HomeMy WebLinkAbout20110203.tiff HTC Heritage Title Company 8450 E. Crescent Parkway,Suite 410
Greenwood Village,CO 80111
Makh,S,}an,aca;o,u personal Phone: (303)476-5800
Fax: (866)596-5526
•Cormnomivealth'
DATE: August 30,2010
FILE NUMBER: 598-110288000-331-FGT
PROPERTY ADDRESS: Vacant land,Greeley, CO
OWNER/BUYER: Michael D. Konig/to be determined
ASSESSOR PARCEL NUMBER:
PLEASE REVIEW THE ENCLOSED MATERIAL COMPLETELY AND TAKE NOTE OF THE FOLLOWING TERMS CONTAINED
THEREIN:
Transmittal:
Schedule A:
Schedule B-Section I Requirements: ,
Schedule B—Section 2 Exceptions:
Should you have any questions regarding these materials,or our new on-line transaction management program TitleVault, please contact
Heritage Title Company at the above phone number. We sincerely thank you for your business.
( TI,TLE VAULT
transactn management system
TO: Heritage Title Company ATTN: Fiddlers Green Title Only
Greenwood Village Title Only PHONE: (303)476-5800
8450 E.Crescent Parkway FAX: (866)596-5526
Suite 410 E-MAIL: titlevault@heritagetco.com
Greenwood Village,CO 80111 DELIVERY:E-MAIL
NO.OF COPIES: 1
TO: Noble Energy Inc. ATTN: Curt Moore
• 1625 Broadway,Suite 2000 PHONE: (303)389-3600
MOBILE: (000)000-0000
Denver,CO 80202 FAX: (000)000-0000
E-MAIL: cmoore@nobleenergyinc.com
REF NO.: DELIVERY:Email
0 If checked,supporting documentation enclosed NO.OF COPIES: 1
TO: Baseline Corp. ATTN: Chris Rundall
2740 Acre Lane PHONE: (970)879-1825
Suite 205 MOBILE:
Steamboat Springs,CO 80487 FAX:
E-MAIL: chris@baselinecorp.com
REF NO.: DELIVERY: Email
® If checked, supporting documentation enclosed NO.OF COPIES: 1
END OF TRANSMITTAL
•
2011-0203
Hit Heritage
Title Company
Making Trans iio.0 Personal
• 41 Conromweattti
Date: August 30, 2010
RE: Buyer/Borrower: to be determined
Seller(s): Michael D. Konig
Property Address: Vacant land, Greeley, CO
Assessor Parcel Number:
Commitment Number: 598-H0288000-331-FGT
We would like to thank you for choosing Heritage Title Company for your title insurance needs.
For all of your closing needs, including Tax Certificate, Settlement Statement/HUD or Insured Closing
Letters, your Escrow Officer is:
Fiddlers Green Title Only:
Phone: (303)476-5800
Fax: (866) 596-5526
Email: titlevault@heritagetco.com
Location of Closing: 8450 E. Crescent Parkway Suite 410 Greenwood Village, CO 80111
EFFECTIVE IMMEDIATELY-NEW WIRING INSTRUCTIONS
PLEASE UPDATE YOUR RECORDS
• Wells Fargo Bank: 550 California Street, 10th Floor San Francisco, CA 94104
Account Name: Heritage Title Company
Account Number: 8861647025
ABA Number: 121000248
Reference: 598-H0288000-33 I-FGT
Vacant land, Greeley, CO
Visit our website www.heritagetco.com for a demonstration of our Online Transaction Management
Service, TitleVault. This amazing program allows you to manage your transactions 24/7! Contact your
Business Development Representative for a login and password.
lt1TITLE VAULT
ms ystem
Once again, thank you for your business. We look forward to servicing your transaction
Sincerely,
Heritage Title Company
0
08/30/2010 8:20:09 AM Commitment No.: 598-H0288000-331-FGT
• Commonwealth Land Title Insurance Company
COMMITMENT
SCHEDULE A
Commitment No: 598-H0288000-331-FGT
1. Effective Date: August 19, 2010 at 7:00 A.M.
2. Policy or policies to be issued:
Proposed Insured Policy Amount
(a) ALTA 2006 Owner's Policy $TO COME
to be determined
(b) None $
3. The estate or interest in the land described or referred to in this Commitment is:
• A Fee Simple
4. Title to the estate or interest in the land is at the Effective Date vested in:
Michael D. Konig
5. The land referred to in this Commitment is described as follows:
See Attached Legal Description
(for informational purposes only) Vacant land, Greeley, CO
PREMIUMS:
to be determined commitment: $350.00
•
Copyright 2006-2009 American Land Title Association.All rights reserved.The use of this Form is restricted to ALTA licensees
and ALTA members in good standing as of the date of use.All other uses are under license from the American Land Title Association.
08/30/2010 8:20:09 AM Commitment No.: 598-H0288000-331-FGT
Attached Legal Description
The Northwest Quarter(NW ''A)of Section 11,Township 10 North, Range 62 West of the 6'h P.M.,
County of Weld,
State of Colorado.
•
•
Copyright 2006-2009 American Land Title Association.All rights reserved.The use of this Form is restricted to ALTA licensees A�MFR
and ALTA members in good standing as of the date of use.All other uses are under license from the American Land Title Association, A":" ..
08/30/2010 8:20:54 AM Commitment No.: 598-H0288000-331-FGT
SCHEDULE B-Section 1
• Requirements
The following requirements must be met:
a. Pay the agreed amounts for the interest in the land and/or for the mortgage to be insured.
b. Pay us the premiums, fees and charges for the policy.
e. Obtain a certificate of taxes due from the county treasurer or the county treasurer's authorized agent.
d. Evidence that any and all assessments for common expenses, if any, have been paid.
e. The Company will require that an Affidavit and Indemnity Agreement be completed by the party(s)
named below before the issuance of any policy of title insurance.
Party(s): Michael D. Konig
The Company reserves the right to add additional items or make further requirements after review of the
requested Affidavit.
f. Deed sufficient to convey the fee simple estate or interest in the Land described or referred to herein, to
the Proposed Insured Purchaser.
g. Deed of Trust sufficient to encumber the estate or interest in the Land described or referred to herein for
• the benefit of the Proposed Insured Lender.
h. The Company reserves the right to add additional exceptions and/or make further requirements once the
identity of the Purchaser is disclosed.
24 MONTH CHAIN OF TITLE,FOR INFORMATIONAL PURPOSES ONLY:
The following vesting deeds relating to the subject property have been recorded in the Clerk and Recorder's office
of the County in which the property is located:
There are no conveyances within the 24 month period.
END OF REQUIREMENTS
• Copyright 2006-2009 American Land Title Association.All rights reserved.The use of this Form is restricted to ALTA licensees
and ALTA members in good standing as of the date of use.All other uses are under license from the American Land Title Association.
08/30/2010 8:20:09 AM Commitment No.: 598-H0288000-331-EGT
SCHEDULE B-Section 2
• Exceptions
Any policy we issue will have the following exceptions unless they arc taken care of to our satisfaction:
1. Any facts,rights, interests or claims that are not shown by the Public Records but which could be
ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land.
2. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records.
3. Any encroachments, encumbrances, violation, variation, or adverse circumstance affecting the Title that
would be disclosed by an accurate and complete land survey of the Land and not shown by Public
Records.
4. Any lien or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by
law and not shown by the Public Records.
5. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the Public
Records or attaching subsequent to the effective date hereof but prior to the date the proposed Insured
acquires of record for the value the estate or interest or mortgage thereon covered by this Commitment.
6. (a) Unpatented mining claims; (b)reservations or exceptions in patents or in Acts authorizing the issuance
thereof, (c) water rights, claims of title to water, whether or not the matters excepted under (a), (b), or (c)
arc shown by the Public Records.
• 7. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that
levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency
that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the
records of such agency or by the Public Records.
8. All taxes and assessments, now or heretofore assessed, due or payable.
9. Reservations contained in the Patent
From: The United States of America
Recording Date: March 9, 1923
Recording No: Book 668 at Page 9, Reception No. 402887
Which among other things recites as follows:
The right to prospect for, mine and remove coal and other mineral deposits.
A right of way thereon for ditches or canals constructed by the authority of the United States of America.
Any vested and accrued water rights for mining, agricultural, manufacturing or other purposes and rights
to ditches and reservoirs used in connection with such water rights as may be recognized and
acknowledged by local customs, laws and decisions of courts.
(E1/2 NW1/4)
• Copyright 2006-2009 American Land Title Association.All rights reserved.The use of this Form is restricted to ALTA licensees A,„,
and ALTA members in good standing as of the date of use.All other uses are under license from the American Land Title Association. EA A,__ _ri
t
08/30/2010 8:20:09 AM Commitment No.: 598-110288000-331-FGT
• 10. Reservations contained in the Patent
From: The United States of America
Recording Date: February 14, 1934
Recording No: Book 956 at Page 14, at Reception No. 683750
Which among other things recites as follows:
The right to prospect for, mine and remove coal and other mineral deposits.
A right of way thereon for ditches or canals constructed by the authority of the United States of America.
Any vested and accrued water rights for mining, agricultural, manufacturing or other purposes and rights
to ditches and reservoirs used in connection with such water rights as may be recognized and
acknowledged by local customs, laws and decisions of courts.
(W1/2 NW1/4)
11. Terms, Easements, conditions, provisions, agreements and obligations contained in the Map and
Statement regarding Milford Reservoir, Seepage Ditch and Pipe lines Filed January 12, 1911 at Reception
No. 162923.
12. Any interest in all oil, gas and other mineral rights as reserved in the instrument set forth below, and any
and all assignments thereof or interests therein:
Recording Date: April 11, 1986
• Recording No.: at Reception No. 2049651
13. An oil and gas lease for the term therein provided with certain covenants, conditions and provisions,
together with easements, if any, as set forth therein, and any and all assignments thereof or interests
therein.
Recording Date: March 25, 1988
Recording No: at Reception No. 2135600
14. Notice pursuant to C.R.S. Sec. 9-1.5-1030) as amended concerning underground facilities of Wiggins
telephone association recorded October 14, 1992 at Reception No. 2306829.
15. Terms, conditions, provisions, agreements and obligations contained in the Uranium and Mining lease as
set forth below:
Recording Date: August 27, 2007
Recording No.: at Reception No. 3499927
16. An oil and gas lease for the term therein provided with certain covenants, conditions and provisions,
together with easements, if any, as set forth therein, and any and all assignments thereof or interests
therein.
Recording Date: January 13, 2009
Recording No: at Reception No. 3599290
• Copyright 2006.2009 American Land Title Association.All rights reserved.The use of this Form is restricted to ALTA licensees
M[RICRN
and ALTA members in good standing as of the date of use.All other uses are under license from the American Land Title Association. �;.o TPT.E
08/30/2010 8:20:09 AM Commitment No.: 598-H0288000-331-FGT
17. An oil and gas leases for the term therein provided with certain covenants, conditions and provisions,
• together with easements, if any, as set forth therein, and any and all assignments thereof or interests
therein recorded April 10, 2009 at Reception No. 3616017, April 12, 2010 at Recccption No.'s 36862007,
3686209, 3686210, 3686211, 3686212, and May 4, 2010 at Reception No.'s 3691025, 3691026, 3691027,
3691028, 3691029 and June 28, 2010 at Reception No. 3702036.
18. right of ways for County roads 120 and 81 to the North and West of said land.
END OF EXCEPTIONS
•
• Copyright 2006-2009 American Land Title Association.All rights reserved.The use of this Form is restricted to ALTA licensees ,,,
and ALTA members in good standing as of the date of use.All other uses are under license from the American Land Title Association. =i
08/30/2010 8:20:09 AM CommitmentNu.: 598-H0288000-331-FGT
AFFIDAVIT AND INDEMNITY AGREEMENT
• TO Heritage Title Company a Colorado Corporation and Commonwealth Land Title Insurance Company,a Nebraska Corporation.
I. This is written evidence to you that there are no unpaid bills, and to the extent there may be unpaid bills, that the undersigned
undertakes and agrees to cause the same to be paid such that there shall be no mechanics or materialmen's liens affecting the property
for materials or labor furnished for construction and erection, repairs or improvements contracted by or on behalf of the undersigned
on property:
legally described as:
See Attached Affidavit and Indemnity Agreement Legal Description
Property Address: Vacant land,Greeley,CO
2. We further represent that to the actual knowledge and belief of the undersigned there are no public improvements affecting the
property prior to the date of closing that would give rise to a special property tax assessment against the property after the date of
closing.
3. We further represent that to the actual knowledge and belief of the undersigned there arc no pending proceedings or unsatisfied
judgments of record,in any Court, State,or Federal,nor any tax liens filed or taxes assessed against us which may result in liens,and
that if there are judgments, bankruptcies,probate proceedings, state or federal tax liens of record against parties with same or similar
names,that they are not against us.
4. We further represent that there arc no unrecorded contracts, leases, easements, or other agreements or interests relating to said
premises of which we have knowledge.
5. We further represent that to the actual knowledge and belief of the undersigned we arc in sole possession of the real property
described herein other than leasehold estates reflected as recorded items under the subject commitment for title insurance.
6. We further represent that there are no unpaid charges and assessments that could result in a lien in favor of any association of
homeowners which are provided for in any document referred to in Schedule B of Commitment referenced above.
7. We further understand that any payoff figures shown on the settlement statement have been supplied to Heritage Title Company as
settlement agent by the seller's/borrower's lender and are subject to confirmation upon tender of the payoff to the lender. If the payoff
•
figures are inaccurate, we hereby agree to immediately pay any shortage(s)that may exist. If applicable as disclosed or referred to on
Schedule A of Commitment referenced above.
The undersigned aftiant(s)know the matters herein stated are true and indemnifies Heritage Title Company, a Colorado Corporation
and Commonwealth Land Title Insurance Company, a Nebraska Corporation against loss,costs,damages and expenses of every kind
incurred by it by reason of its reliance on the statements made herein.
This agreement is executed with and forms a part of the sale and/or financing of the above described premises,and is given in addition
to the conveyance and/or financing of the premises in consideration for the conveyance and/or financing, and forms a complete
agreement by itself for any action thereon.
SELLER: SELLER:
Michael D.Konig
State of Colorado )ss:
County of Weld
The foregoing instrument was acknowledged,subscribed,and sworn to before me on by Michael D.Konig.
(SEAL) Notary Public
My Commission Expires:
•
08/30/2010 8:20:09 AM Commitment No.: 598-II02KM000-331-FGT
ATTACHED AFFIDAVIT AND INDEMNITY AGREEMENT
• LEGAL DESCRIPTION
The Northwest Quarter(NW 1<)of Section I I,Township 10 North,Range 62 West of the 6's P.M.,
County of Weld,
State of Colorado.
•
•
08/30/2010 8:20:09 AM Commitment No.: 598-110288000-331-FGT
• T
• CommonwealthTM
LAND TITLE INSURANCE COMPANY
COMMITMENT FOR TITLE INSURANCE
Issued by
Heritage Title Company
AS AGENT FOR
Commonwealth Land Title Insurance Company
Commonwealth Land Title Insurance Company, a Nebraska corporation("Company"), for a valuable
consideration, commits to issue its policy or policies of title insurance, as identified in Schedule A, in favor of the
Proposed Insured named in Schedule A, as owner or mortgagee of the estate or interest in the land described or
referred to in Schedule A, upon payment of the premiums and charges and compliance with the Requirements; all
subject to the provisions of Schedule A and B and to the Conditions of this Commitment.
The Commitment shall be effective only when the identity of the Proposed Insured and the amount of the policy
or policies committed for have been inserted in Schedule A by the Company.
• All liability and obligation under this Commitment shall cease and terminate 6 months after the Effective Date or
when the policy or policies committed for shall issue, whichever first occurs, provided that the failure to issue the
policy or policies is not fault of the Company.
The Company will provided a sample of the policy form upon request.
IN WITNESS WHEREOF,Commonwealth Land Title Insurance Company has caused its corporate name and
seal to be affixed by its duly authorized officers on the date shown in Schedule A.
mom`L� 01/141,i1!t'�//n11 nn
Attest: �— - SEAL } By �
/`
Secretaryr (A�
President
• Copyright 2006-2009 American Land Title Association.All rights reserved.The use of this Form is restricted to ALTA licensees
and ALTA members in good standing as of the date of use.All other uses are under license from the American Land Title Association. r -
08/30/2010 8:20:09 AM Commitment No.: 598-110288000-331-FCT
•
CONDITIONS
1. The term mortgage, when used herein, shall include deed of trust, trust deed, or other security instrument.
2. If the proposed Insured has or acquired actual knowledge of any defect, lien, encumbrance, adverse claim
or other matter affecting the estate or interest or mortgage thereon covered by this Commitment other than
those shown in Schedule B hereof, and shall fail to disclose such knowledge to the Company in writing,
the Company shall be relieved from liability for any loss or damage resulting from any act of reliance
hereon to the extent the Company is prejudiced by failure to so disclose such knowledge. If the proposed
insured shall disclose such knowledge to the Company, or if the Company otherwise acquires actual
knowledge of any such defect, lien, encumbrance, adverse claim or other matter, the Company at its
option may amend Schedule B of this Commitment accordingly, but such amendment shall not relieve the
Company from liability previously incurred pursuant to paragraph 3 of these Conditions.
3. Liability of the Company under this Commitment shall be only to the named proposed insured and such
parties included under the definition of Insured in the form of policy or policies committed for and only
for actual loss incurred in reliance hereon in undertaking in good faith (a)to comply with the
requirements hereof, or(b) to eliminate exceptions shown in Schedule B, or (c)to acquire or create the
estate or interest or mortgage thereon covered by this Commitment. In no event shall such liability
exceed the amount stated in Schedule A for the policies or policies committed for and such liability is
subject to the insuring provisions and Conditions and the Exclusions from Coverage of the form of policy
or policies committed for in favor of the proposed Insured which are hereby incorporated by reference
and are made a part of this Commitment except as expressly modified herein.
• 4. This Commitment is a contract to issue one or more title insurance policies and is not an abstract of title
or a report of the condition of title. Any action or actions or rights of action that the proposed Insured
may have or may bring against the Company arising out of the status of the title to the estate or interest or
the status of the mortgage thereon covered by this Commitment must be based on and arc subject to the
provisions of this Commitment.
5. The policy to be issued contains an arbitration clause. All arbitrable matters when the Amount of
Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or the Insured as
the exclusive remedy of the parties. You may review a copy of the arbitration rules at
http://www.alta.org.
• Copyright 2006-2009 American Land Title Association.All rights reserved.The use of this Form is restricted to ALTA licensees TETT
and ALTA members in good standing as of the date of use.All other uses are under license from the American Land Title Association. TAD TITLE
08/30/2010 8:20:09 AM Commitment No.: 598-H0288000-331-FCT
DISCLOSURE STATEMENT
• Pursuant to Section 38-25-125 of Colorado Revised Statutes and Colorado Division of Insurance Regulation
• 3-5-1 (Section 6), if the parties to the subject transaction request us to provide escrow-settlement and
disbursement services to facilitate the closing of the transaction, then all funds submitted for disbursement
must be available for immediate withdrawal.
• Colorado Division of Insurance Regulation 3-5-1, Paragraph C of Article WI, requires that "every title entity
shall be responsible for all matters which appear of record prior to the time of recording whenever the title
entity conducts the closing and is responsible for recording or filing of legal documents resulting from the
transaction which was closed". Provided that Heritage Title Company conducts the closing of the insured
transaction and is responsible for recording the legal documents from the transaction, exception No. 5 in
Schedule B-2 will not appear in the Owner's Title Policy and Lender's Title Policy when issued.
• If the sales price of the subject property exceeds $100,000.00 the seller shall be required to comply with the
Disclosure of Withholding Provisions of C.R.S. 39-22-604.5 (Nonresident Withholding).
• Section 39-14-102 of Colorado Revised Statutes requires that a Real Property Transfer Declaration
accompany any conveyance document presented for recordation in the State of Colorado. Said Declaration
shall be completed and signed by either the grantor or grantee.
• Recording statutes contained in Section 30-10-406(3)(a)of the Colorado Revised Statutes require that all
documents received for recording or filing in the clerk and recorder's office shall contain a top margin of at
least one inch and a left, right, and bottom margin of at least one-half of an inch. The clerk and recorder may
refuse to record or file an document that does not conform to requirements of this paragraph.
• Section 38-25-109 (2) of the Colorado Revised Statutes, 1973, requires that a notation of the purchasers legal
address, (not necessarily the same as the property address) be included on the face of the deed to be recorded.
• Regulations of County Clerk and Recorder's offices require that all documents submitted for recording must
• contain a return address on the front page of every document being recorded.
• Pursuant to Section 10-11-122 of the Colorado Revised Statutes, 1987 the Company is required to disclose
the following information:
o The subject property may be located in a special taxing district.
o A Certificate of Taxes Due listing each taxing jurisdiction shall be obtained from the County
Treasurer or the County Treasurer's authorized agent.
o Information regarding special districts and the boundaries of such districts may be obtained from
the Board of County Commissioners, the County Clerk and Recorder or the County Assessor.
• Pursuant to Section 10-11-123 of the Colorado Revised Statutes, when it is determined that a mineral estate
has been severed from the surface estate, the Company is required to disclose the following information: that
there is recorded evidence that a mineral estate has been severed, leased, or otherwise conveyed from the
surface estate and that there is a substantial likelihood that a third party holds some or all interest in oil, gas,
other minerals, or geothermal energy in the property; and that such mineral estate may include the right to
enter and use the property without the surface owner's permission.
• Note: Notwithstanding anything to the contrary in this Commitment, if the policy to be issued is other than an
ALTA Owner's Policy(6/17/06), the policy may not contain an arbitration clause, or the terms of the
arbitration clause may be different from those set forth in this Commitment. If the policy does contain an
arbitration clause, and the Amount of Insurance is less than the amount, if any, set forth in the arbitration
clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the
exclusive remedy of the parties..
• Copyright 2006-2009 American Land Title Association.All rights reserved.The use of this Form is restricted to ALTA licensees .M
IIM
and ALTA members in good standing as of the date of use.All other uses are under license from the American Land Title Association. e_
08/30/2010 8:20:09 AM
Commitment No.: 598-110288000-331-FGT
Effective Date 5/1/2008
• Fidelity National Financial, Inc.
Privacy Statement
Fidelity National Financial, Inc. and its subsidiaries ("FNF") respect the privacy and security of your non-public
personal information ("Personal Information") and protecting your Personal Information is one of our top priorities.
This Privacy Statement explains FNF's privacy practices, including how we use the Personal Information we receive
from you and from other specified sources, and to whom it may be disclosed. FNF follows the privacy practices
described in this Privacy Statement and, depending on the business performed, FNF companies may share information
as described herein.
Personal Information Collected
We may collect Personal Information about you from the following sources:
• Information we receive from you on applications or other forms, such as your name, address, social security
number,tax identification number,asset information,and income information;
• Information we receive from you through our Internet websites,such as your name,address, email address, Internet
Protocol address, the website links you used to get to our websites, and your activity while using or reviewing our
wcbsites;
• Information about your transactions with or services performed by us, our affiliates, or others, such as information
concerning your policy, premiums, payment history, information about your home or other real property,
information from lenders and other third parties involved in such transaction, account balances, and credit card
information; and
• Information we receive from consumer or other reporting agencies and publicly recorded documents.
Disclosure of Personal Information
We may provide your Personal Information(excluding information we receive from consumer or other credit reporting
• agencies)to various individuals and companies, as permitted by law, without obtaining your prior authorization. Such
laws do not allow consumers to restrict these disclosures. Disclosures may include, without limitation, the following:
• To insurance agents, brokers, representatives, support organizations, or others to provide you with services you
have requested, and to enable us to detect or prevent criminal activity, fraud, material misrepresentation, or
nondisclosure in connection with an insurance transaction;
• To third-party contractors or service providers for the purpose of determining your eligibility for an insurance
benefit or payment and/or providing you with services you have requested;
• To an insurance regulatory authority, or a law enforcement or other governmental authority, in a civil action, in
connection with a subpoena or a governmental investigation;
• To companies that perform marketing services on our behalf or to other financial institutions with which we have
joint marketing agreements and/or
• To lenders, lien holders,judgment creditors, or other parties claiming an encumbrance or an interest in title whose
claim or interest must be determined, settled, paid or released prior to a title or escrow closing.
We may also disclose your Personal Information to others when we believe, in good faith, that such disclosure is
reasonably necessary to comply with the law or to protect the safety of our customers, employees, or property and/or to
comply with a judicial proceeding, court order or legal process.
Page I of 2
•
Privacy Statement
08/30/2010 8:20:09 AM
Commitment No.: 598-H0288000-331-FGT
Fidelity National Financial, Inc.
Privacy Statement(Continued)
Disclosure to Affiliated Companies — We arc permitted by law to share your name, address and facts about your
transaction with other FNF companies, such as insurance companies, agents, and other real estate service providers to
provide you with services you have requested, for marketing or product development research, or to market products or
services to you. We do not, however, disclose information we collect from consumer or credit reporting agencies with
our affiliates or others without your consent, in conformity with applicable law, unless such disclosure is otherwise
permitted by law.
Disclosure to Nonaffiliated Third Parties — We do not disclose Personal Information about our customers or former
customers to nonaffiliated third parties,except as outlined herein or as otherwise permitted by law.
Confidentiality and Security of Personal Information
We restrict access to Personal Information about you to those employees who need to know that information to provide
products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal
regulations to guard Personal Information.
Access to Personal Information/
Requests for Correction, Amendment,or Deletion of Personal Information
As required by applicable law, we will afford you the right to access your Personal Information, under certain
circumstances to find out to whom your Personal Information has been disclosed, and request correction or deletion of
your Personal Information. However, FNF's current policy is to maintain customers' Personal Information for no less
than your state's required record retention requirements for the purpose of handling future coverage claims.
For your protection, all requests made under this section must be in writing and must include your notarized signature
to establish your identity. Where permitted by law, we may charge a reasonable fee to cover the costs incurred in
• responding to such requests. Please send requests to:
Chief Privacy Officer
Fidelity National Financial, Inc.
601 Riverside Avenue
Jacksonville, FL 32204
Changes to this Privacy Statement
This Privacy Statement may be amended from time to time consistent with applicable privacy laws. When we amend
this Privacy Statement, we will post a notice of such changes on our website. The effective date of this Privacy
Statement, as stated above, indicates the last time this Privacy Statement was revised or materially changed.
Page 2 of 2
•
Privacy Statement
y ,
9pol 966 dg 14
:' FEB:14 1934 at_iS' Oeclo i 2 tt.
g�� a" f.
IW cation Rdw •?ALTER F MORIiISQN,Reco-1er. sR
"'ENVER 02597.I !..
I s
alp Built? 'intro n!'Ate ,
9t*all fa WI=*at prnnde*ball tdtllt,fdttttiag e
WHEREAS, a Certificate of the Register of the Land Office at DENVER, COLORADO,
has been deposited In the General Land Office, whereby It appears thir, pennant to the Act of Congress of Nay 20, 1882,
oTo Secure Homesteads to Actual Settlers on.the Public Domain," and the act euppiemenW thereto, the cam of
_
ISAAC MC GEE
has been established and duly coneummatid,In conformity to law,for the WEST HALF OF THE SOUTHWEST-QUAR-
1 , ' 1
TER OF SECT ION TOO AND .THE'WEST HALF OF THS NORTHWEST QUARTER OF SECTION
ELEVEN IN TOWNSHIP TEN NORTH OF RANGE SIXT/—TWO WEST OF THE SIXTH PRINCIPAL
•
MERIDIAN, COLORADO, CONTAINING ONE HUNOREL SIXTY AORES,
according to the Ofecial Plat of the Surrey of the said land,returned to the GENERAL LAND OFFICE by w in aveyor•Generalt
NOW KNOW YE,That there le,thefefare,granted by the UNITED STATES unto the said claimant the tract of Land above dercribedl
HAVE AND TO HOLD the said tract of Lindawith the appurtenances thereof,unto the said claimant and to the hairs and assigns ofill
said claimant forever;subject to any vetted and accrued her rights for mining,agricultural,manufacturing,or other purposes,and
to to.dehes and reservoirs used In connection with much water rights,as mayde recognized and acknowledged by the local customs,laws,
and decisions of courts; and there Is reserved from the lends hereby granted,n right of way thereon for ditches or canals conflicted by the
authority of the United States; nesemIng,also,to the United Slates all coal In the lands to granted,and to It,or persons authorized by It,
the right to prospect for,mine,end remove coal from the same upon compliance with the conditions of and subject to the lImIdtione of the
ACT OF JUNE 22, 1910 --36 STAT., 503--. - -
IN TESTIMONY WHEREOF,1, WILLIAM H. TAFT
I, t
President of the United States. of Americo,have caused these letters to he made
it. 24$sl-4 y {"'u —tatenp and the;ear of the general Lend Oaks to be hereunto,Mind. --
41
t , a tfiti GIVEN under my hand,at the City of Washington,the SEVENTH
alt , , I:
nl/ , it,Go, day of 9C1 In the year of our Lord one thousand
idti milt Os i'i nine Aunerdd red ELEVEN and of the Independeeoce of the - --
11/2 2.O.1 e'• ri United Std.0 the ono hundred and TWAT I••l
f' rlra dasaeraP ' I"i
' Sy the Presidents /�/!lT OO lAf4,C{
8 ._- : , ;a p __._._,Secretary,
T O.e. ?G.':7
Aatltlgn aorMrr of Ms CanI Mud Office.
RECOnDED, Pofent NumAsr..
.-On
5,r.
—ry�.� 1 �`'}4,z"T`,r •,.c[i YatidrX�uY,�^. yr I
E 1109 REC 02049651 04/11/86 13:07 53.00 1/001
A R2D49651 F 0349 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
State Documentary Fey
PERSONAL REPRESENTATIVE'S DEED -
(TESTATE ESTATE) Dots
• $ .8.00
THIS DEED is made by GERTRUDE HORN, as Personal •
Representative of the ESTATE OF ARTHUR W. STEEP, also known as A.
W. STEER, an unmarried person, DECEASED, Grantor, to
MICHAEL D. K0NIG
Grantee, whose address is Rural Route, Grover, Colorado 80729.
WHEREAS, the above-named decedent in his lifetime made and
executed his Last Will and Testament, dated February 1, 1974, and
the First Codicil to his Will dated August 21, 1979, which Will
and First Codicil were duly admitted to formal probate on July 5,
1985, in the District Court of Weld County, Colorado, Probate No.
85 PP 132; and
WHEREAS, Grantor was duly appointed Personal Representative
of said estate on July 5, 1985, and is now qualified and acting
in said capacity;
NOW, THEREFORE, pursuant to the power conferred upon the
Grantor by Colorado Revised Statutes, '_973, Title 15, Article 12,
Section 711, and for the consideration of EIGHTY THOUSAND DOLLARS
($80,000.00) , the appraised value of the following described
property, the Grantor sells and conveys to the Grantee the
following real property, in WELD County, State of Colorado, to-
wit:
The West Half (W 1/2) and the Northeast Quarter
(NE 1/4) of Section Ten (10) , and the Northwest
Quarter (NW 1/4) of Section Eleven (11) , all in
Township Ten (10) North, Range Sixty-two (62)
• West of the 6th P.N., in WELD County, State of
Colorado, EXCEPTING and RESERVING therefrom unto
the Grantor and her successors herein an un-
divided one-half (1/2) of all the oil, gas and
other minerals lying in and under and that may
be produced therefrom; together with right of in-
gress and egress for the purpose of exploring for
and removing same;
with all appurtenances, subject to all existing roads, utilities,
pipelines, power, telephone or water lines and rights-of-way and
easements therefor; and to the 1986 taxes, payable in 1987.
EXECUTED this /C rte day of April, 1986.
ri
(Documentary
fee - $8.00) /Gertrude Horn, as Personal Represen-
tative of the Estate of Arthur W.
Steer, also known as A. W. Steer, an
unmarried person, Deceased
STATE OF CCLORADC )
ss.
COUNTY CF WELD
The foregoing instrument was acknowledged before me this
/O day of April, 1986, by GERTRUDE HORN, as PERSONAL
REPRF.SE,NTATIVE OF THE ESTATE OF ARTHUR W. STEER, also known as A.
WcSTEEA'; ..an unmarried person, DECEASED.
`3j .WITNESS my Hand an Official seal.
0.�
y 'Commission expires:
• Notary uolic.
