HomeMy WebLinkAbout20103479.tiff 111111111111111111 111111111111111111111III11111II II 111
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3739356 12/16/2010 09:09A Weld County,CO
356 1 of 2 R 16.00 D 0 00 Steve Moreno Clerk&Recorder
/x(41— C.76,i10 IJGLc/ne YG y
OIL AND GAS LEASE
This Oil and Gas Lau('Lease")is made this/Hr
day of D.ettand... ,2010 by and between GRERLEY PLAZA LLC whose address is 15475
CLENEAGLE DR COLORADO SPRINGS,CO 80921.("Lessor'.whether one or more)and MINERAL RESOURCES,INC„chose address is P.O.
Box 328,CanarY,COLORADO 80632 j"ase'l.
WITNESSEfe.For and in Consideration of TEN DOLLARS,the covenants me agreermnts contained basin,and other good and valuable consideration
the receipt and sufficiency of which art hereby acknowledged,loser dna hereby grans,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 therefrom oil and all gas of whatsoever nature or kid
(includingeoaled gas),and layingpipelines.telephone and telegraph lines,building moles,plants,power nations.roadways and structures thereon to produce,save and
take care of said products(including dewataing ofcoalbed gas wells),and the exclusive surface or subsurface lights and privileges related in any manna to any and all
such operations.ant any and all other rights and privileges necessary,incident to,or convenient for the operation alone or conjointly with neighboring land for such
paTos s.all that certain Iraq or trans of land situated in Weld County,Colorado described to wits
TOWNSHIP 5 NORTH,RANGE 65 WEST,6TH P.M.
SECTION 5: PART OF THE SW/4 BEING MORE PARTICULARLY DESCRIBED AS
FOLLOWS:OR 4792 LOT 9&10 N2 LOT 11&12 ALL LOT 13 THRU 20,
BLOCK 37 ALSO S2 VACATED ALLEY ADI LOT]3 THRU 19 EC ES'OF
ALLEY ADJ LOT 19 ALSO EC W8.65'OF S2 LOT 13
INCLUDING ALL STRIPS AND PARCELS OF LAND CONTIGUOUS
THERETO OR IN SAID SECTION.
CONTAINING 1.2197 ACRES,MORE OR LESS(the"Premises")
Notwithstanding anything no the contrary herein contained,this lease is a"No Surface Occupancy"Oil and Gas affise,It is agreed and understood
that Lessee its successors or assigns shall not conduct any dominions or locate any facilities on the surface of the leased lands.It is understood that
Lessee.its successors or assigns shall not he allowed any access to rho surface of the leased lands without written consent of Lessor.It is further
agreed that Lesser:shall have the right to drill and operate directional wells through and under said bind irrespective of the bottom hole locations of
said wells.To this aid,Lessor herby grants to Lessee a subsurface easement for all purposes associated with such directional wells.
I. D is egmed that this lase shall remain m full force for a term of five(5)ran from this date CPrimay Tend)and as long thereafter as oil or gas of
whutsoesa nature or kind is produced from the Premises or on acreage pooled or unitized therewith.or operations are condoned as hereinafter provided. At any time
during the Primary Term of this Lau,lase,at its option may make lender to lessor payment in the amoral of SI®pa sea mineral acre,thereby extending the
Primary Term of this Lease by an additional five(5)years.. If,at the expiration of the Primary Tam,oil Cr gas is not being produced from the Premises or on acreage
pooled ens unitized d.aewith but Lessee is them engaged in drilling,reworking or dewalering operations thereon,then this lease shall continue in force so long as such
operations art bring continuously prosecuted. Operations shall be considered to be caumucusly presented'root more than ninety(90)days shall elapse between the
completion or ahannonment of one well and the beginning of operations for the drilling era subsequent well. If after discovery of oil or gas cm Oat Premises or on
acreage pooled or unitized therewith,the production thereof should cease from any cause after the primary tens,this lease shall net terminate if Lase commences
additional drilling,aworking or dewateriug operations within ninety(901 days from dale of cessation of production or from dale ofcomplction ofa thy hole. Ifeil or
gas shalt bedime-void and produced as a result of such operations at or after the expiation ofthe Primary Tenn,this 1®u shall continue in force so rang as oil or gas
leproduced form the Premises or on acreage pooled or unitised therewith.
2. Rs is a PAID-UP LEASE In consideration of the payment made herewith,Lesser agrees that lessee shall net be obligated,aeon as otherwise
provided herein,to commence or continue any operations during the primary turn. Lessee may at any time or times during or after the Primary Tenn surrender this
lease as mall or any ponian of the Premises and as to any strata or stratnats by delivering to Lessor a by filing for record a release or releaser,and be relieved of MI
obligationstereafter accruingus to the acreage mare deed.
