HomeMy WebLinkAbout981946.tiff 009
GAS DIVISION ORDER
TO : NORTH AMERICAN RESOURCES COMPANY
EFFECTIVE: April 1, :1998
The below named parties, hereinafter designated as "OWNERS" ,
and each of them by their signatures hereto affixed, do hereby
represent , certify and warrant that they are the legal owners in the
proportions set out below of all the gas and associated liquid
hydrocarbons produced from or allocated to the well, acreage or
communitized area more particularly described as follows :
Township 2 North, Range 68 West
Section 23 : W2
Elmquist #1 Well C0 . 2268
Nelson #1 Well C0 . 22-26
in Weld County, State of Colorado, and are entitled to receive payments
for gas taken or sold off of the premises, and until further notice
credit for such gas so taken or sold from said premises shall be given
as directed below:
CREDIT TO DIVISION OF INTEREST MAILING ADDRESS ,
SEE EXHIBIT " A" ATTACHED
NORTH AMERICAN RESOURCES COMPANY, hereinafter called "OPERATOR" may
sell and deliver to any purchaser and then remit to the OWNERS as set
out herein for all gas and associated liquid hydrocarbons, including
condensate produced, saved and sold from said premises as follows :
1 . Payment for gas shall be paid to the OWNERS according
to the division of interest shown above . Payment therefor may be made
monthly by the OPERATOR mailing to such parties its check therefor at
the post office address stated, on or before thirty (30) days after
receipt by OPERATOR of sufficient information upon which settlement
therefor may be made . If the amount accruing to the interest of any
Owner herein is less than Twenty Five Dollars ($25 . 00) in any one
month, the proceeds of such runs may, at the option of OPERATOR, be
accumulated and paid without interest on an annual basis , payment to be
made in December of each year.
If a refund of a portion of the proceeds derived from
the sale of gas may be required under any order, rule or regulation of
the Federal Power Commission or other governmental agency having
jurisdiction thereof , or the provisions of the "Natural Gas Act" , the
price for gas shall be calculated on the basis of the unsuspended or
unconditional certificated price for such gas . OPERATOP '' - hold,
without interest , the portion of proceeds subject to possible refund
until the amount of the refund, if any, is determined by final
unappealable order of the Federal Power Commission or such other
Governmental agency . OPERATOR is also expressly authorized and given
the right , in its sole discretion, to withhold or deduct from the share
of any disbursement , directed hereunder attributable to any Owner, a
sufficient sum to pay all ad valorem taxes , applicable State and Local
taxes , Resource Indemnify Fund Tax and any _trier tax ;excluding income
taxes) that will become due and payable by any Owner, and to pay such
taxes and render a full account of any such taxes paid by it to any
Owner for whom such taxes have been paid.
iz, I IIIIII IIIII IIIIII IIIII 111111 11111 11111111 IIIII IIII I"I
1 A 2639709 09/11/1996 01:16P Weld County CO
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2 . Settlement for the above interests shall be made on the
basis of the net proceeds received from the sale of gas based upon the
volume computations made or accepted by the purchasers thereof . "Net
Proceeds" means the amount received from such sale less transportation,
dehydration, separating, treating, processing and compression charges
and other costs or ' expenses, if any. OPERATOR may sell gas to any
purchaser of its choice at such quantities and price as it shall deem
prudent . However, in the event the sales price for gas is established
or regulated by the Federal Power Commission, or other governmental
authority, the price applicable to such sales for the purpose of
calculating net proceeds shall be the unsuspended or unconditional
certificated price for such gas determined by final unappealable order
of the Federal Power Commission or such other governmental agency.
3 . Payments so made are to be in full settlement for such
gas so taken or sold from said premises .
4 . OWNERS severally shall notify OPERATOR of any change of
ownership, and no transfer of interest shall be binding upon OPERATOR
until a request to make such transfer and the recorded instrument
evidencing such transfer, or a certified copy thereof , shall be
furnished to OPERATOR. Transfers of interest shall be made effective
not earlier than the first day of the calendar month in which notice is
received by OPERATOR. OPERATOR is relieved hereby of any responsibility
for determining if and when any of the interests set forth above shall
or should revert to or be owned by other parties as the result of the
completion or discharge of money or other payments from said interests
and the OWNERS whose interests are affected by such money or other
payments , if any, assume said responsibility and shall give OPERATOR
notice in writing by certified letter addressed to OPERATOR, when any
such money or when any other division of interest than that set forth
above shall, for any reason, become effective, and to furnish requests
for transfer accordingly, and that in the event such notice shall not
be received, OPERATOR 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 .
