HomeMy WebLinkAbout20133278RESOLUTION
RE: AMENDMENT OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY OWNED
BY WELD COUNTY, COLORADO, AND AUTHORIZE CHAIR TO SIGN - BONANZA
CREEK ENERGY OPERATING COMPANY, LLC
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, Weld County, Colorado, is the owner of vast acres of mineral lands located
in Weld County, Colorado, and
WHEREAS, the Board has been presented with an Amendment of an Oil and Gas
Lease, said lease being recorded at Reception No. 3914206, dated February 25, 2013, between
the County of Weld, State of Colorado, by and through the Board of County Commissioners of
Weld County, and Bonanza Creek Energy Operating Company, LLC, commencing upon full
execution, with further terms and conditions being as stated in said amendment concerning net
mineral acres, more or less, described to -wit:
Lot 3, SE1/4 NW1/4 E1/2 SW1/4 of Section 4,
Township 5 North, Range 61W of the 6th P.M.,
Weld County, Colorado
WHEREAS, after review, the Board deems it advisable to approve said amendment, a
copy of which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County, Colorado, that the Amendment of Oil and Gas Lease between the County of
Weld, State of Colorado, by and through the Board of County Commissioners of Weld County,
and Bonanza Creek Energy Operating Company, LLC, be, and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized
to sign said lease.
2013-3278
LE0212
OIL AND GAS LEASE AMENDMENT - BONANZA CREEK ENERGY OPERATING CO, LLC
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 25th day of November, A.D., 2013.
BOARD OF COUNTY COMMISSIONERS
WELD Cf UN . COLORADO
ATTEST:
Weld County Clerk to the Board
BY:
Deputy Cler
APP: o ED AS
ounty Attorney
DEC 0 6 2013
Date of signature:
illiam F. Garcia_ Chair
Vim
Douglas /RademaCher, Pro- em
can P. Conway
Freeman
ara Kirkmeyer
2013-3278
LE0212
riECEIVED
AMENDED WELD COUNTY LARGE -TRACT OIL AND GAS LEASQ EL D CO°
Containing 159.51 acres, more or less:
Containing 159.51 net mineral acres, more or less:
THIS LEASE AGREEMENT, dated this 25th day of February 2013 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, do BOARD OF COUNTY COMMISSIONERS, 1150 O STREET,
P.O. BOX 758, GREELEY, CO 80632, hereinafter called Lessor, and:
Bonanza Creek Energy Operating Company, LLC
410 17th Street, Suite 1400
Denver, CO 80212
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 filing fee in the amount of $10.00, plus a bonus consideration of
$ 1,500.00 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 $ 159.51 computed at the rate of
$1.00 per mineral acre or fraction thereof per year, and the following consideration:
ERS
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:
DESCRIPTION OF LAND
SECTION TOWNSHIP RANGE
Lot 3, SE1/4 NW1/4 4
E1/2 SW1/4
5N 61W
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 25th day of February 2016 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 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 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 sixty days upon
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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 One Dollar ($1.00) 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 - Lessee shall account for any and all substances produced on the leased land and
Lessee shall pay to Lessor as royalty, in addition to the rentals provided, but except for products
used on the leased land, unavoidably lost or flared on the leased land, with approval of Lessor,
the following:
A. On oil, 20% of the oil produced and saved from the leased land
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 sixty (60) days' notice to
Lessee, Lessor may cease taking oil royalty in kind. When paid in cash, the royalty shall be
calculated upon the fair market value of the oil at the well which shall not be deemed to be
less than the price actually paid to Lessee at the well by the purchaser thereof; 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.
B. On gas, including casing head gas or other gaseous substance 20% of the fair market
value at the well or of the price received by Lessee at the well, whichever is greater, of all gas
produced and sold from the leased land or utilized off the land by Lessee. A copy of all
contracts for sale of gas shall be furnished to Lessor. Where gas is sold under contract that
has been approved by Lessor, the fair market value of such gas for determining the royalties
payable hereunder shall be the price at which such gas is sold under such contract. No
approval by Lessor of the terms of any such agreement shall operate to make Lessor a party
thereto or obligate it thereunder in any way. At the option of Lessor, and with sixty (60) days'
notice to Lessee, Lessor may take its royalty in kind. With sixty (60) days' notice to Lessee,
Lessor may cease taking gas royalty in kind.
