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OIL DIVISION ORDER
TO: TEPPCO Crude Oil,LLC. Lease No.51468&
(fka Duke Energy Transport&Trading Company) 51449
6312 S.Fiddler's Green Circle,Ste.300N
Englewood,CO 80111 Date:August 2,1999
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Each of the undersigned(herein referred to individually as an'owner"and collectively as "Owners")hereby guarantees,
represents and warrants to TEPPCO Crude Oil,LLC("TCO"),its successors and assigns,that each Owner is the legal owner of
the Owner's respective interest,in the proportions hereinafter stated,in all Oil(as defined herein)produced and saved from the
EMANCIPATOR 22-9,10,15,16&22-15,16 lease,located in the County of WELD,State of COLORADO,described as
follows(the"Lands"):
Township 5 North,Range 64 West
Section 22:SE
Effective at 8:00 A.M.April 1,1993 thru January 1,1994 ONLY and until further written notice,TCO is hereby authorized to
receive all such produced Oil,for TCO's own purchase or for resale,to receive payment therefore,to make payment of and/or
give credit for all proceeds derived therefrom as follows:
Owner No. Credit To Decimal Interest
22031 Weld County Board of Commissioners .00562500-RI(Lease 51468)
.00281250-RI(Lease 51449)
All provisions appearing on the reverse side hereof are incorporated herein by reference and are an essential part of this
division order with the same effect as if printed above the Owners'signatures.
The Owners expressly waive any claim against TCO for any and all amounts owed to the Owners from any third party for Oil
produced from the Lands prior to the effective date hereof.
Signatures of Witnesses Owners Sign Below Taxpayer ID Number or
I �r� (Enter Mailing Address) Social Security Number
e• ounty Board of Cossioners
84-6000-813
ttest tut ({.Y i�air, Dale . 11 08/09/99)
-�1O t �l5 10th S 970-356-4000
•qp ��, TELEPHONE(Optional)
Deputy Clot` g ,reele Colorado 80632
Rn 6VV°�the Board' f�
Address
TELEPHONE(Optional)
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The following provisions are also part of this division order. All provisions contained herein shall be binding upon the Owners and
TCO and their successors, legal representatives and assigns.
FIRST: The word "Oil" shall mean all crude oil, condensate and other marketable liquid hydrocarbons produced and saved from the
above described real property. Oil shall become TCO's property as soon as the same is received into TCO's custody or that of any
carrier designated by TCO. TCO is not obligated to: (a) receive Oil in definite quantities, (b) receive Oil for fixed periods, or (c)
provide storage.
SECOND: The Oil shall be delivered f.o.b. to any carrier designated by TCO which gathers and receives crude oil, condensate or
other liquid hydrocarbons, and TCO shall pay for such Oil to the Owners according to the division of interests herein specified at the
price agreed upon between TCO and the lease operator.
THIRD: Quantities of Oil purchased by TCO shall be determined by the method of measurement and computation employed by TCO
or its agent designated to receive such Oil including without 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. TCO 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 tests conducted by TCO. TCO may refuse to
receive any Oil that it does not consider merchantable.
FOURTH: All checks shall be delivered or mailed to the respective Owner at the addresses above stated. TCO shall make payments
hereunder monthly by TCO's check for Oil received during the preceding month; provided that if the monthly payment due an Owner
is less than the greater of twenty-five dollars ($25.00) or the amount under applicable state law which a purchaser is not required to
immediately disburse, TCO may defer such payment, without interest, until the amount payable to said Owner equals or exceeds said
amount. In such event, payment shall be made at the next regular settlement date. TCO is hereby authorized to withhold from the
proceeds of Hydrocarbon's the Owner'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 Owners shall furnish, at no cost to TCO, evidence of title satisfactory to TCO. Each Owner receiving proceeds of Oil
on behalf or for the account of any other person or entity shall promptly disburse and make full and proper settlement to each such
person or entity. Until satisfactory evidence of title is furnished or in the event of any adverse claim to the Oil, lien or dispute at any
time concerning title or ownership to the Oil, the proceeds thereof, and/or the Lands, TCO shall have the right at any time and from
time to time to withhold payment for Oil accruing to the interest or interests affected thereby until such adverse claim, lien or dispute
shall have been fully settled,without liability for damage or interest to the Owners in any such case. If suit is filed or an adverse claim
is made affecting title or ownership to the Oil, the proceeds thereof, and/or the Lands, each Owner shall promptly provide to TCO (at
the above address) written notice thereof, together with a certified copy of any complaint or petition filed along with all other
pleadings related thereto. Each Owner shall defend, indemnify and hold TCO and its affiliates, directors, officers, employees, agents
and representatives(collectively, the "TCO Indemnitees"), harmless from and against any and all claims,-,liabilities, demands, actions,
causes of action,costs, damages, and expenses (including, without limitation, costs of investigation, defensarand co'Nrt and reasonable
attorneys' fees) arising from or in any way relating, directly or indirectly, to any proceedings,.actignS odadvcrse claims concerning
title or ownership to the Oil, the proceeds or disbursement thereof, and/or the Lands. SUCH.INDEMI#ISON'¢NACL APPLY
NOTWITHSTANDING YOUR NEGLIGENCE OR OTHER AND NOTWITHSTANDING SUCH ACT MAY OCCUR IN.THE FUTURE.IT BEING THE
INTENT OF THE PARTIES HERETO THAT SUCH INDEMNIFICATION SHALL APPLY TO ALL SUCH ACTS.