5 . In the event of any dispute or question at any time
concerning title to the above described lands , or the gas produced
therefrom, OPERATOR may hold the proceeds of all gas runs hereunder,
until indemnity satisfactory to OPERATOR has been furnished or until
such dispute or question of title is corrected or removed to court
affecting title to either the real property above described or to the
gas produced therefrom in which any of the undersigned are parties,
written notice of the filing of such action shall immediately be
furnished to OPERATOR by the undersigned, stating the court in which
the same is filed and the title of such action or suit , and OPERATOR or
any purchaser of gas runs shall be held harmless from and any judgment
rendered in such suit and all reasonable costs and expenses incurred in
defenHHnn =(-, nst said claim whether in OPERATOR' s defense of -
purchaser, and the undersigned shall pay said judgment and said costs
and expenses in the proportion and to the extent that the same affects
his or their interest . Where , under this provision the proceeds of any
gas sales are retained, OWNERS agree to indemnify and hold the OPERATOR
harmless from any liability for any tax proposed or assessed against or
paid on account of such retained proceeds , together with the penalties
incident thereto, and the OPERATOR may deduct the same from any amount
owing by It to OWNERS . In :he event of overpayment for gas to he
Interest or any Owner herein, OPERATOR is authorized upon discovery
thereof to recoup such amounts from future accruals to this or any
other interest of such Owner for which OPERATOR may make settlement .
11E1111111 111111111E111 1111111111III 11111IIIIIIII
2639709 09/11/1998 01:S6P Weld County CO 9 8/9*
2 of 5 R 0.00 D 0.00 JR Suki Tsukamoto
6 . This Agreement shall be binding ,upon all parties
agreeing hereto irrespective of whether all parties owning an interest
in the minerals, royalty, and leasehold estates execute the same , arid
shall extend to and be binding upon their respective heirs , devisees,
executors , legal representatives , successors and assigns . This
Agreement may be attached as an exhibit to any other document and
incorporated therein by reference for all purposes and execution of any
such document to which this Gas Division Order may be attached shall be
deemed to be for all purposes of the same force and effect as execution
of this document .
7 . If applicable, the OPERATOR will comply with all
provisions of Executive Order No . 11246 of September 24 , 1965 , and any
amendments or supplement thereto and of the rules , regulations and
relevant orders of the Secretary of Labor.
8 . Special Provisions : _
I 1111111111 11111 IIIII 11111111111 IIIII III 11111 IIII IN
2639709 09/11/1998 01:16P Weld County CO
3 of 5 R 0.00 D 0.00 JR Suki Tsukamoto
witn .s ■--_�
x % 7ztti'.' ik-cfGcc/
Clerk lt! t • 8, ry4� �' Constance L. Harbert (09/09/98)
I sa . '
r, ait%_ � , ����� as, X Chair. Weld County Board of Commissioners
Deputy Cle • •••��
84-6000-813
zaitt FIN #
915 JOth Street
Mailing Address
Greeley. CO 80631 ._
EXHIBIT A"
Attached to and made a part of that
Certain Gas Division Order effective
April 1, 1998 covering the
Elmquist #1 Well C0. 2268 and the
Nelson #1 Well C0. 2226
OWNER# OWNER NAME INTEREST
8593 Duane E & Cornelia V Nelson Trustees 6 . 25000% RI
of the Duane & Cornelia Nelson Living
Trust dated January 13 , 1993
8474 I25 Access Road East
Longmont, CO 80504
25990 Haley Land Company LLC - 6 . 20434% RI
14491 Weld County Road 5
Longmont, CO 80504
8035 Weld County . 03859% RI
c/o Board of County Comm
Weld County Centennial Center
915 10' Street
Greeley, CO 80631
21802 State Department of Highways . 00707% RI
4201 East Arkansas Avenue
Denver, CO 30222
9097 Jack C and Shirley A Bendler Trustees . 49817% OR
Jack Bendler Trust Agreement dtd 5/27/75
6812 E 89` Street
