HomeMy WebLinkAbout20081977.tiff RESOLUTION
RE: AUTHORIZE OIL AND GAS LEASE COVERING CERTAIN PROPERTY OWNED BY
WELD COUNTY, COLORADO, AND AUTHORIZE CHAIR TO SIGN - N1/2NE1/4 AND
SW1/4NE1/4, S34, T5N, R63W
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, Weld County, Colorado, is the owner of vast acres of mineral lands located in
Weld County, Colorado, and
WHEREAS, the Department of Purchasing was authorized to solicit bids for lease of a
portion of said mineral acres not currently leased, and
WHEREAS, Bonanza Creek Energy Company, 4900 California Avenue, #350-B,
Bakersfield, California 93309, submitted the high bid to lease 120 net mineral acres, more or less,
described to-wit:
N1/2NE1/4 AND SW1/4NE1/4 of Section 34, Township 5 North,
Range 63 of the 6th P.M., Weld County, Colorado
WHEREAS,Weld County desires to accept the high bid offer submitted by Bonanza Creek
Energy Company to lease the above described mineral acreage for$3,100.00 per net mineral acre,
for a total sum of$372,000.00, together with an annual rental fee of ONE DOLLAR($1.00)per net
mineral acre, which lease is to run for a period of three (3)years, commencing July 16, 2008, and
ending at 12:00 noon on July 15, 2011, unless otherwise held, as stated in the lease agreement
which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the high bid offer of Bonanza Creek Energy Company be, and hereby is,
accepted for a period of three (3) years.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized to
sign said lease.
2008-1977
LE0170
e ' ONA-fgt.+ /mod/o
OIL AND GAS LEASE - N1/2NE1/4 AND SW1/4NE1/4, S34, T5N, R63W
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The above and foregoing Resolution was,on motion duly made and seconded, adopted by
the following vote on the 16th day of July, A.D., 2008.
I��� BOARD OF COUNTY COMMISSIONERS
l`" a WELD COUNTY, COLORADO
a
ATTEST: 414111 6 4.4 � k G,
y Ar is H. Jerke, Chair
Weld County Clerk to th ' d
.♦ / ? �� Robert DBY: . asden, ro-Tern
Deputy Cler o the Board
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AP D AS M:
David E. Long
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Date of signature: 8/7/0?
2008-1977
LE0170
•
171 WELD COUNTY OIL AND GAS LEASE
Containing 120.00 acres, more or less:
Containing 120.00 net mineral acres, more or less:
THIS LEASE AGREEMENT, dated this 16th day of July , 2008 , made and
entered into by and between WELD COUNTY, COLORADO, a political subdivision of the STATE OF COLORADO,
acting by and through the BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD,for its respective
interests,do BOARD OF COUNTY COMMISSIONERS,91510TH STREET, P.O.BOX 758,GREELEY,CO 80632,
hereinafter called Lessor, and: BONANZA CREEK ENERGY OPERATING COMPANY, LLC, A DELAWARE
LIMITED LIABILITY COMPANY, 4900 CALIFORNIA AVE., #350-B, BAKERSFIELD, CA 93309
hereinafter called Lessee:
WITNESSETH
WHEREAS, said Lessee has applied to Lessor for an oil and gas lease covering the land herein described,and has
paid a filing fee in the amount of$10.00, plus a bonus consideration of$3,100.00 per mineral acre, fixed by Lessor
as an additional consideration for the granting of this lease, and Lessee agrees to pay an annual rental of
$ 120.00 , computed at the rate of$ 1.00 , per mineral acre or fraction thereof per year, and the following
consideration:
WHEREAS,all the requirements relative to said application have been duly complied with and said application
has been approved and allowed by Lessor;
THEREFORE, in consideration of the agreements herein, on the part of Lessee to be paid, kept and performed,
Lessor does lease exclusively to Lessee for the sole and only purpose of drilling for,development of and production
of oil and gas, or either of them, thereon and there from with the right to own all oil and gas so produced and saved
there from and not reserved as royalty by Lessor under the terms of this lease, together with rights-of-way,
easements and servitudes for pipelines, telephone and telegraph lines, tanks and fixtures for producing and caring
for such product, and housing and boarding employees, and any and all rights and privileges necessary for the
exploration and operation of said land for oil and gas, the following described land situated in the County of Weld,
State of Colorado, and more particularly described as follows:
