HomeMy WebLinkAbout20133394.tiffRESOLUTION
RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING SMALL TRACT
OIL AND GAS LEASE, ACCEPT OFFER TO LEASE MINERAL ACRE, AND
AUTHORIZE CHAIR TO SIGN - PDC ENERGY
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, PDC Energy, 1775 Sherman Street, Suite 3000, Denver, CO 80203, has
requested that the bidding procedure be waived according to the policy as set forth in the Weld
County Code for parcels less than five acres, on the following described mineral acres:
NE1/4 SE1/4 of Section 2, Township 5 North,
Range 65 West of the 6th P.M., Weld County,
Colorado
WHEREAS, PDC Energy, is offering to lease the above described mineral acres,
containing .841 mineral acres, more or less, and
WHEREAS, the Board finds that the lease offer from P, in the amount of FIVE
HUNDRED AND FOUR AND 60/100 DOLLARS ($504.60), is acceptable, with the further terms
and conditions being as stated in said Small Tract 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 PDC Energy, 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 PDC Energy, to lease
mineral acres, as hereinabove stated, be, and hereby is, accepted.
BE IT FURTHER RESOLVED by the Board that the Chair, be, and hereby is, authorized
to sign said Small Tract Oil and Gas Lease.
de. 'PDC, , Put CA
Il1th\t�
2013-3394
LE0318
WAIVE BID PROCEDURE / SMALL TRACT LEASE - PDC ENERGY
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 11th day of December, A.D., 2013.
ATTEST:
Weld County Clerk to the Board
BY:
eputy Cle !' o the Bo
APPROVED AS O F
'"County Attorney
Date of signature: DEC 1 2 2013
BOARD OF COUNTY COMMISSIONERS
WELD COU,NtS', COLORADO
74A
F.
• Cnb4' Sk\4F l/
Douglafi Radem cher, Pro -Tern
can P. Conway
Mike Freeman
2
Barbara Kirkmeyer
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Steve Moreno Clerk and Recorder. Weld County. CO
11 111
WELD COUNTY SMALL -TRACT OIL AND GAS LEASE
Containing 0.841 acres, more or less:
Containing 0.841 net mineral acres, more or less:
THIS LEASE AGREEMENT, dated this 5th day of November , 20 13 , made and entered into
by and between WELD COUNTY, COLORADO, a political subdivision of the STATE OF COLORADO,
acting by and through the BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD, for its
respective interests, c/o BOARD OF COUNTY COMMISSIONERS, 1150 O STREET, P.O. BOX 758,
GREELEY, CO 80632, hereinafter called Lessor, and:
PDC Energy, Inc.
1775 Sherman Street, Suite 3000
Denver. CO 80203
hereinafter called Lessee:
WITNESSETH
WHEREAS, said Lessee has applied to Lessor for an oil and gas lease covering the land herein
described, and has paid a bonus consideration of $__600 00 per mineral acre, fixed by Lessor as
an additional consideration for the granting of this lease, and Lessee agrees to pay an annual rental of
$ 2.10 , computed at the rate of $2.50, per mineral acre or fraction thereof per year, and the
following consideration:
WHEREAS, all the requirements relative to said application have been duly complied with and said
application has been approved and allowed by Lessor;
THEREFORE, in consideration of the agreements herein, on the part of Lessee to be paid, kept and
performed, Lessor does lease exclusively to Lessee for the sole and only purpose of drilling for,
development of and production of oil and gas, or either of them, thereon and therefrom with the right to
own all oil and gas so produced and saved therefrom and not reserved as royalty by Lessor under the
terms of this lease, together with rights -of -way, easements and servitudes for pipelines, telephone and
telegraph lines, tanks and fixtures for producing and caring for such product, and housing and boarding
employees, and any and all rights and privileges necessary for the exploration and operation of said land
for oil and gas, the following described land situated in the County of Weld, State of Colorado, and more
particularly described as follows:
SECTION TOWNSHIP RANGE
2
5N 65W
DESCRIPTION OF LAND (attach exhibit if additional space is required)
That part of the right-of-way of State Highway No 263 lying in the NE/4SE/4
TO HAVE AND TO HOLD said land, and all the rights and privileges granted hereunder to Lessee
until the hour of twelve o'clock noon on the 5th day of November , 20 16 , as primary term., and so
long thereafter as oil and gas, or either of them, is produced in paying quantities from said land or Lessee
is diligently engaged in bona fide drilling or reworking operations on said land, subject to the terms and
2013-3394
LEO 31g
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Ste;e Moreno Clerk and Recorder. Weld County CO
Small -Tract Oil and Gas Lease
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Bill
conditions herein. Drilling or reworking operations shall be deemed to be diligently performed if there is
no delay or cessation thereof for a greater period than sixty (60) consecutive days, unless an extension in
writing is granted by Lessor; provided that such drilling or reworking operations are commenced during
said primary term or any extension thereof, or while this lease is in force by reason of production of oil
and gas or either of them, or that such reworking is commenced within (60) sixty days upon cessation of
production for the purpose of re-establishing the same, and provided further that such production is
commenced during such primary term or any extension thereof, or while this lease is in force by reason of
such drilling or reworking operations or other production.
EXPLORATION - Lessor reserves the right to conduct exploration on the leased land provided such
exploration does not interfere with rights granted herein.
In consideration of the premises, the parties covenant and agree as follows:
1. RENTAL - If this lease is extended for an additional term as provided for in the EXTENSION
paragraph hereof, Lessee shall pay to Lessor the sum of Two and 50/100 Dollars ($2.50) per
acre for the land covered hereby as delayed rental for the term of the extension. Rentals set at
the time of established production shall be paid during the remaining life of this lease, annually. in
advance, on or before each anniversary date hereof. There shall be no refund of unused rental.
2 ROYALTY PROVISIONS:
A. Lessee Responsible for All Costs/Expenses: Lessee shall account for any and all
substances produced on the leased land and shall pay to Lessor as royalty, in addition to the
rentals provided, the royalties described in paragraphs B through E below, which shall be free
of all costs of any kind. In this regard, Lessee agrees to bear one hundred percent (100%) of
all costs and expenses incurred in rendering hydrocarbons produced on or from the Leased
Premises marketable and delivering the same into the purchaser's pipeline for immediate
transportation to an end user or storage facility. If a gas purchase contract makes any
deductions for the expenses of dehydrating, transporting, compressing, manufacturing,
processing, treating, gathering or marketing of such gas, then such deductions shall be
added to the price received by Lessee for such gas for the purpose of the payment of
royalties to Lessor. Additionally, royalties payable to Lessor shall never bear, either directly
or indirectly, under any circumstances. the costs or expenses (including depreciation) to
construct, repair, renovate or operate any pipeline, plant, or other facilities or equipment used
in connection with the treating, separation, extraction, gathering, processing, refining,
transporting, manufacturing or marketing of hydrocarbons produced from the Leased
Premises or lands pooled therewith. It is the intent of the parties that the provisions of this
Paragraph 2 are to be fully effective and enforceable.
B. Royalty Payment on Products: On products, Lessee shall pay Lessor a royalty payment of
twenty-five percent (25%) of the gross market value or proceeds of sale thereof, whichever is
higher.
C. Royalty Payment on Residue Gas: On residue gas or gas remaining after separation,
extraction or processing operations. Lessee shall pay Lessor twenty-five percent (25%) of the
proceeds of sale or of the market value thereof, whichever is higher.
D. Royalty Payment on Oil: At the option of Lessor, and with sixty (60) days' notice to Lessee,
Lessor may take its royalty oil in kind, in which event Lessee shall deliver such royalty oil to
Lessor on the leased land, free of cost or deduction, into the pipelines or storage tanks
designated by Lessor, but Lessee shall not in such case be required to provide free tankage
for any such oil for a longer period than one month after the same is run into tanks. With
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Small -Tract Oil and Gas Lease
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sixty (60) days' notice to Lessee, Lessor may cease taking oil royalty in kind. When paid in
cash, Lessee shall pay Lessor for oil produced and saved from the leased land, twenty-five
percent (25%) the market value of the oil at the wellhead, or the price actually paid to Lessee
at the well by the purchaser thereof, whichever is higher; and in no event shall the royalties
be based upon a market value at the well less than the posted price in the field for such oil, or
in the absence of a posted price in the field for such oil, upon a market value at the well less
than the prevailing price received by other producers in the field for oil of like grade and
gravity at the time such oil is run into pipelines or storage tanks.
E. No Refund of Bonus: If Lessor owns a lesser interest in the oil and gas deposits of the
above -described land than the entire and undivided fee simple estate, then the royalties and
rentals herein provided shall be paid to Lessor only in the portion which its interest bears to
the whole and undivided fee, but no refund of any bonus consideration shall be made by
Lessor hereunder.
F. Timing of Royalty Payments: All royalties payable under the terms of this lease shall be
payable in cash (unless Lessor elects to take such royalty oil or gas in kind) to Lessor within
one hundred twenty (120) days following the first commercial sale of production and
thereafter no more than sixty (60) days after the end of the month following the month during
which production takes place. Subject to the provisions of Paragraph 16 of this Lease
concerning shut-in wells, royalties shall be paid to Lessor by Lessee and/or its assigns or by
the product purchaser for oil and/or gas. Upon the failure of any party to pay Lessor the
royalty as provided in this paragraph, Lessor may, at Lessor's option, elect to terminate this
Lease by sending written notice to Lessee. Lessee shall then have forty-five (45) days from
the date of service of such written notice in which to avoid termination of this Lease by
making or causing to be made the proper royalty payment or payments that should have
been paid. If such royalty payment is not made on, or before, the expiration of the 45 -day
period, or written approval is not obtained from Lessor to defer such payment, Lessor may
elect to terminate this Lease by filing a Notice of Termination with the Weld County Clerk and
Recorder. The effective date of said termination shall be the date said Notice of Termination
is recorded.
G. Effect of "Take or Pay Provision": In the event Lessee enters into a gas purchase contract
which contains what is commonly referred to as a "take or pay provision" (such provision
meaning that the gas purchaser agrees to take delivery of a specified minimum volume or
quantity of gas over a specified term at a specified price or to make minimum periodic
payments to the producer for gas not taken by the purchaser) and the purchaser under such
gas purchase contract makes payment to Lessee by virtue of such purchaser's failure to take
delivery of such minimum volume or quantity of gas, then Lessor shall be entitled to
twenty-five percent (25%) of all such sums paid to Lessee or producer under the "pay"
provisions of such gas purchase contract. Such royalty payments shall be due and owing to
Lessor within sixty (60) days after the receipt of such payments by Lessee. If the gas
purchaser "makes up" such gas within the period called for in the gas contract and Lessee is
required to give such purchaser a credit for gas previously paid for but not taken, then Lessor
shall not be entitled to royalty on such "make up" gas. If Lessee is not producing any
quantities of gas from the Leased Premises but is receiving payments under the "pay" portion
of such "take or pay" gas purchase contract provision, such payments shall not relieve
Lessee of the duty to make shut-in royalty payments if Lessee desires to continue this Lease,
but such "take or pay" royalty payments shall be applied as a credit against any shut-in
royalty obligation of the Lessee. Lessor shall be a third -party beneficiary of any gas purchase
contract and/or transportation agreement entered into between Lessee and any purchaser
and/or transporter of Lessor's gas, irrespective of any provision of said contracts to the
contrary, and such gas purchase contract and/or transportation agreement will expressly so
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provide. Further, Lessor shall be entitled to twenty-five percent (25%) of the value of any
benefits obtained by, or granted to, Lessee from any gas purchaser and/or transporter for the
amendment, modification, extension, alteration, consolidation, transfer, cancellation or
settlement of any gas purchase contract and/or transportation agreement.
H. Recovery of Liquid Hydrocarbons: Lessee agrees that before any gas produced from the
Leased Premises Is used or sold off the Leased Premises. it will be run. free of cost to
Lessor, through an adequate oil and gas separator of a conventional type or equipment at
least as efficient, to the end that all liquid hydrocarbons recoverable from the gas by such
means will be recovered on the lease and Lessor properly compensated therefor.
Excess Payments to Lessor: Any payment of royalty or shut-in gas royalty hereunder paid to
Lessor in excess of the amount actually due to the Lessor shall nevertheless become the
property of the Lessor if Lessee does not make written request to Lessor for reimbursement
within one (1) year from the date that Lessor received the erroneous payment, it being
agreed and expressly understood between the parties hereto that Lessor is not the collecting
agent for any other royalty owner under the lands covered hereby, and a determination of the
name, interest ownership and whereabouts of any person entitled to any payment
whatsoever under the terms hereof shall be the sole responsibility of Lessee. It is further
expressly agreed and understood that: (i) this provision shall in no way diminish the
obligation of Lessee to make full and punctual payments of all amounts due to Lessor or to
any other person under the terms and provisions of this Lease. and (ii) any overpayments
made to the Lessor under any provisions of this Lease shall not be entitled to be offset
against future amounts payable to parties hereunder.
J. Effect of Division Order: The terms of this Lease may not be amended by any division order
and the signing of a division order by any mineral owner may not be made a prerequisite to
payment of royalty hereunder.
K. Limitation of Sale to Subsidiaries and/or Affiliates: Oil, gas or products may not be sold to a
subsidiary or affiliate of Lessee as defined herein without the Lessor's prior written
permission.
L. Royalty Payable on All Gas Produced: Lessee shall pay Lessor royalty on all gas produced
from a well on the Leased Premises and sold or used off the Leased Premises, regardless of
whether or not such gas is produced to the credit of Lessee or sold under a contract executed
by or binding on Lessee. Should gas be sold under a sales contract not binding on Lessee,
Lessor's royalty will be calculated based on the highest price paid for any of the gas
produced from the well from which such gas is produced. In no event will the price paid
Lessor for Lessor's share of gas be less than the price paid Lessee for Lessee's share of
gas.
3. LESSOR'S ACCESS TO LEASED PROPERTY AND RECORDS
A. Records Generally: Lessee agrees to keep and to have in its possession complete and
accurate books and records showing the production and disposition of any and all
substances produced on the leased land and to permit Lessor, at all reasonable hours, to
examine the same. or to furnish copies of same to Lessor upon request along with
purchaser's support documentation. Lessor will not be unreasonable with requests. All said
books and records shall be retained by Lessee and made available in Colorado to Lessor for
a period of nct less than five (5) years.
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te e¶lorre o. Cle Clerk and Recorder,M R We0
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B. Access to Premises: Lessor shall have free access, at all times, to all wells, tanks, and other
equipment on the Leased Premises, including drilling wells, and Lessee agrees to furnish
Lessor, or Lessor's nominee, currently and promptly, upon written request, with full well
information including cores, cuttings, samples, logs (including Schlumberger and other
electrical logs), copies and results of deviation tests and directional and seismic surveys, and
the results of all drill stem tests and other tests of other kind or character that may be made of
wells on the Leased Premises. Lessor or Lessor's nominee shall be furnished with, and have
free access at all times to, Lessee's books and records relative to the production and sale of
oil, gas or other minerals from the Leased Premises, including reports of every kind and
character to local, State or Federal governmental authorities. Lessor shall have the right, at
its election, to employ gaugers or install meters to gauge or measure the production of all
minerals produced from the premises. and Lessee agrees to prepare and deliver to Lessor or
Lessor's gauger or nominee duplicate run or gauge tickets for all minerals removed from the
premises. Lessee shall furnish to Lessor daily drilling reports on each well drilled upon
request.
C. Gas Purchase Agreements/Gas Contracts: At least thirty (30) days prior to the delivery or
the execution of any contract for the sate, delivery, transporting or processing of gas
produced from the Leased Premises, Lessee shall provide Lessor with a complete copy of
each proposed contract for the purchase, transportation and/or processing of such gas that
Lessee intends to execute (each a "Gas Contract"). whereupon, Lessor may object if the
terms of said Gas Contract conflict with the terms and conditions of this Lease. Lessee shall
furnish to Lessor, within a reasonable time after its execution, a copy of any Gas Contract or
transportation agreement entered into in connection with the Leased Premises, or if there is
already a Gas Contract or transportation agreement in effect due to Lessee's operations in
the field, then a copy of that contract. Furthermore, a copy of any amendments to the gas
purchase contract or transportation agreement shall be furnished said Lessor within
thirty (30) days after execution thereof; and on request of Lessor and without cost to the
Lessor, Lessee shall furnish Lessor a copy of the following reports: core record, core
analysis, well completion, bottom hole pressure measurement, directional survey records,
electrical and induction surveys and logs, gas and oil ratio reports, paleontological reports
pertaining to the paleontology of the formations encountered in the drilling of any wells on the
Leased Premises, and all other reports which pertain to the drilling, completing or operating
of the wells located on the Leased Premises. Such information shall be solely for Lessor's
use, and Lessor shall attempt to keep same confidential for twelve (months after receipt,
subject to its obligation to comply with the Public Records requirements under Colorado law.
Lessee agrees that it will not enter into any contract for the sale, delivery, transporting or
processing of gas produced from the Leased Premises which shall extend more than two (2)
years from the effective date of such sales contract unless such contract has adequate
provisions for redetermination of price at intervals of no less frequency than one (1) year to
ensure that production from this Lease is not being sold for less than the then current market
value.
D. Lessee to Advise Regarding Well Status: Lessee shall advise Lessor, in writing, of the
location of all wells drilled upon the Leased Premises on or before thirty (30) days prior to
commencement of operations, and shall advise Lessor, in writing, the date of completion
and/or abandonment of each well drilled within thirty (30) days after completion or
abandonment.
4. MEASUREMENTS: All production shall be accurately measured using standards established by
the American Gas Association (AGA) and/or the American Petroleum Institute (API) and all
measuring devices shall be tamper proof as nearly as possible. Oil royalties due within the terms
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of this lease shall be calculated on actual and accurate measurements within API standards
unless a different means of measurement, subject to Lessor's approval, is provided.
5. PAYMENTS AND REPORTS: All payments and reports due hereunder shall be made on or
before the day such payments and reports are due. Nothing in this paragraph shall be construed
to extend the expiration of the primary term hereof. Oil royalty payments and supporting
documents shall be submitted prior to the last day of the month following each month's sale of
production, and gas royalty payments and supporting documents shall be submitted prior to the
last day of the second month following each month's sale of production. All payments shall be
made by cash, check, certified check, or money order. Payment having restrictions,
qualifications, or encumbrances of any kind whatsoever shall not be accepted by Lessor. A
penalty for a late payment shall be charged as set forth in the PENALTIES paragraph herein.
