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HomeMy WebLinkAbout20021724.tiff Varra Companies, Inc. Office of Special Projects 1431 East 16th Street + Greeley,Colorado 80631 i Telephone(970)353-8310 ♦ FAX 970)353-4047 Monday 20 August 2001 Ross M. Horvath,P.E. Banks and Gesso,LLC 720 Kipling St.,Ste. 117 Lakewood,Colorado 80215 Subject: USR 1347—Kurtz Ranch Sand and Gravel—Aggregate Industries. USR 1343—Owens Bros. Concrete Company. Dear Ross: It was not immediately apparent to us or to the above participants as to the need to coordinate planned activities with our existing operations. It was appropriate for the County to suggest it respective of the Owens project,however,it appears to us equally appropriate for the Aggregate Industries project as well. Chris Varra is interested in assuring that the traffic impact studies at Owens and Kurtz North be combined to consider existing and projected levels of impact from our on-going Kurtz South operations at Highway 66. While open to the potential for sharing access at 66 with the Owens Concrete project,there is little to consider at this time without the potentials first being examined by a qualified study,the cost of which should be born by Owens Concrete,and shared by Aggregate Industries,due to their adjacent proposal. Additionally,it our understanding from diseossions with C-DOT is that a left hand turn will be required immediately North of our wens point for the planned Aggregate Industries project North of Highway 66. This project will shift the existing eight feet of our paved access to the North to provide for this left turn access,for which we should be compensated. Since considerable funds were utilized in the development and approval of our access,compensation for existing studies would be necessary prior to release of this information. Regardless, it would appear that our portion of the access has been completely satisfied,and any studies which may benefit the two adjacent applications should not be an additional expenditure for Varra Companies,Inc.or Sand Land,Inc. This does not preclude the need to assess a coordinated view for the benefit of all, including the traveling public and area community,for which there may surface residual benefits by a coordinated review and establishment of the additional access. Regardless,Varra Companies, Inc.needs to be considered in any Traffic Impact Studies respective of these proposed operations. We respectfully request to be included in any negotiations regarding the same at the State and County level. Please coordinate a meeting with all of the respective parties, i.e.; Banks&Gesso;Aggregate Industries;Owens Bros. Concrete;Colorado Department of Transportation;Weld County Government;Varra Companies,Inc.;and,Sand Land,Inc.at your earliest convenience. Please feel free to continue any communications through my office directly. Thank-you for your cooperation and kind consideration. Sincerely, Varra Companies;Inc., Bradford Janes "4 Professional Forester I EXHIBIT cc. Gloria Hice-Idler Assistant Access Manager use 46134 2002-1724 -- Mil Banks and Gesso, LLC 720 Kipling St.,Suite117 ■■ Lakewood, Colorado 80215 (303) 274-4277 October 5, 2001 Fax (303) 274-8329 www.banksandgesso.com Robert Anderson, Case Planner Weld County Dept. of Planning Services 1555 North 17th Avenue Greeley, Colorado 80631 Subject: Aggregate Industries Inc. —West Central Region, Proposed Kurtz Ranch Sand and Gravel Project Dear Robert: Since the Weld County Planning Commission hearing of August 7, at which the Kurtz Ranch sand and gravel mine was discussed, Aggregate industries Inc. -West Centrai Region has oegun several steps, necessary for the County's on-going review and approval processes. As these steps are taken, Aggregate Industries will consider the input of project neighbors, and will do its best to address your concerns and to share its findings with you. Although two months have passed since the hearing, Aggregate Industries has not been ignoring you. It has taken some time to get this additional work underway; and the next hearing, with the Board of County Commissioners, has not yet been scheduled. Aggregate Industries sincerely hopes to establish a good working relationship with the neighborhood before that next hearing occurs. In the past month, Aggregate Industries has hired a contractor to update the traffic study, taking into account the potential traffic contributions of the one existing and two proposed mining operations along Hwy 66. A meeting has also been held with the Colorado Department of Transportation (CDOT)to learn fully of that agency's requirements for access to the site. And, Aggregate Industries has selected a contractor to perform a ground water study, which will address potential impacts to neighbors and consider the cumulative impacts of the three mining operations. We hope that the next step will be to meet with the neighbors to hear your comments, address your concerns, and explain to you the steps that are being taken. Scott Keen will be your primary contact with Banks and Gesso, LLC, which continues to assist Aggregate Industries in this endeavor, and Norm Roche, at 303-985-1070, is your primary contact with Aggregate Industries. Don Jones of McFeeders Realty in Ft. Morgan is representing the land owners and can be reached at 970-867-7816. Attached is a list of neighbors of the proposed Kurtz Ranch project that will receive this mailing. We hope to arrange a meeting among this group in the next two to three weeks and ask that you call with suggestions for a good time and place that will be convenient for the greatest number of neighbors. I will follow up with another mailing when a time and place has been established. Thank you for your continued interest in this project. We are looking forward to talking further with you. Sincerely, Scott Keen Cc: Norm Roche, Aggregate Industries Inc. -West Central Region Don Jones, McFeeders Realty r EXHIBIT 3 1154..t i3y7 • KURTZ RANCH NEIGHBORHOOD MAILING LIST Bruce Wilson Daniel L. Ochsner 9268 WCR 28 18905 Weld County Road 394 Platteville, CO 80651 La Salle CO 80645 Ritchie E. and Linda Pyeatt Earl Geoffrey Morris 9826 State Hwy 66 8553 Highway 66 Platteville, CO 80651 Platteville CO 80651-9111 Mary Hemker Aurora Dairy Corporation 9247 WCR 28 7228 State Hwy 66 Platteville, CO 80651 Platteville CO 80651 Carmella SeKich Sand Land Inc. and Pasquale and 12898 WCR 19 Jacqueline Varra Platteville, CO 80651 12910 Weld County Road 13 Longmont CO 80504 Dorothy Mayer 9704 State Hwy 66 Robert and Joseph Davis Platteville, CO 80651 15428 Weld County Road 19 Platteville CO 80651 Lisa M. Haley 12840 WCR 17 Ralph Nix Produce Longmont, CO 80504 P.O. Box 301 Gilcrest CO 80623 Lila and Kenneth Mayer 14534 WCR 19 Raymond Collins& Lisa Robinson Platteville, CO 80651 8175 Highway 66 Platteville CO 80222 Pamela K. Heintzelman 12190 WCR 17 Sekich Farms Inc. Longmont, CO 80504 4315 Highway 66 Longmont CO 80504 Jane Ann Johnson 12506 WCR 19 Cynthia Parker Platteville, CO 80651 8234 WCR 28 Platteville, CO 80651 Louise LeFavor Tracy L. Johnson Nancy L. Fisher 8567 State Hwy 66 9225 Highway 66 Platteville, CO 80651 Platteville, CO 80651 Scott J. and Karen L. Wilson Robert Wilson 8233 HWY 66 9268 WCR 28 Platteville CO 80651 Platteville, CO 80651 Town of Firestone Robert Anderson, Case Planner PO Box 100 Weld County Dept. of Planning Services Firestone CO 80520 1555 North 17th Avenue Greeley, Colorado 80631 Trinidad Bean and Elevator Co. C/O Trinidad/Benham Corporation PO Box 22139 Denver CO 80222 ME Banks and Gesso, LLC 720 Kipling St.,Suite117 ■■ Lakewood, Colorado 80215 (303)274-4277 November 21, 2001 Fax (303) 274-8329 www.banksandgesso.com Kurtz Ranch Neighbors Subject: Aggregate Industries Inc., Proposed Kurtz Ranch Sand and Gravel Project Dear Neighbor, Aggregate Industries and Banks and Gesso, LLC would like to schedule a neighborhood meeting for the early evening of December 10, 11, 12, or 13. We would like to present our work and findings regarding access to the proposed mining site from State Highway 66 and regarding potential impacts to groundwater. We can address other subjects as well and hope to gain a good understanding of all issues that are important to you. With this letter, I am asking when and where the neighbors would like to gather. Please call me at 303-274-4277 with suggestions. Your neighbor, Linda Pyeatt, at 970-785-6203, has also shown considerable interest in the project and may be a good a point of contact for us. At the meeting, we can discuss the best means of communication for the future. Thank you for your continued interest in this project. We are looking forward to meeting with you during the second week of December. Sincerely, Scott Keen �t`1 Q\�n��ose L ti) ts‘ 14. EXHIBIT T KURTZ RANCH NEIGHBORHOOD MAILING LIST Trinidad Bean and Elevator Co. Bruce and Bobbi Wilson C/O Trinidad/Benham Corporation 9268 WCR 28 PO Box 378007 Platteville, CO 80651 Denver CO 80222 Ritchie E. and Linda Pyeatt Daniel L. Ochsner 9826 State Hwy 66 18905 Weld County Road 394 Platteville, CO 80651 La Salle CO 80645 970-785-6203 • Talked to Linda on 10-8-01 ... she Earl Geoffrey Morris will be a point of contact for at least 8553 Highway 66 14 on this list. Platteville CO 80651-9111 Mary Hemker Aurora Dairy Corporation 9247 WCR 28 7228 State Hwy 66 Platteville, CO 80651 Platteville CO 80651 Carmella SeKich Sand Land Inc. and Pasquale and 12898 WCR 19 Jacqueline Varra Platteville, CO 80651 12910 Weld County Road 13 Longmont CO 80504 Dorothy Mayer 9704 State Hwy 66 Robert and Joseph Davis Platteville, CO 80651 15428 Weld County Road 19 Platteville CO 80651 Lisa M. Haley 12840 WCR 17 Ralph Nix Produce Longmont, CO 80504 P.O. Box 301 Gilcrest CO 80623 Lila and Kenneth Mayer 14534 WCR 19 Raymond Collins & Lisa Robinson Platteville, CO 80651 8175 Highway 66 Platteville CO 80222 Pamela K. Heintzelman 12190 WCR 17 Sekich Farms Inc. Longmont, CO 80504 4315 Highway 66 Longmont CO 80504 Jane Ann Johnson 12506 WCR 19 Cynthia Parker Platteville, CO 80651 8234 WCR 28 Platteville, CO 80651 Louise LeFavor Tracy L. Johnson Nancy L. Fisher 8567 State Hwy 66 9225 Highway 66 Platteville, CO 80651 Platteville, CO 80651 Scott J. and Karen L. Wilson Robert Wilson 8233 HWY 66 9268 WCR 28 Platteville CO 80651 Platteville, CO 80651 Town of Firestone Robert Anderson, Case Planner PO Box 100 Weld County Dept. of Planning Services Firestone CO 80520 1555 North 17th Avenue Greeley, Colorado 80674 Don Jones McFeeders Realty 221 West Platte Avenue Fort Morgan, Colorado 80701 Norm Roche Aggregate Industries, Inc. —West Central Region 3605 South Teller Street Lakewood, Colorado 80235 ME Banks and Gesso, LLC 720 Kipling St.,Suite117 Lakewood, Colorado 80215 (303) 274-4277 November 30, 2001 Fax (303)274-8329 www.banksandgesso.com Kurtz Ranch Neighbors Subject: Aggregate Industries Inc., Proposed Kurtz Ranch Sand and Gravel Project Dear Neighbor, Our neighborhood meeting is scheduled for Monday, December 10 at 7:00 pm and will be at the home of Linda and Ritchie Pyeatt at 9826 Hwy 66, Piatteville. Norm Roche of Aggregate Industries, Inc. - West Central Region and I will be present, along with the water engineer, who is completing a study of potential impacts to groundwater in the area of the proposed project. Thanks again for your interest. We are looking forward to meeting with you on December 10. Sincere) , ila S6ott Keen Weld County PI ,nning Dept. Lcol RECEIVED 4. EXHIBIT env? DEC-19-2001 WED 11:36 AN " FAX NO. -- P. 02 AS A&GREGATh iN_USTR ES September 24,2001 Mr.Donald French HS Resources.Inc. 1999 Broadway,Suite 3600 Denver,CO. 80202 Re: Kurtz Lease Dear Dom I am enclosing duplicate originals of the proposed Surface Use Agreement and a Memorandum of Surface Use Agreement between our company,Aggregate Industries-WCR,Ine.,Elverna Burchfield Living'bust, Sherry Redmond dlb/a Kurtz Cattle Compnay end HS Resources,Inc. The enclosures have been signed by Elverna Burchfield,Sherry Redmond and Patrick Ward of our company. If the agreements are satisfactory to HS Resources,Inc..would you please have them signed and forwarded to my attention. Thank you very much for all your assistance in drafting of the agreements that will allow our two companies to carry on the ongoing activities required by each business. If you have any question,please give me a call. Sincerely, Norm Roche,Manager of Market Development Enclosures 4 EXHIBIT [IusXisY7 wild Central Region,Inc. 3605 South Teller Street Lakewood,CO 80235 Telephone;303-9854070 An Equal Opportunity Employer DEC-19-2001 WED 11:36 All FAX NO. - P. 03 MEMORANDUM OF SURFACE USE AGREEMENT This MEMORANDUM OF SURFACE USE AGREEMENT (herein "Memorandum") is made this_day of ,2001 by and between HS Resources, Inc. (HSR), Elverna Burchfield Living Trust and Sherry Redmond D/B/A Kurtz Cattle Company having a principal address of do McFeeders Realty, Appraisal and Management,LLC 221 West Platte Avenue,Fort Morgan, Colorado, 80701 and Aggregate Industries — WCR Inc., a Colorado Corporation formerly known as CAMAS Colorado, Inc. (herein "Lessors") having a principal office at 1999 Broadway, Suite 3600,Denver,Colorado 80202(herein"Oil and Gas Lessee"). WHEREAS, Lessors, the Sand and Gravel Lessee, and Oil and Gas Lessee desire to enter into said Surface Use Agreement and all of its terms,Lessors agree to allow entry and use of the land described in Exhibit"A"attached hereto and made a part hereof by Lessees. NOW, THEREFORE, for and in consideration of the sum of One Dollar($1.00)and other good and valuable consideration, Lessors and Lessees, do hereby covenant, promise and agree as follows: 1. The Surface Use Agreement provides in part that the Surface Owner will allow the Sand and Gravel Lessee to extract construction materials from the site in a manner which does not interfere with continued oil and gas extraction at the Site. 2. The sole purpose of this instrument is to give notice of said Surface Use Agreement, as required to substantiate a Right to Enter and perform sand and gravel mining and reclamation operations at the Site. ELVERNA BURCHFIELD LIVING TRUST By ,Trustee Elverna Burchfield Sh Re on AGGREGATE INDUSTRIES — WCR, INC., a Colo ion Name: 01-1 Title: HS RESOURCES,INC. By: Name: Title: GICImMINGJRAW WAMOOM<tsa.O WACII VS2 AMMAR TAle Colorado Dept.of Transportation-Region 4 1420 Second Street Greeley,Colorado 80631 Weld County Commissioners Weld County Colorado Weld County Dept.of Public Works Weld County Colorado Weld County Dept.of Planning Weld County Colorado Christopher L. Varra,President Varra Companies,Inc. Sand Land,Inc. 2 DEC-19-2001 WED 11:37 All FAX NO. -- P. 04 STATE OF NEVADA ) ss. COUNTY OF CLARK The foregoing was acknowledged before me this 13 day of J N.e .2001 by Elverna Burchfield,as Trustee of the Elvema Burchfield Living Trust. My commission expires: 'Z I WO! Witness my hand and official seal. Nee .Or— STATE •F NEV .•q �� JE --EY M• STATE OF COLORADO ) ) ss. COUNTY OF The foregoing was acknowledged before me this day of 2001 by Sherry Redmond. My commission expires: Witness my hand and official seal. Notary Public cICISURr un RatisnAMMOWIINAteWM.a ue•oaamnr DEC-19-2001 WED 11:37 All FAX NO. -- P. 05 STATE OF COLORADO ) )ss. COUNTY OF .TF.FFRRSAM ) ent was acknowledged before me this?3tbay of June • 200 � 4r ki e o i f Witness my bald d official seal. (SE CO\-v ( dale, Notary Public My Commission Expires: RPF i1 10, 2004 STATE OF NEVADA ) )ss. COUNTY OF ) The foregoing instrument was acknowledged before me this_day of 2001, by Elvema Burchfield,Trustee of the Elvema Burchfield Living Trust, Witness my hand and official seal. 4. u (SEAL) Notary Public My Commission Expires: G:\Ciients\K\ICURTA\HS Resources\Surface Use Agreement-HS and Aggregate.doc DEC-19-2001 WED 11:37 AM ^ FAX NO. - P. 06 STATE OF COLORADO ) ) s s. COUNTY OF tress v ) The foregoing was aclmowledg before me thisgar_day of 4:Can 2001 by trveb e kind as[r/iy Ain*for Aggregate Industries—WCR,Inc. a Colorado corporation,on behalf of the corporation. My commission expires: QesQK..�,..i.o { Witness to . ' . •fficial seal. i �" F' KY PI � '•. p t 'n'<f!„,,, Notary Public j BARBARA S. 1 : ISUDERMAAN .4k. et. STATE OF COLORADO ) ) 55. COUNTY OF ) The foregoing was acknowledged before me this day of ,2001 by as for HS Resources,Inc., a Delaware corporation, on behalf of that corporation. My commission expires: Witness my hand and official seal. Notary Public antlly"uitmeR.wn..esio NDWonun, ese ALla{.ILMT`e DEC-19-2001 WED 11:37 AN FAX NO. — P. 07 SURFACE USE AGREEMENT (Existing Wells and Future Wells) This Surface Use Agreement("Agreement")is made this day of ,2001,and is between HS Resources,Inc. ("HSR"), with an address of 1999 Broadway, Suite 3600, Denver, Colorado 80202,and Aggregate Industries—WCR,Inc.a Colorado Corporation,formerly known as AGGREGATE Colorado,Inc.(Aggregate),with an address of 3605 South Teller Street,Lakewood, Colorado 80235, and Elvema Burchfield Living Trust, and Sherry Redmond,D/B/A Kurtz Cattle Company("Surface Owner")with an address of do McFeeders Realty,Appraisal&Management, LLC,221 West Platte Avenue,Fort Morgan,Colorado 80701. A. Surface Owner is the owner of the surface and Aggregate will mine a parcel located in Section 20 and W/2 Section 21, Township 3 North, Range 67 West, Weld County, Colorado ("Property"), more particularly described in Pvhibit A attached hereto and incorporated herein by this reference. B. Surface Owner's ownership of the Property and Aggregate's mining operations on this Property are subject to the rights of the oil and gas mineral estate which has been leased to HSR; C. Aggregate will apply for and obtain a mining permit for an open cut gravel mine and batch plant known as the"Kurtz Ranch Sand and Grave Mine"("Mine"); D. HSR has the right to deepen, recomplete or rework the existing wells ("Existing Wells")on the Property. E. HSR has the right to develop its oil and gas leasehold estate by drilling additional wells(hereinafter referred to as"Future Wells")on the Property and/or deepening,recompleting,or reworking these Future Wells; and F. This Agreement sets forth the parties'rights and obligations regarding the relationship between the development of the Property by Aggregate and Surface Owner and HSR's operation and development of its oil and gas leasehold estate. In consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. AREAS RESERVED. Aggregate and Surface Owner shall provide HSR no less than a 150 foot radius around Existing Wells (the "Oil and Gas Operation Areas") as described on Exhibit B attached hereto for the Existing Wells and for the Future Wells, jointly the ("Wells"), for any operations conducted by HSR in connection with any Wells, including,but not limited to, lease operating activities, new drilling, workovers, well deepenings, recompletions and fracturing. DEC-19-2001 WED 11;37 AN ^ FAX NO. - P. 08 2. FUTURE WELL LOCATIONS. HSR shall have the right to drill Future Wells(including horizontal and directional wells that produce from and drain the Property and lands other than the Property) at any locations within the Oil and Gas Operation Areas, so long as such locations are permitted locations under the then applicable well spacing regulations of the Colorado Oil and Gas Conservation Commission ("COGCC"). HSR shall not otherwise have the right to drill wells on the Property. 3. ACCESS. a) Aggregate and Surface Owner shall at all times provide to HSR no less than a 30 foot wide easement for access to the Oil and Gas Operations Areas and production facilities. HSR shall maintain arress roads at its sole cost during the period of time that HSR conducts operations on the Property using such access. Whenever possible, access roads will be located over flowlines and/or pipelines. b) Access to Operation Areas and production facilities may be changed by mutual agreement of Aggregate,Surface Owner and HSR;provided,however,all costs and expenses of the relocation shall be borne by Aggregate. c) Aggregate shall maintain and keep any access jointly used by Aggregate and/or Surface Owner and HSR in good condition and repair; however, if HSR causes damage to a road,HSR agrees to promptly repair any damage which it caused which is a direct result of its use of the road. Neither HSR,nor Aggregate nor the Surface Owner shall unreasonably interfere with the use by the other party of access roads. d) Aggregate will not allow any extraction or fill,using as a baseline the surface of the original ground as of the date of this Agreement,within a radius of 100 feet from the center of any wellhead,without first submitting in writing to HSR 60 days prior to beginning such activity a plan acceptable to HSR for interim emergency procedures to include satisfactory access of a workover rig and emergency vehicles. Upon conclusion of the extraction,Aggregate will fill and level the Oil and Gas Operation Areas within no less than a 150-foot radius of the wellhead. Extraction within the 100-foot radius of a wellhead will not take longer than 4 months unless a longer period is agreed to by Aggregate and HSR. 4. BATTERIES AND EQUIPMENT(PRODUCTION FACILITIES). a) HSR shall have the right to locate, build, repair and maintain tanks, separators, dehydrators, compressors and other equipment reasonably appropriate for the operation and production of any Wells only within the Oil and Gas Operation Areas or within the area of existing production facilities, which facilities are shown on Exhibit B attached hereto. DEC-19-2001 WED 11:38 AN FAX NO. -- P. 09 b) Aggregate and/or Surface Owner shall install and maintain, at its sole cost and expense,any landscaping Aggregate and/or Surface Owner finds necessary around any Operation Areas or production facilities. Neither party shall inhibit HSR's access to said facilities by landscaping or other installations. 