DESCRIPTION OF LAND SECTION TOWNSHIP RANGE
N'ANE'% and SW ANEY< 34 5N 63W
TO HAVE AND TO HOLD said land, and all the rights and privileges granted hereunder to Lessee until the hour
of twelve o'clock noon on the 15th day of July , 2011 as primary term, and so long
thereafter as oil and gas, or either of them, is produced in paying quantities from said land or Lessee is diligently
engaged in bona fide drilling or reworking operations on said land,subject to the terms and conditions herein. Drilling
or reworking operations shall be deemed to be diligently performed if there is no delay or cessation thereof for a
greater period than sixty consecutive days unless an extension in writing is granted by lessor; provided that such
drilling or reworking operations are commenced during said primary term or any extension thereof or while this lease
is in force by reason of production of oil and gas or either of them,or that such reworking is commenced within sixty
days upon cessation of production for the purpose of re-establishing the same, and provided further that such
production is commenced during such primary term or any extension thereof, or while this lease is in force by reason
of such drilling or reworking operations or other production.
EXPLORATION-Lessor reserves the right to conduct exploration on the leased land provided such exploration
does not interfere with rights granted herein.
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In consideration of the premises, the parties covenant and agree as follows:
1. RENTAL- If this lease is extended for an additional term as provided for in the EXTENSION paragraph
hereof, Lessee shall pay to Lessor the sum of One Dollar($1.00) per acre for the land covered hereby as
delayed rental for the term of the extension. Rentals set at the time of established production shall be paid
during the remaining life of this lease, annually, in advance, on or before each anniversary date hereof.
There shall be no refund of unused rental.
2. ROYALTY-Lessee shall account for any and all substances produced on the leased land and Lessee shall
pay to Lessor as royalty, in addition to the rentals provided, but except for products used on the leased
land, unavoidably lost or flared on the leased land, with approval of Lessor, the following:
A. On oil, 20% of the oil produced and saved from the leased land.
At the option of Lessor, and with sixty(60) days' notice to Lessee, Lessor may take its royalty oil in
kind, in which event Lessee shall deliver such royalty oil to Lessor on the leased land,free of cost or
deduction, into the pipelines or storage tanks designated by Lessor, but Lessee shall not in such case
be required to provide free tankage for any such oil for a longer period than one month after the same
is run into tanks. With sixty(60)days' notice to Lessee, Lessor may cease taking oil royalty in kind.
When paid in cash, the royalty shall be calculated upon the fair market value of the oil at the well
which shall not be deemed to be less than the price actually paid to Lessee at the well by the
purchaser thereof; and in no event shall the royalties be based upon a market value at the well less
than the posted price in the field for such oil, or in the absence of a posted price in the field for such
oil, upon a market value at the well less than the prevailing price received by other producers in the
field for oil of like grade and gravity at the time such oil is run into pipelines or storage tanks.
B. On gas, including casing head gas or other gaseous substance, 20% of the fair market value at the
well or of the price received by Lessee at the well, whichever is greater, of all gas produced and sold
from the leased land or utilized off the land by Lessee. A copy of all contracts for sale of gas shall be
furnished to Lessor. Where gas is sold under contract that has been approved by Lessor, the fair
market value of such gas for determining the royalties payable hereunder shall be the price at which
such gas is sold under such contract. No approval by Lessor of the terms of any such agreement
shall operate to make Lessor a party thereto or obligate it there under in any way. At the option of
Lessor, and with sixty(60)days' notice to Lessee, Lessor may take its royalty in kind. With sixty(60)
days' notice to Lessee, Lessor may cease taking gas royalty in kind.
