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HomeMy WebLinkAbout951468.tiff AR24143rib DIVISION ORDER (COMBINED OIL AND GAS) TO: R.P. KAUFFMAN COMPANY, INC. ("KPK") 1675 Broadway, Suite 1970 Denver, Colorado 80202 �) 1) //__ ATTN: Division Order Dept. Division Order No. /\ - P1r_ ILDI 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 D#1 NE/4NW/4-31-T2N-R67W NET REVENUE WORKING CREDIT INTEREST INTEREST LD COUNTY .00425890 RI 10004E ORVILLE A. NEWTON .00118130 'RI DEAN G. MIRCOS AND .00127460 RI KIMBERLY A. MIRCOS ALEXANDER J. TESONE .00027980 RI ARMANDO A. RUSCITTI .00068390 RI VERNA J. LEPORE .00242480 RI WILLARD N. WAYNE .00223830 RI RAY K. DAVIS AND .01846050 WI .02109760 WI MARY F. DAVIS ERIC J. TRAYLOR .00149220 RI DWIGHT D. MOLLENDOR AND .00080830 RI ROSE MOLLENDOR PAUL R. MORROW .00226930 RI WILLIAM R. i ALICE D. WILCOX .00071500 RI RICHARD A. WELLS .00118120 RI GATETANA DISALLE .00205170 RI MARY ALBERTS .00074610 RI DONALD E. JACKSON .00099470 RI MARGARET CERCONE .00152320 RI SUSIE DILULLO .00108800 RI JOHN DIGREGORIO .00118130 RI ROCCO A. FIGURILLI AND .00027980 RI AND BETTY FIGURILLI FAYE JACORETTA .00074600 RI WILLIAM P. FLYNN .00074600 RI MARY CICCARELLI .00124350 RI - 1 - REc DOc 244379r. B-1498 V-289 06/23/95 02:58P PG 1 OF 4 0,00 ( Icrh S Recorder 951468 Nell fount% 0 t007'/ NET REVENUE WORKING CREDIT INTEREST INTEREST ' JOSE A. CHAVEZ .00093260 RI ALAN D. WILSON .00077720 RI STELLA R BURCH .00027980 RI MARSHALL A. ELLIS AND .00087040 RI SHELLY J. ELLIS FRANK J CIMINO AND .00177200 RI THELMA S. CIMINO JOHN S. GORTON .00077720 RI GLORIA J. SIPE .00074600 RI PAUL A. DIPAOLO .00118130 RI GENNARO DESANTIS .00059070 RI ROCCO VILLANI, JR. .00223820 RI RICHARD A. EASTON .00027980 RI THOMAS D. VILLANI .00152330 RI TOWN OF FREDERICK .00087040 RI L. H. KOOLHOF .00074610 RI NANCY JOHNS .00059060 RI DERYL E. COLLIER .00074610 RI ARILD DITLEV-SIMONSEN .03546990 RI ARILD DITLEV-SIMONSEN .02458970 WI .02810240 WI INGERID DITLEV-SIMONSEN .03546990 RI INGERID DITLEV-SIMON3EN .02458970 RI .02810240 WI NORTH AMERICAN RESOURCES INC. .10470580 RI .11966340 WI HOLLY WILLIAM HALL .00161650 RI MOUNTAIN STATES TELEPHONE .00027980 RI AND TELEGRAPH CO. MICHAEL D. HATTEL .00124350 RI CARROLL S. KNOOP .00015540 RI K.P. KAUFFMAN COMPANY, INC. .70908970 WI .80303420 WI Effective 8:00 a.m. March 1, 1995, and until further notice, you are hereby authorized to take or retain possession 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: 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 - 2 -2443796 F-1492 P-289 06/23/95 0'-:58T PS = OF 4 951468 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 APR 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 APR as soon as the same is received into its custody or that of any carrier it designates. APR 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 APR designates which gathers and receives said Oil and APR agrees to pay for such Oil to the undersigned according to the division of interests herein specified at the price agreed upon between APR and the lease operator. FOURTH: Quantities of Oil purchased hereunder shall be determined by the method of measurement and computation employed by APR or APRs 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, the use of meters or any other reasonably accurate method of measurement and computation. APR 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 test. APR may refuse to receive any Oil it considers to be not merchantable. FIFTH: Payments are to be made monthly by checks of APR for 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 less thand Twenty-five er the five and making o00f /100 /100 Dollars ($25.00) per month, KPR at its option, may payment until such time as the aggregate amount due exceeds said sum. The undersigned authorize KPR 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 !SPX 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 APR and authorizes same to withhold payment without obligation to pay interest on the amount so withheld, until satisfactory indemnity shall be furnished to APK. 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 Oil and/or Gas, either before or after severance, to indemnify and save harmless EPIC against any and all liability for loss, cost, damage and expense which KPR 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 KPR, 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 RPK 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 APR at the above address by the undersigned, together with a certified copy of the complaint or petition filed. If APR is made a party to such proceedings, the undersigned agrees to indemnify same against any judgment rendered therein and to reimburse APR for any costs, attorney' s fees or other expenses incurred in connection therewith. SEVENTH: The undersigned severally agree to notify APR of any change of ownership and no transfer of interest shall be binding upon APR until certifiedtra nsfer sfer order and the recorded instrument evidencing such transfer, o thereof, shall be furnished to KPR. 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 KPR. APR 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 eofowhose e interestserests are re affected by such money or other payments, if any, agreegive - 3 - 0 p-2 o' 00/ 02 5SP PC . OF - 953.468 Z�13- +r i - 1-}- ? writing by registered letter addressed to KM( at the above address, directed to the 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, RPM 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, APR 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, ARK may hold without interest the portion of the proceeds subject to refund unless indemnity satisfactory to APR has been furnished, or until APK's refund obligation has been finally determined. If any portion of the proceeds derived from the sale of Gas is paid over by APR 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, ARK 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 APR's election, it may invoice the undersigned therefor, plus the legal rate of interest APR is or may be required to pay in connection with undersigned's portion of the refund. NINTH: If the undersigned is a working interest owner and/or operator, he or she guarantees and warrants that all Gas and 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. 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 and Gas hereunder, consent is given ARK and any pipeline company which same may cause to connect with the wells and tanks on said land, to disconnect and remove such pipelines, in case of termination by either APR or the undersigned of any purchases under this Division Order. In the event of conflict between the provisions of this Division Order and applicable law or regulations, the provisions of this Division Order shall be 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. SIGMA .,� OWNERS SIGN BELOW TAX PAYER ID # OR (ENTER NAILING ADDRESS) SOCIAL SECURITY N AT /7 pi 84-6000813 8 --1�f, C , DALE K. HALL, BY:. Z �04/1—i124' WELD COUNTY BOARD OF COMMISSIONERS �( ' ADDRESS (6/21/95) PO BOX 758 GREELEY, CO 80632 2443796 B-1498 P-289 06/23/95 02:58P PG 4 OF 4 - q - 951469 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: %' Co ty Atto ney 951.468 Hello