' .��..., =rte° Address: p/G- ioTn _
CZ.-Patte 3w.,D-/7m-
Producers Eill—ffeesed OIL AND GAS LEASE
Colorado—Utah(VI
AR2135600
• TH'h AGREEMENT,made and enured into Mu 14th anei FebruazY ,19 88 .by end between
Michael D. Konig, a single mar.
m Route 1, Grover, CO 80729 hereinela m r milt ler(wIlre,5e or nerd.end
597,
Cody Oil & Gas Corporation & P.O. BoxBismarck, ND :gold efftt[rmnedl«an
wlTNSssETHl that lessor.fen and in consideration of -Ten and mIT& DOLLARSt510,00 I I
in hared paid.receipt of whit a hereby acknowledged.and Of theagreements of lessee nemitter set forth,lefty gran,demises,lases and Ins reel W;vey unto said le
the lends hereinafter described for the panne of nosoectin0.no.o ing by geophysical and other methods,drilling,mining.opening for and ppdseeing ail or gas.or bath,
including,but not as a Imitation,cevrr W gat,casino het gasoline,gancondenate(distilln,l and any substance.whether similar or dissimilar,produced in a peon don,
together with the 0 uCO,wuh end rightcno of said uct and meirma.n oh and eta,and[aloe exclusive (then end electric lines,arks.powers,moll,rmowry,,Pend equipment,end'structures teredn to
Omarightsben aka
right to inject sir.ftu,adter,brine and other flu idatrom any aura into tewburfese strata end any and all nomical awing ad taking cane privileges
and gat end theinjection of air.gas,wate forr.brinhe e,end Otherrperation of said end,;Ione or fluks'nit the subsurface strata,mid Iandsbei g slotted y with neighboring land,
Countyhe of production,
Weld ,stole of Colorado ,and being an[hbedaeollow...to-wt:
Township 10 North, Range 62 West
Section 11: NWw'
,it Nina the purpose and inn tint of lessor to lease,
end Assoc ma hereby lease,all of thy:ands or interars in lends.owned by Inter which slain she lends above described or which lie in the section or sections herein
00 five a e\<
specified.For pe all purposes of mil lease,mid l be deemed to certain 160. data. (5) M
tr Sudan to me other provisions herein Mott ned,this ern shall m Per
e all remain In force a term afgtytegy from this des (herein sated'primary term"(and as long
thereafter as oil end get,or either of them,N produced from the above described land Or drilling operations are continuously prosecuted as hereinafter provided."Drilling
(emotions"includes Operations fon the drilling of a new well,:he reworking,deepening or plugging back of a well or hole or odiar operations condoned in an effort no obtain
or reestablish predation of OI or gas;end drilling Operations tell be considered to be"continuously prosnnt"if not more then 60 days shell Olathe between the
completion or abandonment of one wed or hole and the commencement o1 dri:ling operations on another well or hole.If,at the ubpintlon of the primary term of this lam,
oil or gat is not being produced from the above described lend but laden n as is engaged In drilling operations.Til le sNllmin force as long as drilling operator
If,continuously prosecuted;and if production of oil or gas results old s fro any such trilling operations, s lean shall continue in',Prop a os so long airs or gas set be produced,
afterOna expiration of the primary term of N;t leafs.production from the dam described lend should cease,this lease mall net terminate if Isaac is than prosecuting
drilling spenotions,Or Within 60 days after each such cessation of pnadotiion commences Oiling Donations,and this lease shall remain in home so long as such operations are
n 0 L c ounln prosecuted,and if production retie therefrom,then as lone thereafter as Oil or gas's produced from the above described lard.
The loyalties to be paid by lessee ire:del on oil,anee'ghm of that produced ane saved from said land,The same to be delier&at the walls or to the credit of lessor into
the"trains to which the wells may be connected;levee may from Tina to time wombat.any royalty oil in In possession.paying the market price therefor prevailing for the
field when product on the date Of puniness,and east may al'any royalty all in its mneaign and pay levier the price received by lessee fneacb oil computed at the well,
let on gas,including cainpheed pa or ether gaseous substance,produced from said lend and sold Or used off the premises or for the extraction of gasoline or other product
therefrom,the market value at The well of one eighth of the gas as add Or used,provided that on gas old by lessee the market value shall not exceed the amount semeiotic by
'own far',sedges cer:0uted at:he mouth of the well,and on get sold at the well the royalty tall be aneeighth of the amount realized by lean from such sale.If the Price
of any m;nerd,or absance upon which royalty is payable hereunder is regulated by any governmental agency,the market value or market price of such mineral Or subuan&e
ton the purpose",computing royalty hereunder shall not oe in muss of the price Witch lessee may receive and retain.
If no'wall be mmmsnZed on said lend on or before One year femme dere hailed,this lease shell Incept as tthfwise provided ir.this Va'igraph)terminate,limes rnae
In his behalf:,onion,9efere such date,shall gay on render To lson,or to iaore credit in the
..Farmers National Sank et Ault. 10 83610
• ;which sank d Itssuccessors Nell - e the depository regardless
Of changes in ne ownership 1 said tondo of the right m al faein remora,me,um of
''=dace Hundred Sixty and no/100ths COLLARS Is -160.00- ),which tell
eamtem and cbrer?h p'l e of deferring the commencement of a well for 12 months hem said des 1 like manner and upon like peymems or tee env the
commencementif a welt may be funner deferred for lice period,of the same number of menthe successively during tie urin
ary tern:hereof.All payments er tenders may be
'rode by cash,cnackgf drat[mailed or delhoned on or before the rental date,and the depositing of such cash,check or dthift in any pan office.&dressed To the depositary
conk or lesirin.balest known'eddra as shown by lessee's records)on or before the rental date,shall be deemed payment or tender es herein provided.Natwimnendire
Una death of'lessor,aymeni'or tender of rentals to such deceased er to his credit in the manner provided herein shell be binding on the heirs,loons,executors,
adminlsretoenn end pemenerrepraenatives of leapr and his successors in interest.:f lessee wail,or or before any renal date,make a tans fide attempt to ay of deposit
rental f0 5 letter'Intila thereto under this lease&carding to Igsa'a nbbra Or TO a lemon who,titan to such attempted payment or deposit,In.,given lewd sauce,in
accordance with the terms of:his Ito hereinafterset forth.Of his rightItreceive rental,and if such payment or deposit shall be erroneoc,in any regard(whether deposited
in the wrong depository, paid a persons Other then the portico entitled thereto at dawn by lesess neccnda,in en ineOrntt amount,or otherwise),lessee shall be
one:nd:tieno:ly Obligated t0 pet to such laser the renal properly payable for the rental period involved.but this lease shall be maintained in the same mariner es if such
emoneous rental payment or deposit had been properly made,Provided that The erroneous rent.:tyrant or deposit be corrected within 20 days after receipt by Insaof
notice from such lessor of such error accompanied by any documents and other evidence necesaryto arahla levee To make neooer payment The mninueiOn tint
pwritten nin,the down payment,covers not only the privilege grimed to me dare when said fin tonal is'flyable as aforesaid,Out also lead's option of extending mat
eriod es aforesaid,and ray and all other rignC confer-ed.
Should the fire wen mind on Ire above described rand be completed as a dry hold then,aim m thee anent.if a second wail is not commenced on said lend with n 12
orms from the ndiration of ma lest rentaloe'i0e for wnicn rota.has been paid lie being understood that for toe purpose of this paragraph m0 period oft we extending
from the data of this lea to the first renal data shall ea considered as a renal period for which rental has bean paiek this lease mall arrnlnane a to both parts unless
Inds on or been the...oration of said 52 months mall repwe the ailment of rentals in the,one amount end in the tome manner es heretofore.provided.Upon
reSumpt On of the payment o1 renal,,as above provided,era lent preceding Pe rgrth hereof,governing the Payment of rentals and the effect thereof,shall continue in torte
'lust as to rich there hod bean n0 interruption in rental paymento.
If a well ca p&le Of prodycing pet or en end gaseetenstn in Define Quantities located on the leased premise(or on crepe pooled or consolidated with ail ora
portion e1 the least premises into a unit for the drilling or OOerotic,of men weal is at any time shut it end no ten or gacpkensete therefrom is mid 0'used oft the
o romis or for the manufacture of gasoline or ether products,nevertheless such snuein we:l tell be deemed to bee wet on the lased premises producing gas in Paving
Qantities and this lease will continue in forte during el'al the time on times writ a such wail is so shut in.whether before or alter he expiration of the Orinery term hereof.
Lessee shall use reasonable&Roane to market oar or gas and zeseondensate capable of being produced from such Nucin well but del:be under no obligation to market such
P roducts under tams,renditions whlcn,'n leea'S judgment.tensed geed faith,are unsa a rich -:Ma tisfactory,Lee shall be obligated paV Or tender to
within 05 days after the eapirotien of each pried of one year in length(anntal period,during which such well is so shut in,as royalty,en amount equal to the annual delay
rental herein provided applicable to the intent of lesson in acreage embraced in this lease as of the end of such omen period,or,if this lees,clew not provide for any deny
rental,then the sum of 050.00:provided that,'if gas or gascondenate from such well issold or used m aforesaid galore the end Of any such annual period,or if,at the end of
any Ach annual period,this lease is being maintained in force end effect Otherwise than by reason of such shanty well,Ieaae stall net be obligated to pay or Tendon for than
particular inning period,aid sum of money.Su&oeyme IT Coll ba deemed a royalty under all prevlsiens of Thin(ease.Such eeymmt may be trade or tendered to lessor or
TO Ian's credit in he depository bank tore designated.Royalty Ownership as of the lastas day Siac each such annual periodshown tor lessees resets marl govern the
dnare;nation of The arty on cartes entitled to receive such payment
If anon wns a less merely:in The;acrd covered or thin lease than the entire end undivided fee simple mineral esa:e thereln,Men whether or net such lets interest is
marred to or described hetele,e I rentals end royalties herein provided she:l be pea lesser only in the proportion which tic:nge'nn been to the whoa and undivided mineral
fa. ten estate of either pees nerve is assigned o'sublet,end the prwi:re.of assigning or a'blening in whole or in art is expreoy allowed,the expre and impl,t
ovenants hereof sublessees.ell extend to the sublessees.auceesn o and assigns or the parties:
and In the event of an assignment er subletting by see,lessee mall be relieved
ed a
changed Os to the leasehold eight,a weaned or sublet from any liability to fewer thereafter anal no upon any of the covenants or conditions of tlislms,either&pref on
Implied.No chant,in the ownership of the land,rentals or row&ies,however eccomoliohed.shall operate to enlace the obheat ens Or diminish the none of less&or moire
separate maauring or intonation of separate tanks by lessee.Notwithstanding any actual or constructive knowledge of Or notice to lone,no chance In the ownership of aid
land or of the right to receive rentals or royalties hereunder,er of any interest therein,whether by mean of death,conveleence or any then manor.tall be binding on Ins&
Incept at lessee's option in any particular creel until 90 deys after leas has been furnished written neuse thereof,end the au0mrtinp information herciniftm referred to,by
the arty claiming es o moult of such change in ownership or interest.Such notice toll be wowrtad Ov original or certified copies of all documents and other tnnlumm30r
procWJings necessary in ante's spin ion to aabl;N the Omen'itr Of the chiming any.If this lea is assigned or sublet insofar so it Covers only a part of the acreage
embraced in tins lased premises,the delay rentals hereinehove provided for Snell be apportioned to the separate pert,,ratably noordirg tote surface acreage of each,and
failure of 1M leasehold owner or Abram&of any separate part of the reeve described ands to make o rental payment with respect to such part shall in no event operate to
m•minaa or effect this a le insofar es IT coven any other part thereof.
Lessee may,at any time,execute end deliver to lemon or place of record a naew covering of Or shy port of the triage embraced In the leased premier or covering any
one or more Zen&formations or depths underlying ell or any pert of such treys,and Thereupon shall be rNnened of all obligations thereafter to accrue with newest to the
• a
ge,c no delay senora dfo or dogpihe Covered be snot relater.
eI Oe.I ncev event
of a reins,0f this lease ea to ell rights in only a pert of the aerate ember d in the Erased e,d promis
onromNoeately on an reraae basis.
testa shall ham the tight To unitize et or any par.Of the emvedescribed lend:with other lands in the same general area be entering'net a unit agreement setting forth
▪p.en of development or operation approved by the Secretary of the Interior,or other Officer or repreventot;ve of the United States hming ei harry to approve such unit
agreements.end,from tine to time,with like approval,To modify,change or terminate cry such agreement In any el such&an,to terms,condition and provisions of this
lase shell be deemed modified to conform to the tents,alWRi one end prevision Of Such tethered unit yament,end all drilling end development recuiomena of this
• lease&prest 0r implies,shall be satisfied by mmol lance with the t illinn and development rpuiremann of each ayment,end this lea tea net terminate or expire during
she life of such artembnt except as may be otherwise provided in said eereeant In the even that said above deserted lands,er any Dart thereof,shall hereafter be operated
.rear any woh omit ynament whereby the product on thanuIdle ie elltned no different portiere of tt lad&vpa by said agreement then the production allocated to
which
• pan
nier tact of land pursuers to such agreement shell,for the purpose of mmputi%royalties,he regarded a hexing ben produced from the particular Trct of land to
it Is elltteta end^On from any other tact of land and any royally Payments on such production to be made hereunder to Ins&shell be based solely upon the
B 1190 REC 02135600 03/25/88 12:54 $6.00 1/002
F 1126 NARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
8 1190 REC 02135600 03/25/88 12:54 $6.00 2/002
F 1127 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
;reduction m allocated.Nothing herein contained shin authorize or effect any transfer of any title to any Ninefold.royalty or other interest unitized pursuant hereto,
Lessee's execution of such unit agreement shell be binding sees both lessor end lease and their respective interacts.Lease,following such execution,shall furnish lessor with
a non of such unlit agreement by mail to'word Inn known address as shown by lessee's records and Yul:give lower written notice of approval of the sane in the some
manner within a mammals time after lame is notified of such approval
Lame shall have the right to use,free of Copt Oil,',send water prOdVCM On said land for la operations thereon except water from wells of lawn,Lessee shall hive the
right at any time to remove ell machinery and fixtures Placed on said premises,including the fight to drew and remove Geeing.No Part of the surface of the IaaN premises
• sel.,witness the written consent of:sari be let,granted or licensed by lessor no any other party for the location,construction or meintenente Of louttunes.tanks.Pion
reservoirs.equipment,or machinery to be used eor the purposeof exploring,developing or operating adlecent lands for oil.an or other minerals.
Lease shall bury below Plow depth its pipe lines on the leased premises when requested by 5 lemor Orating an must in the surface.No well Tell be drilled neater than
200 feet to any house or lam now on said premises without the n'rinen consent of the owner of the surface on which such house Se barn Is located.Leine shell pay for
damages to growing crops caused by its operations or said lends.
Lever hereby warrena end eras to defend the title to the lands herein described.but if the interet of lino covered On os511ase is expressly stated to be las than the
entire fee or mineral estate,lessor's warranty shell be limited to the intern so stated,Lessee may pus mean ce lease the r:ghta of any perry claiming any interest in said land
end eaeecise such rights as may be obtained thereby but lessee shell not suffer any forfeiture nor incur any liability to leans by reason thereof.Leine shall have the right at
eny time to say for leant,any mortgage/Mites or other lien en self]lands.in the wen of default of payment by:emq and be subgptec to the rights of the holder Naeof,
end and such peymena mode by lessee for lessor may be deducts from any amounts of money which may become due lessor under this lees,.
An express provisions as speed covenants el this lame shall be subject to all applicable laws,.governmental orders.ruins and nguleolor".This le:shall not be
terminated in whole or in part,nor lessee held liable in damages,because off temporary station of p sds.ctisn or of drilling operation due to breakdown of equipment or
due to she epeirine of a well Cr walls,or beoute of failure to oomply'uitn any of tie morta Provisions.?implied retsina ms Of this lean if such feihre is the molt of the
n of governmental authority,won,armed hart Ives,:ack of market,ate of Gad,strike,civil disturbance,fire,explosion.toad or any other cause reasonably beyond the
control+ l of loan.
This lease and all provisions thereof shall be applicable to and binding agn the parties end their rmoeothe successors and assigns.PC two*herein to laser and inset
shel.include reference t0 their respective successors and assigns.Should any one or more of the parties named abate as lessors not execute this base,it shall nevertheless be
binding apor the parry or oerties executing the same.
IN wiTNSSS WN3a SOF.this lease Is executed as of the day and year first boe written. )
I I L:µ^ )1\-)e OItNYI}�.`.
Michael D. Konig
SS# 522-21-04435
STATE OF Colorado
I,t ES. und'widu.l-calo edp_Oal,l
COUNTY.O weld
see, •
Pr,OI sh •dW o` February ,A.D.,19 88 ,personal y appeared before me MI rhael TI
4 gtja S tcTSgle man ,the signer_of the above instrument,
A?-d ppct Tai a.c Me —he_executed the-same.WITNESS my ha and official seal.^ •,
i7 +6Jtt !'
• 1'y c,N son aP6d-* J Notary Pus
cC �W�—/�\' LM Residing at: �;KO LQJ Cl e)
/0Hl%N- •
STATE OF I
S5. (Individual—Colorado—Utah)
COUNTY OF
I
On the day of I ,A.O.,19 ,personally appeared before me
•the signer_of the above instrument,
who duly acknowledged to me that.—ha—executed the tame.WITNESS my hand and official seal.
My commission expires: Notary PUM'
Residing at:
•
STATE OF I SS. leorvontion—Cdarede—Wahl
COUNTY OF
On the day of ,A.D.,19 ,pereoraay appeared before me
,who being by me duly sworn,did say that he is the
President of .a corporation,and
that said instrument was signed in behalf of said corporation by authority of a rnsolctior of its Board of Directors and said
acknowledged:to me that said corporation executed the same. �y
WITNESS my hand and official seal
My commission exP real _ Notary Public \O
Residing at: V
STATE OF II
COUNTY OF 1 55. (Corti/kite Recording] Gr.
CI o\
This instrument was filed-for record on the day of .19_at o'clock...—M �"S
and recorded in Bock at Page of the records of this office.
' BY
•
County Recorder DepoN
•
AFTER RECORDING.RETURN TO:_
CODY OIL&GAS CORPORATION
0. 0. BOX 597 _
BISMARCK, ND 5d5C2
8 1354 AEC 02/061129 10/14/92 10: 38 $10.00 1/002
AR4? 1 P 1532 mazy' ANN 1'EUERSTEIN CLERK 6 RECORDER WELD CO, CO
• NONCE PURSUANT TO C.R.S. SEC. 9-1 .5-103(11 AS AMENDED
CONCERNING UNDERGROUND FACILITIES OF
'Imam; T!LEPBONE ASSOCIATION
Pursuant to C.R.S. Sec. 9-1 .5-103( 1 ) as amended, Wiggins
Telephone Association hereby gives notice of the following infor-
mation:
1 . Wiggins Telephone Association owns and maintains under-
ground facilities within the County of Weld, State of Colorado,
for the purposes of transmission and distribution of telephone
communication services.
2. At the time of this filing, Wiggins Telephone Associa-
tion has underground facilities located within the following area
served, within said Weld County and State of Colorado, to wit:
Township 1 North in Range 61 West of the 6th P.M.
Township 2 North in Range 61 West of the 6th P.M.
Township 3 North in Range 61 West of the 6th P.M.
Township 5 North in Ranges 61 and 62 West of the
6th P.M.
Township 6 North in Ranges 61 , 62 and 63 West of
the 6th 'P.M.
Township 7 North in Ranges 57, 58, 59, 60, 61 , 62
and 63 West of the 6th P.M.
• Township 8 North in Ranges 57, 58, 59, 60, 61 , 62,
63, and 64 West of the 6th P.M.
Township 9 North in Ranges 57, 58, 59, 60, 61 , 62
and 63 West of the 6th P.M.
Township 10 North in Ranges 56, 57, 58, 59, 60,
61 , 62 and 63 West of the 6th P.M.
Township 11 North in Ranges 56, 57, 58, 59, 60,
61 , 62 and 63 West of the 6th P.M.
Township 12 North in Ranges 56, 57, 58 and 59
West of the 6th P.N.
3. Notice is given that the Wiggins Telephone Association
may place additional underground facilities in the future anywhere
within its general service area described in paragraph 2 above.
4. Anyone concerned with the location of the underground
facilities of the Wiggins Telephone Association within the County
of Weld, State of Colorado, may obtain necessary information
regarding the same from the following person or persons:
Name; Dwight E. Schmitt
Job Title: General Manager
Address: 414 Main
P.O. Box 248
Wiggins, CO 80654
Telephone Mo: ( 303) 483-7343
•
•
' 8 1354 SSC 02306829 10/14/92 10:38 $10.00 2/002
t 1532 NAST All tEtERSTEIN CLERK i RECORDER WELD CO, Co
• Notice is further given that in the event said individual is
no longer so employed or retained, contact should be made with
the individual who occupies that job title with the Wiggins Tele-
phone Association at the sass address and telephone number.
DAM as of this _8th day of October, 1992.
WIQ6INS TELEPHONE ASSOCIATION
By —
[aright S. Schmitt, General Manager
A.
it
�'i
c
9%
Geovic
Paid-Up
Energy Corp.
Paidd I IIII I I'I'I IIIIII IIIIII VIII VIII VIII III VIII IIII IIII
1p!.ease 3499927 08/27/2007 01:28P Weld County,CO
1 or 6 R 31.00 0 0.00 Steve Moreno Clerk&Recorder
• URANIUM and MINING LEASE
THIS LEASE is made and entered into on duly 23, 2007 by and between Michael
Konig,a married man dealing in his sole and separate property, 36679 WCR 110,
Brigasdale,CO 80611-9626 hereinafter called"Lessor" and Geovic Energy Corp., a
Colorado corporation, '743 Horizon Court, Suite 300A, Grand Junction CO 81506
hereinafter called"Lessee".
W ITNESSETH:
1. Interest Leased. For and in consideration of Ten or more dollars paid to
Lessor by Lessee, the receipt and sufficiency of which is hereby acknowledged by
Lessor,the royalty herein reserved,and the mutual covenants hereinafter set forth,Lessor
hereby grants, leases and lets exclusively unto Lessee, all uranium, vanadium, other
fissionable source materials,other spatially associated minerals,and all other minerals of
every kind and character whatsoever, together with all deposits thereof (which leased
minerals and mineral deposits are hereinafter called the "Subject Minerals"),except oil,
gas, and associated liquid hydrocarbons and coal in, on, and under the land described
herein together with all interest hereafter acquired by Lessor in such lands(which lands
are hereinafter called the "Land I.eascd"), and together with the right and privilege to
enter upon the Land Leased for the purpose of surveying,exploring,prospecting,drilling
for, developing, mining, stockpiling, removing, shipping, and marketing any of the
Subject Minerals to construct and use buildings, roads,power and communication lines
and other improvements reasonably required by Lessee for the full enjoyment of the Land
Leased, to use so much of the surface of the Land Leased in such manner as may be
reasonably necessary, convenient, or suitable for or incidental to any of the rights or
privileges of Lessee hereunder or otherwise reasonable necessary to effect the purpose of
the Lease,and together with easements in all rights of way for ingress and egress to and
from the Land Leased to which Lessor may be entitled:
• To the following described land situated in Weld County,State of Colorado.
To wit:
Township 10 North,Range 62 West of the 6th Principal Meridian,Colorado
Section 11:NW/4
Containing 160.00 acres,more or less
In addition to the lands described above,Lessor hereby grants,leases and lets exclusively
unto lessee, to the same extent as if specifically described, lands which are owned or
claimed by Lessor by one of the following reasons: (1)all lands and rights acquired or
retained by Lessor by avulsion,accretion,reliction or otherwise as the result of a change
in the boundaries or centerline of any river or stream traversing or adjoining the lands
described above: (2) all riparian lands and rights which arc or may be incident,
appurtenant, related or attributed to Lessor in any lake, reservoir, stream or river
traversing or adjoining the lands described above by virtue of Lessor's ownership of the
lands described above; (3) all lands included in any road, easement or right-of-way
traversing or adjoining the lands described above which arc or may he incident,
appurtenant, related or attributed to Lessor by virtue of Lessor's ownership of the lands
described above: and (4)all strips or tracts of land adjacent or contiguous to the lands
described above owned or acquired by Lessor through adverse possession or other similar
statutes of the state in which the lands are located. It is the specific intent of Lessor and
Lessee herein that Lessor hereby leases and lets unto Lessee under all of the provisions of
this lease all mineral interest Lessor owns together with any reversionary rights and after-
acquired interest in the sections described above, whether or not properly described
herein.
•
Page 1 of 6
Geovic Energy Corp. I IIIIII VIII III!till VIII III MIN IIII IIII
Paid-Up Lease 3199927 0g/p7/2007 g1:28P Weld County, CD
2 of 6 R 31.00 D 0.00 Steve Moreno Clerk 8 Recorder
• SUBJECT ONLY TO:existing leases,rights and encumbrances of record;
the right of Lessor to use, lease and convey the surface of the Lease Premises subject to
the right granted to Lessee hereby:and the right of Lessor to develop,explore.produce or
lease for development, exploration or production of oil, gas and associated liquid
hydrocarbons and coal in and under the Land Leased insofar as the same may be
developed, explored or produced without materially interfering with Lessee's operation
under the terms hereof.
2. Term of Lease. The term of this Lease shall commence on the first day of
the first entire month following the execution hereof and this Lease shall continue in full
force and effect for a term of ten years from such commencement date and so long
thereafter as any of the Subject Minerals are being mined, processed or marketed from
the Land Leased on a continuous basis. For this purpose mining,processing or marketing
operations shall be deemed continuous so long as such operations do not cease for a
period of more than 120 consecutive days. In the event Lessee is engaged in actual
development of a mine but has not yet obtained actual production of the Subject Minerals
at the end of the primary term,Lessee may pay or tender as royalty to the royalty owners
Three Dollars per year per net royalty acre retained hereunder,such payment or tender to
be made on or before the anniversary date of this lease during this period of development.
If such payment or tender is made, it will be considered that the Subject Minerals are
being produced within the meaning of this lease. Lessor grants to Lessee an option to
extend this lease for five years beyond the primary term hereof on all or a portion of the
Land Leased herein upon payment of a sum equal to two times the bonus consideration
per net mineral acre paid herewith.
3. Paid-Up Lease. This is a Paid-Up Uranium and Mining Lease. In
consideration of the down cash payment,Lessor agrees that Lessee shall not he obligated,
except as otherwise provided herein, to commence or continue any operations during the
primary term.
• 4. Royalties. The Lessee shall pay to the Lessor in accordance with
provisions of this Lease a royalty based on the value of Subject Minerals produced from
the Leased Land and thereafter sold from the Leased Land to a point of sale.The royalty
shall be based on the actual amount received by the Lessee from such a sale of the
Subject Minerals based on an arm's length transaction. If the sale of Subject Minerals is
not at arm's length,or should no such transaction occur,the Royalty shall be based on the
Subject Minerals value, based in the case of uranium on the average preceding three
months "Trade'lech Uranium Exchange Value (Monthly Spot)" prices, or a qualified
price quotation alternative for the Subject Minerals produced from the Leased Lands;and
in the case of all other minerals and metals, be based upon the average preceding three
months London Metals Exchange average price. For all subject minerals other than
Uranium, the royalty rate shall be 5.00%. In the case of a sale of Uranium (U3O8), the
Royalty Rate is set forth in the following schedule:
tJ1Os Price Per Pound Royalty Rate
Less than$40.00 4.00%
$ 40.00 or more,but less than $60.00 5.00%
$ 60.00 or more,but less than $80.00 6.00%
$ 80.00 or more,but less than$100.00 7.00%
$100.00 or more,but less than$120.00 8.00%
$120.00 of more,but less than$140.00 9.00%
$140.00 or more 10.00%
The number of recoverable pounds of uranium oxide(U3O8)and related substances shall
be computed by standard industry sampling and analytical practices. The mineral content
of the ores,solutions or products derived from the Subject Minerals shall be determined
by the Lessee,and the Lessor(or assigned representative) shall have the right to request
at Lessor's expense, the taking of a representative sample at the time of this sampling of
the respective ores,minerals and products occurs.
•
Page 2 of 6
Geovic Energy Corp. 11111111111111111111111111111111111111111!11111111111
Paid-Up Lease 3499927 08127/2007 01:28P Weld County,CO
P 3 of 6 R 31.00 D 0.00 Steve Moreno Clerk 8 Recorder
at Lessor's expense, the taking of a representative sample at the time of this sampling of
• the respective ores,minerals and products occurs.
5. Unitization. Lessee shall have the right to unitize,pool,or combine all or
any part of the Land Leased with other lands in the same general area, whether owned,
leased or controlled by Lessee or others, by entering into a cooperative or unit plan of
development or operation and, from time to time, changing, modifying, or terminating
any such plan or agreement;provided the Lands so pooled or unitized shall include both
lands underlain by the delineated ore body from which production attributable to the
pooled area is anticipated to occur and sufficient acreage surrounding the lands underlain
by the delineated ore body which in Lessee's sole opinion is necessary and appropriate to
support and protect Lessee's activities authorized by the Lease. Production of subject
minerals on any portion of the lands included in such a cooperative or unit plan shall be
considered for all purposes of the Lease as production of the Subject Minerals from the
Land Leased. Further,production of Subject Minerals shall include all operations of the
pooled area involving preparation to mine, mill, process or beneficiate the Subject
Minerals, including but not limited to the sinking of shafts, the commencement of
construction of a milling plant, the drilling of either an in situ production well or an
injection well, or the commencement of construction of either a pilot or commercial in
situ processing plant, which activities shall be deemed production of Subject Minerals;
notwithstanding the fact that there is no actual production of yellowcake in the pooled
area. Ilowever,in any situation covered by the preceding two sentences when no actual
production for which royalties are due hereunder is occurring on the Land Leased, the
Lease shall be deemed in effect during and beyond the primary term only if the payments
made as provided for in Section 2 of this agreement are made. This Lease shall not
terminate during the life of production under such cooperative or unit plan. In the event
Lessee enters into such cooperative or unit plan of development or operation,there shall
not he any further modification of the royalty provisions of this Lease. Lessor shall only
receive production royalty payments for sales of uranium production occurring on the
Land Leased. Lessor has no right to any production royalty payments by reason of the
• sale or uranium produced from other land in such a unit or pool. Lessee shall file a
written cooperative or unit plan or memorandum thereof for record in the county in which
such cooperative or unit plan is located.
6. Operations. Lessee agrees to conduct and maintain operations in a good
and workmanlike manner.
7. Surface Damage. If Lessor owns or leases the surface of the Leased Land,
the parties will enter into a Surface Agreement of same date and term herewith covering
payments that will be made by Lessee to Lessor for damage to the Leased Land caused
by Lessee's Operations. If Lessor does not own or lease the surface of the Leased Land,
Lessee will enter into an appropriate Surface Agreement with such owner with respect to
damages caused by Lessee's Operations.
8. Lesser interest. In the event Lessor owns an interest in the Subject
Minerals which is less than the entire and undivided mineral estate therein,whether or
not such lesser mineral interest is referred to herein,then the royalties and delay rentals
herein provided for shall he paid to Lessor only in the proportion that Lessor's interest
therein hears to the whole and undivided mineral estate. Lessor shall be entitled to retain
only such proportion of the moneys previously paid to Lessor hereunder as Lessor's said
interest bears to the whole and undivided mineral estate, and Lessee shall be entitled to
offset all other moneys previously paid Lessor hereunder against royalties and delay
rentals which thereafter becomes due and payable to Lessor hereunder. This paragraph
shall apply with equal force and effect to reduce payments pursuant to paragraph II
herein when Lessor owns a lesser interest in the surface estate than the entire and
undivided fee simple interest therein. Notwithstanding any other provisions of the lease,
with respect to that portion, if any of the Land Leased in which Lessor owns no right,
title,or interest in the Subject Minerals,Lessee is under no obligation to pay and Lessor
has no right to receive,delay rentals or royalty production.
•
Page 3 of 6
Geovie Energy Corp.
Paid-Up Lease !IIII1I 11111 1111111111111111 11111 111 III III1I INI IIII
3499927 08/27/2007 01:28P Weld County,CO
• 0 of 6 R 31.00 0 0.00 Steve Moreno Clerk 8 Recorder
9. Warranty. Lessor hereby warrants and agrees to defend the title to the
Land Leased, and agrees that Lessee, at its option, may pay and discharge any taxes,
mortgages,or other liens existing,levied or assessed on or against the Land Leased;may
be subrogated to the rights of any holder or holders thereof; and may reimburse itself for
any such expenditures out of any royalty or rental thereafter accruing to Lessor or by
enforcement of subrogated rights against Lessor in any court of competent jurisdiction.
10. Exploration and Mining Operations. The Lessee may use and employ
methods of exploration and mining as it may desire or find most profitable and
economical and may, when it deems it necessary or desirable, discontinue operations
entirely so long as it shall well and truly meet its obligations hereunder to pay rental and
royalty due, if any; provided that Lessee shall not be required to mine, preserve, or
protect in its mining operations any Subject minerals which under good mining practices
cannot be mined or shipped at a profit to the Lessee at the time encountered. Lessee shall
have the right and privilege at any time, during the term of this Lease and so long
thereafter as it may hold an interest in the minerals hereunder to use any and al!roads or
workings located at any time on or under the Land Leased and Lessee shall have the
further right of mixing,either underground or at the surface or processing plant,any ores,
solutions or other products (herein called "Products") containing Subject Minerals and
produced from the Land Leased or any portion thereof with Products from any other
lands, provided that the mixing is accomplished only after the Products have been
sampled and after the weight or volume thereof has been determined or ascertained by
sound engineering principles. An accurate record of the tonnage or volume of Products
and of the analysis of products from each property going into such mixture shall be kept
and made available to Lessor at all reasonable times. Lessor must give Lessee, its
successors & assigns written notice of such request and agree to hold all information
provided by Lessee confidential. The tonnage or volume of Products from each property,
• together with analysis thereof, shall be used as the basis of the allocation between the
properties of production royalties paid from such Products.
11. Assignment. The estate of either party may be assigned in whole or in
part; provided that no change in the ownership of the Land Leased or assignment of
royalties payable hereunder shall be binding upon Lessee until Lessee has been furnished
with a recorded transfer or assignment or a certified copy thereof. In the event this
Mining Lease shall be assigned as to a part or parts of the Land Leased and the lessee,or
assignee or assignees of any part or parts,shall fail or make default in the payment of the
proportionate part of the royalties due from him or them or otherwise breach any
covenants contained herein, such default shall not operate to defeat or affect this lease
insofar as it covers any other part or parts of the Land Leased. An assignment of this
Lease shall, to the extent of such assignment, relieve and discharge the Lessee of all
obligation hereunder which have not theretofore become due.