C. All costs of marketing the oil and/or gas produced shall be borne by Lessee and such costs shall not
directly or indirectly reduce the royalty payments to Lessor. Except that marketing costs for Lessor's
in-kind royalty shall be borne by Lessor.
D. If Lessor owns a lesser interest in the oil and gas deposits of the above-described land than the entire
and undivided fee simple estate,then the royalties and rentals herein provided shall be paid to Lessor
only in the portion which its interest bears to the whole and undivided fee, but no refund of any bonus
consideration shall be made by Lessor hereunder.
3. RECORDS-Lessee agrees to keep and to have in possession complete and accurate books and records
showing the production and disposition of any and all substances produced on the leased land and to
permit Lessor, at all reasonable hours, to examine the same, or to furnish copies of same to Lessor upon
request along with purchaser's support documentation. Lessor will not be unreasonable with requests. All
said books and records shall be retained by Lessee and made available in Colorado to Lessor for a period
of not less than five years.
4. MEASUREMENTS - All production shall be accurately measured using standards established by the
American Gas Association(AGA)and/or the American Petroleum Institute(API)and all measuring devices
shall be tamper proof as nearly as possible. Oil royalties due within the terms of this lease shall be
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calculated on actual and accurate measurements within API standards unless a different means of
measurement, subject to Lessor's approval, is provided.
5. PAYMENTS AND REPORTS-All payments and reports due hereunder shall be made on or before the day
such payments and reports are due. Nothing in this paragraph shall be construed to extend the expiration
of the primary term hereof.
Oil royalty payments and supporting documents shall be submitted prior to the last day of the month
following each month's sale of production, and gas royalty payments and supporting documents shall be
submitted prior to the last day of the second month following each month's sale of production.
All payments shall be made by cash,check, certified check, or money order. Payment having restrictions,
qualifications, or encumbrances of any kind whatsoever shall not be accepted by Lessor. A penalty for a
late payment shall be charged as set forth in the PENALTIES paragraph herein.
6. PENALTIES - A penalty shall be imposed for, but not limited to late payments, improper payments,
operational deficiencies, violation of any covenant of this lease, or false statements made to Lessor.
Penalties shall be determined by Lessor unless otherwise provided for by law and may be in the form of,
but not limited to, interest,fees,fines, and/or lease cancellation. A penalty schedule shall be prepared by
Lessor and shall become effective immediately after public notice. Said schedule may be changed from
time to time after public notice.
7. LAW -The terms and conditions of this lease shall be performed and exercised subject to all laws, rules,
regulations, orders, local ordinances or resolutions applicable to and binding upon the administration of
lands and minerals owned by the County of Weld, and to laws, rules and regulations governing oil and gas
operations in Colorado. Violations shall result in penalties as provided for by law or as set forth in the
aforementioned schedule or shall, at the option of Lessor, result in default as provided hereinafter.
8. SURRENDER - Lessee may at any time, by paying to Lessor all amounts then due as provided herein,
surrender this lease insofar as the same covers all or any portion of the land herein leased and be relieved
from further obligations or liability hereunder with respect to the land so surrendered; provided that no
partial surrender or cancellation of this lease shall be for less than contiguous tracts of approximately forty
(40) acres or Governmental lot corresponding to a quarter-quarter section; provided further that this
surrender clause and the option herein reserved to Lessee shall cease and become absolutely inoperative
immediately and concurrently with the institution of any suit in any court of law by Lessee, Lessor or any
assignee of either to enforce this lease, or any of its terms expressed or implied. In no case shall any
surrender be effective until Lessee shall have made full provision for conservation of the leased products
and protection of the surface rights of the leased land.
