HomeMy WebLinkAbout840053.tiff RESOLUTION
RE: ACCEPTANCE OF OIL AND GAS LEASES BETWEEN WELD COUNTY,
COLORADO, AND R. A. RESOURCES, INC.
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 , R. A. Resources, Inc. , P. O. Box 2475 , Greeley,
Colorado, has expressed a desire to lease from Weld County,
Colorado, any mineral interests Weld County may own in four
parcels of land described as:
The Northeast Quarter of the Southeast
Quarter, the West Half of the Northeast
Quarter, the Southeast Quarter of the
Northeast Quarter, and the West Half of the
Northeast Quarter, all in Section 3 , Township
5 North, Range 65 West of the 6th P.M. , Weld
County, Colorado.
WHEREAS, said parcels are located within the confines of the
Greeley-Weld County Airport, and
WHEREAS , R. A. Resources , Inc. , has presented to the Board of
County Commissioners of Weld County, Colorado, a written contract
for the lease of said mineral interests, attached as Exhibit "A, "
and the Board deems it advisable to accept and sign the same , and
WHEREAS, it is understood by the Board that R. A. Resources,
Inc. , will present the Board with a new written contract for the
lease of said mineral interests, a copy of which is attached as
Exhibit "B, " with the City of Greeley, Colorado, the Greeley-Weld
County Municipal Airport Authority, and Weld County, Colorado, as
Lessors, sometime before the expiration of the first lease
attached as Exhibit "A, " said new lease to supercede in full any
and all prior leases for said mineral interests.
A ,LL) / f ,
840053
NOW, THEREFORE, BE IT RESOLVED by the Board of County
Commissioners of Weld County, Colorado, that the Oil and Gas
Leases, attached as Exhibit "A" and as Exhibit "B" , are hereby
accepted.
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 24th day of
October , A. D. , 1984 .
BOARD OF COUNTY COMMISSIONERS
ATTEST: t ,. ,'! WELD COUNTY, COLORADO
il
..--214k$`-',.."-4......-
ice
Weld County Clerk and Recorder
and Clerk tothe Bo d Norman Carlson, Chairman
By: i' /` 4*
Deputy County C �'Jc J. 0 ine J Son, Pro-Tem
APPROVE AS TO F RM• S1/6 giant-
en
R. rantn
County Attorney �_!_.�. .-
C ck Carlson
l-/�L., i 1�7/9/r,ciJQT. Martin
AR19873b7
PRODUCER'S 88-FMCB Paid Up OIL AND GAS LEASE
Rev.1984
PAID UP
THIS AGRE�E(�-MENT,made and into asof the 1 9th day of October ,19 8 4,by and between
i � J�—CI _til.reel. e�—�f1VPY'nPYl'f. }1O111y
Greeley, Colorado 80631
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co hereinafter called"Lessor"(whether one or more)and R A Resner OP9 TTle P _(1 Box 2475 .
o Greeley, Colorado 80632 ,hereinafter called" ",WITNESSETH:
tip 1.Lessor,for and in consideration of the sum of Ten and more DOLLARS($ 19. 00+ ).
U in hand paid,of the royalties herein provided,and of the agreements of Lessee herein contained,hereby grants,demises,I and lets exclusively unto Lessee the
land hereinafter described,for the purpose of investigating,exploring and drilling for,producing,saving,taking,owning,transporting,storing,handling and treating oil
Ll and gas,together with all rights,privileges and easements useful for Lessee's operations hereunder on said land and on lands in the same field,including but not
O W limited to the following rights:to lay pipe lines;to build roads;and to construct tanks,pump and power stations,power and communications lines,and other structures
O $ and facilities. The phrase"oil and gas",as used in this lease,shall embrace all hydrocarbons,as well as other substances produced therewith. The said land Included
• gIn this lease is situated in the County of Weld ,State of Co 1 o r a H o ,and is described as follows,to-wit:
▪ w Township 5 North, Range 65 West, 6th P .M .
oSection 3 : NE±SE4 , WzNE± , SE±NE4 , WNE4NE4
• r4 See Exhibit °Ail attached hereto and by this reference made a part
hereof .
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Including all oil and gas underlying lakes,streams,roads,easements and rights-of-way 0
which traverse or adjoin said land;and including all lands owned or claimed by
11 800.
Lessor as a pan of any tract above described;and containing . acres of land,more or less,hereby releasing and waiving
U I all rights under and by virtue of the homestead exemption laws of this state. This lease shall cover all the interes•In said land now owned by or hereafter vested in Lessor.
w For the purpose of calculating any payments based on acreage,Lessee,at Lessee's option,may act as if said land and its constituent parcels contain the acreage above
stated,whether they actually contain more or less. Lessee may inject water,gas or other substances into any zone or stratum underlying said land and not productive of
O ' fresh water.
'cr O1 2.Subject to the other provisions herein contained,this lease shall remain in force for a period of One ( 1 ) years from the date hereof,
O O called"primary term",and thereafter so long as oil or gas is produced from said land hereunder,or Lessee is engaged in drilling or reworking operations on said land
~ hereunder.
C4 Li 3.Royalties to be paid Lessee are:(a)on oil,d5d£dfei l{QLyof that produced and saved from said land,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,paying therefor the market value in the field where produced on the day it
__ _ is run to the pike line or storage tanks;(b)on gas,Including casinghead gas or other gaseous substance,produced from said land and sold or used,the market value at the
well oPas1441iVh of the gas so sold or used,provided that on_gas sold at the well the royalty shall be1d€Xi 1fiJC/jof the amount realized from such sales;(c)on other
substances produced with oil or gas,and covered by this leaseAr1916INALI4of their value at the well. Where gas from a well capable of producing gas is not sold or used,
Lessee may pay or tender as royalty the sum of One Dollar($1.00)per acre per year on the acreage then held by Lessee hereunder,such payment or tender to be made on
or before the anniversary date of this lease next ensuing after the expiration of ninety days(90)after the date such well is shut in and thereafter on or before the anniversary
date of this lease during the period such well is shut In. If such payment is made,it will be considered that gas Is being produced within the meaning of this lease. Lessee
may use,free of royalty,oil,gas,and water developed from said land by Lessee for all operations hereunder.
4.This is a PAID-UP LEASE. In consideration of the down cash payment,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 times during or after the primary term surrender this lease es to all or any portion
of said land and as to any strata or stratum by delivering to Lessor or by filing for record a release or releases,and be relieved of all obligation thereafteraccruing as to the
acreage surrendered.
5.If at any time or times after the primary term or within three(3)months before expiration of the primary term,all operations and all production hereunder shall cease for
any cause,this lease shall not terminate if Lessee shall commence or resume drilling or reworking operations or the production of oil or gas within three(3)months after
such cessation.
6.Lessee shall pay for damages caused by Lessee's operations to growing crops,buildings,irrfgaiton ditches,feed lots and fences. When required by the surface owner,
Lessee will bury pipe lines below ordinary plow depth when crossing cultivated land. No well shall be drilled within two hundred(200)feet of any residence or barn now on
said land without the consent of the surface owner. Lessee shall have the right at any time to remove all Lessee's property and fixtures,including the right to draw and
remove all casing. Lessee shall drill any well which a reasonably prudent operator would drill under the same or similar circumstances to prevent substantial drainage from
said land by wells located on adjoining land not owned by Lessor,when such drainage Is not compensated by counter drainage. No default of Lessee hereunder with
respect to any well or portion of said land shall impair Lessee's rights with respect to any other well or portion of said land.