12. Inspection. Lessor or its duly appointed representative shall have the
right,exercisable at all reasonable times and in a reasonable manner so as not to interfere
with the Lessee's operations, to go upon the Land Leased, or any part thereof, for the
purpose of inspecting the workings thereon. Lessor shall hold Lessee harmless from all
claims for damages arising out of any death, personal injury, or property damage
sustained by Lessor or Lessor's agents or servants while in or upon the Land Leased as
herein permitted,unless such death or injury arises as a result of negligence of the lessee.
13. Multiple Lessors. Whenever four or more parties are entitled to received
delay rentals or royalties hereunder, Lessee may withhold payment thereof unless and
until all such parties designate in a recordable instrument an agent empowered to receive
all rental or royalty payment due hereunder and to execute division and transfer orders on
behalf of said parties and their respective successors in title.
•
Page 4 of 6
Geovic Energy Corp.
Paid-Up Lease
I IIIIII HIP IlIII IIIII III'II!l lilt IIII
• gars,
6 R 31.00 D 0.O0:Stev More ooC erk ao Recorder
14. Taxes. Lessor agrees to pay all general ad valorem taxes and assessments
against the Land Leased and all taxes resulting from the Lessor's use thereof; provided
that lessee shall pay for that portion of such taxes which is attributable to any producing
mine opened and operated on the Land Leased by Lessee, less the part thereof
attributable to Lessor's royalty interest therein. Lessee shall pay all other lawful public
taxes and assessments,whether general, specific or otherwise,assessed and levied upon
or against the Land Leased attributable to Lessee's operations,or upon any ores or other
products thereof, or upon any property or improvements placed by Lessee on the Land
Leased;provided that if any tax is now or hereafter levied on or measured by production,
Lessor shall pay that portion of such taxes which is attributable to the royalty reserved
herein. Lessee shall have the right in good faith to contest any of the above taxes,
whether payable by Lessee or payable by Lessor,but shall not permit or stiffer the Land
Leased or any part thereof,or any ore mined thereon, or any improvements or personal
property thereon to be sold at any time for such taxes or assessments.
15. Default, Force Majeure, Termination. If at any time Lessee shall be in
default in the performance of the terms an conditions of the Lease to be performed by it,
provided such default is not caused by casualties, strikes, legislation, public regulations,
storms,floods,acts of God,civil or military disorders, insurrection,riots,fires, accident,
explosion, or other causes beyond the control of Lessee, and if within 90 days after
written notice of such default is giver, by lessor to Lessee, Lessee has not commenced
activities which will cure the default if pursued diligently,then Lessor may terminate this
Lease by notice to Lessee;provided that,for any default in the payment of money,Lessor
may terminate this lease if such default is not cured within 30 days after such written
notice of default. Any notice contemplated to be given herein shall be sufficiently given
if mailed in the United States Post Office, postage prepaid, and certified, if to Lessee
• addressed to Lessee at Lessee's address shown above, and if to Lessor addressed to
Lessor at Lessor's address shown above,or at such other address as my be designated by
the respective parties in writing. If this Lease is surrendered or terminated for any cause,
Lessee shall have one year after the effective date of such surrender or termination in
which to remove all engines,tools,machinery,building, structures,headframes,trailers,
or stockpiles and all other property of every nature and description erected, placed or
situated on the Land Leased by it. Upon such termination Lessee shall close off and plug
any open drill hole or shaft to such extent that such drill hole or shaft shall not thereafter
be a hazard to person or livestock using the surface of the Land Leased.
16. Further Documents. At the request and expense of Lessee, Lessor shall
deliver to Lessee for the purpose of copying the same,any documents,abstracts,policies
or other information relating to the Land Leased or lessee's operations hereunder, and
shall execute and deliver to Lessee any instructions, agreements, documents, or other
papers reasonably required by Lessee to effect the purpose of this Lease. Lessor shall at
all times cooperate with Lessee in any reasonable way to assist Lessee in the effecting of
the purpose of this Lease.
17. Surrender. Lessee may at any time execute and deliver to Lessor,or place
of record,a release or releases covering all or any portion or portions of the Land Leased
and thereby surrender this lease as to all or such portion or portions and, from and after
the date of such release, thereby terminate all obligations, including a proportionate
amount of delay rentals, as to acreage surrendered except obligations accrued as of the
day of the surrender.
18. Dispute. In case of dispute or question of ownership of any uranium
deposit, Lessee may suspend payments due on the disputed interest and,if the interest is
the subject of litigation, Lessee may pay into a court of competent jurisdiction all
royalties payable on account of production and sale from such uranium deposit until
ownership is determined by such court.
•
Page 5 of 6
Geovic Energy Corp.
Paid-Up Lease
111111111111111111111111111111111111111 II!III11 lll!1111
• 3499927 CD
r R 31.00 9D0.00 01:28P
Steveeld oreno Clerk&Recorder
19. Binding Effect. Should any one or more of the parties named as Lessor
herein fail to execute this Lease, it shall nevertheless be binding upon all such parties
who do execute it as Lessor. The word "Lessor,"as used in this Lease, shall mean any
one or more or all of the parties who execute this Lease as Lessor. All the provisions of
this Lease shall be binding on the heirs,successors and assigns of Lessor and Lessee.
IN WITNESS WHEREOF,the parties hereto have set their hands and seals as of the day
and year first above written.
LESSOR
"
LE�..�rr
Michael K
State of (lb rg10 ) ACKNOWLEDGMENT
ss
County of Idea
The foregoing instrument was acknowledge. •--,;•:"f e this 20 day of
,20 by �yCE KRISF s•
�
• Y''•� `,
pR
Michael Konig •
• •O�
Q:2
•
Witness my hand and official seal. 't `CJ`(J oT6
'1,4 ST p....9i '
--OP
-- Notary Pu lie
My commission expires on: 9-.5-07
STATE OF COLORADO §
§ ss Corporate Acknowledgment
COUNTY OF_ §
The foregoing instrument was acknowledged before me this day of
,2007,by_ ,as President,
and ,as Vice President/Secretary of
_ Inc.,a corporation,on
behalf of the corporation.
Witness my hand and official seal.
Notary Public
Print Name above
My Commission Expires:
Residing at:
•
Page 6 of 6x > CAL.
C La - si t7
111111111111111111111111111111111111111 I I 1111111111 I I I!
PR0DUCERSBSPAo-uP'NU 3599290 01/13/2009 11:58A Weld County,CO
PENG Rev.5rm.Ne.2(22/04) 1 of 2 R 11.00 0 0.00 Steve Moreno Clerk d Recorder
OIL AND GAS LEASE
290
• THIS AGREEMENT, Made and entered into the ._30 _. day of October _, 2008, by and between
Michael U.Konip,a married man dealing in his sole and separate property ,whose address is 57851 WCR 81.Grover,
CO 80729 ,hereinafter called Lessor(whether one or more)and Transcontinent Oil Company whose address is 62117s St.Suite
1555.Denver,CO 90293 ,hereinafter called Lessee:
WITNESSETH,That the Lessor,for and in consideration of ten and more dollars($10.00+)cash in hand paid,the receipt of which is hereby
acknowledged,and the covenants and agreements hereinafter contained,has granted,demised,leased and let,and by these presents does grant,
demise,lease and let exclusively unto the said Lessee,the land iete:natter described,with the exclusive right for the purpose of mining,exploring by
geophysical and other methods,and operating for and producing therefrom oil and all gas of whatsoever nature or kind,with rights of way and easements
for surveying and resurveying,constructing,laying,repairing,replacing,upgrading and removing in whole or in part,pipelines and related equipment
including,withal limitation,gauges,metering and communication equipment and valve sets,anc access over and across the lands described for said
purposes,laying pipelines,and erection of any other structures thereon necessary or convenient to produce,save and lake care of said products,all that
certain tract of land situated in the County of Weld,State of Colorado,described as fellows,to-wit:
Township 10 North,Range 62 West,6th P.M.
Section 10:N/2,SW/4
Section 11:NW/4
Section 15:6/2NW/4,SW14,S/2SE/4
and containing 966.00 acres,more or less.
Lessor also intends to include in this lease and to!ease to Lessee any right,title and interest Lessor may have in and to any and all mineral rights on,in
and under any and all streets,county roads,highways,railroad strips and/or any and all other easements and rights of way whatsoever,canals,ditches
and any other waterways lying across and/or adjacent and/or'.n any way appertaining to the lands hereinabove described,including,without imitation,any
lands acquired previously or in the future by adverse possession and by accretion through meander of waterways or any recession of shoreline.
1. It is agreed that this lease shall remain'n force for a term of 5 years from this date and as long thereafter as cil or gas of
whatsoever nature or kind is produced from said leased premises or on acreage pooled therewith,or drilling operations are continued as hereinafter
provided. If,at the expiration of the primary term of this lease,oil or gas is not being produced on the leased premises or on acreage pooled therewith but
Lessee is then engaged in drilling or re-working operations thereon,then this lease shall continue in force so long as operations are being continuously
prosecuted on the leased premises or on acreage pooled therewith;and operations shall be considered to be continuously prosecuted if no:more than
ninety(90;days shall elapse between the completion or abandonment of one wel.and the beginnirg of operations for the drilling of a subsequent well. If
after discovery of oil or gas on said land or on acreage pooled therewith,the production thereof should cease from any cause after the primary term,this
'ease shall not terminate if Lessee commences additional drilling or re-working operations within ninety(90)days from date of cessation of production or
from date of completion of dry hole. If oil or gas shall be discovered and produced as a result of such operations at or after the expiration of he primary
term of this lease,this lease shall continue in force so long as o l or gas is produced from the leased premises or on acreage pooled therewith.
• 2. This is a PAID-UP LEASE. In consideration of the down cash payment,Lessor agrees that Lessee shall not be obligated,except as
otherwise provided herein,to commence or continue any operations during the primary term. Lessee may at any time or times during or after the primary
term surrender this ease as to all or any portion of said land and as to any strata or stratum by delivenng to Lessor or by filing for record a release or
releases,and be relieved of all obligation thereafter accruing as to the acreage surrendered.
3. In consideration of the premises the said Lessee covenants anc agrees.
1st. To pay Lessor,as royalty,one-eighth(1/84)of all oil produced,saved and marketed from the leased premises,or to deliver to the
credit of Lessor,free of cost,in the pipeline to which Lessee may connect wells on said land,one-eighth(118)°)part of all oil produced and saved from
the leased premises.
2nd. To pay to Lessor,as royalty,one-eighth(1/8th)of the market value for gas of whatsoever nature or kind,liquid hydrocarbons and their
respective constituent elements,casinghead gas or other gaseous substances,produced from the leased premises.The term"market value"shall be
deemed to mean the net value realized at the wellhead for gas after deducting any gas used on the leased premises and any reasonable and
necessary costs to transport,compress,dehydrate,gather,process,condition or to otherwise bring the gas into a marketable condition. It is agreed,
however,that no such costs shall exceed what is reasonable and necessary to bring the gas into marketabe condition Such costs shall be deemed lc
be reasonable if they are found to be approximately the same as similar costs charged or paid for gas produced in the vicinity of the leased lands of
like kind,quality and quantity.
4 Where gas from a well capable cf producing gas is not sold or used,Lessee may pay or tender as royalty to the royalty owners one
dollar(31.00)per year per net mineral acre covered by th'.s lease,such payment or tender to be made on or before the anniversary date of this lease next
ensuing after the expiration of ninety(90)days from the date such well is shut in and thereafter on or before the anniversary date of this lease during the
period such well is shut in. If such payment or tender is made,it will be considered that gas is being produced within the meaning of the lease.
5. If said Lessor owns a less interest in the above-described land than the entire and undivided fee simple estate therein,then the
royalties(includ'.ng any shut-in gas royally)herein provided for shalt be paid the Lessor only in the proportion which Lessor's interest bears to the whole
and undivided fee.
6. Lessee shall have he right to use,free of cost,gas,oil and water produced on said land for Lessee's operation thereon,except water
from the wells of Lessor.
7. When requested by Lessor,Lessee shall bury Lessee's pipeline below plow depth.
8. No well shall be drilled nearer than 200 feel to the house or barn now on said premises without written consent of Lessor.
9. Lessee shall pay for damages caused by Lessee's operations to growing crops on said land.
10. Lessee shall have the right at any time to remove all machinery and fixtures placed on said premises,including the right to draw
and remove casing.
• 11. The rights of Lessor and Lessee hereunder may be assigned in whole cr part. No change in ownership of Lessor's interest(by
assignment or otherwise)shall be binding on Lessee until Lessee has been furnished with notice,consisting of certified copies of all recorded instruments
Page I of yy
or documents and other information necessary to establish a complete chain of record title from Lessor,and then only with respecttc payments thereafter
made. No other kind of notice,whether actual or constructive,shall be binding on_essee. No present or future division of Lessor's ownership as to
different portions or parcels of said land shall operate to enlarge the obligations or diminish the rights of Lessee,and all Lessee's operations may be
conducted without regard to any such division. If all or any part of this lease is assigned,no leasehold owner shall be liable for any act or omission of any
other leasehold owner.
• 12. Lessee,at its option,is hereby given the right and power at any time and from time to time as a recurring right,either before or after
production,as to all crony part of the land descr:bed herein and as to any one or more of the formations hereunder,to pool or unitize theleasehold estate
and the mineral estate covered by this lease with other land,lease or leases in the immediate vicinity for the production of oil and gas,orseparately for the
production of either,when in Lessee's judgment it is necessary or advisable to do so,and irrespective of whether authority similar to this exists with
respect to such other land,lease or leases. Likewise,units previously formed to include formations not producing oil or gas may be reformed to exclude
such non-producing formations.The forming or reforming of any unit shall be accomplished by Lessee executing and filing of record a declaration of such
unitization or reformation,which declaration shall describe the unit.Any unit may include land upon which a well has theretofore been completed or upon
which operations for driling have theretofore been commenced. Production,drilling or reworking operations or a well shut in for want of a market
anywhere on a unit which includes all or a part of this lease shall be treated as if it were production,drilling or reworking operations or a well shut in fcr
want of a market under this lease. In lieu of the royalties elsewhere herein specified,including shut-in gas royalties,Lessor shall receive on production
from the unit so pooled royalties only on the portion of such production allocated to this lease;such allocation shall be that proportion of the unit production
that the total number of surface acres covered by this lease and included in the unit bears to the total number of surface acres in such unit.
13. All express or implied covenants of this lease shall be subject to all Federal and State Laws,Executive Orders,Rules or Regulations,
and this lease shall not be terminated,in whole or in part,nor Lessee held liable in damages,for failure to comply therewith,if compliance is prevented by,
or if such failure is the result of,any such Law,Order,Rule or Regulation.
14. If Lessee shall fail to pay any royalty,rental or other payment when due,and if such default shall continue for a period of fifteen(15)
days after receipt by Lessee of written notice thereof from Lessor,then at the option of Lessor,Lessor may terminate this lease as to those lands as to
which Lessee is in default;provided,however,that if there be a bona fide dispute as to the amount due and all undisputed amounts are paid,said fifteen
(15)day period shall be extended unlit five(5)days after such dispute is settled by that court decree,arbitration or agreement. I`Lessee shall be in
default in the performance of any of its obligations under this lease other tan the payment of rentals,royalties or other payments,and if,for a period of
ninety(90)days after receipt by Lessee of written notice therect from Lessor,Lessee shall fail to commence and thereafter diligently and in good faith to
prosecute the remedy of such default,Lessor may terminate this lease as to those lands which Lessee is in default.
15. Lessor hereby warrants and agrees to defend the tile to the lands herein described,and agrees that the Lessee snail have the right al
any time to redeem for Lessor,by payment,any mortgages,taxes or other liens on the above-described lands,in the event of default of payment by
Lessor and be subragated to the rights of the holder thereof,and the undersigned Lessors,for themselves and their heirs,successors and assigns,hereby
surrender and release all right of dower and homestead in the premises described herein,insofar as said right of dower and homestead may in any way
affect the purposes for which this lease is made,as recited herein.
16. Should any one or more of the parties hereinabove named as Lessor fail to execute this lease,it shall nevertheless be bending upon all
such parties who do execute it as Lessor. The word'Lessor,'as used in this lease,shall mean any one or more or all of the parties who execute this lease
as Lessor. All the provisions of this lease she'inure to the benefit of and be binding on the personal representatives,heirs,successors and assigns cf
Lessor and_essee.
• are,e enan pun being
lained-herM-Lessee m
IDR wIW-WapayteeMo'aarsaeurNegaaFtatgeemgaal�Fasr+eFakeadyheltl u++tar-ontt;rtermso`llu;✓easeauFbameumt 40iag
expsatieaofthe-pry paragFarati-1—Such-payment-shanbe
considered tondos"byhr..."e roe receivedby--Esser,whea4epested,pestage-paioin-the United-Stateawailreravid+a-natienally eg nier
sewica
IN WITNESS WHEREOF,this instrument is executed as of the date first above written.
Michael 0.Konp 1 IIII!!IIIII Milli 01 III Hill IIIII III Ill 1101 1001
3699290 01/13/2009 11:58A Weld County,CO
2 of 2 R 11.00 D 0.00 Steve Moreno Clerk 8 Recorder
STATE OF COLORADO § (INDIVIDUAL ACKNOWLEDGMENT)
§
COUNTY OF WELD §
The foregoing instrument was acknowledged before me this 7 day of November ,2008,by
Michael 0.Konia a married man dealing in his sole and separate property known to me,and who acknowledged that he or she executed the
foregoing instrument as his or her free and voluntary act and deed for the uses and purposes therein set forth.
IN WITNESS WHEREOF,I have hereunto set my hand and affixed my notarial seal the day and year last above written.
My Commission Expires: aGrN,yO /l _ 4
(seal) Notary Public:Tom Glen non••
•
Address:1900 E.Girard PL,700,Englewood,CO 80113
0;,..A48LNG'00
OF GOl "
• My Commission Eccles 01/072011 After recording,please return to:
The Sapphire Company
1619 Hemlock Way
Page 2 of 1b). Broomfield,CO 80020
Pmchoweae �..: PAID-UP Rocky mountain ten
P i'-uv" 198°I
0-a OW AND GAS LEASE
. THIS AGREEMENT.made and entered into mils 8 day of Februar 2008 by and between
- GREEN VALLEY RANCH,INC.,a Wyoming corporation
ct _ P.O.Box 638,Wheatland,WY 82201 hereinafter ceded lessor(whether one or more),and
Exterra Resources,LLC. whose address is 4928 Rlvelwind Pointe Drive,Suite 103.Evansville,IN 477154753 rereinaner cried lessee
WITHESSETts
1.That lesser,for and'in consideration of TEN AND MORE dollars(5 10.00+ _i in hand paidh receipt of
which is hereby arkar:Wedged.and 05 the agreements of lessee hereinafter set forth,hereby grants,dem,ees Oases and lets eacluswely unto lessee the lards deserted
below for the purpose of inveetgatng,prospecting,explomg(by geophysical and other methods) darling.winey Operating for and producing oil or gas,or both(as defined
below)together with the right to construct and remora pipelines,teephone and electric lines.lanks,ponds,roadways.plants equipment,and structures thereon to Deduce.
save and take care of said oil and gas(which right shall include specifiically a right-of-way and eesenrlenl for ingress to and egress from said lands by lessee or Its assignees,
agents or permreees,necessary 10 or associated wren Ilea conelruction and mainlenanee of such pipelines.telephone and electric lines,tanks,ponds,roadways,plants,
equipment and squares on said lands to produce save and take care of the our and gas),and the exclusive right to inject air,gas.water,brine and other fluids torn any
source into the subsurface strata and any and all other rights and a'Ivileges necessary,incident to,or convenient for the economical operation of said lan&alone or conjointly
with neignboning land,for the production eevi'rg one taking pre of oil and gas and me'median of an gag.water,brine,and other fluids into the subsurface strata,said lands
being seated in the County of _ Weld _ State of Colorado described as fellows.to-wit.
SEE EXHIBIT"A"Al'I ACHED HERETO AND MADE APART HEREOF
11111111111111111 ME l l I VII 111111111111M1111 3 111
3616017 04/10/2009 01:26P Weld County, CO
1 of 3 R 16.00 0 0.00 Steve Moreno Clerk&Recorder
and containing 7,480,00 acres,more or less
In addition to the lane descnbed above lessor hereby grants,leases and lets exclusively unto lessee,to the same extent as if specifically described,lands which
are owned or claimed by lesser Cy one of the following reasons.(11 all lands and nghfs acquired or retained by lessor by avulsion.ecc'etim.relrction or otherwise as the result
of a change in the boundaries or centerline or any river or Stream Taveming or adjoining the lens described above,t2)all dpanan lands and rights which are or may be
• beldam,appurtenant related or attributed 10 lesser In any lake,stream or river traversing Or adjoining the lands described above by"de of lessIX'0 ownership of the lend
descnbed above,(3)all lands included in any road easement or right-of-way traversing or adjoining the ands described above which are of may be inctoent.appurtenant,
related or altnbuted to lessor by virtue of lessors ownership of the land described above,and(4)ad slops or tracts of land adjacent on Contiguous lo the lands descried
above owned or acquired by lesser though adverse possession or other similar statutes of the state In welch the lands are located
The term oil as used in this lease shall be interpreted to incude any liquid hydrocarbon substances which occur naturally in the earth,incuding drip gasoline of
other natural condensate recovered from gee w thout resort to manuhcluring process The term gas as used in this lease shall be interpreted to include any substance,eerie'
combustible or noncombustible,winch is produced in a natural state from the earth and which maintains a gaseous or ranfied state at ordinary temperature and pressure
conditions,including but not limited to belvm,crlrepen,carbon d:oxitle,hydrogen sulphide,coal bed methane gas,cawnghead gas and sulphur
Subject to the ether provisions herein contained this lease shall remain in force for a term of Five 15) years from 8,8.82:88-y;8,2008 (herein
and as long thereafter es oil and gas,or either of them s produced from the leased premises or dolling operations are continuously prosecuted For purposes of this lease.a
well completed for the p'oduchos M eoelber)methane gas shall be deemed to be producing gas under this lease at all bees when dewalering of the coal seams from which
me welbed methane gas will be produced is occurring For purposes of leis lease,'drilling operations'shall include operations for the drilling of a new well and operations for
the reworking,deepening or plugging back of a well or hole or other Operabons conducted Or an erten to establish,resume or re-establish production of cal and gas,drilling
°pe'6tions shall be cask-feral 10 be'continuously prosecuted'I not ms's than aria huhored hearty(120)days shall elapse between the completion and abandonment of one
wail or hole and the commencement of tiling operations on another well or hole Mang operators shall be deemed to he commenUN for a new wee at such time as lessee
has begun the conslructisn of the wellate location or the road which provides access 10the wellsite Ipcatoni and drilling operations shall be deemed to be commenced with
respect to reworking.deepening,Nagging tack or other operations conducted in en elan to resume of re-establish production of of and gas at such time as lessee has the
requisite equipment for such Cperabonb at the wellsite
2.The lessee shall deliver to tee Credit on the mssor as royalty,free of cost do the tanks cr in the pipe line on the leased premises to wnreh lessee may connect
its wells the equal one-eighth(1/8)part of all oil produced and saved from the loaned premises,or lessee may from time to time at its option purchase cry royally oil In its
possessor.paying the market price thereof prevailing for oil of like grade and gravity in the field where produced or the date of purchase
The lessee shall pay leaser as rays ty.on gas,including caseyhead gas or other gaseous substances,produced from the leased premises and sod or used on
the premises of used in the manufacture of gasoline or other products.the market value at the well of one-eighth(I!&of the gas sold or used,provided that on ges sold the
royalty shall be ore-eighth(1/8)of the amount realiuec from such sale The amount realized from the sale of gas shall be the price established by the Sus sales contract
entered nIo in good faith by lessee and a gas purchaser for such term and under suet conditions as are customary in the industry Price shall mean the net amount roceived
by lessee aver giving effect to applicableregulatory niters and after application of any applicable pica adjustments stoned In sun conlre 1 or regulatory orders in the
event lessee compresses.treats,purifies or dehydrates soot gas(whether on or of the leased premises)or transports gas off the eased premises.lessee in mmputng
royalty hereunder may deduct from such price a reasonabe Charge for each of such tunco ens performed,including associated fuel
3 This is a paid-up lease and all cash consideration frit,eecIted above and annual rentals have been paid to lesser in advance to keep this lease in lull force and
effect throngflout the primary twin.In consideration of'he payment o'such cash consideration and advance annual rent",lessor agrees that lessee shall not be obligated.
except as otherwise provided herein.to commence or continue soy operation during the pinery tern.Lessee may at any time or times during or aver the primary term
surrender fins reale as to ail oe any',omen of the land described above,and as to any strata or stratum,by delivering to lessor or by filing oh record a releeee or releases and
be relayed of all oblige+ions thereafter accruing to the acreage surrendered
-S 4 Any parents refaced to be made to lessors pursuant to this lease,Other than the payment of royalties,may be pad by lesseelo the lessor or to lesson credit
in the Back.at (or its
successor or 9uccassOrs.Or any bank win winch it may be merged or consolidated,or which succeeds 10 its business assets on any part threat by purchase or orery/mel tS
r0 which shall continue as me depository regardless of changes In the ownership of said lard or the oil and gas.All such payments may be made by cash,check or draft.mike
, or delivered on or before the due dale for that payment.Any payments so made Shea be binding on the hen r.s. devisees. executors admrnishstors.and personal A3
r represe'itaties of lessor and on user's successors in interest or on lessor's assigns l)3
t' 5.If,at the expiration of the plenary term of this lease.Oil or gas IS not being produced from the leased premises but lessee Is Men engaged in drilNO operations, O
I9).. lain tease Snail Continue in force so long as drilling operations are Con11n000sh'prosecuted and if production of oil or gas results from any such doff no operators.this lease
NMI continue in fete so Ong as of or gas shall be produced from the leased premises.tl,after the expiration 0f the primacy term of 0a lease,pmcudlon on the leased
7,4 premises should Cease for any cause,this lease shall not someone rf lessee is then engaged in ds;ing operations,or within one hundred twenty(120)days after each such p t
cessation of production commences or resumes drilling operations,and this lease snail remain in force so long as Mang Operations are continuously prosecuted and i'
production results therefrom.then as long thereafter as Oil Or gas is produced from the leased premises.
a 6.-fat any tine,ether before or after the expiration of the primary!em,of this lease there r5 a well capable of producing NI or gas on lands covered by this lease. /I
(1 or on other lands with which lands covered by this lease are pooled Or unitized,dui the well IS phutrtes whether before Or ahtr production therefrom,ant this lease Is not being U
• t� maintained otherotse as provided herein,thus lease shell not terminate(unless released by lessee)and it LIee nevertheless be considered bet cal Or gas IS being produced D
from lands covered Oy mis lease donna all times woe the we N,i9 s0 ehN+n.deelee snail use reasonable diligence no market Ae ee Or gas capable of berg produced home
such shut-in well,but shell be under no obligation to mantel the Oil Or gas under tens,tender ons or circumstances which,in lessee's judgment exercised in good faith,are
unsarinactay When the lease:s continued in force in this marts.lessee Gnaw pay or to the lessor or lessor's ant dale. Or ,an amount equal to$1.00 pen
yC&per net mine rat rule covered by the lease Sueh payments shall be made On on before the shut-in royalty payment dale,as defined below next l awning after the
ea maintained
of one hundred twenty(1201 nays from Me date the well wan shut-in.unless prig to such date of or gas from the well a wed of used or the lease is otherwise
maintained as provided nerellt In like manner, or before each succeeding shut-in MMya:ly payment date while such well remains shut-in,shot-in
r shall mare payment of shd:-
In royally Cash, in the same amount and manner The ter fore le-in royalty payment dale"and mean the anoversa'y date of this lease Any dedl-in royally payment may be made
by Cash,draft or check,mailed or tendered oteto ore the shuti n royalty dal¢.LesiggB9 pay tender of properly pay or tender.any such sum roan render lessee
labia tot the amount due but nshau not terminate Operatem tnj lea_ Ee. j- .Y�r a
e
lot
Isaa es r.R wiser Ii,. ,_owns a lesser interest above described land than the entire and undivided tee aware estate therein,then ter _
eiem provided shell be paid t0 lessor Only in the proportion which lessee's interest bears to the whole and undivided fee Any iraeresl in production onfromu he lands described
momO etl
nerev to whichthe Interest of lessor may Ee subject shall be deducted horn the royalty herein reserved
—U f.Lessee shall have the right to use free of cost,gas.of and water produced on said land for its operation thereon,except water from we Is and reservoirs of
oce
y lessor.Lessee shah have the right at any time tO remove all machinery and fixtures placed on said premaes.including the right to draw end remove casing.
U 9.Lessee eh&1 pay 10 lessor reasonable amounts for damages caused by its o• o hilly 6 operators to growing crops 12 Said lard.When requestedam now on lessee sell
O h pipelines consent ntnM1 n iesso r sse lace MIOw rlow a a NO»th t ote he oblige hearer rthanm vv hundred eme)seat tc i ervae dr b➢m seel ce said rected by
` wiVget wtled i Icldin Lessee o have the right at in time Rut not the obligate') to remove all improvements,machinery and fixtures placed or erected by
Nam tat
lessee on said premises,including the rigM1(!c 0.11 and remove Casings
NEM}� to Lessee is hereby green the right and power at any time end from time to tree as a recurring right ether before or ales production,es 0 el or any part of the SEM land denoted above and as to any Ore al more of the formations hereunder,to pool or unitize the leasehold estate and the mineral estate covered Oy this lease with other
o And.lease or leases in the immediate moiety for the predllldl ersion of o oil
land
gals,Orrsseparately la the production of either.wrten m tests.',judgment it is necessary OI
H y advisable to do so,and irrespective of whe y respect to such other land,lease or leases.Likewise,units
formations not produdng of or gag may be reformed Ic exclude such hem rpreviously cc ponied to include
-o e exepufipap WPC
fordeclarmations ant forming e or unit My of any yin l shall be accomplished by lessee
and filing of l completed
upon declaration of such p unions have
or re n Commenced
ced ioduction shall on reworking
the operations
My unit may include land upon which a hweir has
— o heretofore unitseen cros ell or o this drilling 11 operations have been remmductio.Proding m,drilling or rawet. if a r sh underthis lei an
=q a unit which includes all or a pert of this lease Snell be treated as if n were prgdugl(Iri,antis m reworking Y teased MYwhlre on
o O etaewnere herein specified,lessor shall receive on production from the urn so pooled royalties only h operations itc pr shifter c tie this lathe ben s of the royalties
shall be that on odes included o e''r Me
p unit bear to the hettotM this lease,such allocation
acrsi
=oo proportion eel the unit pmducbon that the total number Of surface acres covered by this ease and in tit! bars to total number of surface acres in
=ooetth unitmom .
Ola4 11.Lessee Shalt have the right to unitize pool,or combine all or any pal of the land described above as to one or more of me formations thereunder with ether
O lands n the same general area by entering into a cooperative or unit plan of development or operation approved by any governmental au Molly and,from time to time,wren
White approval b modify,change or terminate any such Nan or agreement and.in such event the terms.condition.and provisions of Ins lease shall be deemed unpaired to
crmnform to the terms,conditions and provisions of such approved cooperative or unit plan of development or operation and particularly,ell drilling and development
c equiremenls of this lease,e9 rears or Implied.shall
be
veb
enlisted by compliance with the drilling and depmenl requirements of such yon or agreement,end this lease shall
tee eel terminate or expire darn the Ile or such plan agreement In the event that the land described above or any pan thereof shall hereafter be
rted under any such
Lap Nrooperasee or unit plan Of development or operation whereby the production therefrom.5 allocated to different polies of the land covered by said planathen the product o n
al located to any particular tract of lend snail.for the purpose of computing the royalties to be pad hereunder to lessor,be regarded as having been produced born the
particular tract of land to which h is allocated and not to any otter tract et land,and The royalty payments to be made hereunder to tensor Mat OC based upon production only
as SO allocated
12 If Me estate of eider pall hereto is assigned or seller,and the privilege of assigning or subletting in whole or in pan is expressly stowed,the express and
Impttec covenants hereof shall extend to the sublessees,successors and assigns of the paNes,and rt the event of an ass gnment or subletting by lessee,lessee shell be
relieved and disc arged as to the leasehold rights so assigned or sublet from any liability to lessor thereafter accruing upon any of the covenants Or conditions of this lease.
ether express or mprled No change in Ownership of the land.royalties.Or other payments,however accomplished,shall operate to enlarge the obligetOna or diminish the
'oils or lessee or require separate measuring or retaliation of separate tanks by lessee Notwithstanding any actual or constructive knowledge of or nonce to lessee,no
change in ownership of said lard or of the right to receive royalties or other payments hereunder,or of any interest therein,whether by reason or death,conveyance or any
other matter,shell be binding on lessee(except at lessee's option in any particular case)until one hundred twenty 1120)days attar lessee has been furnished written notice
thereof,and the supporting information hereinafter referred to.by the party claiming as a result of such change in ownership or interest Such notice shah be swooned by
original and certified copies of all docements and other instruments or proceedings necessary ir lessees opinion to establish the ownership of the claiming party
no In the interest of conservatian,Ine protection of reservoir pressures and recovery Of the greatest ultimate yield of oil aoNor gas lessee shell have the right to
combine the may leased premises
reen feels with other ther premises in th sante general area for the purpose of operand end maintaining repressurirlg and recycling facilities end for such
purposens benefiting Me leased premises g input wet s,upon leased premises,and no royalties snail'be payable hereunder upon any gas teed for repressunng and recycling
14.If lessor,donne the primary taco of Ibis lease,receives a bona foe offer from a third party to purchase Iron.essor a lease Covering any or ali of the
substances covered by this lease and covering all or a portion of the and descried herein with such lease to become effective upon expirehon of this lease,which lesser is
willing to accept from the Offering parry,lessor hereby agrees to notify lessee in writing of sa d offer immediately.including In the notice the name and address o'the offeror
Me once offered and all other pertinent terms and conditions of the offer Lessee,for a perrod of fifteen(151 days after the receipt of the notice,shall have the prior and
preferred right end pptbn to purchase the lease Or port thereof or interest theren covered by the offer at the price and on tee(elms and Conditions Specked,in the offer All
offers the lease
ad to and including the last day elute primary term of this.ease shall be subject:o me terms art conditions of this paragraph 1a Seed lessee elect to purchase
pursuant o the terms hereof it shall no notify lessor in writing by mail,telefax.Or telegram prior to eapirahon 01 said fifteen(15)day period Lessee shall promptly
thereafter Lrnish to lessor the new ease for executor by lessor along wits lessee's sight drab payable to lessor in payment of Ine specified amount an consideration for the
new lease,such draft being subject le approval or tilllsaccoromg to the terms thereof Ulan receipt thereof,tensor shed prnmptlY execute said lease and return same along
payment
with the draft tbrougr lessor's bank of record tar
15 In the event lessor considers that esuee has not complied with all its obbgadon5 hereunde either express or Implied,lessor shall notify lessee in writing.
setting Out specifically in what respects lessee Las breached this lease Lessee shall then have sixty(60)days after receipt of said notice within wn.M to meet Or commence
• to meet all or any pan of the beaches alleged by lessor The service of said notice shall be precedent to the bringing Of any action,by lessor on said least for any Cause.and
no such action shell ha brought uribi the lapse of sixty(GO)days abet service of such notice on lessee Neither the service of sold notice no'the doing of ary acts by enact
aimed to meet el or any of the alleged breaches shall be deemed an admission or presumption that IMsee has failed to perform a.l Its obligations hereunder This lease shall
never be forfeited or canoelled for failure to perform in whole o'In pan any of its smarten covenants conditions,or stipulations until a Judicial determination is made net such
failure exists and Inverse fails wi!h:n a reasonable time to aatiefy any such covenants conditiors or stipulatlOns.