3. The royalties to be paid by lessee are: (a)on oil and Mho liquid hyodrocarbons,lit of that produced and saved from said land,the same to be
delivered at the wells,or to the credit of laser into the pipeline to which the wells may be carmened:lessee may from time to time purchase any royalty oil in its
possessionspaying the market pricetherefore prevailing for the field where produced on the date of purchase;(b)on gas and the constituents thereof produced fromsaid
land and sold or used off the penises or in the manufacture of products thaefiorib the mead value at the well of t/5 of the produce sold or used On product sold at
the well,the royalty shell be I of the net proceeds realized from such sale. All royalties paid on gas sold or used off the premises or in the manuhuture of products
shoehorn will be paid of err deducting from sects royally lessor's preponionate aroma of all postyraduclien mans,including but not limited to gross production and
severancemxes,gathering and transportation costs from the wellhead to the paint of sale,treating.compression,and processing.On product sold at the well,the royalty
shall be I,8 of the nee proceeds realized from such sale,after deducting from such royally Lessor's proportionate amount of all of the above post-production costs and
expesa,at any.
4. Where gas from a well capable of producing gas(or from a well in which dewataing operations have commemed),is not sold or used after the
expiation of the Primary Tam.Lessee shall pay or tender as royalty to Lesser at the address ad forth above One Dollar(51.00)per year pa net mineral acre,such
payment or tender It.be made on Or before the anniversary date of this Lease neat ensuing after the expiration of ninety(90)days from the date such well is shut in or
dewatering operations are commenced and Ihamaa on or before the anniversary date of this Lease during the period such well is alms in or dcwatering operations are
being conducted.
5. If Lessor owns a lever interest in the Premises than the ratite and undivided fee simple=state therein,then the royalties(including any shut-in gas f.
royalty)herein provided for shall be paid Lessor only is the proportion which lessor's interest bearsto the whole and undivided fee. 111
h. Lessee shall have the right to use fat of cost,gas,oil and water produced on the Premises for lessees operations thereon,except water from the i
wells of Lever.
7.When requested by Lour.Lessee shall bury Lessee's pipelinebclowplow depth.
Ie.No well shall be drilled nava than 200 feet to the house or ham now on the Premise without wrinmconsent of Laser.
9. Lama shall pay for danagas caused hy Lessee's opautiena to growing amps on the Premises. '
I0, Lessee shall have the right at any time to remove all machineryand futures(including casing)lessee ha placed on the Premises.
II. The rights of the lessor aid Lessee hereunder may be assigned in whole or pan. No change in ownership of Lessor's interest(by assignment or
otherwise)shall be bindles on lance until Lessee has bear furnished with notice.comisting of certified copies of all recorded instruments or documents end other
information neonaryy to establish a complete chain of record thle Item Laser.arid then only with respect to payments thereafter made, No other kind of notice,
whether actual or constructive,shall be binding on lessee. No present orfuture division of Lessor's ownership as to different portions or parcels of the Premises shall
operate to mlargethe obligations or diminish the rights of(rime,and all Lessees operations may be condicud without regard to any such division. If all or any pan
of this lease is assigned,no leasehold tomer shall be liable for any eel or omission orally other leasehold owner,
U.Lame,at its option,whereby given she right and prover at any time and from time to time as a rooming right either before or after production.sato all
or any pan of the Prnniscs and as to any one armor of the formations thanunder,to pool or unitize the leasehold estate and the mineral estate coveted by this Lease
with mho led,lease or taxes 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'utapative 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 faring or reforming of any unit shall be
accomplished by rasa executing and filing of record a declaration of such unitization or reformation.which declaration dull describe the unit Any unit ray include
land upon which a well has theretofore been completed or upon which operations foe dotting have theretofore been commenced Production.drilling,reworking or
dewatering operations or a well shut in for wait ofa market anywhere on a unit which includes all or a pan of this Lease shall be treated as if it were production
drilling,reworking ordewatering operations or awel shut in for want ofa market under this Lease. In lieu orgy royalties elsewhere herein specified including shubin
gas myalhes.Inner shall receive royalties on production from such lain only on the portion of su chproductio allocated to this Lase,such allocation shall be that
proportion of the unit pmduction that Ilse total number ofsurf m acres covered by this Lease and included in the Unit bears 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 pan or the Premises as to one or more of the formations thereunder
with other lands in the sate general area by entering into a cooperative or unit plan of development or minion approved by any governmental authority and,from
time btime,with like approval.to modify,change or tennimte any such plan or agreement and,in such event,thetmm,conditions and provisions of this lease shall /J
153599! !10/10/2010! !41! AO -,31/1q
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3739356 12/1612010 09:09A Weld county,CO
2 of 2 R 16.00 0 0.00 Steve Moreno Clerk&Recorder
be demised modified to contemn to the terms,conditions,and provisions of such approved cooperative or unit plan of development or operation and.particularly.all
dolling and development raluirementa of this Last,express or implied.shall be satisfied by compliance with the drilling and development requirements of such plan
or agreement.and this tease shall not terminate or expire during the life of such plan or agreement In the event that the Premises or any part thereof,shall hereafter be
operated under any such cooperative or melt plan of development or operation whereby the production therefrom is allocated to different pardons of the land covered by
said plan that the production allocated to any particular tract of land shall,for the purpose of computing the royalties to be paid hereunder to laser,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 royalty paymenn to be made hereunder to lessor
shall be based upon production only as so allocated. Lessor shall Connally express Lessor's consent to any cooperative or unit plan of development or operation
adopted by Lessee and approved by any governmental agency by executing the same upon request of Lssre.
