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4054037 Pa n: 1 of 3
10/15/2014 10:59 RII R Fee:521.00
Sieve Moreno, Clerk end Recorder, Weld County, CO
lIII Nlr1PYtIk.:IrihIirilI4lia'1? l;U I E"iiiid 1111 I
OIL AND GAS LEASE
Form#MRIP88a
This Oil and Gas Lease("Lease")is made this 12th day of September,2014 by and between Naranjo Investments LLC whose address is 1863 2
AVE GREELEY,CO 80631, ('Lessor",whether one or more) and MINERAL RESOURCES,INC.,whose address is P.O.Box 328,GREELEY.
COLORAO080632("Lessee").
WITNESSETH, For and in Consideration of TEN DOLLARS, the covenants and agreements contained herein, and other good and
valuable consideration the receipt and sufficiency of which are hereby acknowledged,Lessor does hereby grant,demise,lease and let exclusively
unto said Lessee,with the exclusive rights for the purposes of mining,exploring by geophysical and other methods and operating for and producing
therefrom oil and all gas of whatsoever nature or kind(including coalbed gas),and laying pipelines,telephone and telegraph lines,building tanks,
plants-power stations,roadways and structures thereon to produce,save and take care of said products(including dewatering of coalbed gas wells),
and the exclusive surface or subsurface rights and privileges related in any manner to any and all such operations,and any and all other rights and
privileges necessary,incident to,or convenient for the operation alone or conjointly with neighboring land for such purposes,all that certain tract or
tracts of land situated in Weld County, Colorado,described to wit:
TOWNSHIP 5NORTH RANGE 65 WEST.6TH P.M
SECTION 5: PART OF THE SW/4SW/4 BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
NORTH 50'LOT 9-10&W20'NORTH 50'LOT II,BLOCK 77,ALSO KNOWN AS 10209 _
AVENUE GREELEY,COLORADO
INCLUDING ALL STRIPS AND PARCELS OF LAND CONTIGUOUS THERETO OR IN SAID
SECTION.
CONTAINING 0.1377 ACRES,MORE OR LESS(the"Premises")
INotwithstanding anything to the contrary herein contained,this lease is a"No Surface Occupancy"Oil and Gas Lease.It is agreed and understood
that Lessee its successors or assigns shall not conduct any operations or locale any facilities on the surface of the leased lands.It is understood that
Lessee,its successors or assigns shall not be allowed any access to the surface of the leased lands without written consent of Lessor.It is further
agreed that Lessee shall have the right to drill and operate directional wells through and under said land irrespective of the bottom hole locations of
said wells.To this end,Lessor hereby grants to Lessee a subsurface easement for all purposes associated with such directional wells.
I. It is agreed that this Lease shall remain in full force for a term of five(5)years from this date("Primary Tenn")and as long thereafter
as oil or gas of whatsoever nature or kind is produced from the Premises or on acreage pooled or unitized therewith,or operations are continued as
hereinafter provided. Al any time during the Primary Term of this Lease.Lessee,at its option may make tender to Lessor payment in the amount of
S100 per net mineral acre,thereby extending the Primary Term of this Lease by an additional five(5)years. If,at the expiration of the Primary
Term,oil or gas is not being produced from the Premises or on acreage pooled or unitized therewith but Lessee is then engaged in drilling,reworking
or dewatering operations thereon,then this Lease shall continue in force so long as such operations are being continuously prosecuted. Operations
shall be considered to be continuously prosecuted if not more than ninety(90)days shall elapse between the completion or abandonment of one well
and the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on the Premises or on acreage pooled or unitized
therewith,the production thereof should cease from any cause after the primary temt,this Lease shall not terminate if Lessee commences additional
drilling,reworking or dewatering operations within ninety(90)days from date of cessation of production or from date of completion of a dry hole. If
oil or gas shall be discovered and produced as a result of such operations at or after the expiration of the Primary Term,this Lease shall continue in
force so long as oil or gas is produced from the Premises or on acreage pooled or unitized therewith.
2. This is a PAID-UP LEASE. In consideration of the payment made herewith,Lessor agrees that Lessee shall not be obligated,except
as otherwise 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 the Premises and as to any strata or stratum,by delivering to Lessor or by filing for
record a release or releases,and be relieved of all obligations thereafter accruing as to the acreage surrendered.
3. The royalties to be paid by Lessee are: (a)on oil and other liquid hydrocarbons,14%of that produced and saved from said land,the
same to be delivered at the wells,or to the credit of Lessor into the pipeline to which the wells may be connected;Lessee may from time to time
purchase any royalty oil in its possession,paying the market price therefore prevailing for the field where produced on the date of purchase;(b)on
gas and the constituents thereof produced from said land and sold or used off the premises or In the manufacture of products therefrom,the market
value at the well of 14%of the product sold or used. On product sold at the well,the royalty shall be 14%of the net proceeds realized from such
sale. All royalties paid on gas sold or used off the premises or in the manufacture of products therefrom will be paid after deducting from such
royalty Lessor's proportionate amount of all post-production costs,including but not limited to gross production and severance taxes,gathering and
transportation costs from the wellhead to the point of sale,treating,compression,and processing. On product sold at the well,the royalty shall be
14%of the net proceeds realized from such sale,after deducting from such royalty Lessors proportionate amount of all of the above post-production
costs and expenses,if any.
