HomeMy WebLinkAbout790010.tiff __I
0 RESOLUTION
RE: AUTHORIZATION OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY
PURPORTEDLY OWNED BY WELD COUNTY, COLORADO LOCATED IN THE
I SOUTHEAST QUARTER OF SECTION 26 , TOWNSHIP 2 NORTH, RANGE 66
WEST OF THE 6TH P.M. , WELD COUNTY, COLORADO
t
WHEREAS, the Board of County Commissioners of Weld County,
U
Colorado, pursuant to Colorado statute and the Weld County Home
c` Rule Charter, is vested with the authority of administering the
i1
a,
;'- affairs of Weld County, Colorado, and
ri
WHEREAS, Weld County, Colorado is the owner of vast acres
of mineral lands located in Weld County, Colorado , and
LA
N WHEREAS, a portion of said mineral acres presently is not
a
o
leased, and
,c.�.r. WHEREAS, Macey and Mershon Oil, Inc. , 1600 Broadway, Suite
Ln
1040, Denver, Colorado 80202, has offered to lease the following
a
described mineral lands , to-wit:
The Southeast Quarter of Section 26, Town-
ship 2 North, Range 66 West of the 6th P.M. ,
Weld County, Colorado
WHEREAS, said described mineral lands contain 160 land acres
Q which contain 160 net mineral acres, more or less, for the total CD to • � . sum of SEVENTEEN THOUSAND NINE HUNDRED THIRTY DOLLARS ($17, 920 .00)
„I
li together with One Dollar ($1 . 00) per acre, which lease is to
-1j a
el- s run for a period of five (5) years , commencing May 30 , 1979 and
T- 0 v
i . ending on May 29 , 1984 , and
° u WHEREAS, Weld County is desirous of accepting said offer
I v
1 riv
i
3 to lease the abovedescribed mineral acreage.
d s1
C7 — °o NOW, THEREFORE, BE IT RESOLVED by the Board of County Com-
1". v
Iri ; missioners of Weld County, Colorado that the offer of Macey and
z x Mershon Oil, Inc. 1600 Broadway, Suite 1040 , Denver, Colorado
Y v 8 80202, as hereinabove recited, be, and hereby is , accepted for
8c c
00 a period of five (5) years .
The above and foregoing Resolution was , on motion duly made
and seconded, adopted by the following vote on the 30th day of
May, A.D. , 1979 .
`y� n y� BOARD OF COUNTY COMMISSIONERS
ATTEST: �l1 ( t��f WELD COUNTY, COLORADO
Weld County C erk and Recorder ay..`_
and Clerk to the Board
By: `,
D County Cler
/3ju.`
APPRO2D AS TO FORM: ;waft:7i, P/�7W-1
��C unty tt Aorney ` 4i
r r Ji/,' ,- r
1__ C: < <``' %�7 DATE PRESENTED: JUNE 6, 19779
o x
- •
Stnt_of�C�olp1, , Weld County Clerk & Recorder
WELD C0UN(Y, COLORADO OIL AND CAS LEASE
i
' K THIS AGREEMENT made this 3Othday of May 1979 between Weld County, Colorado, a political subdivision of
R`( the State of Colorado, by the Board of County Commissioners-,-for its respective interests, C/0 Board of County Commis-
o' stoners, Weld County Centennial Center, 915 10th Street, Greeley, Colorado 80631, Lessor (whether one or more), and
M MACEY & MERSHON OIL INC. Lessee, WITNESSETH:
1
L\ 1. lessor in consideration of Seventeen Thousand Nine Hundred Twenty Dollars ($17,920.00 ),
( in hand paid, of the royalties herein provided, and of the agreement of Lessee herein contained, hereby grants, leases
and lets exclusively unto Lessee for the purpose of investigating, exploring, prospecting, drilling and mining for and
producing oil, gas and other hydrocarbons, laying pipe lines, building tanks, power stations, telephone lines and other
structures thereon to produce, save, take care of, treat, transport and own said products, and housing its employees,
(subject to all applicable Weld County Zoning Regulations), the following tract of land with any reversionary rights
h therein being situated in the County of Weld, State of Colorado, and described as follows:
c'
e3
Range 66 Township 2 North Section 26 SEa
r
j N
H
z and containing -__ 16 0 acres, more or less ( 160 net mineral acres).