II. All express or implied covenants of this Lease shall be subject to all Federal and State Laws,Executive Orders,Ruses or Regulations,and this Lease
shall not he temmated,in whole or in pan,nor lessee held liable in damages,for failure to comply therewith if compliance it prevented by,or if such failure is the
result of,any such Law,Order,Rule or Regulation. My delay or interruption caused by storm,flood,act of Oed or other event of force majeure shall not be counts
against',ebbIf,dun to the above tenses or any cause whatsoever beyond the control of Lessee,Lesser is pesveoted from condoning operations hereunder.such time
shag not be counted against lessee,and this Lease shall be extended fora period of time equal be the time Issue was ea prevMd,aoydwg ill thin Leath m the
contrary notwithstanding
11. Lessor hereby agrees that the Lessee shall have the right at any time to redeem for IaserbY paYmat any nangages,taxes or other liens en the above
described lands,in the event of default of payment by Lessor,and be subeegated to the rights of the holder thereof,end the undersigned Lesson.for themselves and
their heirs,successor and ensigns,hereby sumoder and release all tight of dower and homestead in the Premises,insofar as said right of dower and homestead may in
any way affect the paposn for which this Lease is made.as recited herein.
I5. Should any one or more the parties named as loser herein fail to execute this Ina it shalt nevertheless be binding upon all such parties who do
execute it as Lessor.The maid"Lessor',as used in this Lase.shall mean aoyovem more or all oldie patties vino execute this lease as Lessor. All the provisions of
Ibis Lease shall be binding on the ham.succasos adassigns of lessor and Lowe,
It. If at any time within the primary term of this lease and while the tame remains in force and effect,Lessor receives any bona fide offer,acceptable to
Lessor,to grant an additional lease(top lease)covering all or pan of the afordescribd lands,lessee shall have the continuing option by meeting any such offer to
acquire such top lase My offer must be in writing and must sat forth the proposed Lebec'sanamc,bonus consideration and royalty consideration to be paid for such
lease,and include a copy of the lease form to be utilized which form should reflect all pertinent and relevant turns and conditions of the top lease, lessee shall have
fifteen(1S)days aflefreceipt,from Laser,of a complete copy of any such offer to advise Igor in writing of ih election to enter into an oil and gas lease with Lessor
00 equivalent tenth and conditions. If Lessee fails tonoti&Lessor within the aforesaid fifteen(IS)day period of in election to meet any such bone fide offer,Lessor
shall have the right to accept said offer.
IN WITNESS WHEREOF,this instrument is mmacwed as ofthedatelnt above written.
Greeley Plaza LL 1 ctj1_011,
ay:9err'>crh gcaso e+rxrl-CV
lg+lfres L. ASKa-c
f.scrrtAG-r—T
STATE OFD, ,,iL-b )
yL� �� 1SS.
CAUN Q fY OF .1r_ 1'TA^-t1 J f Ai--
BEFORE ME,the wdcsigne,a otasy Publc,ja and for mid County and State,on thi day of u./ 2010,;seasonally
apparxf 'b(y,a.k1
. (Q,a z,ci es the d ju2,4_.',--tO a a 1— of Greeley Plaza
LLC,no me known to be the identical persons described in gn4% h. a within and foregoing instrument of writing,acknowledged to me that they duly
encoded the®me as their free and voluntary act and dear u4aud Set forth.
err
IN WITNESS WHEREOF,I have bream sod fanoAffixed myaC n that day and year last above sedum..tRMy Commission Expire 1:i u..Via^ a ,_l! _� f
s'',•,se`s LLB"u / Notary Public.
oti OCJLLAKO '
•
When recorded return to:
Mineral Resources,Inc.
P.O.Box 328
Greeley,CO 80632
153599! !10/10/20101 Id1!
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