6. PENALTIES: A penalty shall be imposed for, but not limited to. late payments, improper
payments, operational deficiencies, violation of any covenant of this lease. or false statements
made to Lessor. Penalties shall be determined by Lessor, unless otherwise provided for by law,
and may be in the form of, but not limited to. interest, fees, fines, and/or lease cancellation. A
penalty schedule shall be prepared by Lessor and shall become effective immediately after public
notice. Said schedule may be changed from time to time after public notice.
7. LAW: The terms and conditions of this lease shall be performed and exercised subject to all
laws. rules, regulations, orders, local ordinances or resolutions applicable to, and binding upon,
the administration of lands and minerals owned by the County of Weld, and to laws, rules and
regulations governing oil and gas operations in Colorado. Violations shall result in penalties as
provided for by law or as set forth in the aforementioned schedule or shall. at the option of
Lessor, result in default as provided hereinafter.
8. SURRENDER: Lessee may at any time, by paying to Lessor all amounts then due as provided
herein, surrender this lease insofar as the same covers all or any portion of the land herein
leased and be relieved from further obligations or liability hereunder with respect to the land so
surrendered; provided that this surrender clause and the option herein reserved to Lessee shall
cease and become absolutely inoperative immediately and concurrently with the institution of any
suit in any court of law by Lessee, Lessor or any assignee of either to enforce this lease, or any of
its terms expressed or implied. In no case shall any surrender be effective until Lessee shall
have made full provision for conservation of the leased products and protection of the surface
rights of the leased land.
9 ASSIGNMENTS:
A. Fee for Assignments: Lessee, upon payment of a $100.00 fee and prior written consent of
Lessor (which shall not be unreasonably withheld), shall have the right to assign the entire
leasehold interest of said Lessee in all or part of the land covered hereby. Prior to written
approval by Lessor of assignment of this lease, Lessee (assignor) shall not be relieved of its
obligations under the terms and conditions herein. An assignment shall not extend the term
of this lease.
B. Partial Assignment: If any assignment of a portion of the land covered hereby shall be
approved, a new lease shall be issued to the assignee covering the assigned land, containing
the same terms and conditions as this lease, and limited as to term as this lease is limited,
and the assignor shall be released and discharged from all further obligations and liabilities
as to that portion so assigned.
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BD Pk:il : IN NII.1,1 4,AII1IW: iGVIto.ltilitW1'A 4'i UI III
C. Lessee to Notify: Lessee shall notify Lessor of all assignments of undivided percentage or
other interests. Said interests will not be recognized or approved by Lessor, and the effect of
any such assignments will be strictly and only between the parties thereto, and outside the
terms of this lease, and no dispute between parties to any such assignment shall operate to
relieve Lessee from performance of any terms or conditions hereof or to postpone the time
therefore. Lessor shall at all times be entitled to look solely to Lessee or his assignee shown
on its books as being the sole owner hereof, and for the sending of all notices required by this
lease and for the performance of all terms and conditions hereof.
D. Filing with Lessor: Although not binding on Lessor, all instruments of every kind and nature
whatsoever affecting this lease should be filed with the Lessor.
10. OVERRIDING ROYALTY: Any and all reservations or assignments or overriding royalties shall
be subject to approval by Lessor. The total of said overriding royalties shall not exceed
five percent (5%), including any overriding royalty previously provided for unless production
exceeds a monthly average of fifteen (15) barrels per day or ninety thousand cubic feet of gas per
day (90 MCF/D). In the event production drops to this amount or less, any overriding royalties
which exceed five percent (5%) may be suspended. Lessor's approval of a reservation or
assignment of an overriding royalty shall not bind Lessor for payment of said overriding royalty
and shall not relieve Lessee of any of its obligations for payment of royalties to Lessor as
provided by ROYALTY paragraphs herein.
11. OFFSET WELLS: Lessee agrees to protect the leased land from drainage by offset wells
located on adjoining lands not owned by Lessor, when such drainage is not compensated for by
counter -drainage. It shall be presumed that the production of oil and gas from offset wells results
in drainage from the leased land, unless Lessee demonstrates to Lessor's satisfaction, by
engineering, geological, or other data, that production from such offset well does not result in
such drainage, or that the drilling of a well or wells on the leased land would not accomplish the
purposes of protecting the deposits under the leased land. Lessor's decision as to the existence
of such drainage shall be final, and Lessee shall comply with Lessor's order thereon or surrender
this lease as to any such undeveloped acreage as designated by Lessor.
12. DEVELOPMENT. Upon discovery of oil and gas or either of them on the leased land, Lessee
shall proceed with reasonable diligence to develop said land at a rate. and to an extent,
commensurate with the economic development of the field in which the leased land lies.
13. POOLING CLAUSE. Lessee may at any time or times pool any part or all of said land or lease
or any stratum or strata with other lands and leases, stratum or strata, in the same field so as to
constitute a spacing unit to facilitate an orderly or uniform well -spacing pattern or to comply with
any order, rule, or regulation of the State or Federal regulatory or conservation agency having
jurisdiction. Such pooling shall be accomplished or terminated by filing of record a declaration of
pooling, or declaration of termination of pooling, and by mailing or tendering a copy to Lessor, or
to the depository bank. Drilling or reworking operations upon or production from any part of such
spacing unit shall be considered for all purposes of this lease as operations or productions from
this lease. Lessee shall allocate to this lease the proportionate share of production which the
acreage in this lease included in any such spacing unit bears to the total acreage in said spacing
unit.
14. UNITIZATION — COMMUNITIZATION: In the event Lessor permits the land herein leased to be
included within a communitization or unitization agreement, the terms of this lease may be
deemed to be modified to conform to such agreement. When only a portion of the land under this
lease is committed by an agreement, Lessor may segregate the land and issue a separate lease
for each portion not committed thereunder: the term of such separate lease shall be limited as to
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the original term of this lease. The terms of the lease on that portion remaining in the unit shall
be deemed to be modified to conform to such agreement. Non -producing leases shall terminate
on the first anniversary date of the lease following the termination date of the unit or part thereof
modifying the lease, but in no event prior to the end of the primary term of the lease or the
extension term of the lease.
15. PRODUCTION: Lessee shall, subject to applicable laws, regulations and orders, operate and
produce all wells upon the leased land so long as the same are capable of producing in paying
quantities, and shall operate the same so as to produce at a rate commensurate with the rate of
production of wells on adjoining lands within the same field and within the limits of good
engineering practice, except for such times as there exist neither market nor storage therefore.
and except for such limitations on, or suspensions of, production as may be approved in writing
by Lessor. Lessee shall be responsible for adequate site security on all producing properties.
16. SHUT-IN WELLS: If Lessee shall complete a well on the leased land productive of gas and
Lessee is unable to produce such gas due to a lack of suitable market therefore, Lessor may
grant Lessee suspension of his obligations to produce hereunder until a suitable market for such
gas can be found, and during any such suspension period, it shall be deemed that gas is being
produced hereunder in paying quantities. Except, however, that beginning on the anniversary
date next, of the year of an extension of the lease by reason of a shut-in well. Lessee shall pay to
Lessor a shut-in royalty equal to $2.50 per acre of the lease per annum in addition to the annual
rental. The minimum amount of such shut-in royalty payment shall be $240. Each year's shut-in
royalty shall be forfeited to Lessor except for the shut-in royalty paid for the year during which the
well begins production. The maximum extension of the lease, due to the existence of a shut-in
well, shall be five (5) years beyond the extension term as described in the EXTENSION
paragraph herein. The granting of any further extensions shall be at the sole option of Lessor.
17. OPERATIONS: Exploration, drilling or production operation, including permanent installations,
shall be in compliance with all Colorado Oil and Gas Conservation Commission and State of
Colorado Regulations. Reports required to be filed with the Colorado Oil and Gas Conservation
Commission shall be made immediately available to Lessor upon request.
18. NOTIFICATION: Lessee shall notify Lessor and the surface lessee or surface owner of the
location of each drill site at least two weeks prior to commencing drilling operations thereon.
Lessee shall notify Lessor before commencing to plug and abandon any well by copy of Lessee's
request for approval or sundry notice of intent to plug and abandon.
19. BONDS: Lessee shall be liable for all damages to the surface of the land, livestock, growing
crops, water wells, reservoirs, or improvements caused by Lessee's operations on said land. No
operations shall be commenced on the land hereinabove described unless and until Lessee shall
have filed a good and sufficient bond with Lessor, in an amount to be fixed by Lessor, to secure
the payment for such damages as may be caused by Lessee's operations on said land and to
assure compliance with all the terms and provisions of this lease, the laws of the State of
Colorado, and the rules and regulations thereto appertaining. A bond may be held in effect for
the life of production of any well.
20. SETTLEMENT: Lessee shall not remove any machinery, equipment or fixtures placed on said
land, other than drilling equipment, nor draw the casing from any well unless and until all
payments and obligations currently due Lessor under the terms of this lease shall have been paid
or satisfied Any machinery, equipment or fixtures left on this land for a period of more than
six (6) months after the expiration hereof, shall automatically become the property of Lessor.
M \CTB`,OIL & GAS';LE.ASE FORMS \FOLease_SrnallTract2013 docx
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Steve Moreno. Clerk and Recorder. Weld County, Co
■III K��1��7��+� +�t�l�rhi��'Yr��� I6'iP'MlVF,U'KlI h"414, ■1 II
Small -Tract Oil and Gas Lease
Page 9
21. OTHER DISCOVERY: Should Lessee discover any valuable products other than oil and gas, on
or within the leased land, Lessee shall within seven (7) days report such discovery to Lessor, in
which event Lessee and Lessor may negotiate a provision for production of such discovery.
22. WATER: This lease does not grant permission, express or implied, to Lessee for water
exploration, drilling, or establishing water wells without the written permission of the surface
owner, If Lessor is the surface owner, said permission shall not be unreasonably withheld. If
Lessee desires to establish or adjudicate any water right for beneficial use on the leased land,
any such adjudication or application shall be in the name of Lessor if Lessor is the surface owner.
The same shall apply to any non -tributary water rights established on the leased land which may
be put to beneficial use off said land.
23. DEFAULT: Upon failure or default of Lessee to comply with any of the terms and provisions
hereof including, but not limited to, the failure to comply with laws, rules and regulations
governing Colorado oil and gas operations, Lessor is hereby authorized upon notice and hearing,
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, befcre making any
such cancellation, send to Lessee by certified mail, to the post office address of said lessee as
shown by the records of Lessor, a notice of intention to cancel for such failure or default,
specifying the same, stating that if within forty-five (45) days from the date of mailing said notice,
Lessee shall correct such failure or default, no cancellation will be made. If such failure or default
is not corrected within forty-five (45) days after the mailing of such notice, and if Lessee does not
request a hearing on such notice within forty-five (45) days, this lease will terminate and be
canceled by operation of this paragraph without further action by Lessor, or further notice to
Lessee.
24. EXTENSION: If Lessee fails to make discovery of oil and gas, or either of them, in paying
quantities during the primary term hereof, or during drilling operations commenced during the
primary term hereof, Lessee may make written application to Lessor for an extension of this
lease. The granting of such extension shall be at the sole option of Lessor, according to the
following conditions:
A. Extension Limit: No lease term will be extended for more than six (6) months from the
original expiration date.
B. Extension Payment: The Lessee shall pay to the Lessor the sum of one-third of the original
bonus.
C. Delay Rental: The Lessee must pay to the Lessor the sum of Two and 50/100 Dollars
($2.50) per acre leased as delayed rental for the term of the extension.
D. No Chancre in Royalty: The royalty will remain the same.
25. HOLD HARMLESS: Lessee shall indemnify Lessor against all 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.
26. CONDEMNATION: If the leased land shall be taken in any condemnation proceeding, this lease
shall automatically terminate as of the date of taking. The award for such condemnation shall be
paid to Lessor, except for any specific award(s) paid to Lessee for severed oil and gas reserves,
in which event 50% of such specific award(s) shall be paid to Lessor in lieu of royalty lost by
M:tCTB\OIL & GAS\LEASE FORMSIFOLease_SmallTract2013.docx
(Revised 09/2013)
Small -Tract Oil and Gas Lease
Page 10
3989047 Pages: 10 of 13
01/09/2014 Steve Moreno Clerm. and Recorder 01 `10:571 AM Ry�Fele:��$0.00
1111 FIIP027fl1� ��u1��D 'r �J'�4i'F+e�L ���ld til�lrco{�
ht i lrr:T ��riir 11111
virtue of the condemnation. Improvements shall be removed by Lessee per terms in the
SETTLEMENT paragraph herein. If only a portion of the leased land is taken by condemnation,
Lessor may, at its option, terminate this lease or terminate only that portion of the lease so taken.
27. ERRORS: Every effort is made by Lessor to avoid errors in all procedures including, but not
limited to, auction listings and lease preparation. Lessor shall not be liable for any inconvenience
or loss caused by errors which may occur. Lessee shall notify Lessor immediately upon
discovery of any errors or discrepancy whatsoever.
28. ARCHAEOLOGY: Lessee shall not destroy, disturb, mar, collect, remove or alter any prehistoric
or historic resources of any kind on Weld County lands as provided by law. These resources
include, but are not limited to. all artifacts of stone, wood or metal, pictographs, structures, and
bones. A discovery of anything of prehistoric or historic nature shall be reported to Lessor or the
State of Colorado Archaeologist immediately.
29. DEFINITIONS: For purposes of this Lease. the following definitions apply:
A. 'Products" refers to any and all substances produced on the leased property, including all oil
and gas, found on or under the leased property.
"Market Value" shall mean for gas and products therefrom (i) the gross price at which gas or
products therefrom are sold pursuant to a Gas Contract, as defined in paragraph 2C, or (ii) if
not sold pursuant to a Gas Contract, as defined in paragraph 2C, the highest gross price
reasonably obtainable for the quantity of gas or products available for sale, thrcugh good faith
negotiations for gas or products produced from the Leased Premises at the place where such
gas or product is available for sale on the date of such a contract with adequate provisions for
redetermination of price at intervals of no less frequency than two (2) years to ensure that the
production is being sold for no less than the current market price. Included within the
definition of "Market Value" as used herein is the presumption that Gas Contracts are
arms -length contracts with purchasers who are not subsidiaries or affiliates of Lessee.
"Market Value" shall never be less than the amount actually received by the Lessee for the
sale of hydrocarbons.
C. "Affiliate" is defined as the parent company or a subsidiary of Lessee, a corporation or other
entity having common ownership with Lessee, a partner or joint venturer of Lessee with
respect to the ownership or operation of the processing plant, a corporation or other entity in
which Lessee owns a ten percent or greater interest, or any individual, corporation or other
entity that owns a ten percent or greater interest in Lessee.
D. "Costs" and/or "Expenses" shall mean all costs of gathering, production, transportation,
treating, compression, dehydration, processing, marketing, trucking or other expense, directly
or indirectly incurred by Lessee, whether as a direct charge or a reduced price or otherwise,
including fuel use attributable to any of the services listed above. "Costs" or "Expenses" also
include depreciation, construction, repair, renovation or operation of any pipeline, plant, or
other facilities or equipment used in connection with the treating, separation, extraction,
gathering, processing, refining, transporting, manufacturing or marketing of hydrocarbons
produced from the Leased Premises or lands pooled therewith.
E. "Gas" as used herein shall mean all gases (combustible and noncombustible) including, but
not limited to, all gaseous hydrocarbons, gaseous compounds, carbon dioxide, and helium.
F. "Oil and gas" as used herein shall include all substances produced as by-products therewith,
including, but not limited to, sulfur.
M \CTB',O L & GAS\LEASE FORMS‘FOLease SmafTract2013.docx
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Steve Moreno. Clerk and Recorder. Weld County. CO
Small -Tract Oil and Gas Lease ���� ��1�CC, !MAK 111111
Page 11
G. "Paying quantities" as used herein shall mean and refer to quantities of oil and gas or of
either of them sufficient to pay for the current cost of producing same.
30. HEIRS AND ASSIGNS: The benefits and obligations of this lease shall inure to, and be binding
upon, the heirs, legal representatives, successors or assigns of Lessee; but no sublease or
assignment hereof, or of any interest herein, shall be binding upon Lessor until the same has
been approved by Lessor as explained in the ASSIGNMENTS paragraph provided above.
31. WARRANTY OF TITLE: Lessor does not warrant title to the leased premises, but it shall, upon
request, allow Lessee access to such abstracts and other title papers as it has in its files. There
shall be no obligation on Lessor's part to purchase new or supplemental or other title papers, nor
to do any curative work in connection with title to the subject lands. All abstracts of title, whether
new or supplementary, obtained by Lessee and covering the subject lands shall become the
property of, and be delivered to, Lessor after Lessee has completed its title examination and
curative work, subject, however_ to the right of Lessee to use such abstracts upon request at any
time during the term of the lease.
32. FORCE MAJEURE: Neither party shall be responsible for delays or failures in performance
resulting from acts or occurrences beyond the reasonable control of such party. including, without
limitation: fire, explosion, power failure, flood, earthquake or other act of God; war, revolution, civil
commotion, terrorism, or acts of public enemies; any law, order, regulation, ordinance, or
requirement of any government or legal body or any representative of any such government or
legal body; or labor unrest, including without limitation, strikes, slowdowns, picketing or boycotts.
In such event. the party affected shall be excused from such performance (other than any
obligation to pay money) on a day-to-day basis to the extent of such interference (and the other
party shall likewise be excused from performance of its obligations on a day-to-day basis to the
extent such party's obligations relate to the performance so interfered with).
33. SURVEYS, ABSTRACTS, TITLE OPINIONS AND CURATIVE WORK:
A. If Lessee shall cause any of the exterior or interior lines of the property covered by this lease
to be surveyed, Lessee shall furnish Lessor a copy of such survey. Lessee shall furnish
Lessor, within a reasonable time, with a copy of all maps submitted to the Corps of Engineers
of the United States Army, Railroad, or other governmental or official agency or department
having jurisdiction, showing the proposed location of all roads, pipelines, canals and drill sites
on the Leased Premises
B. In the event Lessee causes an abstract of title to be prepared covering the property herein
leased, or any portion thereof, Lessor shall have access to said abstract at any reasonable
time. In the event Lessee shall cause the title to be examined or should obtain a title opinion
or title certificate upon the property herein leased, Lessee agrees to furnish Lessor a copy or
photostatic copy thereof within a reasonable time of receipt of the same by Lessee with the
understanding that neither Lessee nor the attorney or firm of attorneys rendering the opinion
or certificate shall be responsible to Lessor for its correctness, the said opinion or certificate
being furnished to Lessor simply for its own convenience, information and persona': use.
Similarly, if any curative material is obtained by Lessee, a copy thereof shall immediately be
furnished Lessor under the same conditions of non -liability on the part of the Lessee or the
persons who may have obtained or prepared the same.
