil in definite quantities,nor for fixed periods, nor to provide storage.
SECOND: The oil received and purchased hereunder shall be delivered f.o.b.to any carrier designated by you which gathers and
receives said oil,and you agree to pay for such oil to the above signed according to the division of interests herein specified at the
price agreed upon between you and the lease operator.
THIRD: Quantities of oil purchased hereunder shall be determined by the method of measurement and computation employed by
you or the Agent designated by you to receive such oil including but not by way of limitation,the gauging of storage tanks using
regularly compiled tank tables,the use of certified truck gauges,and the use of meters or any other reasonably accurate method of
measurement and computation. You shall correct the volume and gravity to a temperature of 60 degrees Fahrenheit and you shall
deduct from such corrected volume the full percentages of basic sediment,water and other impurities as shown by your test. You
may refuse to receive any oil not considered merchantable to you.
FOURTH: Payments shall be made monthly for oil received and purchased during the proceeding month,by your checks delivered
or mailed to the above signed at the address above stated,provided that if,at any time,the monthly payment due the above signed
shall be less than Twenty-Five Dollars($25.00),you may defer such payment,without interest,until the amount payable to the above
signed equals or exceeds the sum of Twenty-Five Dollars($25.00), in which event, payment shall be made at the next regular
settlement date. You are hereby authorized to withhold from the proceeds of any and all runs made hereunder the above signed's
proportionate share of any tax levied and assessed by any governmental authority on the oil received and purchased hereunder and
to pay the same.
FIFTH: The above signed agrees to furnish evidence of title satisfactory to you. Until such evidence is furnished or in the event
of any adverse claim,oil related lien or dispute at any time concerning title in the above described real property or the oil produced
therefrom,you may withhold payment for oil accruing to the interest or interests affected thereby until you are indemnified to your
satisfaction or until such adverse claim, lien or dispute shall have been fully settled,without liability for interest in either case. If
suit is filed affecting the interest of the above signed,written notice thereof shall be given you,at the above address by the above
signed,together with a certified copy of the complaint or petition filed. If you are made a party to such proceedings,the above signed
agrees to indemnify you against any judgment rendered therein and to reimburse you for any costs,attorney's fees or other expenses
incurred in connection therewith.
SIXTH: You will not be responsible for any change of ownership in the absence of actual notice and satisfactory proof thereof.
Each signer agrees to notify you in writing of any change in his or her ownership and agrees that any transfer, assignment, or
conveyance of any of his or her interest however accomplished,shall be made subject to the division order and effective at 8:00 A.M.
on the first day of the calendar month following the receipt of said notice by you. In the event said written notice is not received by
you,you shall be held harmless for error resulting in over or underpayment,or wrong payment of any such sum or sums. Should
adjustments be necessary you shall have rights to set off any and all individual or joint liabilities the above signed has with you,
including but not limited to proceeds from this and other lease interests owned by the above signed.
SEVENTH: If the above signed is a working interest owner and/or operator,he or she guarantees or warrants that all oil tendered
hereunder has been or will be produced and delivered in compliance with all applicable federal, state and local laws,orders,rules
and regulations.
EIGHTH: This order shall bind each interest owner as soon as signed by him or her,whether or not signed by any other owner.
All provisions herein contained shall apply to each signer hereof separately and not jointly. This order may be executed in
counterparts,all of which together shall constitute one division order. No termination of this order shall be effective without
giving thirty (30)days prior written notice. In consideration of the purchase of oil hereunder, consent is given you and any
pipeline company which you may cause to connect with the wells and tanks on said land, to disconnect and remove such
pipelines,in case of termination by either you or the above signed of purchases under this division order.
2483121 B-1539 P-878 03/28/96 03:51P PG 2 OF 3
Exhibit A
52762 GATEWOOD 11-1
Decimal Inflated
Owner no. Credit to Type Interest Interest
22031 WELD COUNTY BOARD OF RI 0 . 00117580
COMMISSIONERS
95781 COSTILLA PETROLEUM CORP FAO RI 0 . 06129298
COSTILLA ENERGY LLC
95782 COSTILLA PETROLEUM CORP RI 0 . 00061912
25831 NOFFSINGER MANUFACTURING CO RI 0 . 06191210
30402 ALARADO RESOURCES LIMITED OI 0 . 00619120
30453 TED E AMSBAUGH OI 0 . 00448860
33099 JEANNE A ANDERSON OI 0 . 00024760
30437 BARRY L SNYDER OI 0 . 00448860
33110 BUDDY BAKER OI 0 . 00247650
30470 CHRISTINA L SNYDER OI 0 . 00092870
30488 LAURENCE N WATTS OI 0 . 00092870
4448 MERRION OIL & GAS CORPORATION OI 0 . 02476480
47010 GARY SANDLIN OI 0 . 00619120
2938 SNYDER OIL CORPORATION OI 0 . 00758420
30445 STEPHEN B EVANS OI 0 . 00448860
33081 VICKI L WAMBOLT OI 0 . 00037150
311523 F/A/O GERRITY OIL & GAS CORP WI 0 .40654400
_
Pc VALLEY OPERATING INC
15737 VALLEY OPERATING, INC. WI 0 .40530580
PAGE: 2
2483121 B-1539 P-878 03/28/96 03:51P PG 3 OF 3
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 Attorneys staff as to
form, legal description, and
percentage of royalties, if
applicable.
nty Attorney/ ��___
DATE i l(,
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