9. ASSIGNMENTS -
A. Lessee,with prior written consent of Lessor, shall have the right to assign the entire leasehold interest
of said Lessee in all or part of the land covered hereby, but not less, however,than contiguous tracts
of approximately forty(40) acres or Governmental lot corresponding to a quarter-quarter section for
any partial assignment,and for approval of such assignment Lessor shall make an assignment charge
in an amount to be determined by Lessor. Prior to written approval by Lessor of assignment of this
lease, Lessee(assignor)shall not be relieved of its obligations under the terms and conditions herein.
An assignment shall not extend the term of this lease.
B. If any assignment of a portion of the land covered hereby shall be approved, a new lease shall be
issued to the assignee covering the assigned land, containing the same terms and conditions
as this lease, and limited as to term as this lease is limited, and the assignor shall be released and
discharged from all further obligations and liabilities as to that portion so assigned.
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C. Lessee shall notify Lessor of all assignments of undivided percentage or other interests. Said
interests will not be recognized or approved by Lessor, and the effect of any such assignments will be
strictly and only between the parties thereto, and outside the terms of this lease: and no dispute
between parties to any such assignment shall operate to relieve Lessee from performance of any
terms or conditions hereof or to postpone the time therefore. Lessor shall at all times be entitled to
look solely to Lessee or his assignee shown on its books as being the sole owner hereof, and for the
sending of all notices required by this lease and for the performance of all terms and conditions
hereof.
D. Although not binding on Lessor, all instruments of every kind and nature whatsoever affecting this
lease should be filed with the Lessor.
10. OVERRIDING ROYALTY-Any and all reservations or assignments or overriding royalties shall be subject
to approval by Lessor. The total of said overriding royalties shall not exceed five percent(5%), including
any overriding royalty previously provided for unless production exceeds a monthly average of fifteen(15)
barrels per day or ninety thousand cubic feet of gas per day(90 MCF/D). In the event production drops to
this amount or less, any overriding royalties which exceed five percent(5%)may be suspended. Lessor's
approval of a reservation or assignment of an overriding royalty shall not bind Lessor for payment of said
overriding royalty and shall not relieve Lessee of any of its obligations for payment of royalties to Lessor as
provided by ROYALTY paragraphs herein.
11. OFFSET WELLS - Lessee agrees to protect the leased land from drainage by offset wells located on
adjoining lands not owned by Lessor,when such drainage is not compensated for by counter-drainage. It
shall be presumed that the production of oil and gas from offset wells results in drainage from the leased
land, unless Lessee demonstrates to Lessor's satisfaction, by engineering, geological, or other data, that
production from such offset well does not result in such drainage, or that the drilling of a well or wells on the
leased land would not accomplish the purposes of protecting the deposits under the leased land. Lessor's
decision as to the existence of such drainage shall be final, and Lessee shall comply with Lessor's order
thereon or surrender this lease as to any such undeveloped acreage as designated by Lessor.
12. DEVELOPMENT - Upon discovery of oil and gas or either of them on the leased land, Lessee shall
proceed with reasonable diligence to develop said land at a rate and to an extent commensurate with the
economic development of the field in which the leased land lies.
13. POOLING CLAUSE - Lessee may at any time or times pool any part or all of said land or lease or any
stratum or strata with other lands and leases, stratum or strata, in the same field so as to constitute a
spacing unit to facilitate an orderly or uniform well-spacing pattern or to comply with any order, rule, or
regulation of the State or Federal regulatory or conservation agency having jurisdiction. Such pooling shall
be accomplished or terminated by filing of record a declaration of pooling, or declaration of termination of
pooling, and by mailing or tendering a copy to Lessor, or to the depository bank. Drilling or reworking
operations upon or production from any part of such spacing unit shall be considered for all purposes of
this lease as operations or productions from this lease. Lessee shall allocate to this lease the proportionate
share of production which the acreage in this lease included in any such spacing unit bears to the total
acreage in said spacing unit.