Tulsa, OK 74133
8929 Norma Jeanne Freedman . 62272% OR
1580 Lincoln Street, #650
Denver, CO 80203
8648 Billye L Hix . 13077% OR
4222 Jennie Street
Amarillo, TX 79106-6031
7968 Lena Mae Grant . 10898% OR
Rt 4 Box 8
Crawfordsville, IN 47933
10827 Green Family Trust . 49817% OR
William R & Margaret Green Trustees
9337 W reoonecrook Lane
Boise, ID 33703
U260 Macey y Mershon Oil Mc . 062273: OR
P 0 Box 221_0
Denver, C,. 8029,
sachii-Ross Petroleum Company 2 . 49087 % OR
3420 Ocean Park Blvd #1050
Santa Monlca, CA :405
i IIIIII IIIII IIIIII 11111 IIIIII IIIII IIIII III IIIII IIII IIII
2639709 09/11/1996 01:16P Weld County CO G/� 1��
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10930 Darlene E Patterson . 49818% OR
6800 E Tennessee Avenue #642
Denver, CO 80224
10746 Robert S Pirtle . 12454% OR
P 0 Box 1310
Tyler, T`X 75710
8933 William Pirtle . 12454% OR
526 Towne Oaks Drive
Tyler, TX 75701
8450 Martin L Rogers . 07161% OR
3737 14'`- Street SE
Loveland, CO 80537 -
10829 Tiago Corp 1 . 24543% OR
P O Box 370053
Denver, CO 80237
8716 Western Oil and Minerals Limited 2 . 98904% OR
P 0 Drawer 1228
Farmington, NM 87499
22 North American Resources Company 77 . 03836% WI
16 East Granite Street . 99635% OR
Butte, MT 59701
TOTAL 100 . 00000%
11111i 111111111111111111111111111111111 III 11111 IIII I"I
2639709 09/11/1998 01:16P Weld County CO
5 of 5 R 0.00 D 0.00 JR Suki Tsukamoto
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I ti
North American
Resources Company
I'7out"Ui(Tomer company
INSTRUCTION TO ALL INTEREST OWNERS
THE ENCLOSED DIVISION ORDER OR TRANSFER ORDER SHOULD NOT BE ALTERED IN
ANY WAY EXCEPT TO CORRECT SPELLING ERRORS, UNLESS ACCOMPANIED BY
DOCUMENTARY EVIDENCE TO SUPPORT THE CHANGE.
If your name and interest are correctly shown:
INDIVIDUAL- Sign your name as shown and have your signature
witnessed.
CORPORATION - Signature must be attested, corporate seal
affixed and title of party reflected.
PARTNERSHIP- Must be executed by all partners or by an
authorized partner. Please provide copy of
instrument giving partners authority to sign.
AGENT, ATTORNEY-IN-FACT,GUARDIAN ETC - Please provide copy
of power of attorney of other evidence of
party's authority to sign.
If your name has changed because of marriage or divorce, execute the Division Order with
your current name and send a copy of the marriage certificate or divorce decree with your
executed Division Order.
SHOULD YOU FAIL TO PROVIDE YOUR CORRECT SOCIAL SECURITY NUMBER OR
TAX IDENTIFICATION NUMBER, THE LAW PROVIDES FOR A 20% WITHHOLDING
OF ALL YOUR PRODUCTION PROCEEDS DUE YOU. PLEASE COMPLETE AND
RETURN THE ENCLOSED W-9 FORM WITH YOUR EXECUTED DIVISION ORDER.
Please provide your mailing address in the space provided.
RETURN ONE COPY OF THE DIVISION ORDER/TRANSFER ORDER IN THE SELF-
ADDRESSED ENVELOPE PROVIDED.
If for any reason a suspense has been set out for your interest the reason for the suspense
will be set out with your Division Order. Please respond to the requirements as indicated.
DO NOT DETACH THE EXHIBIT FROM THE DIVISION ORDER IF ONE IS INCLUDED.
If you should have any questions about this instrument please contact Edie Moses at (406)
496-5266.
16 East Granite Street• Butte,Montana 59701-9326
Telephone 406-782-4233
Facsimile 406-496-5295(Land,Lease&Accounting)• 406-496-5300(Engineering) t,'T 62
�j
,,,,-„-,,t__
_ _.,.„, .
va,.....-
North American
Resources Company
a Montana Power company
The Internal Revenue Service has issued guidelines requiring us
to maintain certain information on each of our vendors or accounts
receiving payment from us. Please provide the information requested
below.
To avoid possible delays in future payments or the possible
deduction of backup withholding, this letter should be completed and
returned to us, in the enclosed self-addressed envelope, within fifteen
(15) days.
Thank you in advance for your cooperation.
