HomeMy WebLinkAbout790007.tiff RESOLUTION
RE: AUTHORIZATION OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY
PURPORTEDLY OWNED BY WELD COUNTY, COLORADO LOCATED IN PART OF
SECTION 12, TOWNSHIP 1 NORTH, RANGE 66 WEST OF THE 6TH P .M. ,
WELD COUNTY, COLORADO
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, Energy Minerals Corporation, Denver, Colorado, has
offered to lease the following described mineral lands, to-wit:
Southwest Quarter of Section 12 , Township 1
North, Range 66 West of the 6th P.M. EXCEPT
that part lying East of Speer Canal.
WHEREAS, said described mineral lands contain 151 acres,
'which contain 151 mineral acres, more or less , for the total sum
en -s„ of TWENTY SIX THOUSAND TWO HUNDRED TWO AND 61/100 DOLLARS
C T-iA d ($26, 202 . 61) together with ONE DOLLAR ($1. 00) per acre per
year
2 1 after the first year, which lease is to run for a period of
gcc
3 Y
Q five (5) years , commencing December 19 , 1979 and ending Decem-
ber 18, 1984 , and
° u WHEREAS, Weld County is desirous of accepting said offer to
m
3 lease the abovedescribed mineral acreage.
8
C'S Z'-a NOW, THEREFORE, BE IT RESOLVED by the Board of County Com-
ri o
CO v
ri omissioners of Weld County, Colorado that the offer of Energy
a A Minerals Corporation, as hereinabove recited, be, and hereby is,
CO v Z
8 accepted for a period of five (5) years.
CC
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 19th day of
December, A.D. , 1979 .
BOARD OF COUNTY COMMISSIONERS
ATTEST: -t , "" WELD COUNTY, COLORADO
Weld County Clerk and Recorder ( (Aye)
and Clerk to the Board F Norman Carlson, Chairman
BY• �
� .-i.'lw i,( 1t - (_' /'' '-.)\ r G t� �Gr.�er
� /1 / (Aye)
%Deputy County Clerk Lid ' Dunbar
APPO AS TO FORM: �` 0ij A/,� . . y (Aye)
��� Lint-_ O C. W. Kirby
County Attorney �.<�.- .,.r �� (Aye)
Leonard L. Roe
ARSFNT 1lATF PRF.RI.NTF.1� (Aye)
June K. Steinmark
DAM PRESENTED: JAN. 9, 1980 790007
•
92 1813968
WELD COUNTY. COLORADO OIL AND CAS LEASE • •
•
THIS AGREEMENT made this lgthday of December , 1979. between Weld County, Colorado, a political subdivision of
the State of Colorado, by the Board of County Cormissioners, for its respective interests, C/o Board of County Commis-
sioners, Weld County Centennial Center, 915 10th Street, Greeley, Colorado' 80631, Lessor (whether one or more), and
ENERGY MINERALS CORPORATION Lessee, WITNESSETH: -and 61/100 Dollars
•
I. lessor in consideration ofTwenty Six Thousand Six Hundred Two------- *Marx ($26,602.61 )•
in hand paid, of the royalties herein provided, and of the agreement of Lessee herein contained, hereby grants, leases
and lets exclusively unto Lessee for the purpose of investigating, exploring. prospecting, drilling and mining for and
producing oil , gas and other hydrocarbons, laying pipe lines, building tanks, power stations, telephone lines and other
structures thereon to produce, save, take care of, treat, transport aid own said products, and housing its employees,
(subject to all applicable Weld County Zoning kegulations), the following tract of land with any reversionary rights
therein being situated in the Coue'y of Weld, State of.Colorado, and described as follows:
Township 1 North, Range 66 West, 6th- P.M.
Section 12 SWa EXCEPT that part lying East of
of Speer Canal •
•
and containing }-51 acres, more or less ( 151 net mineral acres).
2. Subject to the other provisions herein contained, this lease shall be for a term of 5 years from this date
(called "primary term") and as long thereafter as oil, gas or other hydrocarbons, is produced from said land hereunder,
or drilling nr reworking operations are conducted thereon.
