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FRONTIER CRUDE OIL DIVISION ORDER
TO: Frontier Oil and Refining Company Date: June 24, 1997
5340 S. Quebec, Suite 200N Lease No: CO-839
Englewood, Colorado 80111-1911 Contract No: 9402-012P
Telephone (303) 714-0100 Operator: Francis Energy, Inc.
Fax (303) 714-0163 Prepared By: Shelley Border
The undersigned, and each of them, guarantee and warrant that they are the legal owners in the proportions set
out below of all the oil, condensate and/or other hydrocarbons produced from the PAYNE #2-26 described as:
Township 6 North. Range 66 West. 6th P.M.
Section 26: NE/4 SW14
in WELD County, State of COLORADO, and commencing at 7 a.m. on the FIRST day of JUNE, 1997, and until
further written notice either from you or us, you are authorized to receive oil therefrom, giving credit as directed below:
OWNER NO. CREDIT TO DIVISION/KIND OF INTEREST
FOR DIVISION OF INTEREST
SEE EXHIBIT"A"
ATTACHED HERETO AND MADE A PART HEREOF
THE COVENANTS APPEARING ON THE REVERSE SIDE HEREOF ARE ALSO PART OF THIS DIVISION ORDER AND SHALL BE BINDING ON THE
UNDERSIGNED,THEIR SUCCESSORS,LEGAL REPRESENTATIVES,AND ASSIGNS:
NOTICE: The U.S.Internal Revenue Service requires that owners furnish their Social Security or Employer Identification Number. Please insert this number in the space below
the signature line. Read the terms on the back before signing below. If executing on behalf of a corporation,indicate your official capacity,Impress the corporate
seal,and have your signature attested by the secretary of the corporation.
Signature of One Signature of Mail Check To The
Witness or Attest Owner Following Address
(Please Print or Type)
ATTE i• �;��,
��/ ff ' ���� PO BOX 758
Clery a { >., , �E E. BAXTER ell .�l�h
i Title: CHAIR, WELD COUNTY BOARD GREELEY, CO 80632
"� f��: OF COMMISSIONERS
Iepu 2- EIS 't.rd 84-6000813
Social SeaaM/Employer ID Number
By:
Title:
Social Security/Employer ID Number
CONSENT AGENDA
06/30/97 LE0070
2557176 B-1615 P-53 07/09/1397 10:44A PG 1 OF 3 REC
Weld County CO JA Suki Tsukamoto Clerk & Recorder 0.00 971891
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: /�--
unty A rney
DATE: (=1.- , J
FIRST: The oil received and purchased hereunder shall become your property as soon as the same is
received into your custody or that of any carrier designated by you.
SECOND: The oil received and purchased hereunder shall be delivered F.O.B.to any carrier designated by you
which gathers and receives said oil, and you agree to pay for such oil to the respective owners according to the division of
interest above specified at the price posted for oil of the same grade and gravity in the same producing field on the date said
oil is received by you. If the oil should be sold by you to another purchaser accepting delivery thereof at the lease tanks,
settlement therefor shall be based upon the price received by you for such oil and upon the volume computation made by such
purchaser.
THIRD: Quality and quantity shall be determined in accordance with the conditions specified in the price
posting. You may refuse to receive any oil not considered merchantable by you.
FOURTH: Settlements and payments shall be made monthly for oil received and purchased during the preceding
month,by check mailed to the respective parties at the address above given, for the amount of such purchase price due said
parties respectively, less any taxes required by law to be deducted and paid by you as purchaser. If at any settlement date
the amount payable to any party hereunder shall be less than twenty-five dollars($25.00)per month,settlement may be made
annually, without interest.
FIFTH: Satisfactory abstracts or other evidence of title will be furnished you at any time on demand. In the
event of failure to furnish such evidence of title, or in the event of any dispute or question at any time concerning the title to
said land and/or the oil produced therefrom, you are authorized to withhold the proceeds of all oil received and run, without
interest,until such dispute,defect or question of title is corrected or removed to your satisfaction,or until indemnity satisfactory
to you has been furnished;and in the event any action or suit is filed in any court affecting the title to the land above described
or the oil produced therefrom,to which any of the undersigned is a party, written notice of the filing of such suit or action shall
be immediately furnished you by the undersigned,stating the court in which the same is filed and the title of such suit or action.
You will not be responsible for any change of ownership in the absence of actual notice and satisfactory proof thereof. You
are hereby relieved of responsibility for determining if and when any of the interests hereinabove set forth shall revert to or be
owned by others as a result of the completion or discharge of any payment or the termination of any estate or disability.
SIXTH: This Division Order shall become valid and binding on each and every owner above named as soon
as signed by him or her regardless of whether or not any of the other above named owners have so signed; and in
consideration of the purchase of oil hereunder, consent is hereby given to you and/or any pipeline company which you may
cause to connect with the wells and/or tanks on said land,to disconnect and remove such pipelines, in case of termination by
either you or us of purchase under this Division Order. Any change in interest or ownership shall be effective as to Purchaser
on the first day of a calendar month, following date of receipt.
SEVENTH: Working Interest Owners and/or Operators who sign this Division Order,and each of them,guarantee
and warrant,for your benefit and that of any pipeline or other carrier designated by you to run or transport said oil, that all oil
tendered hereunder has been or will be produced in accordance with applicable laws and official rules and regulations. Royalty
Owners who sign this Division Order recognize as valid and subsisting in full force and effect all oil and gas leases of record
held by the within named Working Interest Owners, which cover or purport to cover Royalty Owner's interest in the above
described lands as well as any unit and the same are hereby ratified, adopted and confirmed. Insofar as necessary to effect
the purposes of this provision, this instrument shall be construed as containing words of present grant.
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4
FRONTIER
EXHIBIT "A"
ATTACHED TO AND MADE PART OF
FRONTIER OIL AND REFINING COMPANY
CRUDE OIL DIVISION ORDER
DATED JUNE 24, 1997
PAYNE#2.26
C0•639
Page 1 of 1
OWNER NO. CREDIT TO DIVISION/KIND OF INTEREST
2415 Payne, Inc. .18744230 RI
2118 North 47th Avenue
Greeley, Colorado 80632
2313 Weld County Board of Commissioners .00168260 RI
P.O. Box 758
Greeley, Colorado 80632 -
2416 Adam C. Buna .01029170 ORI
do First Bank of Boulder
Account#282-7255
6500 Lookout Road
Boulder, Colorado 80301-3303
2417 Robert L. Childers .01029170 ORI
P.O. Box 756
Greeley, Colorado 80632
2772 Nicholas D. Francis .01029170 ORI
1357 43rd Avenue#63
P.O. Box 2331
Greeley, Colorado 80632-2331
2420 Francis Energy, Inc., for the account of
FEI - Payne Joint Venture .78000000 NWI
1220 Eleventh Avenue, Suite 203
P.O. Box 2331
Greeley, Colorado 80632
TOTAL 1.00000000
RI =Royalty Interest
ORI=Overriding Royalty Interest
NWI=Net Working Interest(Net Revenue Interest)
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