14. UNITIZATION - COMMUNITIZATION - In the event Lessor permits the land herein leased to be
included within a communitization or unitization agreement, the terms of this lease may be deemed to be
modified to conform to such agreement. When only a portion of the land under this lease is committed by
an agreement, Lessor may segregate the land and issue a separate lease for each portion not committed
there under; the term of such separate lease shall be limited as to the original term of this lease. The
terms of the lease on that portion remaining in the unit shall be deemed to be modified to conform to such
agreement. Non-producing leases shall terminate on the first anniversary date of the lease following the
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termination date of the unit or part thereof modifying the lease, but in no event prior to the end of the
primary term of the lease or the extension term of the lease.
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15. PRODUCTION-Lessee shall, subject to applicable laws, regulations and orders,operate and produce all
wells upon the leased land so long as the same are capable of producing in paying quantities, and shall
operate the same so as to produce at a rate commensurate with the rate of production of wells on adjoining
lands within the same field and within the limits of good engineering practice, except for such times as
there exist neither market nor storage therefore, and except for such limitations on or suspensions of
production as may be approved in writing by Lessor. Lessee shall be responsible for adequate site security
on all producing properties.
16. SHUT-IN WELLS - If Lessee shall complete a well on the leased land productive of gas and Lessee is
unable to produce such gas due to a lack of suitable market therefore, Lessor may grant Lessee
suspension of his obligations to produce hereunder until a suitable market for such gas can be found, and
during any such suspension period, it shall be deemed that gas is being produced hereunder in paying
quantities. Except, however, that beginning on the anniversary date next,of the year of an extension of the
lease by reason of a shut-in well, Lessee shall pay to Lessor a shut-in royalty equal to$2.00 per acre of the
lease per annum in addition to the annual rental. The minimum amount of such shut-in royalty payment
shall be$240. Each year's shut-in royalty shall be forfeited to Lessor except for the shut-in royalty paid for
the year during which the well begins production. The maximum extension of the lease, due to the
existence of a shut-in well, shall be five years beyond the extension term as described in the EXTENSION
paragraph herein. The granting of any further extensions shall be at the sole option of Lessor.
17. OPERATIONS-No exploration,drilling or production operation, including permanent installations,shall be
within 200 feet of any existing building or other improvement, including water well or reservoir,without the
written permission of the owner of said improvements. Lessee shall keep a correct log of each well drilled
hereunder, showing by name or description the formations passed through, the depth at which each
formation was reached, the number of feet of each size casing set in each well, where set, and the total
depth of each well drilled. Lessee,within thirty(30)days after the completion or abandonment of any well
drilled hereunder, shall file in the office of Lessor a complete and correct log of such well, together with a
copy of the electric log and the radioactivity log of the well when such logs, or either of them, are run; and
also a copy of all drill stem test results, core records and analyses, record of perforations and initial
production tests, if any. If any of the information required by this paragraph is contained in reports required
to be filed with the Oil and Gas Conservation Commission of Colorado, the requirements of this paragraph
for such information may be satisfied by such filing with said Commission,except for copies of the reports
as are required by the following paragraph, and provided that all such information is immediately available
to Lessor. Any proprietary information so submitted shall not be subject to public inspection under
Colorado law.
Lessee shall bury pipelines below plow depth. Lessee shall set and cement sufficient surface casing to
protect the fresh water wells of the area.
18. NOTIFICATION - Lessee shall notify Lessor and the surface lessee or surface owner of the location of
each drill site at least two weeks prior to commencing drilling operations thereon. Lessee shall notify
Lessor before commencing to plug and abandon any well by copy of Lessee's request for approval or
sundry notice of intent to plug and abandon.
19. BONDS-Lessee shall be liable for all damages to the surface of the land, livestock, growing crops,water
wells, reservoirs, or improvements caused by Lessee's operations on said land. No operations shall be
commenced on the land hereinabove described unless and until Lessee shall have filed a good and
sufficient bond with Lessor, in an amount to be fixed by Lessor, to secure the payment for such damages
as may be caused by Lessee's operations on said land and to assure compliance with all the terms and
provisions of this lease, the laws of the State of Colorado, and the rules and regulations thereto
appertaining. A bond may be held in effect for the life of production of any well.
