HomeMy WebLinkAbout820004.tiff AR191O779
RESOLUTION
RE: AUTHORIZATION OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY
OWNED BY WELD COUNTY, COLORADO, LOCATED IN SECTION 3, TOWN-
SHIP 4 NORTH, RANGE 67 WEST OF THE 6TH P.M. , WELD COUNTY,
COLORADO
WHEREAS, the Board of County Commissioners of Weld County,
u c Colorado, pursuant to Colorado statute and the Weld County Home
V
Rule Charter, is vested with the authority of administering the
affairs of Weld County, Colorado, and
LiJ WHEREAS , Weld County, Colorado is the owner of vast acres
3
^ of mineral lands located in Weld County, Colorado, and
WHEREAS, a portion of said mineral acres presently is not
— leased, and
WHEREAS , said unleased mineral acres were put up for bid
to lease, and
co
Z WHEREAS, Calvin Petroleum Corporation, 145 1st Street, Ft.
rL Lupton, Colorado 80621, submitted the high bid to lease the
re
following described mineral lands, to-wit:
N W
zTownship 4 North, Range 67 West of the
z 6th P.M. , Weld County, Colorado
Section 3 : a strip 100 ' wide being 50 '
0.
} wide on each side of a center line desc.
vs
;_ ¢ as follows: Beg. at a pt. on the NL of
r the County road on the S. of said NE 1/4 ,
min 51' M/L W. of the WL of the Co. road on
a a the E of said NE 1/4; th. N 37°42 ' W
3238 ' , Th NW' ly on a 1° 30 ' curve to left
347 ' to a pt. on NL of NE 1/4, 463 ' E of
NWc thereof a distance of 3585 ' conveyed
in Bk. 292, Pg. 165
WHEREAS, said described parcel contains 8. 23 land acres and
8. 23 net mineral acres, more or less, and
WHEREAS, said mineral lands shall be leased for the total
sum of ONE THOUSAND, TWO HUNDRED FORTY TWO and 73/100 DOLLARS
($1,242. 73) , together with a rental fee of ONE DOLLAR ($1. 00)
per net mineral acre, which lease is to run for a period of
three (3) years, commencing December 1, 1982, and ending December
1, 1985, and
WHEREAS , Weld County desires to accept the high bid offer
of Calvin Petroleum Corporation to lease the above described
mineral acreage.
820004
Page 2
o RE: OIL & GAS LEASE - CALVIN PETROLEUM CORP.
u 3 NOW, THEREFORE, BE IT RESOLVED by the Board of County Com-
ore
Lu
missioners of Weld County, Colorado that the high bid offer of
Calvin Petroleum Corporation, 145 1st Street, Ft. Lupton, Colo-
rado 80621, be, and hereby is , accepted for a period of three
(3) years with the total sum being as above listed.
The above and foregoing Resolution was, on motion duly made
l z
o
and seconded, adopted by the following vote on the 1st day of
December, A.D. , 1982.
LU
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
rz
az ! G/ ],
d T. Martin Chairman
,e1 ti c Carlson, Pro-Tem
corn
EXCUSED
Norman Carlson
t, c c 7/
W. Kir y
k-1/1
I' I f uu,; v'`titai <-1,-"-/"/ e K. St inmark
ATTEST: W/�
Weld County Clerk and Recorder
and Clerk to the Board
7 r
Ey,: �� l( �tiwtlt /0 A
Deputy County" Clerk:
APIA.R V D AS TO
County Attorney
DATE PRESENTED: December 6 , 1982
WELD COUNTY. COLORADO OIL AND CAS LEASE ^3r
7115 .1t18'.EMENT made this 1St say of December , 19 82 between Weld County, Colorado, a political subdivision o
tne "tate of Colorado, by the Board of County Commissioners, for its respective interests, C/0 Board of County Commis
.,, an c^e s. 'weld County Centennial Center, 915 10th Street, Greeley, Colorado 80631 , Lessor (whether one or more), and
Calvin Petroleum Corporation, 145 1st, Ft. Luoton,Cyssee, WITNESSETH:
m V 1. ' essor in consideration of One Thousand, Two Hundred Fortttzr Two .and73/ Dollars (S 1,242.73 )
in hand paid,of the royalties herein provided, and of the agreement bf Lessee herein contWed, hereby grants, lease
and lets exclusively unto Lessee for the purpose of investigating, exploring, prospecting, drilling and miring for an
uroducing oil , gas and other hydrocarbons, laying pipe lines , building tanks, power stations, telephone lines and oth
,-.x
structures thereon to produce, save, take care of, treat, transport and own said products, and housing its employees,
U : (subject to all applicable Weld County Zoning Regulations), the following tract of land with any reversionary rignts
therein being situated in the County of Weld, State of Colorado, and described as follows:
era Lk Township 4 North, Range 67 West of the 6th P. M.
