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GAS DIVISION ORDER .
TO : NORTH AMERICAN RESOURCES COMPANY
EFFECTIVE: Date of First Production
The below named parties, hereinafter designated as "OWNERS" ,
and each of them by their signatures hereto affixed, do hereby
represent, certify and warrant that they are the legal owners in the
proportions set out below of all the gas and associated liquid
hydrocarbons produced from or allocated to the well , acreage or
communitized area more particularly described as follows :
Township 2 North, Range 68 West
Section 23 : W2
Elmquist 11-23 (J) Well CO. 5698
as to the J Sand Formation
in Weld County, State of Colorado, and are entitled to receive payments
for gas taken or sold off of the premises , and until further notice
credit for such gas so taken or sold from said premises shall be given
as directed below:
CREDIT TO DIVISION OF INTEREST MAILING ADDRESS
SEE EXHIBIT " A" ATTACHED
NORTH AMERICAN RESOURCES COMPANY, hereinafter called "OPERATOR" may
sell and deliver to any purchaser and then remit to the OWNERS as set
out herein for all gas and associated liquid hydrocarbons , including
condensate produced, saved and sold from said premises as follows :
1 . Payment for gas shall be paid to the OWNERS according
to the division of interest shown above . Payment therefor may be made
monthly by the OPERATOR mailing to such parties its check therefor at
the post office address stated, on or before thirty (30) days after
receipt by OPERATOR of sufficient information upon which settlement
therefor may be made . If the amount accruing to the interest of any
Owner herein is less than Twenty Five Dollars ($25 . 00) in any one
month, the proceeds of such runs may, at the option of OPERATOR, be
accumulated and paid without interest on an annual basis , payment to be
made in December of each year.
If a refund of a portion of the proceeds derived from
the sale of gas may be required under any order, rule or regulation of
the Federal Power Commission or other governmental agency having
jurisdiction thereof , or the provisions of the "Natural Gas Act" , the
price for gas shall be calculated on the basis of the unsuspended or
unconditional certificated price for such -7as . ^PERATOR may
without interest , the portion of proceeds subject to possible refund
until the amount of the refund, if any, is determined by final
unappealable order of the Federal Power Commission or such other
governmental agency. OPERATOR is also expressly authorized and given
the right , in its sole discretion, to withhold or deduct from the share
of any disbursement , directed hereunder attributable to any Owner, a
sufficient sum to pay all ad valorem taxes , applicable State and Local
taxes , Resource Indemnify Fund Tax and any other tax (excluding income
taxes) that will become due ar.d payable by any Owner, and to pay such
taxes and render a full account of any such taxes paid by it to any
)I Owner for whom such taxes have been paid.
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2 . Settlement for the above interests shall be made on the
basis of the net proceeds received from the sale of gas based upon the
volume computations made or accepted by the purchasers thereof . "Net
Proceeds" means the amount received from such sale less transportation,
dehydration, separating, treating, processing and compression charges
and other costs or expenses, if any. OPERATOR may sell gas to any
purchaser of its choice at such quantities and price as it shall deem
prudent . However, in the event the sales price for gas is established
or regulated by the Federal Power Commission, or other governmental
authority, the price applicable to such sales for the purpose of
calculating net proceeds shall be the unsuspended or unconditional
certificated price for such gas determined by final unappealable order
of the Federal Power Commission or such other governmental agency.
3 . Payments so made are to be in full settlement for such
gas so taken or sold from said premises .
4 . OWNERS severally shall notify OPERATOR of any change of
ownership, and no transfer of interest shall be binding upon OPERATOR
until a request to make such transfer and the recorded instrument
evidencing such transfer, or a certified copy thereof , shall be
furnished to OPERATOR. Transfers of interest shall be made effective
not earlier than the first day of the calendar month in which notice is
received by OPERATOR. OPERATOR is relieved hereby of any responsibility
for determining if and when any of the interests set forth above shall
or should revert to or be owned by other parties as the result of the
completion or discharge of money or other payments from said interests
and the OWNERS whose interests are affected by such money or other
payments , if any, assume said responsibility and shall give OPERATOR
notice in writing by certified letter addressed to OPERATOR, when any
such money or when any other division of interest than that set forth
above shall , for any reason, become effective, and to furnish requests
for transfer accordingly, and that in the event such notice shall not
be received, OPERATOR 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 .