3. The royalties to be paid by Lessee are: (a) on oil , ore-eighth of that produced and saved from said land, the
same to he delivered at the wells: or to the credit of Lessor Into the pipe line to which the wells may he connected;
Lessee may from time to time purchase any royalty oil in its possession, paying the market price therefor prevailing
for the field .,here produced on the date of purchase; (b) on gas, including casinahead gas or other hydrocarbon sub-
stance, produced from said land and sold or used off the premises or in the manufacture of gasoline or other products
therefrom, the market value at the well of one-eighth of the gas so sold or used, provided that on gas sold at the
welts the royalty shall he one-eighth of the amount realize° from such sale; on sulfur the royalty shall be fifty
cents (50c) per long ton. Lessee shall have free use of oil , gas, coal , wood and water from said land, except water
from Lessor's wells, for all operations hereunder, and the royalty on oil and gas snail be computed after deducting
any so used. If a well capable of producing gas in paying quantities is completed on the above described land and is
shut in, this lease shall continue in effect for a period of one year from the date such well is shut in. Lessee or
any assignee may thereafter, in the manner provided herein for the payment or tender of delay rentals, pay or tender
to Lessor as royalty, on or before one year from the date such well is shut in, the sum of $100.00 per well , and, if
such payment or tender is made, this lease shall continue in effect for a further period of one year. In like manner
and upon like payments or tenders annually, made on or before each anniversary of the shut-in date of such well, this
lease shall continue in effect for successive periods of twelve (12) months each.
4. If operations for drilling are not correnced on said 'and as hereinafter provided, on or before one year from
this date, the lease shall then terminate as to both parties, unless on or before such anniversary date Lessee shall
nay or tender to Lessor, and shall continue as the depository nor all rentals payable hereunder regardless of changes
in ownership of said land or the rentals either by ronvevance er by the death or incapacity of Lessor, the sum of
$151. 00 Dollar(s) ($1, 00 ) per net mineral acre, (hereintalled rental), which shall
cover the privilege of deferring commencement of operations for drilling for a period bf twelve (12) months. In like
manner and upon like payments or tenders annually the copi.iercement of operations for drilling may be further deferred
for successive periods of twelve (12) months each during the primary term. The payment- or tender of rental herein
referred to may be made in currency, or check at the option of the Lessee; and the depositing of such currency, or
check in any post office, properly addressed to the Lessor. on or before the rental paying date, shall be deemed pay-
ment as herein provided. The down cash payrent is consideration for the lease according to its terms and shall not
he allocated as mere rental for a period. Lessee ray at-any tire execute and deliver to Lessor or place of record
a release or releases covering any portion or portions of the above described premises and thereby surrender this
lease as to such portion or portions and be relieved of all obligations as to the acreage surrendered, and thereafter
the rentals payable hereunder shall be reduced in the proportion that the acreage covered hereby is reduced by said
release or releases. .
5. Should any well drilled on the above described land during the primary term before production is obtained be
a dry hole, or should production be obtained during the primary term and thereafter cease, then and in either event.
if operations for drilling an additional well are not correnced or operations for reworking an old well are not pur-
sued on said land on or before the first rental paying date next succeeding the cessation of production or drilling
or reworking on said well or wells,-then this lease shall terminate unless Lessee, on or before said date, shall re-
sume the payment of rentals. Upon resumption of the payment of rental, Section 4 governing the payment of rentals,
shall continue in force just as though there had been no interruption in the rental payments. If during the last year
of the primary term and prior to the discovery of oil, gas, or other hydrocarbons on Said land Lessee should drill a
dry hole thereon, or if after discovery of oil , gas or other nydrocarbons before or during the last year of the
primary term the production thereof should cease during the last year of said term from any cause, no rental payrent
or 'operations are necessary in order to keep the lease in force during the remainder of the primary term. lf, at the
expiration of the primary term, Lessee is conducting operatiors for drilling a new well or reworking an old well, this
lease nevertheless shall continue in force as long as such drilling or reworking operations continue, or if, after the
expiration of the primary term, production on this lease shall cease, this lease nevertheless shall continue in force
if drilling or reworking operations are correnced within sixty (50) days after such cessation of production; if pro-
duction is restored or additional production is discovered as a result of any such drilling or reworking operations,
conducted without cessation of more than sixty (60) days, this lease shall continue as long thereafter as oil , gas.
other hydrocarbons or other mineral is producad and as long as additional drilling or reworking operations are had
without cessation of such drilling or reworking operaticns for more than sixty (60) consecutive days.