Section 3: a strip 100 ' wide, being 50 ' wide on each side of a center
line desc. as follows: Beg. at a pt. on the NL of the County road on
; r the S. of said NE 1/4 , 51 ' M/L W. of the WL of the Co. road on
ri the E of said NE 1/4 ; Th. N 37° 42 ' W 3238 ' , Th NW' ly on a 1O 30 '
curve to left 347 ' to a pt. on NL of NE 1/4 , 463 ' E of NWc thereof
r .' a distance of 3585 ' , conveyed in Bk. 292 kItYe1)65
and containing 8.2 3 acres,more or ss 2 23 net mi nera
4.4 ri
t- 2. Subject to the other provisions herein contained, this lease shall be for a term of 3 years from this dat
-- z (called "primary term") and as long thereafter as oil , gas or other hydrocarbons, is produced from said land hereunde
0 _ or drilling or reworking operations are conducted thereon.
ry,. 3. The royalties to be paid by Lessee are: (a) on oil , one-eighth of that produced and saved from said land, th
re same to he delivered at the wells, or to the credit of Lessor into the pipe line to which the wells may be connected;
M Lessee may from time to time purchase any royalty oil in its possession, paying the market price therefor prevailing
ti . for the field where produced on the date of purchase; (b) on gas, including casinghead gas or other hydrocarbon sub-
N i• stance, produced from said land and sold or used off the premises or in the manufacture of gasoline or other products
0 therefrom, the market value at the well of one-eighth of the gas so sold or used, provided that on gas sold at the
zwells the royalty shall be one-eighth of the amount realized from such sale; on sulfur the royalty shall be fifty
- z
.f ._ cents (50C) per long ton. Lessee shall have free use of oil , gas, coal , wood and water from said land, except water
`ram Lessor's wells, for all operations hereunder, and the royalty on oil and gas shall be computed after deducting
V } any so used. If a well capable of producing gas in paying quantities is completed on the above described land and is
ei e
LLI ,` shut in, this lease shall continue in effect for a period of one year from the date such well is shut in. Lessee or
Cr' r ans. assignee may thereafter, in the manner provided herein for the payment or tender of delay rentals, pay or tender
Pei :.
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
.,.r ,w, such payment or tender is made, this lease shall continue in effect for a further period of one year. In like manner
5.. 5Z and upon like payments or tenders annually, made on or before each anniversary of the shut-in date of such well, this
,ck
. 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 fro
this date, the lease shall then terminate as to both parties, unless on or before such anniversary date Lessee shall
nay or tender to Lessor, and shall continue a5 the depository for all rentals payable hereunder regardless of changes
in ownership of said land or the rentals either by conveyance or by the death or incapacity of Lessor, the sum of
Eight and 23/100 Dollar:(s) (81 . 00 ) per net mineral acre, (herein called rental), which shall
cover 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 commencement 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
the 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 be obtained during the primary term and thereafter cease, then and in either event,
if operations 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-
sre 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 yea
of tne primary term and prior to the discovery of oil , gas, or other hydrocarbons on said land Lessee should drill a
dry mole thereon, or if after discovery of oil , gas or other hydrocarbons before or during the last year of the
pr:rary 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
exciration of the primary term, Lessee is conducting operations for drilling a new well or reworking an old well, thi
ease nevertheless shall continue in force as long as such drilling or reworking operations continue, or if, after the
e,.riration 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.
cor c.,cted without cessation of more than sixty (60) days, this lease shall continue as long thereafter as oil , gas,
comer 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 any portion thereof, as to oil and gas, or either of them, with any other land lease or leases when in Lessee's
jucoment it is necessary or advisable to do so in order to properly develop and operate said premises, such pooling I
be into a well unit or units not exceeding forty (40) acres, plus an acreage tolerance of ten per cent (lot) of fort)
( T; acres, for oil, and not exceeding six hundred and forty (640) acres, plus an acreage tolerance of ten per cent
'. ; of six hundred and forty (640) acres, for gas, except that larger units may be created to conform to any spacir
or ..ell unit pattern that may be prescribed by governmental authorities having jurisdiction. Lessee may pool or co^.
arreaee covered by .this lease, or any portion thereof, as above provided, as to oil or gas in any one or more
s.trita, and units so formed need not conform in size or area with the unit or units into which the lease is pooled m
'ned as to any other stratum or strata, and oil units need not conform as to area with gas units. The eoolinc ii
2
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 record an instrument or instruments identifying and describ-
ing the pooled acreage. The entire acreage so pooled into a unit shall be 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 shut-in gas well, shall be considered for all purposes,
?xcept the payment of royalties, as if such operations were on or such production were from or such completion were
L: ^ m the land covered by this lease, whether or not the well or wells be located on the premises covered by this lease.