16 All express and implied covenants of Isis lease sell be sublect to all federal and state county or municipal laws executive orders rules and regulations,and
lessee's Obligations and covenants hereunder,whether express a'moiled.shalt be suspended at the time or ffem time to lime as compliance with such obligations and
covenants i9 preventet or hindered by or Is in conflict with federa',state.county,or municipal lupus,rules,regulations or executive orders asserted as official by or under
public adhorfy darning lunsrtllcn,or Act o'God,adverse field weather,or market conditions,inability to obtain materiels in Meucci)market or transportation thereof,wars,
sakes lockouts,dots,or other conditions or circumstances not wholly controlled by lessee,and this lease shall not be terminated in whole or in pan,nor lessee held liable in
daeventualities ffor failure
e re complyto
oe with
ks¢e shallebli oblprevigations
covenants if compliance therewith a prevented Or hindered by Or rs In Condor with any of the foregoing
during which primacy of the lease 'orn conducting drilling or eeworeing operahors during me primary term of this lease,under Me conbngenoes
above Staled.shalt be added to thetem
tensor hereby waranls and agrees to defend the'idle to the lands deserted above,and agrees that the lessee.at M1s option,shah have the fent at all rime to
pay for lessor, y mortgage,taxes or other liens existing,levied or assessed on or against the wove described-ands in the event of default of payment by lector and be
suer gated to tee rights on'ha noloer thereof,and(eneer hereby agrees that any sue payments made lay lessee for the lessor may be deducted from any amounts dl money
which may became due the lessor under the terms of this lease.
re This lease and all its terms conditions,and slrpu'aho rs snail extend to and be brruing on all successors in inletest,in wade or in part,of said.easor or lessee
15 With reused la and for the purpose of this lease.lessor.and can't o1 them if there be more roan we.nereby release end waive the right of homestead
WHEREOF witness our hands as olthe day and year erst above written.
GREEN VALLEY RANCI I, INC., a Wyoming
corporation
c.
1Diephfoe P Gracile, President Harry „ nraci ,Secretary/ reavurer "y
IN WITNESS WHEREOF.I have hereunto set my nand and affixed my naval al sea.err day and veal last above ernten tI�1
ACKNOWLEDGEMENT-CORPORATE THOMAS J. MORRIS III
STATE OF CawRflpo ) NOTARY PUBLIC
DD„N OF J3 LP ) B5 STATE OF COLORADO
On this g 1 day of I 2'GVr U(3/Ht AD.2008.before me personally epoeered Josephine F Gracrk.to me personally known,
who being by me duly sworn,rid say that she is the President of Green Va ley Ranch,Inn,a Wyom.ng corpora:ier.and that the seal affixed to Said instrument It the
comoate Seal of sand corporation and that said instrument'was signed and Sealed on behalf of said corporation by authority of its Board of Directors,and said Joseprirre
Grace acknewledged said Instument to be the tree act and deed of sad corporation and was attested by Harry L Graak,as Secretary of Green Valley Rendr,Inc.,a
• Wyoming corporador, �f—
WITNESS my hand and official sear
My commission expires rotary Public ln43 $e.J eli.A,t eA C1RCL6
St"70 I I Eu6 LEIwop_ CO $011(
Adonese
v r
EXHIBIT'A'
• Attached to and made a pan of that certain Oil and Gas I ease doted Febntarr 8,2888.ha and between Green Valley Ranch,Inc,a Wyoming corporation.as
Lessor,and Extern Resources,LU',as Lesser
Township 10 North Range 62 Weft 6h P.M.
Section 2: All
Section 3: S/2,NE/4
Section 4: NE/4,N/2 N W/4
Section 5: E/2 NW/4,NW/4 NW/4
Section I I:All
Section 14: E12,P/2 W/2
Township II North,Ranee 62 West,6th P.M.
Section 8: W/2 W/2
Section 9: All
Section 17: SW/4,G'2 SE/4
Section21: All
Section 27: W/2
Section 28: W/2,NE/4
Section 29: All
Section 30: S/2
Section 32: SW/4
Section 33: All
Section 34: W/2
Township 12 North,Range 62 West,6d'P,M-
Section 19: W/2
• 7,480.00 acres,more or less
Notwithstanding any clause to the contrary,the mineral owner royalty made a part of this Oil and Gas Lease is 15%.
Signed for Identification purposes:
GREEN VALLEY RANCH,INC.,a Wyoming corporation
osephin F.Creel<, resident ik,Secretary Treasurer
a
•
11111111111111111111111����111111111111���11111 IIII����
3616017 0411012009 01126P Weld County,CO
3 of 3 R 16.00 D 0.00 Steve Moreno Clerk 6 Recorder
111111111111 Ell 1111111111111111111111111111
. 3686207 04112/2010 12:29P Weld County, CO
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O11, AND GAS LEASE
• This Lease Agreement(the"Lease") is entered into on kV-/Q _(the
"Effective Date")between Amy Harris,a married woman dealing in her sole and
separate property whose address:s
q D 4 390 W^st P err tt,'Gros r,,s.j.c rin g,Florida 32043 P I ,the"Lessor"
R',�c 9 i.(whether one or more)and FOR FE OIL COMPANY ,whose address is 8235
C�tren DOUGLAS A VF.,STE 402, I..B.27 DALLAS TX 75225 ,the"Lessee.'
5R / The Ixssor, in consideration of Ten Dollars and other valuable consideration, the
receipt of which is acknowledged, and the covenants and agreements contained in this
Lease, grants, demises, leases and lets exclusively to Lessee, the land described below,
with the exclusive right Ibr the purpose of mining, exploring by geophysical and other
methods. and operating for and producing oil (including,but not limited to,distillate and
condensate), gas (including, but not limited to casinghead gas and helium), and other
hydrocarbons of whatever nature or kind, and for laying pipelines, telephone and other
lines, and building tanks,power stations,gasoline plants, ponds, roadways and structures
to produce, save and lake care of those products, and the exclusive right of infecting
water, brine and other fluids into subsurface strata, and any and all other rights and
privileges necessary, incident to, or convenient for the economical operation alone, or
conjointly with neighboring land,for the production,saving,taking care of,and selling all
substances produced, all that certain tract of land situated in WELD County,
Colorado,described as follows:
TOWNSHIP 10 NORTH,RANGE 62 WEST OF THE 6 P.M.,:
SECTIOrs I0: W2.NE4
SECTION II:NW4
TOWNSHIP NOR II,RANGE 03 WEST OF THE 6"h P.M.
SECTION I:L 1 (40.11),2(40.)4)3 t40.56),SENW,S2NP N2SE
•
Containing 9, .01 acres, more or less,which are referred to in this Lease as the"laud,"
"lands,"or"lee e premises."
It is agreed that this I ease shall remain in force for a term of five(5) years from
this date(the"Primary Tenn")and as long thereafter as oil or gas of whatever nature or kind is
produced from the lease premises or on acreage pooled or unitized with the lands, or drilling
operations are continued as provided for in this Lease. If;ar the expiration of the primary teen of
this Lease. oil r gas is not being produced on the lease premises or on acreage pooled or
unitized with to lands but essee is then engaged in drilling or reworking operations, then this
lease shall con rue in force so long as operations are being continuously prosecuted on the
lease premises • on acreage pooled or unitized with the lands; and operations shall be
considered to be t antinuously prosecuted it'not more than ninety(90)days shall elapse between
the completion or abandonment of one well and the beginning of operations for the drilling of a
subsequent well. If after discos., y of oil or gas on the land or on acreage pooled or unitized with
the land.production thereof shoe Id cease from any cause after the Primary Term,this Lease;hall
not terminate if Lessee commeeees additional dulling or reworking operations within ninety(90)
days from the date of cessation of productioa or from the date of completion of a dry hole. If oil
or gas shall be discovered rind produced as a result of those operations at or after the expiration
of Ihc Primary Term of Lease. this Lease shall continue in force so long as oil or g;s is
produced from the lease p ues or on acreage pooled or unitized with the lands.
2. This is a PAID t EASE. In consideration of the cash payment, (which payment is
accepted My Lessor as good and sufficient consideration for the rights granted to Lessee in this
I.ease), Lessor agrees that Lessee shall not be obligated, except as otherwise provided. to
commence or continue any operations during the Primary Tern. Lessee may at any time or times
during or after the Primary Term surrender this Lease as to all or any portion of the land anc. as
to any strata or stratum by delivering to Lessor or by filing for record a release or releases,and be
• relieved of all obligation accruing as to the acreage surrendered
3. As royalty,the lessee covenants and agrees:
a. To deliver to the credit of Lessor, free of cost, in the pipeline to which
• :-essee may connect wells on the land,the equal 20% part of all oil (including but
not limited to condensate and distillate)produced and saved from the lease premises or at
Lessee's option, pay Lessor for the 20% royalty, the market price for oil of like
grade and gravity prevailing on the day the oil is run into the pipeline or into storage
tanks.
b_ To pay Lessor for gas of whatever nature or kind (with all of its
constituents)produced and sold or used off the lease premises,or used in the manufacture
of products,_20% of the net proceeds realized by Lessee for the gas sold,used off the
premises, or used in the manufacture of products, the net proceeds to be less a
proportionate part of the production, severance, and other exercise taxes and costs
incurred by Lessee in delivering, processing, compressing, or otherwise making the gas
merchantable. Gas of any kind or nature unavoidably lost, or which may be used by
Lessee in any process in recovering oil or other liquid hydrocarbons from the lease
premises, or returned to the ground, whether through wells located on the lease premises
or elsewhere, shall not be deemed to have been sold or used off the lease premises within
the meaning,express or implied,of this Lease.
4. Where gas from a well capable of producing gas is not sold or used, Lessee may
pay or tender as royalty to the royalty owners One Dollar per year per net royalty acre
retained by this Lease, this payment or tender to be made on or before the anniversary
date of this Lease next ensuing after the expiration of 90 days from the date such well is
shut in and thereafter on or before the anniversary date of this Lease during the period
such well is shut in. If the payment or tender is made, it will he considered that gas is
being produced within the meaning of this Lease.
5. If Lessor owns a lesser interest in the land than the entire and undivided fee
simple estate, then the royalties (including any shut-in gas royalty) provided for it; this
Lease shall be paid to the Lessor only in the proportion which lessor's interest bears to
the whole and undivided fee.
6. Lessee shall have the right to use,free of cost, gas, oil and water produced on the
land or on lands pooled or unitized with the land for Lessee's operations, except water
from the wells of Lessor.
7. When requested by Lessor, Lessee shall bury Lessee's pipeline below plow depth,
on cultivated lands.
8. No well shall he drilled nearer than 200 feet to the house or barn now on the land
without written consent of Lessor_
9. Lessee shall pay fir damages caused by Lessee's operations to growing crops on
the land.
10. Lessee shall have the right at any time to remove all machinery and fixtures
placed on the land,including the right to draw and remove casing.
I I. The rights of Lessor and Lessee may be assigned in whole or part. No change in
ownership of Lessor's interest (by assignment or otherwise) shall he binding on Lessee
until Lessee has been furnished with notice,consisting of certified copies of all recorded
instruments or documents and other information necessary to establish a complete chain
of record title from Lessor,and then only with respect to payments later made. No other
kind of notice, whether actual or constructive, shall he binding on Lessee. No present or
future division of Lessor's ownership as to different portions or parcels of the land shall
operate to eclarge the obligations or diminish the rights of Lessee, and all Lessee's
operations may be conducted without regard to any division. If all or any part of tats
Lease is assigned,no leasehold owner shall be liable for any act or omission of any other
leasehold owner.
•
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2. Lessee, at its option, is given the right and power at any time and from time to
time as a recurring right, either before or after production,as to all or any part of the land
and as to any one or more formations, to pool or unitize the leasehold estate and the
• mineral estate covered by this Lease with other land, lease, or leases in the immediate
vicinity for the production of oil and gas,or separately for the production of either,when
in Lessee's judgment it is necessary or advisable to do so, and irrespective of whether
authority similar to this exists with respect to such other land, lease or leases. Likewise,
units previously formed to include formations not producing oil or gas, may be reformed
to exclude such non-producing formations. The forming or reforming of any unit shall be
accomplished by Lessee executing and filing of record a declaration of such unitization or
reformation, which declaration shall describe the unit. Any unit may include land on
which a well has been completed or on which operations for drilling have been
commenced. Production,drilling, or reworking operations or a well shut-in for want of a
market anywhere on a unit which includes all or a part of this Lease shall be treated as if
it were production,drilling,or reworking operations or a well shut-in for want of a market
under this Lease. In lieu of the royalties specified in this Lease, including shut-in gas
royalties. Lessor shall receive on production from the unit so pooled royalties only on the
portion of production allocated to this Lease; such allocation shall be that proportion of
the unit production that the total number of surface acres covered by this Lease and
included in the unit bears to the total number of surface acres in the unit. In addition to
the foregoing, Lessee shall have the right to unitize, pool, or combine all or any part of
the lands as to one or more of formations with other lands in the same general area by
entering into a cooperative or unit plan of development or operation approved by any
governmental authority and, from time to time, with like approval, to modify, cha age or
terminate any plan or agreement and, in such event, the terms,conditions,and pros isions
of this Lease shall be deemed modified to conform to the terms, conditions, and
provisions of the 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 development requirements of the
plan or agreement, and this Lease shall not terminate or expire during the life of the plan
or agreement. In the event that all or any part of the lands shall be operated under any
cooperative or unit plan of development or operation by which the production front it is
allocated to different portions of the land covered by the plan, then the production
• allocated to any particular tract of land shall, for the purpose of computing the royalties to
he paid to Lc rr,be regarded as having been produced t nn the particular tract of land to
which it is at. sated and not to any other tract of land, and the royalty payments to be
made to Less shall be based on production only as so allocated. Lessor,if requested by
Lessee, shall i se the obligation to formally express Lessor's consent to any cooperative
or unit plan u development or operation adopted by Lessee and approved by any
governmental agency and shall execute the same on request of Lessee.
13. All express or implied covenants of this Lease shall be subject to all Federal and
State Laws, F.Aecutive Orders, Rules or Regulations, and this Lease shall not be
terminated, in whole or in part, nor Lessee held liable in damages, for failure to comply
with them, if compliance is prevented by,or if the failure is the result of,any Law,Order,
Rule or Regulation.
14. Lessor warrants and agrees to defend the title to tL; lands, and agrees that the
Lessee shah have the right at any time to redeem for Lessor, Jy payment,any mortgages,
taxes, or other liens on ' r lands, in the event of default of payment by Lessor and be
subrogated to the rights ;he holder,and Lessor agrees that any payment made by Lessee
for Lessor may he dedu I from any amounts of money which may become due to the
Lessor under the tens n .his Lease. "fhe undersigned Lessors, for themselves and their
heirs, successors and assigns, surrender and release all right of dower and homestead in
the lease premises,insofar as the right of dower and homestead may in any way affect the
paroses for which this Lease is made,as recited in this Lease.
15. Should any one or more of the parties named as Lessor fail to execute this Leese,
it shall nevertheless he binding on all parties who do execute it as Lessor. The word
"Lessor," as used in this Lease, shall mean any one or more or all of the parties IA ho
execute this Lease as Lessor. All the provisions of this Lease shall be binding on the
• `heirs,successors and assigns of Lessor and Lessee.
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•
16. This Lease shall not be terminated, forfeited. or canceled for failure by Lessee to
perform in whole or in part any of its implied covenants,conditions, or stipulations until
it shall have been first finally and judicially determined That the failure or defaul: exists,
• and then Lessee shall he given a reasonable time to correct any default so determined,or
at Lessee's election it may surrender the Lease with the option of reserving under the
terms of this Lease each producing wed and forty(40)acres suroanding it as selected by
Lessee, together with the right of ingress and egress. Lessee shall not be liable in
damages for breach of any implied covenant or obligation.
17. No part of the surface of the lease premises shall, without the written consent of
the I,essee, be let, granted, or licensed by the lessor to any other party for the erection,
construction, location or maintenance of structures, tanks, pits, reservoirs. equipment,or
machinery to be used for the purpose of exploring,developing or operating adjacent lands
for oil or gas.
IS. Any and all payments permitted or required to be made under the terms of this
Lease shall be made or tendered to the Lessor or to Les is credit in the
Vt,t�itdr_Crea �Ur�..... Rank (the depository bank) at Et or its
successor or successors, or any bank with which it may be mered, or consolidated, or
which succeeds to its business or assets or any part of them, by purchase or otherwise,
which shall continue as the depository bank regardless of changes in the ownership of the
land.
This Lease is executed as of the date of the acknowledgments below, but shall be
deemed effective for all purposes as of the Effective Date stated above.
Lessor
•
Harris
y�itcd'
Amy Harris
•
Individual Acknowledgment
STATE OF JIo'adQJ
COUNTY OF On ,,'
�1,,,, LThhe� instrument was acknowledged before me on 04/Oli to, by
Wt mH low [1 _ _ •
,IERESA L CONZOiB Notary Public in and for the State of l
MY RESAL rrwrnxs Printed Name: TerrcgL .CDWI^Q COMM
f
b. V"°nScIlleig GA a Commission Expires: Sept. aDl:3
• 1111111111111)1111111111111111111111111111111111111111
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EXHIBIT"A"
OPTION TO EXTEND PRIMARY TERM FOR PAID-UP LEASE f5+2).
• Lessee is hereby given the option to extend the primary term of this lease for an additional two(2)fears
from the expiration of the original primary term hereof This option may be exercised by Lessee at any tune
during the last year of the original primary by paying the sum of Two Hundred Twenty Five and null 00
Dollars($2253 per net mineral acre directly to Lessor at the above address.This payment shall be based
upon the number of net mineral acres then covered by this lease and not as such time being maintained by
other prop isians hereof This payment may be made by the check or draft to lessee mailed or delivered to
Lessor or to said bank at any time during the last year of the original primary term hereof If such b,nk(or
any successor bank)should fail,liquidate or be succeeded by another bank,or for any reason fail or refuse
to accept payment,Lessee clad!not be:held in default for failure to make such payment until thirty 130)days
after Lessor's delivery to Lessee of a proper recordable instrument naming another bank as agent to receive
such payment.If,at the time this payment is made,various parties are entitled to specific amounts according
to Lessee's records,this payment may be divided between said parties and paid in the same proportian.
Should this option be exercised as herein provided,it shall be considered Lot all purposed as though this
lease originally provided for a primary term of sever.(7)years.In the event this lease is being maintained
by any other lease provisions at the expiration of the primary term,Lessee shall have a period of thirty(30)
days from the date this lease ceases to he so maintained within which to exercise this option If Lessee
exercises its option to extend this lease,Lessee shall file notice thereof in the public records where the land
is situated and provide to Lessor a copy thereof,failing which the option will terminate.
Two Hundred Twenty Five and no/100 Dollars($225)
•
Please Return To:
FOREE OIL COMPANY
8235 Douglas Ave,LB 27,STE 402
Dallas,'texas 75225
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•
5
Colorado Paid-tlptPooling
(9e, 9 99
209 OIL AND GAS LEASE
• This Lease Agreement(the"Lease")is pntte ed into on "p (the
"Effective Date")between Teresa Fewell,a iiAiiitiwoman de ii in her sole arid
separate property whose address is
OQ -k34A Emerald Lake Dr.Harlingen,Texas 78550 ,the"Lessor"(whether
one or more)and FOREE OIL COMPANY ,whose address is 8235 DOUG AS
AVE. STE 402. L.B.27 DALI.AS,TX 75225 __,the"Lessee."
The Lessor, in consideration of Ten Dollars and other valuable consideration, the
receipt of which is acknowledged, and the covenants and agreements contained in this
Lease, grants, demises, leases and lets exclusively to Lessee, the land described below,
with the exclusive right for the purpose of mining, exploring by geophysical and other
methods, and operating for and producing oil (including, but not limited to,distillate and
condensate), gas (including, but nut limited to casinghead gas and helium), and other
hydrocarbons of whatever nature or kind, and for laying pipelines, telephone and other
lines,and building tanks, power stations,gasoline plants, ponds, roadways and structures
to produce, save and take care of those products, and the exclusive right of injecting
water, brine and other fluids into subsurface strata, and any and all other rights and
privileges necessary, incident to, or convenient for the economical operation alone, or
conjointly with neighboring land,fur the production,saving,taking care of,and selling all
substances produced, all that certain tract of land situated in WELD County,
Colorado,described as follows!
TOWNSHIP 10 NORTH RANGE 62 WEST OF THE 6 P.M.,:
SECTION 10:W2,NE4
SECTION II,NW4
TOWNSHIP I0 NORTH,RANGE 63 WEST OF THE 6'"P.M.
SECTION I:Lots 1 (40.11),2(40.34)3(40.56),SENW,S2NE,N2SE
• containing 961.01 acres,more or less,which are referred to in this Lease as the"land,"
"lands,"or"lease premises."
I. It is agreed that this Lease shall remain in force for a term of five(5) years from
this date (the"Primary Term")and as long thereafter as oil or gas of whatever nature or k nd is
produced lion, the lease premises or on acreage pooled or unitized with the lands, or drilling
operations are continued as provided for in this Lease. If,at the expiration of the primary te-tn of
this Lease, oil or gas is not being produced on the lease premises or on acreage pooled or
unitized with the !ands but Lessee is then engaged in drilling or reworking operations, then this
Lease shad continue in force so long as operations are being continuously prosecuted on the
lease premises or on acreage pooled or unitized with the lands; and operations slut I be
considered to be eontnuoasly prosecuted if not more than ninety(90)days shall elapse between
the completion or abandonment of one well and the beginning of operations for the drilling of a
subsequent wet I. If abler discovery of oil or gas on the laud or on acreage pooled or unitized with
the land,production thereof should cease from any cause after the Primary Term,this Lease shall
not terminate if Lessee commences additional drilling or reworking operations within ninety(90)
days from the date of cessation of production or from the date of completion of a dry hole. if oil
or gas shall be discovered and produced as a result of those operations at or after the expire lion
of the Primary Tenn of this Lease, this Lease shall continue in force so long as oil or gets is
produced from the lease premises or on acreage pooled or unitized with the lands.
2. This is a PAID-UP LEASE. In consideration of the cash payment, (which payment is
accepted by Lessor as good and sufficient consideration for the rights granted to Lessee in this
Lease), Lessor agrees that Lessee shall not be obligated, except as otherwise provided, to
commence or continue any operations during the Primary Term Lessee may at any time or times
during or after the Primary Term surrender this Lease as to all or any portion of the land and as
to any strata or stratum by delivering to Lessor or by filing for record a release or releases,and be
relieved of all obligation accruing as to the acreage surrendered.
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3. As royalty,the Lessee covenants and agrees:
a. To deliver to the credit of Lessor, free of cost, in the pipeline to which
• Lessee may connect wells on the land, the equal _20% part of all oil(including but
not limited to condensate and distillate)produced and saved from the lease premises or at
Lessee's option, pay Lessor for the 20% royalty, the market price for oil of like
grade and gravity prevailing on the day the oil is run into the pipeline or into storage
tanks.
b. To pay Lessor for gas of whatever nature or kind (with all of its
constituents)produced and sold or used off the lease premises,or used in the manufacture
of products, 20% of the net proceeds realized by Lessee for the gas sold,used off the
premises, or used in the manufacture of products, the net proceeds to be :ess a
proportionate part of the production, severance, and other exercise taxes and costs
incurred by Lessee in delivering, processing, compressing, or otherwise making the gas
merchantable. Gas of any kind or nature unavoidably lost, or which may be used by
Lessee in any process in recovering oil or other liquid hydrocarbons from the lease
premises. or returned to the ground, whether through wells located on the lease premises
or elsewhere,shall not be deemed to have been sold or used off the lease premises within
the meaning,express or implied,of this lease.
4. Where gas from a well capable of producing gas is not sold or used, Lessee may
pay or tender as royalty to the royalty owners One Dollar per year per net royalty acre
retained by this Lease, this payment or tender to be made on or before the aunts ersary
date of this Lease next ensuing after the expiration of 90 days from the date such well is
shut in and thereafter on or before the anniversary date of this Lease during the period
such well is shut in. If the payment or tender is made, it will be considered that gas is
being produced within the meaning of this lease.
5. If Lessor owns a lesser interest in the land than the entire and undivided fee
simple estate, then the royalties (including any shut-in gas royalty) provided for in this
Lease shall he paid to the Lessor only in the proportion which Lessor's interest bears to
the whole and undivided fee.
6. lessee shall have the right to use, free of cost,gas, oil and water produced en the
land or on lands pooled or unitized with the land for Lessee's operations, except water
from the wells of Lessor.
7. When requested by Lessor, Lessee shall bury Lessee's pipeline below plow depth,
on cultivated lands.
8. No well shall he drilled nearer than 200 feet to the house or barn now on the land
without written consent of Lessor.
9. Lessee shall pay fir damages caused by Lessee's operations to growing crops on
the and
p
10. Lessee shall have the right at any time to remove all machinery and fixtures
placed on the land, including the right to draw and remove casing.
I I. The rights of Lessor and Lessee may be assigned in whole or part. No change in
ownership of Lessor's interest (by assignment or otherwise) shall be binding on Lessee
until Lessee has been furnished with notice,consisting of certified copies of all recorded
instruments or documents and other information necessary to establish a complete chain
of record title from Lessor,and then only with respect to payments later made. No other
kind of notice,whether actual or constructive, shall he binding on Lessee. No present or
future division of Lessor's ownership as to different portions or parcels of the land shall
operate to enlarge the obligations or diminish the rights of Lessee, and all Lessee's
operations may be conducted without regard to any division. If all or any part of'his
Lease is assigned,no leasehold owner shall be liable for any act or omission of any other
leasehold owner.
•
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•
12. Lessee, at its option, is given the right and power at any time and from time to
time as a recurring right,either before or after production, as to all or any part of the land
and as to any one or more formations, to pool or unitize the leasehold estate and the
• mineral estate covered by this Lease with other land, lease, or leases in the immediate
vicinity for the production of oil and gas,or separately for the production of either,when
in Lessee's judgment it is necessary or advisable to do so, and irrespective of whether
authority similar to this exists with respect to such other land, lease or leases. Likewise,
units previously formed to include formations not producing oil or gas, may be reformed
to exclude such non-producing formations_ The forming or reforming of any unit shall be
accomplished by Lessee executing arid filing of record a declaration of such unitization or
reformation, which declaration shall describe the unit. Any unit may include land on
which a well has been completed or on which operations for drilling have been
commenced. Production,drilling,or reworking operations or a well shut-in for want of a
market anywhere on a unit which includes all or a part of this Lease shall he treated as if
it were production,drilling,or reworking operations or a well shut-in for want of a market
under this Lease. In lieu of the royalties specified in this Lease, including shut-in gas
royalties. Lessor shall receive on production from the unit so pooled royalties only on the
portion of production allocated to this Lease; such allocation shall be that proportion of
the unit production that the total number of surface acres covered by this Lease and
included in the unit hears to the total number of surface acres in the unit. In addition to
the foregoing, Lessee shall have the right to unitize, pool, or combine all or any part of
the lands as to one or more of formations with other lands in the same general area by
entering into a cooperative or unit plan of development or operation approved by any
governmental authority and, from time to time, with like approval, to modify, charge or
terminate any plan or agreement and, in such event,the terms,conditions,and pros isions
of this Lease shall he deemed modified to conform to the terms, conditions, and
provisions of the approved cooperative or unit plan of development or operation and,
particularly,all drilling and development requirements of this Lease,express or implied,
shall be satisfied by compliance with the drilling and development requirements of the
plan or agreement,and this Lease shall not terminate or expire during the life of the plan
or agreement. In the event that all or any part of the lands shall be operated under any
cooperative or unit plan of development or operation by which the production from it is
allocated to different portions of the land covered by the plan, then the production
• allocated to any particular tract of land shall,for the purpose of computing the royalties to
be paid to I.essor,be regarded as having been produced from the particular tract of land to
which it is allocated and not to any other tract of land, and the royalty payments to be
made to Lessor shall be based on production only as so allocated. Lessor, if requested by
Lessee, shall h re the obligation to formally express Lessor's consent to any cooperative
or unit plan o development or operation adopted by Lessee and approved by any
governmental agency and shall execute the same on request of Lessee.
13. All cxpres. or implied covenants of this Lease shall be subject to all Federal and
State Laws, Executive Orders, Rules or Regulations, and this Lease shall not be
terminated, in whole or in part, nor Lessee held liable in damages, for failure to comply
with them, it compliance is prevented by,or if the failure is the result of,any Law,0-der,
Rule or Regulaiion.
14. Lessor warrants and agrees to defend the title to the lands, and agrees that the
Lessee shall have the right at any time to redeem for Lessor,by payment,any mortgages,
taxes, or other liens on the lands, in the event of default of payment by Lessor and be
subrogated to the rights of the holder,and Lessor agrees that any payment made by Lessee
for Lessor may be deducted from any amounts of money which may become due to the
Lessor under the terms of this Lease. The undersigned Lessors,for themselves and their
heirs, successors and assigns, surrender and release all right of dower and homestead in
the lease premises, insofar as the right of dower and homestead may in any way affect the
purposes for which this Lease is made,as recited in this Lease.
15. Should any one or more of the parties named as Lessor fail to execute this Lease,
it shall nevertheless be binding on alt parties who do execute it as Lessor. The ward
"Lessor," as used in this Lease, shall mean any one or more or all of the parties who
execute this Lease as Lessor. All the provisions of this Lease shall be binding on the
heirs,successors and assigns of Lessor and Lessee.
• i
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16. This lease shall not be terminated, forfeited, or canceled for failure by Lessee to
perform in whole or in parr any of its implied covenants, conditions, or stipulations until
• it shall have been first finally and judicially determined that the failure or default exists,
and then Lessee shall be given a reasonable time to correct any default so determined, or
at Lessee's election it may surrender the Lease with the option of reserving under the
terms of this Lease each producing well and forty(40)acres surrounding it as selected by
Lessee, together with the right of ingress and egress. Lessee shall not be liable in
damages for breach of any implied covenant or obligation.
17. No par: of the surface of the lease premises shall, without the written consent of
the Lessee, be let, granted, or licensed by the Lessor to any other party for the erection,
construction, location or maintenance of structures, tanks, pits, reservoirs, equipment, or
machinery to be used for the purpose of exploring,developing or operating adjacent lands
for oil or gas.
18. Any and all payments permitted or required to be made under the terms of this
Lease shall be made or tendered to the Lessor or to Lessor's credit in the
Bank (the depository hank) at _ or its
successor or successors, or any bank with which it may be merged, or consolidated, or
which succeeds to its business or assets or any part of them, by purchase or otherwise,
which shall continue as the depository bank regardless of changes in the ownership of the
land.
This Lease is executed as of the date of the acknowledgments below, bat shall be
deemed effective for all purposes as of the Effective Date stated above.
Lessor
-/i4d
Teresa ewell
•
Individual Acknowledgment
STATE OF 1 trae,
COUNTY OF —LAme _
The instrument was acknowledged before me on 11 /d' / 1p, by
ss
Notary P i _a ,`dfor th`e,State of )L
Printed Name: pgr r(. Ve d wo,
Commission Expires: 04— 2�_20in
EndiejOwni"Weea
1111111 11111 11111111111111111111111 111111 H I I I I 4
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EXHIBIT"A"
OPTION TO EXTEND PRIMARY TERM FOR PAID-UP LEASE(5+2):
• Lessee is hereby given the option to extend the primary term of this lease for an additional two(21!cars
from the expiration of the original primary term hereof This option may be exercised by Lessee at any time
during the last year of the original primary by paying the sum of Two Hundred Twenty Five and no'100
Dollars($225 per net mineral acre diresdy to Lessor at the above address.This payment shall be based
upon the number of net mineral acres then covered by this lease and not as such time being maintained by
other provisions hereof This payment nay be made by the check or draft to Lessee mailed or delivered to
Lessor or to said bank at any time during the last year of the original primary term hereof If such hunk(or
any successor hank)should fail,liquidate or be succeeded by arother bank,or for any reason fail or refuse
to accept payment,Lessee shall no!he held in default for failure to make such payment until thirty(30)days
atier Lessor's delivery to Lessee.of proper recordable instrument naming another bank as agent to receive
such payment If,at the time this payment is made.various parties are entitled to specific amounts according
to Lessee's records,this payment may be divided between said parties and paid in the same proportion.