RETURN LETTER
SUBSTITUTE FORM W-9 -
Please provide your Tax ID Number: SEE ATTACHED LETTER
EMPLOYER IDENTIFICATION NUMBER
SOCIAL SECURITY NUMBER
STATE OR NON-PROFIT EXEMPT ORGANIZATION YES NO
Are you a Corporation? YES or NO (Circle One)
Have you been notified by the IRS that you are subject to backup
withholding? YES or NO (Circle One)
Certification under penalties of perjury, I certify that:
The number shown on this form is my correct taxpayer
identification number (or I am waiting for a number to be issued to
me) .
Signature Date
Print or Type Name
Title
16 East Granite Street• Butte,Montana 59701-9326
Telephone 406-782-4233
Facsimile:406-496-5295(Land,Lease&Accounting)• 406-496-5300(Engineering) 9?/ //
POLITICAL SUBDIVISION EXEMPTION CERTIFICATE
(For use by States, Territories, or Political
Subdivision thereof, or the District of Columbia)
The undersigned hereby certifies that he is Comptroller
Title of Officer
of Weld County, Colorado
State, Territory, or Political Subdivision, or District of Columbia
and that he is authorized to execute this certificate , and that the articles
specified in the accompanying order or on the reverse side hereof, are purchased
from North American Resources Company
for the exclusive use of Weld County
Department
of the State of Colorado
State, Territory, or Political Subdivision, or District of Columbia
It is understood that the exemption from tax in the case of sales or articles
under this exemption certificate to the State, Territory, or Political
Subdivision, or District of Columbia, is limited to the sale of the article
purchased for their exclusive use, and it is agreed that if articles purchased
tax-free under exemption certificates are used otherwise or are sold to employees
or others, such fact must be reported to the manufacturer of the articles covered
by this certificate. It is also understood that the fraudulent use of this
certificate to secure exemption will subject the undersigned and all guilty
parties to a fine of not more than $10,000.00 or to imprisonment for not more
than five years, or both, together with costs of prosecution.
COLORADO SALES TAX CERTIFICATION OF EXEMPTION NUMBER - 98-03551
FEDERAL TAX EXEMPTION NUMBER - 84-6000-813 )))
STATE TAX EXEMPTION NUMBER - 14-02-101
Date September 9 , 19 98
9f i ‘ii&
OFFICE OF COUNTY ATTORNEY
PHONE (970) 356-4000 EXT.4391
FAX
915 TENTH
STREET
STREETT
P.O. BOX 1948
1 GREELEY, CO 80632
C. August 24, 1998
COLORADO
North American Resources Company
16 East Granite Street
Butte, MT 59701-9326
RE: Division Orders; Elmquist 11-23 (J);
Elmquist No. 1 and Nelson#1
Dear Sirs:
The Board of County Commissioners of Weld County, Colorado, has received two Division
Orders concerning the wells referred to above. The Clerk to the Board of County
Commissioners files do not contain information showing that the properties referred to in the
Division Orders and owned by Weld County have ever been leased. This lack of such
information may be an error on our part. We cannot process the Division Orders until we
have some leasing information.
I respectfully request that you contact me as soon as possible to let me know what
information you have regarding the lease of the properties owned by Weld County that are
included in the Division Orders. I may be reached at (970) 356-4000, extension 4390, or in
writing at the above stated address.
Thank you for your attention to this matter.
Sincerely,
Bruce T"Barker j —
Weld County Attorney
BTB/db:Let/American
pc: Clerk to the Board
08/31/98 13:06 ENTECH OIL DIVISION 4 9703520242 NO.891 P001/008
ENERGY SUPPLY DIVISION
GENERAL OFFICES:16 EAST GRANITE St,BUTTE,MT 59701
Abvrma bum Gar
North American Resources Company
Oil&Gas Operations
Fax No.: (406)496-5295
If you do not receive all of the pages,please contact DaNette Rule
(406)496-5265-Accounting and Lease Administration
DATE O " /
TO : tBfcLLCeZ4RKEIC
FAX NO. .
FROM : n/6 `kn.0.5 ES
L�
MESSAGE : ?LA el[1 £5 T — U sa &:7G!Al T / 1.11145e
Total Number of Pages(Including this Cover Sheet) 7
Special Instructions: Confidential Please Reply
Urgent For your Information
aS / `4A,
08i31/98 13:06 ENTECH OIL DIVISION 9703520242 NO.891 P0027008
LpaI
•
.WELD COUNTY f AND GA4 LEASE
(Small Tract)
THIS AGREEMENT, made and entered Into this lor day of June , 19 9s - by and
between WELD COUNTY.COLORADO,a political subdivision of the Sate of Colorado acting by and through
the Board of County Commissioners of the County of Weld,do Weld County Centennial Center, 915 10th
Street Greeley. CO 80631, hereinafter called Lessor,and:
North American Resources Company, 1700 Broadway,Suite 2000,Denver,Colorado 80290
•
hereinafter called Lessee.