7.The rights of Lessor and Lessee hereunder may be assigned in whole or in part. 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 copies of all recorded instruments or documents and other information necessary to
establish a complete chain of record title from Lessor,and then only with respect to payments thereafter made. No other kind of notice,whether actual or constructive,
shall be binding on Lessee,and Lessee may continue to make payments precisely as if no change had occurred. No present or future division of Lessor's ownership as to
different portions or parcels of sand land shall operate to enlarge the obligations or diminish the rights of Lessee,and Lessee's operations may be conducted without regard
to any such division. If all or any part of the Lessee's interest hereunder shall be assigned,no leasehold owner shall be liable for any actor omission of any other leasehold
owner.
8.Whenever,as a result of any cause beyond Lessee's control(such as fire,flood,windstorm or other Act of God;law,order or regulation of any governmental agency;or
inability to secure men,material or transportation)Lessee is prevented from complying with any obligation of this lease,Lessee shall not be liable for damages or forfeiture
of this lease and Lessee's obligations shall be suspended so long as such cause persists. If by any such cause,all operations and all production hereunder are prevented
after the expiration of the primary term,Lessee may at any time or times and at Lessee's election pay Lessor as royalty(in addition to any royalties based on actual
production)a sum equal to One Dollar($1.00)per acre on the acreage then held by Lessee hereunder,whereupon it shall be considered for all purposes of this lease that oil
or gas is being produced hereunder for a period of three months from the date such payment is made.
9.Lessee may at any time or times unitize this lease and the lands covered hereby,in whole or in part,or as to any stratum or strata,with other lands and leases in the same
field,so as to constitute a unit or units,whenever,in Lessee's judgement,required to promote or encourage the conservation of natural resources by facilitating an orderly
or uniform well spacing pattern;a cycling, pressuremaintenance, re-pressuring or secondary recovery program;or any cooperative or unit plan of development or
operation approved by the Secretary of the interior of the United States. The size of any such unit may be increased by including acreage believed to be productive,and
decreased by excluding acreage believed to be unproductive,or the owners of which fall or refuse to join the unit,but any Increase or decrease in Lessor's royalties
resulting from any such change in any such unit,shall not be retroactive. Any such unit may be established,enlarged,or diminished,and,in the absence of production
therefrom,may be abolished and dissolved,by filing for record an instrument declaring,a copy of which shall be delivered to Lessor. Drilling or reworking operations upon
or production of oil or gas from any part of such unit shall be treated and considered,for all purposes of this lease,as such operations upon or such production from this
lease. L shall allocate to the portion of this lease included in any such unit a fractional part of all production from any pert of such unit,on one of the following bases:
(a)the ratio between the participating acreage in this lease included in such unit and the total of all participating acreage included in such unit;or(b)the ratio between the
quantity of recoverable production underlying the portion of this lease included in such unit and the total of all recoverable production underlying such unit;or(c)any other
basis approved by State or Federal authorities having jurisdiction thereof. Upon production from any part of such unit Lessor herein shall be entitled to the royalties In this
lease provided,on the fractional part of the unit production so allocated to that portion of this lease included in such unit;end no more.
10.Lessor warrants and agrees to defend the title to said land. The royalties herein above provided are determined with-respect to the entire mineral estate in oil and gas
and if Lessor owns a lesser interest,the royalties to be paid Lessor shall be reduced proportionately. Lessee at its option may purchase or discharge in whole or in part any
tax,mortgage or other lien upon said land,or may redeem the same from any purchaser at any tax sale or adjudlcatiotl,mod may reimburse itself from any royalties accruing
hereunder and shall be subrogated to such lien with the right to enforce same.
11.This lease shall be binding upon all who e,....ute It,whether or not they are named In the granting clause,.ereof and whether or not all parties named in the granting
clause execute this lease. All the provisions of this lease shall inure to the benefit of and be binding upon the heir.,executors,administrators,successors and assigns of
Lessor and Lessee.
' ' O 12 . Notwithstanding contrary provisions contained herein all landowners
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royalty shall be based upon twenty-one percent (21 %) .
NO +.
U 13 . Notwithstanding contrary provisions contained herein th0.4 ' ''''1;&
s'.-47,4'. .. .4:
Q hereby appoints the Greeley/Weld County Airport Authority to, ec�ive.`•-;-,
a lease bonus payments , royalty ,�..
o w p y y y payments and payments f., ny akin i
o g benefit the Lessor under the terms of this lease . �t 1' "'�' fy1;...:-', ,,.,,
o a ':
.0. ril IN WITNESS WHEREOF,this instrument is executed as of the date first above written. VV II... : <�'i�}`il�� 1. �rC'��rR
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a, aO LESSOR SIGN HERE !Y• .......:,r
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N Weld County, Colorado . a government
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aw., Soc.Sec.No.
— or Tax I.D.No. 84-6000813
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STATE OF
COUNTY OF ss. ACKNOWLEDGMENT FOR INDIVIDUAL
Before me,the undersigned,a Notary Public.within and for said county and stale, on this_ day of ,19 ,
personally appeared
and
to me personally known to be the identical person_who executed the within and foregoing instrument and acknowledged to me that
executed the same as free and voluntary act and deed for the uses and purposes therein set forth.
IN WITNESS WHEREOF,I have hereunto set my hand and official seal the day and year last above written.
My commission expires
Notary Public
Address
STATE OF _
COUNTY OF � ss. ACKNOWLEDGMENT FOR INDIVIDUAL
Before me.the undersigned,a Notary Public.within and for said county and state,on this day of 19_
personally appeared
and
to me personally known to be the identical person_who executed the within and foregoing instrument and acknowledged to me that
executed the same as tree and voluntary act and deed for the uses and purposes therein set forth.
IN WITNESS WHEREOF,I have hereunto set my hand and official seal the day and year last above written.
My commission expires
Notary Public
n T Address
STATE OF C/r�'e"La.._ t.���a
COUNTY OF cwt .�/X�C ( ss. ACKNOWLEDGMENT FOR CORPORATION
On this • .day of iv v � .. 1 O o ,before ,the undersigned,a Notary Public
in and for the county and state rlih j{ttl appeared e- -04-4.9--'
to me personally known to be j.fOfentiDii•p %DQ stoned the name of the maker t reof tot e within and lore ing instrument as Its
President and acknowledge ' .rte that �L —executed the same as free and voluntary act and deed,and as the
free and voluntary act and •_f s'aidlbr r iid ,fo uses and purposes therein set forth.