6. Lessee,at its option, is hereby given the right and power to pool or combine the land covered by this lease,
or any portion thereof, as to oil and gas, or either.of them, with any other land lease or leases when in Lessee's
judgrwunt it is necessary or advisable to do so in order to properly develop and operate said premises, such pooling to
be into a well unit or units not exceeding forty (40) acres, plus an acreage tolerance of ten per cent (10%) of forty
(40) acres, for oil , and not exceeding six hundred and lerty (640) acres, plus an acreage tolerance of ten per cent
(101) of six hundred and forty (640) acres, for gas, except that larger units may be created to conform to any spacing
or well unit pattern that may be prescribed by governmental authorities having jurisdiction. Lessee may pool or com-
bine acreage covered by this lease, or any portion thereof, as above provided, as to oil or gas in any one or more
strata, and units so formed need not conform in sire or area with the unit or units into which the lease is pooled or
combined as to any other stratum or strata, and oil units need net conform as to area with gas units. The pooling in
x'1892 1813968
4.3
one or more instances shall not exhaust the rights of the Id's., e hc'-epjJur to pool this lease or' portions thereof into
other units, Lessee shall execute in 'writing and place of c;�', r ae irsleume^,t or instruments identifying and describ-
ing the pooled acreage. The entire acreage co pooled into. e e 's ;hill he boated for all purposes, except the payment
of royalties, as if it were included in this base, and ,Ir ill ant or rew,:sing operations thereon or production of oil
or gas therefrom, or the completion thereon of a well as a si,r' -in gas '•well , shall he considered for all purposes,
except the .payment of royalties, as if such operations were sro or surer production were from or such completion were
on the land covered by this lease, whither or not .the we r1 or .:ells he located co the premises covered by this lease.
In lieu of the royalties elsewhere herein specified, Lessor shill receive from a unit sir formed, only .such portion of
the royalty stipulated herein as the amount of his acreage pinrod in the unit or his royalty interest therein bears
to the total acreage so pooled in the particular unit involved. Should any unit as originally created hereunder con-
tain less than the maximum number of acre; hereinabove spit ified, then lessee may at any time thereafter, whether
before or after production is obtained on the unit, enlarge such unit by adding additional acreage thereto, but the
enlarged unit shall in no event exceed the acreage cerit:eut•herrinahoves specified. In the event an existing unit is
so enlarged, Lessee shall execute and place of record a suurple^entel der larotion of (unitization identifying and
describing the land added to the existing unit; previ_(lml. 'Cr' if such supplemental declaration of unitization is not
filed until after production is obtained on the unit es on ininally created, then and in such event the supplemental
declaration of unitization shall not become effective oath r'ip's first day of the calendar month next following the
filing thereof. In the absence of production lessee may to ,into any unitized area by filing of record ne ce of
termination.
7. Lessee also shall have the right to unitize, pool , oa combine all or any part of the above described lards
with other lands in the same general area by entering into a imperative or unit plan of development or operation
approved by any governmental authority and, from time to time, with like approval , to modify, change or terminate
any such plan or agreement and, in such event, the terms, conditions, and provisions of this lease shall he deemed
modified to conform to the terms, conditions, and provisions of such approved cooperative or unit plan of development
or operation and, particularly, all drilling and development requirements of this lease, express or implied, shall
he satisfied by compliance with the drilling and developrrenl requirements of such plan or agreement, and this lease
shall not terminate or expire during the life of such plan or .ryrrrment. In the event that said above described
lands or any part thereof, shall hereafter he operated under duty such cooperative or unit plan of development or
operation whereby the production therefrom is allocated to different portions of the land covered by said plan, then
the production allocated to any particular tract of land snail , for the purpose of computing the royalties to be
paid hereunder to lessor, be regarded as having Peen produced iron the particular tract of land to which it is al-
located and not to any other tract of land and the royai'S flu ones to be made hereunder to lessor. shall be based
upon production only as so allocated. Lessor '.hall formally e q.r.'cs Lessor's consent to any cooperative or unit
plan of development or operation adopted by lessee and aprovml by any governmental agency by executing the same
upon request of Lessee.
4. Lessee shall have the right at any film: n!thout. Ir'.;,o 's consent to surrender all or any portion of the
leased premises and be relieved of all obligation as to tie, outage cur rnndored Les',ee shall have the right at
any time during or after the expiration of this lease to remove ell property and fixtures placed by lesser on said
land, including the right to draw and remove all casing. . When required by lessor, Lessee will bury all pipe lines
below ordinary plow depth, and no well shall he drilled ti'hii, tun hundred (Inn) feet of any residence or barn now
on said land without L.essor's consent. The Lessee agrees •r, pr qrU y pay to the owner thereof any damages to crops, '
or improvements, caused by or resulting from any operat acs . e'r:er. pll disturbed portions of surface land are
to be returned to original condition within time desigr,'!,'rd Ly lessor.