WITNESSETH,that Lessor,for and in consideration of the sum of$ 200.00 ,cash in
hand paid, the receipt of which is hereby acknowledged, and the covenants and agreements hereinafter
described, has granted, demised, leased and let,and by these presents does grant,demise, lease and let
exclusively unto die said Lessee, the land hereinafter described,with the exclusive right for the purpose of
mining, exploring by geophysical and other methods,and operating for and producing therefrom;oil and all
gas of whatsoever nature of kind, with rights of way and easement for laying pipe Me, and erection of
structures thereon to produce,save and take cam of said products,all that certain tract of land situated in the
County of Weld.State of Colorado.described as fotows,to wit -
Towashm 2 Noah.tame 61 Wee MAP M
Swim 23: A pine or meet of land 20 fees wide silly*50 reef right of the
oeata IS of the rutty for AWP 7007.E and mad ro We West Swim line Orr
centedinelbM asai edwidtin the boundaries 011ie NW/4.Swim 23-more
mime*described as follows;
&ytmobg at a point from i tich We Northwest Cotner tars Westerly 50 feet .
cad North 0 dense 13 minutes East 21.9 feel,mote clew:Theme South 0 degrees
13 mmuto Wen 2t53.0 feet,maw or less,m a East and West Diviriuo fonts:
Thence Easterly 20 feet,ideas the said division Sec Theme North 0 degrees 13
minus East 2153A foe,to the Nonb boundary fences(tho slid NW/4 of Station
23; hams Westaty aloes the said bomdaty from,a Sane of 20 feu to the point ofhesinniog.
catloudng 0.988 saes.mac or less.
1. It is agreed that the lease shall remain in forte for a term of three(3)years from this date and
as long thereafter as oil or gas of whatsoever nature or kind is produced from said leased premises or on
acreage pooled therewith,or drilling operations we continued as hereinafter provided. If,at the expiration of
the primary term of this lease,al or gas is not being produced on the leased premises or on acreage pooled
therewith but Lessee is then engaged in drilling or re-working operations thereon, then this lease shall
continued in force so long as operations are being continuously prosecuted on the leased premises or on
acreage pooled therewith;and operations shall be considered to be continuously prosecuted if not more than
ninety (90) days shall elapse between the ceMpleton or abandonment of one well and the beginning of
operations for the driving of a subsequent well. If star discovery of oil or gas on said land or on acreage
pooled therewith,the production thereof should cease foam any cause after the primary term, this lease shall
not terminate if Lessee commences additional Wiling or re-working operations within ninety(90)days from
date of cessation of production or from date of completion of dry hale. If oil or gas shall be discovered and
produced as a result of such operations;at or aftertte expiration of the primary term of this lease,this lease
shall continue in force so long as oil or gas is produced from the leased premises or an acreage pooled
therewith.
2. This is a PAID-UP LEASE In consideration of the down cash payment, Lessor agrees that
Lessee shall not be obligated,except as otterwrse provided herein,to commence or continue any operations
during the primary term. Lessee may at any time or times during or after the primary term surrender this lease
as to all or any portion of said land and as to any state or stratum by delivering to Lessor or by filing for record
a release or releases.and be relieved of all obiaalon thereafter accruing as to the acreage surrendered.
I ("III 11111 II11" I1I 'll'I"11111 I'I"I 0111111 IIII Intl K:LSHELLshFOO1LGA5
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08/31/98 13:06 ENTECH OIL DIVISION 9 9703520242 N0.891 P003/008
•
•
WELD COUNTY OIL AND GAS LEASE
(Small Tract)
•
THIS AGREEMENT, made and entered into this r day of June , 19 98 , by
In WELD COUNTY, COLORADO, a political subdivision of the Sate of Colorado acting by and thro
and of County Commissioners of the County of Weld, do Weld County Centennial Center, 915 1
Greeley, CO 80631, hereinafter called Lessor, and:
•
North American Resources Company, 1700 Broadway, Suite 2000, Denver, Colorado 80290
after called Lessee.
