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GAS DIVISION ORDER
TO: DUKE ENERGY FIELD SERVICES, INC.
(flea PanEnergy Field Services, Inc )
PO Box 5493
Denver, CO 80217
Lease No 1623A
Date August 19, 1997
The undersigned, and each of us, certify and guarantee that we are the legal owners of and hereby warrant the title
to oar respective interests in the proceeds derived from the sale of Gas produced and saved from Lohr 13-4
lease or unit, located in the County of Weld, State of Colorado, more particularly described as follows
Township 5 North, Range 64 West, 6th PM
Section 13
Owner No.
Credit To Decimal Interest
SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF
Effective at 8 00 A M July 1, 1997 and until further notice, you are hereby authorized to take or retain possession
of all 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 of Gas 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 January 18, 1988 as amended between Parker & Parsley
Petroleum, as "Seller," and Duke Energy Field Services, 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 As used in this Division Order, the term "Gas" shall be deemed to
include Gasinghead gast, gasoline and all other products which Duke Energy Field Services, Inc receives and/or
recovers by processing from Gas produced from wells on said property(ies)
All covenants appearing on the reverse side hereof are incorporated herein by reference and the undersigned agree
that each shall be deemed and considered an es§ential part of this division order in like manner and with the same
effect as if printed above our signatures _
e any claim against you for any and all amounts which may be due us from others
e date hereof
The undersi
for produ
Sign • =s ofj !. '' ids ' O , ners Sign Below
ailing Address) Social Security Number
Deput• ler
the Board
Geor: E. Baxter, Chair, Weld
ddress County Board of Commissioners
915 lutri Street-
PO Box 758
Greeley, GO 80632
Df/ay/97
Address
Y'
jmq
CONSENT AGENDA 08,(,x7/97
Address -
Taxpayer ID Number or
84-6000813
(970)356-4000 ext. 4225
TELEPHONE (Optional)
TELEPHONE (Optional)
TELEPHONE (Optional)
oid. _
972236
LE0141 - J
2567157 B-1624 P-476 09/04/1997 11:53A PG 1 OF 3 REC DOC
Weld County CO -JA Suki Tsukamoto Clerk & Recorder 0.00
SECOND: Payments are to be made monthly by checks of Duke Energy Field Services, inc. to is
delivered or mailed to the parties thereto entitled at the addresses above given, provided that if the
amount due any owner is less than twenty-five dollars ($25.00) per month, Duke Energy Field Service_
Inc., at its option, may defer the making of such payment until such time as the aggregate amount due
exceeds said sum. The undersigned authorizes Duke Energy Field Services, Inc. to withhold from the
proceeds of any and all Gas 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.
THIRD: In the event of any adverse claim of title or in the event title shall not be satisfactory to Duke
Energy Field Services, Inc. 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 Duke Energy Field
Services, Inc. and authorizes Duke Energy Field Services, Inc. to withhold payment, without obligation
to pay interest on the amount so withheld, until satisfactory indemnity shall be furnished to Duke Energy
Field Services, Inc. against such adverse claims or any such defects in the title, or until title shall be
made satisfactory to Duke Energy Field Services, Inc. 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 Gas,
either before or after severance, to indemnify and save harmless Duke Energy Field Services, Inc.
against any and all liability for loss, cost, damage, and expense which Duke Energy Field Services, Inc.
may suffer or incur on account of receiving and paying said party the proceeds derived from the sale of
said Gas. Where Duke Energy Field Services, Inc. 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 Duke Energy Field Services, Inc. harmless of and from all liability for any tax,
together with all interest and penalties incident thereto, imposed or assessed against, or paid by it on
account of the sum or sums so withheld from payment to said party, and deduct all such taxes, interest
and penalties so paid it from any sums owing by it to said party.
FOURTH: The undersigned severally agree to notify Duke Energy Field Services, Inc. of any change
of ownership, and no transfer of interest shall be binding upon Duke Energy Field Services, Inc. until
transfer order and the recorded instrument evidencing such transfer, or a certified copy thereof, shall be
furnished to Duke Energy Field Services, Inc. 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 Duke Energy Field Services,
Inc. Duke Energy Field Services, Inc. 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 Duke Energy
Field Services, Inc. notice in writing by registered letter addressed to Duke Energy Field Services, Inc.,
PO Box 5493, Denver, Colorado 80217, Attn.: Division Order Department, when any such money or
other payments have been 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, Duke Energy Field Services, Inc. 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.
FIFTH: 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, Duke Energy Field Services, Inc. may hold without interest
the portion of the proceeds subject to refund unless indemnity satisfactory to Duke Energy Field
Services, Inc. has been furnished, or until Duke Energy Field Services, Inc.'s refund obligation has been
finally determined. If any portion of the proceeds derived from the sale of Gas is paid over by Duke
Energy Field Services, Inc. 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, Duke Energy
Field Services, Inc. is authorized to recover the amount of the refund applicable to the interest of each of
the undersigned from future payments, or at Duke Energy Field Services, Inc.'s election, it may therefore
invoice the undersigned, plus the legal rate of interest Duke Energy Field Services, Inc. is or may be
require4,to pay'iu connection with the undersigned's portion of the refund.
SIXTH: 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. Each undersigned owner ratifies and confirms his oil and gas lease as being in full force
and effect as of the date hereof.
^_567157 a-1624 P-476 09/04/1997 11:53A_ PG 2 ^F 3
Exhibit A
1623A LOHR 13-4
Owner no. Credit to
Decimal Inflated
Type Interest Interest
22031
5857
WELD COUNTY BOARD OF
COMMISSIONERS
RALPH LOHR
4430_1 HS RESOURCES INC
F/K/A ENERGY MINERALS
95781
.COSTILLA ENERGY INC
FKA COSTILLA ENERGY LLC
PAGE: 1
RI 0.00140620
RI 0.16479170
OI 0.05438120
WI 0.77942090
2567157 B-1624 P-476 09/04/1997 11:53A 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 Attorney's staff as to
form, legal description, and
percentage of royalties, if
applicable.
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