9. The rights of either party hereunder may be essteeea, in whole er in part, and the provisions hereof shall
extend to the heirs, successors and assigns of the parties rrret -, hot no such assignment shall be effective or
binding until written entice of the assiaonent is s-rhantte0 f, the ossi'znro party to the other party. (Upon the
receipt of such notice by Lessor, Lessee shall be relieved of all obligations with respect' to the assigned portion
or portions arising subsequent to the date of assignment. Co cha''e in the ownership of land or any interest
therein, shall he binding on Lessee until Hineee sha.Tl he iv,rir In.! ,riteevidence of any transfer, inheritance or
sale of said rights. In the event of the Y,strIrment of the as co a seen r^.r trd fortiori of said land. the
rentals payable hereunder shall l,e apportionable among the '. din r r . r,ltald owners ratably acrnrding to the surface
area of each, and default in rental payment by ouo shall not . 1 • t the riolts rt ether leasehold owners herenrder.
lti. All express err im,pl ied revenants of fhi'. lease - hJai' 1 be r,atera to all I rd,'rnl and State Laws, I sn
Ordees, Rules or Regular, :unr„ and this lease sun I not hr. 'r-r '-i ate:, ;n whole or in part, nor Lessee hold l table in
damages, for failure to comply therewith, if compliance is ei ,':'uteri r's , nr if such failure is the resull of. any
such law, Order, Pete or Regulation, or if prevented lv ae act n' eri, er the public innov, later disputes, inability
to nbtair material , taif we of transportation, or other c iu'r t ti griteol el le_ e
If during the trrr pf this lease, oil or gas or other hedrnr modes ;sd,s ca-morrd coon the leased premises. hut.
Lessee is prevented frond producing the same by reason of :any of t. ' , lure; set nut in this Section. this lease shall
nevertheless he considered as producing and shall continl, ire niHt rspree ant effect unur1 lessee -is permitted to pro-
duce the oil , gas and other hydrocarbons, and as long thereafter ac ,usl, production continues in paying quantities
or drrillinn or reworking operations are continued as elsewhere he,ein presided.
• 11. Lessor does net warrant title to said real estate or to the mineral interests in said teal estate, however,
it is agreed that if Lessor owns less than 100'. of the minerals, then, and in that event, the royalties and rentals to
be paid Lessor shall be reduced proportionately,
1C. riot withstanding any provision of this lease to the contrary, ire operations-shall he conducted on the above
described land without written notice to the lessor.
13. Upon the termination of this lease in whole or in part by election or by failure to hake payments as afore-
said, Lessee or its assigns shall within thirty (30) days release by written instrument the land or portion thereof
which said lease terminates, and said notice shall also he sent ro lessor giving the bock aid page number of said
lease. It is expressly understood that this lease is subject to and controlled by any law of the State of Colorado
now in effect restrict ing Or HUH ling the powers of counties er hoards of sanity conrtnissioners, and any provision
herein in conflict therewith shall he inoperative and void.
14. All of the provisions of this lease shall inure to the Iurnefit of and be binding upon the parties hereto,
their heirs, administrators, successors and assigns.
X92 1813968
•
•
•
15. This agreement shall be binding on each of the above named parties who sign the same, regardless of whether
it is signed by any of the other parties.
IN WITNESS WHEREOF, this instrument is executed nn the date first above written.
BOARD OF COUNTY COMMISSIONERS
LD COUNTY, COLORADO
ATTEST: . .;,. .. ,,-•s ' a .,3.« ':Use-�/ ._ <. , 1 /
Weld County Clerk Ind Recorderday/
and f,1rrY id the Beard ��2
C VL*ti --�.A CtLUfie-
NERGY MINERALS CORPORATION
Robert . Julander
STATE OF COLORADO ) Vice President
) Ss.
COUNTY OF wfir )
ss
?v The forrgnir4yinstrument was acknowledged before me this 19th day of December 1979, by
=A ; �₹�?p1 Alif; . t'ilander, Vice President, Energy Minerals Corporation.
•
MY�crnri c inn rxIdres: Witness my hand and official seal.
yx My CU ..,!;4i1 expires luty 3, 1921
nlary PillIT `_ 'jt
Hello