•
WITNESSETH, that Lessor, for and in consideration of the sum of$ 200.0o , ca&
iaid, the receipt of which is hereby acknowledged, and the covenants and agreements hereina
aed, has granted, demised, leased and let, and by these presents does grant, demise, lease anc
ively unto the said Lessee, the land hereinafter described, with the exclusive right for the purpost
, exploring by geophysical and other methods, and operating for and producing therefrom; oil anc
whatsoever nature or kind, with rights of way and easement for laying pipe lines, and erectior
res thereon to produce, save and take care of said products, all that certain tract of land situated in
of Weld. State of Colorado, described as follows, to wit
Township 2Nonit.Runge 68 West.6th PM,
Section 23: A piece or parcel of land 20 feet wide and lying 50 feet tight of the
center line of the sunny for AWP 7007-B and parallel to the West Section line or •
centcrline)and contained within the boundaries of the NW/4,Section 23.more
particularly described as follows:
Beginning at a point from which the Northwest Comex bears Westerly 50 feet
and North 0 degrees 13 minutes East 21.9 feet,more or less;Thence South 0 degrees
13 minutes West 2153.0 feet,more or less,to a East and West Division fence;
Thence Easterly 20 feet,along the said division fence;Thence North 0 degrees 13
minutes East 2153.0 feet,to the North boundary fence of the said NW/4 of Section
23; Thence Westerly along the said boundary fence,a distance of 20 feet to the point of beginning.
containing 0.988 acres,more or less.
1. It is agreed that the lease shall remain in force for a term of three (3) years from this date
3 thereafter as oil or gas of whatsoever nature or kind is produced from said leased premises or
e pooled therewith, or drilling operations are continued as hereinafter provided. If, at the expiratior
nary term of this lease, oil or gas is not being produced on the leased premises or on acreage poc
ith but Lessee is then engaged in drilling or re-working operations thereon, then this lease si
....� :n fans en Inns sae nnnraiinne era hainn rnnlins int ich, nmcW9lted nn the leased nmmices or
08/31/98 13:0? ENTECH OIL DIVISION -' 97035216242 NO.891 P004/008
•
3. In consideration of the premises We said Lessee covenants and agree to pay Lessor one-
eighth(1/8)of the proceeds received by Lessee,payable monthly, for the oil, gas and other hydrocarbons
produced and saved from the leased premises. -
4. Where gas from a well capable of producing gas is not said or used, Lessee may pay or
tender as royalty to Lessor One Dollar per year per net mineral acre owned by Lessor and covered by this
lease,such payment or tender to be made on or bthm the anniversary date of this lease next ensuing after
the expiration of 90 days from the date such well n shut in and thereafter on or before the anniversary date
of this lease during the period such well is shut is. If such payment or tender is made,it will be considered
that gas is being produced within the meaning ofiis lease.
•
5. If said Lessor owns less than themere oil and gas fee simple estate in the above described
lands,then the royalties(including any shut-in gas royalty)herein provided for shall be paid the said Lessor
only in the proportion which Lessor's interest bears to the entire oil and gas mineral fee simple estate.
6. Lessee shall have the right to use.free of cost or royalty,gas,oil and water produced on said
land for Lessee's operations thereon, except water from the wells of Lessor.
7. When requested by Lessor, Lessee shall bury Lessee's pipe lines below plow depth. •
6. No well shall be ddled nearer that 200 feet to any occupied building on said premises without
the written consent of Lessor.
9. Lessee shall have the right at any time to remove all of Lessee's machinery and fixtures
placed on said premises, including the right to draw and remove casing.
10. The rights of Lessor and Lessee beveunder may be assigned in whole or in part No change
In ownership of Lessor's interest(by assignrneMor otherwise)shall be binding on Lessee until Lessee has
been furnished with notice,consisting of certified copies of all recorded instruments or documents and other
information necessary to establish a complete chair of record title from Lessor, and then only with respect to
payment thereafter made. No other kind of notice;whether actual or constructive, shall be binding upon
Lessee. No present or f rhxe division of Lessor's arership as to difference portions or parcels of said land•
shall operate to enlarge the obligations or diminish the rights of Lessee,and all Lessee's operations may be
conducted without regard to any such division. If all or any part of this lease is assigned, no leasehold owner
shall be gable for any act or omission of any other leasehold owner.