Given under my hand art sealthe VSY a d ray la above written. /� Q ..My commission expires
tiY�m11 np+' � ne lb, 1 Q1 t— `i� � `
vib[n 51 Q. : A, i j
, Notary Public
',„, )0 1 K Address
EXHIBIT "A"
o Attached to and by this reference made a part of that
oU certain oil and gas lease dated October 19 , 1984 by and between
Weld County, Colorado, a government body, as Lessors , and R A
en O Resources, Inc., as Lessee:
U
a• Notwithstanding anything to the contrary herein contained, or
ow
contained in said lease, the following additional provisions are
made a part of this lease:
0 w
A. The Lessee shall comply with all lawful regulations of
O the Colorado State Oil and Gas Conservation Commission, and in
• addition thereto shall
mw
1 ) Upon abandonment promptly remove any surface
equipment used in connection with abandoned well.
2 ) Upon abandonment, restore the surface, as near as
mu
practicable, to its original appearance, and
N z re-establishing vegetation, as near as practicable,
w to the same condition as existed just prior to the
drilling of the well.
B. To the maximum extent possible, no oil and gas produced
‘.o w shall be permitted to escape the confines of the well, the well
head, or transmission lines into the surrounding environment.
� zmz
0 C. At no time shall fluids of any kind or type be run into,
• stored, or collected in unlined earthen pits. During the period
a of drilling, completion, operation, repair, or maintenance of any
well , the operator shall provide watertight pits lined with an
001^ impervious material to contain drilling mud, water, or other
0 o types of liquid or solid waste. Solid and liquid waste shall be
regularly removed from the premises and disposed of in accordance
m w with law and shall not be permitted to spill outside of the
working area.
D. The premises shall be kept in a clean and sanitary
manner, relatively free from rubbish.
E. In the event of production, the wellhead and all
production equipment located thereon shall be enclosed on all
sides by a chain-link fence at least six (6) feet in height and,
in addition, have not less than three (3) strands of barbed wire
sloping outward at approximately a forty-five (45) degree angle
for eighteen (18) inches from the top of the fence. There shall
be no aperture below such fence greater than four ( 4 ) inches .
F. The operator and producer shall make a good faith effort
to control the escape of noxious fumes and in no event shall they
be allowed to become a nuisance to abutting properties .
G. The operator shall post a sign of sufficient size
warning of safety hazards to the public.
H. Subsequent to the commencement of drilling operations,
no operator shall sell, transfer, assign, or convey the drilling
site , equipment , or operations without notifying the
administrative official of such action. Any new operator shall
be bound by the provisions of this lease in the same manner to
the same extent that the original operator was required to
comply.
I. All aparatus located above ground shall be painted in
muted tones to conform with the surrounding area , unless
otherwise required by the FAA.
Page 2 of 2
J. After completion of any well under the terms of this
0 O lease, the maximum permissible sound pressure level at the north
o boundary of the leased premises shall not exceed 80 db(A) as
a defined by 25-12-101 ( 2 ) , ( 3 ) , CRS, 1973 .
o
q K. Lessee shall not conduct any operations on the leased
o w premises or within three hundred ( 300 ) feet of leased premises
o S without the express consent of Lessor.
o
"} Q L. This is deemed to be a fully paid up lease and no delay
a rental payments shall become due hereunder.
o
o a M. When necessary to flare gas, such shall be done into the
N reserve pit.
m
" a N. Lessee agrees that in the event it should sell , assign
a or dispose of all. its working interest in this lease, it shall
CO first advise the Lessor of the name, address, telephone number of
N z the manager of the assignee and that it will in connection with
0 w any such transaction require that such assignee supply the Lessor
,-IF with the evidence of adequate insurance .
rim
a
a 0. This lease also covers and includes, in addition to that
to w above described, all land, if any, contiguous or adjacent to or
� F" adjoining the land described in this lease and (A) owned or
co z claimed by Lessors by limitation, prescription, possession,
ri < reversion, or unrecorded instrument of (B) as to which Lessors
o y, have a preference right of acquisition. Lessors agree to execute
u a any supplemental instrument requested by Lessee for a more
a complete or accurate description of said land.
co Lo
',to, P. In the event it is discovered that Lessor owns less than
0 o the entirefee simple estate described herein said Lessor shall
w w not be obligated to refund any part of the bonus money paid as
consideration for this lease.
Q. It is understood by the parties hereto that the leased
premises is located on or near the Greeley/Weld County Airport.
Lessee agrees to comply with all applicable local , county, state
and federal regulations. These include but are not limited to
height limitations upon equipment and colors required for
operation fixtures such as tank batteries. The parties agree
that aL1 Hof the City of Greeley ordinances relating to oil and
gas ,.dfl s,h llin all be applicable to the leased premises .
S _ foe'afication
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A9 "it A`„/4 LI LESSOR:L-21/� 1 By; .s-.. ._ . Chairman
f� Weld County, Colorado, a
government body
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iTTF�t�`4 : C''• psi LESSEE:
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^`,;'�`- R Resources , Inc.
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PRODUCER'S Be-FMcB e OIL AND GAS LEASE
R . Up Red.1914 PAID UP
J't18 AG,pig ENT,m de d entered Into as f 24th trey of
Dc btr ,19514.-,by ad between
The �1�y of �reeley , �olorado , A Home TiiIe Municipal Corporation . �d�plitic
y r
Greeley/Weld County Municipal Airport Authority. A Body Lsir-p.QPa �0—S.0h3it
McJd Count
_Colorado, A Government Body , P _0 Box 727. y ,hereinafter called"Lessor(whether one or mere nd R A P p q nn r e p c T tic " , P .0 _ B8x-24 l-5T _-
hereinafter called" WITNESSETN:
Greeley , Colorado B0o 2 __ "DOLLARS($-DOLLARS +.--),
1.LIM0S,and paid,for and royalties i of the sum of n provided,and of tTen he agreements red mOr e
lin ad hereinahr described,forth(purpose of Instigating,exploring nd drilling for,iproducing, ac ing,tsk taking,owning,transporting,storing,handling and treating oil
and gas,together with all rights,privileges and easements useful for 's operations hereunder on said lend and on lands In the same field,Including but not d power stations,ls,and other*trueloves
imited to the
fsllities.iThe phrase poll and ts:to ley "e lines;aasu e sd in thi less,shall embrace all hydrocarbons,aswell as other•bstance.power tlproduced herewith.communications eThe said and Included
In this lease is situated in the County of WPICI
State of_Gn1ar a d n ,and Is described as follows,to-wit:
Township 5 North, Range 65 West , 6th P .M .
Section 3: NE±SEk , W6NE± , SEtNEt , WNE*NEk
See Exhibit "A"I attached hereto and by this reference made a part hereof .
e ll lands d or claimed by
Including all oil and gas underlying lakes,streams,roads,essemen�8 d rights-Of-way which traverse or adjoin sold
land;
of lend,more orahereby ownnee no and waiving
Lessor as a part ofand any tract above described;and eoptd ioninp _ cover
all r vested In Lessor.
For t the purpose of calculating any payments based on acreage,Lesseen laws of thls ,at Lessee's ls option,may act l as 11 said land and its constituent parr els contain ethe acreage above
stated,whether they actually contain more or less. Lessee may Inject water,gas or other substances Into any tone or stratum underlying said land and not productive of
fresh water. 0 rte ��� _ years from the date hereof,2.Subject to the other provisions herein contained,this lease shall remain In force for a period of
celled"primary term",and thereafter so long es oil or gas Is produced from said land hereunder,or Lessee Is engaged in drilling or reworking operations on said land
hereunder.