Should this option be exercised as herein provided,it shall be considered for all purposed as though!his
lease originally provided for a primary term of seven(7)years.In the event this lease is being maintained
by any other lease provisions al the expiration of the primary term,Lessee shall have a period of thirty(30)
days front the date this lease ceases to be so maintained within which to exercise this option.If Lessee
exercises its option to extend this lease,Lessee shall file notice thereof in the public records where the land
is situated and provide to Lessor a copy thereof,failing which the option will terminate.
Two Hundred Twenty Five and no/100 Dollars(S2251
•
]'lease Return To:
EOREE OIL COMPANY
8235 Douglas Ave,LB 27,STE 402
Dallas,Texas 75225
•
1111111111111111111111111111111111111111 11111 11111111 5
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Colorado l'aid-Upd'ooling
2% (Rev 9.07
OIL AND GAS LEASE
This Lease Agreement(the"Lease")is entered into on 4'-L-2os0(the
"Effective Date")between Melissa Moore. a married woman dealing dealing jillier sole
and separate property whose address is
3458 Patriot Hebron,Kentucky 41048 ,the"Lessor"(whether one or
more)and FOREE OIL COMPANY ,whose address is 8235 DOUGLAS AVE.
STE 402 L.B.27 DALLAS,TX 75225 ,the"Lessee."
The Lessor, in consideration of Ten Dollars and other valuable consideration, the
receipt of which is acknowledged, and the covenants and agreements contained in this
Lease, grants, demises, leases and lets exclusively to Lessee, the land described below,
with the exclusive right for the purpose of mining, exploring by geophysical and other
methods, and operating for and producing oil(including, but nut limited to, distillate and
condensate), gas (including, but not limited to casinghead gas and helium), and other
hydrocarbons of whatever nature or kind, and for laying pipelines, telephone and other
lines,and building tanks,power stations, gasoline plants,ponds,roadways and structures
to produce, save and take care of those products, and the exclusive right of injecting
water, brine and other fluids into subsurface strata, and any and all other rights and
privileges necessary, incident to, or convenient for the economical operation alone, or
conjointly with neighboring land, for the production,saving, taking care of,and selling all
substances produced, all that certain tract of land situated in WELD County,
Colorado,described as follows:
TOWNSHIP 10 NORTH RANGE 62 WEST OF TILE 6 P.M.,:
SECTION 10:W2,NE4
SECTION ;L NW4
TOWNSHIP IC NORTH,RANGE 03 WEST OF THE 6"'P.M.
SECTION I: Lots I (40.114 2(40.34)3(40.56),SENW,S2NE,N2SE
•
containing, 961.01 acres,more or less,which are referred to in this Lease as the"land,"
"lands,"or-lease premises."
I. It is agreed that this l ease shall remain in force for a term of five(5)_years from
this date(the"Primary Term")and as long thereafter as oii or gas of whatever nature or kind is
produced from the (case premises of on acreage pooled or unitized with the lands, or dr fling
operations are continued as provided for in this Lease. If,at the expiration of the primary term of
this Lease, oil or gas is not being produced on the lease premises or on acreage pooled or
unitized with the lands but ' 'saec is then engaged in drilling or reworking operations, then this
tease shall continue in h • so long as operations are being continuously prosecuted on the
lease premises or out aci e pooled or unitized with the lands; and operations shall he
considered to be eontinuou prosecuted if not more than nicety(90)days shall elapse between
the completion or abandon nt of one we!I and the beginning of operations for the drilling of a
subsequent well. If after dr ivery of oil or gas on the land or on acreage pooled or unitized with
the land,production Ihereoi would cease from any cause after the Primary Term,this Lease shall
nut terminate if Lessee cowl ncnces additional drilling or reworking operations within ninety(90)
days from the date of eessat.,m of production or from the date of completion of a dry hole. If oil
or gas shall be discovered and produced as a result of those operations at or after the expiration
of the Primary Term of this Lease, this Lease shall continue in force so long as oil or gas is
produced from the lease premises or on acreage pooled or unitized with the lands.
2. This is a PAID-UP LEASE. In consideration of the cash payment, (which payment is
accepted by Lessor as good and sufficient consideration for the rights granted to Lessee in this
Lease). Lessor agrees that Lessee shall not be obligated, except as otherwise provided to
commence or continue any operations during the Primary Term. Lessee may at any time or times
during or after the Primary Terri surrender this Lease as to all or any portion of the land and as
to any strata or stratum by delivering to Lessor or by filing for record a release or releases,and be
relievcd of all obligation accruing as to the acreage surrendered.
•
1111111 1111111111 11111 111111 1111111111111111 311111
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3. As royalty,the Lessee covenants and agrees:
a. To deliver to the credit of Lessor, free of cost, in the pipeline to which
• Lessee may connect wells on the land, the equal 20% part of all oil (including hut
not limited to condensate and distillate)produced and saved from the lease premises or at
Lessee's option, pay Lessor for the 20% royalty, the market price for oil of like
grade and gravity prevailing on the day the oil is nm into the pipeline or into storage
tanks.
b. To pay Lessor for gas of whatever nature or kind (with all of its
constituents)produced and sold or used off the lease premises,or used in the manufacture
of products, 20% of the net proceeds realized by Lessee for the gas sold,used off the
premises, or used in the manufacture of products, the net proceeds to be less a
proportionate part of the production, severance, and other exercise taxes and costs
incurred by Lessee in delivering, processing, compressing, or otherwise making the gas
merchantable. Gas of any kind or nature unavoidably lost, or which may be used by
Lessee in any process in recovering oil or other liquid hydrocarbons from the lease
premises, or returned to the ground, whether through wells located on the lease premises
or elsewhere,shall not he deemed to have been sold or used oil'the lease premises within
the meaning,express or implied,of this Lease.
4. Where gas from a well capable of producing gas is not sold or used, Lessee may
pay or tender as royalty to the royalty owners One Dollar per year per net royalty acre
retained by this Lease, this payment or tender to be made on or before the anniversary
date of this Lease next ensuing after the expiration of 90 days from the date such well is
shut in and thereafter on or before the anniversary date of this Lease during the period
such well is shut in. If the payment or tender is made, it will be considered that gas is
being produced within the meaning of this Lease.
5. If Lessor owns a lesser interest in the land than the entire and undivided fee
simple estate, then the royalties (including any shut-in gas royalty) provided for in this
Lease shall he paid to the lessor only in the proportion which Lessor's interest bears to
the whole and undivided fee.
•
6. Lessee shall have the right to use,free of cost, gas,oil and water produced on the
land or on lands pooled or unitized with the land for lessee's operations, except water
from the wells of Lessor.
7. When requested by Lessor, Lessee shall bury Lessee's pipeline below plow depth,
on cultivated lands.
8. No well shall be drilled nearer than 200 feet to the house or barn now on the land
without written consent of Lessor.
9. Lessee shall pay for damages caused by Lessee's operations to growing crops on
the land.
10. Lessee shall have the right at any time to remove all machinery and fixtures
placed on the land,including the right to draw and remove casing.
11. The rights of Lessor and Lessee may be assigned in whole or part. No change in
ownership of Lessor's interest (by assignment or otherwise) shall be binding on Lessee
until Lessee has been furnished with notice, consisting of certified copies of all recorded
instruments or documents and other information necessary to establish a complete chain
of record title from Lessor, and then only with respect to payments later made. No other
kind of notice, whether actual or constructive,shall be binding on Lessee. No present or
future division of Lessor's ownership as to different portions or parcels of the land shall
operate to enlarge the obligations or diminish the rights of Lessee, and all Lessee's
operations may he conducted without regard to any division. If all or any part of this
Lease is assigned, no leasehold owner shall be liable for any act or omission of any other
leasehold owner.
•
111111 Illil llfl{I IIIII 111111 HIV III Ilill IIII IIlI 2
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12. Lessee, at its option, is given the right and power at any time and from time to
time as a recurring right,either before or after production,as to all or any part of the land
and as to any one or more formations, to pool or unitize the leasehold estate and the
• mineral estate covered by this Lease with other land, lease, or leases in the immediate
vicinity for the production of oil and gas,or separately for the production of either,when
in Lessee's judgment it is necessary or advisable to do so, and irrespective of whether
authority similar to this exists with respect to such other land, lease or leases. Likewise,
units previously formed to include formations not producing oil or gas,may be reformed
to exclude such non-producing formations. The forming or reforming of any unit shall be
accomplished by Lessee executing and filing of record a declaration of such unitization or
reformation, which declaration shall describe the unit. Any unit may include land on
which a well has been completed or on which operations for drilling have been
commenced. Production,drilling, or reworking operations or a well shut-in for want of a
market anywhere on a unit which includes all or a part of this Lease shall be treated as if
it were production,drilling,or reworking operations or a well shut-in for want of a .narket
under this Lease. In lieu of the royalties specified in this Lease, including shut-in gas
royalties. Lessor shall receive on production from the unit so pooled royalties only on the
portion of production allocated to this Lease; such allocation shall be that proportion of
the unit production that the total number of surface acres covered by this Lease and
included in the unit bears to the total number of surface acres in the unit. In addition to
the foregoing, Lessee shall have the right to unitize, pool,or combine all or any part of
the lands as to one or more of formations with other lands in the same general area by
entering into a cooperative or unit plan or development or operation approved by any
governmental authority and, from time to time, with like approval, to modify, change or
terminate any 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 the approved cooperative or unit plan of development or operation and,
particularly, all drilling and development requirements of this Lease, express or implied,
shall be satisfied by compliance with the drilling and development requirements of the
plan or agreement, and this Lease shall riot terminate or expire during the life of the plan
or agreement. In the event that all or any part of the lands shall be operated under any
cooperative or unit plan of development or operation by which the production from it is
allocated to different portions of the land covered by th .an, then the production
• allocated to any particular tract of land shall,fin the purpose. computing the royalties to
be paid to Lessor,be regarded as having been produced from e particular tract of land to
which it is allocated and no! to any other tract of land, an. 'me royalty payments to be
made to Lessor shall be based on production only as so allot d. Lessor, if requested by
Lessee. shall have the obligation to formally express Lessor 'onsent to any cooperative
or unit plan of development or operation adopted by L ce and approved by any
governmental agency and shall execute the same on request o .essee_
13. All express or implied covenants of this Lease shall : subject to all Federa. and
State Laws, Executive Orders, Rules or Regulations, :u this Lease shall not be
terminated, in whole or in part, nor Lessee held liable in da. iges, for failure to comply
with then:, if compliance is prevented by,or if the failure is tl, • result of,any Law,Order,
Rule or Regulation.
14. Lessor warrants and agrees to defend the title to the lands, and agrees that the
Lessee shall have the right at any time to redeem for Lessor, by payment,any mortgages,
taxes, or other liens on the lands, in the event of default of payment by Lessor and be
subrogated to the rights of the holder,and Lessor agrees that any payment made by Lessee
for lessor may be deducted from any amounts of money which may become due to the
lessor under the terms of this lease. The undersigned Lessors, for themselves and their
heirs, successors and assigns, surrender and release all right of dower and homestead in
the lease premises,insofar as the right of dower and homestead may in any way affect the
purposes for which this Lease is made,as recited in this Lease.
15. Should any one or more of the parties named as Lessor fail to execute tins Lease,
it shall nevertheless he binding on all parties who do execute it as Lessor. The word
"Lessor," as used in this Lease, shall mean any one or more or all of the parties who
execute this Lease as Lessor. All the provisions of this Lease shall be binding on the
• heirs,successors and assigns of Lessor and Lessee.
11111111111111111111111 1111111 III 11111 IDI IIII 3
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16. This Lease shall not he terminated.forfeited, or canceled for failure by Lessee to
perform in whole or in part any of its implied covenants,conditions,or stipulations until
• it shall have been first finally and judicially determined that the failure or default exists,
and then Lessee shall he given a reasonable time to correct any default so determined, or
at Lessee's election it may surrender the Lease with the option of reserving under the
terms of this lease each producing well and forty(40)acres surrounding it as selected by
Lessee, together with the right of ingress and egress. Lessee shall not be liable in
damages for breach of any implied covenant or obligation.
17. No part of the surface of the lease premises shall, without the written consent of
the Lessee, be let, granted, or licensed by the Lessor to any other party for the erection,
construction, location or maintenance of structures,tanks, pits, reservoirs, equipment, or
machinery to be used for the purpose of exploring,developing or operating adjacent lands
for oil or gas.
18. Any and all payments permitted or required to be made under the terms of this
Lease shall be made or tendered to the Lessor or to Lessor's credit •n the
?Net Bank (the depository bank) at AL _ or its
successor or successors, or any bank with which it may be merged, or consolidated, or
which succeeds to its business or assets or any part of them, by purchase or otherwise,
which shall continue as the depository bank regardless of changes in the ownership of the
land.
This Lease is executed as of the date of the acknowledgments below, but si all be
deemed effective for all purposes as of the Effective Date stated above. ss\oillitp4
/�/ ��oV... r i �G
Melt. a Moore
• /O4,-1xlllt 5`\\Oss
Individual Acknowledgment
STATE OF hic.K
COUNTY OF
`:,•s1crre.1.191try1i,.
�'�'• s ..''•yi The instrument was acknowledged before Incon 0�a L �y
� a .WL& =c
• i``
otary Public in and for the fate 6Y
1 rimed!game: _ oAori ( jt rue ceit+tlld
Commission Expires-'Y37a^e�3et 2/tit
•
illill BO illlll�{{I� 1 III 4
3686210 04112/2010 72:29? Weld County,C0
4 of 5 R 26.00 D 0.00 Steve Moreno Clerk 8 RecOrder
EXHIBIT"A"
OPTION TO EXTEND PRIMARY TERM FOR PAID-UP LEASE(5+
• Lessee is hereby given the option to extend the primary term of this lease for an additional two(2)years
from the expiration of the original primary term hereof This option may be exercised by Lessee at any time
during the last year of the original primary by paying the sum of Two Hundred Twenty Five and no"I00
Dollars($225)per net mineral acre directly to Lessor at the above address.This payment shall be based
upon the number of net mineral acres then covered by this lease and not as such time being maintain ed by
other provisions:hereof Ibis payment may be made by the check or draft to L.essce mailed or delivered to
Lessor or to said hank al any time during the last year of the original primary term hereof If such bank(or
any successor bank)should tail,liquidate or be succeeded by another bank,or for any reason fail or refuse
to accept payment,Lessee shall not be held in default for failure to make such payment until thirty(l0)days
after Lessor's delivery to Lessee ofa proper recordable instrument naming another bank as agent to receive
such payment.If,at the time this payment is made,various parties are entitled to specific amounts according
to Lessee's records,this payment may be divided between said parties and paid in the same proportion.
Should this option be exercised as herein provided,it shall be considered for all purposed as though this
lease originally provided fora primary temt of seven(7)years_In the event this lease is being maintained
by any other lease provisions at the expiration of the primary term,Lessee shall have a peritxl of thirty(30)
days from the date this lease ceases to be so maintained within which to exercise this option.If Lessee
exercises its option:o extend this lease.Lessee shall file notice thereof in the public records where the land
Is situated and provide to Lessor a copy thereof.failing which the option will temininate.
Two Hundred 1 wenty Five and noll 00 Dollars($'
•
Please Return To:
FORFE OIL COMPANY
8235 Douglas Ave,LB 27,STE 402
I rallzs,Texas 75225
•
IIIIII IIIII IIIIII IIIII IIIIII III IIIIIII III IIII�IIII IIII 5
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l blora,LL PmJ-Up:PooLug
utc, von)
211 OIL AND GAS LEASE
• This Lease Agreement(the"Lease")is entered into on U (the
"Effective Date")between Carlene Carlton Smith.a married worm deaalling in her sole
and separate property whose address is
27 N.West 981 Terrace Plantation,Florida 33324 ,the"Lessor"
(whether one or more)and FOREE Oil.COMPANY ,whose address is 82J5
DOUGLAS AVE.,STE 402,L.B.27 DALLAS,TX 75225 ,the"Lessee."
The Lessor, in consideration of Ten Dollars and other valuable consideration, the
receipt of which is acknowledged, and the covenants and agreements contained in this
Lease, grants, demises, leases and lets exclusively to Lessee, the land described below,
with the exclusive right for the purpose of mining, exploring by geophysical and other
methods, and operating for and producing oil (including, but not limited to,distillate and
condensate), gas (including, but not limited to casinghead gas and helium), and other
hydrocarbons of whatever nature or kind, and for laying pipelines, telephone and other
lines, and building tanks,power stations,gasoline plants,ponds,roadways and structures
to produce, save and take care of those products, and the exclusive right of injecting
water, brine and other fluids into subsurface strata, and any and all other rights and
privileges necessary, incident to, or convenient for the economical operation alone, or
conjointly with neighboring land, for the production,saving, taking care of,and selling all
substances produced, all that certain tract of land situated in WELD County,
Colorado,described as follows:
TOWNSHIP 10 NORTH,RANGE 62 WEST OF THE 6 P.M.,
SECTION ID:W2,NIA
SECTION II:NW4
TOWNSHIP 10 NORTH,R.ANCiF 63 WEST OF THE 6'"P.M.
SECTION I:Lot I (40.I I),2(41).34)3(40.56).SFN W,S2NE,N2SF
•
containing ' I.01 acres,more or less,which are referred to in this Lease as the"land,"
"lands." or' a premises."
I. II is agreed that this Lease shall remain in force for a term of five(5)_years from
this date(the": imary Tcnn")and as long thereafter as oil or gas of whatever nature .,r k nd is
produced from e !ease premises or oil acreage pooled or unitized with the lands, or drilling
operations are co'tinned as provided for in this Lease, If,at the expiration of the primary ten]of
this I.ease, oil o. gas is not being produced on the lease premises or on acreage pooled or
unitized with the gads but Lessee is then engaged in driliing or- taking operations, their this
Lease shall comic re in force so long as operations are being , measly prosecuted on the
lease premises or on acreage pooed or unitized with the to , and operations sha'1 be
considered to he eciitinuonsly prosecuted if not more than ninet) )days shall elapse between
the completion or rhandonmeni of one well and the beginning or orations for the drilling of a
subsequent well. It after discoeery of oil or gas on the land or on cage pooled or unitized with
the land.product Lon thereof should cease from any cause after the Imary Tenn,this Lease shall
not terminate. if Lei sec commences additional drilling or rework in operations within ninety(90)
days from the date if cessation of production or from the date of, repletion of a dry hole. Toil
or gas shall be dis. tvered and produced as a result of those operations a!or after the expiuttbm
of the Primary Term of this Lease, this Lease shall continue in force so long as od or gas is
produced from the lease premises or on acreage pooled or unitized with the lands.
2. This is a PAID-UP EASE. In consideration of the cash payment, (which payment is
accepted by Lessor as good and sufficient consideration for the rights granted to Lessee in this
Lease), Lessor agrees that Lessee shall not he obligated, except as otherwise provided, to
commence or continue any operations during the Primary Term. Lessee may at any time or times
during or after the Primary Tenn surrender this lease as to all or any portion of the land and as
to any strata or stratum by delivering to lessor or by filing for ecord a release or releases,and be
relieved of al:obligation accruing as to the acreage surrendered.
•
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3. As royalty,the Lessee covenants and agrees:
a. To deliver to the credit of Lessor, free of cost, in the pipeline to which
Lessee may connect wells on the land, the equal 20% part of all oil (including but
• not limited to condensate and distillate)produced and saved from the lease premises or at
Lessee's option, pay Lessor for the 20% royalty, the market price for oil of like
grade and gravity prevailing on the day the oil is run into the pipeline or into storage
tanks.
b. To pay Lessor for gas of whatever nature or kind (with all of its
constituents)produced and sold or used off the lease premises,or used in the manufacture
of products, 20% of the net proceeds realized by Lessee for the gas sold,used off the
premises, or used in the manufacture of products, the net proceeds to be less a
proportionate part of the production, severance, and other exercise taxes and costs
incurred by Lessee in delivering, processing, compressing, or otherwise making the gas
merchantable. Gas of any kind or nature unavoidably lost, or which may he used by
Lessee in any process in recovering oil or other liquid hydrocarbons from the lease
premises, or returned to the ground,whether through wells located on the lease premises
or elsewhere,shall not be deemed to have been sold or used off the lease premises within
the meaning,express or implied,of this Lease.
4. Where gas from a well capable of producing gas is not sold or used, Lessee may
pay or tender as royalty to the royalty owners One Dollar per year per net royalty acre
retained by this Lease, this payment or tender to be made on or before the anniversary
date of this lease next ensuing after the expiration of 90 days from the date such well is
shut in and thereafter on or before the anniversary date of this Lease during the period
such well is shut in. If the payment or tender is made, it will be considered that gas is
being produced within the meaning of this Lease.
5. If Lessor owns a lesser interest in the land than the entire and undivided fee
simple estate. then the royalties (including any shut-in gas royalty) provided for in this
Lease shall be paid to the Lessor only in the proportion which Lessor's interest beats to
the whole and undivided fee.
• 6. Lessee shall have the right to use, free of cost,gas, oil and water produced on the
land or on lands pooled or unitized with the land for Lessee's operations, except water
from the wells of Lessor.
7. When requested by Lessor, Lessee shall bury Lessee's pipeline below plow depth,
on cultivated lands.
8. No well shall he drilled nearer than 200 feet to the house or barn now on the land
without written consent of Lessor.
9. Lessee shall pay for dimages caused by Lessee's operations to growing crops on
the land.
l0. Lessee shall have the right at any time to remove all machinery and fixtures
placed on the land, including tile right to draw and remove casing.
I I. The rights of Lessor and Lessee may be assigned in whole or part. No change in
ownership of Lessor's interest (by assignment or otherwise) shall be binding on Lessee
until Lessee has been furnished with notice, consisting of'certified copies of all recorded
instruments or documents and other information necessary to establish a complete chain
of record title from Lessor, and then only with respect to payments later made. No other
kind of notice,whether actual or constructive,shall be binding on Lessee. No present or
future division of Lessor's ownership as to different portions or parcels of the land shall
operate to enlarge the obligations or diminish the rights of L.cssee, and all Lessee's
operations may be conducted without regard to any division. If all or any part of this
Lease is assigned, no leasehold owner shall be liable for any act or omission of any other
leasehold owner.
•
11IIIII IIIII 111(11 IIIII 111111 III 1111111 III IIIII IIII IIII 2
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12. Lessee, at its option, is given the right and power at any time and from time to
time as a recurring right,either before or after production,as to all or any part of the land
and as to any one or more formations, to pool or unitize the leasehold estate and the
• mineral estate covered by this Lease with other land, lease, or leases in the immediate
vicinity for the production of oil and gas,or separately for the production of either,when
in Lessee's judgment it is necessary or advisable to do so, and irrespective of whether
authority similar to this exists with respect to such other land, lease or leases. Likewise,
units previously formed to include formations not producing oil or gas, may be reformed
to exclude such non-producing formations. The forming or reforming of any unit shall be
accomplished by Lessee executing and filing of record a declaration of such unitization or
reformation, which declaration shall describe the unit. Any unit may include land on
which a well has been completed or on which operations for drilling have been
commenced. Production, drilling,or reworking operations or a well shut-in for want of a
market anywhere on a unit which includes all or a part of this Lease shall be treated as if
it were production,drilling,or reworking operations or a well shut-in for want of a market
under this Lease. In lieu of the royalties specified in this Lease, including shut-in gas
royalties. Lessor shall receive on production from the unit so pooled royalties only on the
portion of production allocated to this Lease; such allocation shall be that proportion of
the unit production that the total number of surface acres covered by this Lease and
included in the unit bears to the total number of surface acres in the unit. In addition to
the foregoing. Lessee shall have the right to unitize, pool, or combine all or any part of
the lands as to one or more of formations with other lands in the same general a-ea by
entering into a cooperative or unit plan of development or operation approved by any
governmental authority and, from time to time, with like approval, to modify, change or
terminate any plan or agreement and, in such event,the terms,conditions,and provisions
of this Lease shall be deemed modified to conform to the terms, conditions, and
provisions of the approved cooperative or unit plan of development or operation and,
particularly, all drilling and development requirements of this Lease,express or implied,
shall be satisfied by compliance with the drilling and development requirements of the
plan or agreement, and this lease shall not terminate or expire during the life of the plan
or agreement. In the event that all or any part of the lands shall be operated under any
cooperative or unit plan of development or operation by which the production from it is
allocated to different portions of the land covered by the plan, then the production
• allocated to any particular tract of land shall, for the purpose of computing the royalties to
be paid to Lessor,be regarded as having been produced front the particular tract of land to
which it is allocated and not to any other tract of land, and the royalty payments io he
made to Lessor shall be based on production only as so allocated. Lessor,if requested by
Lessee, shall have the obligation to formally express Lessor's consent to any cooperative
or unit plan of development or operation adopted by Lessee and approved by any
governmental agency and shall execute the same on request of Lessee_
11 All express or implied covenants of this Lease shall be subject to all Federal and
State Laws. Executive Orden. Rules or Regulations, and this Lease shall not he
terminated, in whole or in part, nor lessee held liable in damages, for failure to comply
with them, if compliance is prevented by,or if the failure is the result of,any Law, Order,
Rule or Regulation.
14. Lessor warrants and agrees to defend the title to the lands, and agrees that the
Lessee shall have the right at any time to redeem for Lessor,by payment,any mortgages,
taxes, or other liens on the lands, in the event of default of payment by Lessor and be
submgated to the rights of the holder,and Lessor agrees that any payment made by Lessee
for Lessor may be deducted from any amounts of money which may become due to the
Lessor under the terms of this Lease. The undersigned Lessors, for themselves and their
heirs, successors and assigns, surrender and release all right of dower and homestead in
the lease premises,insofar as the right of dower and homestead may in any way affect the
purposes for which this Lease is made,as recited in this Lease.
15. Should any one or more of the parties named as Lessor fail to execute this Lease,
it shall nevertheless he binding on all parties who do execute it as Lessor. The word
"Lessor," as used in this Lease, shall mean any one or more or all of the parties who
execute this Lease as Lessor. All the provisions of this Lease shall he binding on zhe
heirs,successors and assigns of Lessor and Lessee.
•
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l6. This Lease shall not he terminated, forfeited, or canceled for failure by Lessee to
perform in whole or in part any of its implied covenants,conditions, or stipulations until
• it shall have been first finally and judicially determined that the failure or default exists,
and then Lessee shall be given a reasonable time to correct any default so determined,or
at Lessee's election it may surrender the Lease with the option of reserving under the
terms of this Lease each producing well and forty(40)acres surrounding it as selected by
Lessee, together with the right of ingress and egress. Lessee shall not be liable in
damages for breach of any implied covenant or obligation.
17. No part of the surface of the lease premises shall, without the written consent of
the Lessee, he let, granted, or licensed by the Lessor to any other party for the erection,
construction, location or maintenance of structures, tanks, pits, reservoirs, equipment, or
machinery to be used for the purpose of exploring,developing or operating adjacent lands
for ml or gas.
18. Any and all payments permired or required to be made under the terms of this
Lease shall be made or tendered to the Lessor or to Lessor's r' credit in the
&Nit OF 1Q-�Vt?2ic4Hank (the depository hank) at PCf jrrf r' ON 6-or its
successor or successors, or any bank with which it may be merged, or consolidated, or
which succeeds to its business or assets or any part of then, by purchase or otherwise,
which shall continue as the depository bank regardless of changes in the ownership of the
land.
This Lease is executed as of the date of the acknowledgments below,but s}_atl be
deemed effective fur all purposes as of the Effective Date stated above.
Lessor
6 Cg:f2A esZtig
Carlene Carlton Smith
•
Individual Ac. towledgment
STATE OF rianda
COUNTY O; Zee
r/ � [m� was acknowledged befoill /�
e rOr- / , by
--
r'. yF_ JACOB w JONES No[ary ublic ii and for theState of 4;4 MY COMPASSION 4OO920694 Printed Name: �,ud] , p S
"'• a` EXPIRES August 27 2013 Commission Expires: //{.�?7„'otS
• J
IIIPIAIl1Mll11111111111III1111 4
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•
EXHIBIT"A"
()M ON 1O EXTEND PRIMARY FERN!FOR PA)o-L P LEASE(5+2):
• lessee is hereby given the option to extend the primary aria of this lease for an additional two(2)years
from the expiration of the original primary term hereof.This option may he exercised by Lessee at my time
during the last year of the original primary by paying the sum of Two Handled Twenty Five and no.I00
Dollars($225)per net mineral acre directly to Lessor at the above address.This payment shall be based
upon the number of net mineral acres then covered by this lease and not as such time being maintaired by
other provisions hereof This payment may be made by the cheek or draft to Lessee mailed or delivered to
Lessor or to said bank at any time during the last year of the original primary term hereof.If such hank(or
any successor bank)should fail liquidate or be succeeded by another bank,or for any reason fail or refuse
to accept payment,Lessee shall not be held in default ter failure to make such payment until thirty(30)days
after lessor's delivery to Lessee of a proper recordable instrument naming another bank as agent to receive
such payment.If,at the time this payment is made,various parties are entitled to specific amounts according
to Lessee's records,this payment may he divided between said parties and paid in the same proportion.
Should this option be exercised as herein provided,it shall be considered for all purposed as though this
lease originally provided for a primary term ofseven(7)years.In the event this lease is being maintained
by any other lease provisions at the expiration of:he primary term,Lessee shall have a period of thirty(30)
days from the date this lease ceases to he so maintained within which to exercise this option.If Lessee
exercises its option to extend this:ease,Lesser shall file notice thereof in the public records where the land
is situated and provide to Lessor a copy thereof',failing which the option will terminate.
Two Hundred 1 wentv Five and no/Inn Dollars I S2251
•
Please Return To:
FOREF OIL COMPANY
8235 Douglas Ave,LB 27,STE 402
Dallas,Texas 75225
e I
IIIIIII"IIGIIIIIIIIIIIIIIIIIIII I�IIIIIIIIIIIIIIIIIIIII 5
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•
Colo,ndo Paid.Up'Pwlmg
212
OIL AND GAS LEASE
•
This Lease Agreement(the"Lease")is entered into on/lc/71/4o (the
"Effective Date")between_Linnie McClure Cary / whose address is
18451 North Olga Dr. Alva,Florida 33920 ,the"Lessor"(whether one
or more)and FOREE OIL COMPANY ,whose address is 8235 DOUGLAS
AVE.,STE 402,LB.27 DALLAS,TX 75225 ,the"Lessee."
The Lessor, in consideration of Ten Dollars and other valuable consideration,the
receipt of which is acknowledged, and the covenants and agreements contained in this
Lease, grants, demises, leases and lets exclusively to Lessee, the land described below,
with the exc.usive right for the purpose of mining, exploring by geophysical and other
methods, and operating for and producing oil (including, but not limited to,distillate and
condensate), gas (including, but not limited to casinghead gas and helium), and other
hydrocarbons of whatever nature or kind, and for laying pipelines, telephone and other
lines, and building tanks, power stations,gasoline plants, ponds, roadways and structures
to produce, save and take care of those products, and the exclusive right of injecting
water, brine and other fluids into subsurface strata, and any and all other rights and
privileges necessary, incident to, or convenient for the economical operation alone, or
conjointly with neighboring land, for the production,saving,taking care of,and selling all
substances produced. all that certain tract of land situated in _WELD County.
Colorado,described as follows
TOWNSHIP 10 NORTH RANGE 62 WEST O1 THE6 P.M.,:
SECTION 10: W2,NE4
SECTION II: NW4
TOWNSHIP LO NORTH RANGE 63 WEST OF THE 6'h P.M.
SECTION I:Lots 1140.11).2(40.34)3(40.56),SENW,S2NE.N2SE
•
containing 961.01 acres. more or less,which are referred to in this Lease as the"land,"
"lands,"or"lease premises."
I. It is agueed that this Lease shall remain in force for a term of five(5) years from
this date(the"Primary Term")and as long thereafter as oil or gas of whatever nature or kind is
produced from the lease premises or on acreage pooled or unitized with the lands, or drilling
operations are continued as provided for in this Lease. If,at the expiration of the primary txrm of
this Lease, oil or gas is not being produced on the lease premises or on acreage pooled or
unitized with the lands but Lessee is then engaged in drilling or reworking operations, then this
Lease shall continue iii force so lung as operations are being continuously prosecuted t o the
;ease premises or on acreage pooled or unitized with the lands; and operations sin II he
considered to he continuously prosecuted if not more than ninety(90)days shall elapse between
the completion or abandonment of one well and the beginning of operations for the drilling of a
subsequent well. If after discovery of oil or gas on the land or on acreage pooled or unitized with
the land,production thereof should cease from any cause after the Primary Term,this Lease shall
not term:rune if Lessee commences additional drilling or reworking operations within ninety(90)
days from the date of cessation of production or from the date of completion of a dry hole. If oil
or gas shall be discovered and produced as a result of those operations at or after the expiration
of the Primary Tenn of this Lease, this I.ease shall continue in force so long as oil or as is
produced from the lease premises or on acreage pooled or unitized with the lands.