5. FLOWLINES AND PIPELINES. a) HSR shall have the right to lay flowlines and pipelines,which to the extent possible will be located under access roads to the Oil and Gas Operation Areas and production facilities. All pipelines shall be located at a surface depth of approximately 48 inches from the final graded elevation. Flowlines,which are defined as those lines which carry water or hydrocarbons from the wellhead to a production unit (such as a separator),shall be buried to a surface depth of at least 36 inches. The construction and burying of flowlines and pipelines shall be at the sole cost and expense of HSR or its gas purchaser. b) Aggregate will not allow any extraction to occur,commencing at the surface of the original ground,closer than 12.5 feet from any flowline or pipeline. c) Aggregate shall not allow any stockpile of soil exceeding 5 feet in depth to be placed over any flowline or pipeline. Should Aggregate desire to exceed this limit, then it may request relocation as provided in this Section below d) Should Aggregate desire a relocation of flowlines or pipelines, HSR agrees to relocate such lines within 60 days of receiving notice from Aggregate of the desired location of any relocation and Aggregate ehatl pay all of HSR's costs for any relocation. 6. NOTICE OF OPERATIONS. HSR shall provide at least seven days'prior written notice to Aggregate and Surface Owner of any operations in connection with the reworking,fracturing,deepening or other operation on any Wells; provided, however, that HSR shall provide at least 30 days' prior written notice to Aggregate and Surface Owner of the initial drilling of any Future Wells. Regardless of the foregoing notice requirements,HSR shall have immediate access to the Operation Areas and production facilities in the event of an emergency. The Notification shall describe the following: a) The proposed starting date of the proposed activity; b) The proposed operations to be performed at the site;and c) The approximate duration of the proposed activities. DEC-19-2001 WED 1138 AN " FAX NO. P. 10 Not less than five working days prior to HSR's mobilization on the applicable Oil and Gas Operation Areas,either HSR,Aggregate or Surface Owner may request an on-site meeting. The purpose of the meeting shall be to inform Aggregate or Surface Owner of the expected activity and to coordinate site access,hazards,barricades,restoration or any other issues. 7. NOTICE TO HOMEOWNERS AND BUILDERS. Surface Owner chall furnish all buyers of the Property with a plat or map showing the access roads,the Oil and Gas Operation Areas,production facilities and other related facilities. In addition, the Surface Owner shall provide notice to all builders, homeowners and other buyers of the Property from Surface Owner that: a) There may be ongoing oil and gas operations and production in the Oil and Gas Operation Areas and production facilities on the surface of the Property; b) There may be additional Wells drilled on the Operations Areas; and c) Purchasers of portions of the Surface Owners property,as successors in interest to the Surface Owner, will be acquiring all of the Surface Owners' rights under this Agreement and Assuming those obligations undertaken by the Surface Owner pursuant to this Agreement, including, but not limited to, the waiver provisions provided in Section 9 below. 8. DRILLING AND COMPLETION OPERATIONS. HSR shall endeavor to diligently pursue any actual drilling operations to minimize the total time period and to avoid rig relocations or startup during the course of drilling. Aggregate and Surface Owner waive any objections to continuous (i.e.,24-hour) drilling operations. HSR shall conduct its operations in compliance with the provisions of the rules and regulations of the COGCC set forth in Rule 603,subject to the setback waivers provided in Section 9 below. 9. SETBACK REQUIREMENTS. Aggregate and Surface Owner will not locate inhabited buildings within 150 feet from the Oil and Gas Operations Areas or production facilities. Since Future Wells may be located at any location within any Oil and Gas Operations Area,Surface Owner and Aggregate waive the 150-foot setback requirement provided in Rule 603 a. (2) of the COGCC rules and regulations insofar as subsequent development may create new surface property lines within 150 feet of any Oil and Gas Operations Area. In the event the high density area rules become applicable to any Future Wells, Surface Owner and Aggregate also waive the high density setback requirements in Rule 603 b. of the COGCC rules and regulations. The waivers provided herein shall be binding upon the successors and assigns of Aggregate and Surface Owner and shall benefit HSR, its successors and assigns under the existing oil and gas leasehold estate. DEC-19-2001 WED 11:39 An FAX NO. P. 11 10. DEVELOPMENT PLANS. Aggregate and Surface Owner have provided herewith copies of the proposed Pm-Mining Plan (Exhibit B), Mining Plan (Exhibit C-2) and Reclamation Plan (Exhibit F). HSR acknowledges receipt of said Plans and have no objections to said Plans as submitted. This acceptance by HSR in no way waives HSR's rights in this agreement or obligations of Aggregate and Surface Owner under the terms of this agreement. Aggregate and Surface Owner acknowledge that HSR may conduct oil and gas activities within the Oil and Gas Operations Areas provided herein and neither shall oppose HSR before any agency or governmental proceeding if such oil and gas activities are proposed and carried out in accordance with the terms of this agreement. 11 . LIMITATION OF LIABILITY,RELEASE AND INDEMNITY. a) NO PARTY SHALL BE LIABLE FOR, OR BE REQUIRED TO PAY FOR, SPECIAL, PUNITIVE, EXEMPLARY, INCIDENTAL, CONSEQUENTIAL OR INDIRECT DAMAGES TO ANY OTHER PARTY FOR ACTIVITIES UNDERTAKEN WITHIN THE SCOPE OF THIS AGREEMENT; b) Except as to claims arising out of pollution or environmental damage(which claims are governed by Section 12 below) or out of other provisions of this Agreement (which claims shall be governed by the terms of this Agreement),each party shall be and remain responsible for all liability arising out of those losses,claims,damages, demands,suits,causes of action,fines,penalties,expenses and liabilities,including without limitation attorneys' fees and other costs associated therewith (all of the aforesaid herein referred to collectively as"Claims'),arising out of or connected with each such party's ownership or operations on the Property,no matter when asserted, subject to applicable statutes of limitations. Each such party shall release,defend, indemnify and hold the other parties,their officers,directors,employees,successors and assigns,harmless against all such Claims. This provision does not,and shall not be construed to,create any rights in persons or entities not a party to this Agreement, nor does it create any separate rights in parties to this Agreement other than the right to be indemnified for Claims as provided herein; c) HSR shall not permit any liens to be filed on or otherwise attach to,the Property,and in the event any such liens are filed by a person pursuant to any statute or any lien attaches by operation of law or otherwise,HSR shall take all necessary action,at its sole cost and expense, to have such lien discharged and released as promptly as practicable, except that HSR shall have the right to file an operator's lien against other owners of the oil and gas leasehold interest to recover amounts owed to HSR; and d) Upon the assignment or conveyance of a party's entire interests in the Property,that party shall be released from its indemnification in Section 11.b. above, for all actions or occurrences happening after the assignment or conveyance. DEC-19-2001 WED 1139 AN FAX N0. ^ P. 12 e) HSR acknowledges that the Mining Plan and the Reclamation Plan provide for lakes in certain areas and that figure wells cannot be drilled in such areas of the Property. 12. ENVIRONMENTAL INDEMNITY. a) The provisions of Section II above, except for Section 11 a, shall not apply to any environmental matters,which shall be governed exclusively by the following,subject to the limitations of Section l la above; b) "Environmental Claims"shall mean all Claims asserted by governmental bodies or other third parties for pollution or environmental damage of any kind,arising from operations on or ownership of the Property or ownership of the oil and gas leasehold interest, whichever is applicable, and all cleanup and remediation costs, fines and penalties associated therewith,including but not limited to any Claims arising from Environmental Laws or relating to asbestos or to naturally occurring radioactive material. Environmental Claims shall not include the costs of any remediation undertaken voluntarily by any party,unless such remediation is performed under the imminent threat of a Claim by governmental bodies or other third parties; c) "Environmental Laws"shall mean any laws,regulations,rules,ordinances,or order of any governmental authority(ies), which relate to or otherwise impose liability, obligation, or standards with respect to pollution or the protection of the environment, including but not limited to, the Comprehensive Environmental Response,Compensation and Liability Act of 1980,as amended(42 U.S.C.§ 9601 et seq.),the Resource Conservation and Recovery Act of 1976(42 U.S.C. §§ 6901 et seq.),the Clean Water Act(33 U.S.C. §§ 466 et seq.),the Safe Drinking Water Act (14 U.S.C. §§ 1401-1450), the Hazardous Material Transportation Act (49 U.S.C. §§ 1801 et seq.),the Clean Air Act,and the Toxic Substances Control Act(15 U.S.C. §§2601-2629);and ^r, d) "Environmental Indemnification." HSR shall fully protect, indemnify, and hold harmless Surface Owner and Aggregate who purchases a lot from Developer from any Environmental Claims relating to the Property or oil and gas leasehold thereunder that arise out of its ownership and operation of the Oil and Gas Operations Areas. Aggregate and Surface Owner shall fully protect, indemnify and hold harmless HSR from any and all Environmental Claims relating to the Property that arise out of their development of the Property. 13. EXCLUSION FROM INDEMNITIES. The indemnities of any party herein shall not cover or include any amounts for which the indemnified party may legally recoup from other third party owners without judicial process, or that for which the indemnified party is reimbursed by any third party. The indemnities in this Agreement shall not relieve any party from any obligations to third parties. DEC-19-2001 WED 11:39 Ni ^ FAX NO. - P. 13 w 14. NOTICE OF CLAIM FOR INDEMNIFICATION. If a Claim is asserted against a party for which another party would be liable under the provisions of Section 11 or 12 above,it is a condition precedent to the indemnifying party's obligations hereunder that the indemnified party give the indemnifying party written notice of such Claim setting forth all particulars of the Claim, as known by the indemnified party, including a copy of the Claim(if it was a written Claim). The indemnified party shall make a good faith effort to notify the indemnifying party within one month of receipt of a Claim and shall effect such notice in all events within such time as will allow the indemnifying party to defend against such Claim and no later than three calendar months after receipt of the Claim by the indemnified party. 15. REPRESENTATIONS. The parties represent to one another that each one has the full right and authority to enter into this Agreement. HSR does not represent that it has rights to settle matters for the mineral owners in the Property. HSR only has rights as a mineral lessee and this Agreement only pertains to such rights as HSR may hold. 16. SUCCESSORS. The terms, covenants and conditions hereof shall be binding upon and shall inure to the benefit of the parties and their respective successors and assigns; provided, as to HSR, successors and assigns shall be deemed to be limited to lessees under the oil and gas leases which HSR owns. 17. TERM. This Agreement shall become effective when it is fully executed and shall remain in full force and effect until HSR's leasehold estate expires or is terminated,and HSR has plugged and abandoned all Wells and complied with the requirements of all applicable oil and gas leases pertaining to removal of equipment, reclamation, cleanup and all other applicable provisions of the leases and existing laws and regulations. When this Agreement ceases to be in full force and effect,the parties shall execute any and all releases necessary to evidence the fact that this Agreement shall no longer apply to the Property. 18. NOTICES. Any notice or other communication required or permitted under this Agreement shall be sufficient if deposited in U.S.Mail,postage prepaid, addressed to each of the following: If to HSR: HS Resources,Inc. 1999 Broadway, Suite 3600 Denver,CO 80202 Attention: Land Manager DEC-19-2001 WED 11:40 All FAX NO, -- P. 14 r If to Aggregate: Aggregate Industries West Central Region,Inc. 3605 South Teller Street Lakewood, CO 80235 Attention: Norm Roche Surface Owner: Mr. Donald L.Jones McFeeders Realty,Appraisal&Management,LLC 221 West Platte Avenue Fort Morgan, CO 80701 Any party may, by written notice so delivered to the other parties, change the address or individual to which delivery shall thereafter be made. 19. RECORDING. A Memorandum of this Agreement or any amendment hereto,and any release entered into pursuant to Section 17 above,shall be recorded by HSR,which shall provide the other parties with a copy showing the recording information as soon as practicable thereafter. 20. ARBITRATION. Any controversy or claim arising out of or relating to this Agreement,or the breach thereof, shall be resolved by arbitration administered by the American Arbitration Association under its commercial rules,and judgment on the award rendered by the arbitrator(s)maybe entered in any court having jurisdiction thereof. 21. APPLICABLE LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado. 22. ENTIRE AGREEMENT. This Agreement sets forth the entire understanding among the parties hereto regarding the matters addressed herein,and supersedes any previous communications,representations or agreement,whether oral or written. This Agreement shall not be amended,except in written form signed by all parties. DEC-19-2001 WED 11:40 Ni ^ FAX NO. P. 15 The parties have executed this Agreement on the day and year first above written. HS RESOURCES,INC. By: Janet W.Pasque,Attomey-in-Fact AGGREGATE INDUSTRIES -WCR,INC. By: Cc"'N�' �'� old Name-:+ PItt Ck .14 Title: V tC8 tE jj3E `(EseM SURFACE OWNERS Name: berry dm d Title: e ELVERNA BURCHFIELD LIVING TRUST By: Name: Elverna Burchfield,Trustee Title: Owner DEC-19-2001 WED 11:40 All ^ FAX N0. P. 16 The parties have executed this Agreement on the day and year first above written. HS RESOURCES,INC. By: Janet W. Pasque,Attorney-in-Fact AGGREGATE INDUSTRIES -WCR,INC. By: roL — Name: Title: SURFACE OWNERS By: Name: Sherry Redmond Title: Owner ELVERNC D LIVING TRUST BY d!/ .l�yt.y A. gitilhs N e• lverna Burc eld,T� Title: Owner 'l. DEC-19-2001 WED 11:40 AM ^ FAX NO. -- P. 17 STATE OF COLORADO ) )ss. COUNTY OF .TRFFRRR[)N ) The foregoing instrument was acknowledged before me this 1jday of June , 2001,by Sherry Redmond. Witne afflcial seal. ''''' a tiVeeLet (SEAL) t; 1%0aTip ‘ Y i&e v t, Notary Public MyCommi tflip it 10, 2004 STATE OF NEVADA ) )ss. COUNTY OF ) The foregoing instrument was acknowledged before me this_day of 2001,by Elverna Burchfield,Trustee of the Elverna Burchfield Living Trust. Witness my hand and official seal. (SEAL) Notary Public My Commission Expires: G:\Clients\K\KURTA\HS Resources\Surface Use Agreement-HS and Aggregate.doc DEC-19-2001 WED 11:40 AN ^ FAX NO. -- P. 18 STATE OF COLORADO ) )ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2001,by Sherry Redmond. Witness my hand and official seal. (SEAL) Notary Public My Commission Expires: STATE OF NEVADA ) )ss. COUNTY OF CIO?' ) The foregoing instrument was acknowledged before me this l S day of Tv/It , 2001,by Elverna Burchfield,Trustee of the Elvetna Burchfield Living Trust. Witness my hand and official seal. (SEAL) J 's.. _... • s� ":tom' NotgcyPublic, My Commission Expires:., - iL zc ,1 1- ',.,m NOTARY puetjo . STATE Or NEyADA MOn 31.a.4 ailing 12,*WI MOUfZ G:\Clients\K\KURTA\HS Resources\Surface Use Agreement-HS and Aggregate.doc • 1111111 IIIII 1111111111111 I"1I'IIIII III IIIII IIII IIII 2746644 01/27/2000 04:u6. .n dukl Tsukamolo 1 of 2 R 10.00 D 0.00 Weld County CO NOTICE OF RIGRT TO USE SURFACE OF LANDS '` THE UNDERSIGNED,James P. Wilson,as Denver Basin Land Supervisor,of HS RESOURCES,INC.,a Delaware corporation("HSR"),whose address is 1999 Broadway, Suite 3600, Denver,Colorado 80202,on behalf of I ISR,states as follows: I ISR is the owner of or has the right to an undivided interest in and to those certain Oil and Gas Leases set forth on Exhibit "A" attached hereto and by this reference made a part hereof, as same may be amended, (hereinafter referred to as the"Oil and Gas Leases"). The undersigned is familiar with the terms and conditions of the Oil and Gas Leases and hereby confirms such as a valid and subsisting Oil and Gas Leases which are within or have been extended beyond their primary terms by the actual drilling and production front a well or wells capable of producing oil and/or natural gas on lands covered by the Oil and Gas Leases or lands which have been pooled or unitized therewith. I ISR, its agents, employees, designees, co-owners, successors and assigns hold certain rights to use and access the surface of the lands described below for the purpose of, among other things, DRILLING OR COM I'I.ETION OPERATIONS OR CONTINUING ACTIVITIES FOR 'HIE PRODUCTION OR TRANSPORTA'T'ION OP OIL, GAS, OR OTI IPA IIYDROCARTIONS OR PRODUCTS ASSOCIATED Wffll TILE FOREGOING INCLUDING,BUT NOT LIMITED TO, SURFACE USE, INGRESS TO, EGRESS FROM, AND CONSTRUCTION, MAINTENANCE, REPAIR, REPLACEMENT, AND MONITORING OF WELLS, LOCA'T'IONS,EQUIPMENT,MUD AND RESERVE PITS, WELI.IIEAD EQUIPMENT,SEPARATORS,TANK BATTERIES,PIPELINES,GATHERING I.INES, FI.OWLINES,PIPELINE INTERCONNECTIONS,AND ANY AND ALL O'fl IER REASONABLE OR CUSTOMARY USES OF LAND RELATED TO SAID OPERATIONS OR ACTIVITIES. ALL OF SUCH SURFACE USES ARE SUBJECT TO THE TERMS SET FORT!! IN THE OIL AND GAS LEASES,AT LOCATIONS WITHIN THE FOLLOWING DESCRIBED LANDS: Township 3 North,Range 67 West,6th P.M. Section 20:E/2; Section 21: W/2; r NOTICE is hereby provided to all interested parties,including any surface owners,their heirs,assigns mid successors-in-interest that HSR has an ongoing right to use the surface of the lands described above for ally use as allowed by the Oil and Gas Leases now or at some future date. Certain Oil and Gas Leases may contain specific provisions restricting I ISR's surface uses and occupancy. This Notice shall not apply to those Oil and Gas Leases containing such provisions or lands affected thereby. The provisions of each Oil and Gas Lease may he determined by examining the document as recorded on the Weld County records at the book and reception number provided on the attached Exhibit "A". This notice is intended to remain in force for as long as the Oil and Gas Leases, or any extensions or renewals thereof remain in effect as to the above described lands or any portion thereof. I however,nothing herein contained shall be construed to limit the rights or enlarge the obligations of I is or any other party owning an interest in said lands or Oil and Gas Leases. Further, this notice shall not be construed to modify or disclaim any interest MR or any other party may have in any other valid lease or leases which along with the Oil and Gas Leases may form a part of a pooled or unitized area for an existing well or which may become part of a future spacing unit or pooled area or may actually cover an interest in the specific lands herein described. HS RESOURCES,IN \-t By: James P. ason '..Denver Basin Land Supervisor STATE OF COLORADO ; .1.. :'" ) ss CITY ANq C119./NTY O(DENVER ) The foregoing;liistrmnent was acknowledged before me this:nth day of December, 1999, by James P. Wilson,as JY'edvb(.Basin Land Supervisor of HS Resources,Inc.,a(Delaware corporation. WITNESS my hand and official seal. I Li Notary Publ c Address: 1999 Broadway,Suite 3600 4 EXHIBIT Denver,CO 80202 My Commission expires: • �Q LU,(#/347 00 � A o 2►2 J$ IUMERI1@ U |IH| N O e O 0 . • [ § 6� § ! a § ( I_ ® u.0 } § 22 a k § \ E 0 U / 2 > 2 \ ) k ) ( � § � § k § & y § § ± 2 ; 9 \ ) § § � \ } / ,I , , w ` , , , , , 2 tr § CO CD CO to ID Co CO CDg CI COCI CO , CO CO CI CO \ . o f 01 to co in o / f k ) \ § .tt N. N. CD Y- bill: J Q G B 7 G CD CI) cn ro k § § ON § R § § § . - A § § § § 2 § 2 § I u z0 2 — i- k § k • \ § ogg } k } \ e § } dod § zzo § , § § / ) o \ & 83 ° o x } ) ) ) ° • 0 \ ci \ # § ( 28 & § [ ) )of d , - ! 9 $ / ) $§ } ) k \ / \ S \ ) B } F. is \ # 7 § / / { / \ \ 0 \ 0 \ \ 0 \ N \ EXHIBIT B Colo -ado Oil and Gas Conservation Commission GREATER WATTENBERG AREA Special Well Location Rule 318 A 92o Acre Spacing Unit /00• '$a loo• . ❑ 800'. ❑ 800• • d Aso 100' 400' pp Y 800' eao• Leo• 9 1 ! 400'x 400' Sec._-T N - R_W 800'x 800' MO Ft Sal b 1027 ,.ts,01b' '821 wit 0o/84 10:52 ar .. �U 1/0U6 ARb988615 F 2102 M. 