3.novelties to be paid L are:(a)on 0'1,1,364444g of that produced and saved from said land,to be delivered at the wells or to the credit of Lessor Into the pipe alty oll,payingunotw,leh the wells
y may
tanks;(b)on gas,Including csinghead gas or other,gase env seous substance'D produced from said land and sold or herefor the market valise in the field used,the marker value at the
ere produced on the day i
is well of ntflgh Pistol the gas so sold or used,provided that on gas sold al the well the royalty shall be dadKdeJOKOODOf the amount realized from such sales,(r)on other
substances produced with oil or gas,and covered by this lease,oo tk(geppf their value at the well. Where gas from a well capable of producing gas Is not sold or used.
Lessee may pay or tender as royalty the sum of One Dotter($1.00)per acre per year on the acreage then held by Lessee hereunder,such payment or tender to be made nn
or before the anniversary date of this lease next ensuing after the expiration of ninety days(90)after the date ouch wen Is shut in and thereafter on or before the anniversary
date of this tease during the period such well is shut in. If such payment is made,It will be considered that gas is being produced within the meaning of this lease
may use,free of royalty,oil,gas,and water developed from said land by Lessee for all operations hereunder.
4.This is a PAID-UP LEASE. In consideration of the down cash payment,Lessr agrees that Lessee shall not be obligated,a rcept as otherwise provided herein,to
commence or continue any operations during the primary term. L may al any time or times during or after the primary term surrender this lease as to all or any portion
of said lend and as to any strata or stratum by delivering to Lessor or by filing for record a release or ref .end be relieved of alt obligation thereafter accruing as to the
acreage surrendered.
5.If at any time or times after the primary term or within three(3)months before expiration of the primary term,all operations and all production hereunder shall cease for
any cause,this lease shall not terminate if L shall commence or resume drilling or reworking operations or the production of oil or gas within three(3)months after
such cessation.
B.Lessee shall pay for damages sued by Lessee's operations to growing crops,buildings.Irrigation ditches,feed lots and fences. When required by the surface owner,
L lit bury pipe lines below ordinary plow depth when crossing cultivated lend. No well shall be drilled within two hundred(200)feel of any residence en rightba drew nn
arn now on
said land without the consent of the surface owner. shall have the right at any time to remove ail 'a property and fixtures, g
remove all casing. shall drill any well which a reasonably prudent operator would drill under the same or similar circumstances to prevent substantial drainage from
said lend by wells located on adjoining lend not owned by Lessor,when such drainage is not compensated by counter drainage. No default of Lessee hereunder with
respect to any well or portion of said land shall impair Lessee's rights with respect to any other well or portion of said land.
7.The rights of Lessor and L hereunder may be assigned In whole or In par. No change In ownership of Lessor's interest(by assignment or otherwise)shall be
binding on until L has been furnished with notice,consisting of certified copies of all recorded Instruments or documents end other information necessary to
establish a complete chain of record title from Lessor,and then only with respect to payments thereafter made. No other kind of notice,whether actual or constructive,
shall be binding on Lessee,and may continue to make payments precisely as If no change had occurred. No present or future division of Lessor's ownership as to
different portions or parcels of solid lend shall operate to enlarge the obligations or diminish the rights of Lessee,and Lessee's operations may be conducted without regard
to any such division. If all or any part of the 's Interest hereunder shall be assigned,no leasehold owner shall be liable for any actor omission of any other leasehold
owner.
B.Whenever,as a remit of any cause beyond Lessee's control(such as fire,flood,windstorm or other Act of Clod;law,order or regulation of any governmental agency;or
inability to nouns men,material or transportation)Lessee Is prevented from complying with any obligation of this lease,Lessee shall not be liable for damages or forfeiture
of this lease and Lessee's obligations shell be suspended so long as such cause persists. If by any such cause,all operations and all production hereunder are prevented
after the expiration of the primary term,Lessee may al any time or times end at Lessee's election pay Lessor as royalty(in addition to any royalties based on actual
production)a sum equal to One Dover($1.00)per acre on the acreage then held by Lessee hereunder,whereupon It shall be considered for all purposes of this tease that oil
or gas is being produced hereunder for a period of three months from the date such payment is made,
9.Lessee may at any time or times unitize this lea and the lands covered hereby,in whole or In part,or as to any stratum or strata,with other lands and leases In the mime
field,an as to constitute a unit or units,whenever,In Lessee's judgement,required to promote or encourage the conservation of natural resources by facilitating an orderly
or uniform well spacing pattern;a cycling,preesuremeIntennce,re-pressuring or secondary recovery program;or any cooperative or unit plan of development or
operation approved by the Secretary of the interior of the United States. The size of any such unit may he Increased by including acreage believed to be productive,and
resu
lting ting from any sding acreage uch change In•nyved to Do a the unit,shall dnottbe retroactive. Any such which
unit may be refuse
established,nlarged,or diminishedhe unit,but any ,and,I or �the absence orease In f production
royalties
therefrom,may be abolished and dissolved,by filing for record an Instrument declaring,a copy of which shall be delivered to Lessor. D,Wing or few,king operations upon
or production of oil or gas from any part of such unit shall be treated and considered,for all purposes of this lease,as such operaione upon or each production from fhb
lease. Lessee shall allocate to the portion of this lease Included in any such unit a fractional part of all production from any part of such unit,on an of the following bases:
(a)the ratio between the participating acreage In this lase Included In such unit and the total of all participating acreage Included In such unit;or(b)the ratio between the
quantity of recoverable production underlying the portion of this lease Included In such unit and the toll of all recoverable production underlying such unit;or(c)any other
basis approved by State or Federal authorities having jurisdiction thereof. Upon production from any part of such unit Lessor hers In shall be entitled to the royalties In this
lease provided,on the fractional part of the unit production so allocated to that portion of iris lease Included to such unit,and no more.
10.Lessor warrants and agrees to defend the title to said land. The royalties herein above provided are determined with respect to the ennro mineral estate in oil end any
gas
and if Lessor owns•I Interest,the uced y. et Its on may purchase Of discharge In tax,mortgage or other lien upon said land,orlmay redeem ies to be )the same tram and Lessor shell be y purch purchaser at any tax last or djudlGOon'and may reimburse self from any royalties accruingole or in
hereunder end shall be subrogated to such lien with the right to enforce same.
Thin Nose shall be binding upon all who execute it,w r or not they are named In the grenllt.,: 'muse hereof sn ther or not all p+- •named In the grer•i:+g
clause execute this lease. All the provisions of this Woo shat inure to the benefit of and be binding upon the holes,exec,..,.rs,administrators,successors and assigns of
Lessor and Lessee.
12 . Notwithstanding contrary provisions contained herein all landowners
royalty shall be based upon twenty-one percent (;.: t%) .
