HomeMy WebLinkAbout951217.tiff 243980S d-1493 P-653 05/25/95 04: 10P PG 1 OF ; SEC DOC
Weld County CO Clerk & Recorder 0.00
DIVISION ORDER
ANegicialia
(COMBINED OIL AND GAS)
TO: K.P. KAUFFMAN COMPANY, INC. ("KPK")
1675 Broadway, Suite 1970
Denver, Colorado 00202
ATTN: Division Order Dept. Division Order No. 9S-/CAK. IS'9
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 Bit
SE/4NW/4-31=T2N-R67W
NET REVENUE WORKING
CREDIT INTEREST INTEREST
ELD COUNTY .01117910 RI
ABEL MAES JR. .00082750 RI
ROBERT T. ROARK AND .00090560 RI
AND MARY JO ROARK
RAY K. DAVIS AND .00604760 WI .00691150
MARY F. DAVIS
ANDREW A. TAFOYA ESTATE .00121780 RI
VICTOR J. TRUJILLO .00087440 RI
VIRGIL R. LIBBY AND .00215460 RI
JEAN G. LIBBY
RICHARD MAES .00170180 RI
ARILD DITLEV-SIMONSEN .03972030 RI
ARILD DITLEV-SIMONSEN .01202220 WI .01373970
INGERID DITLEV-SIMONSEN .03972030 RI
INGERID DITLEV-SIMONSEN .01202220 WI .01373970
NORTH AMERICAN RESOURCES INC. .03023780 WI .03455740
ST VRAIN VALLEY PUBLIC .03217900 WI
SCHOOLS
NELLO CIOCCHETTI AND .00181110 RI
WILMA DEAN CIOCCHETTI
K.P. KAUFFMAN COMPANY, INC. .80737870 WI .93105170
Effective 8:00 a.m. March 1. 1995, and until further notice, you are hereby
authorized to take or retain p ion 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:
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An" 951217
LEOU 7S/
24-398O8 i'-14y3 I -4)2J 5/25/v- 64: 1Ok Vt'
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.
As used in this Division Order, the term "Gas" shall be deemed to include
casinghead gas, gasoline and all products which KPK 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
KPK as soon as the same is received into its custody or that of any carrier it
designates. KPK 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 KPK designates which gathers and receives said Oil and KPK agrees to pay
for such Oil to the undersigned according to the division of interests herein
specified at the price agreed upon between KPK and the lease operator.
FOURTH: Quantities of Oil purchased hereunder shall be determined by the method
of measurement and computation employed by KPK or KPK'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. KPK 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 teat. KPK may refuse
to receive any Oil it considers to be not merchantable.
FIFTH: Payments are to be made -monthly by checks of KPKfor 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 leas than Twenty-five and 00/100
Dollars ($25.00) per month, KPK at its option, may defer the making of such
payment until such time as the aggregate amount due exceeds said sum. The
undersigned authorize KPK 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 KPK 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 KPH and authorizes -Dame to withhold payment
without obligation to pay interest on the amount so withheld, until satisfactory
indemnity shall be furnished to KPK. 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 saidOil and/or Gas, either before or after severance,
to indemnify and save harmless KPK against any and all liability for loss, cost,
damage and expense which KPK 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 -KPK, 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 KPK harmless of and from all liability for any tax,
together with all interest and penalties incident thereto, imposed or assessed
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 KPK at the above address by the undersigned, together with
a certified copy of the complaint or petition filed. If KPK is made a party to
such proceedings, the undersigned agrees to indemnify same
eoagainrneY'stfans any
judg ent
rendered therein and to reimburse KPK for any
expenses incurred in connection therewith.
SEVENTH: The undersigned- severally agree to notify KPK of any change of
ownership and no transfer of interest shall be binding upon KPK until transfer
order and the recorded instrument evidencing such transfer, or a certified copy
thereof, shalunished
ransfer of
shall be
ve
8:00 a.m. nitheeffirst day ooFf the calendar interest
calendar monthinwhi h proper enotice lis
2 -
43980K 1s-1493 1 -653 n5/25/95 04: 10P PG 3 OF 3
received by KYK. KPK 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 KPK notice in
writing by registered letter addressed to KPK at the above address, directed to
the Divinion 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, KPK 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,
KPK 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, KPK may hold without interest the portion of the proceeds subject to refund
unless indemnity satisfactory to KPK has been furnished,
or rhuntil tilcKPK'seedsdrefund
refund
obligation has been finally determined. If any portion
ofrom the sale of Gas is paid over by KPK 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, KPK 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 KPK's election, it may invoice the undersigned therefor, plus
the legal rate of interest KPK is or may be required to pay in connection with
undersigned's portion of the refund.
NINTH: If the
ng
est
rator, he or she
guarantees and warrants undersigned and/or op
antsthat sall wGas land lOil rt r
tendered ehas 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 andaGas to Gas
consent is given KPK and any pipeline company which same may
with the wells and tanks on said land, to disconnect and remove such pipelines,
in case of termination by either KPK or the undersigned of any purchases under
this Division Order.
sion
Ip the event of conflict between e the ri ofs of this this Division Order shall be
Order and
applicable law or regulations, provisions
deemed modified so as to comply with such law or regulation.
The undersigned expressly waive any claim against KPK for any and all amounts
which may be due us from others for production prior to the effective date
hereof.
WITNESSES OF
OWNERS SIGN BELOW TAX PAYER ID I OR
N
WITNESSES (ENTER MAILING ADDRESS) SOCIAL SECURITY
4 Y !'tea / , �,�yA D E L,
I N 84-6000813
�/, ww WELD COUNTY BOARD OF COMMISSIONERS
•
• �1�: ;� r "E BOARD ADDRESS )
•
• , �`II. /I . PO BOX 758
3 ;tr -LEAK
LERK
GREELEY, CO 80632
- 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.
BY:
u ty A to ney, �_
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