4. Where gas from a well capable of producing gas(or from a well in which dewatering operations have commenced),is not sold or
used after the expiration of the Primary Term,Lessee shall pay or tender as royalty to Lessor at the address set forth above One Dollar(SI.00)per
year per net mineral acre,such payment or tender to be made on or before the anniversary date of this Lease next ensuing after the expiration of
ninety(90)days from the dare such well is shut in or dewatering operations are commenced and thereafter on or before the anniversary date of this
Lease during the period such well is shut in or dewatering operations are being conducted.
5. If Lessor owns a lesser interest in the Premises than the entire and undivided fee simple estate therein,then the royalties(including
any shut-in gas royalty)herein provided for shall be paid Lessor only in the proportion which Lessor's interest bears to the whole and undivided fee.
6. Lessee shall have the right to use,free of cost,gas,oil and water produced on the Premises for Lessee's operations thereon.except
water from the wells of Lessor.
7. When requested by Lessor,Lessee shall bury Lessee's pipeline below plow depth.
8. No well shall be drilled nearer than 200 feet to the house or barn now on the Premises without written consent of Lessor.
9. Lessee shall pay for damages caused by Lessee's operations to growing crops on the Premises.
10. Lessee shall have the right at any time to remove all machinery and fixtures(including casing)Lessee has placed on the Premises.
II. The rights of the Lessor and Lessee hereunder may be assigned in whole or part. No change in ownership of Lessor's interest(by
assignment or otherwise)shall be binding on Lessee until Lessee has been famished with notice, consisting of'certified copies of all recorded
instruments or documents and other information necessary to establish a complete chain of record title from Lessor.and then only with respect to
payments thereafter made. No other kind of notice,whether actual or constructive,shall be binding on Lessee. No present or future division of
Lessor's ownership as to different portions or parcels of the Premises 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
liable for any actor omission of any other leasehold owner.
12. Lessee,at its option,is hereby given 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 Premises and as to any one or more of the formations thereunder,to pool or unitize the leasehold estate and the
mineral estate covered by this Lease with other land,lease or leases in the Immediate vicinity for the production of oil and gas,or separately for the
production of either,when in Lessee's judgment it is necessary or'advisable to do so,and irrespective of whether authority similar to this 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
Ilium IIIIIIIIIIILIII milli070/4-1/0a3
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exclude 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 Any unit may include land upon which a well has
theretofore been completed or upon which operations for drilling have theretofore been commenced. Production,drilling,reworking or dewatering
operations or a well shut in for want ofa market anywhere on a unit which includes all or a part of this Lease shall be treated as if it were production.
drilling,reworking or dewatering operations 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 royalties on production from such unit only on the 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 Lease and included
in the Unit bears 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 Premises 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 like approval,to modify,
change or tenninare 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 implied,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 of such plan or agreement. In the event that the Premises 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 shall,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 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
13. All express or implied covenants of this Lease shall be subject to all Federal and Slate Laws,Executive Orders.Rules or Regulations,
and this Lease shall not be terminated, in whole or In pan,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,Rule or Regulation. Any delay or interruption caused by storm,flood,act of
God or other event of force majeure shall not be counted against Lessee. If,due to the above causes or any cause whatsoever beyond the control of
Lessee,Lessee is prevented from conducting operations hereunder,such time shall not be counted against Lessee,and this Lease shall be extended
for a period of time equal to the time Lessee was so prevented,anything in this Lease to the contrary notwithstanding.
14. Lessor hereby agrees that the Lessee shall have the right at any lime to redeem for Lessor by payment any mortgages,taxes or other
liens on the above described lands,in the event of default of payment by Lessor,and be subrogated to the rights of the holder thereof,and the
undersigned Lessors,for themselves and their heirs,successors and assigns,hereby surrender and release all right of dower and homestead in the
Premises,insofar as said right of dower and homestead may in any way affect the purposes for which this Lease is made,as recited herein.
15. Should any one or more the parties named as Lessor herein fail to execute this Lease,it shall nevertheless be binding upon all such
parties who do execute it as Lessor. The word"Lessor",as used in this Lease,shall mean any one or more or all of the parties who execute this
Lease as Lessor. All the provisions of this Lease shall be binding on the heirs,successors and assigns of Lessor and Lessee.
16. If at any time within the primary term of this lease and while the same remains in force and effect,Lessor receives any bona fide offer,
acceptable to Lessor,to grant an additional lease(top lease)covering all or part of the aforedescribed lands,lessee shall have the continuing option
by meeting any such offer to acquire such top lease. Any offer must be in writing, and must set forth the proposed Lessee's name, bonus
consideration and royalty consideration to be paid for such lease,and include a copy of the lease form to be utilized which form should reflect all
pertinent and relevant terms and conditions of the top lease. Lessee shall have fifteen(15)days after receipt.from Lessor,ofa complete copy of any
such offer to advise Lessor in writing of its election to enter into an oil and gas lease with Lessor on equivalent terns and conditions If Lessee fails
to notify Lessor within the aforesaid fifteen(15)day period of its election to meet any such bona fide offer,Lessor shall have the right to accept said
offer.