SIXTH: TCO shall not be responsible for any change of ownership in the absence of actual notice and.satist?aetory proof thereof
Each Owner shall notify TCO in writing of any change in their ownership. Any transfer, assignment,ti conveyance of any of an
Owner's interest, however accomplished, shall be made subject to this division order and effective at 8:00 AIM. on the first day of the
calendar month following the receipt of notice by TCO. If any such written notice is not received by TCO, the respective Owner shall
defend, indemnify and hold the TCO Indemnitees harmless from and against any over or underpayment, or wrong payment of any
such sum or sums and all other damages in connection therewith. TCO shall have the right, in its sole discretion, to set off from
amounts owed to any Owner from the sale of Oil or from the sale of crude oil, condensate or other liquid hydrocarbons produced from
other properties against any amounts which may be owed to TCO by the respective Owner under the provisions hereof or any other
transaction with TCO.
SEVENTH: If an Owner is a working interest owner and/or operator, it hereby guarantees, represents and warrants to TCO 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 division order shall bind each Owner as soon as signed by them, whether or not signed by any other Owner. All
provisions herein contained shall apply to each Owner separately and not jointly. This division order may be executed in counterparts,
all of which together shall constitute one division order. This division order may be terminated effective no less than thirty(30) days'
after delivery of written notice. The Owners consent to TCO or any company owning pipeline connected to wells or tanks located on
the Lands or lands pooled therewith,to disconnect and remove such pipelines upon termination hereof.
6312 S. Fiddlers Green Cr.#300N
Englewood, CO 80111
(720)528-3140
Fax(720)528-3198
=TEPPCO
Crude Oi/, LLC
INSTRUCTIONS TO ALL INTEREST OWNERS
TEPPCO CRUDE OIL, LLC.HAS ENCLOSED AN OIL DIVISION ORDER OR TRANSFER ORDER
FOR YOUR EXECUTION. IF YOU ARE RECEIVING A DIVISION ORDER FROM TEPPCO FOR
THE FIRST TIME, PLEASE BE ADVISED THAT WE ARE THE NEW OIL PURCHASER. IF A
TRANSFER ORDER IS ENCLOSED WE ARE EVIDENCING CHANGES OF OWNERSHIP IN AN
EXISTING WELL.
THE ATTACHED DOCUMENT 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:
1. Sign your name as shown on the Oil Division Order or Oil Transfer Order.
2. Have your signature witnessed by two competent witnesses.
3. If your name has changed due to marriage or divorce, execute the Oil Division Order or Oil Transfer Order
using your present name and furnish a copy of the marriage certificate or divorce decree.
4. If signing for a corporation, signature must be attested,corporate seal fixed and title of signatory party
reflected.
5. If signed by agent, attorney-in-fact, guardian or any party other than the named interest owner, a certified .
copy of the power of attorney or other evidence of such party's right to sign must be furnished.
6. Oil Division Orders or Oil Transfer Orders for partnerships must be executed by all partners or by an
authorized partner. A certified copy of the instrument giving said partners authority to sign must be
furnished.
7. Should you fail to provide your correct Social Security Number or Tax Identification Number,the law
provides that we withhold 31%of all production proceeds due you. You may also be subject to a further
penalty levied by the Internal Revenue Service.
8. Your correct mailing address should be noted in the space provided to insure prompt receipt of production
proceeds.
9. The top copy or the"Original"of the Oil Division Order or Oil Transfer Order should be returned to:
TEPPCO Crude Oil,LLC.
6312 South Fiddlers Green Circle
Suite 300N
Englewood, CO 80111
Royalty Relations
10. Should you have any further questions regarding the enclosed Oil Division Order or Oil Transfer Order,
please contact your Operator or TEPPCO Crude Oil, LLC at(720)528-3140.
11. Please DO NOT DETACH the exhibit from the Oil Division Order or Oil Transfer Order if one is included.
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