'N. FEUERSTEIN CLERK & RECOnOL. ID CO, CO night-of-Way Grant B 1049 REC 01988615 11/15/84 12:34 518.00 1/006 F 1257 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO KNOW ALL MEN BY THESE PRESENTS,that Flverna Kurt? and Sherry Hnrkine as co-oersonal representatives of the estate of Albert D. Kurtz, deceased of the Post Office of 13634 Weld Co. Rd. #17, Plattevillein the State of Colorado, 80651 hereinafter referred to as"Grantor" (whether one or more),in consideration of Ten Dollars($10.00)and other good and valuable considerations, to Grantor in hand paid,receipt of which is hereby acknowledged, hereby grant and convey unto PANHANDLE EASTERN PIPE LINE COMPANY, A Delaware Corporation, having an office at 636 North 7th Ave.;Brighton,Colorado, 80601 its successors and assigns, hereafter referred to as "Grantee,"a Fight- lyaJo cppQlrgptt 'n, lower, inspect,repair,replacextdoDat1t change the size of, operate, and rThBn'b&e I @'fin gdtl M a ng is for drips,pipe line marlfers,valves, launchers, receivers, cathodic equipment,test leads,and all appurtenancesappurtenanceoxitterdeltlarOinlitbilah8e and operation of said line and for the transportation of oil,gas or other substances therein, under,on,over and through the premises hereafter described, and the Grantee is granted the right of ingress and egress, to,on, from and over the following.. described premises for the purposes aforementioned in the County of unl A in the State of Colorado, to-wit: - The Northwest Quarter of Section 21, except the parcels of land as conveyed by deeds • recorded in Book 807, page 68 and in Book 1004, Page 239, Welt County Records, AND the Northeast Quarter of the Northwest Quarter of Section 24, AND SAND the Northwest Quarter of the Northeast Quarter of • Section 29, Range 67 West of the 6th P.M., lying South of the center line of the St. Vrain Creek. Grantee agrees that should a crop deficiency occur as a result of the pipeline con- struction, the Grantee will pay such deficiency for a period of three years commencing with the crop of 19gi ; provided, however, Grantor or his tenant notifies Grantee in writing prior to harvesting of crop so that Grantee's agent may view said deficiency claimed. TO HAVE AND TO HOLLI said easements,rights,and Right-of-Way unto the said PANHANDLE EASTERN PIPE LINE COMPANY,its successors and assigns. All pipe installed hereunder shall be buried a minimum of Al i^ch^c . Grantor shall not construct or place anything over or so close to any pipe line or other facility of Grantee as will be likely to interfere with Grantee's surveillance of or access thereto by use of equipment or means customarily employed in the surveillance of or maintenance of said pipe line nor intentionally cause the original cover over said pipe line to be reduced below whichever is the greater of a minimum cover of thirty(30")inches or below the minimum cover required at any time by any a plicable pipe line safety code.All damage tOttocenfjapfgasir occasioned by�jtlknEdH9tfvdt ctni-Mik 'Otany of the facilities erem autnonzea o ce maintained and operated by Grantee shall be paid by Grantee after the damage is done.The Right-of•Way granted herein shall be fifty(60')feet in width., the centerlines of which are shown on plats marked EXHIBIT "A", EXHIBIT "B" and EXHIBIT "C" attached hereto and made a part hereof. EXHIBIT "D" This Grant shall be binding upon the heirs,executors,administrators,successors, and assigns of the parties hereto, and all rights herein granted, or any of them separately,may be released or assigned ha whole or In part. It is understood that this Grant cannot be changed in any way except in writing, signed by the Grantor and a duly authorized agent of the Grantee. IN WITNESS REGF,the Grantors have hereunto a heir hands and seals ihia�_J4 day of I` I f<CLG+\ , A.D., 19 . ✓ -!ham !A E v rn rtz, co rson pre v herry Hocking, c0-personal tt pre entative of the estate of Albert n it? RECORDER'S MEMORANDUM nT 111•11. U, Ri URVRIIU,i. Irim NW STRUMENT WAS FOUND TO BE INADEQUATE FOR THE BEST PHOTOGRAPHIC REPRODUCTION Cp (/ BECAUSE OF ILIECIBILITY,CARBON OR PHOTO O's--Ow-V/jO/- 00/ COPY, DISCOLORED PAPER, ETC. This instrument re-recorded to correct description and the location of pipelines on EXNIB • A *'n .EDGEMENT FOR HUSBAND ANTI ,\. . ACKNOWLEDGMENT BY PERSONAL REPRESENTAIIVE • STATE OF Cpt,c,d; ) • COUNTY OF l S ) ss. Before me, the. ur,�wdersigned, a Notary Public in and for said County and State on this )t} day of . MR2U+ , 19$ , personally appeared t�'Lt e KUR-7a--- , as Per onal Representative of the Estate and=l tt-Wtri ndeS{Tr2temant..ai o - f-Nt. Z' 1). KUa L— , deceased, who is to me known to be the identical person who executed the within and foregoing instrument as such Personal Representative, and acknowledged to me that Skims executed the same Vr€:✓ free and voluntary act and deed as Personal Representative of the Estate Ater • , t;uv.a— , deceased, for the uses and purposes therein set forth. '- tO• d Given under my hand and seal the day and year last above written. v 1 ., a ,r /', 2 ' o Notary Public t ef. Wallace 't LI; £QJaniission Expires CDC ', a:2 , 19 P. O., Box 978 l.on"mont Colorado 8n502 B 1025 REC 01961821 04/05/84 10:52 $15.00 2/005 F 2103 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO ACKNOWLEDGMENT BY PERSONAL REPRESENTATIVE STATE OF Cdotad.o ) r" COUNTY 0F�ow4.ca._ ) ss. Before me, the undersigned, a Notary Public in and for said County and State, on t,`h4i--s� day of MctiLeN- , 19 F'�-f , personally appeared ST1N`P.. \ QC ..1NG. a Personal Representative of the state of (jl6L'fL-T— D, Kt.,.QA- , deceased, who is to me known to be the identical person who executed the within and foregoing instrument as such Personal ' • Representative, and acknowledged to me that Ski executed the same ' 'wt— free and voluntary act and deed as Personal Representative of the Estate of tit.-Y b. K..1/4),P—Ti=- , deceased, for the uses and purposes therein set forth. ,'cl•�E...H. 'Eiowen under my hand and seal the day and year last above written. • v \\PTAH);\ , 1 W N 0- : - , N -----1)-A.---t-. -Gic N -ft ` QY J Notary Public 9V tom fission Expires Oct - 1:7 , 19F7. N H-1 N Fa E.-. N .;� B 1049 REC 01988615 11/15/84 12:34 $18.00 2/006 I r , F 1258 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO V Z i 0. e O '8) 41 V" yJ O q y o q U g - r W w `y' o .n .n .n ~ 'Z o C� 3 000 .� L C • a o i Ooo m s a o a � � E y z N N N W 's' O W 0.i a y O a O C d z .: W W N O C O 2 CO U k. € ' z do a 8 z. k, o g 9 'z 5 1:4 V z m 0 O ? .5 C g N W F C z ,V., a s 9 q f XitO I. C. p. m co U I m B 1025 REC 016' 11 04/05/84 10: 52 $i5 0 3/005 F 2104 MARY -"N _ ZUERSTEIN CLERK & REC(^''ER WELD CO, CO A-. B 1049 REC 01988615 11/15/84 12 : 34 $18 . 00 3/006 F 1259 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO N I + ----1 N.,-- .. • ri Sit N 4I- N _ a n 0 7 M m / "-- Y dJ in I P r N / 'd �# O 14' C- O 1 .`V ri r A �� b\mu , 4""A is75 111 N Q_ -I-- :t--,2". O N m c 1 r r - r X a u., 0: / o c. IL 0- / (,_____________.--- 0 -J 3 0 _ry N W a Q—� ' WZU dim a I ._ . . _ _ - • - I— W as- + — _ fRt al!UAL DESU ) CNAINIGED cou —Tµ Y Pt.ATTE -- _ f f x-16 10-070 2S. 6 .: •F �- - x '-',1-_:.6 4 PROP 14 .10 015 1306 C ` - . 4. Sec 24K Y r e • �0�3.95' `�—r :!....be,.-..7r3Pi-R67Vdv� "m .� .y Ei , CoLo. `, f - " 93e 46'30 b J AMOCO ti. K. NORGR EN-- D 1 ' TRUE:.• S MS. 30613-D - ' ,c- ! N 1 • r, 16 10 O7 114 4" i Yt-✓ S _ Lam-. L `24 . _ � :: - ..,,a° .: .'rYLt; .:w(+'�'ti-•Jar _ ri ,. • - . - .. .. :. -_ -1X1-11B IT ,'Bu. . • - -. . ' B 1025 REC 01961821 04/05/84 10: 52 $15. 00 4/005 F 2105 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO B 1049 REC 01988615 11/15/84 12: 34 $18 . 00 4/006 F 1260 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 2 J 7 WWv - . , Ny J �� $6-10-075 53-4" Farr. ice` . • APC - CM►OguRN WARREN I 1� TRUEW1 / - tS . ..... ..111.n-..... ..111.n..... ..111.nv S. " -t0-o7S-t329-J" , ..e..-•- _t SEC. as MS 506'.16 \� T,3n. R.67 W.cr. J WELD CO, COLO. ,or AMOCO- CMAOSNRM WARREN o 1 Ms 1101 5t' 1R 4o-0'15-25-3" . --t6-10.0-15- 53-4" - * - ' 29 ;- - _ - -16-10- 075- 53- 4" ExT. AS - SulL-rS 311- 40 _ EL, 6" I-1ORIt. SLOPE TEE IN/ 9O" RT FOR 19-10- 075- 25-3" 4 Sac. En. / LN a ISO' ANp 32+40 A 01'04' Li- ._ _. 35+ OS p 39'40' RT .. • 38 4- 38 . •:a, 24.25'28" RT _42+ 24 :,.•'6,39'58'34', R T • - ' 02. E- .W C WR FNC a PROPERTY 1.-.•1,--7-1E RT 42'09'06"@ 656-Io'm Ftvc, Cosa, -4 6+ 60 6 41636'45"- L-r _ 4-1-4--.52 . SOUTH HtCH BANK _ _ - -- " 48+ 35-i C.L. Si-. VRMta CREEK 44 * 15 NORTH NIGM SANK 49 + 98 L 80"49' IR" LT 50 + 49 G ,26"07' Li- 55 + O6 G 01. 33'24" LT 62+ 04 A 17"16' 33" Lam' 681- 08 E-W 4WR FNC 4 PROPERTY LN, 91 RT 29.2$'30"@ 86,10' To FNc. COR. 68+ 90 .0 24. 07'16" RT 70+ 81 C.L. 4" S.B. L. RtsER w/ O.M.R. @ 82"O6' 33" LT Pou IR- ICI-075- 1329-3" 1 t5 LT 52'043' 34" dQ 171.1' To WELL • • EXHIBIT "C" B 1049 REC 01988615 11/15/84 12: 34 $18. 00 5/006 F 1261 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO FIELD Sooc 5643- P. 43 to 48 Panhandle 1G -10- 075 - 53 4" -Ext C_ W>_Lo co , ccLo- C� n1pDFtINFMYOINY CIO. 41S:P IENG. IDATEto-8-84]W.O. 37083 IRE/. • R5 7 jV 14-10 915-432-4' -16-10-015-26-6" 1 I a N - tP N I A-KURTZ 8-1 - N M•S. 8406 r0 I 1 1 r 14.10-015- 1301-4��� rD SEC. 20 - I i' . .--- + 20 - T WELL) Co, Cow. �NI i A- Sp1.kZER t FAM11.Y UNIT�Z I Y N5 11OSS tr: 1 \44-10-015-121-4" (rt../1 1 II .I -A-S&Ld1ER:, -iAPC-'KuRTz- 2 1 , 1+ gist.4,. . t`_ _ B TauEir1. a 4 C1q-10-015-313 3 I- ^" ' - Tr 14-10-015- 1301- 4" As - Bu1LTs 0 * OO - 6" TEE ow ExtsT. S.B.L. R1sett AsoAre. 52° 13'39" Li- FRON 0•M•R. @ STA. 34 +69 ow 14-1O-O-15- 432-4'1 O + 31.6 p 50.49' 18' R-r 1 + 86 L 45' RT 1 + 92 a 36'O2' 50" RT 3 + 86 A 38'46'34" L-r _ 5 + 14 a O736' 11" Lr 7 + 86 p 07.16' 54-" R-r- EXHIBIT "D" 10 + 31 NOQTM HIGH SANK • 10 +68 C.L. E-W bR .w (15' DEEP) 10 +97 SOUTH H1GN BPNK 11 + 84 Is 32'25'O2" Lr Is + O8 a 25'12' 11" R-r - 26 + 05 p 13'O1' 12" R-r 33+ 74. 5 c.t. 4" 5.B.L. R1sER w/ O.M. R. e78' 59' R7, 'The R-r 150' 14' @ 190.2' To Wets- .....-- B 1049 REC 01988615 11/15/84 12: 34 $18. 00 6/006 F 1262 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO FIELD Book. 5639- P. 22 TO 27 14-10-015- 1301 -4" Panhandle '11•1 E.LD Co. COLO. Eastern InPIPEUNECOMPANY OW. MSR EN 3. DATE1O-8-84lW.O. 36485 JREV. AY WAR cr_A1 r 1"=1r`nn1 nwn nn PANHANDLE EASTERN PIPE LINE COMPANY P,O. •O% 127 BRIGHTON, COLORADO 00601 1/30/76 Nick Sekich & Vera Sekich, Fred Sekich & Nick Sekich Jr. c/o Fred Sekich Rt. I, Box 274 Longmont, Colorado RE: Part of the North Half of Section 20, Township 3 North, Range 67 Test, Weld County, Colorado. Panhandle Eastern Pipe Line Company has a contract with Amoco Frnd„erinn Cos,pany to purchase the natural gas pro'uced by them on your property within the designated producing unit. The Oil/and Gas Lease provides that pipelines may be constructed to transport t'he natural gas across a portion of your property. It will not be necessary for you to execute a Right-of-Way Agreement. The route of the pipeline will be as near, as practical, to that shown on the plat attached hereto. A Panhandle Eastern representative will contact you for the purpose of settling crop damages within a reasonable time after completion of construction. _ c c ./ Right-of-Way Reptesentative Robert J. Clair I have personally hand delivered the original copy of this letter On January 1f) 1076 • tc' , .f _ _Ch. Right-of-Way Representative Robert J. Clair k OooK`7t1%dam —.2 NOV 21 1973'"'`Recorded at ?dock.- --M• Roc. NO 1625186 Ann seem.,bands a I (,1.1 srom aeaoldod w $ ----slaw A m MAR 1 u 19th °� 622 gm No 1543624 Ann,sear,Patera: N .IM..—(Ierodueere) h ..I 3 r / 1s. Ken.Okla.&Colo. 1957 C OIL AIVL tstta-nnrevr.r.- ---•- --- THIS AGREEMENT, laws tats this the_12th a,,, ,,February _^I,70 n,.wn_Nick Sekich and Vera Sekich• husband and wife1 Fred Sekich, a married man) Nick Sekich, Jr., a married man _ Route 1, Box 27k, Longmont, Colorado heroin new tenor. ' we_T__3.3soa. 318 Pattertio pld_g,-`Denver. Colorado hereinafter ones lessee. sees Minns: I The, lessor. for and in consideration or the.0 r Ten & More Dollars m hand halo end at tut sereeaeu and aimlesn,herelnanm contained (Js. to be performed by me noes bas this day Created. leased. and m end by these presents one hereby 'rant, lease,an let dmnep hots the i tan the therein tsar described i einaiter provided.lerntheraurprse of ertlpinglenee oioeltol pi ophy,ttal and with e'npleretery gel In ludlen all drilling.and a the°drlland. 11ln rte towered and operating for presents and mine n of the oil, ag. r slnaheae mtnse gasoline. d alI other raw a their re,pntlee mntltuwt nano jw en or n r r m'roads. laying pipe lines,bulwm tanks. atorinne en. buiamgt power station.lelepn a tines and outer na thresh n .re eQ convenient Mr the economies, operation at ell Ian on, or conjointly with neighboring lands. to produce. w take are of.and man ala.tun an of such � nuhstannt and for housing and bearding employees. sold tract of land with y r rnmmnarr rights therein nine Wasted on the County of—__ rk — el'1_ mine „_Colorado and dese.Isw as follows: IA SEE DESCRIPTION RIDER. EXHIBIT "1A". ATTACHED HERETO ClrA AND APART REREOF ' NI NI • in • o EXHIBIT "A" 0 0 Township 3 North, Range 67 West, 6th P.M. Section 17: St, NW} except that part conveyed by deed and recorded in C.; Book 1114 at Page 364, Weld County Records. l_/S Section 181 SE} x 4%e%I 1 Section 191 Part of the NE} described in Book 1021 at Page 193 except• parcels conveyed in Book 10.?1 at Pages-SOP and 694. Section 201 Part of the N} described in Book 1021 at Pages Wand 365 ,A•A. of Weld County Records. , " 17.S, containing a total of 918 acres, more or less. • SIGNED FOR IDENTIFICATION: • - W/41:..."--- - .. • Vera Sekich � .teli Fred Sekich a Nick Sekich, Jr. 100'9 - - '6 98ISZ9Io o f LL 0 0 0 £1•-I2•AON • N. Tnla Nu,and all 1Y ----seam h th each Maser n. Caned above sea ...swainsand or n whether an nil eatoM n. and be emdne or eh of the pe se lM assn this Yate. eerawNn 1 wIn rpana, n to hoe the grate effect as the original. ti OI t the athp sorties herein n.aM Y Y.q.. {nY lease m.1 n 4(nw • • • • • ,,oc 622• `703 1'25186 15496243-a m Peelle SIT , Township Tmc stnye 19 8 I. It is agreed that this 4r'Man remain in NY Wee tare Oren el (5) and p^IYebt mq more or lam or gat or either of{Mq,Y produced Irma said land le!from lands with which land le p Year'lids this Oalf, ell u b^[ thereafter a sal 3. In n Iunlbn of be nmlbLLNi the pnmlw a being developed perms, To oars to the mlea et Now M of mµ,b the pip aw wonants 11 e to which lease produced and saved Item . edit piney may Maned W Wells. the equal ona..g[ht" I%I part of all XI I. The Lowe shall monthly Pay Uwe as royalty on gas markets from ma well where gee on1N found,one-eighth tit,of the proceeds If mid al the well,or It muter'by lean or:the Memel prmws,then wfyynt"1 NI of"s market value a the well TIN Woes Mall pay the lessor: w One-eighth i of pr O by M.lease from the sly b[hesd gas. produced Mom D0^e at hI mailing msrkst price of the" non pa. produced Irom oil well end obi m I["b iffl theof be for,al Promises r mouth°I the sw or waneremise y be lessee for purposes other than te development and d y ports shall l the r•ilege at hM`n Yrpw n connacl the n using to nun any gas.wall m MW land for stoves Irene.lights operation :negate 4a principal dwelling located 50have the privilege his hi. and M Ie s thereto. be lessee l pmNm by a r his o. Where Re from a well or wens,upan4 Of producing gas only,Y not cold or used be a NMb of one year. is N m pay or tender as•yay,amou such yeargraph number w the pYY rAtµ as provided in praRaDn lb Mraol pyapb anomaly on be amlventrY date of this Nam lµbwbr the end of each corn yea^numbered m a faa la nµ sold or seed,and.WIN mild royalty is M paid Or tendered this lease shall be held as e ersud°.properly Under pap- a. rr operations for the drilling of a well for on or red are not Mm . eA°n atld land on or blare the 12th d o:°' this team bat termbae b both panty. lee {M Wises Mall or berore laid day February r .li First National Longmont, Colorado pay m tender `° `°' 'tee 'r.Which lessor's credit I10 the coolers are be Ywr.Win and Man epq^ue the d.PNl{wor µr t°Mew°re. hl o awn.ran° its ' r of any and n.°m payable under{ell Yoe nnand t M1pp`of chip in said land or In be°n and gas or b the rentals b accrue a e meesnthe bon Of Nine tHundred Eighteen and sin ilk.V reil endcover the privilege of deferring M. m 1 of operations ihr drilling for a Period of w• lean ra shall p- pymnts'or under.the NMMenee entage of operations for awls. mil furter M deferred b•We period'ueewyey, t.aa r In 'Ike'I andMa UN Check or draft of Ywe or any•nlmu that lb mailed or delivered on or before the rental serf,dale.either direct Is Payments pt Madera l untie wee w by cent and it is Yndf•µble and .Reed that be b 'lemllp fro fats heroin. the down Payment.Covers ace only the privilege n olnf conferred. said ael,when said first• to la payable as aforesaid, r, also the WNW"option of'steadier ban period as brewle and eM.May at any lime ewer t and deliver b Moser. place of emend, release or'einem M.ring mis p0 the o any and on other l M Lessee mad thereby mn.neer Ole lean as to such portion or n abet end be retires of all obligations 00 to the ' n fantod abs.. described prtmlMuW payable Mtewder mil be Fronted in the preterite.. that the ,wage covered hnA^is railroad by said release or•µur'n's. and thereafter the rental; t Should the (laµ well drilled on the above debrlbad land be e dry hole.then,and In that ant. II d well is not within twelve the from etplr Lion of the last rental parsed tSr which rentµ has boon paid, this lease shall terminal. as to bath pantie said land °oute the levee before the months shall amount and provided, And t is Re that upon the twelveipayment the f l.. of in the e as per•Mg the payment°f rentals and the effect thereof Man continua in force Mats ough' above nl o.the M.n in Um rental paay though there had been no Interruption In{pa payment'.Ph [aelnmi the T. If said lever owns a less intermit in tea abort dewlMd land than the entire and undivided IM simple Ovate{herein.then Mm royalties d fantail herein provided shall l be papaw the M ame only in the proportion which his inters,{ ban to the whole and undivided lee. However. such mintµ shall be In. creased the nest succeeding rental anniversary after any reversion occurs to cover the interest so na ha per [. TTe en re .navenave m.neatlaw use.We of is gm,al and sins plowfronddepth win land for ha operationscaused Mumma.iseMt water from t the walla al ton he 4r'•, When required ee•,be nearer than bury its pled linhome or b e onit end shall pay far damage Written n co d by its a lessor. Le Rost e M mid I No well urine hearths l i of.Wet M lea MYw o•Ml n [[le Into,.. without •Hun consent h the lewd Lean shall Mrl the right any tithe me during. r {n remove all casing.low b remove machinery. fixture. ^mwe asIbb premises. Including ons b draw a dcontour lawbear all cabM o and other structuresreasonable placed w producing II. M restate the premiss'to their original u'1 aten Upon be completion of any teal n a dry bola ;pop the tpaaldowlAt of sell ROY bid!n as practicable and to remove n installations within awna4 time10 . any b the heirs.Ifhe astute Of either paml Mate is a lenpspand the Privilege oI widening I but no `n whole or In part Y.WelµY atiewed 1,lb.Meenanla Mwf MW ewnd due under this lease shall executors,bnding on the Mew untilIt"w Wen IubYhed with either the ore of lalnal recorded inst In the land orrument f on a mor s eaunt copy thereof or a wiled spy of the fl of any deceased and of the probate thereof. or carolled copy of the rs ow duly any and of sminµtrabr for the estate of any dwaw n, hlcMeer Is pproprbN, together with all o ilnal n ded IpmfumM'lsc of eOYyance 0ri°'duuly enti- tled wider before pies therm: y b allowing plµ, Main of{Ulm back to lessor to the lull Interest claimed.and all advance payments of rentals de ham.- der bfore receipt of wed documents shah be binding on any dint u mdlreet wlen.e, grantee. devisee, dmblstrator. exectar. or hair of Nam.It it°I any such is s hereby agreed that In tea event this tom shall b aulened as to a part Or N to pans of the above described.land end the holder of or parts shell main defroll in t°vn a the payment of tthe propa'llonate part of the rent due from him or lhsm, ch default sail not^pe owner nt. t° Cella or affect this lease I^sofo f . upon which the Iww er any enlsnn hereof Mall mate du.payment Of Mid dl Nlr. whole°r Law aspherebyla n.warrantsr and agrees b defend the µ. b therland ^reed describedwinit agrees that b, Nun,at n °in v,may pay r and ye b part wily tun,mortgagee, f soar liens sing. .,..! assessed on or qu^1t the,,Ilya etotnw lands wee, l event pi it ee, such saber It m M min to the right"Of any er n heroin Unreal and May reimburse ILWI by aDDlYlpg to lea d4Mute el any eaten m°ryym.tali Or other IYe, any royalty or npu4 accruing hereunder.nM O: NoltlbRanding anything b this team eentled to the , It le*wens',agreed that 1 lame shall menu operation,for denting at any tie, hile this lease Is b force. Ws Mw Map main In few all its terms shall erotism. s land as Ouch Operations are troweled and, if production nuts therefrom,then at long u poduction moths,. If within the primary tom of this Yw.peoduamp on the leased premien Shall Mw from any caw.NW loam Shall net terminate provided opt- rations for the droll.,m a roll MY Of rentals in manner and amount horologic..." Wean th•neat ratub rental paying inn: or, provided N M cease f1 °roelpro, If. alterthe laa open of t"a primary rs term of this seam.w•Nunlhi on the INN day umes the payment n such any cell this lease Mtn not terminate dui It. pr wet. eNlaaem 1°m a ebb as prod shall uuµl°n and this lease shall•main b three dune(IM prwcutbn�ef such pmµlma and. If prMumbe'Im1oY1N IMreh°L,°{protyu elope y' production continue".• obtained 'wee la heresy expressly Ranee the right and privilegeprivilegebnleb LomaLomay , els@ al any time either before or sitar Rwpµlon nu wp pan Ibis wmlw Or thy PromiseePromiseeon or s Ildats herewith, to°o^w11date the M leasehold mew meats by the nmuµ°n end delivery of this leaµ. each part pans thereof. with any other a leasehold setae or!males to form one m gas operating units of nu le,seed[pWealmetely w acres operating wall or Unite le so crested by throes. LLubr arms to emoW tin shall receive out of IM ass production from each such unit such portion eft the awes royally the number of acres out f Ibis lone plated in such unit ban to the total number of awn Included In such suit. The tom. Mresne and ompea.M of a ammmt a°aniinued monitionproduction of gal from an existing wel on of the construed an .considered end p pry such or pl•Hen or f all.or the continued operation of, or production°of°eg n °Nm a well°ion cells Shall all be delay flan,'with operating unit: provided, thou the provisions of th:s araaph shall not enact the payment or no .p yment al snail be gems respect to portions of this premises not bµsed ban unit. but this Inn as to such portions of Nils premises not Included in unit constitute a deemed 12 be p promote Wr particularima n Um a event portions of the boon dewrlbd lands ore Included s Rat nits.each portion included shall Ynstµ ha 1p. nraanons of and lessor under s ironer or rrrr owners of lea land.twat-iota separate law Man be solely a titled to the benefit.of son be 1100 land herein Mewl is situated en Inaleum.nt identiying an rla°r teast Lessee shall he conn in MIbatlptd1na and record In M.convye^u fetordt of the county In which 14 Tula law and all Its terms. elandlOons and µl.uWlent Mail NN to, and be bindle,on each of the parties who signs this 4w. regardless 1 whether such laser is p in NrpwY.each to newel 'ante regardless s whether It Is rowed by any of the other parties herein named as Inure This lawn Y M Wiled saw e u mylpel. • • ✓t • / `(1 IN W[SNm6 / tCoday.pd 1m• fyµ abn mlµrc y ( � wiww: Tr �] �A/-y��_ y��/!