HomeMy WebLinkAbout20103480.tiff I 111111 11111 111111 11ff 1111111II11111111III11111IIt 1111
3739358 1211612010 09:09A Weld County,CO
1 of 2 R 16.00 0 0.00 Steve Moreno Clerk 8 Recorder cif y
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OIL AND GAS LEASE
This Oil and Gas Lease(".ease')is made this /V(day of Pt' 4' 5-n., ,2010 by and between GREELEY PLAZA LLC whose address is(5475
GLENEAGLE DR COLORADO SPRINGS,CO 80921,("Lessor".whether one or mare)and MINERAL RESOURCES,INC.,whose address is P.O.
RO.S 328,GREELEY,COLORADO 80632("Lessee).
W ffNESSEftt,For and in Consideration of TEN DOLLARS,the covenants and agreements contained herein,and other good and valuable consideration
the receipt and suRcieney of which are hereby acknowidgol.Lessor does hereby grant.demise,lease and let exclusively unto said lessee,with the exclusive rights
for the purposes of mining.exploring by geophysical and other methods and operating for and producing thereliom oil and all gas of whatsoever nature or kind
(including coalbed gas),and laying pipelines,telephone and telegraph lines,building tanks,plants.power stations,roadways and structures thereon to produce,save and
take care of said products(including dewatering of coalbd gas wells),and the exclusive surface or subsurface rights and privileges related in any manna to any and all
such operations,and any and all other rights and privileges necessary,incident to,or convenient for the operation alone or conjointly with neighboring land for such
purposes.ail that certain tract err tracts of land situated in Weld County.Colorado,described to wit:
TOWNSHIP 5 NORTH,RANGE 65 WEST,6TH P.M.
SECTION 5: PART OF THE SW/4 BEING MORE PARTICULARLY DESCRIBED AS
FOLLOWS:GR 4830 LOT I TO 7,BLOCK 44(ANNE BLDG),ALSO
KNOWN AS 804 7 STREET GREELEY,COLORADO
INCLUDING ALL STRIPS AND PARCELS OF LAND CONTIGUOUS
THERETO OR IN SAID SECTION.
CONTAINING 0.462 ACRES,MORE OR LESS(the"Premises")
Notwithstanding anything to the contrary herein contained,this lease is a"No Surface Occupancy"Oil and Gas Lease.It is agreed and understood
that Lessee its successors or assigns shall not conduct any operations or locale any facilities on the surface of the leased lands.It is understood that
Lessee.its successors or assigns shall not be allowed any amass to the surface of the leased lands without written consent of Lessor.It is further
agreed that Lessee shall have the right to drill and operate directional wells through and under said land irrespective of the bottom bole locations of
said wells.To this end,Lessor herby grants to Lessee a subsurface easement for all purposes associated with such directional wells.
I. It is.agreed that this Lease shall mnain in full force for a term of five(3)years from this date("Primary Tam")and as long thereafter as oil or gas of
whatsoever nature or kind is produced from the Premises or on acreage pooled or unitized therewith,or operations are continued as hereinafter provided. At any time
during the Primary Term of this Lease,lessee,at its option may make tender to lessor payment in the amount of$100 per net mineral acre,thereby extending the
Primary Term of this Lease by an additional five(5)years. If,at the expiration of the Primary Term,oil or gas is not being produced front the Premises or on acreage
pooled or unitized therewith but Lessee is then engaged in drilling.reworking or dewatering operations thereon,then this Lease shell continue in force so long as such
operations are being continuously prosecuted. Operations shall be considered to be continuously prosecuted if not more than ninety(90)days shall elapse between the
completion or abandonment of one well and the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on the Premises or on
acreage pooled or unitized therewith,the production thereof should cease from any cause after the primary tam,this lease shall not terminate if Lessee commences
additional drilling,reworking or dewatering operations within ninety(90)days from dam of cessation of production or from date of completion of a dry hole. If oil or
gas shall be discovered and produced as a nsult of such operations at or after the expiration of the Primary Term,this tease shall continue in force so long as oil or gas
is produced from the Premises or on acreage peeled or unitized therewith.
2. This is a PAID-UP LEASE In consideration of the payment made herewith.Lessor agrees that lessee shall not be obligated,except as otherwise
provided herein.to commence or continue any operations during the primary term. Lessee may at any time or limes during or alter the Primary'1'an surrender this
Lease as to all or any portion of the Premises and as to any strata or stratum.by delivering to t.mor or by filing for record a release or releases,and be relieved of all
obligations theretferaccruing as to the acreage surrendered.