-j 2. Subject to the other provisions herein contained, this lease shall be for a tern of 5 years from this date
(called "primary term") and as long thereafter as oil, gas or other hydrocarbons, is produced from said land hereunder,
or drilling or reworking operations are conducted thereon.
3. The royalties to be paid by Lessee are: (a) on oil, one-eighth of that produced and saved from said land, the
same to be delivered at the wells, or to the credit of Lessor into the pipe line to which the wells may be connected;
Lessee may from time to time purchase any royalty oil in its possession, paying the market price therefor prevailing
for the field where produced on the date of purchase; (b) on gas, including casinghead gas or other hydrocarbon sub-
stance, produced from said land and sold or used off the premises or in the manufacture of gasoline or other products
therefrom, the market value at the well of one-eighth of the gas so sold or used, provided that on gas sold at the
wells the royalty shall be one-eighth of the amount realized from such sale; on sulfur the royalty shall be fifty
cents (505) per long ton. Lessee shall have free use of oil , gas, coal , wood and water from said land, except water
from Lessor's wells, for all operations hereunder, and the royalty on oil and gas shall be computed after deducting
any so used. If a well capable of producing gas in paying quantities is completed on the above described land and is
shut in, this lease shall continue in effect for a period of one year from the date such well is shut in. Lessee or
any assignee may thereafter, in the manner provided herein for the payment or tender of delay rentals, pay or tender
to Lessor as royalty, on or before one year from the date such well is shut in, the sum of $100.00 per well, and, if
such payment or tender is made, this lease shall continue in effect for a further period of one year. In like manner
and upon like payments or tenders annually, made on or before each anniversary of the shut-in date of such well, this
{ lease shall continue in effect for successive periods of twelve (12) months each.
4. If operations for drilling are not commenced on said land as hereinafter provided, on or before one year from
this date, the lease shall then terminate as to both partin',, unless on or before such anniversary date Lessee shall
nay or tender to Lessor, and shall continue as the depository for all rentals payable hereunder regardless of changes
in ownership of said land or the rentals either by convevanre or by the death or incapacity of Lessor, the sum of
One hundred and Sixty Dollar(s) ($ 1. 00) per net mineral acre, (herein called rental), which shall
..ver the privilege of deferring commencement of operations for drilling for a period of twelve (12) months. In like
manner and upon like payments or tenders annually the conxnencement of operations for drilling may be further deferred
for successive periods of twelve (12) months each during the primary term. The payment or tender of rental herein
referred to may be made in currency, or check at the option of the Lessee; and the depositing of such currency, or
check in any post office, properly addressed to the Lessor, on or before the rental paying date, shall be deemed pay-
ment as herein provided. The down cash payment is consideration for the lease according to its terms and shall not
he allocated as mere rental for a period. Lessee may at any time execute and deliver to Lessor or place of record
a release or releases covering any portion or portions of the above described premises and thereby surrender this
lease as to such portion or portions and be relieved of all obligations as to the acreage surrendered, and thereafter
th^ rentals payable hereunder shall be reduced in the proportion that the acreage covered hereby is reduced by said
release or releases.
5. Should any well drilled on the above described land during the primary term before production is obtained be
a dry hole, or should production he obtained during the primary term and thereafter cease, then and in either event,
it operrtinns for drilling an additional well are not commenced or operations for reworking an old well are not pur-
- sued on said land on or before the first rental paying date next succeeding the cessation of production or drilling
or reworking on said well or wells, then this lease shall terminate unless Lessee, on or before said date, shall re-
sume the payment of rentals. Upon resumption of the payment of rental , Section 4 governing the payment of rentals,
shall continue in force just as though there had been no interruption in the rental payments. If during the last year
of the primary term and prior to the discovery of oil, gas, or other hydrocarbons on said land Lessee should drill a
dry hole thereon, or if after discovery of oil, gas or other hydrocarbons before or during the last year of the
pri.niry term the production thereof should cease during the last year of said term from any cause, no rental payment
or operations are necessary in order to keep the lease in force during the remainder of the primary term. If, at the
:if the primary term, Lessee is conducting operations for drilling a new well or reworking an old well, this
lease i,e.erthelessshall continue in force as long as such drilling or reworking operations continue, or if, after the
cxpiratior of the primary term, production on this lease shall cease, this lease nevertheless shall continue in force
if drilling or reworking operations are commenced within sixty (60) days after such cessation of production; if pro-
duction is restored or additional production is discovered as a result of any such drilling or reworking operations,
conducted without cessation of more than sixty (60) days, this lease shall continue as long thereafter as oil, gas,
other hydrocarbons or other mineral is produced and as long as additional drilling or reworking operations are had
without cessation of such drilling or reworking operations for more than sixty (60) consecutive days.