/ XS'e/_�'6p/ Nio k h, Jr,! VeraEeklch i m:w;4d e.::trn to �1 // • {y /�t I IL.a 'l:CT la'I COMPANY ✓ rig s. .. .Jtt1,`t t"),1:-. .."' .OS' . p • Mine t,T rq � ': y,.. r 1,4 Aid a Q .u. a. 1 A nal , aassaa.C►rar..a C OIL AND GAS LEASE. • -- - , r • ••y I ta a:a .a Celt UP t • ..,TM/*ST.ass.r urea. 12th rJSta'as'7 r_ I > _ Shoos link Saldah and Vera Valets. hestoad and wife',Prod Sokieh. • anrried moot • • • -*Pak $*talc:it a tarried man •v. . I _ Into 1, BC iya. Longmont, Colorado rrr•ar rr. \k ( va? 1.'ha. llB rattansn Bld€.. leave. Colaado .- -+..r....On..a • PM Sr,r r r rr..r.t r r..an& Me, .er r US nr r at IS o�+•tr••r.=nisi . ♦•V rrr.�Wr bra,—r in rl.r a. —.-4—r�r , �.rr•�+ ,..J'i:. 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' Mick Ssklch, Jr. 3 t J . b • _ •• \k sr I I eft + _ • 'l . } _ • _ 0 • • j' •- .:AR:"• 1f1. �I ..-I - .rte m Ttaeb err . — in W swear. 915 ...,r..a sew ' M.. (5) lr..: I. fYges Ur—s.s We raer a Orwrrr lures Wr OM --y- -nepred t •' r pa OP Fee w IF Y FOere Was W W e ea beet'el. .W W W Y.tFeebYrr w W OFF .^ eebr roe or r arYr G ' .;l •� L r wrYww.r • 1.11 r W Fear W W Yee err W M 1.c . To Yew r Y.was w brier.Ow r T.r W OF r.r .W Mr. sr mall •Y weds. We eaY sere• dal Fen d .L •e • I err Wr.w Fa W ere+r.:a;. L tY IO.—eraVat Ir•rr_yr or rater ter or.a wry r rQ•Mort War ay w sir Yams Q M wW O ',. I wed or Q Frei fit_Ws i bred war•gar f.M.11M r r Free ewes w W•a n.!ma.W M Y•err: oil rswW t a.. rife Far safer per Fe Qtr We ale of Freed or wa.r•Ma gyp a sr;OM fir t•,r Js resew w IP=or w i well. erwrw w W Flows•alertFrr IF FM• line. /Wet Fa at a well re sew w Yew wt W Yes• FF. 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Ore Ft abr tar•r bear Ma •may as r err r terra F r y r p lw cn wee. w• caned ar. r prewJY ae scree ter F r ase r peter pet .ream -• •• — • Q.beer W p t p In at Wee IF Fedeb,at S.anal prowler ran o•a br oar M Ibis Fe ear M Firs Fwtad es.- . Needed be W err r•.r ran be OrYe Wire w d r r a dent easel errr Me:w.peer.lessee Yrre at Maisel W parer at . .wstaa r W reset W err brrbert'nerds. t Yr W oayQFba r W SW IF r rbes rasa perdla a the Mrs Fray gall sea far n Meet YY In Ft M SFr parer Ire ea.'Fe4rd r rterty 5' t es. Fr dr ter ease Ls are • �reo W Ft Yea FM Isrb In One—S W AWlrr or OFF' bee. U pads la Fete Ibeeb'ow. .M as rat o Feder • For U. 10 be brats nrt.rb parr the rW W FT.IYF ..W Lore ate errde d op e.e *rot as. r Fe pr5Fnla W Wm MWw der re pare a art pars Farr beteabl le rowel.W W WOW Fie For a lee netale tad drawl r We leer. - re pennons MN Used el.nay rbr re Warr der,w IN F Y Fa snap bee pare Sy Sc—Y war I'e.abaWy W gwa a.• r es.ss.awy we.a ern r r Erse Ise LMe' 5.5 arms r peal W rN Fsae r Sc W F.Frahm Ma el.weft see err I - - ___ gnaw Sc the or.g'kf w the Farr r t fe or r IF bon pbo.O Y ate r e brrre be W Frye rear Sc area Ford r ear MI Tee ea- • arere- r eapasa Sc 5 Oar abs.eacrr rarer r$s Sc ate ads ells 4 gal a blow sorra r ed Meader ma ran be mere sod seer a W w arWo r•re.r W arYare Farted `1 w '.weeded r O•• bed re o rte had r1 em Sc re ate gar re wrarbrt or saY1y sale; penal W W MIFF r lbr Ylnela• sae w Fat W Fri r Frans r far tars welt Feet a pert r able plarllew sot FRS a. ORAL r gab Far r Y or ena Sc f]Y prim eel Fees r • rk. ' Wt be bad b.be •Mast IF. Pre s, SUS a.W-Wes mania ban. are waded Y err Fa. Y errs r rawer tea Ir•,a. • -,arty eC _'• ••r a= r_uirp w:W tats sea eft pans Fa rY b-fl ear be W 1 s5.et sad be W rbaer�Y MaFar Fel air torne•rc a Serra Felq'br SFr bee FP re rraOow-W le A•weave re Y YF ega.e/O•F FOOtF i1 W heal Y r�-T i Al TIs Iroe W M as Sr SFr W Fr''Sr sae reel M W be bred a air r r parr who sae lab leer. narbar e I Raba use Fe r nerd arro W creaser Fir II Y bred a al Sc the abet Mlses Ones Fier a Yarn Tr leer ray be agar r•eeOawwlt eft Y Ire W gar effa a W real • y ..• r•'7 Q YTIIIMIS r re gar bar Nee erect ( . 10 L • } f s r stn S.kicb . . .. , oI N •°..24 . O STATE CT Cassd° a. ACKNOWLEDGMENT FOR INDIVIDUAL(6a.Obls..20.4.) - - . 14th a ,� •I (� ?J.t !% s -. 11.6-21 p.n.w....D7 appeal Mali 1t.AAw6 asry �� t ...•,.w•1ad saw Mth t�N1 Jw_ . I M: S y • •i.. i tin •�` 'to w the Medal pana.Lww arant.d the Slide fargeY, he r • .. _. } Jt 1•110snag ♦LS. tea and ' ee sat fail/Jima limenta set ay bead pad1 Jamey 11, 197b `� , / My .. ..: a is ►SSW. r y STATE Of 1 a ACKNOWLEDGMENT FOR INDIVIDUAL(Ewe,Olds.d CaL) I COUNTY OF i) . Bela as,W medersIgssd,a Notary Public,within sad fat said catty ad state.a Os day of 1d—.gorsaaD7 appeared a• t • } .S to r personally tawa I.be W Medal p.rset`wta asseted Width'.ad fenple,Wtay.at and eckae.Ie d to r• • wt so.t.d the same se-------free ad.el act sad deed fa the sepses mess asepsest► rein sat forth. IN WITNESS WHEREOF.than baste sat ay bad sad MOWS sal W dey.ad yen last above writtoe. h ' My naalesten aryl •' I. Notary Pu66s ••; r STATE OY �• as AC[NOWLLDCMLNT FOR CORPORATION COUNTT OF 111111 — O.t►la —8.7 0[_ A.D..It_,before as to.nMreig.ed,s Haar?Public _ • .- Y sad fee W meaty sad state.f.mdM y append • — -- • ' r-... to penally Sow n wn to be the e si read the pesos w name of W thereof reof te the what*w and feengatag Wm so __-- - - rt.t if Preoldsat ad aebwidis b d we tat as u w-natal the se f s sad a eeltary set and deed,sad s the free sad sad telemetry act deed of said corporation,for the ea sad peryeao terra at forty f alp .— Gina wader my bend a sal the sad yea r lilt above written. ) - ` My.oanvak.apt - W Notary Pub . - II • WI I s _� 3 4 qi 1. I 1 ? i. 3lit '�ai Yj ' + ei 0 r 2 i ip 1' ifj „i: _ 0 • • ._. , 1 Ihp i —\ ,$) srl K . . NOTE: When signature b wrk hi Kara,ad mark to Ire witnessed sa�wlMRrwat 67 mirt is regular Kansas acknowledgment.t Most oat person and dine aekow4d{ed. 7w • ST 'Cl ATE OF_ •se. ACKNOWLEDGMENT FOR INDIVIDUAL(Fans.,Olds,sad GIe-) • COUNTY OF Bete r,the adenlgoed,a Notary Public,within and for said county and state,a this . day it 1p^personally appeared ad to we penally known he be the Identical pensn_wbe executed W within and foregoing Inserumeet and acknowledged to r Wt sve tad W same as-- —free and voluntary act and dad for the uses and puree. Saran set forth. IN WITNESS WHEREOF,Than kenab ant M Sand and a sal the day and year lest abet mattes My oamWYn expires . Naar!Public- . .. I , •• O �. �'. 718 • . ., ... Rampdd Pt 1L_„ o•ckd1.1.____.m________JUL 1 1974 _- . . O „ p.ndwT..a Mill .,—d<la..ae it,,, Np. 163875 S. l.. fleeting. it., Rweader s 0IL, GAS AND MINERAL LEASE A-1 -- +_. __. — —_ �— — • •-J THIS Aonmwr.lade Ida _ ."._ 23rd -..._ .au et Hay • la 74..between • • vs , Albert D...Xurtz_ _ • . .. noon. .- _..__ ___._. noon__. Route #2, _Sox 55,.Platteville-Colorado , .. .. _ _ +'.. - . ' :,' .. ., [„ Lain.ienllne,one er rwnl,and Asl000,Production Company _ - _ n oo n. . _ - lone,.wmgwnu: . . Ton and Nore Dollars I. ]one.In rnn.lanalon.1 .' -.. noon ',n ,s 10.00 In hand paid.of the m herein presided.and of the agreement of lane herein contained hereby grants leases and lets luaw�n Lew* ter thew of Inv.ti tlN.lapbrl R p IIng.drilling and mining for and producing ell other hydrocarbons and vi`thont tnrtlon n aN mie 4 n1 the,minerals heet whether similar or dissimilar I.Own* cularly specified`herein lain pipe lines. • C. building lama• power nanera telephone hoot and ether iwtivlw thereon produce.nee.sake ears rd.treat.transport and own aid proF ts ore, tp houYng Ill employ...W!following described land k.._._ -Welt...1_ .. _. Grunt].Colorado.to-wlc ri • a; TOWNSHIP 3 NORTH,_RANGE 67 WEST, 6th P.N. POI Section 20i All that part of be East Half (E/2) lying South and East of the County Road. ed C, _y Rawpnnb noon n oo n..2mU[Aaw -- _. - itanc noon.. _ In addition to Inge land alone de cribed tenor hereby m 1 and 1••s e,Uanely units Lessee in the same extentIf peeul pig ri described herein e land.owned claimed by w which a contiguous in ter Conn port of he mama above p•etieu. n lar1 eluding MI other hytne•phona and all Ter minerals underlying{bikes, n, d m. n ds. lnena and riglit.t..way 2hic inverse ' • • 0 s ad nth of• id lands.Tar rental pennon purposes.the land included within Min lease shall be deemed to lain rte re macres wI...city actually compete. reIe. t�19 .Pre if ram Feb o 1 11R "" ]. pub11rel t.the.m.. hloM Tonne mine..thin woe, I Iem n t rrima.r si tea..lore Iherealler a m0.Rea nthe.:.dV nbm.er ntnnonmlr.nl la pcodured(rem to pond n.1-011�i�`t:'T S n kiln mall•,„,a rn ur1.� • thereon ] The royalties to M petit by lessee•rei OI on all. -eighth of that ynaesced and saved from said land, the wine to to delivered al the wells le the credit of Inver Min the Mite reW which heMewells he connected. . may from time in time purchase any royally 11 In . possession.paying the market print Mender prevailing for the field where pd on o dale of',urethan. obi on [+. including nnRM+d gin o v other varbm indolence,pmdueed limn saki lend and mid trued off the premises or in the manubelute of gasoline be r other products then prom the market value at 1M well of tenth of the Rum mid or se provided that on gas*old•t the write the rs]weshyll shall nne eighth of the ammmt " tea from such ale:eel all a other Tense, Intl and marketed.. .tenth rt in kind of Value al the. 11 or mine,at Lessee's s ele:twn,except ' that on sulfur the royalty shall be rata tents lab per lord ton.Leen Nall have free of ell,gas, l wend and Iwo r fmm bald well tempt water Imm Lnmit w Ili.for ell operaions hereunder, M the royally oil M gap shall be computed idler deducting an 1f used. If a well capable of producing gas in paying anlmes is mpternl on the above described land and it shut In, p s war- hall Inge In meat fora period ofone same year from the date• well shut m. Lessee any assignee per the dale a the aver presorted herein for roe W> ttender of delay retsina.pay or tender to Leone as royalty,on or before one year from the date rush well Is shut In,the sum of epayment or tenders 1f Stith payment ass under Is trade.this lease shallcontinue b.effect loo gunner period of year.In like manner and upon like WYmenn or enders annths made on - },f / or before each nations r of the nul•ln dale of such well. la d a.Nall continue In Ellen for successive periods of twelve 121 month.each e rental 1. a operations for drilling are commenced said Ind as hereinafter provided.Or n er belen fns year Imm inhale[Ore leaf Wh then terminate as le bath parties.unless on or before such annlvenary date Leine shall pay or tender to beater or w the M" 1 Lessorft " First.National lank of Longmont, Colorado tenon,bank I its e,mr ree memorua ty g 1C 1975 and shall continue as the depository for all rentals payable hereunder reganlices of changes in ownership of mid tar.. the rentals el her by conveyance or pr the duo,or incapacity essorn of l the of Two Hundred .Thirty Nine and No/100— ' — Den.,. n 239e 00 L therein called rental,.which malt cover the privilege of deferring mm meneemenl of ope rations Mr drilling far a tenor of Iwelye Wumanner W ill menthe.In o and open like ) or lenders annuaty the em Inmn min of operation.for defiling may be under deferred r*meets'''.fo *meets'''.periods of twelve 112 1 N I each during the primary Tenn.The payment or lender of rental herein referred in may be nude in fuerency• draft or check at the option Lessee. et the lee nd o nw the depositing Of suet nue >.draft or check in any pool office properly addressed Lessor.is the Le or l Week,ern beer,or ,ber,the rental WY ng date.shall be deemed payment as Mrtm provided.If ouch bank any bank sh.sld tail liquidate or l e succeeded by anther barb..for an fall or refuse eeept rental.leswf shah not e ned in deault ffarffa lure to nwe such Wymem or lender . br rental until*MIT dal ay,.h<r��fa.r min deliver a to •proper recordable ms mment,naming another bank n agent in receive men psu i • The dean cash pe t I.naidentwn'or this lease neding to Its fpm t and shall not se allocated tea mere rental nr a period - -• menu ew any time n and deliver In Lessor e• the depesuen above named o:place of rnn a lease or r< inn•covering any portion o ,, pnnwn may the above described premises end thereby surrender this lease in irh portion or peortnns and be relieved of all nhnga min s In the eafe surrendered and thereafter the rentals VsYable hereunder shall be reduced in the pmM1trcols that the ecrnRe covered hereby is reduced by Raid release or releaser ' If Lessee e'o records r before y rent I dale matte a I r a fid! ttempt w ay er dep 11 rental to aa Lesser entitled herein under th s lease — ' addng o LeY!!s set or Lessor who rim to 1, a payment or deposit.has given Lewee notice.re accordance with the terms n1 • Ihrs lease hereinafter n1 form.al his right in receive ta1.and1 if ouch payment or deyw shall be do. 1O in any regard whether depmei.In the .15.11 oe MPtwrr,paid In persons other than the parted entitled hreo s shown by f tine re rds, in an incorrect mount, or otherwise,, Leave Nell unconditionally e ,, ens to pry n such ammothe rental properly parable fur he rental period involved.but his lease mall be maintained In a w ' the rot:manner as w awe.erroneous tenth!W awn nr ite had pre,, mpeh made,provided that he erroneous rental payment or dentists heeeceet. reeled within a areys alter receipt by Lawn T written noun from wen Lenore such error aemmpaniea by any documents and other nine--n ! Ian lo enable lean a make on WymenL ' S. ehfuld a it drilled nn the Manse described land during the either printery'term blare nlucnnn 1 obtained he,n dry hole,or should roduction L be obtained p during the primacy term are thereafter cease sawn and or event.if operations for drilling an admennal well a. not commenced or -_ opemtiOns for ...working an old sea. not pursued en said land a or efore he first rental paring date t saeeen nuthe cessationh r.ytof 1oweunn drilling nR .ro he on said well of wens,then this lase shall terminate unless Lessee en err below i said lainasshall resume he r.ro ant f rental. • coupon m 'n of the W>meo1 i renw.,ere •rowrneR the paymnt of taro shall continue In force just as though there rt s been n inter .see n apt de rental .menu. If ducted the last of the primary term and rrmr to the r+prven of eti gat,or other nrdrocarbms tin said land Lessee dmutlafa( :•r'' mw thereon a .Iwr year em to oil.ga..or other cord..-•. •: _ production hereof awned a .f dr of or last sear of.le term from an fa, . rental Wtroni r J......tot nnductin nren:aillfy in order inn keep the 'ys • 'J wwell in remarking an Toe old remainder ll. is leawhfneverr nevertheless Tall'of continue expiration t fuece as long primary drilling or re Isrkingucyheralg operations s conrtinsre.orlIf.aafter the l• ' n• 'Ira1Wn of Oft pumary term,pndunum Mrhhis lease Yell cea.e,Ions leaf nevertheless dull confirm.fIii Inter if drilling or s reworking n�rmam d within sixty1601 days after o m..IM of prod Mnn: 1f prredwtmn is restored o additional production Is dlarnvered a sit n , any • arch drilling or reworkin mestln. produced without r. n 1 hat.sixty Itol rdn.r thi.lea.shalll cn ue a lonngg Inreafrer a l • og or le,(nY operations for rmm�fdun silty uIp.ad+ett long davddillena drilling or rtwrrk.ng operations.n +d without n Ilnn nf inch tlrtll. - a.. , S.remarking lessee i its manor Is hereby teen the riht and powerto pool ay combine ion land covered br Ind,lee t •n• Portion theinti + -Ja-a '• and` .either+1 them,with any other land.lease or leases when in Lessees judgment 1 is necessary or advisable ii. m. . 'n Order i es 1 1 • ' 'p • awlta a n w. said premises. o prmlinl o be into a well unit r units nil exceeding forty tie, rte Phil an ahead.teleran..u1 len pec _ _ i1e•: of lorry iwf e. Mr n and t aewding us mulched d Intl)rafOt+ert pin an ass calf loiranee alt > yeesel prescribed sit hundred . a -�+ p and forty Blot .for gas mustn't Mal lar[ef to may N created to conform any sparing or well unit pattern Mat may be t 1 m I mental authorities tit fur metmn.leaf.may pool combine acreage covered by this lease.or any pnntn 1herML above p dad,as t leer,a • an i1,ea formed need m t conform In Ore area with the unitor units Into which the lease )eoled of eomblesd as! waiherfstratum m siesta.and w nits neon 1 norm s to area with gad units.The ing n one r Instantn is not exhaust the rights - t - ' I ,- eel the Low hereunder lo pool this lease or portion thereof Into toner units.I.ee.ee shall a le in writing and place of record an instrument sat Inlru. ' / mento identifying and deser brew w noohd acreage.The entire acreage se fooled Into•unit shall be Ien1N for all purpose.tempi the payment of -a nItin at 1 were included in this Ilia,and drilling or reworking operations thereon Or production of oil ep gas therefrom,or the completion thereon • _._:L.�w-� well as•Mut'ln gas lt,dull be ewuidered Ion all waponv al the payment e1 "him as If such peraiens were n or • h Production , wen t nInert or such completion were on the land emend byNI.lease.x whether or t the well Cror wen.be located an the premises t covered by nu lease In lieu of 1M royalties elsewhere heroin ermined.Leaner shall one from•unit so formed.only such portion el the royalty stipulated herein as the annum of his servege plate in the Tat or his royaltyInterest therein bean to ton total pooled In the particular unit Involved.S.auld any u en as Imes or o Illy nr•.ww hereunder.trot In Hen than the x numl.er el min•Wrttnoen apeelllM,Then Lessee nlat[edau bit.Ih rte,Hier.-wnerner' „- nyn obtained unit.enlarge douch unit by s adding addillenal ge thereto,but the the • content herewn minified. In the misting it la eninged.Dane shill• ute and Plan of record rd a rylemental dKna.. en of rrr nital hen IdentiVl t,Sod dewcrip `the land addedto the exuding still provided. Mal II I such supplemental declaration•of unitization is m filed until slier production obis. ed r the unit asoriginally ,then and such event he supplemental declaration of unitization shall r • - nd effective until the lint day of ton calear month na following the ingatemf,yIn the aence of production lessee may :efminw any unitised area by filing of mad notice of termination. pigt letlng into shalt have the lh right mama's*.pool roman.alt er any part of the above described lees with other lands m he tame genera% a evaporative or unit of development or operation approved by any pnvenstetenlel sonority and. I time is u with like approval.f..... to modify change terminal any truth plan aafement and.In such rend.the terms.n.ndlnns.and Provisions of this less shall be ' deemed modified to ce Inem to tn.tam.eondawn. nd suchprovisions al red mote,mMen Sror unit of derelniewni or and-d, r' ' iii IMilariy,all drilling and dealOprwttt aeyulrementa of this lease.express of implied.shall kr a t non byMmylun[e with the drilling and development -- requirMwnt of such plan or wernment,and ms lease Mall t terminate or tapir.during the life of h plan r s[rrensenl. In Me event %hat said abs..described lands or any pert Meeenf. Mall hematites he operated under any such tornwraiwe or unit plan of develnpnwni a operation whereby R IM r.dunl,n IMrtlram w atweated b wffmml Wnlwu N IM Yn levered by urtl plan.Then the prodwldM albsned lu money particular bwl el lane aNlp Ise Ilse w 1 carouti `the nyY1M u tr MM hemnder la Lewer,be re[arded a hoeing peen produtN Irene Wnkular:/xl al 4nd Ito which It la allocated and not le ether trot of land; and the royalty payments le se mole hereunder to lever shall be beset upon V oductin qj ad alienated.Laser by any talll�U OentratW the attei upon rownlof cooperative Linen. unit plan of development or eperatlon adopted by Lamm and a lea!!shell ham the matt atbany Ilene without Lames consent he wrreMer all er any portion of the leach premises and be relieved of _ _ 11 W1a.IMn as to the mina.oamlyelea Uan awl have the flat ad Wry oaf during w Idler IM etNnllan of OM mil is amen al properly _• . and axiom plated by leave n old land.Including and right la draw and tenon all easin When epulM by . Lean will bury •all PIPS Levers beloowenafdtnaarrY plow dept,and no well shall be drilled within two hundred dt feet of any reeiewe ism sale land without , I ' • Levers o W lea!!. Lace armn he peweyttl My to the.mimic thereof ear asWta to raps. er Imm�oe.wnt.. caused by ore resulting hunt sal Lessor shall have the privilege at his one risk and expense of using gas from any .e -gas well on said land for stoves and inside lights in the principle dwelling located ton the - , .'lakoed premises by making his ern connections thereto. L- G/P/89 ' • 18 • 4,(4' 1� 1s39ls'J • • F r AYer ruts lwwrrr tai be rr.d r�}a�e Y M t b=lonee host YII Y ar ` the "Mkt d rr att.Ivrww.M w Ar!tl lIF�Y1aI.� I �caV aL gee n 14tereet eA M Leff a- I�ar Ia.rra N Oita d Ler.11e+rte r b..aieeiflir ar r eq srreea t r IGev.ww+M r tribal ropy eta oaaie�svwra W rwr�rwwlrlp�l al.rrr roast W . w SWUM r Wwraser Y nr r d tee reeM W Mw w Y a wee FrCrry w W Yew M raYY WeMr�wwMrr dNl be prrlr wms�_M _ a. el�ryy •..