C. All costs of marketing the oil and/or gas produced shall be borne by Lessee and such costs
shall not directly or indirectly reduce the royalty payments to Lessor. Except that marketing
costs for Lessor's in -kind royalty shall be borne by Lessor.
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D. 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.
3. RECORDS - Lessee agrees to keep and to have in 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 not less than five years.
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
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
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have made full provision for conservation of the leased products and protection of the surface
rights of the leased land.
9. ASSIGNMENTS -
A. Lessee, upon payment of a $25.00 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. 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.
C. 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. 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.
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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
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 $2.00 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 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 - No exploration, drilling or production operation, including permanent
installations, shall be within 200 feet of any existing building or other improvement, including
water well or reservoir, without the written permission of the owner of said improvements. Lessee
shall keep a correct log of each well drilled hereunder, showing by name or description the
formations passed through, the depth at which each formation was reached, the number of feet of
each size casing set in each well, where set, and the total depth of each well drilled. Lessee,
within thirty (30) days after the completion or abandonment of any well drilled hereunder, shall file
in the office of Lessor a complete and correct log of such well, together with a copy of the electric
log and the radioactivity log of the well when such logs, or either of them, are run; and also a copy
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of all drill stem test results, core records and analyses, record of perforations and initial
production tests, if any. If any of the information required by this paragraph is contained in
reports required to be filed with the Oil and Gas Conservation Commission of Colorado, the
requirements of this paragraph for such information may be satisfied by such filing with said
Commission, except for copies of the reports as are required by the following paragraph, and
provided that all such information is immediately available to Lessor. Any proprietary information
so submitted shall not be subject to public inspection under Colorado law.
Lessee shall bury pipelines below plow depth. Lessee shall set and cement sufficient surface
casing to protect the fresh water wells of the area.
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.
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, before 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
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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. No lease term will be extended for more than six (6) months from the original expiration date.
B. That the Lessee shall pay to the Lessor the sum of one-third of the original bonus, with a
minimum bonus of Ten Dollars ($10.00) per acre.
C. The Lessee must pay to the Lessor the sum of One Dollar ($1.00) per acre leased as delayed
rental for the term of the extension.
D. That 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 of such specific award(s) shall be paid to Lessor in lieu of royalty
lost by 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 -
A. "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.
B. "Oil and gas" as used herein shall include all substances produced as by-products therewith,
including But not limited to sulfur.
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C. "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.
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).
C:Users\kford\Desktop\Pending O&G\Pending Amended O& G Lease - LE0212 - Lease - 04-05-61-Lot3
3980525 Pages: 8 of 9 SE4NW4 E2SW4.docx
11/26/2013 11:08 PM R Fee:$0.00 (Revised 1/2011)
Steve Moreno, Clerk and Recorder Weld County, �Uu`CO IW�,`
viii M1�1��r stn i.r�� li hElittiJAr�iai4, Ii III
Large -Tract Oil and Gas Lease
Page 9
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:
ow -4-o 4. --
Weld County Clerrro the Board
By
Deputy Cle .r he Board
STATE OF (_UIUa )
ss
COUNTY OF /A]LAM )
The foregoing instrument was acknowledged before me this c: 5-t-1. day of t\fpbernG,o.-
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
By:
Chair, hoard of .un
William F. Garc
By:
%Y1'NVl' Pre_'
NOV 2 5 2013
Commissioners
Chtlgoptltm' "--"r
Counsel,
20)3 by Ltilf�lr] . Gl1rC(n
Witness my hand and official seal.
CF. 144_ �KlJh IIX.
Notary Public
My Commission Expires: 9-o29-rPi 7
3980525 Pages: 9 of 9
11/26/2013 11:08 AM R Fee:$0.00
VIIIe k1�1F1tWlit+V�ld lti'!r Recorder,
Weld County,
ivA 11 III
ESTHER E. GESICK
NOTARY PUBLIC
STATE OF COLORADO
NOTARY ID 19974016478
MY COMMISSION EXPIRES SEPT. 29, 2017
i
C:\Userslkford\Desktop\Pending O&G\Pending Amended O& G Lease - LE0212 - Lease - 04-05-61-Lot3
SE4NW4 E2SW4.docx
(Revised 1/2011)
X013 3 Vg
Division Order Title Opinion
T5N, R61 W, Section 4: All
Pronghorn T-P-4HNB Well
Weld County, Colorado
TRACT 1
Page 4
May 31, 2013
Description
Tract Factor
BOGL(s)
Township 5 North, Range 61 West, 6'" P.M.
