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SIGN OIL DIVISION ORDER
MARLIN OIL COMPANY
SECTION 27, TOWNSHIP 7 NORTH, RANGE 67 WEST:
WHEREAS, on November 6, 1974 , Weld County, Colorado,
executed an oil and gas lease with Marlin Oil Company covering
a portion of Section 27, Township 7 North, Range 67 West, and
WHEREAS , Marlin Oil Company has submitted an oil and
gas division order on subject property,
NOW, THEREFORE, BE IT RESOLVED, by the Board of County
Commissioners, Weld County, Colorado, that they do hereby sign
the oil and gas division order as submitted by Marlin Oil Com-
pany.
The above and foregoing resolution was, on motion duly
made and seconded, adopted by the following vote this 25th
day of February, 1976.
THE BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
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_ COUNTY CLERK AND RECORDER
AND CLERK TO THE BOARD
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Deputy County Cl-rk
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ecial Leg aft Counsel
763
LHR 416
NEW
DIVISION ORDER
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TO: WESTERN CRUDE OIL, INC. Lease No. 55675
P.O. Box 5568
Denver, Colorado 80217 Date February 12 , 1976
The undersigned, and each of them, guarantee and warrant that they are the legal owners of their respective interests, in
the proportions hereinafter stated, in all oil produced and saved from the
MARLIN OIL COMPANY - DENNY SCHLAGEL 1 & 2 lease,
located in WELD County, State of COLORADO , described as:
Township 7 North, Range 67 West, 6th P.M.
Section 27: NW/4 SE/4 & SE/4 SE/4
Limited to the Sussex and Shannon formations only
Effective at 7:00 A.M. DATE OF FIRST OIL RUN , and until further written notice, you are authorized
to receive all such production, for your own purchase or for resale, to receive payment therefor, to give credit for all proceeds
derived therefrom and pay therefor as follows:
OWNER NO. CREDIT TO DIVISION OF INTEREST
*FOR DIVISION OF INTEREST SEE EXHIBIT "A" ATTACHED
HERETO AND MADE A PART HEREOF.
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 essential part of this division order in like manner and with the same effect as if
printed above our signatures.
GN�l TTuI�g�,gg QO�� p�y�.7gg SOCIAL SECURITY OR
SIGNATURE OF WITNE S BOARD IOFA INglTY COMMISSIONERS TAX I.D. NUMBER
xdTTEST Atcc ', riftD COUNTY COLORADO x ''84-6000813
A
COUNTY CLERK & RECORD R
AND CLERK TO THE OARD saaL ,>? t'
•`1eup County Clerk i
MAIL CHECKS TO FOLLOWING ADDRESS: '6• O. Box 758
Greeley, Colorado 80631
Zip
The following covenants are also part of this division order and shall become valid and binding upon each and every in-
terest owner above named upon execution hereof by such interest owner, and upon his or her successors, legal representatives
and assigns, without regard to whether any other interest owner or owners have so signed.
FIRST: All oil received and purchased hereunder shall be merchantable oil and 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 interests
herein specified at the price being posted or paid by you at the time of such delivery; provided, however, that whenever it shall
become necessary to truck oil from the leased premises, the additional costs resulting therefrom shall be deducted from the pur-
chase price prior to computing payments to be made hereunder. The term "oil" as used in this division order, shall include all
marketable liquid hydrocarbons.
THIRD: You shall compute quantity and quality, making corrections for temperature and deductions for impurities, accord-
ing to the customs and prevailing practice in effect at the time and place of delivery and subject to rules and regulations
prescribed by any governmental authority having jurisdiction in the premises.
FOURTH: Payments shall be made monthly for oil received and purchased during the preceding month, by your checks
delivered or mailed to the respective parties at the addresses above stated; provided that if, at any time, the monthly payment
due any party hereunder shall be less than five dollars ($5.00), you may defer such payment, without interest, until the amount
payable to such party equals or exceeds the sum of five dollars in which event, payment shall be made at the next regular set-
tlement date. You are hereby authorized to withhold from the proceeds of any and all runs made hereunder each interest own
er's proportionate share of any tax levied and assessed by any governmental authority on the oil received and purchased here-
under and to pay the same in our behalf.