13 . Notwithstanding contrary provisions contained herein the Lessor herby
appoints the Greeley/Weld County Airport Authority to receive all
lease bonus payments , royalty payments and payments of any kind which may ,
benefit the Lessor under the terms of this lease. • ;
IN WITNESS WHEREOF,this Instrument Is executed as of the date first above written.
LESSOR SIGN MERE
City of f,rye1 t=y,—.G�li..p.o, A _ l
Rule Municipl L Corporation Body dot-I.41.- -
. By:
„7/ - ) ;7 4,fi
Greeley/Weld County Municipal Airport
Authority , A Body Corporate & Politic
Ay:
e
Soc.Sec.No.
or Tax 1.0.No. ��-
STATE OF is. ACKNOWLEDGMENT FOR INDIVIDUAL
COUNTY OF_
• 18_ ,
Before me,the undersigned,a Notary Public.within and for said county and state,on this day of
— _
personally appeared --
and
10 me personally known to be the Identical person—who executed the within and foregoing instrument end acknowledged to me that
executed the same as . _ .._tree and voluntary act and deed for the uses and purposes therein set forth.
IN WITNESS WHEREOF,I have hereunto set my hand and official seal the day and year last above written.
My commission expires • Notary Public
Address
STATF OF __. +.as. ACKNOWLEDGMENT FOR INDIVIDUAL
COUI fY od —E
i! of_ ,t9 ,
Batn.s in.,the undersigned,a Notary Public.within and for said county and stele, on this et1
perfnr.dy
and_.
to me personally known to be the identical person_who executed the within end fr'r'•noing Instrument and acknowledged to me that
executed the same as free and voluntary act and deed 1nr the use* r-.rrpoeee therein set forth.
IN WITNESS WHEREOF,I have hereunto set my hand and official seal the day a: oar •.'above written.
My commission expires Notary Public
Address
STATE OF ss. ACKNOWLEDGMENT FOR CORPORATION
COUNTY OF
On this day of_ ,A.D.,18 ,before me,the undersigned,a Notary Public
In and for the county and x.its aforesaid,personally appeared — - — -
to me personally kna'-n :o he the identical person who signed the name of the maker thereof to Me wIthln sod foregoing instrument a• ils
President and+, • aged to nee that executed the same as _fee, end voluntar .:rd deed,and as the
free and voluntn,, .I and deed of said corporation,for the uses and purposes therein set forth. •
Given under my hand and seal the day and year laal above written. ..
My -emmteslon expires Notary Public
erase
EXHIBIT "A"
Attached to and by this reference made a part of that
certain oil and gas lease dated October 24 , 1984 by and between
Weld County, Colorado, A Government Body, The City of Greeley,
Colorado, A Home Rule Municipal Corporation, and Greeley/Weld
County Municipal Airport Authority, A Body Corporate and Politic
as Lessors, and R A Resources, Inc., as Lessee:
Notwithstanding anything to the contrary herein contained , or
contained in said lease, the following additional provisions are
made a part of this lease:
A. The Lessee shall comply with all lawful regulations of
the Colorado State Oil and Gas Conservation Commission, and in
addition thereto shall
1 ) Upon abandonment promptly remove any surface
equipment used in connection with abandoned well.
2 ) Upon abandonment, restore the surface, as near as
practicable, to its original appearance , and
re-establishing vegetation, as near as practicable,
to the same condition as existed just prior to the
drilling of the well.
B. To the maximum extent possible, no oil and gas produced
shall be permitted to escape the confines of the well, the well
head, or transmission lines into the surrounding environment.
C. At no time shall fluids of any kind or type he run into,
stored, or collected in unlined earthen pits. During the period
of drilling, completion, operation, repair, or maintenance of any
well , the operator shall provide watertight pits lined with an
impervious material to contain drilling mud, water, or other
types of liquid or solid waste. Solid and liquid waste shall be
regularly removed from the premises and disposed of in accordance
with law and shall not be permitted to spill outside of the
working area.
D. The premises shall be kept in a clean and sanitary
manner, relatively free from rubbish.
E. In the event of production, the wellhead and all
production equipment located thereon shall be enclosed on all
sides by a chain-link fence at least six (6) feet in height and,
in addition, have not less than three (3) strands of barbed wire
sloping outward at approximately a forty-five (45) degree angle
for eighteen (18) inches from the top of the fence. There shall
be no aperture below such fence greater than four (4 ) inches .
F. The operator and producer shall make a good faith effort
to control the escape of noxious fumes and in no event shall they
be allowed to become a nuisance to abutting properties.
G. The operator shall post a sign of sufficient size
warning of safety hazards to the public.
H. Subsequent to the commencement of drilling operations,
no operator shall sell, transfer, assign, or convey the drilling
site , equipment, or operations without notifying the
administrative official of such action. Any new operator shall
be bound by the provisions of this lease in the same manner to
the same extent that the original operator was required to
comply.
I. All aparatus located above ground shall be painted in
muted tones to conform with the surrounding area , unless
otherwise required by the FAA.
Page 2 of 5
J. After completion of any well under the terms of this
lease, the maximum permissible sound pressure level at the north
boundary of the leased premises shall not exceed 80 db(A) as
defined by 25-12-101 (2 ) , ( 3 ) , CRS , 1973.
K. Lessee shall not conduct any operations on the leased
premises or within three hundred ( 300 ) feet of leased premises
without the express consent of Lessor.
L. This is deemed to be a fully paid up lease and no delay
rental payments shall become due hereunder.
M. When necessary to flare gas, such shall be done into the
reserve pit.
N. Lessee agrees that in the event it should sell , assign
or dispose of all its working interest in this lease, it shall
first advise the Lessor of the name, address, telephone number of
the manager of the assignee and that it will in connection with
any such transaction require that such assignee supply the Lessor
with the evidence of adequate insurance.
0. This lease also covers and includes, in addition to that
above described, all land, if any, contiguous or adjacent to or
adjoining the land described in this lease and (A) owned or
claimed by Lessors by limitation, prescription, possession,
reversion, or unrecorded instrument of (B) as to which Lessors
have a preference right of acquisition. Lessors agree to execute
any supplemental instrument requested by Lessee for a more
complete or accurate description of said land.
P. In the event it is discovered that Lessor owns less than
the entirefee simple estate described herein said Lessor shall
not be obligated to refund any part of the bonus money paid as
consideration for this lease.
Q. It is understood by the parties hereto that the leased
premises is located on or near the Greeley/Weld County Airport.
Lessee agrees to comply with all applicable local, county, state
and federal regulations. These include but are not limited to
height limitations upon equipment and colors required for
operation fixtures such as tank batteries. The parties agree
that all of the City of Greeley ordinances relating to oil and
gas drilling shall be applicable to the leased premises.
I. General Commitments
Without the prior written consent of Lessor, Lessee shall
not:
(a) Conduct any operation or erect any structure or
place any equipment including pumping equipment and storage
facilities which will interfere with the operation of airport
operations.
(b) Conduct any operations including laying pipelines
unless serving well situate on the acreage leased hereunder.
(c) Locate any structure or equipment on the premises
other than those normally utilized in the exploration and
production of oil, gas, or other hydrocarbons. Specifically, no
mining shall occur, no employee houses may be located
permanently, and no refinery operations may be conducted. It is
specifically agreed that Lessor makes no warranty of title and
Lessor shall have no obligation to defend any title to the
described premises.