3. Thc royalties to be paid by Lassa are: (a)on oil and other liquid hydrocarbons.I/g of that produced and saved from said land,the same to be
delivered at the wells,or to the credit of lessor into the pipeline so which the wells may be connected:Lessee may from time to time purchase any royalty oil in its
poes.snion,paying the market price therefore prevailing for the field where produced on the dale of purchase:(b)on gas and the constituents thereof produced front said
land and sold or trent offthe premises or in the manufacture of products therefrom,the market value at the well of I/8 of the product sold or used. On product add at
the well,the nryalty shall be U8 of the net proceeds realized from such sale. All royalties paid on gas sold or used off the premises or in the manufacture of products
therefrom will be paid after deducting from such royalty lessor's propunionate amount of all post-production costs,including but not limited to gross production and
severance taxes,gathering and transportation costs from the wellhead to the point of sale,treating,compression,and processing. On product sold at the well,the royalty
shall be LS of the net proceeds realized from such sale,after deducting from such royally Lessor's pmponionate amount of all of the above post.production costs and
expenses,if any.
4. Where gas from a well capable of producing gas(or from a well in which dewatering npemtiuns have commenced),is not sold or used after the
expiration of the Primary Tenn,Lessee shall pay or tender as royalty to Lessor at the address set forth above One Dollar(51.00)per year per net mineral acre such
payment or tinder to be made on or before the anniversary date of this Lease next ensuing after the expiration of ninety(90)days from the dale such well is shut in or
dewatering operations are commenced and thereafter on or before the anniversary date of this Lease during the period such well is shut in or dewatering operations are
being conduced.
5, If Lessor owns a laser interest in the Premises than the entire and undivided fee simple estate therein,then the royalties(including any shubin gas
royalty)herein provided fhr shall be paid Lessor only in the pmpommn which Lessor's interest bears to the whole and undivided fee.
4. Lc.see shall have the right to use.free of cal,gas,oil and water produced on the Premises far lessee's operations thereon,except water from the
wells of Lessor.
7. When requested by Lessor,Lessee shall bury Lessee's pipeline below plow depth.
F. No well shall be drilled aura than 200 fat to the house or barn now on the Premises without written consent of Lessor.
9. Lessee shall pay for damages caused by Lessee's operations to growing crops on the Premises.
10. Lessee shall have the right at any time to mnove all machinery and fixtures(including casing)Lessee has placed on the Premises.
II. The rights of the Lessor and Lessee hereunder may he assigned in whole or pan. 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 cupih of all recorded instruments or documents and other
information necessity to establish a complete chain of resod title from Lessor,and then only with respect to payments thereafter made. No other.kind of notice.
whether actual or constructive,shalt be binding on Lessee. No present or forum division of Lessor's ownership as to different portions or parcels of the Premises shall
operate to enlarge the obligations or diminish the rights of Lessee,and all Lessee's operations may be conducted wideaul 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.
L2. Lessee,at its option,is hereby given the right and power at any time and from time to rime as a recurring right,either before or after prduction,as to all
or any part of the Pranises and as to any one or more of the formations thereunder,to pool or unitize the leasehold estate and the mineral estate covered by this Lease
with other land,lease or leases in the immediate vicinity for the production of oil and gas.or separately fur 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 Ind lease or leases. Likewise units previously
lord 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 drilling have theretofore been commenced. Production.drilling,reworking or
dewatering 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,reworking or dewatering operations or a well drat in for want of a market under this Lease. In lieu of the royalties elsewhere herein specified,including shut-in
gas royalties,lessor shall receive royalties on production from such unit only on the portion of such production allocated to this Lease:such allocation shall be that
proportion of the unit production that the total number of surface acres covered by this lease and included in the Unit beam to the total number of surface acres in such
Unit. In addition to the foregoing,lessee shall have the right to unitize,pool,or combine all or any part of the Premises as to one or more of the formations thereunder
with other lands in the same general area by entering into a cooperative or unit plan of development or operation approved by any governmental authority and,from
time to time.with like approval,to tnodify,change or laminate any such plan or agreement and,in such event.the terns,conditions and provisions of this lease shall
be deemed modified to conform to the tams,conditions,and provisions of such approved cooperative or unit plan of development or operation and.particularly,all
153600! !10/10/2010! 14th �'LEL/1
I111111 /III 1111111 1111111111 III 11111 1 111 I l i l
3739356 12/16/2010 09:09A Weld County,CO
2 of 2 R 16.00 D 0.00 Steve Moreno Clerk&Recorder
drilling and development requirements of this lease,express or implied,shall be satisfied by compliance with the drilling and development requirements of such plan
or agreement,and this/cue shall not terminate or expire during the life of such plan or agreement. In the event that the Premises or any pan thereof,shall hereafter be
operated under any such cooperative or unit plan of development or operation whereby the production therefrom is allocated to different portions of the land covered by
said plan,then the production allocated to any particular tract of land shall,for the purpose of computing the royalties to be paid hereunder to Lessor,be regarded as
having been produced from the particular tract of land to which it is allocated and not to any other tract of land;and royalty payments to be made hereunder to lessor
shall be based upon production only as so allocated Lessor shall formally express lessors consent to any cooperative or unit plan of development or operation
adopted by lessee and approved by any govanmental agency by executing the same upon request of Lessee.