• r.La eLL mows Y Cw rote roe Meet In whole winner rY .eWrr In ret M1Mrl1 bhp l werf v rYWIM eeM1OMI Per tam e�•� yy ee meek} .O S be ateat eye�litEmall. y- rte eeY M niYe�MrrPyW smw��M b t _ y•r.Tiar ~YyMr��wryr ryyyritl Odee�rle r We'errr welt r Wei et the Flreeetnestin a lane wlw imams I. ebleb reMYL brae t M w M Wa Yee ter. w rase Wsetl ih�V Fr r Y►; eY M/e stet VW r- Yie NLIIM. beer rYY the ,but ev�M rlrl ronllnr `re' r.. —.mad ee so or r Melrre VW le ���r elOni�Mwreel r as such P NrrM mnllnarII.Leasewit vermin r WAIF el.alao.so w rwwW��Yr1ealtr)wrMynME leg. y_e�� rlr. I_y�le�_ elFleq� _ • a Ny�n W W-then W waiYe elrllFre Mall W Iyrise eel n�NY bebt YM 1aeeltFYul1 All of the erer,el.a.r 1W low shell Ire Y M bath r and b.WSW Men M rerrlm twrl..theft twin eennelnnlan. teleran and SISAL Tile airwomen then be Wan"on ilea r the Yew dawn want who the rasa.reaMla r.nether if I.Semen y w of W emu - _ Petite• .. IN WITNESS N'1mW M r lr.We nr le sere.on dm 4Y writesFeu awn writes ♦ eft D Kurtz- STATE Or/ I LL Colorado Admowladipoaa - Cwmp d� The foregoing ho.n r.is rh..N+r.a Won..as 3D -- -- amt of le qr , A.D. 1,LC a O/ .,r S, .iA. ..— — . ' :,•••.•'•'vl!),Ltlxtll Kurtz o a f—t-- Wilew�fl♦ o W. . Mt ron:aion'.p QtJ:.�yi�7.f 7s ✓._�E4+ a-a�,� j -war;wulir. �. '� .a• - STATE OF COLORADO. ,�-- 1 S3 Colorado Admowledgmeot __ Coven en..-....----- 1 .. The fordoinp inanaaa teas n tawkdRn below me this.--. ._ .._.._....__.day of .. __ -, AD. if_— by . :.. °• -------- --_-.____.___- -_-__-_.-....___- a • ....•. .....• Witness my hand and official mai: �. • 'w ,.,, _ fbYO Polo.• _ 1. ' I I I.I I . I i i r • ! . P CI �j¢I —Al`.__ is - _ F 4 I .....-, . i pp \ 9iI is • . , .., t i 4 .i. --- ii\`11 1 . , . • Z r i is f 1 .'+• - • _ .. ^'><i. 'Olt-. e, T d i.:::.,0.•••r'a . . .,.,. -en .:nab l}3 r r y t._l:F�# jai . 1 4' L • U ^. • _ _ v. ra ___ '- y • s .... r Ski-'ia '�- f sY, ' '3') c.cif,3 t . I' t.�c. ^v 4P. _a,a irsi s _ — 4"4 �yv. '^ eft ....l• ,• •I 0 . PM PISf .R- _,:.. moo•-. ;.. a' refit Oils ' C OIL AND GAS it fl t i S •• .-, 1 ♦. "" TIM.A6.!LLXIKT. omens OS ur..u.-- 2311 .g et iaw.ry' s.'1D . n . s'yk i _ tin • da Salta, at n+bt LwN a, baab.ad its Sites I . le t t. ! 0. Bsc-i22_.fsonest, camas 80501 — -- a:. ,. r__i„, i oe...mattmr 3]da., Deaver. Calends ..Ni.., sae.ar,des n s: f 1. r Q* r M AY.W nit M tt re la Is On dop ran*I S as lia9.4-1SILIIan vt?t q I�./r■�Y�Y�SIK ISS thePS. sown IS 611• 114.41104.84 f .' }. .aa...M r..a.a W�as 1. rr..Sat r.r es SS SW a d M MN M Islamise..n MY Ire son. yen.r aow.M psi*la.W psis M SS,.w prema, w�Mlr..l aY aka .en was Mr.1M ten rr..W IS bGi6 rra• W�Alar]fY..n...rL W rya.. J a(W.Il M .'1rMr. I{Yaaaepy�raa.W as rY. ...I. W 11.f M.PM a�.1"M1 .M..a In • W w y a..r.Yr.r N. era a tb. ett Yy a6 �wf aI.IW M.ba. Y.e ea w.w ... tlww r—f r r , A. _ N .�.wr I..r rr..1 Nora.M sold W Ms to...1.� .Y Shoe a.Ka Y flies ism Se es.4 sY wMN r r se ' It. `Q a.arN...W IS MOWN W I.st ._._L. .r Ina it Si .0 w rl......r I .Snit SS a41M is u.was... - . -- „ is Efscr =H4 .fie « �J llSi1p01CL._ . o } a .o 0 Una ads in F ICI TeonnMp 5 North. Range 67 Pest, 6th P.14 6 Sootiest 17i 0". Mt exoept tst pot conveyed by deed We recorded in - ..s4• Book 1114 at Page 364, Veld County Records. 2 antics 18a 9m} Section 19u Part of the NB} described in Book 1021 at Page 193 except parcels convoyed in Bock 1021 at Page. 600 and 604. • r . „-- &potion 20, Part of the if described in Bock 1021.at Pages 133 and 365 of Veld County Records. containing a total of 918 acres, sore or less. SIGNED FOR IDEal'31C*TIC/k•'F - - 1 i Dartha Rankin 1'riAter...aa,n4e4A i - , i ir ' V r`- s^ v.1JJ: .. . 6.00;47 02C° 622 WS 3 � f __ is _rti nQ w r-re• 91.5 .arse r w an p: M aver 'L )Kti V) Vila an tats sea W a Y.{ M na r r L as and Itat lass Wes Iin ben*tat e. a s ia r_ �n.Y�M o w w oYW M Ina Y pined ha r••r la rat lads via bald W.r Y parmea w W awn w aura wanted. 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W W inn w elan r W Mal era M Inn el ea he esYY.site N the Umatilla r W Y and a IS sayrMs r lever to NMta YWLW lei ants is la starr s mid Anna Y W roues.nude r la rally r atil W lead earl Ste Y dales ma leaning matures/ ar�M • µ TY wall W al W ten a.adttlia ea ant -Oa an N. W be nisi es aJ r lb*wiles eft arm Ws Ina. rpsl..e of .seen sea leans esl N.Y I Wm aa•sane anus or t in an orLY.LW a Y wrr by say el W One ales lane and .s Wan Ts Yes say ba stns la„r . .i., _ a or M Il a i,tiraY/ vs wells W ay War w Inn saw nape nter Hanlcin/� • Wal DfutLLAA��� ha n �` -- . f• --L ^ - .I _-. d '‘,. . . ... . . 021# 622 Olds- � STATn OF (•"�_!�° se. ACKNORLLDOLLAT FOR INDIVIDUAL!]lasts. t, _ -', eerdevywed.•Malloy POk,with.*and ter odd NOM aid seta. ,1�� Y,M •1 ,s� Y Y W wrw+t rne^L'bo etuwied tw.ttW sad t-rs�s .w tw— • ... ss—Straw Imadeelata y` a �R�e WHEREOF Vnhrnwnto wt um bead sad t / w.J �, •/r ' Ml eemsdeeln etil 1ttMMyL — otary Phlk. • - MTATL 07.-- .W ACKNOWLEDGMENT tom INDIVIDUAL Maas.Okla.and Cole.) -- COUNTY OF .M stata.rt e' . Wen en.W adenkrwed.a Notary POOR MUM sad fee rota nwaq 1t�.Tteeneny -. U .S\ .:,. ... •r. . p Mearwweu sad acknowledged b me keen b.bo the Identical Dete°M—�°sae° W MOM.M tere/ely then!.set forth.t•as personally— voluntary act red deed fey the.ass and purpose. . __ — _--_- S WHWLOe.I Mnlet ay sad eNkW mal the day and year last ahem written e - W IN WITNESS MHLRLO►.I w he.ewsY m7 bead areal My aewmrWles eater SOW,Pebir.• STATE OF ea ACLNOWLZDOMLNT FOR CORPORATION COUNTY Or a Notary Palk - .. - Os Ode 4y of A.D.IF.— .Wen ma W eM mimed. I In sadm•W the eel M and date t the Meatiest salhperm sFM�nd� d w same of the maker thereof Y W MUM aM fsntoYt - .a r Treerwt7.astremeaust so _eww _ bon www. Fenn .�W the— }no and -,! the fre.s d,uknwkdt sad Y eN W �,Ix the woes and N*Petes Navin set fedn a j act sad dw4 ant u fine end miaYr7 u/ deed of r4 doper. - Gives wader n Mad and seal the day end year last above mitts. — ...- Mi eeremWbm aspiresNoten Public- . ___._.- R I . _ Ise % Las _` 3 • -. E it F" ® t c 1 I eara%• — 0 M g s "` a 'A1 II a 7li Z g _ E 1 _ _.- E Ill c O < I M S- dC ! 9 '. " ; e a d e • ° = I s 3 E _- t NOTL: Mhea drytwn h n'a Kansas,sald Wt�,y lobe Keseeae try tarkv.owast ledRTme•t rson aM Jw adno.ladtad. - STATE OF I u —)N. ACKNOWLCDGMLNT FOR INDIVIDUAL(Kane.,• Ok1 ..and Colo.) - - COVNTYOF • Before r,the undersigned.*Notary Public.witbn tad for mid rownty err state,on this , day of....,. It_—.penally aPPeared oval . me Trwn ow elly karma b be W Idrtkol Peraah-wed executed within end foregoing Instrument and acknowledged to me l ' b d valesyy Fr ad and deed fee the wan and purposes therein set font,. � tbo IN IenW the Fame free a wITNLLM wNLRLO►,l Vve boroab set my boM aM d:kW eel the day and year Wt oboe:'-el(taa -_._ l ' My townrWbn expires .Jetary Public. - i • . i ' i . a _ .�•♦ - ten.. •.I iti e. - .. 4. t o e°°$39 Recorded at.W.L• o•�k ..Q_.m_•lUL 20 1978 17CN785al m r."...a.Recorder • Rat.No. A 3'i a — I THIS AGREEMENT, made and entered into this 20th day ST i i i,:'•_' o• of APRIL , 19 77 , by and between AMOCO OD PRODUCTION COMPANY, a Delaware Corporation, with an office ti in Denver, Colorado, (hereinafter referred to as "Operator") ,f'.. ' and CHAMPLIN PETROLEUM COMPANY, a Delaware Corporation (herein- a after referred to as "Champlin") , . a `O W I T N E S S E T H: ..0 ' o ' WHEREAS, the Colorado Oil and Gas Conservation Commission Fn has established the following tract of land (hereinafter referred to as "Said Land") as a drilling unit for the production of gas and associated liquid hydrocarbons from the "J" Sand• ..e Formation underlying Said Land to-wit: - ° 3 , ' Township 3 North, Range 67 West • Section 21: W/2 and, ism II . .4 WHEREAS the railroad right-of-way of Union Pacific n t , • Railroad Company ("Union Pacific") crosses Said Lard; and, . r; by virtue of that certain Mineral Deed dated as of APRIL • '- _ __ 19 19 77 from Union Pacific to Champlin, a copy of which has been. delivered to Operator, Champlin v ~ ~ if the owner in fee of the oil and gas rights in said right- -- ---- of-way lands which, for the purposes hereof, shall be deemed . ' to contain 17.14 acres, whether they actually comprise • more or less; and R WHEREAS, a well (hereinafter referred to as "Said Well") - already already has been or may hereafter be drilled and completed on Said Land fore the production of gas and associated liquid hydrocarbons from the "J" Sand Formation; and - . WHEREAS, Champlin has agreed to accept the payments hereinafter provided for in lieu of participating in the costs of Said Welland receiving the share of production ---. ' . from Said Well to which it would thereby become entitled . - under Colorado's oil and gas conservation law and that certain - e .4031/7 . ., e+6°"8391760785 3 -, Agreement and Option to Acquire Oil and Gas Leases dated August 4, 1969, between Operator and Champlin. ; ' NOW, THEREFORE, in consideration of the premises, it i' i is agreed as follows: '• ` 1. Operator agrees to pay or cause to be paid, in ='•' 41>4C _. cash, to Champlin the value on the premises ofl.0oa]9%of °•r'z the gross amount of all "J" Sand Formation gas and associated liquid hydrocarbons produced, saved, and marketed 1-.-. ; • by or on behalf of Operator from Said Well from and after rty • the date of completion of. Said Well. 2. Nothing herein contained shall be construed as permitting Operator to enter upon the surface of the aforesaid right-of-way lands for the purpose of drilling for gas and/or L,1 , _. oil or otherwise. . 3. This Agreement shall continue in effect for one -` o ��.' (1) year from the date hereof and so long thereafter as , °° "J" Sand gas is produced or is capable of v,,'u:.�� - — being produced from Said Ladd, or drilling or reworking ''...,1-.V. ' .. .. . operations are being conducted therecn; ant for the purposes `t ' . ----- . ., hereof, interruptions of operations or cessation of production for a period of less than 60 days shall be disregarded- and "- a treated the same as though no interruption had occurred. - 4. Operator shall have the right to unitize said • yi right-of-way lands with other lands in the sa..:a general area by entering into a unit plan of development or operation, approved by any governmental authority, with the same force - :a._t and effect as if said right-of-way lands were under lease �'` • - '0:. aA for oil and gas to Operator and as if such lease expressly • granted Operator the right, to unitize and contained a provision for a royalty payable to Champlin of 18.752 of all production allocated to said right-of-way lands under such unit plan; - or, if Said Land is designated as a single unit tract, and, , � as a consequence, receives a tract allocation, the Operator • .0K839• srcr,:as 3-3 •' - a .. • - � shall pay Champlin under Section 1 hereof on the basis of r __ allocated, rather than actual, production. •N ,0" • 5. This Agreement shall be binding upon and inure • to the benefit of the parties hereto and their respective u--, _: successors and assigns; provided, however, that Operator shall not assign this Agreement nor any interest herein without prior written consent of Champlin. - ' IN WITNESS WHEREOF, the parties hereto have executed this Agreement is duplicate as of the day and year first 0 • • Y above written. k,,.� AMOCO PRODUCTION COMPANY is At orneyyin-Fact ? v 1.ATTEST: CHAMPLIN PETROLEUM COMPANY '5!'' •. 'r,� Assistant Secretary Vice P resioen� STATE OF COLORADO ) 55. ` - COUNTY OF DENVER ) The foregoing in: ument was acknowledged before me this c % day of e , 191, by E. E. 1AFAYE . a. 0;. torney-in-Fact for AMOCO PRODUCTION COMPANY, a Delaware corporation. `.YY'I'IiESs my hand and official seal. - n 11 4, l\CJT�aY Lt �C h .fG - C.Ge �e may' . Notary Public ✓/ ' >} • A e,:, l(.. f - ?•t4,'GodDniesion•expires: ______ ,A STATE OF d DcAAM0 ) 55. COUNTY OF ,D£AIin.R ) the'foregoing inst ument was acknowledged before me this"' Y .'da of k , 19 , by . O. 7 7 `r :/1 , Vice Presiaentod�'t CHAMPLIN PETROLEUM t-CJMp Y, •a ;corporation.;i ' • - Y ^• WITNESS my hand and official s//eal. Notary Public My Commission expires: C)eL-L4._21,17(0 a.l.. - I C) IP g r1 / ri r ...w tes 1605092 .....t.ma.dJBrtiJOJ� r',:: 27 �„ / A OIL Aft idles -LLASE> - ��z 1 98•�tio d/--1 ,w THIS AGREEMENT, made this /S day of September, • '' 1 1972, between THE GREAT WESTERN SUGAR COMPANY, a Delaware CS corporation, hereinafter called Lessor, and X 0 EXPLORATION INC., a Colorado corporation, hereinafter called Lessee: • is CS CD W I T N E S S E T H: o 9 1. Lessor, in consideration of Ten Dollars ($10.00) , • o' in hand paid, of the royalties herein provided, and of ^" the agreement of Lessee herein contained, hereby grants, N leases and lets exclusively unto Lessee for the purpose o of investigating, exploring, prospecting, drilling and o mining for and producing oil, gas and other hydrocarbons, 0 o laying pipe lines, building tanks, power s..tik,: �. . telephone lines and other structures thereon to 1. ,duce, . .> - save, take care of, treat, transport and own said . . . 8 products, the land described in Exhibit "A" attached •'7' hereto hereto and made a part hereof. In addition to the land iTE described in Exhibit "A", Lessor hereby leases unto the - . -- Lessee to t:e same extent as if specifically described _ _ herein all lands owned or claimed by Lessor which are • adjacent, contiguous to or form a part of the lands - specifically described in t said Exhibit "A". Exhibit "A" -_-- - contains 10 pages. - For rental payment-purposes, the land included ,• . within this lease shall be deemed to contain 1065 acres, "- - whether it actually comprises more or less. - _ _ 2. Subject to the other provisions herein contained, this lease shall be for a term of five (5) years from - �•this date (called "primary term") and as long thereafter , • : +' • ''° as oil, gas or other hydrocarbon is produced in paying quantities from said land hereunder, or drilling or reworking operations are conducted thereon. • 3. The royalties to be paid by Lessee are: (a) on - oil, one-eighth (1/8) of that produced and saved from said - - -. land, the same to be delivered by Lessee to the credit of Lessor into the pipe line to which the wells may be - connected or to Lessor's credit in other transportation .. facilities at the well; Lessee may from time to time pur- chase chase any royalty oil, paying the market price therefor - prevailing for the field where produced on the date of -- , •_ purchase; (b) on gas, including casinghead gas or other • • p . _ hydrocarbon substance, produced from said land and sold __ or used off the premises or in the manufacture of gasoline • or other products therefrom, the market value at the well of one-eighth (1/8) of the gas so sold or used, provided --- -' — that on gas sold at the wells, the royalty shall be one- eighth (1/8) of the amount realized from such sale. Lessee • shall have free use of oil and gas from said land, for all -. • - -' operations hereunder, and the royalty on oil and gas shall _ be _omputed after deducting any oil and gas so used: ._ Lessee shall have the right to purchase water from the " Lessor to be used for drilling purposes, at such price J.- • • so to • 'v rat . as .zr as cai a. _ Rsvised R ��a, N L-5005 nap a a _- ti P � M'r _ • 1605092,2/.129 • b83 took1836 mu. 28 - as shall be agreed upon between the parties. Such right is subject to such water being available to the Lessor , for this purpose. While there is a gas well (or wells) on the leased premises or on land pooled therewith and such well (or wells) be shut-in, Lessee, at any time or -- times, during or after the primary term, at its election, may pay or tender to Lessor as royalty a sum equal to the rental provided for in Section 4 hereof, whereupon it 1 . shall be considered for all purposes of this lease that gas is being produced hereunder from the leased premises - --:r. pursuant to Section 2 hereof for a period of one year; such year to commence on the anniversary date of this lease next preceding such payment or tender, unless the - ' rental, if any, which accrued on such anniversary date was paid or tendered, in which event such year shel1. . commence on the anniversary date of this lease next ►, - following such rental payment or tender. In like manner, .-- subsequent annual advance shut-in gas well royalty payments , may be made or tendered; in which event this lease shall - continue in force and it will be considered that gas is being produced from the leased premises within the meaning of said Section 2 during each annual period for which such• - - royalty is so paid or tendered The term "gas well" includes wells capable of p:aaucing natural gas, condensate, - �:. distillate or any gaseous substance and wells classified as gas wells by any governmental authority. Any such shut-in gas well royalty payment or tender may be made • in the same manner as provided in Section 4 hereof for - the payment or tender of rental. -� - 4. If operations for drilling a well in search of .. oil or gas are not commenced on said land or on acreage • pooled herewith on or before one year from this date, this lease shall then terminate as to both parties, unless on or before such anniversary date Lessee shall pay or tender to Lessor the sum of One Thousand Sixty-Five Dollars . ($1065.00), (herein called rental), which shall cover the . _ privilege of deferring commencement of operations for the ' drilling of a well 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 draft or check - at the option of the Lessee; and the depositing of such • - • draft or check in any post office, properly addressed to • � - _ the Lessor, on or before the rental paying date, shall be deemed payment as herein provided. The down cash payment - - is consideration for this lease according to its terms ._ -, -= -_ - _ - - and shall not be 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 (other than payment or tender of rentals) as to the acreage surrendered. The rental shall not be reduced by reason of any release of less than -° -�`- the full leasehold estate in all of the said land. . .683 Op�rl!1605O92 /,� - ---- ` -3- 6ugglW ma ---,- - -' .1 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 and ceased _ _ during the primary term, then and in either event, if - operations for drilling an additional well are not commenced • or operations for reworking an old well are not pursued 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 . _ resume the payment of rentals. Upon resumption of the payment of rentals, Section 4 governing the payment of rentals, shall continue in force as though there had . . been no interruption in the rental payments. If .k.r4ng _ the last year of the primary term and prior to the dis "eery .. of oil, gas or other hydrocarbons on said land Lessee should drill a dry hole thereon, or if after discovery of oil, gas ___ or other hydrocarbons before or during the last year of - the primary term the production thereof should cease during - the last year of said primary 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. a If, at the expiration of the pr1-•;'.y term, Lessee is conduct- ' ing operations for drilling a new well or reworking an old �'• • well, this lease nevertheless shall continue in force as • - " long as such drilling or reworking operations continue, or :It if, after the expiration 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 ninety (90) days after such cessation of production; if production is restored or additional - production is discovered as a result of any such drilling ' or reworking operations, conducted without cessation for - more than ninety (90) days, this lease shall continue as • - long thereafter as oil, gas, or other hydrocarbons is producted in paying quantities and as long as additional - y . drilling or reworking operations are had without cessation of such drilling or reworking operations for more than ninety (90) consecutive days. . 6. The term "Well Tract" as used hereafter in this lease shall refer tc -the drilling or spacing unit • preacribed for one well by the spacing rule of State or —---. - Federal authority; provided, that if there ?a no such - established spacing rule, the Well Tract, for a gas well, shall be the section of land comprising approximately 640 - acres upon which such well is located and, for an oil well, - - shall be the quarter-quarter section of land or corresponding governmental lot upon which such well is located, plus an --•-- �� - _ adjoining quarter-quarter section of land or corresponding - governmental lnt designated by Lessee comprising approximately . • 80 acres. - a. • .` 110- • ch. -- .- - ._x. .. - 0 68C ��1�� ee60509zai 6 144`F'i Lessee, at its option, is hereby given the right . and power to pool or combine a portion or portions of the land covered by this lease within any such Well Tract as to oil and gas, or either of them, with any _ - other land, lease or leases within such Well Tract when - _ in Lessee's judgment it is necessary or advisable to do so in order to properly develop and operate said premises. - -Within any such Well Tract Lessee may pool or combine acreage covered by this lease, or any portion thereof, as above provided, as to oil or gas in any one or more strata, and units so formed need no: conform in size or area with the unit or units into which the lease is pooled . ' '- or combined as to any other stratum or strata, and oil units " t . need not conform as to area with gas units. Such pooling in one or more instances shall not exhaust the r.gnts of tl.e Lessee hereunder to pool portions of this lease as to other a' . 4 units within Well Tracts. Lessee shall execute in writing ; • and place of record an instrument or instruments indentify- - - ing and describing each Well Tract and the leasehold acreage . , - �e, included therein. The entire acreage so pooled into a Well Tract shall be treated for all purposes, except the payment of royalties, as if it were included in this lease, and - drilling or reworking operations -hereon or production t- . of oil or gas therefrom, or tl.. completion thereon of a - - - - well as a shut-in gas well, shall be considered for all _ .. purposes, except the payment of royalties, as if such '- • operations were on or such production were from or such ° - - r - completion were on the land covered by this lease, whether or not the well or wells be located on the premises covered by this lease. In lieu of the royalties elsewhere herein '� specified, Lessor shall receive from a Well Tract so formed, only such portion of the royalty stipulated herein as the - amount of his acreage placed in the Well Tract or his • 0 royalty interest therein bears to the total acreage so pooled in the particular Well Tract involved. In the , s`'.ence of production, Lessee may terminate any pooled - area by filing of record notice of termination. ,• - 7. Lessee shall have the right, but not beyond 90 .