M tCTB\OIL & GAS\LEASE FORMS\FOLease_Srna!ITract2013.docx
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Steve Moreno Clerk and Recorder. Weld County CO
1III kir ttl I`'uti AVV, Nc1 LIMN II III
Small -Tract Oil and Gas Lease
Page 12
IN WITNESS WHEREOF, Lessor has hereunto signed and caused its name to be signed by the
CHAIR, BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD, with the seal of the
office affixed, and Lessee has signed this agreement, the day and year first above written.
ATTEST:
Weld County Clerk to the Board, WELD CO3JTYOLORADO
LESSOR:
BOARD OF COUNTY COMMISSIONERS
By:
By:
Deputy Clerk I. !?.-. 7 :x Ch
Board of County Commissioners
DEC 1 27013
MACTBIOIL & GASILEASE FORMS'\FOLease_SmailTract2013.docx
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Steve Moreno. Clerk and Recorder. Weld County CO
IIIIIMlc,11.1%,.HI
Small -Tract Oil and Gas Lease
Page 13
LESSEE:
PDC Energy, Inc.,
Company Name
Ignatur
O. F. Baldwin 11, Vice President Land
STATE OF Ciolorado )
ss
COUNTY OF V,n,Je( )
Printed Name and Title
The foregoing instrument was acknowledged before me this 11 day of
20 t3 , by O . r. 6atdcvt n l V'Cce. Pre.,; de,r.k Lar,d
Witness my hand and official seal.
z -z3 -pis
My Commission Expires
My Commission Expires 02/23/2015
LESSEE: (second signature if applicable)
Company Name
Signature
Printed Name and Title
STATE OF
ss
COUNTY OF
The foregoing instrument was acknowledged before me this day of
20 by
Witness my hand and official seal.
Notary Public
My Commission Expires:
M: CTB\OIL & GAS\LEASE FORMS\FOLease_SmallTract2013 docx
(Revised 0912013)
C
Growing E& Value
November 12, 2013
Weld County Board of County Commissioners
1150 O Street
P.O. Box 758
Greeley, CO 80632
Re: Noffsinger 2SD Well
Township 5 North. Range 65 West. 6th P.M.
Section 2: S/2NE/4, N/2SE/4
Weld County, Colorado
LEASE REQUEST
Ladies & Gentlemen:
CERTIFIED MAIL — RETURN RECEIPT
7011 2970 0003 1586 6949
RECEIVED
Nov t ri0e+y;
WELD COUNTY
COMMISSIONERS
PDC Energy, Inc. is requesting an Oil and Gas Lease from Weld County. We've been in e-mail
communication with Karla Ford regarding this tract.
Enclosed please find a Weld County Small Tract Oil and Gas Lease executed the PDC Energy, Inc. for
the following tract:
Township 5 North, Range 65 West, 6th P.M.
Section 2: That part of the right-of-way of State Highway No. 263 lying in the NE/4SE/4
Weld County, Colorado
Containing 0.841 acres, more or less 0091)11M
I1M I I �iD
Also, enclosed is PDC Energy, Inc.'s check #050 in the amount of $0 as bonus for the
enclosed lease.
PDC respectfully requests Weld County execute and record the enclosed lease.
Thanks for your assistance in this matter.
Very truly yours,
Donna N. Keistler, CPL
Consulting Landman
Direct: 303 831-3984
e-mail: donna.keistler@pdce.com
Enclosures as stated.
CORPORATE OFFICE:
PDC Eriergy
1775 Sherman Street, Suite 3000
Denver, Colorado 80203
(303) 860-5800
L£o31g
EASTERN REGIONAL HEADQUARTERS:
PDC Energy
120 Genesis Boulevard • P.O. Box 26
Bridgeport, West Virginia 26330
(304) 842-3597
PDC Energy
PO BOX 26
BRIDGEPORT, WV 26330
Page 1 of 1
VENDOR NAME
VENDOR NO.
CHECK DATE
CHECK NUMBER
AMOUNT
Weld County Board of Comm
43444
Nov -21-2013
00211789
**$504.60*
Reference Inv date Invoice No. Invoice Amt Prior Pmt Discount Amount Paid
1311 -AP -3438 11/20/13 112013 504.60 0.00 504.60
Weld County Small -Tract O&G Lease .841 Acres. Return check to Patty
Richarson
FtECEIVED
WELD COUN:
IN
„f-NwAnliSSIOt4
0
..O
cP
O -O CV
CO
U 0 O
>; m cc
c CD °,n° O
RECEIPT DATE /&1a43
RECEIVED FROM robe &-ttrfl-
HOW PAID
CASH
til
5oLt,%�CHECK
C/�/6MONEY
ORDER
47144 an,
NO. 87285
BY kir
LE03/t
pit
Karla Ford 3J2`v''3
From: Esther Gesick
Sent: Tuesday, March 26, 2013 9:25 AM
To: Karla Ford
Subject: FW: Noffsinger 2SD Well - Unleased Right of Way
Attachments: 786-1707636 - PRD Robert S. Daivs Estate.pdf; 1073-199 - Deed Benson - Weld Co.pdf;
02099888.001 - QCD.pdf; 03532012.001 - Noble Lease.pdf; 03770720.001 - Disclaimer.pdf;
DDOTO 9-20-2010 Pertinent Pages.pdf; Tract 3D-Plats.pdf
Feel like stretching your brain...?
Esther E. Gesick
Deputy Clerk to the Board/Office Manager
1150 O Street P.O. Box 758/Greeley, CO 80632
tel: (970) 336-7215 X4226
Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed
and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please
immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents
of this communication or any attachments by anyone other than the named recipient is strictly prohibited.
From: Donna Keistler [mailto:Donna.Keistler@pdce.com]
Sent: Wednesday, March 06, 2013 9:05 AM
To: Esther Gesick
Cc: John Krattenmaker; Terah G. Coffman
Subject: RE: Noffsinger 2SD Well - Unleased Right of Way
Esther:
I want to thank you in advance for looking into this "unleased" right of way.
As I've emailed to you recently PDC Energy, Inc., believes that Tract 3D as described in the Drilling and Division Order
Title Opinion dated 9/20/2010, prepared by Jeanine Feriancek, with Holland & Hart is unleased. As backup to the
determination that this acreage is unleased, please refer to the following documents:
1. Right of Way Document dated 1/13/1941, Recorded in Book 1073, page 199, John Benson conveyed a ROW to
Weld County, Colorado: That part of the E/2 of the SE/4 of Section 2, T5N-R65W, 6th PM, Weld County, CO, a
being a strip 80' in width and 40' on each side of the following described center line, Beginning at a point on the
east line of said E/2of the SE/4 1214 feet south from the northeast corner thereof, running thence S 59°54'W
1500 feet more or less to a point on the west line of said E/2 of the SE/4 of Section 2.
Comments: The title examiner feels the language in this document is more consistent with a grant of fee title
than an easement. Therefore, it is interpreted the deed as conveying fee title (including minerals).
2. Personal Representatives Deed dated 12/30/1976, recorded 12/30/1976, in Book 786, Page 1707636, executed
by Frank Stanley Davis and Barnard Houtchens, as Personal Representatives of the Estate of Robert S. Davis,
Deceased, as Grantor, and County of Weld, as Grantee, covering among other lands, a metes and bounds
description in T5N-R65W, Section 2: E/2SE/4 lying south of Highway 263.
1
3. Quit Claim Deed dated 4/21/1987, recorded 5/15/1987, at Reception 2099888, Greeley -Weld County Airport
Authority fka Weld County Municipal Airport Authority, the City of Greeley and the County of Weld, Grantor,
and Greeley -Weld County Airport Authority, Grantee, conveyed lands in Sections 1,2,3 —T5N-R65W, described
by metes and bounds, EXCEPT THE EXISTING ROW FOR COLORADO STATE HIGHWAY 263 (item 1 above).
4. Oil & Gas Lease dated 1/24/2008, Recorded 1/30/2008, Reception 3532012, between Greeley -Weld County
Airport Authority, as Lessor, and Petro -Canada Resources (USA), Inc., as Lessee, includes (among other lands)
the acreage described in the Right of Way Document dated 1/13/1941, Recorded in Book 1073, Page 199 (#1
above). HOWEVER, as a result of QCD dated 4/21/1987, Reception 2099888 (#2 above), excluding the existing
ROW for Colorado State Highway 263, the Greeley -Weld County Airport Authority did not own the minerals to
lease.
5. Disclaimer of Interest dated 4/21/2011, recorded 5/26/2011, at Reception 3770720, executed by Greeley -Weld
County Airport Authority, disclaiming any interest in the "excepted property" described in the Personal
Representatives Deed dated 12/30/1976, recorded in Book 786, Page 1707363 (item 2 above).
Enclosed for your review please find:
1. Pertinent pages from the Drilling and Division Order Title Opinion dated 9/20/2010, prepared by Jeanine
Feriancek, with Holland and Hart;
2. Copy of each of the documents described above.
3. Tract 3D — Plats.
If you determine this is an unleased interested owned by Weld County, I will prepare the lease package for your
submittal.
Thanks.
PDC
ENE Y
Donna Keistler, CPL
Consulting Landman
1775 Sherman Street, Suite 3000
Denver, CO 80203
Direct: 303 831-3984
Cell: 720 313-6449
NEW E-MAIL ADDRESS: donna.keistler@pdce.com
www.pdce.com
This e-mail message and included attachments may contain information that is proprietary, privileged, and/or
confidential and is intended exclusively for the person(s) to whom it is addressed. Any use, copying, retention,
and/or disclosures by any person other than the intended recipient or their designee is strictly prohibited. If you
are not the intended recipient or their designee, please notify the sender immediately by telephone at 304-842-
3597 and then permanently delete all copies.
From: Esther Gesick [mailto:egesick@co.weld.co.us]
Sent: Friday, March 01, 2013 9:25 AM
2
To: Donna Keistler
Cc: Esther Gesick
Subject: RE: Noffsinger 2SD Well - Unleased Right of Way
Hello Donna,
I'm sorry for the previous confusion. You may provide the documentation to me; I'd like to look into this a little more to
make sure our records are accurate and then we'll proceed with the lease process.
Thank you,
Esther E. Gesick
Deputy Clerk to the Board/Office Manager
1150 O Street)P.O. Box 7581 Greeley, CO 80632
tel: (970) 336-7215 X4226
Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed
and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please
immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents
of this communication or any attachments by anyone other than the named recipient is strictly prohibited.
From: Donna Keistler [mailto:Donna.Keistler@odce.com]
Sent: Wednesday, February 27, 2013 8:32 AM
To: Esther Gesick
Subject: Noffsinger 2SD Well - Unleased Right of Way
Esther:
According to the title opinion covering the referenced well, there is an unleased interest titled to Weld County. We've
previously requested a lease (through Lone Tree Energy) and they were told by Weld County, that Weld County did not
own the minerals.
After researching the data of record, I believe the title opinion is correct.
Who could I contact at Weld County to provide the documentation for review and to obtain a lease?
Thanks for your help.
Donna
ir ENERGY
Donna Keistler, CPL
Consulting Landman
1775 Sherman Street, Suite 3000
Denver, CO 80203
Direct: 303 831-3984
Cell: 720 313-6449
NEW E-MAIL ADDRESS: donna.keistlerCcupdce.com
3
COUNTY ATTORNEY STAFF APPROVAL
This is to affirm the attached Division Order and authorization to receive
payment for an oil and gas well has been reviewed by the County
Attorney's staff as to form and legal description.
✓ ssi- ant County Attorney
Date of signature: 1-2 A'i"J
Addition-. Comments:
dl 3 o /'
6o 6 4L,di
i7 fr
._. :. x' _._.. %+,... _� ' E -r 3 0 :��....
n
• r
.ti
PERSONAL REPRESENTATIVES' DEED
'•
•
THIS DEED is made by FRANK STANLEY DAVIS and
BARNARD HOOTCHENS; AS PERSONAL REPRESENTATIVES OF THE ESTATE
OF ROBERT S. DAVI S , DECEASED, Grantors, to
COUNTY OF WELD, STATE OF COLORADO
Grantee, whose address is Greeley, Colorado 80631
WHEREAS, the above named decedent in his lifetime made
and executed his Last Will and Testament dated August 28, 1971,
which Will was duly admitted to formal probate cn December 26,
1974, by the District Court in and for the County of Weld and
State of Colorado, Probate No. P-13..56;
WHEREAS, Grantors were duly appointed Personal
Representatives of said Estate on December 26, 1974, and are
now qualified and acting in said capacity;
NOW, THEREFORE, pursuant to the power conferred upon
Grantors by Article 3, Section 711 of the Colorado Probate Code,
and for ehe consideration of $497,600.00, Grantors sell and
convey tc Grantee the following real property in Weld County,
Colorado:
THE PROPERTY HEREBY CONVEYED IS DESCRIBED
IN EXHIBIT A ATTACHED HERETO AND INCORPORATED
HEREIN BY REFERENCE
with all appurtenances, subject to taxes for the year 1975
and thereafter, and except prior reservations and conveyances of
oil, gas and other minerals, exceptions, reservations, covenants,
conditions and restrictions created by instruments of record and
rights of way and easements established c.i the premises and subject
to building and zoning regulations.
Grantors further her nby represent and declare and
the Grantee in accepting this deed joins in and adopts said
representation and declaration, that the Grantee is not Grantors'
agent or attorney )r a corporation or trust in which Grantors have
a benefi;ial interest; and that this deed is not part of a trans-
act.on which is affected by a conflict of interest on the part
of the personal representatives.
Executed December 3(e 476.
STATE OF COLORADO )
ss.
COUNTY OF WELD )
•
FRANK%'STANLEY /DAVIS
nARNA D TOOUTrHENS
AS PERSONAL REPRESENTATIVES OF THE
ESTATE OF ROBERT S. DAVIS, DECEASED
The foregoing instrument was acknowledged before me this 3e?""
day of December, 1976 by FRANK STANLEY DAVIS AND BARNARD HOUTCHENS
AS PERSONAL REPRESENTATIVES OF THE ESTATE O1' !{UWERT S. DAVIS,
DECEASED.
Witness my hand and official seal.
My co *unission expires October. 1. 1.9.77
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In Township 5 North, Range 65 West of the 6t : P.M.:
COUNTY, COLORADO
Section 1:
Section 2:
cnee
All that part cf the NE•y and Lhe N' of the SE i lying south of
Colorado Highway #263 excepting that part thereof lying north
of the Ogilvy Ditch, which comprises approximately 16 acres,
tcge her with the improvements thereon, conveyed by deed
recorded December 23, 1975 in Book 755 under Reception ivo. 1677479,
Weld County Rewords, and parcel conveyed by deed recorded in Book 1513, page
Wele ,ou_. coon s
All that part o the El of the SEw lying South of State Highway #263
as presently constructed, being more particularly described as
follows: beginning at the southeast corner of said Section 2, and
considering the East line of the SEJ of said Section 2 as bearing
tviorth 01 n5' 4E" East, with all $they bearings contained herein
relative thereto; thence North 01 05' 46" East, along the East
line of the SE?1 of said Section 2, 1429.39 feet to a point on the
South right of way line of Colorado State Highway #263; thence
South 600 39' 19" West, along said South right of way line, 1535.88
feet; thence South 010 02' 52" We•;t, 672.0t feet to the South line
of the SE' of said Section 2, thence South 890 48' 16" East., along
the south line of the SE' of said Section 2, 1323.77 feet to the
southeast corner of said Section 2, said point being the point of
beginning, said described parcel of land contains 31.936 acres, more
or less.
Sectic:. 11: That pert of the NE;e of the iW1/4 lying end being South of the Cache
la Poudre River; the Sk of the N*W7e, the NE1, the West 20 rods of the
N of the SE4, 17.83 acres in the NW/ of the SE' as described in deed
recorded in Book 241, page 233, Weld County Records.
That part of the NE1 of the NWT lying north of the Cache la Poudre
River and East of Sand Creek.
EXCEPT approximately 6 acres located near the south line of the NE1
of said Section 11 together with the improvements thereon, conveyed
by deed recorded January 16, 1973 in Bock 757 ender Reception
No. 1679098 of the Weld County Records.
Section 12: The N' of 4.he NWle, the SE; of the NWk, the S:J4 of the NW', the NE1
excepting therefrom that parcel of land described es beginning at
the southwest corner of the NE'•u of said Section 12, thence East along the
South , e
�i%8 iir.Y•Evr to ttfc 1Jii Cis8d5i a:iYs-isrit• of said quarter section,
thence North along the East line of said Section, 1000 feet; thence
southwesterly to the point of beginning. Also excepting a right of
way and a parcel of land in the NE1 of the NE1 of said Section 12
lying East of the Pi.'-te River as conveyed by Geed recorded in Book
985, page 517, Weld County records.
TOGETHER with 17 shares of the capital stock of The Delta Irrigation Company and
3 shares of the capital stool. of The Cgilvy Irrigating and Land Company.
EXHIBIT
hecepttt No.
_ . s PRESENTS, That I,
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Si }.ii\liw'Z Rece d -r.
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...John Benson!
.7f -.., :c:::::r c. Weld And State of Colorado
::std,- - One dollar and other good and valuable considerations
in hand paid, hereby sell and convey to Weld County, Colorado, the right way ., .
^ublic : Nosy over and across the following real property situate in the C::.::y ..
..13 and state of Colorado, to -nit:
Part of the E.'-, of the Sir.;, of Section 2, Township 5 North, =an;ee
c5 West of the 6th P.M., Weld County, Colorado, being a strip of
land SO feet in width, 40 feet on each side of the following des -
exited center line,
Beginning at a point on the East line of:said Et of the SEt 1214
feet South from the Northeast Corner thereof, running thence 5.5.
541W 1500 feat more or less to a point on the West line of said
Et of the SE: of said Section 2.
net required acreage, 0.63 acre, more or less.
a..._ .ration herein stated is in full compensation for all danzt is wt:i:': r.......
be cc::sid'red and assessed in any award or verdict in a proceedint und•'r t: ' :....:e,_
:f ,: io.t o, to condemn sail strip of L.i.nd for niublie road.
S wed and delivered this
in Ths Presence Cl
Right of why Deed.
lif
day of 2. r. c. x�, c'-
,%.
The foregoing instrument was acknowledged ber':re -1,,,T
this ,/ — day 9L c rp_o<.,c.: 1a_
by John Benson
WITNESS my band and Official Seal.