Page 3 of 5
(d) Notwithstanding contrary provisions contained in the
oil and gas lease, all Landowners Royalty shall be based upon
21%.
(e) Notwithstanding anything to the contrary herein
contained, drilling operations on or production from a pooled
unit or units established under the rules and regulations of the
Colorado Oil and Gas Conservation Commission shall maintain this
lease in force pursuant to paragraph two ( 2) above, only as to
lands included in such unit or units. As to the remainder of
land described in this oil and gas lease which are not included
in the above mentioned unit or units, this lease shall terminate
two ( 2 ) years after the expiration of the primary term of this
lease.
II. Surface Use
Lessee agrees and promises:
(a) To restore the surface of the land to as near the
original condition as reasonably possible. Included within this
obligation, Lessee shall restore the surface of any abandon well
sites and any roads to a level condition.
(b) To pay for any and all damages caused by its
operations on said land, including any and all damages to persons
and any and all damages to property including tangible and
intangible real and personal property. Lessee shall hold Lessor
harmless from and against any and all damages to persons or
property that are caused by Lessee' s operation on said land.
(c) To fence all producing wells with a protective fence
at least four feet high and to keep the gate to the enclosed area
locked.
(d) Prior to entering upon the leased premises for
drilling purposes, Lessee shall notify Lessor, or Lessor's agent,
of Lessee's intention to drill or to conduct other operations ,
and in the event of a drilling operation, to advise Lessor of the
proposed drill site and the proposed route to be used to the
drill site location, however, no operations shall be conducted
until and unless Lessee obtains Lessor's consent for such site
and route. Lessee shall also obtain the consent of Lessor as to
the location of pipelines and tank batteries .
(e) Prior to actual commencement of drilling operations
for each well on the leased premises, Lessee shall pay to Lessor
the sum of $2,500.00 as minimum payment for damages for drilling
and completing of the specific well. Additional surface damages
with respect to crop damage and damage on land removed from
agricultural production as well as damage to airport facilities
will be negotiated upon completion of drilling operations.
After the well is completed, Lessor and Lessee shall agree upon
the amount of additional damages, if any, other than those stated
above.
It is specifically understood that the amount stated herein shall
not cover any damage"from operations after completion of a well.
(f ) It is understood by the parties hereto that the
subject lands are located on or near the Greeley/Weld County
Airport. Lessee agrees to comply with all applicable local ,
county, state and federal regulations.
Page 4 of 5
(g) This lease also covers and includes, in addition to
that above described, all land, if any, contiguous or adjacent to
or adjoining the land described in this lease and (1 ) owned or
claimed by Lessors by limitation, prescription, possession,
reversion, or unrecorded instrument or (2) as to which Lessors
have a preference right of acquisition. Lessors agree to execute
any supplemental instrument requested by Lessee for a more
complete or accurate description of said land.
III. Limitation on Shut-in Gas Clause
(a) The shut-in gas clause of the Lease shall not extend
the term of the Lease for more than two years beyond the primary
term. This paragraph is independent of any other paragraph
hereof and no payment under the minimum royalty clause nor
provisions hereof regarding holding lease by production for
producing sands or space drilling units shall obviate the
provisions hereof.
(b) If Lessee shall discover gas or oil hereunder on
said land or on land unitized with said land, Lessee shall, after
the primary term of this lease, pay Lessor as shut-in royalty the
sum of One Thousand Five Hundred ( $1, 500 ) dollars per well per
year after production of gas or oil or both has been shut-in for
a cumulative period of 180 days during any year, commencing from
the anniversary date of this lease, in which such well is being
produced, whereupon it shall be considered for all purposes of
this lease that gas , oil , or both are being produced hereunder
from said land for a period of one year, such year to commence
upon the payment of the above described shut-in royalty payment.
However, in no event will the payment of a shut-in royalty extend
the term of the lease more than two ( 2 ) consecutive years from
the date of completion of the well , and in the event gas or oil
is not sold therefrom at the expiration of said two ( 2 ) years,
the Lease shall be conclusively deemed to be canceled and
terminated.
IV. Pooling for Gas
After the Colorado Oil and Gas Conservation Commission
has executed a spacing order of any of the premises leased
hereunder for gas production, Lessee may pool a portion or all of
the leased premises with other lands in the spaced area. Such
pooling shall be limited to the sand or formation affected by the
Colorado Oil and Gas Conservation Commission.
V. Information shall be available to Lessor
Lessor shall have access to the drilling well location at
all times and to all records pertaining thereto. Lessor shall
have rights to obtain any and all information pertaining to the
wells including the right to inspect and make copies of any
records relating to the drilling, completion, deepening, plugging
or recompleting of any wells.
VI. Addendum shall Control
The provisions of the Addendum shall supersede the
printed lease form and typed portions thereon and shall control
in the event of conflict therewith.
VII. Tank Batteries
Lessee agrees to locate tank batteries in central
locations with the specific approval of Lessor, however, these
locations are subject to the business judgment of the Lessee of
maintaining maximum production, taking into account distance of
flow lines and potential freeze-up problems due to weather
conditions . Low profile tanks shall be used at all batteries .
Page 5 of S
Signed for identification purposes:
ATTEST: LESSORS:
Greeley/Weld County Municipal
Airport Authority
The City Of Greeley, Colorado
A Home Rule Municipal
' . - 1 r^ ,i . Airport Authority
.- t-41, t ^^ :.fin!
;;�� ap°f%' -' ' ` - —,Chairman
1r� ?.i' /� i By:
�' Weld County, Colorado,
A Government Body
ATTEST: LESSEE:
R A Resources, Inc.
PRODUCER'S a-FMCS
Paid Up OIL AND GAS LEASE
Rev.1914
PAID UP
IS AGREEMENT,m ente made and red into es of the 16th day of _. October ,fit 8/py and between
The City of Greeley, a home rule municipal nnrpnratinn, organized and
incorporated under the laws of Colorado --
219 - 7th Street., Greeley, Co;oado--80631
hereinater called"Lessor"(whether one or more)and _ R A N e o_411 r c e s, Inc. - ,_ (l Prix 2475,
Greeley, Colorado 80632 ._,Minimalist caned"Leeaee",WITNESSETN:
1.Lessor,for rind in consideration of the sum of Ten and more - DOLLARS($ 10_00+ ).
in hand paid,of the royalties herein provided,and of the agreements of Lessee herein contained,hereby grants,demises,leases and lets exclusively unto Lessee the
land hereinafter described,for the purpose of Investigating,exploring and drilling for,producing,saving.taking,owning,transporting,storing,handling and treating oil
and gas,together with all rights,privileges and easements useful for Lessee's operations hereunder on said land and on lands In the same field,including but not
limited to the following rights:to lay pipe lines;to build roads;and 10 construct tanks,pump and power stations,power and communications lines,and other structures
and facilities. The phrase"oil and gas",as used in this lease,shall embrace all hydrocarbons,as well as other substances produced therewith. The said lend included
in this lease Is situated in the County of Weld ,State of _C.nlar a ri n ,and is described as follows,to-wit:
Township 5 North, Range 65 West, 6th P .M .
