HomeMy WebLinkAbout951400.tiffAK2y43642
DIVISION ORDER
To: "Vessels" Oil & Gas Company
1050 17th St., #2000
Denver, CO 80265
Well: EATS "B" UNIT #2
No.: #86012.001
Date: June 09, 1995
Each of the undersigned certifies, guarantees and warrants that they are the legal owner of or have
valid contractual or other legally binding authority to sell and deliver, in the proportion set forth opposite
their name below, all the oil, gas and associated substances, or proceeds from the sale of oil, gas and
associated substances, produced from or attributable to the well or wells located in the County of Weld. State
of Colorado described as follows (the "Property%;
Township 1 North - Range 68 West
Section 34: NE/4 (well location)
E/2 (well spacing - 320 acres)
Effective as of date of next distribution (the "Effective Date%, and until further notice from the
undersigned in writing, subject to all of the provisions hereof, Vessels is authorized and directed to receive
all of the Production of oil, gas and associated hydrocarbons (the "Production") produced therefrom,
purchase such Production and to give credit for the undersigned's share of Production produced and sold
from the Property as follows:
See Exhibit "A" for division of interest which is
attached to and made a part of this Division Order.
The following covenants are part of this Division Order and shall be binding on the undersigned,
their respective successors, legal representatives, and assigns.
1. All payments attributable to the interests of the undersigned in Production from the
Property shall be made on the basis of the contract price received by Vessels from the sale of such
Production (or, if there is no contract, on the basis of the net price actually received by Vessels with respect
to such Production), after deducting taxes and costs as provided in such contract and in this Division Order.
Payments made hereunder shall be made on the basis of the volume computations made by the purchasers of
the Production taken or sold from the Property. The undersigned agrees that you shall have the sole
discretion as to the' terms of any contract of salt.
2. If all or any part of the Property is now or hereafter included in any unit established by
voluntary agreement or governmental order, settlements hereunder shall be based on the unit Production
allocated to the Property. If Production from the Property is now or hereafter commingled with Production
from lands or formations, settlements hereunder shall be based on the commingled Production allocated to
the Property. In determining such allocations, the Production data furnished by the operator shall controL
3. Payments shall be made monthly by Vessels checks delivered or mailed to the parties
entitled thereto at the addresses set forth herein; provided however, that if the proceeds accruing to any
interest hereunder shall be less than Twenty Five Dollars ($25) for any month, Vessels is authorized to defer
payments, without interest, until such time as the accumulated payments equal or exceed Twenty Five
Dollars ($25), provided further that payment of all accumulated accounts shall be made annually in
December. Vessels is authorized to withhold from all payments made hereunder the amount of any tax,
including penalties and interest, imposed by governmental authorities on the Production from the Property
and to pay the same on behalf of the undersigned.
4. If any claim is made which in Vessels' opinion adversely affects title to any interest covered
hereby, each of the undersigned affected by such claim agrees immediately to furnish Vessels written notice
of such claim. In the event of any such claim, or in the event title to any interest in the Property covered
hereby is not satisfactory to Vessels, each of the undersigned authorizes Vessels to defer all payments
attributable to the interest so affected, without obligation to pay interest on the amount so deferred, until
such claim or title question is corrected or removed to Vessels satisfaction. Each of the undersigned further
agrees to indemnify and hold Vessels harmless from and against any and all loss, liability, claim or expense,
including attorney's fees, arising out of the payment to the undersigned of the proceeds of Production
attributable to their interest.
5. Vessels shall not be responsible for determining when any interest hereinunder shall change
by increase, decrease, termination, reversion or otherwise, and each of the undersigned agrees to notify
Vessels of any change of ownership affecting their respective interest. Until such written notice is received
by Vessels, Vessels is authorized to remit pursuant to the division of interest credited hereunder and Vessels
shall be held harmless against any and all loss, liability claim or expense, including attorney's fees, arising
out of Vessels' failure to receive such notice.
2443642 B-1498 P-135 06/22/95 03:30P PG 1 OF 4
Weld County CO Clerk & Recorder
REC DOC;
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DIVISION ORDER
6. No transfer of any interest or change in the right to receive payments, however
accomplished, shall be effective as to Vessels until 7:00 a.m. local time on the first day of the calendar month
following the month in which you are furnished proper division or transfer orders and proof satisfactory to
Vessels of such transfer or change. Until such documents have been furnished, Vessels is authorized to defer
payments attributable to interests so affected, without obligation to pay interest on the amount so deferred,
and Vessels is released from any and all liability for payments made prior thereto.
7. The undersigned hereby expressly adopts, ratifies and confirms their respective division of
interest as herein set forth as well as each oil and gas lease, unit declaration or agreement, oil and/or gas
sales or processing agreement, and all amendments thereof, under which Production covered hereby is
produced, processed and sold. In the event of overpayment to any owner, Vessels is authorized upon
discovery of such overpayment to recoup the amount of overpayment from future accruals to this or any
other leasehold interest of such owner for which Vessels makes settlement. If, at any time, a refund of a
portion of the proceeds derived from the sale of oil or gas is required under any order, rule or regulation of
the Federal Energy Regulatory Commission or provisions of the Natural Gas Act or Natural Gas Policy Act
of 1978, the undersigned agrees to refund all such proceeds, together with interest thereon, due and
applicable with respect to the undersigned's portion of such refund.
8. Vessels is authorized to make a fair and reasonable charge for gathering, compressing,
dehydrating or otherwise making the undersigned's share of gas merchantable, and for transportation if gas
is sold off the Property. Vessels is further authorized to deduct a fair and reasonable charge for
transportation where necessary to make the oil merchantable.
9. This division order shall become valid and binding on each owner, their respective
successors, legal representatives and assigns, as soon as signed by such owner, regardless of whether or not
all have so signed. this Division Order may be executed in one or more counterparts, and all counterparts so
executed shall constitute one original instrument.
10. Payments to the undersigned hereunder shall be subject to all present and future federal,
state and local laws, regulations and orders.
11. Any written notice required or permitted hereunder may be given to the party to be notified
at the addresses provided herein.
VESSELS WILL NOT MAKE PAYMENTS TO YOU UNTIL YOUR CORRECT SOCIAL SECURITY NUMBER OR FEDERAL
TAX IDENTIFICATION NUMBER HAS BEEN PROVIDED TO VESSELS. ALL SIGNATURES MUST BE WITNESSED BY
SOMEONE OTHER THAN A RELATIVE, AND CORPORATIONS MUST HAVE THE CORPORATE SEAL AFFIXED HERETO
AND PROPERLY ATTESTEQJ YOUR CORRECT MAILING ADDRESS MUST BE SHOWN BELOW TO RECEIVE PAYMENTS.
Attest/Witness''`*E9'RR,I'HE BOARD
1 n
BY: <4"
DEPUTY
Owner Signature DALE K. HALL, CHAIRMAN
WELD COUNTY BOARD OF COMMISSIONERS
Social Security #
or
Federal Tax ID # 84-6000813
Date Signed: 6 / 19/95
Name & Address: WELD COUNTY BOARD OF COMMISSIONERS
915 10TH STREET
PO BOX 758
GREELEY, CO 80632
2443642 B-1498 P-135 06/22/95 03:30P PG 2 OF 4
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244364` h -I4' F--1_ O6/22/05 03:30P PG 4 OF 4
I
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.
BY:
County Attorney
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