:. Corwrission r:xpires
1
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AR2099688
QUIT CLAIM DEED
THIS DEED is a conveyance fran the corporations and other entities named
below as GRANTOR to the entity named below as GRANTEE of whatever interest
the GRANTOR may have in the real property described on "Exhibit A-"
The GRANTORS hereby sell and quit claim to the GRANTEE the real property
described on Exhibit A with all its appurtenances
The specific terms of this Deed are:
GRANTORS: GREELEY LVE[D COUNTY AIRPOIYP AUTHORITY, a Body Corporate and
Politic of the State of Colorado, formerly known as Weld County Municipal
Airport Authority, and. Weld County Municipal Airport Authority, a Body
Corporate and Politic of the State of Colorado, P. 0. Box 727, Greeley, CO
80632; COUNTY OF WELD, a/k/a County of Weld, State of Colorado, 915 10th
Stied, Greeley, CO 80631; and THE CITY OF GREEL Y, a Municipal Corporation,
a/k/a City of Greeley, Colorado, The City of Greeley, Colorado, The City of
Greeley, Colorado, a Municipal Corporation, Civic Center, Greeley, CO 80631
GRANTEE: GRFf BY -WELD COUNTY AIRPORT AUTHORITY, a Body Corporate and
Politic of the State of Colorado, P. 0. Box 727, Greeley, CO 80632
DESCRIPTION OF PROPERTY CONVEYED BY STNS DEED: See attached Exhibit A.
RESERVATIONS -RESTRICTIONS: Reservations, restrictions and covenants of
record, if any.
SIGNATURES OF GRANTORS:
1. GREELEY-WELD COUNTY AIRPORT AUTHORITY, a Body Corporate and Politic of
the State of Colorado, formerly known as Weld County Municipal Airport
Authority, and Weld C ty Municipal Airport Authority, a Body CoLruiate and
Politic /of{/y�) State £ Colorado
BY: ,�. �'0a_ Date Executed: APait— Zr , t 987
Its c.4N+i2M4U
2: ..THE`•CITY OF GREELEY, a Municipal Corporation, a/k/a City of Greeley,
td loii&S,:hie City of Greeley, Colorado, The City of Greeley, Colorado, a
P C-Muftic' rpo
3.
STATE OF COLORADO)
155.
COUNTY OF WELD ) . �'./ t�
The foregoing instrument yes acknowledged before me this ai' day of
(Jane. , 1987, by /1.Kin - ,/t/1' . (b.'C' for GREELEY-WELD COUNTY
AIRPORT .. AUTHORITY, a Body Corporate and Politic of the State of Colorado,
formerly known as Weld County Municipal Airport Authority, and Weld County
Municipal Airport Authority, a Body Corporate and Politic of the State of
Colorado.
commission expires: AC -W141
Date Executed: s5-8-81
Attest:7'y,,
i!1
Clerk of the City of Greeley
/k/a County of Weld, State of Colorado
Date Executed: May 13, 1987
%InAttest: ' ,, 4.i tLw
Count"' 1%]F d" •der
Notary Public -
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SPATE OF COLORADO)
)ss.
COUNTY OF WELD 1
The foregoing instrument was acknowledged before me this b day of
, 1987, by Robert Markley, Mayor, of TEE CITY OF GRE¢,EY,
Municipal Corporation, a/k/a City of Greeley, Colorado: The City of Greeley,
Colorado; and The City of Greeley, Colorado, a Municipal Corporation.
My commission expires: (kit/ _7p ,//J
My Commission E:pires Nov. 11, WVkit/ ' �m 4rit/z..&
STATE OF COLORADO)
)ss.
COUNTY OF WELD 1
The foregoing instrument was acknowledged before me this 4.34A day of !. az.,y
, 1987, by drrdayn £. 14O/ , County Cannissioner for the
COUNTY OF WELD, a/k/a County of Weld, State bf Colorado.
My =mission expires: 3r7/9.c/
/(i�Totary Public
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GREELEY-WELD COUNTY AIRPORT
LEGAL DESCRIPTION
A TRACT OF LAND LOCATED IN SECTIONS 1, 2, AND 3, TOWNSHIP 5 NORTH, RANGE 65 WEST OF THE
SIXTH PRINCIPAL MERIDIAN, WELD COUNTY, COLORADO AND BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:
BEGINNING AT THE SOUTHEAST CORNER OF SAID SECTION 3 AND CONSIDERING THE EAST LINE THEREOF
TO BEAR NORTH 01° 34' 53" EAST WITH ALL OTHER BEARINGS CONTAINED HEREIN BEING RELATIVE
THERETO;
THENCE NORTH 01° 34' 53" EAST, 1268.59 FEET TO THE SOUTHEAST CORNER OF THE NORTHEAST
QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 3;
THENCE SOUTH 89° 26' 29" WEST, 658.51 FEET TO THE SOUTHWEST CORNER OF THE EAST HALF OF THE
NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 3;
THENCE NORTH 01° 34' 46" EAST, 62.46 FEET;
THENCE NORTH 88° 50' 40" WEST, 658.07 FEET TO THE WEST LINE OF THE NORTHEAST QUARTER OF
THE SOUTHEAST QUARTER OF SAID SECTION 3;
THENCE NORTH 01° 34' 39" EAST, 1208.40 FEET TO THE NORTHWEST CORNER OF SAID NORTHEAST
QUARTER OF THE SOUTHEAST QUARTER;
THENCE NORTH 89° 36' 11" WEST, 1136.44 FEET ALONG THE NORTH LINE OF THE SOUTHEAST QUARTER
TO A POINT BEING 180.03 FEET EAST FROM THE CENTER OF SAID SECTION 3;
THENCE SOUTH 01° 28' 01" WEST, 346.49 FEET;
THENCE NORTH 88° 31' 59" WEST, 180.00 FEET TO A POINT ON THE WEST LINE OF SAID SOUTHEAST
QUARTER;
THENCE NORTH 01° 28' 01" EAST, 65.45 FEET ALONG SAID WEST LINE TO A POINT BEING 227.68
FEET SOUTH FROM THE CENTER OF SAID SECTION 3;
THENCE NORTH 43° 11' 00" WEST, 224.50 FEET;
THENCE NORTH 60° 30' 00" WEST, 425.00 FEET;
THENCE NORTH 04° 38' 00" EAST, 54.30 FEET;
THENCE NORTH 60° 48' 00" WEST, 290.00 FEET;
THENCE NORTH 00° 52' 00" EAST, 178.00 FEET;
THENCE NORTH 60° 15' 00" WEST, 87.90 FEET;
THENCE NORTH 87° 12' CO" WEST, 75.00 FEET;
THENCE SOUTH 62° 04' 00" WEST, 47.90 FEET;
THENCE NORTH 87° 39' 00" WEST, 176.90 FEET;
THENCE SOUTH 77° 53' 00" WEST, 119.60 FEET;
THENCE NORTH 75° 06' 00" WEST, 61,90 FEET;
THENCE NORTH 88° 20' 00" WEST, 641.22 FEET TO A POINT ON THE WEST LINE OF THE EAST HALF OF
THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 3;
THENCE NORTH 01° 23' 30" EAST, 820.40 FEET ALONG SAID WEST LINE TO THE NORTHWEST CORNER OF
THE EAST HALF OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 3;
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THENCE SOUTH 88° 59' 47" EAST, 4.13 FEET ALONG THE NORTH LINE OF SAID EAST HALF OF THE
SOUTHWEST QUARTER OF THE NORTHWEST QUARTER;
THENCE NORTH 02° 03' 30" EAST, 1246.53 FEET TO A POINT OR THE NORTH LINE OF THE NORTHWEST
QUARTER OF SAID SECTION 3;
THENCE SOUTH 88° 46' 59" EAST, 3939.37 FEET TO THE NORTHEAST CORNER OF THE WEST HALF OF
THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 3.;
THENCE SOUTH O1° 33' 09" WEST, 895.05 FEET ALONG THE EAST LINE OF SAID WEST HALF OF THE
NORTHEAST QUARTER OF THE NORTHEAST QUARTER; w m
THENCE SOUTH 74° 12' 00" EAST, 2127.63 FEET PARALLEL WITH AND 1000 FEET NORTHEASTERLY E.0.4
O H
FROM THE CENTER LINE OF EXISTING RUNWAY 9/27; O°'
am
THENCE NORTH 01° 32' 40" EAST, 10.32 FEET PARALLEL WITH AND 80 FEET EASTERLY FROM THE m
EAST LINE OF THE WEST HALF OF THE NORTHWEST QUARTER OF SECTION 2; K
THENCE SOUTH 74° 12' 00" EAST, 1300.32 FEET PARALLEL WITH AND 1010 FEET NORTHEASTERLY
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FROM THE CENTERLINE OF EXISTING RUNWAY 9127; z i°
THENCE NORTH 01° 30' 28" EAST, 1788.86 FEET PARALLEL WITH AND 1 ROD (16.5 FEET) EAST c m
FROM THE WEST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 2 TO A POINT ON THE NORTH
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LINE OF SAID NORTHEAST QUARTER; CO
THENCE SOUTH 89° 39' 57" EAST, 1306,43 FEET TO THE NORTHEAST CORNER OF THE WEST HALF OF z
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THE NORTHEAST QUARTER OF SAID SECTION 2;n co
THENCE SOUTH 01° 28' 16" WEST, 2159.03 FEET ALONG THE EAST LINE OF SAID WEST HALF OF THE m -4
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NORTHEAST QUARTER; "'
THENCE SOUTH 74° 12' 00" EAST, 1755.86 FEET, PARALLEL WITH AND 1000 FEET NORTHEASTERLY ' c
FROM THE CENTERLINE OF EXISTING RUNWAY 9/27;
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THENCE SOUTH 15° 48' 00" WEST, 1185.66 FEET; z
THENCE NORTH 88° 07' 04" WEST, 82.72 FEET MORE OR LESS TO THE SOUTHWEST CORNER OF THE m o
NORTH HALF OF THE SOUTHWEST QUARTER OF SAID SECTION 1;
THENCE NORTH 01° 26' 03" EAST, 161.07 FEET TO A POINT ON THE SOUTH LINE OF COLORADO STATE Z
HIGHWAY NO. 263; o
THENCE SOUTH 61° 00' 00" WEST, 1537.04 FEET ALONG SAID SOUTH LINE TO A POINT ON THE EAST o
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LINE OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION' 2; o
THENCE SOUTH 01° 28' 16" WEST, 676.70 FEET TO THE SOUTHEAST CORNER OF SAID SOUTHWEST
QUARTER OF THE SOUTHEAST QUARTER;
THENCE NORTH 89° 38' 33" WEST, 2652.30 FEET TO THE SOUTHWEST CORNER OF THE SOUTHEAST QUARTER
OF THE SOUTHWEST QUARTER OF SAID SECTION 2;
THENCE ALONG THE SOUTHERLY BANK OF THE OGILVY DITCH BY THE FOLLOWING SIX (6) COURSES:
NORTH 63° 20' 30" WEST, 165.00 FEET;
NORTH 71° 25' 30" WEST, 285.00 FEET;
NORTH 76° 40' 30" WEST, 352.00 FEET;
SOUTH 83° 39' 30" WEST, 190.00 FEET;
SOUTH 57° 59' 30" WEST, 114.00 FEET
SOUTH 51° 09' 30" WEST, 250.00 FEET TO A POINT ON THE SOUTH LINE OF THE SOUTHWEST QUARTER
OF SAID SECTION 2;
THENCE NORTH 89° 38' 33" WEST, 85.76 FEET 10 1HE POINT OF BEGINNING;
2
SALU I AuI Ur LIUIU CUNT AINS /02.233 ALKES, MUHL UN LESS;
EXCEPT THE EXISTING RIGHT-OF-WAY FOR COLORADO STATE HIGHWAY NO. 263 ACROSS SAID PARCEL OF
LAND DESCRIBED AS FOLLOWS:
COMMENCING AT THE SOUTHWEST CORNER OF SAID SECTION 2;
THENCE NORTH 01° 34' 53" EAST, 407.70 FEET TO THE TRUE POINT OF BEGINNING;
THENCE NORTH 01° 34' 53" EAST, 199.99 FEET MORE OR LESS;
THENCE EASTERLY ALONG THE NORTHERLY LINE OF SAID HIGHWAY 263 BY THE FOLLOWING ELEVEN (11)
COURSES:
SOUTH 88° 37' 57" EAST, 43.75 FEET;
SOUTH 48° 13' 33" EAST, 96.00 FEET;
SOUTH 88° 28' 20" EAST, 1840.07 FEET;
SOUTH 87° 52' 20" EAST, 967.21 FEET;
NORTH 88° 49' 40" EAST, 392.50 FEET TO AN EXISTING RIGHT-OF-WAY MARKER;
NORTH 76° 30' 10" EAST, 216.80 FEET;
NOR1H64°,10' 40" EAST, 392.50. FEET;
NORTH 61° 01' 00" EAST, 1655.32 FEET TO A POINT ON THE EAST LINE OF SAID SECTION 2;
NORTH 01° 26' 03" EAST, 43.08 FEET;
SOUTH 78° 20' 30" EAST, 56.65 FEET;
NORTH 62° 20' 00" EAST, 134.28 FEET TO A POINT ON THE EAST LINE OF THE ABOVE DESCRIBED
TRACT;
THENCE SOUTH 15° 48' 00" WEST, 108.26 FEET ALONG SAID EAST LINE;
THENCE WESTERLY ALONG THE SOUTHERLY LINE OF SAID HIGHWAY 263 BY THE FOLLOWING EIGHT (8)
COURSES:
SOUTH 60° 54' 30" WEST, 169.74 FEET TO A POINT ON THE WEST LINE OF SAID SECTION 1;
SOUTH 61° 01' 00" WEST, 1608.18 FEET;
SOUTH 60° 52' 40" WEST, 442.00 FEET;
SOUTH 79° 08' 40" WEST, 210.30 FEET;
NORTH 87° 52' 20" WEST, 1372.83 FEET;
NORTH 88° 28' 20" WEST, 1836.20 FEET;
SOUTH 54° 17' 11" WEST, 95.80 FEET;
NORTH 88° 37' 07" WEST, 44.40 FEET TO THE TRUE POINT OF BEGINNING;
SAID EXISTING COLORADO STATE HIGHWAY NO. 263 RIGHT-OF-WAY CONTAINS 11.202 ACRES, MORE OR
LESS, LEAVING A NET AREA OF 691,031 ACRES, MORE OR LESS AND SAID TRACT- OF LAND IS ALSO
SUBJECT TO RIGHTS -OF -WAY FOR WELD COUNTY ROADS NO. 62, 45, 47 AND ANY OTHER RIGHTS -OF -WAY
OR OTHER EASEMENTS AS GRANTED OR RESERVED BY INSTRUMENTS OF RECORD OR AS NOW EXISTING ON
SAID TRACT OF LAND.
SURVEYOR'S CERTIFICATE
I DO HEREBY CERTIFY THAT, UNDER MY PERSONAL SUPERVISION, THIS PLAT AND LEGAL
DESCRIPTION WERE PREPARED AND THAT THE CORNER MONUMENTS INDICATED HEREON WERE
PROPERLY PLACED DURING AN ACTUAL AND ACCURATE SURVEY. OF THE LAND COMPLETED ON
MARCH 12, 1987.
GERALD B. McRAE, PROFESSIONAL ENGINEER AND.
LAND SURVEYOR, COLORADO REG, NO, 6616
Agior
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RESOLUTION
RE: APPROVE QUIT CLAIM DEED FOR CONVEYANCE OF PROPERTY FROM WELD
COUNTY, COLORADO, TO THE GREELEY-WELD COUNTY AIRPORT
AUTHORITY AND AUTHORIZE CHAIRMAN TO SIGN
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, by prior action of this Board and the City of
Greeley, the Greeley -Weld County Airport Authority was created
July 24, 1978, pursuant to CRS, Section 41-3-101, et seq., and
WHEREAS, Weld County, Colorado, and the City of Greeley each
may continue to have an interest in the airport property located
generally in Sections 1, 2, and 3, Township 5 North, Range 65 West
of the 6th P.M., and
WHEREAS, the Greeley -Weld County Airport Authority has
presented to the Board, a Quit Claim Deed to convey Weld County's
interest in the property, simultaneously with the conveyance by
the City of Greeley, to said Airport Authority, and
WHEREAS, in order to complete the transfer of County and City
assets to the Airport Authority, the Greeley -Weld County Airport
Authority requests that the Board execute the Quit Claim Deed, a
copy of which is attached hereto and incorporated herein by
reference.
NOW, THEREFORE, BE IT RESOLVED that the Board of County
Commissioners of Weld County, Colorado, does hereby approve the
conveyance of its interest in the property hereinabove described,
by Quit Claim Deed, to the Greeley -Weld County Airport Authority.
BE IT FURTHER RESOLVED by the Board that the Chairman be, and
hereby is, authorized to sign said Quit Claim Deed or one in
substantially the same form as that presented, conditional upon
execution of the Quit Claim Deed by the City of Greeley.
/}7)O0O. 67c7 Ji.t
670346
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RE: QUIT CLAIM DEED - AIRPORT PROPERTY
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 6th day of May,
A.D., 1987.
ATTEST:
Weld Co Gy' Clerk arfdRecorder
and Cle Jto:t1ot o— f
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APPROVED AS TO FORM:
cz `7 / 72trrteutori,
oW County Attorney
BOARD OF COUNTY COMMISSIONERS
WELD COUNfly°A�LS3BADO
Frank Yamaguchi
870346
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IIIIiI 11111111111 IIIIII MIN 1111111 11111 IMO
3532012 01/30/2008 10:10A Weld County, CO
1 of 26 R 131.00 D 0.00 Steve Moreno Clerk & Recorder
GREELEY-WELD COUNTY AIRPORT AUTHORITY
OIL AND GAS LEASE
_THIS OIL AND GAS LEASE ("Lease") is made as of the alb{ day of
4,I/]1,4a1fi. JJ 2008, between the Greeley -Weld County Airport Authority, as
Lessor, and.Petro-Canada Resources (USA) Inc., as Lessee. The Parties acknowledge
and agree that this Lease has been jointly drafted by all Parties, and that each Party
has had equal input in the drafting of each of its terms.
1. Grant of Leased Premises. Lessor hereby grants, leases and lets without
warranty exclusively to Lessee the land described on Exhibit A, attached hereto, and
hereinafter called "Leased Premises," containing 424.625 gross acres, more or less
(including any interests therein which Lessor may hereafter acquire by reversion,
prescription or otherwise), for the purpose of exploring for, developing, producing and
marketing oil and gas, along with all hydrocarbon and non -hydrocarbon substances
produced in association therewith ("Oil and Gas Substances"). The term "gas" as used
herein includes helium, carbon dioxide, gaseous sulfur compounds, and other
commercial gases, as well as normal hydrocarbon gases such as methane and
coalbed-methane. In addition to the Leased Premises, this Lease and the Leased
Premises also covers accretions and any small strips or parcels of land now or hereafter
owned by Lessor which are contiguous or adjacent to the Leased Premises, and,
Lessor agrees to execute at Lessee's request any additional or supplemental
instruments for a more complete or accurate description of the Leased Premises.