2. This is a PAID-UP LEASE. In consideration of the cash payment, (which paymciii is
accepted by Lessor as good and sufficient consideration for the rights granted to Lessee it this
Lease), Lessor agrees that Lessee shall not be obligated, except as otherwise provided, to
commence or continue any operations during the Primary Term. Lessee may at any time or times
during or after the Primary Tenn surrender this Lease as to all or any portion of the land and as
to ally strata or stratum by delivering to Lessor or by filing for record a release or releases,and be
• relieved of all obligation accruing as to the acreage surrendered.
I1111111111111111111111111111III1111111III11111It IIII 1
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•
3. As royalty,the Lessee covenants and agrees:
a. To deliver to the credit of Lessor, free of cost, in the pipeline to which
• Lessee may connect wells on the land, the equal_ 20% part of all oil (including but
not limited to condensate and distillate)produced and saved from the lease premises or at
Lessee's option, pay Lessor for the _ 20% royalty, the market price for oil of like
grade and gravity prevailing on the day the oil is run into the pipeline or into storage
tanks.
b. To pay lessor for gas of whatever nature or kind (with all of its
constituents)produced and sold or used off the lease premises,or used in the manufacture
of products, _20% of the net proceeds realized by Lessee for the gas sold,used off the
premises, or used in the marmfacture of products, the net proceeds to be less a
proportionate part of the production, severance, and other exercise taxes and costs
incurred by Lessee in de:ivering, processing, compressing, or otherwise making the gas
merchantable. Gas of any kind or nature unavoidably lost, or which may he used by
Lessee in any process in recovering oil or other liquid hydrocarbons from the lease
premises, or returned to the ground, whether through wells located on the lease premises
or elsewhere, shall not be deemed to have been sold or used off the:ease premises within
the meaning,express or implied,of this Lease.
4. Where gas from a well capable of producing gas is not sold or used, Lessee may
pay or tender as royalty to the royalty owners One Dollar per year per net royalty acre
retained by this I.ease, this payment or tender to be made on or before the anniversary
date of this lease next ensuing after the expiration of 90 days from the date such well is
shut in and thereafter on or before the anniversary date of this Lease during the period
such well is shut in. If the payment or tender is made, it will be considered that gas is
being produced within the meaning of this Lease.
5. If Lessor owns a lesser interest in the land than the entire and undivided fee
simple estate, then the royalties (including any shut-in gas royalty) provided for in this
Lease shall be paid to the Lessor only in the proportion which Lessor's interest bears to
the whole and undivided fee.• 6. Lessee shall have the right to use, free of cost,gas, oil and water produced on the
land or on lane's pooled or unitized with the land for Lessee's operations, except water
from the wells of Lessor.
7. When requested by Lessor,Lessee shall bury Lessee's pipeline below plow depth,
on cultivated lands.
8. No well shall be drilled nearer than 200 feet to the house or barn now on the land
without written consent r.: Lessor.
9. I essee shall pay tore damages caused by Lessee's operations to growing crops on
the land.
10_ Lessee shall have the right at any time to remove all machinery and fixtures
placed on the land,including the right to draw and remove casing.
11. The rights of Lessor and Lessee may be assigned in whole or part. No change in
ownership of Lessor's interest (by assignment or otherwise) shall he binding on Lessee
until Lessee has been furnished with notice,consisting of certified copies of all recorded
instruments or documents and other information necessary to establish a complete chain
of record title from Lessor, and then only with respect to payments later made. No other
kind of notice,whether actual or constructive, shall be binding on Lessee. No present or
future division of Lessor's ownership as to different portions or parcels of the :and shad
operate to enlarge the obligations or diminish the rights of Lessee, and all Lessee's
operations may be conducted without regard to any division. If all or any part of this
Lease is assigned,no leasehold owner shall be liable for any act or omission of any other
leasehold owner.
•
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12. Lessee, at its option, is given the right and power at any time and from time to
time as a recurring right,either before or after production,as to all or any part of the land
and as to any one or more formations, to pool or unitize the leasehold estate and the
• mineral estate covered by this Lease with other land, lease, or leases in the immediate
vicinity for the production of oil and gas,or separately for the production of either,when
in Lessee's judgment it is necessary or advisable to do so, and irrespective of whether
authority similar to this exists with respect to such other land, lease or leases. Likewise,
units previously formed to include formations not producing oil or gas, may be reformed
to exclude such non-producing formations. The forming or reforming of any unit shall be
accomplished by Lessee executing and filing of record a declaration of such unitization or
reformation, which declaration shall describe the unit. Any unit may include land on
which a well has been compacted or on which operations for drilling have been
commenced. Production, drilling,or reworking operations or a well shut-in for want of a
market anywhere on a unit which includes all or a pad of this Lease shall be treated as if
it were production,drilling,or reworking operations or a well shut-in for want of a market
under this Lease. In lieu of the royalties specified in this Lease, including shut-in gas
royalties. Lessor shall receive on production from the unit so pooled royalties only on the
portion of production allocated to this Lease; such allocation shall he that proportion of
the unit production that the total number of surface acres covered by this Lease and
included in the unit bears to the total number of surface acres in the unit. In addition to
the foregoing, Lessee shall have the right to unitize, pool, or combine a!! or any part of
the lands as to one or more of formations with other lands in the same general area by
entering into a cooperative or unit plan of development or operation approved by any
governmental authority and, front time to time, with like approval, to modify, change or
terminate any plan or agreement and, in such event,the terms, conditions,and provisions
of this Lease shall be deemed modified to conform to the terms, conditions, and
provisions of the 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 midi ing and development requirements of the
plan or agreement, and this lease shall not terminate or expire during the life of the plan
or agreement. In the event that all or any part of the lands shall be operated under any
cooperative or unit plan of development or operation by which the production from it is
allocated to different portions of the land covered by the plan, then the production
• allocated to any particular tract of land shall, for the purpose of computing the royalties to
be paid to Lessor,be regarded as having been produced from the particular tract of land to
which it is allocated and not to any other tract of land, and the royalty payments to he
made to Lessor shall be based on production only as so allocated. Lessor, if requested by
Lessee, shall have the obligation to formally express Lessor's consent to any cooperative
or unit plan of development or operation adopted by Lessee and approved by any
governmental agency and shall execute the same on request of Lessee_
13_ All express or implied covenants of this lease shall be subject to all Federal and
State Laws, Fxecutive Orders, Rules or Regulations, and this Lease shall net be
terminated. in whole or in part, nor Lessee held liable in damages, fur failure to comply
with them, if compliance is prevented by,or if the failure is the result of,any law,Order,
Rule or Regulation.
!4. Lessor warrants and agrees to defend the title to the lands, and agrees that the
Lessee shall have the right at any time to redeem for Lessor, by payment,any mortgages,
taxes, or other liens on the lands, in the event of default of payment by Lessor and be
suorogated to the rights of the holder,and Lessor agrees that any payment made by Lessee
for lessor may be deducted from any amounts of money which may become due to the
Lessor under the terms of this Lease. The undersigned Lessors, for themselves and their
heirs, successors and assigns, surrender and release all right of dower and homestead in
the lease premises, insofar as the right of dower and homestead may in any way affect the
purposes for which this Lease is made,as recited in this Lease.
15. Should any one or more of the parties named as Lessor fail to execute this Lease,
it shall nevertheless be binding on all parties who do execute it as Lessor. The word
"Lessor," as used in this Lease, shall mean any one or more or all of the parties who
execute this Lease as Lessor. All the provisions of this Lease shall be binding on the
{ heirs,successors and assigns of Lessor and Lessee.
1111111 PIll Ilifll 11111111111 III 1111111 III 111111111 VIII 3
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16. This Lease shall not be terminated, forfeited, or canceled for failure by Lessee to
pertirrm in whole or in part any of its implied covenants, conditions, or stipulations until
• it shall have been first finally and judicially determined that the failure or default exists,
and then Lessee shall be given a reasonable time to correct any default so determined,or
at Lessee's election it may surrender the Lease with the option of reserving under the
terms of this Lease each producing weal and forty(40)acres surrounding it as selected by
Lessee, together with the right of ingress and egress. Lessee shall not be lit ble in
damages for breach of any implied covenant or obligation.
17, No pan of the surface of the lease premises shall, without the written consent of
the Lessee, he let, granted, or licensed by the Lessor to any other party for the erection,
construction, location or maintenance of structures, tanks, pits, reservoirs, equipment, or
machinery to he used for the purpose of exploring,developing or operating adjacen.!ands
for oil or gas.
IS. Any and all payments permitted or required to he made under the terms of this
Lease shall be made or tendered to the Lessor or to Lessor's credit in the
Bank (the depository hank) at_.„.4,/ 7�„rte„yr-. or its
successor or successors, or any bank with which it may be merged, or consolidated, or
which succeeds to its business or assets or any part of them, by purchase or otherwise,
which shall continue as the depository bank regardless of changes in the ownership of the
land.
Ibis Lease is executed as of the date of the acknowledgments below, but shall be
deemed effective for all purposes as of the Effective Date stated above.
Lessor
ihed).<2c,
Lennie McClure Clary
•
Individual Acknowledgment
STATE OF_ cj _
COUNTY OF tee
The^� l ins/t/rime was acknowledged before me o /27/tO, by
tnnie a,C3&
7,rys. JAGOB W JONES Notary lie i nd fort e tatc of rl
.
MY COMMISSION tt 00920690 prime Name:
EXPIRES August 27.2013 Commission Expires:
' 9alY/�15ervct[gym
• 1
111111 Hill 1 1 1 1 1 1111111111111111111111 III 11111 1111 1111 4
3686212 001212010 1219P Weld County,CO
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•
EXHIBIT"A"
OPTION TO EXTEND PRIMARY TERM FOR PAID-UP LEASE(5+21:
• Lessee is hereby given the option to extend the primary term of this lease for an additional two(2)years
from the expiration of the original primary term hereof This option may he exercised by Lessee at any time
during the:ast year of the original primary by paying the sum of Two Hundred Twenty Five and moll 00
Dollars($225)per net mineral acre directly to Lessor at the above address.This payment shall be bred
upon the number of net mineral acres then covered by this lease and riot ax such time being maintained by
other provisions hereof.This payment may be made by the check or draft to Lessee mailed or deliveted to
Lessor or to said bank at any time during the last year of the original primary term hereof If such bin k(or
any successor hank)should fail,liquidate or be succeeded by another bank,or for any reason fail or refuse
to accept payment,Lessee shall not he held in default for failure:o make such payment until thirty(in)days
after Lessor's delivery to Lessee of a proper recordable instrument naming another hank as agent to receive
such payment.If at the time this payment is made,various parties are entitled to specific amounts according
to Lessee's records,this payment may be divided between said parties and paid in the same proportion.
Should this option be exercised as herein provided,it shall be considered for all purposed as though this
lease originally provided for a primary term of seven(7)years.In the event this lease is being maintained
by any other lease provisions at the expiration of the primary term,Lessee shall have a period of thirty(30)
days from the date this lease ceases to be so maintained within which to exercise this option.It Lessee
exercises its option to extend this lease,Lessee shall file notice thereof in the public records where the land
is situated and provide to Lessor a copy thereof failing which the option will terminate.
Two Ilunebed Twenty Five and moll 0(1 Dollars($225)
•
Please Return To:
FORF.E Olt.COMPANY
8235 Douglas Ave,LB 27,STE 402
Dallas,Texas 75225
•
1111111 I I I I 1111111 I I I I I111111 I I 11111111 I I I I I I I I I N I I I I I 5
3686212 04112/2010 12:29P Weld County,CO
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HIP 11111I11111111111IIII IIIII 111111III111111111111
3691025 05/04/2010 01:52P Weld County, CO
cAdd.do r.rd-L p'roornx 1 nt 5 R 26.00 D 0.00 Steve Moreno C err&Recorde•
(Re 0 on
025 01L AND GAS LEASE
• This Lease Agreement(the"Lease")is entered into on tl-S-ID (the
"Elective Date")between Bryan Welch,a married roan dealing in his sole and separate
property whose address is Siff,
W0 S. 4) ,2s00,41,coat',;, d ,tie"Lessor„
(whether one or more)and PUREE OIL C MPA Y ,whose address is 8235
DOUGLAS AVE.,STE 402 L.B.27 DALLAS,TX 75225 ,the"Lessee."
The Lessor, in consideration of Ten Dollars and other valuable consideration, the
receipt of which is acknowledged, and the covenants and agreements contained in this
Lease, grants, demises, leases and lets exclusively to Lessee, the land described below,
with the exclusive right for the purpose of mining, exploring by geophysical and other
methods- and operating for and producing oil (including,but not limited to,distillate and
condensate), gas (including, hte not limited to casinghead gas and helium), and other
hydrocarbons of whatever nature or kind, and for laying pipelines, telephone and other
lines,and building tanks. power stations,gasoline plants,ponds,roadways and structures
to produce, save and take care of those products, and the exclusive right of injecting
water, brine and other fluids into subsurface strata, and any and all other rights and
privileges necessary, incident to. or convenient for the economical operation alone, or
conlointl v with neighboring land- for the production,saving,taking care of,and selling all
substances produced, all that certain tract of land situated in WELD County,
Colorado,described as follows:
TOWNSHIP 10 NORTH,RA NGE 62 WEST OF THE 6 P.M -
SECTION 10:W2,NE4
SECTION I I:NW4
TOWNSHIP 10 NORTH,RANGE 63 WEST OF THE 6"'P.M.
SECTION 1 Lots I (40.11).2(40.34)3(40 56) SENW,S2NE,N2SE
)
•
containing_961 01 acres.more or less,which are referred to in this Lease as the"land,"
"lands,"or"I. e premises." -
I. I1 is a' ed that this Lease shall remain in force for a to of live(5) years from
this date(the mmart'Terns")and as long thereafter as oil or ge f whatever nature or kind is
produced from tc lease premises or on acreage pooled or unity ' with the lands. or ',riling
operations arc , ntinued as provided for ill this Lease If,at the es atioc of the primary tern of
this Lease, oil r gas is not being produced on the lease pre n. -s or on acreage pooled or
en`tined with u. • lands but Lessee is den engaged in drilling or r. orking opera:ions,then.this
Lease shall cot..ince in force so lung as operations arc being cs inuously prosecuted on the
lease premises or on acreage pooled or unitized with the is .; and operations shall be
considered to be continuously prase„.al if not more than ninety ')days shall elapse between
the crnuple:ion or abandonment of one well and the beginning of, •:rations for the drilling of a
subsequent well. If after discoccry of oil or gas on the:and or on a cage pooled or unitized with
the land,production thereof ,mid cease from any cause after the , mary Tenn,this Lease shall
not terminals if Lessee con mws additional di or reworki u' ,rations within ninety(90)
days horn the date of cessa, n of production or from the date of completion of a dry hole. [f oil
or gas shall he discovered I produced as a result of those operations at or after the expiation
of the Primary Term of th Lease, this Lease shall continue in :ore', so long as oil or gas is
produced from the lease pn ses or on acreage pooled or unitized ' ilh the lands.
2 This is a PAID-La' LEASE In consideration of the cash payment, (which payment is
accepted by Lessor as good and sufficient consideration for the rights granted to Lessee in this
Lease). Lessor agrees that lessee shall cot he obligated, except as otherwise provided, to
commence or continue any operations do ing the Primary Tenn. lessee may at any time or limes
during or alter the Prmary Term surrender this Lease as to all or any portion of the land and as
• to any strata or stratum by delivering to Lessor or by filing for record a release or releases,and be
relieved of all obligation accruing as to the acreage surrendered.
r
3. As royalty,the Lessee covenants and agrees:
d
o a. To deliver to the credit of Lessor, free of cost, in the pipeline to which
cte
• — cc Lessee may connect wells on the land,the equal 20% part of all oil (including but
�;cers nor limited to condensate and distillate)produced and saved from the lease premises or at
Lessee's option, pay Lessor for the 20% royalty, the market price for oil of like
g: grade and gravity prevailing on the day the oil is run into the pipeline or into storage
g tanks.
_i-o
f
�a d b. To pay lessor for gas of whatever nature or kind (with all of its
=,"o ti constituents)produced and sold or used off the lease premises,or used in the manufacture
o 0 of products, 20% of the net proceeds realized by Lessee for the gas sold, usee off the
'1°10G premises, or used in the manufacture of products, the net proceeds to be less a
=_e proportionate part of the production, severance, and other exercise taxes and costs
Sao incurred by Lessee in delivering, processing, compressing, or otherwise making the gas
merchantable. Gas of any kind or nature unavoidably lost, or which may be used by
�,r,� Lessee in any process in recovering oil or other liquid hydrocarbons from the lease
umB premises or returned to the ground,whether through wells located on the lease premises
or elsewhere,shall not he deemed to have been sold or used off the lease premises within
the meaning,express or implied,of this Lease.
. Where gas from a well capable of producing gas is not sold or used, Lessee may
pay or tender as royalty to the royalty owners One Dollar per year per net royalty acre
retained by this Lease, this payment or tender to be made on or before the anniversary
date of this Lease next ensuing after the expiration of 90 days from the date such well is
shut in and thereafter on or before the anniversary date of this Lease during the period
such well is shut in- If the payment or tender is made, it will be considered that gas is
being produced within the meaning of this Lease
5. If Lessor owns a lesser interest in the land than the entire and undivided fee
simple estate, then the royalties (including any shut-in gas royalty) provided for in this
Lease shall be paid to the Lessor only in the proportion which Lessor's interest bears to
• the whole ant'undivided fee.
6_ Lessee: tall have the right to use, free of cost,gas, oil and water produced on the
land or on land: pooled or unitized with the land for Lessee's operations, except water
from the wells of Lessor.
7. Whet 'quested by Lessor, Lessee shall bury Lessee's pipeline below plow depth,
on cultivated ids.
8. No vv shall be drilled nearer than 200 feet to the house or barn now on the land
without writs 2nnsent of Lessor.
9. Lesser tall pay for damages caused by Iessee's operations to growing crops on
the land.
10. Lessee tall have the right at any time to remove all machinery and fixtures
placed on the tai, ',including the right to duns, and remove casing.
I 1 The rights .f Lessor and Lessee may be assigned in whole or part. No charge in
ownership of Lessor's interest (hy assignment or otherwise) shall be binding on Lessee
until Lessee has been furnished with notice, consisting of certified copies of all recorded
instruments or documents and other information necessary to establish a complete chain
of record title from Lessor, and then only with respect to payments later made. No other
kind of notice, whether actual or constructive, shall be binding on Lessee. No present or
future division of I.essor'r ownership as to different portions or parcels of the land shall
operate to enlarge the obligations or diminish the rights of Lessee, and all Lessee's
operations may be conducted without regard to any division. If all or any part of this
Lease is assigned.no leasehold owner shall he liable for any act or omission of any other
leasehold owner.
•
2
12. Lessee, at its option, is given the right and power at any time and from time to
time as a recurring right,either before or after production,as to all or any part of:he land
and as to any one or more formations, to pool or unitize the leasehold estate and the
• P mineral estate covered by this Lease with other land, lease, or leases in the immediate
d vicinity for the production of oil and gas,or separately for the production of either, when
er in Lessee's judgment it is necessary or advisable to do so, and irrespective of whether
CCe
authority similar to this exists with respect to such other land, lease or leases. Likewise,
Z:11" units previously formed to include formations not producing oil or gas,may be reformed
Wai g to exclude such non-producing formations. the forming or reforming of any unit shall be
o o accomplished by Lessee executing and filing of record a declaration of such unitization or
f reformation, which declaration shall describe the unit. Any unit may include land on
_ which a well has been completed or on which operations for drilling hate been
"
--!ncommenced. Production, drilling,or reworking operations or a well shut-in for want of a
—'S market anywhere on a unit which includes all or a part of this Lease shall be treated as if
eo it were production,drilling,or reworking operations or a well shut-in for want of a mark el
=$ under this Lease. In lieu of the royalties specified in this Lease, including shut-in gas
e royalties. Lessor shall receive on production from the unit so pooled royalties only on the
'� `2 portion of production allocated to this Lease; such allocation shall he that propo lion of
the unit production that the total number of surface acres covered by this Lease and
s included in the unit bears to the total number of surface acres in the unit. In addition to
c> the foregoing- Lessee shall have the right to unitize, pool, or combine all or any part of
the lands as to one or more of formations with other lands in the same general area by
entering into a cooperative or unit plan of development or operation approved by any
governmental authority and, from time to time, with like approval, to modify, change or
terminate any plan or agreement and, in such event, the terms,conditions,and provisions
of this Lease shall be deemed modified to conform to the terms, conditions, and
provisions of the approved cooperative or unit plan of development or operation and,
particularly, all drilling and development requirements of this lease, express or implied,
shall be satisfied by compliance with the drilling and development requirements of the
plan or agreement, and this I.case shall not terminate or expire during the life of the plan
or agreement. In the event that all or any part of the lands shall be operated under any
cooperative or unit plan of deve:opntent or operation by which the production from it is
allocated to different portions of the land covered by the plan, then the production
• allocated to any particular tract of land shall,for the purpose of computing the royalties to
he paid to Les r,be regarded as having been produced from the particular tract of land to
which it is a; ated and not to any other tract of land, and the royalty payments to he
made to Less. shall be based on production only as so allocated. Lessor,if requested by
Lessee. shall ye the obligation to formally express Lessor's consent to any cooperative
or unit pin • development or operation adopted by Lessee and approved by any
governmci ency and shall execute the same on request of Lessee.
13. All e.' ,ss or implied covenants of this Lease shall be subject to all Federal and
State Latcs, _ecutive Orders, Rules or Regulations, and this Lease shall not be
terminated, .hole or in part, nor Lessee held liable in damages, for failure to comply
with them, .npliance i.s prevented by. or if the failure is the result of,any Law,Order,
Rule or Rego ...Jon.
14. Lessor warrants ' agrees to defend the title to the lands, and agrees that the
lessee shall have the rig rt any time to redeem for Lessor, by payment, any mortgages,
taxes, or other liens on lands, in the event of default of payment by lessor and be
subrogated to the rights r he holder. and Lessor agrees that any payment made by Lessee
for Lessor may be dedut I from any amounts of money which may become due te, the
Lessor under the terms o ris Lease. "fhe undersigned Lessors, for themselves and their
heirs, successors and assi is, surrender and release all right of dower and homestead in
the lease premises, insofa' is the right of dower and homestead may in any way affect the
purposes for which this Lease is made,as recited in this Lease.
15. Should any one or more of the parties named as Lessor fail to execute this Lease,
it shad nevertheless be binding on all parties who do execute it as Lessor. The word
"Lessor," as used in this Lease, shall mean any one or more or all of the parties who
execute this: lease as Lessor. .All the provisions of this Lease shall be binding on the
heirs,successors and assigns of Lessor and Lessee.
•
3
16. This Lease shall not be terminated, forfeited, or canceled for failure by Lessee to
amm a perform in whole or in part any of its implied covenants, conditions, or stipulations until
'g, it shall have been first finally and judicially determined that the failure or default exists,
• o.e and then Lessee shall be given a reasonable time to correct any default so detcrn fined,or
o"y at Lessee's election it may surrender the Lease with the option of reserving under the
��, terms of this Lease each producing well and forty(40)acres surrounding it as selected by
,g Lessee, together with the right of ingress and egress. Lessee shall not be liable in
damages for hreach of any implied covenant or obligation.
�3d
=o.y 17. No part of the surface of the lease premises shall, without the written co asent of
the Lessee, he let, granted, or licensed by the Lessor to any other party for the erection,
? construction, location or maintenance of structures, tanks, pits, reservoirs, equipment, or
a�o machinery to he used for the purpose of exploring,developing or operating adjacent lands
for oil or gas.
� Any
y and all payments permitted or required to be made under the terms of this
an Lease shall be made or tendered to the Lessor or to Lessor's credit in the
� a Bank (the depository bank) at _ or its
successor or successors, or any bank with which it may be merged, or consolidated, or
which succeeds to its business or assets or any part of them, by purchase or otherwise,
which shall continue as the depository bank regardless of changes in the ownership of the
land.
This Lease is executed as of the date of the acknowledgments below,but :dial: he
deemed effective for all purposes as of the Effective Date stated above.
Lessor
Bryan Werth —.
•
Individual Acknowledgmen:
STATE OF r/or[d'o-
COUNTY OF 149t'
Tae instrument was acknowledged before me on 7/.5 //C, by
Notary Public in and for the State of_re. ,
Printed Name: /'Cv fy K Fes ic
Commission Expires: //,///2-VII _ .
;,::°•.,• MARY ICTESTA
4 lra Notary MAR •Sit Florida
My Commisolon agree Ape 21,7011
:,,4/ Commission A AC 637553
Boxed Ter**Ntcn Nntory kwl.
•
4
1111111111111110111111110111111111111III lilt VIII Ill
3691025 05/04/2010 01:52P Weld County, CO
5 of 5 R 26,00 D 0,00 Steve Moreno Clerk&Recorder
EXHIBIT"A"
OPTION ID EXTEND PRIMARY I ERM FOR PAID-UP t EASE L5+21:
• Lessee is hereby given the option to extend the primary term m of tins(ease for an additional two(2) years
limn the aspiration of the original primary term hereof.l his opt r may be exert t std by I essee at any time
during the last year of the original primary by pitying the sam of Two Hundred Twenty Five and no/100
Dollars]225)per net mineral acre directly to Lessor at the above address This payment shall be based
upon the number of net mineral acres then covered by this:ease and not as such time being maintained by
other pros isions hereof This payment may be made by the check or draft to Lessee mailed or delivered to
Lessor or'to said bank at any time during the last year of the original primary term hereof.If such bank(or
any successor bank)should tad,liquidate or he succeeded by another bank,or for any reason fail or refuse
to accept payment,Lessee shall nut be held in default for failure to make such payment until thirty(30)days
after Lessor's delivery to Lesser of a proper recordable instrument naming another bank as agent to receive
such payment.If)at the time this payment is made,various parties are entitled to specific amounts according
to Lessees records,this payment may he divided between said parties and paid in the same propon on.
Should this option be exercised as herein provided,it shall be considered for all purposed as thong)this
lease originally pros ided for a primary tern of seven(7)years.In the event this lease is being main aimed
by any other lease provisions at the expiration of the pr_nary term,Lessee shall have a period of thirty(30)
days flout the date this lease ceases to he so nmintatted within which to exercise this option.If Lessee
exercises its option to extend this lease.Lessee shall file notice thereof in the public records where the land
is situated and provide to Lessor a copy theme tailing which the option will terminate.
Two IlunSgni Twenty Five and no'100 Dollars($225)
•
Please Return To:
FOREE OIL COMPANY
8235 Douglas Ave,LB 27,STE 402
Dallas,Texas 75225
•
5
�liii!11111 111111111111 IDi 11111111111 III 1111111111111
026 Colorado PaidlJp/Po,otng 3691026 05/04/2010 01:52P Weld County. CO
q/99) 1 of 5 R 26.00 0 0.00 Steve Moreno Clerk&Recorder
OIL AND GAS LEASE
• ft 31
on This Lease Agreement(the"Lease")is entered into on p?oi O (the Effective
between Elena Gooch,a married woman dealing in her sole and separate
property whose address is 1939 Bayview Dr Tierra Verde,Florida 33715 ,the
"Lessor"(whether one or more)and FOREE OIL COMPANY ,whose address is
8235 DOUGLAS AVE.,STE 402,L.B.27 DALLAS,TX 75225 ,the"Lessee."
The Lessor, in consideration of Ten Dollars and other valuable consideration,the
receipt of which is acknowledged, and the covenants and agreements contained in this
Lease, grants, demises, leases and lets exclusively to Lessee, the land described below,
with the exclusive right for the purpose of mining, exploring by geophysical and other
methods,and operating for and producing oil(including,but not limited to,distillate and
condensate), gas (including, but not limited to casinghead gas and helium), and other
hydrocarbons of whatever nature or kind, and for laying pipelines, telephone and other
lines,and building tanks,power stations,gasoline plants,ponds,roadways and stntctures
to produce, save and take care of those products, and the exclusive right of infecting
water, brine and other fluids into subsurface strata, and any and all other rights and
privileges necessary, incident to, or convenient for the economical operation alone, or
conjointly with neighboring land, for the production, saving, taking care of, and selling
all substances produced, all that certain tract of land situated in WELD County,
Colorado,described as follows:
TOWNSHIP 10 NORTH,RANGE 62 WEST OF THE 6 P.M.,:
SECTION In:W2,NE4
SECTION II:NW4
TOWNSHIP II)NORTH,RANGE 63 WEST OF TI IE e P.M.
SECTION I:Lots 1 (40.1 I),2(40.34)3(40.56),SEN W,S2NE,N2SE
•
containing 961.01 acres,more or less,which are referred to in this Lease as the"land,"
"lands,"or"lease premises."
1. It is agreed that this Lease shall remain in force for a term of five(5) years front
this date(the"Primary Tenn") and as long thereafter as oil or gas of whatever nature or kind is
produced from the lease premises or on acreage pooled or unitized with the lands, or drilling
operations are continued as provided for in this Lease. If,at the expiration of the primary term of
this Lease,oil or gas is not being produced on the lease premises or on acreage pooled or unitized
with the lands but Lessee is then engaged in drilling or reworking operations, then this Lease
shall continue in force so long as operations are being continuously prosecuted on the lease
premises or on acreage pooled or unitized with the lands;and operations shall be considered to be
continuously prosecuted if not more than ninety(90)days shall elapse between the completion or
abandonment of one well and the beginning of operations for the drilling of a subsequent well. if
after discovery of oil or gas on the land or on acreage pooled or unitized with the land,production
thereof should cease from any cause after the Primary Term, this Lease shall not terminate if
Lessee commences additional drilling or reworking operations within ninety(90)days from the
date of cessation of production or from the date of completion of a dry hole. If oil or gas shall he
discovered and produced as a result of those operations at or after the expiration of the Primary
Temm of this Lease,this Lease shall continue in force so long as oil or gas is produced from the
lease premises or on acreage pooled or unitized with the lands.
2. This is a PAID-UP LEASE. In consideration of the cash payment, (which payment is
accepted by Lessor as good and sufficient consideration for the rights granted to Lessee in this
Lease), Lessor agrees that Lessee shall not be obligated, except as otherwise provided, to
commence or continue any operations during the Primary Term. Lessee may at any lime or times
during or after the Primary Term surrender this Lease as to all or any portion of the land and as to
any strata or stratum by delivering to lessor or by filing for record a release or releases,and be
• relieved of all obligation accruing as to the acreage surrendered.
1
3. As royalty,the Lessee covenants and agrees:
mom d
E• a. To deliver to the credit of Lessor, free of cost, in the pipeline to which=--- e Lessee may connect wells on the land,the equal 20% part of all oil (including but
x not limited to condensate and distillate)produced and saved from the lease premises or at
z._ Lessee's option, pay Lessor for the 20% royalty, the market price for oil of like
o c grade and gravity prevailing on the day the oil is run into the pipeline or into storage
REIM an= tanks.
um.df
„
b. 'I'o pay Lessor for gas of whatever nature or kind (with all of its
Cn_
,�r,w constituents)produced and sold or used off the lease premises,or used in the manufacture
"�o 0 of products, 20% of the net proceeds realized by Lessee for the gas sold,used off the
a premises, or used in the manufacture of products, the net proceeds to he less a
'�e� proportionate part of the production, severance, and other exercise taxes and costs
o incurred by Lessee in delivering, processing, compressing, or otherwise making the gas
Co« merchantable. Gas of any kind or nature unavoidably lost, or which may be used by
mo,o°c Lessee in any process in recovering oil or other liquid hydrocarbons from the lease
irst
o premises,or returned to the ground, whether through wells located on the lease premises
go cm or elsewhere,shall not be deemed to have been sold or used off the lease premises within
the meaning,express or implied,of this Lease,
4. Where gas from a well capable of producing gas is not sold or used, Lessee may
pay or tender as royalty to the royalty owners One Dollar per year per net royally acre
retained by this Lease, this payment or tender to he made on or before the anniversary
date of this Lease next ensuing after the expiration of 90 days from the date such well is
shut in and thereafter on or before the anniversary date of this Lease during the period
such well is shut in. If the payment or tender is made, it will be considered that gas is
being produced within the meaning of this Lease.
5. If Lessor owns a lesser interest in the land than the entire and undivided fee
simple estate, then the royalties (including any shut-in gas royalty)provided for in this
Lease shall be paid to the Lessor only in the proportion which Lessor's interest hears to
• the whole and undivided fee.
6. Lessee shall have the right to use, free of cost,gas,oil and water produced on the
land or on lands pooled or unitized with the land for Lessee's operations, except water
from the wells of Lessor.
7. When requested by Lessor,Lessee shall bury Lessee's pipeline below plow depth,
on cultivated lands.
8. No well shall be drilled nearer than 200 feet to the house or barn now on the land
without written consent of Lessor.
9. Lessee shall pay for damages caused by Lessee's operations to growing crops on
the land.
10. Lessee shall have the right at any time to remove all machinery and fixtures
placed on the land,including the right to draw and remove casing.
II. The rights of Lessor and Lessee may be assigned in whole or part. No change in
ownership of Lessor's interest(by assignment or otherwise) shalt he binding on Lessee
until Lessee has been furnished with notice,consisting of certified copies of all recorded
instruments or documents and other information necessary to establish a complete chain
of record title from Lessor,and then only with respect to payments later made. No other
kind of notice, whether actual or constructive,shall be binding on Lessee. No present or
future division of Lessor's ownership as to different portions or parcels of the land shall
operate to enlarge the obligations or diminish the rights of Lessee, and all Lessee's
operations may be conducted without regard to any division. If all or any part of this
Lease is assigned,no leasehold owner shall be liable for any act or omission of any other
leasehold owner.