5 . In the event of any dispute or question at any time
concerning title to the above described lands , or the gas produced
therefrom, OPERATOR may hold the proceeds of all gas runs hereunder,
until indemnity satisfactory to OPERATOR has been furnished or until
such dispute or question of title is corrected or removed to court
affecting title to either the real property above described or to the
gas produced therefrom in which any of the undersigned are parties ,
written notice of the filing of such action shall immediately be
furnished to OPERATOR by the undersigned, stating the court in which
the same is filed and the title of such action or suit , and OPERATOR or
any purchaser of gas runs shall be held harmless from and any judgment
rendered in such suit and all reasonable costs and expenses incurred in
defending against said claim whether in OPERATOR' : J_------ f the
purchaser, and the undersigned shall pay said judgment and said costs
and expenses in the proportion and to the extent that the same affects
his or their interest . Where , under this provision the proceeds of any
gas sales are retained, OWNERS agree to indemnify and hold the OPERATOR
harmless from any liability for any tax proposed or assessed against or
paid on account of such retained proceeds , together with the penalties
incident thereto, and the OPERATOR may deduct the same from any amount
owing by it to OWNERS . In the event of overpayment for gas to the
interest of any Owner herein, OPERATOR is authorized upon discovery
thereof to recoup such amounts from future accruals to this or any
other interest of such Owner for which OPERATOR may make settlement .
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6 . This Agreement shall be binding upon all parties
agreeing hereto irrespective of whether all parties owning an interest
in the minerals, royalty, and leasehold estates execute the same , ant
shall extend to and be binding upon their respective heirs , devisees,
executors, legal representatives , successors and assigns . This
Agreement may be attached as an exhibit to any other document and
incorporated therein by reference for all purposes and execution of any
such document to which this Gas Division Order may be attached shall be
deemed to be for all purposes of the same force and effect as execution
of this document .
7 . If applicable , the OPERATOR will comply with all
provisions of Executive Order No . 11246 of September 24 , 1965 , and any
amendments or supplement thereto and of the rules , regulations and
relevant orders of the Secretary of Labor .
8 . Special Provisions :
Witn s /
Clerk to the B'. d al?
onstance L. Harbert (09/09/98)
tcc- U GAS
) '" ' X Chair, Weld County Board of Commissioners
Deputy Clerk t % BQaL
kw;
�KK
ISJ �- 814-6000-813
FIN #
915 10th Streat
Mailing Address
GreaJey. CO 80631
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EXHIBIT " A" � {
Attached to and made a part of that
Certain Gas Division Order effective
Date of First Production covering the
Elmquist 11-23 (J) Well C0. 5698
OWNER# OWNER NAME INTEREST
8593 Duane E & Cornelia V Nelson Trustees 6 . 25000% RI
of the Duane & Cornelia Nelson Living
Trust dated January 13, 1993
8474 I25 Access Road East
Longmont, CO 80504
25990 Haley Land Company LLC 6 . 20434% RI
14491 Weld County Road 5 _
Longmont, CO 80504
8035 Weld County . 03859% RI
c/o Board of County Comm
Weld County Centennial Center
915 10 ' Street
Greeley, CO 80631
21802 State Department of Highways . 00707% RI
4201 East Arkansas Avenue
Denver, CO 80222
9097 Jack C and Shirley A Bendier Trustees . 49817% OR
Jack Bendler Trust Agreement dtd 5/27/75
6812 E 89' Street
Tulsa, OK 74133
8929 Norma Jeanne Freedman . 62272% OR
1580 Lincoln Street, #650
Denver, CO 80203 -- -
8648 Billye L Hix . 13077% OR
4222 Jennie Street
Amarillo, TX 79106-6031
7968 Lena Mae Grant . 10898% OR
Rt 4 Box 8
Crawfordsville, IN 47933
10827 Green Family Trust . 49817% OR
William R & Margaret Green Trustees
933' W Pebblebrook Lane
noise, ID 83703
17060 Macey & Mershon Oil Inc . 06227% OR
C Box 2210
Denver, CO 80201
9160 Machii-Ross Petroleum Company 2 . 49087 ; OR_
_ ._ _ 0cean Park Blvd ` "1 `50
Santa Monica, CA 90405
11111111111111111111111111111110111 1 III IIUI IIII Ill
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10930 Darlene E Patterson . 49818% OR
6800 E Tennessee Avenue #642
Denver, CO 80224
10746 Robert S Pirtle . 12454% OR
P 0 Box 1310
Tyler, TX 75710
8933 William Pirtle . 12454% OR
526 Towne Oaks Drive
Tyler, TX 75701
8450 Mb.rtin L Rogers . 07161% OR
3737 14' Street SE
Loveland, CO 80537
10829 Tiago Corp 1 . 24543% OR
P 0 Box 370053
Denver, CO 80237
8716 Western Oil and Minerals Limited 2 . 98904% OR
P 0 Drawer 1228
Farmington, NM 87499
22 North American Resources Company . 99635% OR
16 East Granite Street
Butte, MT 59701
25023 Halliburton Energy Services Inc 77 . 03836% WI
410 Seventeenth Street Suite 900
Denver, CO 80202-4457
TOTAL 100 . 00000%
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44 North American
Resources Company _ '
a,l Ion rand Tatum Corn/I,I'IV
INSTRUCTION TO ALL INTEREST OWNERS
THE ENCLOSED DIVISION ORDER OR TRANSFER ORDER SHOULD NOT BE ALTERED IN
ANY WAY EXCEPT TO CORRECT SPELLING ERRORS, UNLESS ACCOMPANIED BY
DOCUMENTARY EVIDENCE TO SUPPORT THE CHANGE.