2. Ancillary Rights. The rights granted to Lessee hereunder shall include the
right of ingress and egress, subject to the restrictions contained herein and in Exhibit B
attached hereto, on the Leased Premises or lands pooled or unitized therewith, along
with such rights as may be reasonably necessary to conduct operations for exploring,
developing, producing and marketing Oil and Gas Substances, including but not limited
to geophysical operations, the drilling of wells, and the construction and use of roads,
canals, pipelines, tanks, water wells, disposal wells, injection wells, pits, electric and
telephone lines, power stations, and other facilities deemed necessary by Lessee to
explore, discover, produce, store, treat and/or transport Oil and Gas Substances
produced from the Leased Premises or other lands that share central facilities and are
jointly operated with the Leased Premises for gathering, treating, and compression.
Lessee may use in such operations, free of cost, any Oil and Gas Substances or other
substances produced on the Leased Premises, except water from Lessor's wells,
ponds, irrigation ditches, channels, siphons or surface. In exploring, developing,
producing or marketing from the Leased Premises or lands pooled or unitized therewith,
the ancillary rights granted herein shall apply (a) to the entire Leased Premises,
notwithstanding any partial release or other partial termination of this Lease; and (b) to
any other lands in which Lessor now or hereafter has authority to grant such rights in
the vicinity of the Leased Premises or lands pooled or unitized therewith. Lessee shall
bury all of its pipelines below ordinary plow depth on all Leased Premises, both
cultivated and non -cultivated. The surface location of any well shall not be located less
1 WHIRMEIN III IIIIir 111111 III 111111111 till
3532012 01/30/2008 10:108 Weld County, CO
2 of 25 R 131.00 0 0.00 Steve Moreno Clerk S Recorder
than 350 feet from any hangar, building, house or barn on the Leased Premises or other
lands of Lessor used by Lessee hereunder, without Lessor's consent, and Lessee shall
pay for damage caused by its operations to growing crops, buildings, graded fields, and
other improvements now on the Leased Premises or such other lands.
3. Term of Lease. This Lease shall be in force for a primary term of three (3)
years from the date hereof, and for as long thereafter as Oil and Gas Substances
covered hereby are produced in paying quantities from the Leased Premises or from
lands pooled or unitized therewith or this Lease is otherwise maintained in effect
pursuant to the provisions hereof.
4. Operations. If Lessee drills a well which is incapable of producing in paying
quantities (hereinafter called "dry hole") on the Leased Premises or lands pooled or
unitized therewith, or if all production (whether or not in paying quantifies) permanently
ceases from any cause, including a revision of unit boundaries pursuant to the
provisions of this Lease or the action of any governmental authority, then in the event
this Lease is not otherwise being maintained in force it shall nevertheless remain in
force if Lessee commences further operations for reworking an existing well or for
drilling an additional well or for otherwise obtaining or restoring production on the
Leased Premises or lands pooled or unitized therewith within 90 days after completion
of operations on such dry hole or within 90 days after such cessation of all production.
If after the primary term this Lease is not otherwise being maintained in force, but
Lessee is then engaged in Operations, as defined below, this Lease shall remain in
force so long as any one or more of such Operations are prosecuted with no interruption
of more than 90 consecutive days, and if any such Operations result in the production of
Oil and Gas Substances, as long thereafter as there is production in paying quantities
from the leased premises or lands pooled or unitized therewith.
After completion of a well capable of producing in paying quantities hereunder, Lessee
shall drill such additional wells on the Leased Premises or lands pooled or unitized
therewith as a reasonably prudent operator would drill under the same or similar
circumstances to (a) develop the Leased Premises as to the reservoir(s) that are
determined to be capable of producing in paying quantities on the Leased Premises or
lands pooled or unitized therewith, or (b) protect the Leased Premises from
uncompensated drainage by any well or wells located on other lands not pooled or
unitized therewith. Notwithstanding the foregoing, and, barring any unforeseen
circumstances, the occurrence of which are not within the control of Lessee, and which
Lessee shall notify Lessor in writing of immediately, Lessee agrees to drill or cause to
be drilled the following wells on the approximate timetable indicated below:
GWCAA 2-35 (SH) July 1, 2008
GWCAA 2-32 (DH) July 8, 2008
GWCAA 2-33 (OH) July 18, 2008
GWCAA 2-31 (DH) July 28, 2008
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GWCAA 2-34 (DH) August 8, 2008
GWCAA 2-45 (SH) August 18, 2008
GWCAA 2-41 (DH) August 2.4, 2008
GWCAA 2-42 (DH) September 3, 2008
GWCAA 2-43 (DH) September 13, 2008
GWCAA 3-11 (SH) November 15, 2008
GWCAA 3-12 (SH) November 22, 2008
GWCAA 3-15 (SH) November 29, 2008
GWCAA 3-13 (DH) December 6, 2008
GWCAA 3-14 (DH) December 16, 2008
Lessee, may at any time, and from time to time, deliver to Lessor a recordable release
of this Lease as to an undivided portion of any or all of the Leased Premises and shall
be relieved as to the obligation to drill any well listed above that may be scheduled for
drilling if such well(s) is to be drilled on acreage that is released.
Further and notwithstanding the foregoing, Lessee shall be excused from drilling in
accordance with such timetable in the event any rule, regulation, order, policy or
directive of any kind by the Federal Aviation Administration prevents Lessee from
meeting this timetable or otherwise prevents the drilling of any well(s) listed above. In
addition, if Lessee determines that Lessor owns less than 50% mineral interest in any
part of the Lease Premises comprising the spacing unit for any of the above wells,
Lessee shall be excused from drilling any such well under the above timetable but
Lessee shall work diligently to cause such well or wells to be promptly drilled.
There shall be no covenant, express or implied, to drill exploratory wells or any
additional wells except as expressly provided herein. As used herein, the term
"Operations" shall mean any activity conducted on or off the Leased Premises that is
reasonably calculated to obtain or restore production, including without limitation, (i)
drilling or any act preparatory to drilling (such as obtaining permits, surveying a drill site,
staking a drill site, building roads, clearing a drill site, or hauling equipment or supplies);
(ii) reworking, plugging back, deepening, treating, stimulating, refitting, installing any
artificial lift or production -enhancement equipment or technique; (iii) constructing
facilities related to the production, treatment, transportation and marketing of
substances produced from the Leased Premises; and (iv) contracting for marketing
services and sale of Oil and Gas Substances.
5. Shut-in Royalty. If, after the primary term, one or more wells on the Leased
Premises are capable of producing Oil and Gas Substances in paying quantities, but
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such well or wells are either shut in or production therefrom is not being sold by Lessee,
due to a lack of a market for the gas from such shut in well or wells, such well or wells
shall nevertheless be deemed to be producing in paying quantities for the purpose of
maintaining this Lease. If for a period of 90 consecutive days after the primary term
such well or wells are shut in or production therefrom is not sold by Lessee, then
Lessee shall pay a royalty shut-in payment. The per well shut-in payment shall be the
product obtained by multiplying $3.00 by the number of net acres within the drilling unit
(established by any applicable Colorado Oil and Gas Conservation Commission
("COGCC")) rule or order in which the shut-in well is located, for each shut-in well. The
initial payment shall be paid at the end of the 90 -day period referred to above and each
anniversary thereof until the subject well is placed on production or plugged and
abandoned. Lessee's failure to properly pay shut-in royalty shall render Lessee liable
for the amount due, and shall constitute a default under this Lease.
6. Royalty Payment. For all Oil and Gas Substances that are physically produced
from the leased premises, including casinghead gas, methane and coalbed-methane, or
other gaseous substances, or lands pooled, unitized or communitized therewith, and
sold, Lessor shall receive as its royalty:
18.75% (percent) of the sales proceeds actually received by Lessee or, if applicable, its
affiliate, as a result of the sale of the affected production to an unaffiliated party, of all
Oil and Gas Substances produced from vertically drilled wells; and
15.00% (percent) of the sales proceeds actually received by Lessee or, if applicable, its
affiliate, as a result of the sale of the affected production to an unaffiliated party of all Oil
and Gas Substances produced from directionally drilled wells.
The royalty shall be paid in cash and shall be calculated based upon the actual
proceeds received by Lessee (before deduction of any and all production, marketing or
other costs) in an arms length sale of the Oil and Gas Substances. All post production
costs, including costs of marketing the oil and gas produced on the Leased Premises,
compression, dehydration, transportation, removal of liquid or gaseous substances or
impurities, and any other treatment or processing, shall be borne by Lessee and such
costs shall not directly or indirectly reduce the royalty payments to Lessor. Lessor is a
tax exempt entity, therefore, severance and ad valorem taxes associated with Lessor's
share of production (Royalties) will not be due and payable. Should Lessor's interest
become taxable, all taxes required by law to be withheld shall be withheld and paid in
accordance with such applicable laws.
If Lessee uses the Oil and Gas Substances (other than as fuel in connection with the
production and sale thereof) in lieu of receiving sale proceeds, the price to be paid to
Lessor for the Oil and Gas Substances used under this provision shall be based upon
arm's -length sale(s) to unaffiliated parties for the applicable month that are obtainable,
comparable in terms of qualify and quantity, and in closest proximity to the Leased
Premises.
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7. Bonus Consideration. Upon execution of this Lease, Lessee shall pay to
Lessor the consideration required under that certain Lease Bonus Consideration
Agreement executed this same date by the parties.
8. Pooling. Lessee shall have the right but not the obligation to pool or communitize
all or any part of the Leased Premises or interest therein with any other lands or
interests, as to any or all depths or zones, and as to any or all substances covered by
this Lease, either before or after the commencement of drilling or production, whenever
Lessee deems it necessary or proper to do so in order to prudently develop or operate
the Leased Premises, whether or not similar pooling authority exists with respect to
such other lands or interests. The size of each pooled or communitized area shall be
based on the appropriate drilling unit size based upon the applicable COGCC rules or
orders. In exercising its pooling rights hereunder, Lessee shall file of record a written
declaration describing the unit and stating the effective date of pooling. Production,
drilling or reworking operations anywhere on a unit which includes all or any part of the
Leased Premises shall be treated as if it were production, drilling or reworking
operations on the Leased Premises, except that the production on which Lessor's
royalty is calculated shall be that proportion of the total unit production which the net
acreage covered by this Lease and included in the unit bears to the total acreage in the
unit, but only to the extent such proportion of unit production is sold by Lessee. In the
event a unit is formed hereunder before the unit well is drilled and completed, so that
the applicable pooling criteria are not yet known, the unit shall be based on the pooling
criteria Lessee expects in good faith to apply upon completion of the well; provided that
within a reasonable time after completion of the well, the unit shall be revised if
necessary to conform to the pooling criteria that actually exist. Pooling in one or more
instances shall not exhaust Lessee's pooling rights hereunder, and Lessee shall have
the recurring right but not the obligation to revise any unit formed hereunder by
expansion or contraction or both, either before or after commencement of production, in
order to conform to the well spacing or density pattern prescribed or permitted by the
governmental authority having jurisdiction, or to conform to any productive acreage
determination made by such governmental authority. To revise a unit hereunder,
Lessee shall file of record a written declaration describing the revised unit and stating
the effective date of revision. To the extent any portion of the Leased Premises is
included in or excluded from the unit by virtue of such revision, the proportion of unit
production on which royalties are payable hereunder shall thereafter be adjusted
accordingly.
9. Unitization. Lessee shall have the right but not the obligation to commit all or
any part of the leased premises or interest therein to one or more unit plans or
agreements for the cooperative development or operation of one or more oil and/or gas
reservoirs or portions thereof, if in Lessee's judgment such plan or agreement will
prevent waste and protect correlative rights, and if such plan or agreement is approved
by the federal, state or local governmental authority having jurisdiction. When such a
commitment is made, this Lease shall be subject to the terms and conditions of the unit
plan or agreement, including any formula prescribed therein for the allocation of
production from a unit. Upon permanent cessation thereof, Lessee may terminate the
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unit by filing of record a written declaration describing the unit and stating the date of
termination. Pooling hereunder shall not constitute a cross -conveyance of interests.
10. Payment Reductions. If Lessor owns less than the full mineral estate in all or
any part of the Leased Premises, payment of royalties and shut-in royalties hereunder
shall be reduced as follows: royalties and shut-in royalties for any well on any part of the
Leased Premises or lands pooled therewith shall be reduced to the proportion that
Lessor's interest in such part of the Leased Premises bears to the full mineral estate in
such part of the Leased Premises. To the extent any royalty or other payment
attributable to the mineral estate covered by this Lease is payable to someone other
than Lessor, such royalty or other payment shall be deducted from the corresponding
amount otherwise payable to Lessor hereunder.
11. Ownership Changes. The interest of either Lessor or Lessee hereunder may
be assigned, devised or otherwise transferred in whole or in part, by area and/or by
depth or zone, and the rights and obligations of the parties hereunder shall extend to
their respective successors and assigns. No change in Lessor's ownership shall have
the effect of reducing the rights or enlarging the obligations of Lessee hereunder, and
no change in ownership shall be binding on Lessee until 60 days after Lessee has been
furnished the original or duly authenticated copies of the documents establishing such
change of ownership to the satisfaction of Lessee or until Lessor has satisfied the
notification requirements contained in Lessee's usual form of division order. If Lessee
transfers its interest hereunder in whole or in part Lessee shall be relieved of all
obligations thereafter arising with respect to the transferred interest, and failure of the
transferee to satisfy such obligations with respect to the transferred interest shall not
affect the rights of Lessee with respect to any interest not so transferred. If Lessee
transfers a full or undivided interest in all or any portion of the area covered by this
Lease, the obligation to pay or tender shut-in royalties hereunder shall be divided
between Lessee and the transferee in proportion to the net acreage interest in this
Lease then held by each. If Lessee transfers any interest hereunder, it will notify Lessor
in writing within 30 days of the effective date of such transfer.
12. Regulation and Delay. Lessee's obligations under this Lease, whether express
or implied, shall be subject l:o all applicable laws, rules, regulations and orders of any
governmental authority having jurisdiction, including restrictions on the drilling and
production of wells, and regulation of the price or transportation of oil, gas and other
substances covered hereby. When drilling, reworking, production or other operations
are prevented or delayed by such laws, rules, regulations or orders, or by inability to
obtain necessary permits, equipment, services, material, water, electricity, fuel, access
or easements, or by fire, flood, adverse weather conditions, war, sabotage, rebellion,
insurrection, riot, strike or labor disputes, or by inability to obtain a satisfactory market
for production or failure of purchasers or carriers to take or transport such production, or
by any other cause not reasonably within Lessee's control, this Lease shall not
terminate because of such prevention or delay, and, at Lessee's option, the period of
such prevention or delay shall be added to the term hereof. Lessee shall not be liable
for breach of any provisions or implied covenants of this Lease when drilling, production
or other operations are so prevented or delayed.
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13. Warranty of Title. Lessor provides no warranty concerning the quantity or
quality of mineral interests it actually owns beneath the surface of the Leased Premises
or that may be leased or encumbered by others. Prior to any oil or gas well drilling
operations commencing, Lessee shall conduct, at its sole expense, a title search of all
lands and minerals included in this Lease to determine the actual ownership interest(s)
and availability of such mineral interests. Copies of all title work performed shall be
provided at no cost to Lessor upon completion of such title work, provided, Lessor shall
treat the title work as confidential information.
14. Indemnity. Lessee will indemnify and hold Lessor, its officers, directors,
employees, agents, successors and assigns (hereafter collectively referred to as
"Indemnified Parties") harmless from any and all claims, demands, suits, losses,
damages, and costs (including, without limitation, any attorney fees) incurred by the
Indemnified Parties which may be asserted against the Indemnified Parties by reason of
or which may arise out of or which may be related to Lessee's activities on the leased
premises (including, without limitation, any claims by any owners or lessees of minerals
that Lessee's operations hereunder are either illegal, unauthorized, or constitute an
improper interference with their rights).
15. Other Provisions. Additional terms of this Lease are set forth on Exhibit B
attached hereto and incorporated herein by reference.
16. Subrogation. Lessee shall have the right at any time to redeem or pay any
mortgages, taxes, liens on the Leased Premises in the event of default of payment by
Lessor, and Lessee shall be subrogated to the lights of the holder thereof.
17. Binding Effect. This Lease shall be binding upon and shall inure to the benefit of
Lessor and Lessee and their respective successors and assigns.
18. Removal of Machinery. Lessee shall have the right at any time to remove all
machinery placed on the Leased Premises by it, including the right to draw and remove
casing, which removal shall be completed within six months after the termination of this
Lease.
19. Recording. A fully executed copy of this Lease with all attachments and exhibits
attached thereto shall be promptly recorded in the real property records of Weld County
Colorado by Lessee and Lessee shall provide a copy of same to Lessor after recording.
7
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By:
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IN WITNESS WHEREOF, the parties have executed this Oil and Gas Lease on the
day and year written above.
LESSOR:
GREELEY-WELD,MOUNTY
AIRPORT AUTHORdY:
CI I/ (�
By:
Ed Phillipsen
Chairman
ATTEST:
LESSEE:
PETRO CANADA RESOU$CES (USA) INC.
By:
Dennis J. G
Manager of Land
ppF, °b
^iRq`. 9%
� Gaa
;r�± L g.
s
rr
Ernie Crownover 'kuRP I
Secretary/Treasurer Y �.A`
Wr
ACKNOWLEDGEMENT
STATE OF COLORADO )
) ss.
COUNTY OF Oeu..�eC )
The. foregoing instrument was acknowledged before me this o'Y day of
(t4/JLl(Av4Q , 2007, by Dennis J. Gustafson, as Manager of Land for Petro -Canada
Resources SA) Inc..
Witness my hand and official seal.
My commission expires:
8
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EXHIBIT A
Attached to and made a part of that certain Oil and Gas Lease dated(j/M )-11, 2008,
by and between the Greeley -Weld County Airport Authority, as Lessor and Petro -Canada
Resources (USA) Inc.,as Lessee
Description of Leased Premises
Tract lA
Township 5 North, Range 65 West, 6th Principal Meridian
Section 2: A tract of land located in the E/2SE/4 of Section 2 lying south
of Colorado State Highway #263 and north of the north right of
way line of the Ogilvy Ditch, being a portion of the tract of
land described in the Executors' Deed dated January 15, 1975,
recorded in Book 732, Reception No. 1653750, as follows:
Beginning at the Southeast Corner of said Section 2, and
considering the East line of the Southeast Quarter (SE/4) of
said Section 2, as bearing North 01°05'46" East, with all other
bearings contained herein relative thereto; thence North
01°05'46" East, along the Fast line of the Southeast Quarter
(SE/4) of said Section 2, 1429.39 feet to a point on the South
right-of-way line of Colorado State Highway #263; thence
South 60°39'19" West, along said South right-of-way line,
1535.88 feet; thence South 01°02'52" West, 672.04 feet to the
South line of the Southeast Quarter (SE/4) of said Section 2;
thence South 89°48'16" Fast, along the South line of the
Southeast Quarter (SE/4) of said Section 2, 1323.77 feet to the
Southeast corner of said Section 2, said point being the Point of
Beginning.