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20. SETTLEMENT-Lessee shall not remove any machinery, equipment or fixtures placed on said land,other
than drilling equipment, nor draw the casing from any well unless and until all payments and obligations
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currently due Lessor under the terms of this lease shall have been paid or satisfied. Any machinery,
equipment or fixtures left on this land for a period of more than six(6) months after the expiration hereof,
shall automatically become the property of Lessor.
21. OTHER DISCOVERY-Should Lessee discover any valuable products other than oil and gas, on or within
the leased land, Lessee shall within seven(7)days report such discovery to Lessor, in which event Lessee
and Lessor may negotiate a provision for production of such discovery.
22. WATER - This lease does not grant permission, express or implied, to Lessee for water exploration,
drilling, or establishing water wells without the written permission of the surface owner. If Lessor is the
surface owner, said permission shall not be unreasonably withheld. If Lessee desires to establish or
adjudicate any water right for beneficial use on the leased land, any such adjudication or application shall
be in the name of Lessor if Lessor is the surface owner. The same shall apply to any non-tributary water
rights established on the leased land which may be put to beneficial use off said land.
23. DEFAULT - Upon failure or default of Lessee to comply with any of the terms and provisions hereof
including but not limited to the failure to comply with laws, rules and regulations governing Colorado oil and
gas operations, Lessor is hereby authorized upon notice and hearing, as hereinafter provided, to cancel
this lease as to all of the leased land so claimed or possessed by lessee hereunder. In the event of any
such default or failure, Lessor shall, before making any such cancellation,send to Lessee by certified mail,
to the post office address of said lessee as shown by the records of Lessor, a notice of intention to cancel
for such failure or default, specifying the same, stating that if within thirty(30)days from the date of mailing
said notice, Lessee shall correct such failure or default, no cancellation will be made. If such failure or
default is not corrected within thirty (30) days after the mailing of such notice, and if Lessee does not
request a hearing on such notice within thirty (30) days, this lease will terminate and be canceled by
operation of this paragraph without further action by Lessor, or further notice to Lessee.
24. EXTENSION-If Lessee fails to make discovery of oil and gas, or either of them, in paying quantities during
the primary term hereof, or during drilling operations commenced during the primary term hereof, Lessee
may make written application to Lessor for an extension of this lease. The granting of such extension shall
be at the sole option of Lessor, according to the following conditions:
A. No lease term will be extended for more than six (6) months from the original expiration date.
B. That the Lessee shall pay to the Lessor the sum of one-third of the original bonus, with a minimum
bonus of Ten Dollars ($10.00) per acre.
C. The Lessee must pay to the Lessor the sum of One Dollar($1.00) per acre leased as delayed rental
for the term of the extension.
D. That the royalty will remain the same.
25. HOLD HARMLESS-Lessee shall indemnify Lessor against all liability and loss,and against all claims and
actions, including the defense of such claims or actions, based upon or arising out of damage or injury,
including death, to persons or property caused by or sustained in connection with operations on this leased
land or by conditions created thereby, or based upon any violation of any statute, ordinance, or regulation.
26. CONDEMNATION - If the leased land shall be taken in any condemnation proceeding, this lease shall
automatically terminate as of the date of taking. The award for such condemnation shall be paid to Lessor,
except for any specific award(s) paid to Lessee for severed oil and gas reserves, in which event
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of such specific award(s) shall be paid to Lessor in lieu of royalty lost by virtue of the
condemnation. Improvements shall be removed by Lessee per terms in the SETTLEMENT paragraph
herein. If only a portion of the leased land is taken by condemnation, Lessor may, at its option, terminate
this lease or terminate only that portion of the lease so taken.
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27. ERRORS - Every effort is made by Lessor to avoid errors in all procedures including but not limited to
auction listings and lease preparation. Lessor shall not be liable for any inconvenience or loss caused by
errors which may occur. Lessee shall notify Lessor immediately upon discovery of any errors or
discrepancy whatsoever.
