HomeMy WebLinkAbout951065.tiffDIVISION ORDER
AK2436264 (COMBINED OIL AND GAS)
TO: R.P. KAUFFMAN COMPANY, INC. ("KPK")
1675 Broadway, Suite 1970
Denver, Colorado 80202
ATTN: Division Order Dept.
Division Order No. /LC-lc/DX-NO
Date
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 Oil and Gas (as more individually defined
herein) produced and saved from the SPINDLE 4 SOUTH FACILITY located in the
County of Weld, State of Colorado more particularly described as follows:
FREDERICK UNIT Cit
SW/4NW/4-31-T2N-R67W
CREDIT
NET REVENUE
INTEREST
WORKING
INTEREST
GARY B. PROPP
WEI.D COUNTY
ANTHONY A. HEPP
THELMA L. JONES
RAY K. DAVIS AND
MARY F. DAVIS, JT TENANTS
HAROLD R. BURGESS
GILROY A. FRAGALE
JOE A. SARMIENTO
ROBERT A. BARNES
RUDY A. MORENO
ARILD DITLEV-SIMONSEN
ARILD DITLEV-SIMONSEN
INGERID DITLEV-SIMONSEN
INGERID DITLEV-SIMONSEN
.00078080 RI
.00528810 RI
.00340720 RI
.01018600 RI
.00881960 RI
.00063880 RI
.00063880 RI
.00127770 RI
.00063870 RI
.00127770 RI
.04938590 RI
.10285340 WI
.04938590 RI
.10285340 WI
.0100795 WI
.1175468 WI
.1175468 WI
NORTH AMERICAN RESOURCES INC. .04409820 WI .0503975 WI
LUCIANO G. RUSCITTI .00145510 RI
K.P. KAUFFMAN CO., INC.
.61701470 WI .7044294 WI
Effective 8:00 a.m. March 1. 1995, and until further notice, you are hereby
authorized to take or retain possession of all Oil and 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 thereof 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 8, 1991, between KPK 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.
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As used in this Division Order, the term "Gas" shall be deemed to include
casinghead gas, gasoline and all products which APR may receive and/or recover
by processing from Gas produced from wells on said property(ies).
SECOND: The word "Oil" as used herein shall include, but is not limited to,
condensate and all marketable liquid hydrocarbons produced and saved hereunder,
but excluding that recovered from processing of Gas. All oil received and
purchased hereunder shall be merchantable Oil and shall become the property of
APR as soon as the same is received into its custody or that of any carrier it
designates. APR shall not be expected to receive Oil in definite quantities, nor
for fixed periods, nor to provide storage.
THIRD: The Oil received and purchased hereunder shall be delivered f.o.b. to any
carrier EPA designates which gathers and receives said Oil and APR agrees to pay
for such Oil to the undersigned according to the division of interests herein
specified at the price agreed upon between EPA and the lease operator.
FOURTH: Quantities of Oil purchased hereunder shall be determined by the method
of measurement and computation employed by APR or APR's agent designated 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 tank gauges, and
the use of meters or any other reasonably accurate method of measurement and
computation. APR shall correct the volume and gravity to a temperature of 60°
Fahrenheit and shall deduct from such corrected volume the full percentages of
basic sediment, water and other impurities as shown by its test. EPA may refuse
to receive any Oil it considers to be not merchantable.
FIFTH: Payments are to be made monthly by checks of APR for Oil and Gas to be
delivered or mailed to the parties thereto entitled at the addresses above given,
provided that if the amount due to any owner is less than Twenty-five and 00/100
Dollars ($25.00) per month, EPA at its option, may defer the making of such
payment until such time as the aggregate amount due exceeds said sum. The
undersigned authorize APR to withhold from the proceeds of any and all Gas and
Oil 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.
SIXTH: In the event of any adverse claim of title or in the event title shall
not be satisfactory to APR 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 APR and authorizes same to withhold payment
without obligation to pay interest on the amount so withheld, until satisfactory
indemnity shall be furnished to APR. 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 Oil and/or Gas, either before or after severance,
to indemnify and save harmless APR against any and all liability for loss, cost,
damage and expense which EPA may suffer or incur on account of receiving and
paying said party the proceeds derived from the sale of said Oil and/or Gas.
Where APR, 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 EPA harmless of and from all liability for any tax,
together with all interest and penalties incident thereto, imposed d
against or paid by them on account of the sum or sums so withheld from payment
to said party and deduct all such taxes, interest and penalties so paid by them
from any sums owing by them to said party.
If suit is filed affecting the interest of the undersigned, written notice
thereof shall be given APR at the above address by the undersigned, together with
a certified copy of the complaint or petition filed. If EPA is made a party to
such proceedings, the undersigned agrees to indemnify same against any judgment
rendered therein and to reimburse EPA•for any costs, attorney's fees or other
expenses incurred in connection thereiiith.
SEVENTH: The undersigned severally agree to notify APR of any change of
ownership and no transfer of interest shall be binding upon APR until transfer
order and the recorded instrument evidencing such transfer, or a certified copy
thereof, shall be furnished to EPA. 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 APR. APR 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 APR notice in
writing by registered letter addressed to APR at the above address, directed to
the Division Order Department, when any such money or other payments have been
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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, RPR shall
be held harmless in the event of, and are hereby released from any and all damage
or loss which might arise out of overpayment. Should adjustments be necessary,
EPA shall have rights (but no duty) to set off any and all individual or joint
liabilities the undersigned has with the same, including but not limited to
proceeds from this and other lease interests owned by the undersigned.
EIGHTH: 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, RPR may hold without interest the portion of the proceeds subject to refund
unless indemnity satisfactory to APR has been furnished, or until RPA's refund
obligation has been finally determined. If any portion of the proceeds derived
from the sale of Gas is paid over by EPA 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, RPR is authorized to recover the amount of the
refund applicable to the interest of each of the undersigned from future payments
(Oil and Gas) or at APR's election, it may invoice the undersigned therefor, plus
the legal rate of interest RPE is or may be required to pay in connection with
undersigned's portion of the refund.
NINTH: If the undersigned is a working interest owner and/or operator, he or she
guarantees and warrants that all Gas and 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.
TENTH: 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. No termination of this
Division Order shall be effective without giving thirty (30) days prior written
notice. If the provisions of this Division Order are in conflict with the
provisions of 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. In consideration of the purchase of Oil and Gas hereunder,
consent is given APR and any pipeline company which same may cause to connect
with the wells and tanks on said land, to disconnect and remove such pipelines,
in case of termination by either RPR or the undersigned of any purchases under
this Division Order.
In the event of conflict between the provisions of this Division Order and
applicable law or regulations, the provisions of this Division Order shall be
deemed modified so as to comply with such law or regulation.
The undersigned expressly waive any claim against APR for any and all amounts
which may be due us from others for production prior to the effective date
hereof.
SIGNATURE OF
WITNESSES
OWNERS SIGN BELOW TAX PAYER ID 9 OR
(ENTER MAILING ADD SS) SOCIAL SECURITY 9
Dale K. Hall,
Weld County Bd.
ADDRESS
PO Box 758
84-6000813
of Commissioners
(5/10/95)
Greeley, CO 80632
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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, nd
percentage of roy 'es, if
applicable.
BY:
unty Attorney
951065
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