Containing 31.935 acres, more or less. (15.9675 Net)
Tract 3
Township 5 North, Range 65 West, 6th Principal Meridian
Section 2: A tract of land located in the NW/4 of Section 2, more fully
described in the Final Decree dated April 20, 1948, CV
#I1005, District Court of Weld County, Colorado, recorded in
Book 1225, Page 585, as follows:
Beginning at a point on the West line of said Northwest
(continued on next pave(
Ex A, Page I of 6
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Quarter (NW/4) 1915 feet south of the northwest corner
thereof, thence South 500 feet, more or less, along the West
line to the southwest corner of said Northwest Quarter (NW/4),
thence East 1430 feet along the south line of said Northwest
Quarter (NW/4), thence North 100.5 feet, thence North 74°l3'
West 1469.4 feet, more or less, to the place of beginning.
Containing 10.727 acres, more or less. (Gross & Net)
Tract 8
Township 5 North, Range 65 West, 6" Principal Meridian
Section 2: A tract of land located in the E/2N W/4, more fully described in
a Warranty Deed dated January 6, 1948, recorded in Book
1218, Page 258, as follows:
Beginning at a point on the south line of the E/2 of the NW/4
of Section 2, Township 5 North, Range 65 West of the 6'"
P.M., 80 feet east of the southwest corner thereof, thence East
372 feet, thence North 7493' West 386.5 feet, thence South
100.5 feet to the place of beginning.
Containing 0.421 acres, more or less. (Gross & Net)
Tract 9
Township 5 North, Range 65 West, 6th Principal Meridian
Section 2: That part of the E/2SE/4 of Section 2 more fully described in a
Final Decree dated April 20, 1948, Civil Action No. 11005,
District Court of Weld County, Colorado, recorded in Book
1225, Page 589, as follows:
Beginning at a point on the east line of said E/2 of the SE/4,
1008 feet south of the northeast corner thereof, thence South
172 feet along said east line to its intersection with the
northerly line of the County Road, known as the Eight Street
Road, thence South 61°02' West 1492 feet, more or less to a
point at the intersection of said northerly line of said County
Road with the west line of said E/2 of the SE/4, thence North
1252 feet along said west line, thence South 74°13' East 1330
feet more or less to the place of beginning, containing 21.06
acres, more or less.
ALSO, that part of the SE/4SE/4 of Section 2 more fully
described in a Quit -Claim Deed dated December 13, 1904,
(continued on next page)
a A, Page 2 of 6
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recorded in Book 212, Page 53, as follows:
A strip of land 60 feet in width running in a northeasterly and
southwesterly direction over and across the SE/4SE/4 of
Section 2.
AND, that part of the E/2SE/4 of Section 2 more fully
described in a Right of Way Deed dated January 13, 1941,
recorded in Book 1073, Page 199, as follows:
A strip of land 80 feet in width, 40 feet on each side of the
following described center line; beginning at a point on the
East line of said E/2SE/4, 1214 feet South from the Northeast
corner thereof, running thence South 59°54' West 1500 feet,
more or less, to a point of the West line of said E/2SE/4.
Containing 0.69 acres, more or less.
Containing 22.789 acres, more or less. (Gross & Net)
Tract 11
Township 5 North, Range 65 West, 6t' Principal Meridian
Section 2: SW/4 less and except
That portion of a tract of land lying within the NE/4SW/4 of
Section 2, more fully described in a Warranty Deed dated June
15, 1983, recorded in Book 999, Reception No. 01930765, as
follows:
Commencing at the Northeast corner of said Section 2 and
considering the North line of said Section to bear South
89°39'57" East with all other bearings contained herein being
relative thereto: Thence South 89°39'57" East along said North
line, 1402.94 feet to the Fact line of a parcel described in Book
116, Page 350, Weld County Records; Thence South
01°32'40" West along said East line, 1442.05 feet to a point
which lies 1010.00 feet at right angles northerly of the
centerline of the existing Weld County Municipal Airport
runway, said point being the True Point of Beginning; Thence
South 74°12'00" East, 1300.32 feet; Thence South 01°30'28"
West, 763.63 feet; Thence North 89°39'03" West, 702.00 feet;
Thence North 71°34'02" West, 584.11 feet to a point on the
east line of the parcel described in Book 116, Page 350; Thence
North 01°32'40" East along said East line, 928.79 feet
fcontinued on next page
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to the True Point of Beginning; containing 25.946 acres, more
or less. (Excepted Tract Contains 1.0 acre, more or less.)
ALSO less and except
That portion of the W/2SW/4 of Section 2 lying south of the
Ogilvy Ditch, shown on the Map recorded in Book 1508,
Reception No. 2453407, to have the following metes and
bounds calls:
Beginning at the SE/4 of Section 2, thence North 89°38'33"
West, 3,978.45 feet, to the Southwest corner of the SE/4SW/4
of Section 2 and the True Point of Beginning; Thence North
63°20':30" West 165.00 feet; thence North 71°25'30" West
285.00 feet; thence North 76°40'30" West, 352.00 feet; thence
South 83°39'30" West 190.00 feet; thence South 57°59'30"
West 114.00 feet; thence South 51°09'30" West 250.00 feet;
thence 589°38'33" East to the True Point of Beginning.
(Excepted Tract Contains 4.213 acres, more or less.)
Tract 11 Containing 149.611 acres, more or less, (Gross & Net)
Tract 12
Township 5 North, Range 65 West, 6th Principal Meridian
Section 2: W/2SE/4
Containing 75.520 acres, more or less. (Gross & Net)
Tract A
Township 5 North, Range 65 West, 6r' Principal Meridian
Section 3: A tract of land located in the W/2NE/4, more particularly
described in the Warranty Deed dated February 27, 1981,
recorded in Book 929, Reception No. 1851151, as follows:
COMMENCING at the Northeast corner of said Section 3 and
considering the East line of said Section 3 to bear
S01°34'53"W with all other bearings contained herein being
relative thereto; thence N88°46'59"W, along the North line of
the NE/4 of said Section 3, 2115.02 feet to a point on the West
line extended of a parcel described in Book 695, Reception No.
1616565, Weld County Records, said point being the TRUE
(continued on next page)
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POINT OF BEGINNING; thence Southerly along said West
line by the following five courses: SI l°27'54"E along said
West line, 563.63 feet to a point which lies 1000.00 feet at right
angles Northerly of the centerline of the existing Weld County
Municipal Airport Runway extended; 811°27'54"E, 46.75 feet
to a point on the West line of the E/2 of the NW/4 of the NE/4
of said Section 3; SI 1°07'43"E, 543.60 feet; S00°52'43"E,
688.00 feet; S00°07' 17"W, 709.78 feet to a point on the East-
West centerline of said Section 3; thence N89°36'11"W,
822.58 feet to the center of said Section 3; thence N0l °28'01 "E
along the North -South center of said Section 3 a distance of
2535.51 feet to the North quarter corner of said Section 3;
thence S88°46'59"E along the North line of the NE/4 of said
Section 3, 522.48 feet to the TRUE POINT OF BEGINNING.
Containing 42.703 acres, more or less. (Gross & Net)
Tract B
Township 5 North, Range 65 West, 6'" Principal Meridian
Section 3: W/2NE/4, less and except Tract A as described above
Containing 33.647 acres, more or less. (Gross & Net)
Tract C
Township 5 North, Range 65 West, 6i° Principal Meridian
Section 3: E/2NE/4, less and except
A tract of land located in the E/2NE/4NE/4, more fully
described in the Warranty Deed dated November 23, 1982,
recorded in Book 982, Reception No. 01909912, as follows:
COMMENCING at the Northeast corner of said Section 3 and
considering the East line of said Section 3 to bear
S0l°34'53"W, with all other bearings contained herein being
relative thereto; thence S01°34'53"W, 1066.20 feet along said
East line to the TRUE POINT OF BEGINNING; thence
continuing S0I°34'53"W, 163.07 feet to the Southeast corner
of the E/2 of the NE/4 of the NE/4 of said Section 3; thence
N88°59'47"W, 658.78 feet to the Southwest corner of said E/2
of the NE/4 of the NE/4; thence NO1°33'09"E, along the West
line of said E/2 of the NE/4 of the NE/4, a distance of 336.67
feet; thence parallel with and 1000 feet distant from the
(continued on next page)
Ex A, Page 5 of 6
1111113111 Mt tit 111111011111111 11111 I I I l l l l
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centerline of an existing Weld County Municipal Airport
Runway, S74°12'00"E, 679.74 feet to the TRUE POINT OF
BEGINNING. (Excepted Tract Contains 3.779 acres, more or
less.)
ALSO Less and Except:
A tract of land located within NE/4NE/4, more particularly
described in a Warranty Deed dated November 16, 1988,
recorded in Book 1216, Reception No. 02162352, as follows:
A parcel of land being part of Lot Two (2) of the NE/4 of
Section 3, being more particularly described as follows:
BEGINNING at the Northeast Corner (NE Cor) of said Section
3 and assuming the North line of said NE/4 as bearing North
88°46'59" West with all other bearings contained herein
relative thereto: thence North 88°46'59" West along said North
line, 360.38 feet to the TRUE POINT OF BEGINNING:
thence South 01°33'09" West, 972.72 feet; thence North
74°12'00" West, 308.48 feet; thence North 01°33'09" East,
895.05 feet to a point on the North line of said NE/4; thence
South 88°46'59" East along said North line, 299.00 feet to the
TRUE POINT OF BEGINNING. (Excepted Tract Contains
6.410 acres, more or less.)
ALSO Less and except
Lot A of Recorded Exemption No. 0961 -3 -I -RE 1128,
recorded in Book 1224, Reception No. 02170734, being a
portion of Lot 2 of the NE/4 of Section 3, described as follows:
BEGINNING at the Northeast corner of said Section 3, with
said Northeast corner monumented by a #4 rebar, and assuming
the North line of said NE/4 to bear North 88°46'59" West with
the North quarter corner of said Section 3 monumented by a #4
rebar, and with all other bearings contained herein relative
thereto: thence South 01°34'53" West 1066.20 feet; thence
North 74.12'00" West 564.19 feet; thence North 01°33'09"
East 924.14 feet to a point on the North line of said NE/4;
thence South 86°46'59" Fast along said North line 547.38 feet
to the TRUE POINT OF BEGINNING. (Excepted Tract
Contains 8.428 acres, more or less.)
Tract C Containing 57.272 acres, more or less. (Gross & Net)
Ex A, Page6o16
11111)11111111111111111 III 111111111111III111111IIIill!
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ADDENDUM A
to
EXHIBIT A of that certain Oil and Gas Lease datedti6✓) .0 2008,
by and between the Greeley -Weld County Airport Authority, as Lessor
and Petro -Canada Resources (USA) Inc.,as Lessee
Addendum A covering
Township 5 North. Range 65 West. 6th Principal Meridian
Section 2: Sf2, NW/4
Weld County, Colorado
Mill 11111111111 MIMINN III I ntt 111County,
1 II11111101 Sul
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ADDENDUM B
to
EXHIBIT A of that certain Oil and Gas Lease dated(' 1(4 dl9 , 2008,
by and between the Greeley -Weld County Airport Authority, as Lessor
and Petro -Canada Resources (USA) Inc.,as Lessee
Addendum B covering
Township 5 North, Range 65 West. 6th Principal Meridian
Section 3: NEJ4, E/2NW14
Weld County, Colorado
El2NW/4
Tract E
Trad F
1Wl2NE14
Tract A
Traub
Tact
Tract C
E/2NEI4
TractN
Tract h
1
111111111111111111111111 III 111111111111111111111 I I I I I11
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EXHIBIT B
GREELEY-WELD COUNTY AIRPORT AUTHORITY
OIL AND GAS LEASE AGREEMENT
Attached to and made a part of that certain Oil and Gas Lease dated
2008, by and between the Greeley -Weld County Airport Authority, as Lessorand ro-
Canada Resources (USA) Inc.,as Lessee
The following provisions are hereby incorporated into the Greeley -Weld County Airport
Authority Oil and Gas Lease. In any case where the below provisions may conflict or be
inconsistent with the provisions contained within the Lease, the provisions contained in
this Exhibit B shall supersede those within the Lease. Terms defined in the Lease shall
have the same meaning in this Exhibit B.
1. GENERAL
All lands and surface estates included in this Lease are a part of the Greeley -
Weld County Airport ("Airport"), a publicly owned and operated airport facility. No
activities carried out by the Lessee in conjunction with this Lease are intended to
have any negative impacts on the safe operation of the airport, airfield, airspace,
facilities, and development and growth of the airport. All of Lessees activities
shall be conducted in a manner which meets with the operational safety
standards, policies, and practices of the Federal Aviation Administration, the
Airport (as disclosed to Lessee), local ordinances and laws, and any other
regulatory agency with jurisdiction over the Airport.
2. RESERVATION OF RIGHTS BY LESSOR
Lessor reserves:
a. The right to construct any structure or other improvements, at any location
selected by Lessor, anywhere on the Leased Premises. If prior to Lessee
commencing operations at a location, Lessor commences construction of a
structure or other improvement on the Leased Premises, or otherwise informs
Lessee of its intent to construct improvements at a particular location, Lessee
will not locate any equipment, nor conduct any operations within 350 feet of
the proposed structure or improvement, unless otherwise approved of in
writing by Lessor.
b. The right to initiate or to continue irrigation and agricultural activities on the
Leased Premises. If Lessor decides to conduct agricultural activities on the
Leased Premises, to include irrigation and recognized soil conservation
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practices, Lessee will accommodate Lessor's agricultural use of the Leased
Premises.
c. The right to use the surface and subsurface of the Leased Premises as may
be reasonably necessary to explore for, extract, and market minerals from the
Leased Premises, to the extent such minerals are not covered by this Lease
or to the extent such minerals, including Oil and Gas Substances, revert to
Lessor pursuant to any terms of this Lease.
All of the rights retained by Lessor and the rights granted the Lessee herein shall
be exercised in such a manner that neither shall unduly interfere with the
operations of the other upon the Leased Premises.
3. APPROVED DRILLING LOCATIONS
Lessee shall be prohibited from drilling any well from any location within the
airfield or existing or future proposed hangar areas which is not identified as an
"Oil and Gas Operation Area" on Exhibit 1 attached to this Exhibit B. All drilling
operations shall take place from only those locations identified as approved
drilling locations on Exhibit 1 attached hereto. Lessee may request that drilling be
permitted from other locations on the Leased Premises not included on Exhibit 1,
however, Lessor is under no obligation to permit drilling operations from any
location not identified as such on Exhibit 1. Certain drilling operations from the
locations identified on Exhibit 1 shall require directional drilling techniques, (such
directional drilling costs shall be borne at Lessee's sole costs and expense). in
order to access the maximum amount of minerals beneath the surface of the
Leased Premises.
4. ACCESS ROADS, PIPELINES AND OTHER FACILITIES
All access roads to Lessee's operations upon the Oil and Gas Operation Areas,
all pipelines, pipeline easements and any other facility associated in any way with
Lessee's operations including but not limited to tank batteries are identified on
Exhibit 1 attached hereto
5. EASEMENTS
Lessee shall have a non-exclusive easement to use only those portions of the
surface of the Leased Premises identified as "Access Road," "Oil and Gas
Operations Area," or "Gas Pipeline" on Exhibit 1 attached hereto. Lessor shall
have the right at its sole cost and expense to relocate any and all of Lessee's
Access Roads, pipelines, tank batteries and any other equipment or use of the
surface of the Leased Premises to a location that is reasonably acceptable to
Lessee.
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6. ADDITIONAL SURFACE USE PROVISIONS, ACCESS ROADS, FENCES AND
FACILITIES.
With respect to its operations on the Leased Premises, Lessee will comply with
the following provisions:
a. Access Roads:
Access Roads shall be no more than 30 feet in width during
construction and final constructed Access Roads will not exceed 20
feet in width. Notwithstanding the foregoing, Lessor acknowledges
that Access Roads during drilling operations may be as wide as 60'
for a short distance in order to accommodate the access for the
drilling rig.
ii. Lessee will take reasonable steps to insure that all of its vehicles
accessing the Leased Premises on its behalf remain on the Access
Roads.
iii. Lessee will provide Lessor with a minimum of 10 days prior written
notice before restoring the surface of all Access Roads to be
permanently abandoned by Lessee. No later than 10 days
following receipt of such notice, Lessor may elect, in writing, not to
have such Access Roads abandoned by Lessee. In such event,
Lessee will have no liability under this Lease, or otherwise, to
restore the surface of the Leased Premises utilized as Access
Roads. Failure to timely respond will be deemed as Lessor's
election that Lessee proceed with the abandonment of the Access
Roads and the restoration of the surface thereof.
iv. Lessee will stockpile and save any topsoil removed while
constructing Access Roads for rehabilitation or re -seeding as
reasonably directed by Lessor.
v. Lessee will maintain all Access Roads in good repair and condition.
b. Surface Restoration:
Upon permanent cessation of Lessee's operations on all or any portion of
the Leased Premises, all areas thereof occupied or utilized by Lessee will
be restored by Lessee to their original contour as nearly as is reasonably
practicable, and re -seeded if so requested by Lessor; provided however,
that Lessee's intent to abandon any Access Roads will be subject to the
remaining provisions hereof. Lessee shall also comply with all interim
reclamation requirements found in the Colorado Oil and Gas Conservation
Commission ("COGCC") Rules and Regulations.
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c. Other:
Lessee will install culverts on the Leased Premises that may be
necessary to maintain present drainage and irrigation otherwise
affected by its operations on the Leased Premises.
ii. If by reason of the activities of Lessee, including, but not limited to,
drilling, completing, equipping, and operating of the Wells, there is
unanticipated damage to personal property of the Lessor, including,
but not limited to, irrigation wells, fences, culverts, bridges,
pavement, concrete, roads, runways, taxiways, pipelines, ditches,
or irrigation systems, Lessee will repair or replace such items after
consultation with and to the reasonable satisfaction of Lessor.