11. Lessee,at its option,is hereby glom the right and power at any time and from time to time
as a recurring right,either before or after production,as to all or any part of the land described herein and as
to any one or more of the formations hereunder,b pool or unite the leasehold estate and the mineral estate
covered by this lease with other land, lease or leases in the immediate vicinity for the production or of and
gas,or separately for the production or either,when in Lessee's judgment it is necessary or advisable to do
so,and irrespective of whether authority similar to his exists with respect to such other land, lease or leases.
Likewise,units previously formed to include formations not producing oil or gas may be reformed to exdude
such non-producing formations. The forming or reforming of any unit shall be accomplished by Lessee
executing and filing of record a declaration of such unitization or reformation,which declaration shall describe
the unit. My unit may include land upon whidi a well has theretofore been completed or upon which
operations for drilling have theretofore been commenced. Production, drilling or reworking operations or a
well shut in for want of a market anywhere on a obit which includes all or a part of this lease shall be treated
as if it were production,daring or reworking opera on or a well shut in for want of a market under this lease.
In lieu of the royalties elsewhere herein specified,including shut-in gas royalties, Lessor shall receive on
production trait the unit so pooled royalties only Bathe portion of such production allocated to this lease;such
allocation shall be that proportion of the unit production that the total number of surface acres covered by this •
I 1110 11111 11111 III 111111 111111 III 11111 il IIII KISNELLSIFOOtLaAS
2620621 e6/ll/1228 10:t11tht weld County CD lj ,/ )-`1/6'
08/31/98 13:07 ENTECH OIL DIVISION 4 9703520242 NO.891 P005/008
rr .
lease and included in the unit bear to the total number of.surface acres In such unit _In addition to the
foregoing.lessee shall have the right to unitize, pool or combine all or any part of the above described lands
as to one or more of the formations thereunder with other lands in the same general area by entering into a
cooperative or unit plan of development or operation approved by any governmental authority and, from time
to time,with Ike approval,to modify,change or terminate any such plan or agreement and,in such event the
terms,conditions and provisions of this lease shall be deemed modified to conform to the terms,conditions
and provisions of such approved cooperative or unit plan of development or operation and, particularly, all
drilling and development requirements of this lease,express or impled, shall be satisfied by compliance with
the drilling and development requirements of such plan or agreement. and this lease shall not terminate or
expire during the life or such plan or agreement In the event that said above described lands or any part
thereof shall hereafter be operated under any such cooperative or unit plan of development or operation
whereby the production therefrom is allocated to different portions of the land covered by said plan, then the
production allocated to any particular tract of land shalt for the purpose of computing the royalties to be paid
hereunder to Lessor, be regarded as having been produced from the particular tract of land to which it is
allocated and not to any other tract of land;and the royalty payments to be made hereunder to Lessor shall
be based upon production only as'so allocated. Lessor shall formally express Lessor's consent to any
cooperative or unit plan of development or operation adopted by Lessee and approved by any governmental
agency by executing the same upon request of Lessee.
•
12. Al express or implied covenants of this lease shall be subject to all Federal and State laws,
executive orders,rules or regulations, and this lease shall not be terminated, in whole or in part, nor Lessee
held liable in damages, for failure to comply therewith,If compliance is prevented by,or if such failure is the
result of, any such law,order, rile or regulation.
13. Lessor does not warrant title to the leased premises. but it shad,upon request,allow Lessee
access to such abstracts and other title papers as it has in its files. Lessee shall have the right at any time
to redeem for Lessor, by payment any mortgages,taxes or other liens on the above described lands in the
event of a default of payment by Lessor, and be subrogated to the rights of the holder thereof.
• 14. Lessee shall indemnify Lessor against al liability and loss,and against all claims and actions,
including the defense of such claims or actions,based upon or arising out of damage or injury,including death,
to persons or property caused by or sustained in connection with operations on this leased land or by
conditions created thereby,or based upon any violation of any statute,ordinance or regulation.
15. Upon failure or default of Lessee to amply with any of the terms and provisions hereof
• including but not limited to the failure to comply with laws,rules and regulations covering Colorado oil and gas
operations, Lessor is hereby authorized upon notice and faltering,as hereinafter provided,to cancel this lease
as to all of the leased land so claimed or possessed by Lessee hereunder. In the event of any such default
or failure, Lessor shall, before making any such cancellation, send to Lessee by certified mail,.tb;the post
office address of said lessee as shown by the records of Lessor,a notice or intention to cancel to such failure
or default, specifying the same, stating that if within thirty (30)days from the date of mallithg said Site,
Lessee shall correct such failure or default, no cancelation will be made. If such failure or default is not
corrected with thirty(30)days after the mailing of such notice,and if Lessee does not'request a hearing on
such notice within thirty(30) days,this lease will terminate and be cancelled by operation of the paragraph
without further action by Lessor, or further notice to Lessee.