160.00 / 638.20
1-8;
Partially
unleased
Section 4: SE/4
TRACT 2
Description
Tract Factor
BOGL(s)
Township 5 North, Range 61 West, 6'" P.M.
80.00 / 638.20
9
Section 4: W/2SW/4
TRACT 3
Description
Tract Factor
BOGL(s)
Township 5 North, Range 61 West, 6'" P.M.
159.51 / 638.20
10
Section 4: Lot 3 (39.51), SE/4NW/4, E/2SW/4
TRACT 4
Description
Tract Factor
BOGL(s)
Township 5 North, Range 61 West. 6'" P.M.
238.69 / 638.20
11, 12
Section 4: S/2NE/4, SW/4NW/4, Lot I (39.66),
Lot 2 (39.59), Lot 4 (39.44)
HI. OWNERSHIP
Based upon our examination of the foregoing materials and subject to the exceptions,
assumptions, comments and requirements set forth in this opinion, we are of the opinion that title
to the Lands as of March 19, 2013 is owned, encumbered and burdened as follows:
TRACT 1
A. Surface (SE/4 of Section 4) [ 160.00 acres, more or less]:
Owner
Interest
Dennis W. Grotheer Living Trust, dated
February 26, 1996
100%
100537225.11
Division Order Title Opinion
T5N, R61 W, Section 4: All
Pronghorn T-P-4HNB Well
Weld County, Colorado
Page 7
May 31, 2013
RAAM Production, LLC
0.8125%
100%
100%
9
Ronald E. Yetter and Tonie E.
Yetter, J/T
1.6250%
100%
100%
9
D. Leasehold Working Interests:
Owner
Working
Interest
Mineral
Lease
BOGL
Interest
Burden
Bonanza Creek Energy
Operating Company, LLC
100%
100%
19%
9
TRACT 3
A. Surface (Section 4: Lot 3 (39.51), SE/4NW/4, E/2SW/4) [ 159.51 acres, more or less]:
Owner
Interest
Dennis W. Grotheer Living Trust, dated
February 26, 1996
100%
B. Mineral Interests and Royalty (oil, gas and associated hydrocarbons only):
Owner
Interest
Royalty
BOGL
Weld County, Colorado
100%
20%
10
C. Overriding Royalty Interests:
None of record.
D. Leasehold Working Interests:
Owner
Working
Mineral
Lease
BOGL
Interest
Interest
Burden
Bonanza Creek Energy
Operating, LLC
100%
100%
20%
10
X00537225.11
SP
November 11, 2013
Weld County Board of County Commissioners
Attn: Karla Ford
P.O. Box 758
Greeley, CO 80632
BonAnzf
CREEH
RE: Lease Bonus Payment
Section 4, Township 5 North, Range 61 West, 6TH PM
Weld County, Colorado
Dear Ms. Ford:
410 17th Street, Suite 1500
Denver, CO 80202
(720) 440-6100 phone
(720) 305-0804 fax
i3u11iil,IcIk _U])
RECEIVED
WELD COUNTY
COMMISSIONERS
Enclosed you will find check #51589 in the amount of $60,000.00. This check constitutes payment in full
for your lease bonus for the above referenced mineral interest in Weld County, CO.
Due to an error in acreage on the original Weld County Large -Tract Oil and Gas Lease, the lease bonus
was underpaid by $60,000.00. With the addition of 40.00 net acres to the lease via Amended Weld County
Large -Tract Oil and Gas Lease, Bonanza Creek owes that $60,000.00 to the Weld County Board of County
Commissioners. The signed original copy of the Amended lease is enclosed for Board approval and
signature.
Please sign in the space provided below as evidence of your receipt of said check and payment in
full, retain one copy of this letter for your records, and return one for our records to the
undersigned.
Sincerely,
Bonanza Creek Energy Operating Company, LLC
Matt W. Jones
720-225-6615
mjones(q bonanzacrk.com
Enclosure
I hereby acknowledge receipt of Bonanza's check number 48820 in the amount of
$ar4000.0o. 4Q53, 000. 0 O
By:
Signature Date
Title
Sent Via Certified Mail #7012 3050 0000 7173 0714 C01461-000
ulzi [d Co fy �p Maid 11/15113
BONANZA CREEK ENERGY, Eric.
410 17TH STREET, SUITE 1400 • DENVER, CO 80202 • (720) 440-6100
CHECK NO.