FIFTH: Satisfactory abstracts or other evidence of title will be furnished to you at any time on demand. Upon failure to
furnish such evidence of title, or in the event of a claim or controversy which, in your opinion, concerns title to any interest
hereunder, you may withhold, without interest and without liability, proceeds of all oil received by you hereunder until you
have been furnished with indemnity satisfactory to you or competent evidence that such claim or controversy has been settled. In
the event any action or suit is filed affecting title either to the real property above described or to the production therefrom in
which any of the interest owners are parties, written notice thereof stating the court in which the same is filed shall be imme-
diately furnished to you by such owner against whom the action is commenced. Each interest owner agrees to hold you harm-
less and to protect and indemnify you against any and all loss, cost, expenses or liability which may arise from such suit.
SIXTH: Working interest owners and/or operators who execute this division order, and each of them, guarantee and war-
rant that all 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.
SEVENTH: No transfer of any interest or change in the right to receive payments hereunder, however accomplished, shall
be effective as to you until 7:00 A.M. on the first day of the calendar month in which you are furnished a proper division or
transfer order together with proof satisfactory to you evidencing such transfer or change in the right to receive payments here-
under, and you are hereby relieved of any and all liability for payments made prior to receipt of a proper transfer order and a
certified copy of the instrument of transfer.
EIGHTH: This division order shall remain in full force and effect until cancelled by any party hereto upon giving sixty
days written notice in advance of any such cancellation which shall be mailed to the respective parties at the addresses shown
herein. Cancellation by any interest owner or owners shall not be effective as to the interests of any other owner.
SP1272
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*EXHIBIT "A"
LEASE NO. 55675
OWNER 00. CREDIT TO DECIMAL INTEREST
ROYALTY INTEREST
53720 Richard H. Schlagel and
Joanne M. Schlagel J/T . 0625000
6316 William A. Schulte . 0022208
53721 Francis E. Koswan and
Leona R. Koswan . 0001796
53722 The Colorado National Bank
of Denver, Trustee .0035251
53723 Weld County .0030000
53724 Mason Haire .0028201
53725 Lloyd E. Graybiel . 0028201
53726 Norman J. Molter . 0141004
5141 E. Warren Willard . 0035251
53714 Joseph L. Raichle . 0017626
53718 Lawrence Oil Company . 0035251
53717 Harold A. Norblom and
First National Bank of
Nevada, Trustees .0035251
53719 Eleanor I. Johnson .0222081
53727 Thomas P. O' Rourke .0017625
OVERRIDING ROYALTY INTEREST
7376 Orville L. Sandberg .0039707
53707 Leonard J. Caranna, Trustee .0039707
53708 Robert Gensch . 0119120
19938 The Marlin Oil Company . 2477951
19938 The Marlin Oil Company (Unleased portion) . 0014100
WORKING INTEREST
53709 The Marlin Oil Company
A/C N. L. Koin . 5992368
53709 The Marlin Oil Company (Unleased portion)
A/C N. L. Koin .0042301
THIS EXHIBIT IS MADE A PART OF THIS DIVISION ORDER AND
SHOULD NOT BE REMOVED:
TELEPHONE:2,2,[ MC
THE MARLIN OIL COMPANY 573-1921
DENVER CLUB BUILDING
FIB 17TH STREET
DENVER,COLORADO 80202
February 16 , 1976
RE : #1 & #2 Denny-Schlagel
Dear Interest Owner:
Enclosed are two copies of a Division Order, from
Western Crude Oil, Inc. , covering your interest under
the subject wells .
If the interest set forth in the Division Order
meets with your approval, please execute and return one
copy to our office. Be sure to include your mailing
address and Social Security or Tax ID number. We have
included a self-addressed, stamped envelope for your
convenience.
If you have any questions relative to the above,
please feel free to contact our office.
Very truly yours ,
/ I
Kathleen Sedgwick
Land Manager
ks/s
Encls.
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