IN WITNESS WHEREOF,this instrument is executed as of the date first above written.
Naranjo Investments LLC
STATE OF
)SS.
COUNTY OF
BEFORE ME,the undersigned,a Notary Public,in and for said County and State,on this_day of 2014,
personally appeared as the of Naranjo Investments LLC,to me known
to be the identical persons described in and who executed the within and foregoing instrument of writing,acknowledged to me that they duly executed
the same as their free and voluntary act and deed for the uses and purposes therein set forth.
IN WITNESS WHEREOF,I have hereunto set my hand and affixed my notarial seal the day and year last above written.
My Commission Expires
Notary Public.
4054037 Pages: 2 of 3
sOw:Snoreta,fd art 9 and Recorder.r Wald County, co When recorded return to:
����II�111Y�Rr�Ith'r*L'h�LIY(�A�9 YAL'ghNrYilik t 11III Mineral Resources,Inc.
P.O.Box 328
Greeley,CO 80632
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S� 3355899 01/19/2006 10.42A Weld County, CO
1 of 1 R 6.00 D 17.89 Steve Moreno Clerk& Recorder
•
WHEN RECORDED RETURN TO:
Naranjo Investments, LLC, a Colorado limited liability company
1863 2nd Avenue SDF $17.89
Greeley, CO 80631
SPECIAL WARRANTY DEED
THIS DEED, dated January 17, 2006', between
American Cancer Society, Great West Division, Inc., a Colorado non-profit
corporation formerly known as American Cancer Society, Colorado Division,
Inc.;a Colorado non-profit corportion,
duly organized and existing under and by virtue of the laws of the State of Colorado,
grantor(s), and
Naranjo Investments, LLC, a Colorado limited liability company,
whose legal address is 1863 2nd Avenue, Greeley, CO 80631, of the County of Weld and State of Colorado
grantee(s):
WITNESS, that the grantor(s), for and in consideration of the sum of One Hundred Seventy Eight Thousand
Nine Hundred and 00/100 Dollars ($178,900.00), the receipt and sufficiency of which is hereby acknowledged,
has granted, bargained, sold and conveyed, and by these presents does grant, bargain, sell, convey and confirm, unto
the grantee(s), his heirs and assigns forever, all the real property, together with improvements, if any, situate, lying
and being in the County of Weld and State of Colorado, described as follows:
The North 50 feet of Lots 9 and 10, and the West 20 feet of the North 50 feet of Lot 11, Block 77, in the City
of Greeley, County of Weld, State of Colorado.
also known by street and number as: 1020 9th Avenue, Greeley, CO 80631
TOGETHER with all and singular the hereditaments and appurtenances thereunto belonging,or in anywise
appertaining, and the reversion and reversions, remainder and remainders, rents, Issues and profits thereof, and all the
estate, right, title, interest, claim and demand whatsoever of the grantor(s), either In law or equity, of, in and to the
above bargained premises, with the hereditaments and appurtenances;
TO HAVE AND TO HOLD the said premises above bargained and described with the appurtenances, unto the
grantee(s), his heirs and assigns forever. The grantor(s), for itself, its successors and assigns, does covenant and agree
that it shall and will WARRANT AND FOREVER DEFEND the above-bargained premises in the quiet and peaceable
possession of the grantee(s), his heirs and assigns, against all and every person or persons lawfully claiming the whole or
any part thereof, by, through or under the grantor(s), except general taxes for the year 2006 and subsequent
years,and except easements, covenants, conditions, restrictions, reservations,and rights of way of record, if
any.
The singular number shall include the plural, the plural the singular, and the use of any gender shall be applicable to
all genders.
IN WITNESS WHEREOF, the grantor has executed this deed on the date set forth above.
erican Cancer Societ , Great West Division, Inc., a Colorado non-profit corporation formerly known as American
Can r Society, Cob =d•l'vision, Inc., a Colorado non-profit corportion
BY Leje
w SC,J•
STATE OF WASHINGTON
)SS
COUNTY OF K1 r\9s
12
The foregoing instrument was acknowledged before me on January* , 2006 byC(10.rIts W.kGrovY as
C S o n f of American Cancer Society, Great West Division, Inc., a Colorado non-profit corporation formerly
known as American Cancer Society, Colorado Division, Inc., a Colorado non-profit corportion. t:• +o
Witness my hand and official seal. / V • ' ';ba ' '
My Commission Expires: S/,t9/a00 9 ota Public slJ .J'0.1)•
W w4.OM•
CO F.
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File No.TNGR0001199 'TAIA Y,� ` (f1(t
DOC-SWD Corp to Indv � l�ll7C �l_1
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