0 0 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 so pooled in the particular unit involved. Should any unit as originally created hereunder con-
Cain less than the maximum number of acres hereinabove specified, then Lessee may at any time thereafter, whether
pefore 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
C: Ili >o enlarged, Lessee shall execute and place of record a supplemental declaration of unitization identifying and
V 3 iescribing 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
leclaration 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 notice of
z termination.
G
Lo 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
ir 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
r` z 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
^i P paid hereunder to Lessor, be regarded as having been produced from the particular tract of land to which it is al-
c^• located and not to any other tract of land and the royalty payments to be made hereunder to Lessor shall be based
Lij
- upon production only as so allocated. Lessor shall formally express Lessor's consent to any cooperative or unit
t0, plan of development or operation adopted by Lessee and approved by any governmental agency by executing the same
`- y upon request of Lessee.
1
8. Lessee shall have the right at any time without Lessor's consent to surrender all or any portion of the
z 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
C on said land without Lessor's consent. The Lessee agrees to promptly 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 be returned to original condition within time designated by Lessor.
o. o. 9. The rights of either party hereunder may be assigned, in whole or in part, and the provisions hereof shall
extend to the heirs, successors and assigns of the parties hereto, but no change or division in ownership of the land,
rentals, or royalties, however accomplished, shall operate to enlarge the obligations or diminish the rights of Lessee.
No change in the ownership of the land or any interest therein, shall be binding on Lessee until Lessee shall be
furnished with a certified copy of all recorded instruments, all court proceedings and all other necessary evidence
of any transfer, inheritance, or sale of said rights. In 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 lease-
hold owners hereunder. -In case Lessee assigns this lease, in whole or in part, Lessee shall be relieved of all obli-
gations with respect to the assigned portion or portions arising subsequent to the date of assignment.
10. 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, or if prevented by an act of God, of the public enemy, labor disputes, inability
to obtain material, failure of transportation, or other cause beyond the control of Lessee.
If during 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.
11. 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 in a provision of this lease to the contrary, no operations shall be conducted on the above
described land without the written consent of 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, Lessee 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 book 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 commissioners, and any provision
herein in conflict therewith shall be inoperative and void.
14. All of the provisions of this lease shall inure to the benefit of and he binding upon the parties hereto,
their heirs, administrators, successors and assigns.
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
WELD COUNTY, COLORADO
1,
ATTEST:
Weld County Clerk a1Sd Recorder
and Clerk to the Board
By: CL- C. i`F'� RI
L � OMAN PEOLELM CORPORATION
9 ��t.
US FIRST STREET
PORT LUPTON,COLORADO Soeat
AtfJ71/e1SEE: 2lFv —
ti
A/' (1-41,44{J
� —c
Secretary
CALVIN PETROLEUM CORP. ._
y, `S.TATE OF COLORADO ) pRE $40726436 .
COUNTY OE WELD w 7t
"}"..C :fa'l l�k�e S�
The for,�goipg instrument was a knowled ed before me this day of 19 by T
*y -p, P LLTZ.0 f of e tit, L� �rtw � ] �a -Jo
My•tomniss ion expires: Witness my hand and official seal, z
T -
J
Notary Public
i484 4 0- -° 42 U t�
aLA.-tA.a , v ? Pi6
z
CD
T e
c
n v`
o Ui
CI CUM C=SSZEIS
CD
BC � I�► E
AUG241982
GREELEY. COLA August 24, 1982
Weld County
Clerk of the County Board of Supervisors
915 10th. Street
Greeley, CO 80631
To Whom it may Concern:
Please regard this as a request to lease the following
acreage, for oil and gas purposes, in Township 4 North,
Range 67 West:
Section 26: .31 AC i,'/L out of the SE!:
Please refer to 131341 , Pg177
j /111 "_ _ Section 3: 8. 23 AC LVI, out of the NE.-
Please refer to B1060, Pg567
Section 24: 4.45 AC I>i/L out of the Ek SE2 ?=-
Please refer to B1071 , Pg61
( Please note that t-he County Records reflect
this parcel to b6,..4.45- 'C LVL and your
file indicates the- parcel to be 2.5AC M/L )
Sincerely
Yours,
r
. ,'noses
910 16th. St. ,Suite 1200
Denver, CO 80202
JQI-Vbh
/
is
!� l—
Hello