28. ARCHAEOLOGY-Lessee shall not destroy,disturb, mar,collect,remove or alter any prehistoric or historic
resources of any kind on Weld County lands as provided by law. These resources include, but are not
limited to, all artifacts of stone,wood or metal, pictographs,structures, and bones. A discovery of anything
of prehistoric or historic nature shall be reported to Lessor or the State of Colorado Archaeologist
immediately.
29. DEFINITIONS -
A. "Gas"as used herein shall mean all gases(combustible and noncombustible), including but not limited
to all gaseous hydrocarbons, gaseous compounds, carbon dioxide, and helium.
B. "Oil and gas"as used herein shall include all substances produced as by-products therewith,including
But not limited to sulfur.
C. "Paying quantities"as used herein shall mean and refer to quantities of oil and gas or of either of them
sufficient to pay for the current cost of producing same.
30. HEIRS AND ASSIGNS -The benefits and obligations of this lease shall inure to and be binding upon the
heirs, legal representatives, successors or assigns of Lessee; but no sublease or assignment hereof,or of
any interest herein, shall be binding upon Lessor until the same has been approved by Lessor as explained
in the ASSIGNMENTS' paragraph provided.
31. WARRANTY OF TITLE- Lessor does not warrant title to the leased premises, but it shall, upon request,
allow Lessee access to such abstracts and other title papers as it has in its files. There shall be no
obligation on the Lessor's part to purchase new, supplemental,or other title papers; nor to do any curative
work in connection with title to the subject lands. All abstracts of title, whether new or supplementary,
obtained by Lessee and covering the subject lands shall become the property of and be delivered to Lessor
after Lessee has completed its title examination and curative work,subject, however,to the right of Lessee
to use such abstracts upon request at any time during the term of the lease.
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IN WITNESS WHEREOF, Lessor has hereunto signed and caused its name to be signed by the CHAIR,
BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD, with the seal of the office affixed, and
Lessee has sig d thi r m n , th d year first above written.
ATTEST: IE,I4,/�a,,OARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
Weld County Clerk to the Boa ,1R61 � H91—
r ,
r Chair, Board of County Commissioners
07/16/2008
BY: d {1/Y r ►�I �4/r�
Deputy Clerk t. the Board
LESSEE:
BONANZA CREEK ENERGY
OPERATI�ANY, LLC
Michael St zer, President&CEO
By:
•
STATE DO )
COUNTY OF WELD
The foregoing instrument was acknowledged before day of , 20 .
Witness my hand and official seal.
Notary Public
My Commission Expires: see /7ex/ /jar&
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J0C2- 1d(77
ACKNOWLEDGMENT
State of California )
County of Kern )
On July 9 , 20 08 before me, Monica L. Ward-Keller, Notary Public ,
(insert name and title of the officer)
personally appeared Michael R. Starzer ,
who proved to me on the basis of satisfactory evidence to be the personK whose nameis)-
is/ace subscribed to the within instrument and acknowledged to me that he/she/they executed
the same in his/lici/ttieii authorized capacity,(iee- and that by his/her/thetrsignaturefs on the
instrument the person,(s), or the entity upon behalf of which the personS,$)'acted, executed the
instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS m y hand and fficial seal.
(/�1y•ce d/. /��/l�. ,, MONICA L.WARD-KELLER
Signature �u `� s ..- ,, Common M 1514772
9 z rk% Notary Public-calHpMa
tf i ` Kern County
",• My Comm.Ex pkes Oct 20,2008
Type of Document:
Weld County Oil and Gas Lease(Short Form)between Weld County, Colorado, Lessor, and
Bonanza Creek Energy Operating Co., LLC, Lessee affecting the N/2 NE/4 and SW/4 NE/4 of
Section 34, T5N, R63W. .
MID 11111 111111 III111111111111111111 III 1111111111111
3572171 08/14/2008 01:56P Weld County, CO
9 of 9 R 0.00 D 0.00 Steve Moreno Clerk& Recorder
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