- days after the termination of this lease, to remove all property and fixtures placed by Lessee on said land, - - . including the right to draw and remove all casing. Subject to the provisions of Section 13, any such property and fixtures not so removed shall become the property of Lessor. When requested by Lessor, Lessee will bury all .. . - - pipe lines at least 30 inches below the surface. No well - shall be drilled within five hundred (500) feet of any - building, structure, settling basin, or agricultural - r— experiment plot now en said land without Lessor's prior • " • written consent. The Lessee agrees to promptly pay to the _ owner thereof any damages to crops, grass, irrigation systems . or other personal property on the demised premises caused by or resulting from operations of Lessee. Upon termination - - / • of this lease, Lessee shall remove all debris and backfill - and level all pits resulting from its operations hereunder , and shall generally restore the land to its condition •prior to the conduct of Lessee's operation thereon. Lessee ' rt.' •' 1605092 a /-1l 683 5- X 1836 r 31 . agrees that upon surrender, termination, relinquishment or release of all or any portion of this lease, Lessee _ da shall, as to those lands surrendered, terminated, • ^.' relinquished or released, prepare, execute and record • in the County where such lands are situated, good and sufficient releases covering such lands and at its •- expense furnish Lessor a supplemental abstract . ' including this lease and all recorded instruments - - relating thereto, including release thereof; provided, - " however, at the option of either Lessor or Lessee, the Lessee may pay Lessor a cash amount equivalent to the cost of such a supplemental abstract or payment in connection with a prior surrender, termination, relin- __-_ __ . -. quishment or release. " 8. The rights of Lessor hereunder may be assigned, • in whole or in part, and the provisions hereof shall extend to its successors and assigns, 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 or Lessee. No change in the ownership or' the land, or any interest therein, shall be binding on Lessee until Lessee shall be furnished - with a certified copy of all recor'c ' instruments, all - ' court proceedings and all other necessary evidence of any transfer, inheritance, or sale of said rights. The rights of Lessee hereunder may be assigned, in whole or • • in part, only in conformity with the following provisions: • ' (1) Lessee shall request permission to assign, - in whole or in part, by written notice of - • K.. its intention to assign to a specifically named assignee. Within 10 days after receipt of notification, Lessor, acting by - .- and through the persons named below, must either approve or disapprove such assign- ''- ment in writing. Failure of Lessor to so , . advise Lessee shall be deemed to be approval +' of such proposed assignment. Lessor will _ not arbitrarily reject any assignment but - _ will determine the proposed assignee's is financial ability to perform Lessee's • - obligations under this lease as the principal - • - criterion upon which approval or disapproval _ shall be based; _ _d • (2) If Lessor disapproves a proposed assignment, Lessee may, nevertheless make such assign- . • ment, but Lessee shall continue to be liable -. for all obligations of the Lessee under the terms of this lease as to the acreage so assigned; (3) If Lessor approves a proposed assignment and Lessee assigns tills lease, in whole or in part, - Lessee shall be relieved of all obligations - (other than payment or tender of rentals in the event of partial assignment) with respect - _ • to the assigned portion of or portions arising subsequent to the date of the assignment; • i3TrfAy 5 • �.,'X,x•y ,,",rprt,, f. t' i,,S.k*.Wr..p P4"-'• es'. t. ).-",‘"1" • • 160509207/ `°°'°663 b- wi836 fig 32 (4) Any notice required under the terms of -' ---• --•— this lease shall be made by written instrument delivered or mailed by certified mail, return receipt requested as follows: If to Lessee: X 0 EXPLORATION, INC. 1512 Prudential Plaza 1050 17th St. Denver, Colorado 80202 Attn: Max Ernest III If to Lessor: THE GREAT WESTERN SUGAR COMPANY - P.O. Box 5308 Denver, Colorado 80217 Attention: Bill L. Phillips Vice-President Such notice shall be considered given as of the date and time of receipt by the addresse. . 9. A.1 express or implied covenants of this lease • shall be subject to all Federal and State Laws, Executive . Orders, Rules or Regulation-- and this lease shall not be - -' terminated, in whole or it part, nor Lessee held liable •� in damages, for failure to comply with said covenants, 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; provided, _ however, it is expressly understood and agreed that no obligation of Lessee to pay money to or for the credit • of Lessor shall be relieved, released, suspended or post- poned by or under the provisions of this Section 9. If, during the term of this lease, oil or gas or other • hydrocarbons is discovered upon the leased premises, but a . . 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 produce the oil, gas or other hydrocarbons and as long thereafter as such production continues in paying quantities or - - -- drilling or reworking operations are continued as elsewhere herein provided; provided, however, that during such time • as Lessee is thus prevented from producing oil, gas or . . other hydrocarbons, Lessee will pay Lessor either shut-in . gas royalty or minimum royalty as applicable. Lessee will exercise reasonable diligence to obtain a satisfactory _-'- ---- market for production obtained hereunder in paying quantities. .r �, . - "• a 683 16GSosza/-7 ioox1s3s - - ' 4 10. Lessor, during the term of this lease, does . I hereby grant unto Lessee, its successors and assigns, an easement and right-of-way over, upon and across any and all lands owned or controlled by Lessor which adjoin or are situated in the immediate vicinity of - • the leased premises, for ingress and egress in, to and - • from said leased premises for the purpose of exploring, :� ' •. •• developing, and operating said leased premises. Lessor - . shall have the right to designate the locations of such easements or rights-of-way so as to be compatible with Lessor's surface operations on premises owned or controlled " by Lessor. • 11. Lessor hereby warrants and agrees to defend the title to the oil, gas and other hydrocarbons I.Ider said land against all persons claiming by, through or und'- Lessor and agrees that Lessee at its option may discharge any tax, mortgage or other lien thereon, either in whole - . - or in part, and in event Lessee does so, it shall be -: subrogated to such lien with the right to enforce same and apply rentals and royalties accruing hereunder toward _ satisfying same. Without impairment of Lessee's rights - under the warranty in event of failure of title, it is __ - -- - agreed that if Lessor owns an '.'.serest in said land less - - - . than the entire fee simple estate, then the royalties and rentals to be paid Lessor shall be reduced proportion- - - • ately. 12. Lessee shall obtain Lessor's written approval - .-prior to conducting seismograph operations, including `-r bulldozing, on the leased premises. Lessor shall have the right to approve or disapprove of the drilling - contractor selected by Lessee prior to the commencement of drilling operations. For the purpose of this paragraph the following drilling contractors shall be deemed to be - approved by the Lessor until written notice to the contrary have been given by Lessor to Lessee: ty Brinkerhoff Drilling Co., Inc. Allison Drilling Co. , Inc. Exeter Drilling & Exploration Co. , Inc. • 13. In the event Lessee desires to plug and abandon ' any well drilled for oil or gas upon the above described __ -"-• - • land, Lessor shall have the right, at Lessor's sole risk, , cost and expense, to take over the well for the purpose of completing it as a water well. In such event, Lessee - - shall comply with all governmental rules and regulations, including those of the Oil and Gas Conservation Commission of the State of Colorado in plugging and abandoning the =-. _. - well to the depth at which Lessor desires to take over the well for the purpose of completing it as a water well. ' " Lessor shall assume full responsibility for all costs, risks, and expenses and for compliance with all governmental rules - and regulations, including those of said Oil and Gas Conner- • , vation Commission, with respect to said well from and after . . . -: WI.r`..% . ..44'S . , .P re. ' . mss • isoses2 -g G091(iCiVLI Mg 34 Y the time Lessor so takes over the well. Lessee shall notify Lessor of Lessee's intention to plug and abandon .[`•t• a well and allow Lessor at least 24 hours to decide w r whether or not Lessor desires to take over the well for _ - the purpose of completing it as a water well. Any charges ., over and above normal standby charges shall be paid for by Lessor. Lessee shall notify Lessor in writing of the • reasons for plugging a well, and shall furnish Lessor with a copy of the well log, and all geological reports pertaining to such well. At the same time Lessor shall notify Lessee in writing of the depth at which Lessor ' wishes the well to be plugged, and to what extent, if any, Lessor wishes the casing to be left in the well; provided, however, that the plugging of any such well and the depth at which the plug is set shall conform to gond nil and gas industry practices and to the rules and veguz '--ons of said Oil and Gas Conservation Connission. Failure of Lessor to so notify Lessee shall release Lessee of al.l • obligations under the terms of this Section. Lessor will pay Lessee for the salvage value of casing which Lessor . .. desires to be left in the well. Lessee agrees to give • Lessor all information obtained in normal drilling and • testing operations with respect to water sands encountered _ --- in the drilling of any well "c'...under. 14. Commencing with the anniversary lease year begin- ning on or after discovery of oil or gas on the leased premises, Lessee shall pay lessor in lieu of rental a • , - minimum royalty of $1.00 per acre at the expiration of each such lease year, or the difference between the actual k royalty paid during each year if less than $1.00 per acre and the prescribed minimum royalty of $1.00 per acre. Payment may be made to Lessor by check or draft of Lessee mailed or delivered to Lessor or to said bank. No • minimum royalty is payable for any lease year for which • - shut-ingas royalty has been Y Y paid or tendered. 15. This lease has three Drilling Tracts. All of the :a.''. in .� Trott 1 of Exhibit "A" is a Drilling Tract; all of the land in Tract 2 of Exhibit "A" is a Drilling Tract; and all of the land in Tract 3 • .,, of Exhibit "A" is a Drilling Tract. . On or before November 20, 1972, Lessee shall either (1) surrender this lease as to all lands covered hereby not then - -- - included in a Drilling Tract containing a well producing or capable of producing oil or gas in paying quantities, provided, however, that �� . if Lessee furnishes the Lessor with reasonable evidence that it is . then in the process of making actual preparations for the actual .- _ __: commencement of operations for drilling a test well on the lease; or (11) commence operations for drilling a new well or reworking an old_ well- - vell on the leased premises (unless a well is then being drilled or • �• reworked in conformance with the provisions of this lease) and there- - . . ➢ after pursue continoua drilling or reworking operations on the leased premises allowing not more than 90 days to elapse between the completion of one well and the commencement of operations for drilling or reworking , - --' - -- the next well until such time as a well has been completed on each Drilling Tract either as a producing well or as a dry hole or Lessee elects to cease such continuous operations. Upon cessation of such -i• 0 •4. Revised O . ._- . • la, • 1III sCs a/ 9 ;, '683 ��l� f� . - • 5- 80061836 NICE 35 • 9 . 1. , - continuous drilling or reworking operations, Lessee shall surrender this lease as to all lands covered hereby not then included in a Drilling Tract upon which a well has been drilled under the terms of . . this paragraph. - Any well which L drills or reworks or causes to be - drilled or reworked, or participates therein situated within a Drilling Tract containing a portion of the leased premises shall • constitute a well drilled or reworked on the leased premises, whether •y or not such well is actually located on the leased premises and whether or not the lands within such Drilling Tract had theretofore - . been pooled. 16. The term "paying quantities" means production in quantities sufficient to yield a return in excess of operating costs even though drilling, completing and equipping costs may never be recovered. - 17. Notwithstanding any other provisions of this lease to the contrary, Lessc and L gree that if Lessee, its successors or assigns, drills and completes a well or wells on the property covered hereby, or on any other property within the Well Tract in which the property covered hereby is situate", ..aich is capable of producing natural gas in commercial quantities, that Lessor shall have an ! - _ option to purchase all such gas (which Lessee has the right to sell) - or so much thereof as Lessor desires. Such option shall apply co: •' ... • • all wells drilled and completed on the property or on any other property within the Well Tract within which the property is situated. =r If such option or options are exercised, such purchase and sale with respect to all such wells shall be in accordance with the term - of the Gas Purchase Agreement attached hereto as Exhibit "A". This • .� . option to purchase does not apply to gas produced from subsidiary sites described on Exhibit "A" as Tract 4---Subsidiary Sites lands ' or from lands pooled with any of the subsidiary sites. 18. Lessee shall notify Lessor at such time as any - , such well is capable of producing natural gas and Lessor shall have-30 days from the date such notice is received within which to exercise its option to purchase such gas. - _ Notice of the exercise or non-exercise of such option shall ., - be in writing and addressed to Lessee at the address herein- "" • above stated and shall state the quantity of gas which Lessor wishes to purchase. A failure by Lessor to give such notice - shall be deemed to be a non-exercise of said option. - 19. Within three days after the commencement of the option period, Lessee shall furnish to Lessor all pertinent - - - • -- . information relating to the quantity and quality of gas .. • which said well is capable of producing, including, but not - - limited to the results of all tests and geological and • Revised A y. tw-r _. -h• 'j!^�""{{�H^'�3X •���..t'«.nl m.rs..v. Yr asososzafr id • • - • -77 `'00Mete3 -10- aou61836 Pa 36 . engineering reports and any and all other information end data which might assist Lessor in determining whether - ' or not to exercise its option to purchase. In addition, , -. —- during the option period, Lessor's representatives shall have access to the well site and shall be entitled to conduct, at Lessor's sole cost and expense,. any indepen- dent tests or investigations which it desires to assist it in making its determination as to whether or not to exercise its option hereunder. 20. The option to purchase granted hereby shall be - in addition to all other rights of Lessor contained in - .*• this lease, and the exercise or non,exercise of said option shall not diminish or affect in any manner Lessor's - entitlement to payment of any delay re-talc or royalties - ' under this lease. • -- � 21. This lease does not include coal. . ,�. -- -- All of the provisions of this lease shall inure to the benefit of and be binding upon the parties hereto, - their heirs, administrators, successors and assigns. IN WITNESS WHEREOF. I .ts instrument is executed on :• the date first above written. X 0 EXPLORATION, INC. , THE GREAT WESTERN SUGAR COMPANY, LESSEE LESSOR /� ,,q - - - By BY 73te_0(2Fuc-YX . y ,. STATE OF COLORADO ) - L r n y ��. - • CITY AND ) is ' ' - .. COUNTY OF DENVER ) r_�' r`�O C t �'�. C f ,'.-. The foregoing instrument was acknowledged before,me' ...,.` - ' . this tic(' day of - "' , 1972, by Bill L. PhiIlips- .'; " ;• as. Vice President of The Great Weste=r Sugar Company, a • ,. . Delaware corporation. /� ,o - . .. i ni i -, ary -244-6?{- N /biic . � • STATE OF COLORADO ) . CITY AND ) S : _ COUNTY OF DENVER ) '. - The foregoing instrument was acknowledged before me this SPA day of .ro.hwr , 1972, by Max Ernest III • • as President of X 0 Exploration, Inc. , a Colorado corp- •- ._. oration. (.4 ,2Q, • Notary Publ c • , • •t e • • a's'os •Was July 6,an. .' ' ,..'r • 1605092 . xy Sp' r�/-/I h lW EXHIBIT "A" _ TRACT NO. 1 5•`.1(1836 (4i,( 37 Brighton Area, Adams County, Colorado • Township 1 South, Range 66 West, Sixth (6th) Principal Meridian - i ' Section 6: Northeast quarter of the Northwest quarter (NE/4 NW/4) and all that part of the Northwest quarter of the Northeast quarter (NW/4 NE/4) lying on the Westerly side of the present County road as the same is now constructed and , operated Section 6: All that part of the Southeast quarter of the Northwest quarter (SE/4 NW/4) lying West of the County road as now . . established ' Section 6: The West 70 feet of Lot! 1-4 inclusive of Block S. Brigi.:nn - - - Park according to the recorded plat. The West 70 feet os _ - Block 4, Brighton Park according to the recorded plat Section 6: The Southwest quarter of the Northwest quarter (SW/4 NW/4) less a 6.58 acre tract as described in that certain Deed dated October 10, 1907 and recorded in the officer of the , Clerk and Recorder of said Adams County in Book 37 at .. Page 511. ._; � . Section 6: Northwest quarter of the Northwest quarter (NW/4 NW/4) . Brighton Area - Weld County, Colorado Township 1 North, Range 66 West, Sixth (6th) Principal Meridian • . Section 31: All that part of said Southwest quarter (SW/4) lying and being on the West side of the South Platte River and East of the following described line: Beginning at a point on the .. South line of the said Southwest quarter (SW/4) which point bears South 89°54' East 364.5 feet from the Southwest ' corner of the Southwest quarter (SW/4) of said Section 31; thence North 44008' East 422 feet to a point; thence North 87°23' East 243.5 feet to a point; thence North 2316 feet to a point on the North line of said Southwest quarter (SW/4) f of said Section 31 containing 28.4 acres, more or less. - . Also, all that certain tract of land situated in the Northwest quarter (NW/4) and more particularly described as follows: v— - - - All that part of the South half of the Northeast quarter of the . Northwest quarter (S/2 NE/4 NW/4) and the Southeast quarter g of the Northwest quarter (SE/4 NW/4) of said Section 31 lying - West of the West bank of the South Platte River containing • 24.5 acres, more or less. - Township 2 North, Range 66 West, Sixth (6th) Principal Meridian - • - -- Section 31: Portion of the North half of the Southeast quarter (N/2 SE/4) - - _ containing 80.00 acres, more or less (Fort Lupton Area) • -4, c EXHIBIT "A"---Page 1 Revised, Key - 1‘1 ♦ .. NOOK 1.6C SO9: - 683 TRACT NO. 2 6:::x18316 p.a. 38 . . Johnstown Area, Weld County, Colorado Township 4 North, Range 67 West, Sixth (6th) Principal Meridian • " Section 9: North half (N/2) including that portion lying within the town of Johnstown known as Purvis addition to Johnstown, subject to prior conveyances which arc of record in the County _ f records of Weld County, Colorado. TRACT NO. 3 - Longmont Area, Boulder County. Colorado Township 2 North. Range 69 West, Sixth (6th) Principal Meridian • t Section 11: North half of the Northeast quarter (N/2 NE/4) and - t' Southeast quarter of the Northeast quarter (SE/4 NE/4) less 11.84 acres, more or less described as: Beginning • at the East quarter corner of said Section 11: thence West along the South line of the Southeast quarter of the Northeast • - quarter (SE/4 NE/4) of said Section 1310. 1 feet to the West -- • - - -- : line of said Southeast quarter of the Northeast quarter • (SE/4 NE/4); thence North along said West line 631 feet; thence in a Southeasterly direction along the center line of the St. Vrain River as now st••';:.tened 1393 feet to a point on the East line of said Section' thence South along said East line 156 feet to place of beginning . • • 7: ; • • • • • • • ♦ EXHIBIT "A"--Page 2 • RevlcediQ �1'. • Roos IGG508202/-73 • x ; :. 683 f}i� TRACT NO. 3 Continued 6o3x1836 fF',( Jc7 ti; Section 11: The East half of the Northwest quarter (E/2 NW/4) less all that :L>�1 portion of the South half of the Southeast quarter of the Northwest quarter (S/2 SE/4 NW/4) described as: Beginning • at a point 2298.5 feet South of the North quarter corner and - _ running thence West 1310.25 feet to the North and South center - • . • line of the Northwest quarter (NW/4); thence South along said center line 332.5 feet to the East and West center line: thence ' East along said East and West center line 1310.25 feet to the center of said Section 11; thence North 332.50 feet to the place of beginning containing 10 acres, more or less; further excluding a parcel of land in the Southeast quarter of the • Northwest quarter (SE/4 NW/4) more particularly described . •• - - as follows: Beginning at a point on the North and South line ,� of said Section 11 a distance of 332.5 feet north of the Center • line thereof; thence North 0°10' East on said North and South line 304. 