6. Lessee,at its option, is hereby given the right and power to pool or combine the land covered by this lease,
or an; portion thereof, as to oil and gas, or either of them, with any other land lease or leases when in Lessee's
judgment it is necessary or advisable to do so in order to properly develop and operate said premises, such pooling to
be into a well unit or units not exceeding forty (40) acres, plus an acreage tolerance of ten per cent (10%) of forty
(40) acres, for oil, and not exceeding six hundred and forty (640) acres, plus an acreage tolerance of ten per cent
(1011 cr six hundred and forty (640) acres, for gas, except that larger units may be created to conform to any spacing
or well unit pattern that may be prescribed by governmental authorities having jurisdiction. Lessee may pool or com-
bine acreage covered by this lease, or any portion thereof, as above provided, as to oil or gas in any one or more
strata, znd units so formed need not conform in size or area with the unit or units into which the lease is pooled or
combined as to any other stratum or strata, and oil units need not conform as to area with gas units. The ,fooling in
PURPORTED COPY
BOOK 872 2 0
Recorded of ......._.........._------"-- o'clock JUN 1 5197!.
1'793922 d'y '� 4.&4 , `-1-
L'
Rec. No.....................................
3-1 R
- Stnro of of
Rfado,-Weld County Clerk Cr Recorder
BOOKB72 - 1793922
3-a-
one or more instances shall not exhaust the rights of the Lessee hereunder to pool this lease or portions thereof into
other units, Lessee shall execute in writing and place of - - PId an instrument or instruments identifying and describ-
ing the pooled acreage. The entire acreage so pooled into c rit shall he treated for all purposes, except the payment
of royalties, as if it were included in this lease, and drilling or reworking operations thereon or production of oil
or gas therefrom, or the completion thereon of a well as a :,hut-in nos well, shall he considered for all purposes,
except the payment of royalties, as if such operations were on or such production were from or such completion were
on the land covered by this lease, whether or not the well or wells be located „r the premises covered by this lease.
In lieu of the royalties elsewhere herein specified, Lessor shall receive from a unit so formed, only such portion of
the royalty stipulated herein as the amount of his acreage placed in the unit or his royalty interest therein bears
to the total acreage sn pooled in the particular unit involved. Should any unit as originally created hereunder con-
tain less than the maximum number of acres hereinabove specified, then Lessee may at any time thereafter, whether
before or after production is obtained on the unit, enlarge such unit by adding additional acreage thereto, but the
enlarged unit shall in no event exceed the acreage content hereinabove specified. In the event an existing unit is
so enlarged, Lessee shall execute and place of record a supplemental declaration of unitization identifying and
describing the land added to the existing unit; provided, that if such supplemental declaration of unitization is not
filed until after production is obtained on the unit as originally created, then and in such event the supplemental
declaration of unitization shall not become effective until the first day of the calendar month next following the
filing thereof. In the absence of production Lessee may terminate any unitized area by filing of record no' ce of
termination.
7. Lessee also shall have the right to unitize, pool, or combine all or any part of the above described lands -
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 such 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 such 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 such plan or agreement, and this lease
shall not terminate or expire during the life of such plan or agreement. In the event that said above described
lands or any part 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 al-
located and not to any other tract of land and the royalty payments to be made hereunder to Lessor shall he based
upon production only as so allocated. Lessor shall formally 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 Lessee.
ft. Lessee shall have the right at any time without Lessor's consent to surrender all or any portion of the
leased premises and be relieved of all obligation as to the acreage surrendered. Lessee shall have the right at.
any time during or after the expiration of this lease to remove all property and fixtures placed by Lessee on said
land, including the right to draw and remove all casing. When required by Lessor, Lessee will bury all pipe lines
below ordinary plow depth, and no well shall be drilled within two hundred (200) feet of any residence or barn now
on said land without Lessor's consent. The Lessee agrees to ur'nmpt.ly pay to the owner thereof any damages to crops,
or improvements, caused by or resulting from any operations of Lessee. All disturbed portions of surface land are
to he returned to original condition within time desionateri by Lessor.