Section 3: NEkSE± , WrNE4 , SE±NEj , WzNE±NE4
See Exhibit IIAI" attached hereto and by this reference made a part hereof.
KEITH E. ABBOTT
A , VICE PRESIDENT
I CHIEF EXECUTIVE OF
OFFICER
R A RESOURCES, INC.
UNITED PLAZA
1100 10TH STREET SUITE 202
GREELEY, COLORADO 80632
P.O. BOX 2475 PH. 303 353-6066
—near rani •—Ilifa underlying lakes,streams,roads,easements and rights-of-way which traverse or adjoin said land;and including all lands owned or claimed by
Lessor es a part of any tract above described;and containing 18n.01) _ acres of land,more or less,hereby releasing and waiving
all rights under end by virtue of the homestead exemption laws of this state. This lease shall cover all the intend,in said land now owned by or hereafter vested in Lessor.
For the purpose of calculating any payments based on acreage,Lessee,at Lessee's option,may act as if said land and its constituent parcels contain the acreage above
stated.whether they actually contain more or less. Lessee may inject water,gas or other substances Into any zone or stratum underlying said land and not productive of
fresh water. / .,
2.Subject to the other provisions herein contained,this lease shall remain in force for a period of_ One _�_r_ years from the date hereof,
called"primary term",and thereafter so long as oil or gas is produced from said land hereunder,or Lessee is engaged in drilling or reworking operations on said land
hereunder.
21 %
3.Royalties to be paid lessee are:(a)on oil?xeZrii i IlPC)of that produced and saved from said land,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 env royally oil,paying therefor the market value in the field where produced on the day it
is run to the pipe line or storage tanks;(b)on gas,including casinghead gas or other gaseous substance,produced from said land and sold or used,the market value at the
well of Q-70dhlby9.)of the gas so sold or used,provided that on gas sold at the well the royally shall be YdLMdS0i .jCo1 the amount realized from such ales;(e)on other
produced wine oil or gas,end covered by this lees,pitta-$gL1p[]Q'r�of their value at the well. Where gas from a well capable of producing gas is not sold or used,
Lessee may pay or tender as royalty the sum of One Dollar($1.00)per acre per year on the acreage then held by Lessee hereunder,such payment or tender to be made on
or before the anniversary date of this hese next ensuing after the expiration of ninety days(90)after the date such well is shut in and thereafter on or before the anniversary
date of this lease during the period such well is shut in. If such payment is made,it will be considered that gas is being produced within the meaning of this lease. Lessee
may use,free of royalty,oil,gas,and water developed from said land by Lessee for all operations hereunder.
4.This Is a PAID-UP LEASE. In consideration of the down cash payment,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 times during or alter the primary term surrender this lease as to all or any portion
of aid land and as to any strata or stratum by delivering to Lessor or by filing for record a release or releases,and be relieved of all obligation thereafter accruing as to the
acreage surrendered.
5.1f at any time or times after the primary term or within three(3)months before expiration of the primary term,all operations and ell production hereunder shall cease for
any cause,this lease shall not terminate If Lessee shall commence or resume drilling or reworking operations or the production of oil or gas within three(3)months after
such cessation.
0.Lessee shah pay for damages caused by Lessee's operations to growing crops,buildings,irrigation ditches,feed lots and fences. When required by the surface owner,
Lessee will bury pipe lines below ordinary plow depth when crossing cultivated land. No well shall be drilled within two hundred(200)feet of any residence or barn now on
said land without the consent of the surface owner. Lessee shall have the right at any time to remove all Lessee's property and fixtures,including the right to draw and
remove all casing. Lessee shall drill any well which a reasonably prudent operator would drill under the same or similar circumstances to prevent substantlei drainage from
said land by wells located on adjoining land not owned by Lessor,when such drainage is not compensated by counter drainage. No default of Lessee hereunder with
respect to any well or portion of said land shall impair Lessee's rights with respect to any other well or portion of said land.
7.The rights of Lessor and Lessee hereunder may be assigned in whole or in part. 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 copies of all recorded Instruments or documents and other Information necessary to
establish a complete chain of record title from Lessor,and then only with respect to payments thereafter made. No other kind of notice,whether actual or constructive.
shall be binding on ,and Lessee may continue to make payments precisely as If no change had occurred. No present or future division of Lessor's ownership as to
different portions or parcels of salad land shall operate to enlarge the obligations or diminish the rights of Lessee,and Lessee's operations may be conducted without regard
to any such division. If all or any pert of the 's interest hereunder shah be assigned,no leasehold owner shall be liable for any actor omission of any other leasehold
owner.
B.Whenever,ma result of any cause beyond Lessee's control(such as fire,flood.windstorm or other Act of God;law,order or regulation of any governmental agency;Or
inability to secure men,material or transportation)Lessee is prevented from complying with any obligation of this lease,Lessee shall not be liable for damages or forfeiture
of this lase and Lessee's obligations shall be suspended so long as such cause persists. If by any such cause,all operations end all production hereunder are prevented
after the expiration of the primary term,Lessee may at any time or times and at Lessee's election pay Lessor as royalty(In addition to any royalties based on actual
production)a sum equal to One Dollar($1.00)per acre on the acreage then held by Lessee hereunder,whereupon it shall be considered for all purposes of this lease that oil
or gas is being produced hereunder for a period of three months from the date such payment is made.
9.Lessee may at any time or times unitize this lease and the lands covered hereby,in whole or in pert,or as to any stratum or strata,14th other lands and leases in the same
field,so as to constitute a unit or units,whenever,in Lessee's judgement,required to promote or encourage the conservation of natural resources by facilitating an orderly
or uniform well spacing pattern;a cycling,pressuremaintenance,re-pressuring or secondary recovery program;or any cooperative or unit plan of development or
operation approved by the Secretary of the intoner of the United States. The size of any such unit may be increased by including acreage believed to be productive,and
decreased by excluding acreage believed to be unproductive,or the owners of which fall or refuse to join the unit,but any Increase or decrease In Lessor's royalties
resulting from any such change In any such unit,shall not be retractive. My such unit may be established,enlarged,or diminished,and,in the ammo*of production
therefrom,may be abolished and dissolved,by filing for record an instrument declaring,a copy of which shall be delivered to Lessor. Drilling or reworking operations upon
or production of oil or gas from any part of such unit shall be treated and considered,for all purposes of this leese,as such operations upon or such production from this
lease. Lessee shall allocate to the portion of this lease included in any such unit a fractional pan of all production from any pail of such unit,on one of the following bases:
(a)the ratio between the participating acreage in this lease included in such unit and the total of all participating acreage included In such unit;or(b)the ratio between the
quantity of recoverabte production underlying the portion of this lease included in such unit and the total Wall recoverable production underlying such unit;or(c)any other
basis approved by State or Federal authorities having jurisdiction thereof. Upon production front any part of such unit Lessor herein shall be entitled to the royalties in this
lease provided,on the fractional part of the unit production so allocated to that portion of this lease Included in such unit,end no more.