If your name and interest are correctly shown:
INDIVIDUAL- Sign your name as shown and have your signature
witnessed.
CORPORATION - Signature must be attested, corporate seal
affixed and title of party reflected.
PARTNERSHIP- Must be executed by all partners or by an
authorized partner. Please provide copy of
instrument giving partners authority to sign.
AGENT, ATTORNEY-IN-FACT,GUARDIAN ETC - Please provide copy
of power of attorney of other evidence of
party's authority to sign.
If your name has changed because of marriage or divorce, execute the Division Order with
your current name and send a copy of the marriage certificate or divorce decree with your
executed Division Order.
SHOULD YOU FAIL TO PROVIDE YOUR CORRECT SOCIAL SECURITY NUMBER OR
TAX IDENTIFICATION NUMBER, THE LAW PROVIDES FOR A 20% WITHHOLDING
OF ALL YOUR PRODUCTION PROCEEDS DUE YOU. PLEASE COMPLETE AND
RETURN THE ENCLOSED W-9 FORM WITH YOUR EXECUTED DIVISION ORDER.
Please provide your mailing address in the space provided.
RETURN ONE COPY OF THE DIVISION ORDER/TRANSFER ORDER IN THE SELF-
ADDRESSED ENVELOPE PROVIDED.
If for any reason a suspense has been set out for your interest the reason for the suspense
will be set out with your Division Order. Please respond to the requirements as indicated.
DO NOT DETACH THE EXHIBIT FROM THE DIVISION ORDER IF ONE IS INCLUDED.
If you should have any questions about this instrument please contact Edie Moses at (406)
496-5266.
16 East Granite Street• Butte,Montana 59701-9326
Telephone 406-782-4233
Facsimile:406-495-5295(Land,Lease&Accounting)• 406-496-5300(Engineering) ebO/s/ /6"
POLITICAL SUBDIVISION EXEMPTION CERTIFICATE
(For use by States, Territories, or Political
Subdivision thereof, or the District of Columbia)
The undersigned hereby certifies that he is Comptroller
Title of Officer
of Weld County, Colorado
State, Territory, or Political Subdivision, or District of Columbia
and that he is authorized to execute this certificate , and that the articles
specified in the accompanying order or on the reverse side hereof, are purchased
from North American Resources Company
for the exclusive use of Weld County
Department
of the State of Colorado
State, Territory, or Political Subdivision, or District of Columbia
It is understood that the exemption from tax in the case of sales or articles
under this exemption certificate to the State, Territory, or Political
Subdivision, or District of Columbia, is limited to the sale of the article
purchased for their exclusive use, and it is agreed that if articles purchased
tax-free under exemption certificates are used otherwise or are sold to employees
or others, such fact must be reported to the manufacturer of the articles covered
by this certificate. It is also understood that the fraudulent use of this
certificate to secure exemption will subject the undersigned and all guilty
parties to a fine of not more than $10,000.00 or to imprisonment for not more
than five years, or both, together with costs of prosecution.
COLORADO SALES TAX CERTIFICATION OF EXEMPTION NUMBER - 98-03551
FEDERAL TAX EXEMPTION NUMBER - 84-6000-813 )))
STATE TAX EXEMPTION NUMBER - 14-02-101 /
Date September 9 , 19 98
98 `4/5
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