9. The rights of either party hereunder may be assicued,• in whole or in part, and the provisions hereof shall
extend to the heirs, successors and assigns of the parties hereto, but no such assignment shall be effective or
binding until written notice of the assignment is submitted by the assigning party to the other party. Upon the
receipt of such notice by Lessor, Lessee shall be relieved of all obligations with respect to the assigned portion
or portions arising subsequent to the date of assignment. Nn change in the ownership of land or any interest
therein, shall he binding on Lessee until Lessee shall be furnished with evidence of any transfer, inheritance or
sale of said rights. In the event of the assignment of this lease as to a segregated portion of said land, the
rentals payable hereunder shall be apportionable among the several leasehold owners ratably according to the surface
area of each, and default in rental payment by one shall not affect the rights of other leasehold owners hereunder.
10. All express or implied covenants of this lease shall he subject to all federal and State Laws, fxecnl.lie
Orders, Rules or Regulations, and this lease shall not he termirated, fn 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, Pule ':r Regulation, or if prevented by an act of God, of the public enemy, labor disputes, inability
to chtain material , failure of transportation, or other cause beyond the control of Lessee.
• If „uring the term of this lease, oil or gas or other hydrocarbons is discovered upon the leased premises, but
Lessee is prevented from producing the same by reason of any of the causes set out in this Section, this lease shall
nevertheless be considered as producing and shall continue in full force and effect until Lessee is permitted to pro-
duce the oil , gas and other hydrocarbons, and as long thereafter as such production continues in paying quantities
or drilling or reworking operations are continued as elsewhere herein provided.
il. Lessor does not warrant title to said real estate or to the mineral interests in said real estate, however,
it is agreed that if Lessor owns less than 100% of the minerals, then, and in that.event, the royalties and rentals to
be paid Lessor shall be reduced proportionately.
12. Not withstanding any provision of this lease to the contrary, no operations shall be conducted on the above
described land without written notice to the Lessor.
13.. Upon the termination of this lease in whole or in part by election or by failure to make payments as afore-
said, Les.,a or its assigns shall within thirty (30) days release by written instrument the land or portion thereof
which said lease terminates, and said notice shall also be sent to Lessor giving the hook and page number of said
lease. It is expressly understood that this lease is subject to and controlled by any law of the State of Colorado
now in effect restricting or limiting the powers of counties or boards of county conmlissioners, and any provision
herein in conflict therewith shall he inoperative and void.
14. All of the provisions of this lease shall inure to the benefit of and be binding upon the parties hereto,
their heirs, administrators, successors and assigns.
,' ..
i
BOOK 1793922
872
3-3
15. This agreement shall be binding on each of the above named parties who sign the same, regardless of whether
it is signed by any of the other parties.
IN WITNESS WHEREOF, this instrument is executed on the date first above written.
' BOARD OF COUNTY COMMISSIONERS
ELD COUNTY, COLORADO
Aett
a
2 E[
ATTEST: -� yid//--- _ //�
Weld'Coun Clerk and Recorder • }-<Z II-4./ —Y •
and Clerk ! the, Board kr, > rd t,� ')( . / a{
Cti<Ri1'. . (�fl.�,
TEST:
_ LESSEE:
MACEY & MERSHON OIL INC.
Assistant Secretary 2
BY /4,f—(2'712 . x%27 c'2^1_cL 7,
STATE. F COLORADO ) Executive Vice—Presi t
SS.
COON IY OF WE I U
The foregoing instrument was acknowledged before me this 22nd day of May 7979 by
Paul M. Mershon, Jr. , as Executive Vice-President of MACEY & MERSHON OIL INC.
j f mm� ssrfTt�—Wri r��.. Witness my hand and official seal,
DIANE I_, HLIl'ALA
GFkF.PAL hl1TARY
ti:. 'SiAiE ^r OLOI:ADO
L/ My wmn,irsi0n exrires •
INovnmber 24, 1379 i _6[�l�Q/f!(t Pal-
_������
. . Not ry Pui is —. _— -
Hello