1 feet; thence North 7802' West 198 feet; thence North • . - 63°47' West 217:9 feet: thence South 89°49' West 920.4 feet; thence South 0°13' West 442.8 feet; thence North 89'49' Ea r• - • • 1310. 1 feet to point of beginning containing 12.59 acres, more - or less; further excepting a strip of land 125 feet wide on the ._ ___ Southerly side and adjoining the South line of the present Right of Way of the Cl3AQ Railroad over and across the Northeast __ _ _— •quarter of the Northwest quarter (NE/4 NW/4) of said Section 11 containing 7.5U acres, more or leas • Section 2: All that part of the Southeast quareer .if the Southwest quarter ' - (5E/4 SW/4) of Section 2 described as follows: Commencing at the center of the South side of Section 2 and running thence West to the South line of said Section a distance of 1327.2 feet _ ' to an iron pin in the center of the South side of the Southwest ' • quarter (SW/4) of Section 2; thence North along the center ' ' line of said Southwest quarter (SW/4) a distance of 1154 feet • to an iron pin in the county road which leads Southeasterly from the East end of Third Avenue in the City of Longmont, a Colorado; thence Southeasterly along the said center line of said county road 1578.5 feet to an iron pin in the center line _ . of said Section 2; thence South along said center line of Section 2 • • - a distance of 309.2 feet to place of beginning containing 22.35 acres, more or less • - Section 2: A tract of land in the Southwest quarter of the Southeast quarter _ __ (SW/4 SE/4) described as follows: Commencing at the center of the South side of Section 2 and running thence North on the - center line of said Section 309.2 feet to an iron pin in the center _ - - of the county road leading Southeasterly from the East end of Third Avenue in said City of Longmont, Colorado; thence _- _ Southeasterly along the center line of said county road 576 feet . • to an iron pin on the South line of said Section 2; thence West - • along South line of said Section 2 492.2 feet to place of beginning containing 1.75 acres, more or less s - _ Section 11: That certain tract of land in the North half of the Southwest quarter ' of the Northeast quarter (N/2 SW/4 NE/4) of said Section II described as beginning at a point 1315.25 feet South of the North - . quarter corner of said Section 11 said point of beginning running thence South 665 feet along the North and South center line of •1 said Section al; thence East 1310.25 feet to the North and South T ' center line of the Northeast quarter NE/4) of Section 11 a _ • . distance of 665 feet: thence West 1310.25 feet to the place of beginning, containing 20.0 acres, more or less . EXHIBIT "A"---Page 3 ' • Revlaed F..' >� "`\ . . Do1G 3 1605052O2/dg TRACT NO. 3 Continued 4h Y Bq,l�r11 i U 836 fd ,`+•'y Section 1: That certain tract of land lying in Sections I and 2 of 12 n. Section 2: R69W of the Sixth (6th) R.M. described as follows: Beginning at the corner of Sections 1, 2, 11 and 12 in T2N-R69W running thence along South Section line of Section 1 North 88°34' East • 1194.94 feet to an iron pin set with its top 3 inches below the ground surface in the county road upon said Section line; _ • thence North 61031' West 306.23 feet to an iron pin set into . the ground with its top 6 inches above the ground surface; • • thence North 49039' West 165 feet to an iron pin set into the ground with its top 6 inches above the ground surface; thence North 57°34' West 173.6 feet to an iron pin set into the ground with its top 6 inches above the ground surface; thence North — 1 45°20' West 153 feet to an iron pin set into the ground with its top 6 inches above the ground surface; thence North 89°51' West 3458.17 feet to an iron pin set into the ground in the county road which runs in a Southeasterly direction from the East end of Third Avenue in the City of Longmont, Colorado; thence South 57°49' East 359. 1 feet to an iron pin set with itb lap 3 :ache t . ' , below the ground surface in the county road last above o,scribed; • thence South 57°43' East 576 feet to an iron pin set into the • - ground with its top 3 inches below the ground surface upon the ---- - ^.y line between Sections 2 and II in T2N-R69W; thence along the r. , line between Sections 11 and 2 North 89°49' East 2122.96 feet • to point of L'eginning containing 37.54 acres, more or less • Section 12: West half of the Northwest quartr- (W/2 NW/4) excepting a • " . . parcel of land containing 10.f ...n-es, more or less out of the • • Southwest quarter of the Northwest quarter (SW/4 NW/4) - . Section 12 more particularly described in that certain Deed from Theresa Sully Hertha to William W. Wolf by Warranty . . - Deed dated October 13, 1905 and recorded in Book 282 at Page . 394 of the records in the office of the County Clerk and Recorder s. of Boulder County, Colorado r ' Sertlon 2: Portion of the Southwest quarter of the Southwest quarter • .3 (SW/4 SW/4) described as follows: a strip of land 50 feet in width beginning at a point on the East line of the Southwest quarter of the Southwest quarter (SW/4 SW/4) of Section 2 whence the Southeast corner of said Southwest quarter of the Southwest quarter (SW/4 SW/4) • bears South 0°5' West 333.5 feet; thence South 88°50' West 826 .. . feet to a point on the Northern line of the Right of Way of the CBAR Railroad as the same is now located and constructed across • • _ - said Southwest quarter of the Southwest quarter (SW/4 SW/4) • Section 2 containing 0.89 acres, more or less _ • Section 2: A parcel of land being at a point on the West line of Section 2 whence the Southwest corner of said Sections bears South - . - 0°3' East 770 feet distant; said point being also the intersection • of the South line of East Second Avenue as per plat of the • factory place addition to the City of Longmont and the East line of Martin Street as per plat of the original town of Longmont; ' thence North 89°57'.East 1309 feet to a point on the East line of -" • ' the Southwest quarter of the Southwest quarter (SW/4 SW/4) of Section 2; thence South 0°5' West 767.5 feet to the Southeast • • __ corner of said Southwest%uarter of the Southwest quarter of said• Section 2; thence South 89 52' West along the South line of said - .ti Southwest quarter of the Southwest quarter (SW/4 SW/4) of • Section 2 138.7 feet; thence North 63°32' West 1306 feet to a • • point on the West line of Section 2; thence North 0°3' West . 185.3 feet to place of beginning containing 14.36 acres, more or less . J. EXHIBIT "A"---Page 4 Revised •A 'p. • • • tops. iccsesz_v/d TRACT N0. 3 Continued 8ax1836 14' i 41 Township 2 North, Range 69 West, Sixth (6th) Principal Meridian Section 1: A parcel of land 60 feet in width extending through and -• g across the West half of the Southeast quarter (W12 SE/4) =i - of said Section 1 being 30 feet on each side of the center line of said The Great Western Railway Company's s railroad Pan d� as the same is now located and constructed, said center line being described as follows: Beginning at a point on the East _ line of the West half of the Southeast quarter (tV/2 SE/4) of - • said Section 1 a distance of 33.2 feet south of the Northeast • - corner of said West half of the Southeast quarter (W/2 SE/4) • of said Section 1; thence in a Southwesterly direction upon a curve to the left whose radius is 1432.69 feet 772.35 feet to a I - point of tangent; thence upon a true course of South 42°53' West 994.9 feet to a point on the West line of the Southeast . quarter (SE/4) of said Section 1, which point is 1509. 83 feet North of the quarter corner stone on the south line of Section 1. t • .d • • • • • • • • - r EXHIBIT "A"---Page 5 Revised (. .,\/v e • noic • 683 1605092,7/-/4 TRACT NO. 3 Continued • 13=1835 HU 42 Township 2 North, Range 69 West, Sixth (6th) Principal Meridian M.i Section 1: A strip of land 140 feet in width of which 60 feet is North i}J and 80 feet is South of the center line of the track of the Great Western Railway Company's railroad, as the same is now located and constructed; said center line being described as follows: Beginning at a point on the East line of the said Southwest quarter (SW/4) of said Section 1 a distance -- - of 1509.83 feet North of the quarter corner stone on the South .. line of said Section 1; thence on a true course south 42°53' west a distance of 1041.4 feet to a point of curve to the right whose radius is 1910.08 feet; thence along the Fast boundary - . of a tract of land described in that certain Deed from Helen M. - Secor to the Great Western Sugar Company recorded _ November 27, 1905 in Book 282 at Page 560 of the records in ,.._. the office of the Clerk and Recorder of Boulder County, Colorado r • • • • • . • • EXN1sIT "A"___Page 6 Revised, 'I • • ,• ,:4 . err" • pO • 16�005032 rag 683 TRACE NO. 3 Continued duCg1CJJ6 rgt 43 • ' •••n Section 12: Southeast quarter of the Northwest quarter (SE/4 NW/4), West /—/I' - ! s half of the Northeast quarter (W/2 NE/4), Southeast quarter of T•; the Northeast quarter (5E/4 NE/4) subject to prior conveyances which are of record in the County records of Boulder County, 41e Y4 Colorado )577.72J • ,5-, The following described lands are excluded from the Southeast quarter of the Southwest quarter (SE/4 SW/4) of Section 2, Township 2 North, - . Range 69 West: Beginning at a point on the southerly boundary line of • county road from whence the southwest cornet of'said Section 2 bears South 48°59' West 1726.5 feet; thence South 0 15' East 178.6 feet to a _ point; thence South 58°08' East 81.2 feet to a point on a line which is the extension North of the East Right of Way line of the Great Western Railway — Company; thence South and Southeasterly on the East and Northerly Right .a • of Way line of the said The Great Western Railway Company which said .. Right of Way line in 25 feet measured at right angles from the center line of the main track of said railway 1380 feet, more or less, to a point which is 234 feet South of the Southerly boundary line of said county road; thence North 234 feet to a point on the Southerly boundary line of said county rc.•d; • thence North 56°27' West 1218.3 feet to the point of beginning, containing • 9.5 acres, more or less . EXHIBIT "A"---Page 7 Revise* f" r — i • x EXHIBIT "A" • •4 1tiGS0t92 683C• • 'IV I � TRACT NO 4 • -- SUBSIDIARY SAES 53CK1J3J rat 44 f r't ' Brighton Area, Weld County, Colorado e Township I North, Range 68 West, Sixth (6th) Principal Meridian . Section 24: Portion of the Northwest quarter (NW/4) containing 2.75 acres, more or less, Washington Spur Dump Site - Township 2 North, Range 64 West, Sixth (6th) Principal Meridian -- ' Section 28: Portion of the Southwest quarter of the Northwest quarter , (SW/4 NW/4) containing 1.07 acres, more or less, Roy . • ' Dump Piling Ground _ ' , . Section 28: Portion of the West half (W/2) containing 2.28 acres, more - . - or less, Roy Dump Piling Ground • Township 1 North, Range 63 West, Sixth (6th) Principal Meridian Section 18: Portion of the Northwest quarter (NW/4) containin6 .:.0 acres, • • • more or less, Piling Ground at Sloan Dump (Tampa Spur) - • • _ - Township 2 North, Range 63 West, Sxith (6th) Principal Meridian = Section 28: Portion of the Southwest quarter (SW/4) containing 3. 15 acres, - more or less, Krauss Piling Ground , - • Section 28: Portion of the :southeast quarter (SE/4) containing 3.4 acres, more or less, Krauss Piling Ground • • - - Township 1 North. Range 65 West, Sixth (6th, lrincipal Meridian ' " Section 2: Portion of Southwest quarter (SW/4) containing 3.08 acres, w more or less, Hudson Piling Ground -. Section 2: Containing acres, more or less, Hudson Piling Ground - Township 1 North, Range 63 West, Sixth (6th) Principal Meridian - • - • - Section 4: Portion of Northeast quarter (NE/4) containing 2.94 acres, - more or less, Johnson Receiving Station • - Township 2 North, Range 64 West, Sixth (6th) Principal Meridian Section 26: Lot 7 except North 12 feet West 24 feet and all of Lot 8, - • • Block 13 containing acres, more or less, Keansburg - - • Dwelling No. 11 • •. . Township 1 North, Range 63 West, Sixth (6th) Principal Meridian Section 16: Portion of the West half of the Northwest quarter of the - Northeast quarter (W/2 NW/4 NE/4) containing 3. 18 acres, more or less (surface rights only - minerals reserved by • State of Colorado), Sheehan Dump Site - • _ Section 18: Portion of the Northwest quarter (NW/4) containing 2.5 acres, _ - • more or less, Piling Ground at Sloan Dump, (minerals previously - - . reserved) •. . �. - EXHIBIT "A"---Page 8 , . tM•• I. .a'Wog 683 16::5092 i • / i _ . EXHIBIT "A" 45 �'s b,:::.%1033iSei . I TRACT NO, 4 -- SUBSIDIARY SITES Continued , `" Longmont Area, Boulder County, Colorado - Township 3 North, Range 69 West, Sixth (6th) Princinal Meridian . Section 23: Portion of Northwest quarter (NW/4) containing .4 acres, • more or less as described in Deed recorded in Book 272 ' at Page 342 of the records of Boulder County, Colorado •._ Township 2 North, Range 69 West, Sixth (6th) Principal Meridian • " • Section 20: Portion of West half (W/2) described as follows: Beginning at a point on the North side of the County Road in said • Section 20, said point being 28 feet north and 1320 feet East of the \Vest quarter corner of said Section 20; running thence • ' - •^ North 432 feet to the South line of the Right of Way of The Colorado and Southern Railway Company; thence South 40°40' West 31 feet; thence South 417.5 feet; thence North 51' Last - _ 22.5 feet to the place of beginning, containing .195 of an acre, . more or less '. '. _ "---" . - Section 20: Portion of West half (W/2) described as follows: Commencing at a point on the North side of the County Road in said - . - .• Section 20, said point being 28 feet North and 1320 feet East • of the West quarter corner of said Section 20; thence North • 432 feet to the South line of the Right of Way of The Colorado • and Southern Railway Company; there:- ::orth 40°40' East • - 128.7 feet; thence South 49°20' tali. 30 feet; thence 40°40' : " West 141 feet; thence South 401.3 feet; thence West 15 feet to the place of beginning, containing .242 acres, more or less Township 3 North, Range 70 West, Sixth (6th) Principal Meridian Section 36: Portion of Northwest quarter (NW/4) described as follows: . Commencing at a point on the South line of the Right of Way • - of the Denver, Utah and Pacific Railroad Company 266 feet South and 400 feet West of the North quarter corner of said " Section 36; thence North 62027' West along said Right of Way - for a distance of 200 feet; thence South 36 feet; thence South • 71° East 187 feet to the place of beginning containing acres, more or less Section 36: Portion of Northwest quarter (NW/4) described as follows: - - Beginning at a point on the South line of the Right of Way of the Denver, Utah and Pacific Railroad Company North 62°27' West --• - ,, • • and 200 feet from a certain point 266 feet South and 400 feet . . West of the North quarter corner of said Section 36; thence • - - North 62°27' West along said Right of Way for a distance of - E'. 362 feet; thence South 50 feet; thence South 65°40' East for • - - • a distance of 360 feet; thence North 36 feet to the place of" - - ' beginning, containing acres, more or less - • ` EXHIBIT "A"---Page 9 ' . • Revised /���h - ' " ta.r MK pp1��[GG5092+((/��. .. t4r'• 6 TRACT N0. 4 -- SUBSIDIARY SITES Continued 8061 48JU t46t 46 , �. . Township 3 North, Range 70 West, Sixth (6th) Principal Meridian • 'i Section 36: Portion of the Northwest quarter (NW/4) described as follows: Beginning at a point on the South line of the Right of Way of the • Denver, Utah and Pacific Railroad Company North 62027' West . and 200 feet from acertain point 266 feet South and 400 feet West of the North quarter corner of said Section 36; thence . North 62°27' West along said right of way for a distance of 362 feet; thence South 50 feet; thence South 650401 East for a _ -"r distance of 360 feet; thence North 36 feet to the place of . - • beginning, containing 0.32 acres, more or less - . .• Township 3 North, Range 69 West, Sixth (6th) Princinal Meridian " ' Section 23: Portion of the Northwest quarter of the Northwest quarter ' (NW/4 NW/4) containing 1.57 acres, more or less, Morey Dump - Section 23: Portion of Northwest quarter of the Northwest quarter (NW/4 NW/40 < - containing .82 acres, more or less, (land adjacent to Morey Dump) Section 23: Portion of West half (W/2) containing .4 acres, more or less, - - • Morey Dump _ . . Longmont Area, Weld County, Colorado Township 2 North, Range 67 West, Sixth (6th) Principal Meridian Section 7: Portion of Southwest quarter (SW/4) containing acres, more or less, Harney Dump Piling Ground .. • . - - Township 2 North, Range 68 West, Sixth (6t" T rincipal Meridian •' Section 21: Portion of North half of the Soutnwest quarter (N/2 SW/4) containing acres, more or less, Idaho Creek Beet Dump ' Township 3 North, Range 68 West, Sixth (6th) Principal Meridian . . ' I Section 33: Portion of Northwest quarter (NW/4) containing 1.96 acres, more or less, Piling Ground at Kirkland , ' Township 3 North, Range 67 West, Sixth (6th) Principal Meridian Section 21: Portion of Southwest quarter (SW/4) containing 1.52 acres, • more or less, Piling Ground at Gowanda • i• Township 2 North, Range 68 West, Sixth (6th) Principal Meridian - Section 31: Portion of Southwest quarter of the Southeast quarter (SW/4 5E/4) • _ containing 2.15 acres, more or less, Piling Ground at Plumb - t - Township 3 North, Range 68 West, Sixth (6th) Principal Meridian Section 10: Portion containing acres, more or less, Mead Piling Ground Township 4 North, Ranee 67 West• Sixth (6th) Principal Meridian ' Section 1: Portion of Southwest quarter (SW/4) containing 4.25 acres, more - or • . . • . - less, Adna Receiving Station C , • Section 1: Portion of Southeast quarter (SE/4) containing 1.7 acres, more ; or less, Adna Receiving Station - Township 5 North, Ranee 66 West• Sixth (6th) Principal Meridian .. Section Section 33: Portion of Northwest quarter of the Southeast quarter (NW/4 SE/4) , containing 2.00 acres, more or less, Elm Dump ` . , NOTE: It is the 'specific intent of the Lessor herein'to lease L. this o11 and gas lease all of the subsidiary sites owned by the Lessor that . - .r', are part of or appurtenant to the Brighton, Colorado; Johnstown, - , Colorado; and Longmont, Colorado primary sites. - . • • EXHIBIT"A"---Page 10 Revised - ' .. . ' .rr., rM,.,. . eto(�Y •+op��n�lf/li 5O9 �3 • 003K 83e rl i 47 • _ EXHIBIT "B" ,) /mil a. . • By mutual agreement of the Lessor and Lessee, Exhibit "C" Is not attached to this oil and gas lease. The terms of Exhibit "B" have been agreed to by the Lessor and Lessee, and Exhibit "B" is incorporated into this lease by reference. -- - 1 • • • • - ' Exhibit "S'---Page 1 ; L-5005 itt' • .� - • r° O 1. V JUL 71977 J - Recorded of ..._......_.._.._...O'<loct ......._...M..._.........._....... 0 1x723528 7 flat. No. Mory Ann Flown*In, Rec.(., 802 WELD COUNTY, COLORADO OIL AND CASE ear ' THIS AGREEMENT made this 14thiay of June 1977. between Meld County. Colorado, a political subdivision of Cr the State of Colorado, by the Bard of County Commissioners, for its respective interests, C/O Board of County Commis- sioners, Weld County Centennial Center, 915 10th Street. Greeley. Colorado 83631, Lessor (whether one or more), and AMOCO PRODUCTION COMPANl'ssee• WITNESSETH: co • O4 • 1. lessor in retim of Ten Dollars and More Collars T($10.00 o 0 O grants. leases Min hand paid, of the royalties herein provided. and of the agreement of Lessee herein contained, y O.2 and lets exclusively unto Lessee for the purpose of investigating, exploring, prospecting, drilling and mining for and I• pr-educing oil, gas and other hydrocarbons, laying pipe lines, building tanks, power stations, telephone lines and other `—t str.rctures thereon to produce. save. take care of, treat, transport and own said producis, and housing its employees. (subject to all applicable Meld County Zoning Regulations). _.-.- e P N o Township 3 North, Range 67 West ° Section 21 : Part of SE/4 SW/4 SW/4 lying South and East of UPRR Co. R/W (0.4 acre); also part of E/2 SW/4 commencing at SW corner of Section; Thence due East along the center line of County road 1681 .4 feet; Thence North at right angles 916.5 feet to the true point of beginning; Thence South 600 56' East 200 feet; Thence • 7 Southwest and parallel to the UPRR R/W 75 feet; Thence at right angles North 600 56' West 200 feet; Thence Northeast and parallel to the UPRR R/W 75 feet • -7 to the point of beginning (1 .0 acre) 1 . I • r 1 51 .:` ; K 1.'i23)2 8 �i92 ,i•N In addition to the land above described, Lessor hereby grants, leases and lets exclusively unto Lessee to the same :C; extent as if specifically described herein all lands Owned or Claimed by Lessor which are adjacent, contiguous to or form a part of the lands atove particularly described, including all oil, gas and other hydrocarbons underlying lakes. rivers, streams, roads, easements and rights-of-way which traverse or adjoin any of said lands. For rental payment •'1 purposes, the land included within this lease shall be deemed to contain 1 .4 ac re4X whether it actually 1 comprises more or less. 'r,';+ ,. . �. tij 2. Subject to the other provisions herein contained, this lease shall be for a term of 2 years from this date (called "primary term") and as long thereafter as oil, gas or other hydrocarbons. is produced from said land hereunder, "•`1' ,," or drilling or reworking operations are conducted thereon. ;. 'k),) k 3. .e royalties to be paid by lessee are: (a) on oil, one-eighth of that produced and saved from said land, the ^e. kh,4 same to be delivered at the wells, or to the credit of Lessor into the pipe line to which-the wells may be connected; -,:7g: lly Lessee may from time to time purchase any royalty oil In its possession, paying the market price therefor prevailing :,.,a±: " for the field where produced on the date of purchase; (b) on gas, including casinghead gas or other hydrocarbon sub- (;s.l.stance, produced from said land and sold or used off the premises or in the manufacture of gasoline or other products k!