•
2
12. Lessee, at its option, is given the right and power at any time and from time to
- ts time as a recurring right,either before or after production,as to all or any part of the land
c and as to any one or more formations, to pool or unitize the leasehold estate and the
• _ ¢ mineral estate covered by this Lease with other land, lease, or leases in the immediate
aim-0'a vicinity for the production of oil and gas,or separately for the production of either,when
Cz in Lessee's judgment it is necessary or advisable to do so, and irrespective of whether
__ O authority similar to this exists with respect to such other land, lease or leases. Likewise,
d units previously formed to include formations not producing oil or gas,may be reformed
fto exclude such non-producing formations. The forming or reforming of any unit shall be
accomplished by Lessee executing and filing of record a declaration of such unitization
.2 or reformation,which declaration shall describe the unit. Any unit may include land on
moo which a well has been completed or on which operations for drilling have been
o commenced. Production,drilling,or reworking operations or a well shut-in for want of a
o 0 market anywhere on a unit which includes all or a part of this Lease shall be treated as if
-ao it were production, drilling, or reworking operations or a well shut-in for ward of a
mem
o to market under this Lease. In lieu of the royalties specified in this Lease,including shut-in
momcc gas royalties. Lessor shall receive on production from the unit so pooled royalties only
=g"' on the portion of production allocated to this Lease; such allocation shall be that
� � proportion of the unit production that the total number of surface acres covered by this
Lease and included in the unit hears to the total number of surface acres in the unit. In
addition to the foregoing, Lessee shall have the right to unitize, pool, or combine all or
any part of the lands as to one or more of formations with other lands in the same general
arca by entering into a cooperative or unit plan of development or operation approved by
any governmental authority and,from time to time,with like approval,to modify,change
or terminate any plan or agreement and, in such event, the terms, conditions, and
provisions of this Lease shall be deemed modified to conform to the terms, conditions,
and provisions of the 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 development requirements of the
plan or agreement,and this Lease shall not terminate or expire during the life of the plan
or agreement. In the event that all or any part of the lands shalt be operated under any
cooperative or unit plan of development or operation by which the production from it is
• allocated to different portions of the land covered by the plan, then the production
allocated to any particular tract of land shall, for the purpose of computing the royalties
to be paid to Lessor, be regarded as having been produced from the particular tract of
land to which it is allocated and not to any other tract of land,and the royalty payments
to be made to Lessor shall he based on production only as so allocated. Lessor, if
requested by Lessee, shall have the obligation to formally express Lessor's consent to
any cooperative or unit plan of development or operation adopted by Lessee and
approved by any governmental agency and shall execute the same on request of Lessee.
13. All express or implied covenants of this Lease shall be subject to all Federal and
State Laws, Executive Orders, Rules or Regulations, and this Lease shall not be
terminated, in whole or in part, nor Lessee held liable in damages, for failure to comply
with them,if compliance is prevented by,or if the failure is the result of,any Law, Order,
Rule or Regulation.
14. Lessor warrants and agrees to defend the title to the lands, and agrees that the
Lessee shall have the right at any time to redeem for Lessor,by payment,any mortgages,
taxes, or other liens on the lands, in the event of default of payment by Lessor and be
subrogatcd to the rights of the holder, and Lessor agrees that any payment made by
Lessee for Lessor may he deducted from any amounts of money which may become due
to the Lessor under the terms of this Lease. The undersigned Lessors, for themselves and
their heirs, successors and assigns, surrender and release all right of dower and
homestead in the lease premises,insofar as the right of dower and homestead may in any
way affect the purposes for which this Lease is made,as recited in this Lease.
15. Should any one or more of the parties named as Lessor fail to execute this Lease,
it shall nevertheless be binding on all parties who do execute it as Lessor. The word
"Lessor," as used in this Lease, shall mean any one or more or all of the parties who
execute this Lease as Lessor. All the provisions of this Lease shall be binding on the
• heirs,successors and assigns of Lessor and Lessee.
3
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3691026 05/04/2010 D1:52P Weld County. CO
4 of 5 R 26.00 D 0.00 Steve Moreno Clerk&Recorder
16. This [.ease shall not he terminated, forfeited,or canceled for failure by lessee to
perform in whole or in part any of its implied covenants,conditions,or stipulations until
• it shall have been first finally and judicially determined that the failure or default exists,
and then Lessee shall be given a reasonable time to correct any default so determined,or
at Lessee's election it may surrender the Lease with the option of reserving under the
terms of this Lease each producing well and forty(40)acres surrounding it as selected by
Lessee, together with the right of ingress and egress. Lessee shall not be liable in
damages for breach of any implied covenant or obligation.
17. No part of the surface of the lease premises shall,without the written consent of
the Lessee, be let, granted,or licensed by the Lessor to any other party for the erection,
construction,location or maintenance of structures,tanks,pits,reservoirs,equipment,or
machinery to be used for the purpose of exploring, developing or operating adjacent
lands for oil or gas.
18. Any and all payments permitted or required to be made under the terms of this
Lease shall b made or tendered to the Lessor or to Lessor's credit in the
Bank (the depository bank) at - NA or its
successor or successors, or any bank with which it may be merged, or consolidated, or
which succeeds to its business or assets or any pail of them, by purchase or otherwise,
which shall continue as the depository bank regardless of changes in the ownership of the
land.
This Lease is executed as of the date of the acknowledgments below,but shall he
deemed effective for all purposes as of the Effective Date stated above.
Lessor
Elena Gooch
•
Individual Acknowledgment
STATE OF V\chq
COUNTY OF
The instrument was acknowledged before me on 'I / i 3/ /d, by
\1.g___curoaV.
Notary Public in and for the State of . 1o?/,(A,4-
Printed Name:�rbo-dy, ScLtt dr r
Commission Expires: 3-a4-Ac t 4
•
4
HOUND Ell MIMI III litIlllI I 3691026 05/04/2010 01:71e Weld County,CD
53609;0256
of 5 R 26.00 D 0.00 Steve Moreno Clerk 8 Recorder
EXHIBIT-A"
• OPTION TO EXTEND PRIMARY TERM FOR PAID-UP LEASE(5+21:
Lessee is hereby given the option to extend the primary term of this lease for an additional two(2)years
from the expiration of the original primary term hereof.This option may be exercised by Lessee at:ny
time during the last year of the original primary by paying the sum of Two Hundred Twenty Five and
no/l00Dollars($2251per net mineral acre directly to Lessor at the above address.This payment shall be
based upon the number of net mineral acres then covered by this lease and not as such time being
maintained by other provisions hereof.This payment may he made by the check or draft to Lessee mailed
or de:ivered to Lessor or to said bank a:any time during the last year of the original primary term hereof.If
such bank(or any successor bank)should fail,liquidate or be succeeded by another bank,or for any reason
fail or refuse to accept payment,Lessee shall not be held in default for failure to make such payment until
thirty(30)days after Lessor's delivery to Lessee of a proper recordable instrument naming another bank as
agent to receive such payment.If,at the time this payment is made,various parties are entitled to specific
amounts according to Lessee's records,this payment may be divided between said parties and paid in the
saute proportion.Should this option he exercised as herein provided,it shall be considered for all purposed
as though this lease originally provided for a primary term of seven(7)years.In the event this lease is
being maintained by any other lease provisions at the expiration of the primary term,Lessee shall have a
period of thirty(30)days from the date this lease ceases to be so maintained within which to exercise this
option.If Lessee exercises its option to extend this lease,Lessee shall file notice thereof in the puhb.c
records where the land is situated and provide to Lessor a copy thereof,failing which the option will
terminate.
Two Hundred Twenty Five and no/I00 Dollars($2251
•
Please Rclurn Ta.
FOREE OIL COMPANY
8235 Douglas Ave,LB 27,STE 402
Dallas,Texas 75225
•
5
I11111111111 Il/I!!III!!!IN 1111 1111$!II!1111411111
Up g 16 of 057 R026 00 010 0 0.00 7 52P Weld Steve MorrenoaC Cowry,
&Recorder
<--„e,�nan Paid c,:'Pooling
027 ot., won,
OIL AND GAS LEASE
This Lease Agreement(the"Lease")is entered into on ,�-,3010 (the
"Effects e Date")between Sherrie Welch Walker Westberry,a married woman dealing
in her sole and separate property whose address is
a..2-02) Wes\-bur' F4 Iri ens Fl 13 to! ,the
"Lessor"(whether one or more)and FOREE OIL COMPANY ,whose address is
8235 DOUGLAS AVE. STE 402, L.B. 27 DALLAS,TX 75225 ,the"Lessee."
The Lessor, in consideration of Ten Dollars and other valuable consideration, the
receipt of which is acknowledged, and the covenants and agreements contained in this
Lease, grants, demises, leases and lets exclusively to Lessee, the land described below,
with the exclusive right for the purpose of mining, exploring by geophysical and other
methods, and operating for and producing oil (including,but not limited to, distillate and
condensate), gas (including, but not limited to casinghead gas and helium), and other
hydrocarbons of whatever nature or kind, and for laying pipelines, telephone and other
lines,and building tanks,power stations,gasoline plants, ponds,roadways and structures
to produce, save and take care of those products, and the exclusive right of injecting
water, brine and other fluids into subsurface strata, and any and all other rights and
privileges necessary, incident to, or convenient for the economical operation alone, or
conjointly with neighboring land,for the production,saving,taking care of;and selling all
substances produced, all that certain tract of land situated in WELD County,
Colorado,described as follows:
TOWN.SHfP 10 NORTH,RANGE 62 WEST OF THE 6 P.M.,:
SECTION 10: W2,NE4
SECTION II: NW4
TOWNSHIP I0 NORTH RANGE 63 WEST OF THE 6h P.M.
SECTION :: Lois 1 (40.111.2(40.34)3(40.56),SFNW,S2NE,N2SF:
•
containing 961.01 acres,more or less,which are referred to in this Lease as the"land;"
"lands."or"lease premises."
I. It is agreed that this Lease shall remain in force for a term of five(5) years from
this date (the"Primary Tan")and as long thereafter as oil or gas of whatever nature or kind is
produced nom the Icasc premises or on acreage pooled or unitized with the lands, or d-thing
operations are continued as provided for in this Lease. I[at the expiration of the primary term of
this I case, oil or gas is not being produced on the (ease premises or on acreage pooled or
unitized with the lands hut Lessee is then engaged in drilling or reworking operations, then this
Lease shall continue in three so long as operations are being continuously prosecuted en the
lease premises or on acreage ,xsoled or unitized with the lands: and operations shell be
considered to he continuously prosecuted if not more than ninety(90)days shall Lapse between
the completion or abandonment of one well and the beginning of operations for the drilling of a
subsequent well. If after discovery of oil or gas on the land or on acreage pooled or unitize()with
the land.production thereof should cease from any cause after the Primary Tenn,this Lease shall
not ice:n in ate if Lessee commences additional drilling or_eworking operations within ninet) (90)
days from the date of cessation of production or from the date of completion of a dry hole. If oil
or gas shall he discovered and produced as o result of those operations at or after the expiration
of the Primary Term of this Lease, this Lease shall continue in force so long as oil or gas is
prod aced from the lease premises or on acreage pooled or unitized with the lands.
2. This is a PAID-UP LEAST In consideration of the cash payment, (which payment is
accepted by Lessor as good and sufficient consideration for the rights granted to Lessee in this
Lease). Lessor agrees that Lessee shall not he obligated, except as otherwise provided, to
commence or continue any operations during the Primary Term. Lessee may at any time or t roes
during or after the Primary 'arm surrender this Lease as to all or any portion of the land and as
to any strata or stratum by delivering to Lessor or by filing for record a release or releases,and be
relieved of all obligation accruing a.,to the acreage surrendered.
Er. IL
s
.:� ' 3. As royalty,the Lessee covenants and agrees:
ao.p
uY a. To deliver to the credit of Lessor, free of cost, in the pipeline to which
• a4 II may connect wells on the land, the equal_20%_ part of all oil (including but
o not limited to condensate and distillate)produced and saved from the lease premises or at
�j
��o o Lessee's option, pay Lessor for the 20% royalty, the market price for oil of like
mmtif grade and gravity prevailing on the day the oil is run into the pipeline or into storage
-d tanks.
h_ To pay Lessor for gas of whatever nature or kind (with al' of its
Sc constituents)produced and sold or used off the lease premises,or used in the manufacture
es, of products, 20% of the net proceeds realized by 1.;ssee for the gas sold,used off the
og premises. or used in the manufacture of products, the net proceeds to be less a
Eiji so
Q proportionate pan of the production, severance, and other exercise taxes and costs
Minim incurred by Lessee in delivering, processing, compressing, or otherwise making the gas
merchantable. Gas of any kind or nature unavoidably lost, or which may he used by
hos en
Lessee in any process in recovering oil or other liquid hydrocarbons from the lease
premises. or returned to the ground,whether through wells located on the lease premises
or elsewhere, shall not be deemed to have been sold or used off the lease premises within
the meaning,express or implied,of this Lease.
4_ Where gas from a well capable of producing gas is not sold or used, lessee may
pay or tender as royalty to the royalty owners One Dollar per year per net royalty acre
retained by this Lease, this payment or tender to be made on or before the anniversary
date of this Lease next ensuing after the expiration of 90 days from the date such well is
shut in and thereafter on or before the anniversary dale of this Lease during the period
such well is shut in. If the payment or tender is made, it will be considered that gas is
being produced within the meaning of this Lease.
5. If Lessor owns a lesser interest in the land than the entire and undivided fee
simple estate then the royalties (including any shut-in gas royalty) provided for in this
Lease shall be aid to the lessor only in the proportion which Lessor's interest hears to
the whole and 1u divided fee.
• 6. I . see shall have the right to use, free of cost,gas,oil and water produced on the
land or r lands pooled or unitized with the land for Lessee's operations, except water
front the wells of Lessor.
7 When guested by Lessor, Lessee shall bury Lessee's pipeline below plow depth,
on cultivated 1:. ds.
8 No well s .1 be drilled nearer than 200 feet to the house or barn now on the land
without written e cat of Lessor.
9_ Lessee sh; i pay for damn'es caused by Lessee's operations to growing crops on
the hind.
10. Lessee sh have :he right at any tine to remove all machinery and fixtures
placed on the lane ncluding the right to draw ut remove easing_
I I. The rights Lessor and I see may be .tsssgned in nole or part. No change in
ownership of Less s interest , assignment in otherwise hall be binding on l.essee
until Lessee has be L furnished with notice,con.isting of e tried copies of all recorded
instruments or document and other information necessary k' establish a complete chain
of record title from Les, and then on! with respect to payments later made. No other
kind of notice, whether tat or coosut._t. shall be binding on Lessee. No present or
future division of Less, ownership as to different portions or parcels of the land shall
operate to enlarge the .gations or diminish the rights of Lessee, and all Lessee's
operations may be conducted without regard to any division. If all or any part of this
Lease is assigned,no leasehold owner shall be liable for any act or omission of any other
leasehold owner.
•
2
0 12. Lessee, at its option, is given the right and power at any time and from time to
S o time as a recurring right,either before or after production,as to all or any part of the land
cand as to any one or more formations, to pool or unitize the leasehold estate and the
• �,ew mineral estate covered by this Lease with other land, lease, or leases in the immediate
vicinity for theproduction of oil andgas,or separately for the production of either, when
z2 p' Y
2 in Lessee's judgment it is necessary or advisable to do so, and irrespective of whether
- E authority similar to this exists with respect to such other land,lease or leases. Likewise,
rag:d units previously formed to include formations not producing oil or gas, may be reformed
▪ co to exclude such non-producing formations. The forming or reforming of any unit shall be
Ise
omire grit accomplished by Lessee executing and tiling of recoal a declaration of such unitization or
.�.Qo reformation, which declaration shall describe the unit. Any unit may include land on
which a weal has been completed or on which operations for drilling base been
.'So commenced. Production,drilling.or reworking operations or a well shut-in for want of a
S marker anywhere on a unit which includes all or a part of this Lease shall be treated as if
1.-2
c rt were production,drilling,or reworking operations or a well shut-in for want of a market
—°e under this Lease. In lieu of the royalties specified in this Lease, including shut-in gas
=o i° royalties. Lessor shall receive on production from the unit so pooled royalties only on the
�at�a portion of production allocated to this Lease; such allocation shah he that proportion of
the unit production that the to:al number of surface acres covered by this Lease and
included in the unit bears to the total number of.surface acres in the unit. In addition to
the foregoing, Lessee shall have the right to unitize, pool, or combine all or any part of
the lands as to one or more of formations with other lands in the same general area by
entering into a cooperative or unit plan of development or operation approved by any
governmental authority and, from time to time, with like approval, to modify, change or
terminate any plan or agreement and, in such event,the terms,conditions, and provisions
of this Lease shall be deemed modified to conform to the terms, conditions, and
provisions of the approved cooperative or unit plan of development or operatics and,
particularly, all drilling and development requirements of this Lease, express or implied,
shall be satisfied by compliance with the drilling and development requirements of the
plan or agreement, and this Lease shall not terminate or expire during the life of the plan
or agreement. In the event that all or any part of the lands shall be operated under any
cooperative or unit plan of development or operation by which the production from it is
allocated to different portions of the land covered by the plan, then the production
• allocated to any particular tract or land shall,for the purpose of computing the royalties to
be paid to Lessor,be regarded as having been produced from the particular tract of:and to
which it is allocated and not to any other tract of land, and the royalty payments to be
made to Lessor shall be based on production only as so allocated. Lessor,if requested by
Lessee, shall have the obligation to formally express lessor's consent to any cooperative
or unit plan of development or operation adopted by Lessee and approved by any
governmental agency and ,II execute the same on request of Lessee.
13. All express or in, ed covenants of this Lease shall be subject to all Federal and
State Laws, Executive tiers, Rules or Regulations, and this Lease shall not he
terminated, in whole or •art, nor Lessee held liable in damages, for failure to comply
with them, if compliance prevented by,or if the failure is the result of,any Law,Order,
Rule or Regulation.
14. Lessor warrants ..t agrees to defend the title to the lands, and agrees that the
Lessee shall have the rig.:; •t any time to redeem for Lessor,by payment,any mortgages,
taxes. or other liens on ti - lands, in the event of default of payment by Lessor and he
subrogated to the rights o; ire holder,and Lessor agrees that any payment made by Lessee
for Lessor may be deduct.d from any amounts of money which may become due to the
Lessor under the terms of this Lease. The undersigned Lessors, for themselves and their
heirs, successors and assigns, surrender and release all right of dower and homestead in
the lease premises,insofar as the right of dower and homestead may in any way affect the
purposes for which this Lease is made,as recited in this Lease.
15. Should any one or more of the parties named as Lessor fail to execute this Lease,
it shall nevertheless be binding on all parties who do execute it as Lessor. The word
"Lessor" as used in this Lease, shall mean any one or more or all of the parties who
execute this Lease as Lessor. All the provisions of this lease shall he binding on the
heirs,successors and assigns of lessor and Lessee.
•
3
1111111II II1IIII111111111111111111111III IIIII111111
3691027 05104/2010 01:52P Weld County, CO
4 of 5 R 26.00 D 0.00 Steve Moreno Clerk&Recorder
16. This Lease shall not he terminated, forfeited, or canceled for failure by Lessee to
perform in whole or in part any of its implied covenants,conditions, or stipulations until
• it shall have been first finally and judicially determined that the failure or default exists,
and then Lessee shall he given a reasonable time to correct any default so determined,or
at Lessee's election it may surrender the Lease with the option of reserving under the
terms of this Lease each producing well and forty(40)acres surrounding it as selected by
Lessee, together with the right of ingress and egress. Lessee shall not be hable in
damages for breach of any implied covenant or obligation.
17. No part of the surface of the lease premises shall, without the written consent of
the Lessee, be let, granted, or licensed by the Lessor to any other party for the erection,
construction, location or maintenance of structures, tanks, pits, reservoirs, equipment, or
machinery to be used for the purpose of exploring,developing or operating adjacent lands
for oil or gas.
18. Ally and all payments permitted or required to be made under the terms of this
Lease shall be made or tendered to the Lessor or to Lessor's credit in the
Bank (the depository bank) at or its
successor or successors. or any bank with which it may be merged, or consolidated, or
which succeeds to its business or assets or any part of them, by purchase or otherwise,
which shall continue as the depository bank regardless of changes in the ownership of the
land.
This Lease is executed as of the date of the acknowledgments below, but shall be
deemed effective for all purposes as of the Effective Date stated above.
Lessor
20d VS'
4041-e da/40
Sherrie Welch Walker Westberry
• �.
Individual Acknowled menu
STATE OP F/fir./r11i
COUNTY OF / C (Tr
The instrument was acknowledged before me on O8/35//O. by
fgl�.L*-7 h QJ,jAee lies r(SEeey
J
Notary Public in and for the State o ifyoel.cmt
Printed Name:
Commission Expires:
AV*. SUSAN G.KELLUM
r3 Ccnunissim A DO 880783
• Expires September 18.2013
ewe so b7beeeeeNo wee
•
4
I III!!!111111111II IIIIII����IIIII IIIIII III i 111!�V! lII
3691027 05/04/2010 01:52P Weld County, CO
5 of 5 R 26.00 D 0.00 Steve Moreno Clerk 8 Recorder
EXHltllf"A"
OPTION TO EXTEND PRIMARY 1ERN1 FOR PAID-UP LEASE I S t 21
• Lessee Is hereby given the option to extend the primary term of this lease for an additional two(21 years
from the expiration of the original pro nary term hereof ibis option may be exercised by Lessee at my time
during the last year of the original prinw:y by paying the s:m of Two Hundred Twenty Fite and no225
Dollars IS 225)per net mineral acre directly to Lessor at the above address.This payment shall be based
upon the number of net mineral acres then covered by this lease and not as such time being maintai led by
other provisions hereof.This payment may he made by the check or draft to Lessee mailed or delivered to
Lessor or to said bank at any time during the last year of the original primary term hereof If such bank(or
any successor hank)should fail.liquidate or be succeeded by another bank,or for any reason fai:or refuse
to accept payment,Lessee shall not be held in default for failure to make such payment until thirty(30)days
utter Lessor's delivery to Lessee of proper recordable instrument naming another hank as agent to receive
such payment.If,at the time this payment is made,various parties are entitled to specific amounts according
to Lessee's records,this payment may be divided between said panics and paid in the amne purport on.
Should this option be exercised as hercm provided,it shall be considered for all purposed as though this
lease originally provided for a printery term of seven(7)years.In the evert this:ease is being maintained
by any other lease pro'lions at the expiration of the printery term,Lessee shall have a period of!Ili ay(3(1)
days lion'the date this lease ceases 0 he so maintained within which to exercise this option.if I essee
exercises its option to extend this lease-Lessee shall file notice thereof in the public records whet e the lard
is Situated and provide to Lessor it copy thereof failing which the option will terminate.
twit Ha od:ed Twenty Five and nwi 00 Dollars l$?25)
•
Please Return To:
FOREE OIL COMPANY
8235 Douglas Ave,LB 27,STE 402
Dallas,Texas 75225
5
HIE111111En 111111 Ilfl111111IIIII III11111 It IIII
Colorado Paid-llp/Pooting 3691028 05/04/2010 01:52P Weld County, CO
028 (Rev 9/99) 1 ci 5 R 26.00 0 0.00 Steve Morena Clerk&Recorder
OIL AND GAS LEASE
• This Lease Agreement(the"Lease")is entered into on yoiv (the
"Effective Date")between Joe Orville McClure ,whose address is_
7070 Penzance Blvd Fort Myers,PI 33912 ,the"Lessor"(whether one or more)
and FOREE OIL COMPANY ,whose address is 8235 DOUGLAS AVE.,STE
402 LB.27 DALLAS,TX 75225 ,the"Lessee."
The Lessor, in consideration of Ten Dollars and other valuable consideration,the
receipt of which is acknowledged, and the covenants and agreements contained in this
Lease, grants, demises, leases and lets exclusively to Lessee, the land described below,
with the exclusive right for the purpose of mining, exploring by geophysical and other
methods,and operating for and producing oil(including,but not limited to,distillate and
condensate), gas (including, but not limited to casinghead gas and helium), and other
hydrocarbons of whatever nature or kind, and for laying pipelines, telephone and other
lines,and building tanks,power stations,gasoline plants,ponds.roadways and structures
to produce. save and take care of those products, and the exclusive right of injecting
water, brine and other fluids into subsurface strata, and any and all other rights and
privileges necessary, incident to, or convenient for the economical operation alone, or
conjointly with neighboring land,for the production,saving,taking care of,and selling all
substances produced, all that certain tract of land situated in _ WELD. County,
Colorado,described as follows:
TOWNSHIP 10 NORTH,RANGE 62 WEST OF TIIE 6nr P.M.,:
SECTION 10: W2,NE4
SECTION I I:NW4
TOWNSHIP 10 NORTH,RANGE 63 WEST OF THE 6111 P.M.,:
SECTION I: Lots I (40.1 I),2(40.34),3(40.56),SENW,S2NE,N2SE
•
containing 961.01 acres,more or less,which are referred to in this Lease as the"laid,"
"lands,"or"lease premises."
1. It is agreed that this Lease shall remain in force for a term of five 15) years from
this date(the"Primary Term")and as long thereafter as oil or gas of whatever nature or kind is
produced from the lease premises or on acreage pooled or unitized with the lands, or drilling
operations are continued as provided for in this Lease. If,al the expiration of the primary term of
this lease, oil or gas is not being produced on the lease premises or on acreage pooled or
unitized with the lands but Lessee is then engaged in drilling or reworking operations,then this
Lease shall continue in force so long as operations are being continuously prosecuted on the
lease premises or on acreage pooled or unitized with the lands; and operations shall he
considered to be continuously prosecuted if not more than ninety(90)days shall elapse between
the complct on or abandonment of one well and the beginning of operations for the drilling of a
subsequent well, If after discovery of oil or gas on the land or on acreage pooled or unitized with
the land,production thereof should cease from any cause after the Primary Term,this Lease shall
not terminate if Lessee commences additional drilling or reworking operations within ninety(90)
days from the date of cessation of production or from the date of completion of a dry hole. If oil
or gas shall be discovered and produced as a result of those operations at or after the expiration
of the Primary Tenn of this [.ease, this Lease shall continue in force so long as oil or gas is
produced from the lease premises or on acreage pooled or unitized with the lands.
2. This is a PAID-UP LEASE. In consideration of the cash payment, (which payment is
accepted by Lessor as good and sufficient consideration for the rights granted to Lessee i i this
Lease), Lessor agrees that Lessee shall not be obligated, except as otherwise provided, to
commence or continue any operations during the Primary Term. Lessee may at any time or times
during or after the Primary Term surrender this Lease as to all or any portion of the land and as
to any strata or stratum by delivering to Lessor or by filing for record a release or releases,and he
relieved of all obligation accruing as to the acreage surrendered.
411
3. As royalty,the Lessee covenants and agrees:
air. 17
✓m.-
a. To deliver to the credit of lessor, free of cost, in the pipeline to which
- m Lessee may connect wells on the land, the equal 20% part of all oil (including but
Imm err Y not limited to condensate and distillate)produced and saved from the lease premises or at
Lessee's option, pay Lessor for the 20% royalty, the market price for oil of like
d grade and gravity prevailing on the day the oil is run into the pipeline or into storage
- g tanks.
=3g
▪ d b. To pay Lessor for gas of whatever nature or kind (with all of its
=l▪ ilt' constituents)produced and sold or used off the lease premises,or used in the manufacture
8 of products, 20% of the net proceeds realized by Lessee for the gas sold,used off the
w oo premises, or used in the manufacture of products, the net proceeds to be less a
proportionate part of the production, severance, and other exercise taxes and costs
- o a: incurred by Lessee in delivering, processing, compressing, or otherwise making the gas
�°s merchantable. Gas of any kind or nature unavoidably lost, or which may be used by
MOM
•••=1 co us Lessee in any process in recovering oil or other liquid hydrocarbons from the lease
—rag:a premises,or returned to the ground,whether through wells located on the lease premises
N or elsewhere,shall not be deemed to have been sold or used off the lease premises within
the meaning,express or implied,of this Lease.
4. Where gas from a well capable of producing gas is not sold or used,Lessee may
pay or tender as royalty to the royalty owners One Dollar per year per net royalty acre
retained by this tease, this payment or tender to be made on or before the anniversary
date of this Lease next ensuing after the expiration of 90 days from the date such well is
shut in and thereafter on or before the anniversary date of this Lease during the period
such well is shut in. If the payment or tender is made, it will be considered that gas is
being produced within the meaning of this Lease.
5. If Lessor owns a lesser interest in the land than the entire and undivided fee
simple estate, then the royalties (including any shut-in gas royalty) provided for it this
Lease shall be paid to the Lessor only in the proportion which Lessor's interest bears to
• the whole and undivided fee.
6. Lessee shall have the right to use, free of cost, gas,oil and water produced on the
land or on lands pooled or unitized with the land for Lessee's operations, except water
from the wells of Lessor.
7. When requested by Lessor,Lessee shall bury Lessee's pipeline below plow depth,
on cultivated lands.
8. No well shall be drilled nearer than 200 feet to the house or barn now on the land
without written consent of Lessor.
9. Lessee shall pay for damages caused by Lessee's operations to growing crops on
the land.
1Q Lessee shall have the right at any time to remove all machinery and fixtures
placed on the land,including the right to draw and remove casing.
11. The rights of Lessor and Lessee may be assigned in whole or part. No change in
ownership of lessor's interest (by assignment or otherwise) shall be binding on lessee
until Lessee has been furnished with notice,consisting of certified copies of all recorded
instruments or documents and other information necessary to establish a complete chain
of record title from lessor,and then only with respect to payments later made. No other
kind of notice,whether actual or constructive, shall be binding on Lessee. No present or
future division of lessor's ownership as to different portions or parcels of the land shall
operate to enlarge the obligations or diminish the rights of Lessee, and all Lessee's
operations may he conducted without regard to any division. If all or any part of this
Lease is assigned,no leasehold owner shall he liable for any act or omission of any other
• leasehold owner.
2
- a 12. Lessee, at its option, is given the right and power at any time and from time to
ctime as a nicuning right,either before or after production,as to all or any part of the land
mom
gax and as to any one or more formations, to pool or unitize the leasehold estate and the
• 1 mineral estate covered by this Lease with other land, lease, or leases in the immediate
vicinity for the production of oil and gas,or separately for the production of either,when
ice
�a C in Lessee's judgment it is necessary or advisable to do so, and irrespective of whether
of authority similar to this exists with respect to such other land,lease or leases. Likewise,
=3 E units previously formed to include formations not producing oil or gas,may be reformed
CO to exclude such non-producing formations. The forming or reforming of any unit shall he
�o g accomplished by Lessee executing and tiling of record a declaration of such unitization or
mmo reformation, which declaration shall describe the unit. Any unit may include land on
ma.o0 which a well has been completed or on which operations for drilling have been
•
- el o o commenced. Production,drilling,or reworking operations or a well shut-in for want of a
i o market anywhere on a unit which includes all or a part of this Lease shall be treatec as if
g Nrc
it were production,drilling,or reworking operations or a well shut-in for want of a market
--- under this Lease. In lieu of the royalties specified in this Lease, including shut-in gas
- ro royalties. Lessor shall receive on production from the unit so pooled royalties only on the
portion of production allocated to this Lease; such allocation shall be that proportion of
the unit production that the total number of surface acres covered by this Lease and
included in the unit hears to the total number of surface acres in the unit. In addition to
the foregoing, Lessee shall have the right to unitize, pool, or combine all or any part of
the lands as to one or more of formations with other lands in the same general area by
entering into a cooperative or unit plan of development or operation approved by any
governmental authority and, from time to time.with like approval, to modify,change or
terminate any plan or agreement and,in such event,the terms,conditions,and provisions
of this Lease shall be deemed modified to conform to the terms, conditions, and
provisions of the 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 development requirements of the
plan or agreement,and this Lease shall not terminate or expire during the life of the plan
or agreement. in the event that all or ally part of the lands shall be operated under any
cooperative or writ plan of development or operation by which the production from it is
• allocated to different portions of the land covered by the plan, then the production
allocated to any particular tract of land shall,for the purpose of computing the royalties to
be paid to Lessor,be regarded as having been produced from the particular tract of Iand to
which it is allocated and not to any other tract of land, and the royalty payments to be
made to Lessor shall he based on production only as so allocated. Lessor,if requested by
Lessee, shall have the obligation to formally express Lessor's consent to any cooperative
or unit plan of development or operation adopted by Lessee and approved by any
governmental agency and shall execute the same on request of Lessee.
13. All express or implied covenants of this lease shall be subject to all Federal and
State Laws, Executive Orders, Rules or Regulations, and this Lease shall not he
terminated, in whole or in part, nor Lessee held liable in damages, for failure to comply
with them,if compliance is prevented by,or if the failure is the result of,any law,Order,
Rule or Regulation.
14. lessor warrants and agrees to defend the title to the lands, and agrees that the
Lessee shall have the right at any time to redeem for Lessor,by payment,any mortgages,
taxes, or other liens on the lands, in the event of default of payment by lessor and be
subrogated to the rights of the holder,and Lessor agrees that any payment made by Lessee
for Lessor may be deducted from any amounts of money which may become due to the
Lessor under the terms of this Lease. The undersigned Lessors, for themselves and their
heirs, successors and assigns, surrender and release all right of dower and homestead in
the lease premises,insofar as the right of dower and homestead may in any way affzet the
purposes for which this Lease is made,as recited in this Lease.
15. Should any one or more of the parties named as Lessor fail to execute this Lease,
it shall nevertheless be binding on all parties who do execute it as Lessor. The word
"lessor," as used in this Lease, shall mean any one or more or all of the parties who
execute this Lease as Lessor. All the provisions of this Lease shall be binding on the
• heirs,successors and assigns of Lessor and Lessee.