51589
1311 -AP -74 10/30/13 CKREQ103013
40 ACRES IN 5N -61W -SECTION 4
0
-o
op N
O M
U o 0
m co
c m N 0
-c r-
0
2 8
aYm C)
1) N O N
UaC7
60000.00
RECEIPT DATE // 15"/ 3
RECEIVED FROM
AIDRESS
�.
FOR
n
0.00 60000.00
RECEIVED
WELD COUNTY
COMMISSIONERS
NO 87238
t5CYLCutir C �' K fiu. 41>hC
T)
HOW PAID
CASH
CHECK
�� at
on
MONEY
ORDER
1041 1 WELD COUNTY BOARD OF
1,/ tFJ/J n
BY
11/01/13 60,000.00
MSelegiart LTHO USA 0913 Y10SF00W66M
REORDER FROM YOUR LOCAL SAFEGUARD DISTRIBUTOR AT 661.8122993
a,
Thank you!
Karla Ford X
Deputy Clerk to the Board
1150 O Street/P.O. Box 758
Greeley, CO 80632
tel: (970)336-7215 X4228
•
Karla Ford
nr, Jones @ 2anie---cam,
120 -,i,25 -&&i5
From: Karla Ford
Sent: Friday, September 06, 2013 11:57 AM
To: 'Nicole Healy'
Cc: Rindi Hauck; Esther Gesick
Subject: RE: Bonanza Creek Lease
Attachments: Pending Amended O& G Lease - LE0212 - Lease - 04-05-61-Lot3 SE4NW4 E2SW4.pdf
After reviewing all the documentation, we will need your office to complete the attached "amended" lease, sign and
return. The only change we made was the actual number of mineral acres. You will also need to submit an additional
check in the amount of $60,000.00 to bring the lease up to the correct amount. The original lease was for $1500 per
acre (@119.51 acres = $179,265.00). The $60,000 is for the additional 40 acres @ $1500.
Once we have received both items, the lease will be put on the Board of County Commissioners' Agenda for approval
and processing. A final copy will be mailed to your office.
If you have any further questions, please let me know. J1�( se� mn�
1 U t t p
4 Pak Ams on Rot -6( bocci
Put in Tyler - see also ioi3-0537
Confidentiality Notice: This electronic transmission and any attached documents or other writings ore 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: Nicole Healy [mailto:NHealv@bonanzacrk.com]
Sent: Tuesday, September 03, 2013 5:00 PM
To: Karla Ford
Cc: Rindi Hauck
Subject: RE: Bonanza Creek Lease
Hi Karla (Sorry about the Kathy earlier. Afternoon brain mush, I suppose),
Here are the pages of the title opinion that pertain to this lease. Please let me know if you need anything further.
Thanks,
Nicole
1
Luz-
'This information/document has been furnished by Bonanza Creek Energy Inc. as an accommodation only. Neither
Bonanza Creek Energy Inc nor Bonanza Creek Energy Operating Company LLC warrant the accuracy and/or completeness
of the information/document. Any person or entity relying on the information contained in this document for any use
does so at his/her/its own risk and without recourse on Bonanza Creek Energy Inc, Bonanza Creek Energy Operating
Company LLC or their affiliates or attorneys."
From: Karla Ford [mailto:kford@co.weld.co.us]
Sent: Tuesday, September 03, 2013 4:35 PM
To: Nicole Healy
Subject: RE: Bonanza Creek Lease
Thanks so much! Again, I am guessing you will want the 159.51 acres — so we just need the title opinion for this amount
and we can do an amendment to the lease. This does not take much time to complete. But we definitely want to have
the documentation correct for both parties!
Have a great evening.
Karla Ford $(
Deputy Clerk to the Board
1150 O Street/P.O. Box 758
Greeley, CO 80632
tel: (970)336-7215 X4228
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: Nicole Healy [mailto:NHealy@bonanzacrk.com]
Sent: Tuesday, September 03, 2013 4:28 PM
To: Karla Ford
Cc: Rindi Hauck
Subject: Bonanza Creek Lease
Hi Kathy,
Per our phone conversation, please find the attached lease, amendment of lease, and affidavit of extension. I will follow
up with our landman and get back to you as soon as possible.
Thanks,
Nicole Healy
Lease Analyst
Bonanza Creek Energy, Inc.
410 17th Street, Suite 1400
Denver, CO 80202
(720) 225-6621 (Direct)
(720) 305-0804 (Fax)
2
Hello