Lessor will notify Lessee of any items damaged after each Well's
construction and Lessee will promptly repair or replace such items
after consultation with Lessor.
iii. Lessee agrees that all trash, refuse, pipe, equipment, liquids,
chemicals, or other materials brought on the Leased Premises that
are not necessary for continued operations of the Wells will be
removed and disposed of away from the Leased Premises no later
than 30 days after the completion of the Wells. No such items will
be burned or buried on the Leased Premises.
iv. Lessee shall install and maintain at its sole cost and expense
privacy fencing around its Wells and production facilities which
comply with the Rules and Regulations of the COGCC.
v. Lessee shall install and maintain gates and locks reasonably
necessary for the security of any Wells and/or Facilities. Such
gates and locks shall be of a type and quality customarily used by
Lessee for such purpose. Lessee shall provide Lessor with keys to
all such locks.
vi. Lessee shall install low profile tanks and treaters and shall paint the
production facilities, including wellhead guards, with paint of a color
selected by Lessor so long as the color and type of paint are
approved by the COGCC. Such tanks shall not bear the name or
logo of Lessee or any advertisements, except to the extent required
by COGCC rules.
vii. Lessor is solely responsible for any damages to the Leased
Premises caused by Lessor or its agent's operations on the Leased
Premises,
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7. ADDITIONAL COMPENSATION.
Lessee shall pay Lessor five -thousand dollars ($5,000) for each well drilled on
the cultivated farmground identified on Exhibit 1 as such. Aside from this
payment, Lessor acknowledges the sufficiency of the covenants and agreements
contained herein to compensate Lessor in full for any and all damage to the
surface which may occur as a result of Lessee's reasonable and customary use
of the Leased Premises for the operations contemplated hereby, and Lessor
hereby waives and releases any claim for surface use or damages arising out of
such use. Notwithstanding the above, in the event Lessee is ever required to
conduct subsequent operations on such cultivated farmground or to cross,
occupy or utilize for its operations any part of the Leased Premises other than
that shown on Exhibit 1 it shall be liable for any and all damages that may occur
as a result thereof. At no point will Lessee be held liable or responsible for
damages caused by Lessor or its agent's operations on the Leased Premises.
S. RESTRICTED ACCESS TO LEASED PREMISES.
Lessee shall have no right to access the surface of the Leased Premises at any
location other than those locations identified on Exhibit 1 attached hereto.
Except for the locations depicted on Exhibit 1, Lessee shall not use or occupy
any part of the surface of the Leased Premises at any time or in any manner.
Lessee shall comply with all of Lessor's rules and regulations and security
practices at all times.
9. COORDINATION OF ACTIVITIES AFFECTING NAVIGABLE AIRSPACE.
Lessee shall coordinate with Lessor in advance of each and every operation
requiring the use of drilling rigs, work over rigs, or other towers or equipment that
rise above the normal height of the permanent well equipment at each location.
If deemed necessary by Lessor, such equipment shall not be erected until after
all necessary airspace reviews have been accomplished by Lessor or the
Federal Aviation Administration. At the sole discretion of Lessor and at the sole
cost and expense of Lessee, all such equipment shall be flagged during daytime
hours, and lighted during nighttime hours for obstruction marking purposes.
Nighttime work lighting which may be used at each location shall be utilized and
directed so as not to have any impacts on the nighttime operation of aircraft.
10. TERMINATION.
Lessor reserves the right to terminate this Lease in whole or in part, at Lessor's
option, upon written notification to Lessee:
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If at any time the Leased Premises or any part thereof is necessary for the
construction, security, and operations of the Airport, provided however, that if
only a portion of the Leased Premises is necessary for such purposes, then only
that portion of the Lease may be terminated.
If at any time the Lessee's operations hereunder are deemed by Lessor, the
Federal Aviation Administration, or any other regulatory agency with jurisdiction
over the Airport to be a hazard to aviation or the safe operation of the Airport.
Upon either partial or total termination of the Lease under this paragraph, Lessor
shall buy out Lessee's economic Proved Developed Reserves within the portion
of the Leased Premises subject to termination based upon a 10% discounted
cash flow analysis of the projected production based on the life of the well(s).
Proved Developed Reserves shall be considered those proved reserves
estimated to be recoverable through existing wells. Reserves in proved
reservoirs penetrated by wells but currently not being produced shall be
classified as developed, if it is anticipated such reserves will be recovered
through existing wells requiring no more than workover operations.
Lessee shall not be entitled to any payment by Lessor of any Proved
Undeveloped Reserves. In the event of partial or total termination of the Lease
in areas with Proved Undeveloped Reserves as described herein, Lessor shall
refund to Lessee, the pro -rata portion of the Bonus Consideration paid to Lessor
by Lessee at the execution date of this Lease associated with the net mineral
acres affected by the termination, plus additional compensation in an amount
equal to the change in the Consumer Price Index for the pro -rata portion of the
Bonus Consideration being refunded, for the period between the execution date
of this Lease and the date that notice of termination is made to Lessee. As used
herein, the term "Consumer Price Index" shall mean the United States
Department of Labor, Bureau of Labor and Statistics, Consumer Price Index, all
Urban Consumers, all items, Denver/Boulder/Greeley Urban (1982-1984, equals
100), or the successor of that Index.
IL SECONDARY CONTAINMENT.
Lessee shall provide adequate secondary containment of all tanks, pipelines and
other equipment which stores, transfers, or otherwise holds liquid product, to
include berming, diking, or other means acceptable to Lessor, so that the
capacity of the secondary containment system is at least equal to the capacity of
the largest single storage tank, plus 10 percent freeboard. Any spill or discharge
of any quantity reportable under the airport's Spill Prevention Control and
Countermeasures Plan (SPCC) shall be reported to Lessor immediately, and any
amounts spilled shall be cleaned up and mitigated without delay. In all cases,
Lessee shall comply with all COGCC rules and regulations for secondary
containment, and those of Lessor as may be required or provided for in its Storm
Water Discharge Permit, Storm Water Management Plan, Spill Prevention
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Control and Countermeasures Plan, or other state or federal regulations which
pertain to Lessor's property.
12. DEFAULT AND RIGHT TO CURE.
a. In the event of alleged default by either Party in the payment of any of the
sums hereinabove provided to be made, in obligations to be performed, or
any other terms, conditions or covenants of this Lease, the Party will be
notified, by certified mail, return receipt requested, of the alleged default. The
receiving Party will have 30 business days from receipt of the written
notification in which to dispute or otherwise respond to the notification before
the other Party may allege default in any court. In the event any matter is
litigated and there is a final determination that a breach or default has
occurred that could result in a forfeiture of Lessee's rights under this Lease in
whole or in part, Lessee shall have not more than thirty (30) days after such
determination to remedy the breach or default before such forfeiture shall be
effective. This Lease shall not be forfeited if Lessee is able to remedy such
default or breach within such time.
b. Except as otherwise agreed in writing, no waiver by either Party of any breach
by the other Party of any of its obligations, agreements, or covenants
hereunder will be deemed to be a waiver of any subsequent or continuing
breach of the same, nor will any forbearance by either Party to seek a remedy
for any breach by the other Party be deemed to be a waiver of rights or
remedies with respect to such breach. In no event will either party be liable
to any party for consequential or exemplary damages for activities undertaken
within the scope of this Lease.
13. NOTICE.
Notice by either Party will be promptly given, orally if possible (with the exception
of the default notice described in Paragraph 7), with subsequent written
confirmation sent by United States mail, postage prepaid and addressed to either
Party at the address as designated below; or to such other place as either Party
may from time to time designate by notice to the other:
Lessor
Greeley Weld County Airport Authority
Attention: Mike Reisman, Manager
P.O. Box 727
Greeley, CO 80631
Phone: (970) 336-3000
Fax: (970) 336-3030
B-7
Lessee
Petro-Canda Resources (USA) Inc.
Attention: Mari S. Gillman
999 18'" Street, Suite 600
Denver, CO 80202-1904
Phone: (303) 297-2100
Fax: (303) 297-7708
1111111 1111 111111 I I I I I I I I I 111111111111 III 1111111 111111
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24 of 25 R 131.00 0 0.00 Steve Moreno Clerk & Recorder
14. FURTHER ASSURANCES.
Upon reasonable request, the Parties agree to timely execute any and all
documents necessary to effectuate the terms of this Lease
15. ENTIRE AGREEMENT.
This instrument contains the entire agreement between the Parties and may not
be modified orally or in any other manner other than by agreement in writing
signed by all Parties or their respective successors or assigns.
16. GOVERNING LAW AND VENUE.
This Agreement will be governed by, construed and enforced in accordance with
the laws of Colorado and venue shall be limited to Weld County District Court.
17. ATTORNEY'S FEES AND COSTS.
The Parties agree that the prevailing Party in any action resulting from a breach
of this Agreement will be entitled to its reasonable attorney's fees and costs
incurred therein.
18. APPLICABLE GOVERNMENTAL IMMUNITY.
No term or condition of this Lease shall be construed or interpreted as a waiver,
express or implied, of any of the immunities, rights, benefits, protection, or other
provisions for Lessor, of the Colorado Governmental Immunity Act, C.R.S. §24-
10-101 et seq. or the Federal Tort Claims Act, 28 U.S.C. 2671 et seq. as
applicable, as now or hereafter amended.
19. SEVERABILITY.
Any covenant, condition or provision herein contained that is held to be invalid by
any court of competent jurisdiction shall be considered deleted from this Lease,
but such deletion shall in no way affect any other covenant, condition or provision
herein contained so long as such deletion does not materially prejudice any party
in their rights and obligations contained in valid covenants, conditions or
provisions.
20. NO JOINT VENTURE.
This Lease is not intended to, nor shall it be interpreted to create a joint venture,
partnership or any other relationship between the parties other than that of
surface owner, mineral owner, and oil and gas lessee
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DISCLAIMER OF INTEREST
WHEREAS, the County of Weld, State of Colorado, acquired certain property in T.5N, R.65W of
the 6th P.M. that included land in Section 2, being all that part of the E2 of the SE4 lying South of State
Highway 263, as furthermore described by metes and bounds legal description in a Personal
Representative's Deed of the Estate of Robert S. Davis, deceased, recorded on December 30, 1975, in
Book 786, Reception No. 1707636 (the "Excepted Property" 1;
WHEREAS, the Greeley -Weld County Airport Authority, a Body Corporate and Politic of the state
of Colorado, subsequently acquired property in Section 2, T.5N, R.65W of the 6th P.M., excluding the
Excepted Property, pursuant to a Quit Claim Deed from The City of Greeley, a Municipal Corporation,
the County of Weld, State of Colorado, and the Greeley -Weld County Airport Authority, formerly known
as Weld County Municipal Airport Authority and Weld County Municipal Airport Authority, a Body
Corporate and Politic of the state of Colorado, recorded on May 15, 1987, Book 1156, Page 2021,
Reception No. 2099888; and
WHEREAS, the Greeley -Weld County Airport Authority does not now claim any right, title or
interest in or to the Excepted Property.
NOW, THEREFORE, Greeley -Weld County Airport Authority does hereby disclaim any right, title
or interest in or to the Excepted Property.
IN WITNESS WHEREOF, the Greeley -Weld County Airport Authority has duly executed this
Disclaimer of Interest on this 1' day of 0 p - \ , 2011.
GREELEY-WELD COUNTY AIRPORT AUTHORITY,
A Body Corporate aolitic of the State of
Colorado
By: �
ham. c-(_ . a �. \�,N N t
STATE OF COLORADO }
COUNTY OF WELD }
The foregoing instrument was acknowledged before me this Zia day of Nt , 2011,
by \\o,(�C.,. ‘a
for the GREELEY-WELD CO L .�,; • PORT AUTHORITY, a Body Corporate and Politic of the State of
Colorado.
jnotary stamp)
Notary Public, State of Colorado
My Commission Expires: I \ t 1 1 1'
HOLLAND&HART PPR
September 20, 2010
Petroleum Development Corporation
1775 Sherman Street, Suite 3000
Denver, Colorado 80203
Attention: John Krattenmaker
Re: DRILLING AND DIVISION ORDER TITLE OPINION
Noffsinger 2C Well; Noffsinger 31-2CD Well;
Noffsinger 32-2CD Well; Noffsinger 2SD Well;
Noffsinger 21W Well; and Noffsinger 2VD Well
(collectively the "Subject Wells"); Weld County, Colorado
Ladies and Gentlemen:
Jeanine Feriancek
Phone (303) 295-8185
Fax (303) 727-5854
jferlancek@hollandhart.com
Pursuant to Petroleum Development Corporation's request, we have examined title to the
following described land situated in Weld County, Colorado (sometimes called the "captioned land"
herein), and give you our opinion thereon as follows:
Township 5 North, Range 65 West, 6th P.M.
Section 1: W/2NW/4
Section 2: NE/4, N/2SE/4
Township 6 North, Range 65 West, 6th P.M.
Section 35: S/2SE/4
containing 388.520 acres, more or less
In rendering this opinion we have examined the following title materials (the "Materials Examined").
I. MATERIALS EXAMINED
1. Letters dated July 7, 2010 and August 4, 2010 to the undersigned from Barb White,
Contract Landman, identifying the wells to be drilled by Petroleum Development Corporation on the
captioned land, and providing well plats relating to said wells.
2. Acquisition Title Opinion dated December 17, 1987 prepared by John H. Shultz for Lyco
Acquisition 1984 Limited Partnership covering the NE/4 and E/2SE/4 of Section 2, T. 5 N., R. 65 W.,
except certain tracts identified therein (the "Schultz Title Opinion"), based on prior title opinions that
covered said land from inception of title to November 7, 1984 and a supplemental abstract of title
prepared and certified by Transamerica Title Insurance Company covering documents of record in Weld
County with respect to said land for period from July 25, 1984 at 7:45 a.m. to November 18, 1987 at 7:45
a.m.
Holland&Hart LIP
r'laoi„p[3031295-8000 nx[3031295.8261 www.hotlandhart.com
555 17th Street Suite3200 Denver, CO 80202 rdl:ilingaddr._,f P.O. Box 8749 Denver, CO 80201-8749
Denver Aspen Bauld@It03tli8tt[gc9Iyilgs:MstaacTeatlleillyeEttilltiveg1dBecRiebryeutasX18[3C4asfitig[$c niorbahabll1(t Ebvltgle Washington, DC. C:
and its subsidiaries are in no way liable to any person, firm or corporation for any loss or inconvenience
innorl h,r fho nee. no rolienno ..nnn Ihic nnininn"
HOLLAND&HART
Petroleum Development
Corporation
September 20, 2010
Page 5
TRACT 3-A
Section 2: That part of the NE/4SE/4 lying north of the county road, less and except
Tract 3-B and Tract 3-E
Noffsinger Manufacturing Company, Inc. 100.000000%
TRACT 3-B
Section 2:
That part of the tract described by metes and bounds in the Final Decree
dated April 20, 1948 in Civil Action No. 11005 (see item 1 in Appendix A
hereto) lying in the NE/4SE/4
Greeley -Weld County Airport Authority 100.000000%
TRACT 3-C
Section 2:
That part of the tract described by metes and bounds in the Executors' Deed
dated January 15, 1975 (recorded in Book 732, Reception No. 1653750) (see
item 2 in Appendix A hereto) lying in the NE/4SE/4
County of Weld, State of Colorado 100.000000%
TRACT 3-D
Section 2:
That part of the right-of-way of State Highway No. 263 lying in the
NE/4SE/4
Weld County, Colorado; 100.000000%
TRACT 3-E
Section 2:
That part of the tract of the described by metes and bounds in the Warranty
Deed recorded in Book 1016, Reception No. 1950991 (see item 3 in
Appendix A hereto) lying in the NE/4SE/4
Greeley -Weld County Airport Authority 100.000000%
TRACT 4-A
Section 2: NW/4SE/4, less and except Tract 4-B and Tract 4-C
Greeley -Weld County Airport Authority 100.000000%
' Although no deed by Weld County was found of record, it is likely that the beneficisirner of this tract is the
Colorado Department of Transportation. See Comment and Requirement No. 4 below.
it is distinctly understood and agreed as evidenced by your acceptance of this opinion that PDC Energy
and Is subsidianes are in no way liable to any person firm or corporation for any loss or inconvenience
occasioned by the use or reliance upon ihts opinion"
HOLLAND&HART
Exception from Coverage
Except strip of land one rod wide off the West
side of the NE/4 [of Section 2] as conveyed by
instrument recorded in Book 74 at Page 2, Weld
County Records.
Except right of way as described in instrument
recorded in Book 109 at Page 342, Weld County
Records.
Petroleum Development
Corporation
September 20, 2010
Page 53
Comments
opinion.
The Supplemental Beatty & Wozniak Title
Opinion covered ownership of this tract, and we
therefore have included said tract (Tract 2-B) in
the coverage of this title opinion.
This referenced deed was included in the
Materials Examined and is described as
easement 4 in Part IV.C of this opinion.
The Schultz Title Opinion was based on materials including the following prior title opinions:
(a) a Drilling Title Opinion dated October 20, 1983, prepared by George H. Ottenhoff of Lind &
Ottenhoff, (b) a Supplemental Drilling Title Opinion dated July 31, 1984 prepared by William M. Foster
of Young, Allott, Foster & Reynolds, and (c) a Division Order Title Opinion dated December 22, 1984
prepared by Michael D. Armstrong of Cache Exploration, Inc. for Union Oil Company of California,
none of which were included in the Materials Examined. Because the Schultz Title Opinion did not list
surface ownership, we are not able to give an opinion with respect to ownership of the surface estate in
the E/2NE/4 of Section 2, but have listed in the Ownership section of this opinion presumed surface
ownership based on conveyances of record subsequent to November 18, 1987.
In addition, we note that the Schultz Title Opinion contained a very limited tabulation of the oil
and gas lease covering the E/2NE/4 of Section 2 (and other lands), and did not contain any tabulation of
the assignments of that lease prior to November 18, 1987. While we have examined copies of the
relevant oil and gas lease (Lease 1) and certain assignments of Lease 1 that were discussed in the Schultz
Title Opinion, and have tabulated those instruments in Appendix B hereto, we have relied on the
ownership of interests in the E/2NE/4 of Section 2 and Lease 1 stated in the Schultz Title Opinion without
making any independent investigation thereof.
Requirement: None; advisory only.