3
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3691028 05/04/2010 01:52? Weld County,CO
4 al 5 R 26.00 0 0.00 Steve Moreno Clerk&Recorder
16. This Lease shall not be terminated,forfeited,or canceled for failure by Lessee to
perform in whole or in part any of its implied covenants,conditions,or stipulations until
• it shall have been first finally and judicially determined that the failure or default exists,
and then Lessee shall be given a reasonable time to correct any default so determimxl,or
at Lessee's election it may surrender the Lease with the option of reserving under the
terms of this Lease each producing well and forty(40)acres surrounding it as selected by
Lessee, together with the right of ingress and egress. Lessee shall not he liable in
damages for breach of any implied covenant or obligation.
17. No part of the surface of the lease premises shall, without the written consent of
the Lessee, be let, granted,or licensed by the Lessor to any other party for the erection,
construction, location or maintenance of structures,tanks,pits, reservoirs, equipment,or
machinery to be used for the purpose of exploring,developing or operating adjacent lands
for oil or gas.
18. Any and all payments permitted or required to be made under the terms of this
Lease shall be made or tendered to the Lessor or to Lessor's credit in the
Bank (the depository bank) at or its
successor or successors, or any bank with which it may be merged, or consolidated, or
which succeeds to its business or assets or any pan of them, by purchase or otherwise,
which shall continue as the depository bank regardless of changes in the ownership of the
land.
This Lease is executed as of the date of the acknowledgments below,but shall be
deemed effective for all purposes as of the Effective Date stated above.
Lessor
nfir l{��
oe ) rville McClure
•
Individual Acknowledgment
STATE OF fl.e it//? —_
COUNTY OF/IZ. ._._
The instrument was acknowledged bef me on '≤7//a22//,‘° by
eF/[//E./ii/2/eim
o ary tc in for e St e ofrite/it
, , I MnrAtw Printed Name: se
ent t(b s Commission Expires:At e-;rice
•
4
1111111 11111 II1111 IIIIII IV!HIV 11111 It!1111111111111
3691028 05/04/2010 01:52P Weld County, CO
5 of 5 R 26.00 D 0.00 Steve Moreno Clerk 8 Flecorder
EXHIBIT"A"
• OPTION TO EXTEND PRIMARY TERM FOR PAID-UP LEASE(5+2):
Lessee is hereby given the option to extend the primary lemi of this lease for an additional two(2)years
from the expiration of the original primary term hereof.This option may be exercised by Lessee at any time
during the last year of the original primary by paying the sum of Two Hundred Twenty Five and no/IC0
Dollars_( 2251per net mineral acre directly to Lessor at the above address.This payment shall be based
upon the number of net mineral acres then covered by this lease and not as such time being maintainer by
other provisions hereof This payment may be made by the check or draft to Lessee mailed or delivered to
lessor or to said hank at any time during the last year of the original primary term hereof if such bank(or
any successor bank)should fail,liquidate or be succeeded by another bank,or for any reason fail or refuse
to accept payment,Lessee shall not be held in default for failure to make such payment until thirty(30)days
after Lessor's delivery to Lessee of a proper recordable instrument naming another bank as agent to receive
such payment.If.at the time this payment is made,various parties are entitled to specific amounts according
to Lessee's records,this payment may be divided between said parties and paid in the same proportion.
Should this option be exercised as herein provided,it shall be considered for all purposed as though this
lease originally provided for a primary term of seven(7)years.In the event this lease is heing maintained
by any other lease provisions at the expiration of the primary term,l essee shall have a period of thirty(30)
days from the date this lease ceases to he so maintained within which to exercise this option.If Lessee
exercises its option to extend this lease.Lessee shall file notice thereof in the public records where the land
is situated and provide to Lessor a copy thereof,failing which the option will terminate.
Two Hundred Twenty Five and no/100 Dollars($225)
•
Please Return DI
PORES OIL COMPANY
5235 Douglas Ave,LB 27,STE 402
Dallas,Texas 75225
•
5
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Colorado P:gym-ur,pommy 3691029 05/04/2010 01:52P Weld County,CO
(129 IHn.WOO, 1 of 5 R 26.00 0 0.00 Steve Moreno Clerk&Recorder
OIL AND GAS LEASE
• This Lease Agreement(the"Lease")is entered into on 1/-5--%Q, (the
"Effective Date")between Robert Wheeler Welch Jr.,a married man dealing in his sole
and separate property whose address is .��1 3J�9�
*'ve e£, &n®2 tStJ/ 71 f arm: ,the"Lessor„
(whether one or more)and FOREE OIL COMPANY ,whose address is 8235
DOUGLAS AVE.,STE 402,I.B.27 DALLAS,TX 75225 ,the"Lessee."
The Lessor, in consideration of Ten Dollars and other valuable consideration,the
receipt of which is acknowledged, and the covenants and agreements contained in this
Lease, grants, demises, leases and lets exclusively to Lessee, the land described below,
with the exclusive right for the purpose of mining, exploring by geophysical and other
methods, and operating for and producing oil (including, but not limited to,distillate and
condensate), gas (including, but not limited to casinghead gas and helium), and other
hydrocarbons of whatever nature or kind, and for laying pipelines, telephone and other
lines,and building tanks, power stations,gasoline plants,ponds, roadways and structures
to produce, save and take care of those products, and the exclusive right of injecting
water, brine and other fluids into subsurface strata, and any and all other rights and
privileges necessary, incident to, or convenient for the economical operation alone, or
conjointly with neighboring land,for the production,saving,taking care of,and selling all
substances produced, all that certain tract of land situated in WELD County,
Colorado.described as follows:
TOWNSHIP 10 NORTH RANGE 62 WEST OF THE 6 P.M.,:
SECTION !0:W2, NE4
SEC DON II:NW4
TOWNSHIP 10 NORTH. ,NGE 63 WEST OF THE 6°P.M.
SECTION L Lots 1 (40.11 `(40.34)3(40.56),SENN',S2NE,N2SE
•
containing 961.91 acres,more or less,which are referred to in this Lease as the"land,"
-lands."or''Ic a premises..
I. It is agre,d that this Lease shall remain in force for a term of live t5) years from
this date (the'Pri, ry Penn") and as long Ihereager as oil or gas of whatever nature or hind is
produced from the 'Sc premises or on acreage pooled or unitized with the lands, or drilling
operations are cent ed as pre .ded for in this Lease. If,at the expiration of the primary term of
this Lease, oil or is no, rig produced on the (ease premises or on acreage pooled or
unitized with the Ia, but Last, is then engaged in drilling or reworking operations, then this
Luse shall continue n lot so long as operations are being continuously prosecuted on the
lease premises or on ac .e pooled or unitized with the lands; and operations shall be
considered to be continu, prosecuted it not more than ninety(90)days shall elapse between
the completion or aban dm nt of one well and the beginning of operations for the drilling of a
subsequent well. It after .'very of oil or gas on the land or on acreage pooled or unitized with
the lard_production the/ Mould cease from any ease after the Primary Term,this Lease shall
not terminate if lessee a, rotes additional drilling or reworking operations within ninety(90)
days from the date of cess, n of production or from the date of completion of a dry hole. If oil
or gas shall he discovered I produced as a result of those operations at or after the expiration
of Inc Primary Tenn of !.ease, this Lease shall continue in force so long as oil or gas is
produced from the lease I' rises or on acreage pooled or unitized with the lands.
2. This is a PAID-I EASE. In consideration of the cash payment, (which payment is
accepted by Lessor as go rid sufficient consideration for the rights granted to Lessee it this
Lease). Lessor agrees th.,. ._essec shall not he obligated, except as otherwise provided, to
commence or continue any operations during the Primary Term. Lessee may at any time or limes
during or after the Primary Term surrender this Lease as to all or any portion of the land and as
to any strata of stratum by delivering to Lessor or by filing for record a release or releases,and be
relieved of all obligation accruing as to the acreage surrendered.
•
3. As royalty,the I.essee covenants and agrees:
17)
o a. To deliver to the credit of Lessor, free of cost, in the pipeline to which
•
—
Lessee may connect wells on the land,the equal 20% part of all oil(including but
$Y not limited to condensate and distillate)produced and saved from the lease premises or at
num � Lessee's option,pay Lessor for the_ 20%_royalty,the market price for oil of like grade
—o o and gravity prevailing on the day the oil is run into the pipeline or into storage tanks.
Wain cr o
=f b. To pay Lessor for gas of whatever nature or kind (with all of its
mim�E constituents)produced and sold or used off the lease premises,or used in the manufacture
__ rn of products, 20% of the net proceeds realized by Lessee for the gas sold,used off the
premises, or used in the manufacture ofproducts, the net
===
proceeds to be less a
mom�d proportionate part of the production, severance, and other exercise taxes and costs
o
$ incurred by Lessee in delivering, processing, compressing, or otherwise making the gas
8 merchantable. Gas of any kind or nature unavoidably lost, or which may be used by
mm•oH Lessee in any process in recovering oil or other liquid hydrocarbons from the lease
ANN premises,or returned to the ground,whether through wells located on the lease ptetrnses
`"_ or elsewhere, shall not be deemed to have been sold or used off the lease premises within
a the meaning,express or implied,of this Lease.
tst
4. Where gas from a well capable of producing gas is not sold or used, Lessee may
pay or tender as royalty to the royalty owners One Dollar per year per net royal:y acre
retainccl by this Lease, this payment or tender to be made on or before the anniversary
date of this Lease next ensuing after the expiration of 90 days front the date such well is
shut in and thereafter on or before the anniversary date of this Lease during the period
such well is shut in. If the payment or tender is made, it will be considered that gas is
being produced within the meaning of this Lease.
5. If Lessor owns a lesser interest in the land than the entire and undivided fee
simple estate, then the royalties (including any shut-in gas royalty) provided for n this
Lease shall be paid to the Lessor only in the proportion which Lessor's interest bears to
the whole and undivided fee.
6. Lessee shall have the right to use, free of cost,gas, oil and water produced on the
land or on lands pooled or unitized with the land for Lessee's operations, except water
from the wells of I,essor.
7. When r Guested by Lessor, Lessee shall bury Lessee's pipeline below plow depth,
on cultivated I:. ds.
S. No we! shall he drilled nearer than 200 feet to the house or barn now on the land
without written consent u!-Lessor.
9. Lessee ;hall pay for damages caused by Lessee's operations to growing crops on
the land.
I0_ Lessee shall have the right at any time to remove all machinery and fixtures
placed on the land,including the right to draw and remove easing.
I. The rights of Lessor and Lessee may be assigned in whole or part. No change in
ownership of Lessor's interest (by assignment or otherwise) shall be binding on Lessee
until Lessee has been furnish:d with notice,consisting of certified copies of all recorded
instruments or documents and other information necessary to establish a complete chain
of record title from Less,. , and then only with respect to payments later made. No other
kind of notice, whether actual or constructive,shall be binding on Lessee. No prese it or
future division of Lessor's ownership as to different portions or parcels of the land ;hall
operate to enlarge the obligations or diminish the rights of Lessee, and all Lessee's
operations may he conducted without regard to any division. If all or any part of this
Lease is assigned, no leasehold owner shall be liable for any act or omission of any other
leasehold owner.
•
2
•
12. Lessee, at its option, is given the right and power at any time and from time to
time as a recurring right,either before or after production,as to all or any part of the land
Eand as to any one or more formations, to pool or unitize the leasehold estate and the
• nowa mineral estate covered by this Lease with other land, lease, or leases in the immediate
cvicinity for the production of oil and gas,or separately for the production of either,when
^�s in Lessee's judgment it is necessary or advisable to do so, and irrespective of whether
r z. authority similar to this exists with respect to such other land, lease or leases, likewise,
eo units previously formed to include formations not producing oil or gas, may he reformed
9 o to exclude such non-producing formations. The forming or reforming of any unit shall be
is
f accomplished by Lessee executing and filing of record a declaration of such unitization or
d reformation, which declaration shall describe the unit. Arty unit may include land on
a
st4--a, which a well has been completed or on which operations for drilling have been
r�'o g commenced. Production,drilling, or reworking operations or a well shut-in for want of a
c= market anywhere on a unit which includes all or a part of this Lease shall be treated as if
�,Ne it were production,drilling,or reworking operations or a well shut-in for want of a market
•-oe under this Lease. In lieu of the royalties specified in this Lease, including shut-in gas
4.4 royalties. Lessor shall receive on production from the unit so pooled royalties only on the
N� portion of production allocated to this Lease; such allocation shall be that proportion of
'o the unit production that the total number of surface acres covered by this lease and
rarao
included in the unit bears to the total number of surface acres in the unit. In addition to
the foregoing, Lessee shall have the right to unitize, pool, or combine all or any part of
the lands as to one or more of formations with other lands in the same general area by
entering into a cooperative or unit plan of development or operation approved by any
governmental authority and, from time to time, with like approval, to modify, change or
terminate any plan or agreement and, in such event, the terms, conditions,and provisions
of this Lease shall be deemed modified to conform to the terms, conditions, and
provisions of the 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 a . I development requirements of the
plan or agreement, and this Lease shall not terminate 1. •vnire during the life of the plan
or agreement. In the event that all or any part of the lam, hall be operated under any
cooperative or unit plan of development or operation by wk the production from it is
allocated to different portions of the land covered by th. ,Lan, then the production
• allocated to any particular tract of land shall, for the purpose computing the royalties to
be paid to Lessor,be regarded as having been produced from the particular tract of land to
which it is a'Lrcated and not to any other tract of land, and the royalty payments to be
made to Lesso shall be based on production only as so allocated. Lessor,if reques.ed by
Lessee, shall 1 ye the obligation to formally express Lessor's consent to any cooperative
or unit plan development or operation adopted by Lessee and approved by any
government ;envy and shall execute the same on request of Lessee.
13. All , ass or implied covenants of this Lease shall be subject to all Federal and
State Laws, ;endive Orders, Rules or Regulations, and this Lease shall not be
terminated. ii, hole or in part, nor Lessee held liable in damages, for failure to amply
with them. ifs npliance is preventec by,or if the failure is die result of,any Law,Order,
Rule or Regul. on.
14. Lessor 'arrants and agrees to defend the title to Ii lands, and agrees that the
Lessee shall h. e the right at any time to redeem for Lessor, y payment, any mortgages,
taxes, or °the; ions on the lands, in the event of'default or payment by Lessor and he
subrogated to! e rights of the holder,and Lessor agrees that any payment made by Lessee
for Lessor mad, be deducted from any amounts of money wl:ich may become due m the
Lessor under I a terms of this tease. The undersigned Lessors,for themselves and their
heirs, successors and assigns, surrender and release all right of dower and homestead in
the lease premises,insofar as the right of dower and homestead may in any way affect the
purposes for which this Lease is made,as recited in this Lease.
15, Should any one or more of the parties named as Lessor fail to execute this Lease,
it shall nevertheless be binding on all parties who do execute it as Lessor. The word
"Lessor." as used in this Lease, shall mean any one or more or all of the parties who
execute this Lease as Lessor. All the provisions of this Lease shall be binding or the
heirs,successors and assigns of Lessor and Lessee.
•
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3691029 05/04/2010 01:52P Weld Coun.y,CO
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I6. This Lease shall not be terminated, forfeited. or canceled for failure by Lessee to
perform in whole or in part any of its implied covenants, conditions, or stipulations until
• it shall have been first finally and judicially determined that the failure or default exists,
and then Lessee shall be given a reasonable time to correct any default so determined, or
at Lessee's election it may surrender the Lease with the option of reserving under the
terms of this Lease each producing well and forty(40)acres surrounding it as selected by
Lessee, together with the right of ingress and egress. Lessee shall not be liable in
damages for breach of any implied covenant or obligation.
17. No part of the surface of the lease premises shall, without the written consent of
the Lessee, be let, granted, or licensed by the Lessor to any other party for the et ection,
construction, location or maintenance of structures, tanks, pits, reservoirs,equipment,or
machinery to be used fur the purpose of exploring,developing or operating adjacent lands
for oil or gas.
18. Any and all payments permitted or required to he made under the terms of this
Lease shall be made or tendered to the Lessor or to Lessor's credit in. the
Bank (the depository bank) at or its
successor or successors. or any bank with which it may be merged, or consolidated, or
which succeeds to its business or assets or any part of them, by purchase or otherwise,
which shall continue as the depository bank regardless of changes in the ownership of the
land.
This Lease is executed as of the date of the acknowledgments below,but shall be
deemed effective for all purposes as of the Effective Date stated above.
Lessor
PoraiS....44 :
Robert Wheeler Welch Jr. ��---
•
Individual Acknowled n
STATE OF
COUNTY OF
, n
The instrument was ackow!edged before me on 1//,,,r7/V by
Oiii
La -recto
Rw� NU,dn.avmc State rponda Notary ublic in nd for th State of(' c�y>anm,pz, eL
;f ax` M;t'.ommizwnooes?633 Printed Name.: Ate/ (gJieint01'
a'_ ,pr�ree 6612912011 Commission Expires: (/-;?9-;t0//
•
4
1 1 1 1 1 1 1 11111 111111 111111 101 111111 1111110 11111 1111 IIII
3691029 05/04/2010 01:52P Weld County, CO
5 of 5 R 26.00 0 0.00 Steve Moreno Clerk&Recorder
EXFIRIT"A"
OPI ION 1l)EXTEND PRIMARY TERM FOR PAID-UP LEASE(5-2):
L.cssce is hereby given the option to extend the primary tern of this lease fan att add lttonal two(2)years
front the expiration of the origiral primary term hereof This option may be exercised by lessee at any tune
dun,rg the last year of the origins_primary by paying the sum of Two I lundred Twenty Five not IGO
Dollars(S225)per net mineral nett directly to t ester at the above address.This payment shall he based
upon the number of net mineral acres that covered by this lease and not as such time being maintained by
other provisions hereof.This payment may be made by the check or draft to Lessee mailed or delivered to
Lessor or to said hank at any titre during the last year of the original primary term hereof If such bank(or
any successor bank)should fail,liquidate or be succeeded by another bank,or for any reason fail or refuse
to accept payment,Lessee shall not he held in default for tuilure to make such payment until thirty(f0)days
after Lessor's delivery to Lessee of a proper recordable instrument naming another bank as agent to receive
such payment.If,at the time this payment is made,various parties are entitled to specific amounts according
to Lessee's records,this payment ntav be divided between said parties and paid in the same proportion
Should this option be exercised as herein provided,it shall be considered for all purposed as though this
lease originally provided for a primacy term of seven(7)years.In the event this lease is being maintained
by arty other lease provisions at the expiation of the primary teen.Lessee shall have a pen xl of thirty(30)
days from the date this tease ceases to he so maintained within which to exercise this option.If Lessee
exercises its option to extend this lease.Lessee shall file notice thereof in the public records where the land
is situated and provide to Lessor a copy thereof'failing which the option will terminate.
Two 1 kindred Twenty five anti non!00 Dollars(3225)
•
Please Return To:
PUREE OIL COMPANY
8235 Douglas Ave,LB 27,STE 402
Dallas,Texas 75225
•
5
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3702036 06/28/2010 09:25A Weld County,CO
Colorado Paid-UP/Pooling 1 of 5 R 26,00 0 0.00 Steve Moreno Clerk&Recorder
(Rev 9N9)
036 OIL AND GAS LEASE
• This Lease Agreement(the"Lease")is entered into on ipl1`1(Q (the
"Effective Date")between Cheryl Welch Keyes,a Married woman dealing in her sole
and separate property _ whose address is
15971 Grasshopper Court Fort Myers,Fl 33912 ,the"Lessor"(whether one or
more)and FOREE OIL COMPANY ,whose address is 8235 DOUGLAS AVE.
STE 402,L.H.27 DALLAS,TX 75225 ,the"Lessee."
The Lessor,in consideration of Ten Dollars and other valuable consideration,the
receipt of which is acknowledged, and the covenants and agreements contained in this
Lease, grants, demises., leases and lets exclusively to Lessee, the land described below,
with the exclusive right for the purpose of mining, exploring by geophysical and other
methods,and operating for and producing oil (including,but not limited to,distillate and
condensate), gas (including, but not limited to casinghead gas and helium), and other
hydrocarbons of whatever nature or kind, and for laying pipelines, telephone and other
lines,and building tanks,power stations,gasoline plants,ponds,roadways and structures
to produce, save and take care of those products, and the exclusive right of injecting
water, brine and other fluids into subsurface strata, and any and all other rights and
privileges necessary, incident to, or convenient for the economical operation alone, or
conjointly with neighboring land,for the production,saving,taking care of,and selling all
substances produced, all that certain tract of land situated in _ WELD County,
Colorado,described as follows:
TOWNSHIP 10.NORTH,RANGE 62 WEST OF THE 6TH P.M.,:
SECTION 10: W2,NE4
SECTION II:NW4
TOWNSHIP 10 NORTH,RANGE 63 WEST OF THE 6TH P.M.,:
• SECTION I: Lots 1 (40.11),2(4034),3(40.56),SENW,S2NE,N2SE
containing ,961.01 acres,more or less,which are referred to in this Lease as the"land,"
"lands,"or"lease premises."
I. It is agreed that this Lease shall remain in force for a term of five (5) ,years from
this date(the"Primary Term")and as long thereafter as oil or gas of whatever nature or kind is
produced from the lease premises or on acreage pooled or unitized with the lands, or drilling
operations are continued as provided for in this Lease. If,at the expiration of the primary term of
this Lease, oil or gas is not being produced on the lease premises or on acreage pooled or
unitized with the lands but Lessee is then engaged in drilling or reworking operations,then this
Lease shall continue in force so long as operations are being continuously prosecuted on the
lease premises or on acreage pooled or unitized with the lands; and operations shall be
considered to be continuously prosecuted if not more than ninety(90)days shall elapse between
the completion or abandonment of one well and the beginning of operations for the drilling of a
subsequent well. If after discovery of oil or gas on the land or on acreage pooled or unitized with
the land,production thereof should cease from any cause after the Primary Term,this Lease shall
not terminate if Lessee commences additional drilling or reworking operations within ninety(90)
days from the date of cessation of production or from the date of completion of a dry hole. If oil
or gas shall be discovered and produced as a result of those operations at or after the expiration
of the Primary Term of this Lease, this Lease shall continue in force so long as oil or gas is
produced from the lease premises or on acreage pooled or unitized with the lands.
2. This is a PAID-UP LEASE. In consideration of the cash payment, (which payment is
accepted by lessor as good and sufficient consideration for the rights granted to Lessee in this
Lease), lessor agrees that Lessee shall not be obligated, except as otherwise provided, to
commence or continue any operations during the Primary Term. Lessee may at any time or times
during or after the Primary Term surrender this Lease as to all or any portion of the land and as
to any strata or stratum by delivering to Lessor or by filing for record a release or releases,and be
•
relieved of all obligation accruing as to the acreage surrendered.
111111111111X11111III111111TIII11111���11111ItVIII
3702036 06/28/2010 09:25A Weld County, CO
2 of 5 R 26.00 0 0.00 Steve Moreno Clerk&Recorder
3. As royalty,the Lessee covenants and agrees:
a. To deliver to the credit of Lessor, free of cost, in the pipeline to which
• Lessee may connect wells on the land,the equal 20% part of all oil (including but
not limited to condensate and distillate)produced and saved from the lease premises or at
Lessee's option, pay Lessor for the 20% royalty. the market price for oil of like
grade and gravity prevailing on the day the oil is run into the pipeline or into storage
tanks.
b. To pay Lessor for gas of whatever nature or kind (with all of its
constituents)produced and sold or used off the lease premises,or used in the manufacture
of products, 20% of the net proceeds realized by Lessee for the gas sold,used off the
premises, or used in the manufacture of products, the net proceeds to be less a
proportionate part of the production, severance, and other exercise taxes and costs
incurred by Lessee in delivering, processing, compressing, or otherwise making the gas
merchantable. Gas of any kind or nature unavoidably lost, or which may be used by
Lessee in any process in recovering oil or other liquid hydrocarbons from the lease
premises,or returned to the ground,whether through wells located on the lease premises
or elsewhere,shall not be deemed to have been sold or used off the lease premises within
the meaning,express or implied,of this Lease.
4. Where gas from a well capable of producing gas is not sold or used, Lessee may
pay or tender as royalty to the royalty owners One Dollar per year per net royalty acre
retained by this Lease, this payment or tender to be made on or before the anniversary
date of this lease next ensuing after the expiration of 90 days from the date such well is
shut in and thereafter on or before the anniversary date of this Lease during the period
such well is shut in. If the payment or tender is made, it will be considered that gas is
being produced within the meaning of this Lease.
5. If Lessor owns a lesser interest in the land than the entire and undivided fee
simple estate, then the royalties (including any shut-in gas royalty) provided for in this
Lease shall be paid to the Lessor only in the proportion which Lessor's interest bears to
• the whole and undivided fee.
6. Lessee shall have the right to use, free of cost,gas,oil and water produced on the
land or on lands pooled or unitized with the land for Lessee's operations, except water
from the wells of Lessor.
7. When requested by Lessor,Lessee shall bury Lessee's pipeline below plow depth,
on cultivated lands.
8. No well shalt be drilled nearer than 200 feet to the house or barn now on the land
without written consent of Lessor.
9. Lessee shall pay for damages caused by Lessee's operations to growing crops on
the land.
LO. Lessee shall have the right at any time to remove all machinery and fixtures
placed on the land,including the right to draw and remove casing.
I I. The rights of Lessor and Lessee may be assigned in whole or part. No change in
ownership of Lessor's interest (by assignment or otherwise) shall be binding on Lessee
until Lessee has been furnished with notice,consisting of certified copies of all recorded
instruments or documents and other information necessary to establish a complete chain
of record title from Lessor,and then only with respect to payments later made. No other
kind of notice,whether actual or constructive,shall be binding on Lessee. No present or
future division of Lessor's ownership as to different portions or parcels of the land shall
operate to enlarge the obligations or diminish the rights of Lessee, and all Lessee's
operations may be conducted without regard to any division. If all or any part of this
Lease is assigned,no leasehold owner shall he liable for any act or omission of any other
• leasehold owner.
I IIIII IIIII IIIIII III 111111111111111111111111111111�Hi
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12. Lessee, at its option, is given the right and power at any time and from time to
time as a recurring right,either before or after production,as to all or any part of the land
and as to any one or more formations, to pool or unitize the leasehold estate and the
• mineral estate covered by this Lease with other land, lease, or leases in the immediate
vicinity for the production of oil and gas,or separately for the production of either,when
in Lessee's judgment it is necessary or advisable to do so, and irrespective of whether
authority similar to this exists with respect to such other land, lease or leases. Likewise,
units previously formed to include formations not producing oil or gas,may be reformed
to exclude such non-producing formations. The forming or reforming of any unit shall be
accomplished by Lessee executing and filing of record a declaration of such unitization or
reformation, which declaration shall describe the unit. Any unit may include land on
which a well has been completed or on which operations for drilling have been
commenced. Production,drilling,or reworking operations or a well shut-in for want of a
market anywhere on a unit which includes all or a part of this Lease shall be treated as if
it were production,drilling,or reworking operations or a well shut-in for want of a market
under this Lcasc. In lieu of the royalties specified in this Lease, including shut-in gas
royalties. Lessor shall receive on production from the unit so pooled royalties only on the
portion of production allocated to this Lease; such allocation shall be that proportion of
the unit production that the total number of surface acres covered by this Lease and
included in the unit bears to the total number of surface acres in the unit. In addition to
the foregoing, Lessee shall have the right to unitize, pool,or combine all or any part of
the lands as to one or more of formations with other lands in the same general area by
entering into a cooperative or unit plan of development or operation approved by any
governmental authority and, from time to time, with Like approval. to modify,change or
terminate any plan or agreement and, in such event,the terms,conditions,and provisions
of this Lease shall be deemed modified to conform to the terms, conditions, and
provisions of the approved cooperative or unit plan of development or operation and,
particularly,all drilling and development requirements of this Lease,express or implied,
shall be satisfied by compliance with the drilling and development requirements of the
plan or agreement,and this Lease shall not terminate or expire during the life of the plan
or agreement. In the event that all or any part of the lands shall be operated under any
cooperative or unit plan of development or operation by which the production from it is
• allocated to different portions of the land covered by the plan, then the production
allocated to any particular tract of land shall,for the purpose of computing the royalties to
be paid to Lessor,be regarded as having been produced from the particular tract of land to
which it is allocated and not to any other tract of land, and the royalty payments to be
made to Lessor shall be based on production only as so allocated. Lessor,if requested by
lessee,shall have the obligation to formally express Lessor's consent to any cooperative
or unit plan of development or operation adopted by Lessee and approved by any
governmental agency and shall execute the same on request of lessee.
13. All express or implied covenants of this lease shall be subject to all Federal and
State Laws, Executive Orders, Rules or Regulations, and this Lease shall not be
terminated, in whole or in part, nor Lessee held liable in damages, for failure to comply
with them,if compliance is prevented by,or if the failure is the result of,any Law,Order,
Rule or Regulation.
14. Lessor warrants and agrees to defend the title to the lands, and agrees that the
Lessee shall have the right at any time to redeem for Lessor,by payment,any mortgages,
taxes, or other liens on the lands, in the event of default of payment by Lessor and be
subrogated to the rights of the holder,and Lessor agrees that any payment made by Lessee
for Lessor may be deducted from any amounts of money which may become due to the
Lessor under the terms of this Lease. The undersigned lessors, for themselves and their
heirs, successors and assigns, surrender and release all right of dower and homestead in
the lease premises,insofar as the right of dower and homestead may in any way affect the
purposes for which this Lease is made,as recited in this Lease.
15. Should any one or more of the parties named as Lessor fail to execute this Lease,
it shall nevertheless be binding on all parties who do execute it as Lessor. The word
"Lessor," as used in this Lease, shall mean any one or more or all of the parties who
execute this Lease as Lessor. All the provisions of this Lease shall be binding on the
• heirs,successors and assigns of Lessor and Lessee.
3 V
Illlll Illll Illlll III IIII{I IIIIill Illll Ill IIIII IIIIIA of 5 26.00 06 0 0.00 Steve Moreno Clerk 8 Recorder
to. This Lease shall nut be terminated, forfeited, or canceled for failure by Lessee to
perform in whole or in part any of its implied covenants,conditions, or stipulations until
• it shall have been first finally and judicially determined that the failure or default exists,
and then Lessee shall be given a reasonable lime to correct any default so determined,or
at Lessee's election it may surrender the Lease with the option of reserving under the
terms of this Lease each producing well and forty(40)acres surrounding it as selected by
Lessee, together with the right of ingress and egress. Lessee shall not be liable in
damages for breach of any implied covenant or obligation.
17. No part of the surface of the lease premises shall, without the written consent of
the Lessee, be let, granted, or licensed by the Lessor to any other party for the erection,
construction, location or maintenance of structures, tanks,pits,reservoirs, equipment.or
machinery to he used for the purpose of exploring,developing or operating adjacent lands
for oil or gas.
18. Any and all payments permitted or required to he made under the terms of this
Lease shall be made or tendered to the Lessor or to Lessor's credit in the
_ Bank (the depository bank) at or its
successor or successors, or any bank with which it may be merged, or consolidated, or
which succeeds to its business or assets or any part of them, by purchase or otherwise,
which shall continue as the depository bank regardless of changes in the ownership of the
land.
This Lease is executed as of the date of the acknowledgments below,but shall be
deemed effective for all purposes as of the Effective Date stated above.
L n
(
Cheryl Welch yes
• /
Individual Acknowledgment
STATE OF 1ert .4-� _
COUNTY OF /1 (/
e instrument was acknowledged before me on (p/lglO, by
VI instrument was
Sidd-a-kg . -
Notary Public for the S
Printed Name:
Commission Expires:
pp.4':k THADDEUS i GORCZycA
_ MY COMMISSION#DDi80989
',r. , EXPIRES Apll 21,2012
•
4 eAtY
AIM 11 11 111111 III 111111111111111111III11111IIII1111
3702036 06/28/2010 09:25A Weld County,CO
5 of 5 R 26.00 0 0.00 Steve Moreno Clerk 8 Recorder
EXHIBIT"A"
• OPTION TO EXTEND PRIMARY TERM FOR PAID-UP LEASE(5+2):
Lessee is hereby given the option to extend the primary term of this lease for an additional two(2)years
from the expiration of the original primary term hereof This option may be exercised by Lessee at any time
during the last year of the original primary by paying the sum of Two Hundred Twenty Five and no/100
Dollars($225)per net mineral acre directly to Lessor at the above address.This payment shall be based
upon the number of net mineral acres then covered by this lease and not as such time being maintained by
other provisions hereof.This payment may be made by the check or draft to Lessee mailed or delivered to
Lessor or to said bank at any time during the last year of the original primary term hereof.If such bank(or
any successor bank)should tail,liquidate or he succeeded by another bank,or for any reason fail or refuse
to accept payment,Lessee shall not be held in default for failure to make such payment until thirty(30)days
after Lessor's delivery to Lessee rife proper recordable instrument naming another bank as agent to receive
such payment.If,at the time this payment is made,various parties are entitled to specific amounts according
to Lessee's records,this payment may be divided between said parties and paid in the same proportion.
Should this option be exercised as herein provided,it shall be considered for all purposed as though this
lease originally provided for a primary term of seven(7)years.In the event this lease is being maintained
by any other lease provisions at the expiration of the primary term,Lessee shall have a period of thirty(30)
days from the date this lease ceases to be so maintained within which to exercise this option.It Lessee
exercises its option to extend this lease.Lessee shall file notice thereof in the public records where the land
is situated and provide to Lessor a copy thereof,failing which the option will terminate
Two Hundred Twenty Five and no/100 Dollars($225)
•
Please Return To:
FOREE OIf.COMPANY
8235 Douglas Ave,LB 27,STE 402
Dallas,Texas 75225
•
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