10.Lessor warrants and agrees to defend the title to said lend. The royalties herein above provided are determined with respect to the entire mineral estate in oil and gas
and if Lessor owns a lesser interest,the royalties to be paid Lessor shall be reduced proportionately. Lessee at its option may purchase or discharge in whole or in pan any
tax,mortgage or other lien upon said land,or may redeem the same from any purchaser st any tax sale or adjudication,and may reimburse itself from any royalties accruing
hereunder and shell be subrogated to such lien with the right to enforce same.
11.This lease shag be binding upon all who execute It,whether or not they are named In the granting clause hereof and whether or not all parties named In the granting
clause execute this New. All the provisions of this lease shall Inure to the benefit of and be binding upon the heirs,executors,administrators,successors and assigns of
Lessor and Lessee.
12 . Notwithstanding contrary provisions contained in this oil and gas lease
all Landownerts Royalty shall be based upon twenty-one percent (21 %) .
IN WITNESS WHEREOF,hue Inetniment is executed as of the date first above written.
LESSOR SIGN HERE
_. The City of Greeley. Colovndn, n Hnmp
Rule Municipal Corporation
By:
Mike Lehan - Mayor
1
Soc.Sec.No.
or Tax I.D.No.
STATE OF
COUNTY OF is. ACKNOWLEDGMENT FOR INDIVIDUAL
Before me,the undersigned,a Notary Public,within and for said county and state.on this day of ,19_,
personally appeared
and
to me personally known to be the identical person........who executed the within and foregoing instrument and acknowledged to me that
executed the same as free and voluntary act and deed for the uses and purposes therein set forth.
IN WITNESS WHEREOF,I have hereunto set my hand and official seal the day and year lest above written.
My commission expires
Notary Public
Address
STATE OF
COUNTY OF ss. ACKNOWLEDGMENT FOR INDIVIDUAL
Before me,the undersigned,a Notary Public.within and for said county end state, on this day of ,19.,
personally appeared
and
to me personally known to be the Identical person_who executed the within and foregoing instrument and acknowledged to me that
executed the same as free and voluntary act and deed fur the uses and purposes therein eel forth.
IN WITNESS WHEREOF,I here hereunto set my hand and official seal the day and year Iasi above written.
My commission expires
Notary Public
Address
STATE OF
COUNTY OF ss. ACKNOWLEDGMENT FOR CORPORATION
On this day of ,A.D.,19_,before me,the undersigned,a Notary Public
in and for the county and stale aforesaid,personally appeared
fb me personally known to be the Identical person who signed the name of the maker thereof to the within and foregoing instrument as Its
President and acknowledged to me that executed the same as free and voluntary act and deed,and as the
trim and voluntary act and deed of said corporation,for the uses and purposes therein set forth.
Given under my hand and seal the day and year last above written.
My commission expires
Notary Public
Addrees
EXHIBIT "A"
Attached to and by this reference made a part of that
certain oil and gas lease dated October 16, 1984 by and between
The City of Greeley, Colorado, a home rule municipal corporation,
organized and incorporated under the laws of Colorado as Lessors,
and R A Resources, Inc., as Lessee:
Notwithstanding anything to the contrary herein contained, or
contained in said lease, the following additional provisions are
made a part of this lease:
A. The Lessee shall comply with all lawful regulations of
the Colorado State Oil and Gas Conservation Commission, and in
addition thereto shall
1 ) Upon abandonment promptly remove any surface
equipment used in connection with abandoned well.
2) Upon abandonment, restore the surface, as near as
practicable, to its original appearance, and
re-establishing vegetation, as near as practicable,
to the same condition as existed just prior to the
drilling of the well.
B. To the maximum extent possible, no oil and gas produced
shall be permitted to escape the confines of the well, the well
head, or transmission lines into the surrounding environment.
C. At no time shall fluids of any kind or type be run into,
stored, or collected in unlined earthen pits. During the period
of drilling, completion, operation, repair, or maintenance of any
well , the operator shall provide watertight pits lined with an
impervious material to contain drilling mud, water, or other
types of liquid or solid waste. Solid and liquid waste shall be
regularly removed from the premises and disposed of in accordance
with law and shall not be permitted to spill outside of the
working area.
D. The premises shall be kept in a clean and sanitary
manner, relatively free from rubbish.
E. In the event of production, the wellhead and all
production equipment located thereon shall be enclosed on all
sides by a chain-link fence at least six (6) feet in height and,
in addition, have not less than three (3) strands of barbed wire
sloping outward at approximately a forty-five (45) degree angle
for eighteen (18) inches from the top of the fence. There shall
be no aperture below such fence greater than four ( 4) inches.
F. The operator and producer shall make a good faith effort
to control the escape of noxious fumes and in no event shall they
be allowed to become a nuisance to abutting properties.
G. The operator shall post a sign of sufficient size
warning of safety hazards to the public.
H. Subsequent to the commencement of drilling operations,
no operator shall sell, transfer, assign, or convey the drilling
site , equipment , or operations without notifying the
administrative official of such action. Any new operator shall
be bound by the provisions of this lease in the same manner to
the same extent that the original operator was required to
comply.
I. All apparatus located above ground shall be painted in
muted tones to conform with the surrounding area , unless
otherwise required by the FAA.
Page 2 of 2
J. After completion of any well under the terms of this
lease, the maximum permissible sound pressure level at the north
boundary of the leased premises shall not exceed 80 db(A) as
defined by 25-12-101 (2 ) , ( 3 ) , CRS , 1973 .
K. Lessee shall not conduct any operations on the leased
premises or within three hundred ( 300 ) feet of leased premises
without the express consent of Lessor.
L. This is deemed to be a fully paid up lease and no delay
rental payments shall become due hereunder.
M. When necessary to flare gas , such shall be done into the
reserve pit.
N. Lessee agrees that in the event it should sell , assign
or dispose of all its working interest in this lease, it shall
first advise the Lessor of the name, address, telephone number of
the manager of the assignee and that it will in connection with
any such transaction require that such assignee supply the Lessor
with the evidence of adequate insurance.
0. This lease also covers and includes, in addition to that
above described, all land, if any, contiguous or adjacent to or
adjoining the land described in this lease and (A) owned or
claimed by Lessors by limitation, prescription, possession,
reversion, or unrecorded instrument of (B) as to which Lessors
have a preference right of acquisition. Lessors agree to execute
any supplemental instrument requested by Lessee for a more
complete or accurate description of said land.
P. In the event it is discovered that Lessor owns less than
the entire fee simple estate described herein said Lessor shall
not be obligated to refund any part of the bonus money paid as
consideration for this lease.
Q. It is understood by the parties hereto that the leased
premises is located on or near the Greeley/Weld County Airport.
Lessee agrees to comply with all applicable local, county, state
and federal regulations. These include but are not limited to
height limitations upon equipment and colors required for
operation fixtures such as tank batteries. The parties agree that
all of the City of Greeley ordinances relating to oil and gas
drilling shall be applicable to the leased premises .
Signed for identification
Attest: Lessor: The City of Greeley,
a home rule municipal corporation
By:
Attest: Lessee: R A Resources , Inc.
By:
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