2. Legal Descriptions; Calculation of Acreage of Tracts. Numerous conveyances, decrees
and orders affecting portions of the captioned land describe the affected land by metes and bounds and do
not include plats showing the location of or acreage contained in the tracts described. At your request, we
relied in preparing this opinion on acreage calculations provided by SEH, Inc. (registered surveyors)
based upon their surveys of (a) the following tracts located within the E/2 of Section 2, T. 5 N., R. 65 W.:
Tract 1-A, Tract 1-B, Tract 2-A, Tract 2-B, Tract 3-A, Tract 3-B, Tract 3-C, Tract 3-D, Tract 3-E, Tract
4-A, Tract 4-B and Tract 4-C; and (b) the total acreage contained in the NW/4NE/4, NE/4NE/4,
SW/4NE/4, SE/4NE/4, NW/4SE/4 and NE/4SE/4 of said Section 2. We note that the total acreage listed
by SEH, Inc. for the quarter -quarter sections listed above differs somewhat from the acreage shown for
said lands on the BLM master title plat for T. 5 N., R. 65 W. In preparing this opinion, it was necessary
to use SEH, Inc.'s acreage totals for the quarter -quarter sections listed above, in order that the sum of the
applicable tracts equals the total for the quarter section in which those tracts are located. On the other
hand, with respect to those portions of the captioned land contained in Section 1, T. 5 N., R. 65 W., and in
"It is distinctly understood and agreed as evidenced by your acceptance of this opinion that PDC Energy
and its subsidiaries are in no way liable to any person, firm or corporation for any loss or inconvenience
nnnoeinne.4 ho tho .ice nr rolionno I 'newt *hie nnininn"
HOLLAND&HAR , PPM
Petroleum Development
Corporation
September 20, 2010
Page 54
Section 35, T. 6 N., R. 65 W., no tracts were surveyed by SEH, Inc. and we relied in preparing this
opinion on the acreage shown on the BLM master title plats.
It should be noted that the acreage plat provided by SEH, Inc. contains the following disclaimers:
(a) This was not a boundary survey or land survey plat. No property corners were
set. This map was prepared without the benefit of a title commitment. For all
matters of record, SEH, Inc. relied upon information provided by the client.
(b) The descriptions for some of the tracts did not close mathematically, which may
cause some of the areas to change.
(c)
SEE, Inc. used CDOT right-of-way plans in the area to establish right-of-way for
State Highway 263. The right-of-way was called out as being the existing
fences. SEH, Inc. used the location of the existing fences as of 8/31/10.
Calculated areas do not take into effect any road right-of-ways with the exception
of State Highway 263.
(d) The legal description provided to establish Tract 3-B appears to have an
erroneous call to the point of beginning. SEH, Inc. used the right-of-way for
State Highway 263 and the provided legal description recorded under Reception
No. 1950991 to establish the tract location. Further research may result in the
area changing for this and adjacent tracts.
We note an additional issue relating to the description of certain tracts located in the NE/4SE/4 of
Section 2. The legal description of Tract 3-B contained in the Final Decree dated April 20, 1948 in Civil
Action No. 11005 (recorded in Book 1225, Page 589) references "the northerly line of the County Road,
known as the Eighth Street Road" as a boundary. Also, in 1975, Wilbert Benson and Roy Benson, as Co -
Executors under the Last Will and Testament of Alvida B. Benson, Deceased (see Comment and
Requirement No. 3 below regarding the estate of Alvida B. Benson), executed two deeds affecting parts
of the captioned land. In an Executor's Deed dated January 15, 1975 (recorded February 10, 1975 in
Book 732, Reception No. 1653750), all that part of the E/2SE/4 of Section 2, T. 5 N., R. 65 W. "lying
south of State Highway #263 as presently constructed" and described by metes and bounds in said deed
was conveyed to Frank Stanley Davis and Barnard Houtchens, as Co -Personal Representatives of the
Estate of Robert S. Davis, Deceased. (The portion of the land conveyed in this deed lying in the
NE/4SE/4 of Section 2 has been designated as Tract 3-C.) In an Executor's Deed dated April 28, 1975
(recorded June 6, 1975 in Book 740, Reception No. 1662249), the N/2NE/4 and all that part of the
E/2SE/4 of Section 2, T. 5 N., R. 65 W. "lying North of the County Road," except 21.06 acres decreed to
the City of Greeley, Colorado in the Decree recorded in Book 1225, Page 589, was conveyed to C. Barry
Wingfield, Wendell R. Arnold, E. Lee Frudden, James A. Caraccioli and Lorio Verzasconi, doing
business as Land Resources Group. Lease 1, which was executed following receipt of this deed, also uses
the "County Road" as the southern boundary of the part of the E/2SE/4 of Section 2 covered by said lease.
For purposes of this opinion, we have assumed that the "County Road" referenced in the legal description
contained in the Final Decree in Civil Action No. 11005, the deed recorded in Book 740, Reception No.
1662449 and in Lease I is the road described in the Right of Way Deed recorded in Book 1073, Page 199
"It is distinctly understood and agreed as evidenced by your acceptance of this opinion that PDC Energy
and its subsidiaries are in no way liable to any person, firm or corporation for any loss or inconvenience
nnnneinnnrl ho {he non nr mll.nno unnn Ihie nnininn
HOLLAND&HART,. Mg
Petroleum Development
Corporation
September 20, 2010
Page 55
(see Comment and Requirement No. 4, below), and is the same tract as the State Highway No. 263 right-
of-way. In this regard, we note that recorded plats contained in the Materials Examined indicate that E.
8th Avenue and State Highway No. 263 are the same road. Our assumption as stated above also is
consistent with the plat prepared by SEH, Inc., on which the excepted tract is designated as Tract 3-B, and
the land in the NE/4SE/4 of Section 2 covered by the deed recorded in Book 740, Reception No. 1662449
is designated as Tract 3-A and Tract 3-E.
Requirement: None; advisory only.
3. Incomplete Probate Documents Relating to Estate of Alvida B. Benson. There is of
record a Release of Inheritance Tax Lien recorded in Book 730, Reception No. 1651567 indicating that
Alvida B. Benson died on October 8, 1973 and listing the E/2NE/4 and E/2SE/4 of Section 2 except the
county road and the land described in the Final Decree in Civil Action No. 11005. The property owned
by Alvida B. Benson at the date of her death thus included Tract 1-A, Tract I -B, Tract 3-A, Tract 3-C and
Tract 3-E, and as discussed in Comment and Requirement Nos. 4, 13 and 14, also may have included
interests in Tract 3-D, Tract 2-B and Tract 4-C, respectively. The only other documents contained in the
Materials Examined with respect to the Estate of Alvida B. Benson are the two Executor's Deeds
discussed in Comment No. 2, above. Each of the Executors' Deeds recite: (a) that Alvida B. Benson, by
her Last Will and Testament dated January 3, 1957 and probated October 16, 1973, nominated and
appointed her two sons, Wilbert Benson and Roy Benson, as Co -Executors of her Last Will and
Testament; (b) that the Court by amended Letters Testamentary appointed Wilbert Benson and Roy
Benson as Co -Executors; and (c) that the land is being conveyed pursuant to an offer and acceptance
contract that is referenced in the deed. The deeds reference a Colorado statute, which suggests that the
probate took place in Colorado, but do not list a probate number or the county in which Alvida B.
Benson's estate was probated.
Requirement: This requirement affects all of the Subject Wells except
the Noffsinger 31-2CD Well and the Noffsinger 32-2CD Well. You
should find out the jurisdiction in which Alvida B. Benson's estate was
probated, obtain copies of the Last Will and Testament of Alvida B.
Benson and amended Letters Testamentary to Wilbert Benson and Roy
Benson, confirm that the facts recited in the above -described Executors'
Deeds are accurate, and record certified copies of the Will and Letters
Testamentary in the Weld County records.
4. Ownership of Tract 3-D. Recorded survey plats contained in the Materials Examined
show that a small part of the right-of-way of State -Highway No. 263 (calculated by SEH, Inc. as .841 acre
based on the location of the existing fences along the right-of-way) is located in the NE/4SE/4 of
Section 2, T. 5 N., R. 65 W. The only deed contained in the Materials Examined that apparently covers
this tract is a Right of Way Deed dated January 13, 1941 (recorded January 16, 1941 in Book 1073, Page
199) from John Benson conveying to Weld County Colorado "the right of way for a public highway" over
and across the following land:
"It is distinctly understood and agreed as evidenced by your acceptance of this opinion that PDC Energy
and its subsidiaries are in no way liable to any person, firm or corporation for any loss or inconvenience
nrnneinnnd bu I-na ncn nr ralinnre nnnn IHi< nnininn
HOLLAND&HART
Pig
Petroleum Development
Corporation
September 20, 2010
Page 55
(see Comment and Requirement No. 4, below), and is the same tract as the State Highway No. 263 right-
of-way. In this regard, we note that recorded plats contained in the Materials Examined indicate that E.
8th Avenue and State Highway No. 263 are the same road. Our assumption as stated above also is
consistent with the plat prepared by SEH, Inc., on which -the excepted tract is designated as Tract 3-B, and
the land in the NE/4SE/4 of Section 2 covered by the deed recorded in Book 740, Reception No. 1662449
is designated as Tract 3-A and Tract 3-E.
Requirement: None; advisory only.
3. Incomplete Probate Documents Relating to Estate of Alvida B. Benson. There is of
record a Release of Inheritance Tax Lien recorded in Book 730, Reception No. 1651567 indicating that
Alvida B. Benson died on October 8, 1973 and listing the E/2NE/4 and E/2SE/4 of Section 2 except the
county road and the land described in the Final Decree in Civil Action No. 11005. The property owned
by Alvida B. Benson at the date of her death thus included Tract 1-A, Tract 1-B, Tract 3-A, Tract 3-C and
Tract 3-E, and as discussed in Comment and Requirement Nos. 4, 13 and 14, also may have included
interests in Tract 3-D, Tract 2-B and Tract 4-C, respectively. The only other documents contained in the
Materials Examined with respect to the Estate of Alvida B. Benson are the two Executor's Deeds
discussed in Comment No. 2, above. Each of the Executors' Deeds recite: (a) that Alvida B. Benson, by
her Last Will and Testament dated January 3, 1957 and probated October 16, 1973, nominated and
appointed her two sons, Wilbert Benson and Roy Benson, as Co -Executors of her Last Will and
Testament; (b) that the Court by amended Letters Testamentary appointed Wilbert Benson and Roy
Benson as Co -Executors; and (c) that the land is being conveyed pursuant to an offer and acceptance
contract that is referenced in the deed. The deeds reference a Colorado statute, which suggests that the
probate took place in Colorado, but do not list a probate number or the county in which Alvida B.
Benson's estate was probated.
Requirement: This requirement affects all of the Subject Wells except
the Noffsinger 31-2CD Well and the Noffsinger 32-2CD Well. You
should find out the jurisdiction in which Alvida B. Benson's estate was
probated, obtain copies of the Last Will and Testament of Alvida B.
Benson and amended Letters Testamentary to Wilbert Benson and Roy
Benson, confirm that the facts recited in the above -described Executors'
Deeds are accurate, and record certified copies of the Will and Letters
Testamentary in the Weld County records.
4. Ownership of Tract 3-D. Recorded survey plats contained in the Materials Examined
show that a small part of the right-of-way of State -Highway No. 263 (calculated by SEH, Inc. as .841 acre
based on the location of the existing fences along the right-of-way) is located in the NE/4SE/4 of
Section 2, T. 5 N., R. 65 W. The only deed contained in the Materials Examined that apparently covers
this tract is a Right of Way Deed dated January 13, 1941 (recorded January 16, 1941 in Book 1073, Page
199) from John Benson conveying to Weld County Colorado "the right of way for a public highway" over
and across the following land:
"It is distinctly understood and agreed as evidenced by your acceptance of this opinion that PDC Energy
and its subsidiaries are in no way liable to any person, firm or corporation for any loss or inconvenience
nnrocin.,erf h.r fke nen me reli,nno anon +kk' nnininn.'
H®LLAN D &HART,,.
Petroleum Development
Corporation
September 20, 2010
Page 56
Part of the E/2 of the SE/4 of Section 2, Township 5 North, Range 65
West of the 6th P.M., Weld County, Colorado, being a strip of land 80 feet in
width, 40 feet on each side of the following described center line,
Beginning at a point on the East line of said E/2 of the SE/4 1214 feet
South from the Northeast Corner thereof, running thence S.59° -54'W 1500 feet
more or less to a point on the West line of said E/2 of the SE/4 of said Section 2.
net required acreage, 0.69 acre, more or less.
We note that CRS § 43-2-204 provides that Boards of county commissioners, acting for their
respective counties, are authorized to acquire by means including purchase any private or public property
necessary for the improvement or construction of state highways. Given that State Highway No. 263
crosses a portion of the NE/4SE/4 of Section 2, we expected to find a deed of record conveying Tract 3-D
to the State of Colorado or to a State agency such as the Colorado Department of Transportation.
However, no such recorded deed covering any part of the E/2SE/4 of Section 2 was found. In this regard,
LoneTree Energy & Associates, LLC conducted a search of Heritage Title Company's records for all
deeds to the State of Colorado, the Department of Highways and/or Colorado Department of
Transportation covering any land in Section 2, T. 5 N., R. 65 W. during the period from patent to June 1,
1993, and provided copies of all such deeds identified to the author of this opinion. The only deeds
covering land in Section 2 relating to State Highway No. 263 found were (a) a Quitclaim Deed dated
February 16, 1956 (recorded April 13, 1956 in Book 1448, Page 29) from the City of Greeley, a
Municipal Corporation, to The Department of Highways conveying a right-of-way for road and highway
purposes, consisting of a tract or parcel of land No. 6 of Colorado Department of Highways Project No.
S 00320) containing 0.378 acres, more or less in the SW/4SW/4 of Section 2 which is described by
metes and bounds in said deed, and (b) a Quitclaim Deed dated February 16, 1956 (recorded April 13,
1956 in Book 1448, Page 30) from the City of Greeley, a Municipal Corporation, to The Department of
Highways conveying a right-of-way for road and highway purposes, consisting of a tract or parcel of land
No. 7 of Colorado Department of Highways Project No. S 0032(1) containing 2.761 acres, more or less in
the SW/4SE/4 of Section 2 which is described by metes and bounds in said deed. Further, no
condemnation decree or other instrument transferring ownership of Tract 3-D from Weld County to the
State of Colorado or any State agency was found of record. However, the Materials Examined do include
a Right -of -Way Fence Agreement dated August 9, 2004 (recorded May 2, 2007 at Reception No.
3472969) between the Greeley -Weld County Airport Authority and the State of Colorado for the use and
benefit of the Colorado Department of Transportation (the "State") relating to replacement of a fence
along the northern boundary of State Highway No. 263 in the SE/4 of Section 2 which recites that the
State owns the highway right-of-way property.
As indicated above, the language of the deed recorded in Book 1073, Page 199 grants a right-of-
way in a "strip of land," which language is more consistent with a grant of fee title than an easement. See
Farmers Reservoir & Irrigation Company v. Sun Production Company, 721 P.2d 1198 (Colo. App.
1986), cert. denied. For purposes of this opinion, we have interpreted the above -described deed as a
conveyance of fee title (including minerals) in Tract 3-D. However, in the absence of ajudicial
interpretation of the precise language of the above -described deed, some uncertainty does exist as to
whether the deed recorded in Book 1073, Page 199 operated as a conveyance of fee title together with
mineral rights or merely as an easement over and across the NE/4SE/4 of Section 2. Thus, it is possible
"It is distinctly understood and agreed as evidenced by your acceptance of this opinion that PDC Energy
and its subsidiaries are in no way liable to any person, firm or corporation for any loss or inconvenience
nrnomnnnd by tha nen nr ralinnna unnn !hie nnininn
HOLLAND &HARTL PPM
Petroleum Development
Corporation
September 20, 2010
Page 57
that the successors in interest of Alvida B. Benson (wife of John Benson, who outlived him) has an
interest in the minerals in Tract 3-D, since the conveyances of record by the executors of her estate
(described in Comment No. 2 above) did not include Tract 3-D. Further, since no recorded deed to or
decree in favor of the State of Colorado or any State agency was found, we have shown title to Tract 3-D
in Weld County, Colorado (the grantee in the deed recorded in Book 1073, Page 199), recognizing that
the beneficial owner of Tract 3-D may be the State. There is no oil and gas lease of record from Weld
County or from the State covering Tract 3-D.
The Materials Examined include a Quitclaim Deed dated April 21, 1987 (recorded May 15, 1987
in Book 1156, Reception No. 2099888) from the Greeley -Weld County Airport Authority, formerly
known as Weld County Municipal Airport Authority, the City of Greeley, and the County of Weld to the
Greeley -Weld County Airport Authority conveying a tract of land in Sections 1, 2 and 3, T. 5 N., R. 65
W. described by metes and bounds and containing 702.233 acres, more or less, except the existing right-
of-way for Colorado State Highway No. 263. We note that the oil and gas lease granted by the Greeley -
Weld County Airport Authority (Lease 13) purports to cover the land in the above -described Right of
Way Deed recorded in Book 1073, Page 199. Since, as discussed in Comment No. 2 above, we have
concluded that said deed covers the same land as the State Highway No. 263 right-of-way, we have not
credited the Greeley -Weld County Airport Authority with any mineral interest in Tract 3-D.
Requirement: This requirement affects the Noffsinger 2SD Well only.
Further inquiry should be made of Weld County, Colorado, the Colorado
Department of Transportation and the owner of the working interest in
Lease 13 (Noble Energy WyCo, LLC) with respect to ownership of the
State Highway No. 263 right-of-way crossing the NE/4SE/4 of Section 2
and ownership of the mineral interest therein, and copies of any
unrecorded deeds or other instruments relating thereto and leases that are
obtained should be submitted for our examination and revision of the
ownership schedule and division of interest contained in this opinion
accordingly. In the event that no additional conveyance document
relating to Tract 3-D or document showing that land conveyed to the
Greeley -Weld County Airport Authority included Tract 3-D is found,
you should obtain and record in the Weld County records an oil and gas
lease covering Tract 3-D from the Board of County Commissioners of
Weld County, Colorado. You also should obtain from the Colorado
Department of Transportation either an oil and gas lease (if said agency
claims an interest in the mineral estate in Tract 3-D) or a disclaimer of
interest (if said agency does not claim an interest in the mineral estate in
Tract 3-D). Finally, for security of leasehold title, you also should obtain
(a) a disclaimer of interest or oil and gas lease from the successors in
interest of Alvida B. Benson, and (b) a disclaimer of interest from the
Greeley -Weld County Airport Authority, and record the same in Weld
County, Colorado.
5. Ownership of 50% Mineral Interest in Tract 3-C. The County of Weld, State of Colorado
acquired that portion of the NE/4SE/4 lying south of State Highway No. 263 in a Personal
"It is distinctly understood and agreed as evidenced by your acceptance of this opinion that PDC Energy
and its subsidiaries are in no way liable to any person, firm or corporation for any loss or inconvenience
nrnaann.,4 h•. Ilia ilea nr roI nro unnn *hie nn{ninn^
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