16. All of the provisions of this lease shall be binding upon the heirs, personal representatives,
successors and assigns of Lessor and Lessee.
11111111111111111 III IIIIII 11111111111 Ill 11111 IIII III
2829621 06/19/1888 18.0/A Meld County CO
3 of 4 R 0.00,D 0.06 JO Sukt Teukaeeto
(Revised 3193) 3 K:ISHELLS1FOOtLGAS
08/31/98 13:08 ENTECH OIL DIVISION-* 9703520242 NO.891 P006/008
1 4..-r:
Z
17. Lessee shall not conduct operations of any kind upon the surface of the lands herein
described without the express written consent of Lessor.
' IN IMTNESS WHEREOF,this instrument is executed as of the date first above written.
BOARD OF COUNTY COMMISSIONERS
WE COUNTY,COLORADO
' 1inTr' �'9`Ls��`
ATTEST: A ' ; 4
4k.e. /Old de klitl:eil.
.-t. am 44.4..A.A.,/ - -,/ vthr1/4
Weld County
By: c� I� 4 1
(-0- 101/98) .
STATE OF IIIIIWatiegi ) North American Resources Company
SILVERHOW ) sa. Jams J. Benner, Vice-President and
COUNTY OF ANta ) General Manager
The foregoing instrument was acknowledged before me this 7 day of May , 199g,
by James". Benner, Vice-President and General Manager of North American
. , any
agd official seal. My commission expires: 5-94-1-#` 96
flL3 I ' Public
e
4Pr OI N4 e near
111111111111111111111111111111111111 I 111111111111111
2420821 M/10/1000 10e000 Mold County CO
• 4 of 4 R 0.00 0 0.00 JR Saki Timken!.
(Revised ama) 4 K;%SH U.SSII�FOOILGAS/
�i' Ti
08/31/98 13:08 ENTECH OIL DIVISION 4 9703520242 NO.891 P007/008
RESOLUTION
RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING OIL AND GAS
LEASE AND ACCEPT OFFER TO LEASE MINERAL ACRE -NORTH AMERICAN
RESOURCES COMPANY
•
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, North American Resources Company, 1700 Broadway, Suite 2000, Denver,
Colorado 80290, has requested that the bidding procedure be waived according to the policy as
set forth in the Weld County Administrative Manual for parcels less than five acres, on the
following described mineral acres:
Section 23, Township 2 North, Range 68 West of
the 6th P.M., Weld County, Colorado
WHEREAS, North American Resources Company is offering to lease the above
described mineral acres, containing .988 mineral acres, more or less, and
WHEREAS,the Board finds that the lease offer from North American Resources
Company in the amount of TWO HUNDRED AND NO/100 DOLLARS ($200.00), is acceptable,
with the further terms and conditions being as stated in said Oil and Gas Lease, a copy being
attached hereto and incorporated herein by reference.
• NOW,THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County, Colorado, that the request of North American Resources Company, to waive the
bidding procedure on an Oil and Gas Lease concerning the above described mineral acres, be,
and hereby is, granted. •
BE IT FURTHER RESOLVED by the Board that the offer of North American Resources
Company to lease mineral acres, as hereinabove stated, be, and hereby is, accepted.
980
• L, 193
pc : NARe. /iigvca
08/31/98 13:08 ENTECH OIL DIVISION 4 9703520242 NO.891 P008/008
WAIVE BID PROCEDURE-NORTH AMERICAN RESOURCES COMPANY
PAGE 2 •
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 1st day of June, A.D., 1998. •
BOARD OF COUNTY COMMISSIONERS
rt I , I WELD COUNTY, COLORADO
ATTEST: gee 4 �% _.. __ a ----. .
trJn'
�• onstance L. Harbert, Chair
Weld County Clerk to the �,+;',� I i ;��.
'%tug•'/
' � . H.W ter, Pro-Tern
BY: �_/. _'I�.1
Deputy Clerk to the Boat (if NI \ t
I e . Baxter
A D AS TO F M:
Dale K. Hall
unty Attomey biliht nwl 47,th..---
Barbara J. Kirkmeyer
•
• 98
•
193
•
98i9V'�
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: L �/
my ttgmey
DATE: f L7c: _.
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