13. All express or implied covenants of this lease shall be subject to all Federal and Statue Laws.Executive Order,Rules or Regulations,and this Lease
shall not be[e minted.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
mull of,any such Law,Order,Rule or Regulation. Any delay or intemphon caused by storm.flood,act of God or other event of tome majeure shall not be counted
against Lessee. IL due to the above causes or any cause whatsoever beyond the control of Lessee,Lessee is prevented from conducting operations hereunder.such time
shall not be counted against Lessee,and this Lease shall be extended for a period of time equal to the time lessee was so prevented,anything in this Lease to the
contrary notwithstanding.
l4. Lessor hereby 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 above
described lands,in the event of default of payment by Lessor,and be subrogaled to the rights of the holder thereof,and the undersigned lessors,for themselves and
their heirs,successors and assigns,hereby surrender and release all right of dower and homestead in the Premises,insofar as said right of dower and homestead may in
any way affect the purposes for which this Lease is made,as recited herein.
15. Should any one or more the panics named as Lessor herein fail to execute this Lease,it shall nevertheless be binding upon all such parties who do
execute it as Lessor, The word"Lessor",as used in this Lease,shall mean any one or more or all of the parties who execute this Lease as Lessor. All the provisions of
this Lease shall be binding on the heirs.successors and assigns of lessor and Lessee.
16. If al any time within the primary term of this lease and while the same remains in force and effect lessor receives any bona tide offer,acceptable to
Lessor,to grant an additional lease(top lease)covering all or part of the aforedescribod lands,lessee shall have the continuing option by meeting any such offs to
acquire such top lease. Any offer must be in writing,and must se,forth the proposed Lessee's name,bonus consideration and royalty consideration to be paid for such
lease and include a copy of the lease form to be utilized which font,should reflect all pertinent and relevant terms and conditions of the top lease. Lessee shell have
fifteen(IS)days after receipt,from Lessor,ofa complete copy of any such offer to advise Lessor in writing of its election to enter into an oil and gas lease with Lessor
on equivalent terms and conditions. If Lessee fails to notify Lessor within the aforesaid fifteen(15)day period of its election to meet any such bona fide offer.Lessor
shall have the right to accept said offer.
IN W rI NESS WHEREOF,this inmument is executed as of the date first above written,
Greeley Plaza LLC e e 11°43 �. r
•Jy• der e err attar- crro3 •; ca
0.fnaa Z. Anita c
Ae4e6Sdr--1-
STATE OF t...13UUelatt—t x;
(� � (] )SS.
COUNTY OF w\a-A'" ) I)
BEFORE ME,the undersigned,a Notary Public,in and for said County and State,oythis(��dvy of _➢A,J 4tt4" 2010,pesonally
appm q y..p.
ned j , �,(2s=;,'� as the L d�;s,,j— of Greeley Plaza
LLC,to me/mown to be the identical persons described in and who executed the within and foregoing iniment of writing,acknowledged to me that they duly
executed the same as their free and voluntary act and deed for the uses and purposes therein set forth.
IN WITNESS WHEREOF,I have hereunto sot my hand an malt al seal the day and year last above written.
Life
My Commission Expires 05/0,2 h o Y S — Notary Public(tr.cr
pis.
lr)liC� o
: ^u •CO,o
When recorded return to:
Mineral Resources,Inc.
P.O.Box 328
Greeley,CO 80632
1536001 110/10/2010! till
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