_gt '.;fjrj therefrom, the market value at the well of one-eighth of the gas so sold or used, provided that on gas sold at the l' - I':v, wells the royalty shall be one-eighth of the amount realized from such sale: on sulfur the royalty shall be fifty 1'`--"'Y !,:S' ., J cents (WC) per long ton. Lessee shall have free use of oil, gas, coal, wood and water from said land, except water :+y:?; {S; from Lessor's wells, for all operations hereunder, and the royalty on oil and gas shall be computed after deducting e, +�;Ff any so used. If a well capable of producing gas In paying quantities is completed on the above described land and is it'.: y x :1 shut in, this lease shall continue In effect for a period of one year from the date such well is shut in. Lessee or a^;r 3 any assignee may thereafter, in the manner provided herein for the payment or tender of delay rentals, pay or tender :`:•., { •• to Lessor as royalty, on or before one year from the date such well Is shut in, the sum of 5100.00 per well• and, if - fi;c such payment or tender is made, this lease shall continue in effect for a further period of one year. In like manner , ,, l!'• and upon like payments or tenders annually, made on or before each anniversary of the shut-in date of such well, this .- �;� lease shall continue in effect for successive periods of twelve 112) months each. V's './ j 4. If operations for drilling are not commenced on said land as hereinafter provided, on or before one year from "^- 1441 this date, the lease shall then terminate as to both parties, unless on or before such anniversary date Lessee shall pay or tender to Lessor, and shall continue as the depository for all rentals payable hereunder regardless of changes '•' tt in ownership of said land or the rentals either by conveyance or by the death or incapacity of Lessor, the sum of % v: ' t%; One and 40/100 Dollars ($ 1 .40 ), (herein called rental), which shall .:;., cover the privilege of deferring commencement of operations for drilling for a period of twelve (12) months. In like " a manner and upon like payments or tenders annually Cie commencement of operations for drilling may be further deferred a tit - jxK for successive periods of twelve (12) months each during the primary term. The payment or tender of rental herein r ..t referred to may be made in currency. or check at the option of the Lessee; and the depositing of such currency, or 1 , check in any post office, properly addressed to the Lessor, on or before the rental paying date, shall be deemed pay- ment CCC as herein provided. The down cash payment 1s 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 I, -. lease as to such portion or portions and be relieved of all obligations as to the acreage surrendered, and thereafter f.:.;, ii; the rentals payable hereunder shall be reduced in the proportion that the acreage covered hereby is reduced by said ' 3;i release or releases. .:;;T$7. y, t sH 5. Should any well drilled on the above described land during the primary term before production is obtained be 4'-`: 4, a dry hole, or should production be obtained during the primary term and thereafter cease. then and in either event, ` ;'s if operations for drilling an additional well are not commenced or operations for reworking an old well are not pur- ° • ,.n sued on said land on or before the first rental paying date nex' +..ceeding the cessation of production or drilling p;Nkj" ', nr reworking on said well or wells. L—en this lease shall terminate unless lessee. on or before said date. sha" re- '• .ti• 'O sume the payment of rentals. Upon resumption of the payment of rental, Section 4 governing the. payment of rentals, I r' shall continue in force just as though there had been no interruption 1n the rental payments. If during the last year ,.}, of the primary teen and prior to the discovery of oil, gas, or other hydrocarbons on said land Lessee should drill a 1.;:, • S dry hole thereon, or if after discovery of oil, gas or other hydrocarbons before or during the last year of the '�•-r E`, s' primary term the production thereof should cease during the last year of said term from any cause, no rental payment t , q or operations are necessary in order to keep the lease in force during the remainder of the primary term. If, at the I'-;?-hq. expiration of the primary term, Lesser is conducting operations for drilling a ne, well or reworking an old well, tots ��"w •i� lease neverthelessshall continue in force as long as such drilling or reworking operations continue, or if, after the c Cr expiration of the primary term, production on this lease shall cease, this lease nevertheless shall continue in force (;2 e" ne if drilling or reworking operations are commenced within sixty (60) days after such cessation of production; if Pro- duction is restored or additional production is discovered as a result of any such drilling or reworking operations, conducted without cessation of more than sixty (60) days. this lease shall continue as long thereafter as oil, gas. (:1, J r i. other hydrocarbons or other mineral is produced and as long as additional drilling or reworking operations are had ;!,:.:114,- without cessation of such drilling or reworking operations for more than sixty (60) consecutive days. t}1x6 ;J 6. Lessee•at its option, is hereby given the right and power to pool or combine the land covered by this lease, f i,�pf•• or any portion thereof, as to oil and gas, or either of them, with any other land lease or leases when in Lessee's ha = judgment it is necessary or advisable to do so in order to properly develop and operate said premises, such pooling to i•J.?�s be into a well unit or units not exceeding forty (40) acres, plus an acreage tolerance of ten per cent (10t) of forty ' " (40) acres, for oil, and not exceeding six hundred and forty (540) acres, plus an acreage tolerance of ten per cent CliAo- ' - (lot) of six hundred and forty (640) acres, for gas, except that larger units may be created to conform to any spacing k `3 r 'Jr well unit pattern that may be prescribed by governmental authorities having jurisdiction. Lessee may pool or c;.m- 'yr�'• • � bine acreage covered by this lease, or any portion thereof, as above provided, as to oil or gas in any one or mre K ti•f r, r strata, and units so formed need not conform in size or area with the unit or units Into which the lease is pooled or combined as to any other stratum or strata, and oil units need not conform as to area with gas units. The pooling in '4; 'p1.. -....."':."it'://..7-4:7::r ('r 'J - :,' .�;" +qT+5 'u, ` .a <-e'+ f+r_ p2.S7,•••:'...."•!_ 0 . vr 7 S,S .. . %m a, .%•,,,/.4-*. m fs"•{- ..1.0' w _ .y %,V h,� y,Y, y, nfv, 1,+fx•V% ,4' s I•i4 ' •• :�• r + ism ,lti1•. t� A. • , 'av ..7 � kH• fiivfi:_--n 4.t t. ..%' ;ai"'L''':El. •-. .x -s •,- •-• . `frfr .2 art . 69 sw 802 , 172JJ4b j,, IP t./- 3 $"s 4 l L f i,", .: one or more instances shall not exhaust the rights of the Lessee hereunder to pool this lease or portions thereof into :.,�I„ other units, lessee shall execute in writing and place of record an instrument or instruments Identifying and describ- .n%f' },,2 1ng the pooled acreage. The entire acreage so pooled into a unit shall be treated for all purposes, except the payment 7' of royalties, as if it were included in this lease, and drilling or reworking operations thereon or production of oil E='i•.,. or gas therefrom, or the completion thereon of a well as a shut-in gas well. shall be considered for all purposes. �.. 'y, a except the payment of royalties, as if such operations were on or such production were from or such completion were '. ..; s on the land covered by this lease, whether or not the well or wells be located on the premises covered by this lease. ;•{��;i :Y!lJ In lieu of the royalties elsewhere herein specified. Lessor shall receive from a unit so formed, only such portion of r',' the royalty stipulated herein as the amount of his acreage placed in the unit or his royalty interest therein bears I 'y".%r ,. , to the total acreage so pooled in the particular unit involved. Should any unit as originally created hereunder con- - • ^, ' tale less 'hen the maximum number of acres hereinabove specified, then Lessee may at any time thereafter, whether I AY A 'w A. before or after production is obtained on the unit, enlarge such unit by adding additional acreage thereto, but the •,,?,r enlarged unit shall in no event exceed the acreage content hereinabove specified. In the event an existing unit is ;'. *�. so enlarged. Lessee shall execute and Place of record a supplemental declaration of unitization identifying and `_,,, describing the land added to the existing unit; provided, that If such supplemental declaration of unitization is not •fg filed until after production is obtained on the unit as originally created, then and in such event the supplemental • -- 1' declaration of unitization shall not become effective until the first day of the calendar month next following the py filing thereof. In the absence of production Lessee may terminate any unitized area by filing of record notice of � ; ; ' - •' termination. """ddd 4- 4t 7. Lessee also shall have the right to unitize, pool. or combine al' or any part of the above described lands �,�'j with other lands in the same general area by entering into a cooperative or unit plan of development or operation• s£ ' ' x .t approved by any governmental authority and, from time to time, with like approval, to modify, change or terminate :10 i.� any such plan or agreement and, in such event, the terns, conditions, and provisions of this lease shall be deemed yymodified to conform to the terms, conditions, and provisions of such approved cooperative or unit plan of developmentt-'.i: or operation and, particularly. all drilling and development requirements of this lease, express or Implied, shall 1 . be satisfied by compliance with the drilling and development requirements of such plan or agreement, and this lease • ^t '- shall not terminate or expire during the life of such plan or agreement. In the event that said above described ,{r� lands or any part thereof, shall hereafter be operated under any such cooperative or unit plan of development or I'-... t • operation whereby the production therefrom 1s allocated to different portions of the land covered by said plan, then the production allocated to any particular tract of land shall, for the purpose of computing the royalties to be paid hereunder to Lessor, be regarded as having been produced from the particular tract of land to which it is al- r ?, located and not to any other tract of land and the royalty payments to be made hereunder to Lessor shall be based i i upon production only as so allocated. Lessor shall formally express Lessor's consent to any cooperative or unit ! di.- _ �F plan of development or operation adopted by Lessee and approved by any governmental agency by executing the same '; upon request of Lessee. i• ti s • ,; 8. Lessee shall have the right at any time without Lessor's consent to surrender all or any portion of the :::..,']. leased premises and be relieved of all obligation as to the acreage surrendered. Lessee shall have the right at".1. any time during or after the expiration of this lease to remove all property and fixtures placed by Lessee on saidr fhb 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 nowon 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 ___w N}�,4'. to be returned to original condition wit: In time designated by lessor, . .. 9. The rights of either party hereunder may be assigned, in whole or in part, and the provisions hereof shall f . . ft extend to the heirs, successors and assigns of the parties hereto. nut no change or division in ownership of the land, y rentals, or royalties, however acconplish•d, shall operate to '•rge the rbligations or diminish the rights of Lessee. - :w•� ` ffj No change in the ownership of the land or any interest therein, shall be binding on Lessee until lessee shall be !''v` , ai furnished with a certified copy of all recorded instruments, all court proceedings and all other necessary evidence ,`,yx,, t;1: of any transfer, inheritance, or sale of said rights. In event of the assignment of this lease as to a segregated `' "y'4. ,-. 4 ya portion of said land, the rentals payable hereunder shall be apportionable among the several leasehold wners ratably according to the surface area of each, and default in rental payment by one shall not affect the rights of other lease- 1•,',t}, hold owners hereunder. In case Lessee assigns this lease, 1n whole or in oart, lessee shall be relieved of all obis- -.F. • sa nations with respect to t`e assigned portion or portions arising subsequent to the date of assignment. ]N_ { a 1st All express lora implied covenants of this lease shall be subject to all Federal and orate sees, Executive y Orders, Rules or Regulations, and this lease shall not be terminated, in whole or in part, nor lessee held liable in mtIT - damages, for failure to camply therewith, if compliance is prevented by. or if such failure is the result of, any :; s I. such law, Order, Rule or Regulation. or if prevented by an act of God, of the public enemy, labor disputes, inability v..•{_ !!'''' to obtain material, failure of transportation, or other cause beyond the control of lessee. ., r • - If during the term of this lease, oil or gas or other hydrocarbons is discovered upon the leased premises, but -f` e 'a �" Lessee Is prevented from producing the same by reason of any of the causes set out in this Section, this lease shall 1 , °. nevertheless be considered as producing and shall continue in full force and effect until Lessee is permitted to pro- v t duce the oil, gas and other hydrocarbons, and as long thereafter as such production continues in paying quantities p �• or drilling or reworking operations are_ continued as elsewhere herein provided. ;, . ;; • r.c 11. Lessor does not warrant title to said real estate or to the mineral interests In said real estate, however.to • it is agreed that if Lessor owns less than 100% of the minerals, then, and 1n that event, the royalties and rentals to s, 31st , - 7_, be paid Lessor shall be reduced proportionately. i ,hr 12. Not withstanding in a provision of this lease to the contrary, no operations shall be conducted on the above rid);. described land without the written consent of the Lessor. l%r0 , '1: . 1J.' Upon the termination of this lease 1n whole or In Dart Dy election or by fall ore to make payments a afore- said, Lessee or its assigns shall within thirty (30) days release by written inst;ument the land or portion thereof i-it t, 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 fs subject to and controlled by any law of the State of Colorado i now in effect restricting or limiting the powers of counties or boards of county commissioners, and any provision A.',...s herein In conflict therewith shall be inoperative and void. r'rb' 14. All of the provisions of this lease shall inure to the benefit of and be binding upon the parties hereto. • their heirs, administrators, successors and assigns. " 802 I72332s ' 4-51 `• 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 COMIISSIONERS WE OUNTY, COLORADO / •'fleiltuATTEST: / ii VI - - County Clerk and Reco s� and erk to the Bard I — By: vii" l • AMOCO PRODUCTION COUPART ' .' LESSEE:_ ; . • IorneY. In Fm (y - STATE OF COLORADO . . ) _ - SS. - _ COUNTY-17 DENVER ) Tfor Ding instrument was acknowledged before me this .5-'G^ day of j50{ , 19 1f , by T. S. YANCEY , Attorney in Fact(/for CO PRODUCTION COMPANY. vo,\�.;� ' Nifin ••lny hand and official seal. t••OTq� / ? - a r p.. 14-4-A--€1 (�1,,-y c+.s/C •. — — n, 1''• `i0 Lk(' )c Notary Public d.-. ' op N. . expires: Security Life Building • Denver, Colorado 80202 ._ MY MNBislwl Expires June 3,1978 . • - a III 1 i , f _ • t a + d a ' rx • EE@__LG 1977 1711490. . Mr/A b r«Nnla Rw.e _ _ _ its.Nei.._.. .. . ___ a'l N • • . . , . . I Or•1 • • • L' V iaAa rdro ur L5 wr^4.^alkt'r:ar iittl.YMI 6 HON[H ... Olt.AND GAS LEASE -:r Pebrua ______ u..1.Z. Mime ;.' . • rma Acataaexr.w ale 16th_____ry N--.__ �—.___._..__.._ e. . .. _ e ___ Albert D. Kurtz __ _ _..____—____— . i r,, w.r J•.tw l4a MLgouttl2..9nx_55e_Ylattevt 11._ rnlorado-_.80651-- - CnlareAn 80202_L.«.,nand :e r X4944 Y[od11rr1 on fn�agp. S.ruri[y Lije9o11diag.->s` - �eanw - ' c. Q Q_• . tsIn.lan J�En2 retake eel'= -mss—n' _ . lean ..1 M. at. — .4QyQQ i*'Lame Om N.1 MN.et W retake Nton rr..pre and t the tae and ..N Lame end •r s. N. it gm. pm p..a.Mtarsi.one lwew 1 W plrrsw.J last ila non... Mnwa.M'an..1,.m.4 scramfur 4n4 wu1«n s�l M IwwrlMMaw IM we1 Wilding M. • ,v.1.. .seer seep telephone how and no n and _ :'.. ' Ome r.ner.to pasha man.u alit J.Int.bsrMt.W mo saw flaw...nA M n..ha moderns Me Minn Man)o MO h W H Weld_..__,_ _c..gv. Colorado— _,ts.It. Township 3 North, Range 67 West, 6th P.N. -- ------- — , 1 Section 21: Northwest Quarter (NW/4); West Half of the Southwest Quarter (W/2 SW/4); East Half of the Southwest Quarter (E/2 SW/4) except beginning at the Southl:cat corner ofPRN e Section 21, thence East 1681.4 feet, North 916.5 feet North 29'4" East along U right-of- • way 20.8 feet to beginning, thence South 60'56" east 100 feet Northeasterly at right angles ' - 75 feet South 60'56" East 100 feet northeasterly at right angles 100 feet North 60'56" West 200 feet.Southwesterly along right-of-way to the place of beginning. , red ...) 6 month '• .-skin MN leis le pen all ahenna,.ano,of mfr months 1LY tae Walled"IMner trew',eN u M.[thenher u all se na Y.slept Iron u4 Ind f I.N with • •. to lie. t.0 L The myrtle.b b MN M lw.n.mensal w NL wr`r lt� III.'ai.f N�N1 N Wm from gait the.set IIY.41 Is ks t.1 et the 1i.W • r-1 .writ of now into the pipe Ilse b l which Ord •mil,a•.n be I initial a'xMN as..MM sums riMlef�Ira • r> .d oprior.MJr loosing 1«IM f th weds n we .n Me 41e e W l• 1\Iwe Ind root mid land. on w red d that led gasnnn•M n Mr the re of rust !�' radon then.. M ilea• at W y 1: tIe.of old wF.Y Mrr en u IM monN 1Mewith bill S p.4 MIM Ow omit'. or t r...Iwe.n a.'be oneorigat:pap-,.elly.anrod r M«.,uanr'lat h dart t••• fte the L... MM on..M\mid 4 le shot it led tMMIM at amend 1u •.Is the emu of ILO Mr ' n.Ined.' M Lw Moll r I II,.11 tend Ma+•r. • lank ewer, le It en Lon...' nib.roe V I ring aannalsjrie..he euadst.Iron ,and the rn.ratong tr anniii enmities. gas all to emir.A slro oeet MspJne m.sal wl urn me. ham u4 '-; nitro IN u mho M led Fur.w..I .wtY. MM JI .- h M I. Men the elan wJnlwer to sal ninny best to MM er� .wN�Nln I.N ,M' with In o•ew^IhV.nN l N ,r _ M then. fed M Omen Muee M Iw,My.e1w. sal en .d load porno in IIL IM•r�we • a Y Inner MVMe.M Ymot es In M elm tarfn'p e'er to authority w when e do s.'twig.I.abs nor of Lunn.Irwe4 Jr .Y N ell the we Ire* porn.hats motel f« II Mender • .4 M F,.ntlells .tend y .sl 1. • .adon nM1 owl pealed 1 fee Yu'mat en.to Miller Jail nbe.Mlntis.red I. . tr..n..tacit%Aar M.Me et IM than.f.•4r1 that•FuN gammornl- _ silk*.bsp. L.•ini twin onetlan 4 I,, ...van.M,•ntYMnlati Ire ttLeeesnldeIto 1t•larger portionsMan Mr''of rys.l wvnWine anoafter n nend ky 44 I.... gated oar solar.. r Iran Iran .. , M,N li.I a rInn'lmin ell In say on vsM In .I ono r...re Mira 1M I. lied\r paling u sa Satin.r ' a. M Ml .la and lart�! 14u. ,n redo.r area with tr unit cm Ina ..M.p.Mane a MM.s•t1«mmlul d any net et sae Well se men at as t i .ooll xlww wed., rag .1F ling Is .Inner roll e sal W.NF4 of Lon bonne ma bed ban ..tin Mw 1 Into ram n.w Ioiewe stall lied for 1 la a aaM.41e rends at Ow arena In w.Ml 1F iced.^.u, \M. • .NI • Innt tae ^. M MI^u t the ilex'MuM..n so.M,e.she"to'reon molt may la may at th. W It s sat le mend u Meipd. MM to Woo ems ore. .r . sh1 el so Ol f•gvelw Milo ere In urn[ ,M lu F,NNue Mn IwN r fled err..nralFu I the frilling N.well h•r MI or . Me none In.rt n.nnened.Cronin l«drillln w r"neon at ell e i. has,. any Part.f the nth Irk salt aped min woe nerd `eM all«Irt Jo eon N.M " • Weds ant a On roar men en et washer .a pasha Iil Isis.. sa w,,wnitwbn,M Me drills..w r nlu.Lw of oil rem hr.Ian enrr'l Sr N I.Ir,utrvantr IM ISnuurnl tilt hi tag Ow men silt...all Menr/Ner thls Inn mod the n nth• w shed anthertInn. be-ln well ee rened,lshall Mated me the he tarn forrenees•II penmen sand art the r.sat of myrtle..g f•4rena from Was.akd oaks.l.u I no to f Me and an. a ens .Morn la tre Fun r«red moose a amening the roman 4.Ma omtn of MtItIr and prnenu at of prolusion solar\el them.Mall • 04 emit W.rola man N the e1in. o or N t'tn a et•It N ttwn the pealed toll.there lw.Y enned ban IM poll shall snit alfteer'rentin that 1 en anal onatine n the rand n te. • , On pmrol M M et red ell and 1'niental JIM et is tow' ,lOwn roll aa 4�the eelpnMl roll the reran nerd bn ^NY on eadme 'nonen, MJ t.M r1 and Melon I.IM min rn4 Fin h tb'WI of ' as. IeMll In 1M pooled nit.'Into,Mans.dual F t.uerr.d w Ow Imam ef noluelM,wiener 4 4 ell.tad go.«JIM se Mao se IluaM1 Yr 1M land l !y this hour mil Medial la mpg no whole It Is w welt MO •. For ewe. mot ro e m Inure wch hn led Ned mitt and flu MI well Ilea M well1d•Ill hr ro weed salhe Ins r protean'fan porn lea. , ma cola will net l fie!shoat Ind a•in.Ma ..0 . ^. 'r millet a M flashg an..t fie. NI snit. '- . I. 11 at the retrain of W then.. Mw • ^II gas M Lel,e yea✓•• . 1 ml p,'f•4t.Inc ha Ii Mil.et One Wel M'Mt of the Mrv'Ignun M.w.W M...akall N I.Illing we morn•YnNMne t w moo In c+eMll .^ 's • ea•ls.gar.en.l timed n.bh In"1F moral.N«1 n a.. Mo.1Mcolor an.or soweeldn•el 'ell slam Is prone''loon wN YN.u Iroan dal IMe1 Wn.4l II. sled 1M refrain of 1l bs unary tan l nbntFw and alter 11 r gas F MMuM hmo at Me doll's,o me r.ai.w'\rl'A'•�'t'14 hFItl-6n ,.p 1M neon of mentiem Own. .,k ern fawn t, .War In Mail I asae It Lam rotemen h merngw.at•'' .41 en sea.lm N Mn n' Iw 4n.an'it•smolt I. the NI' re.. In nme em, Mahn.ihhslnlles all e le endear Ian said looter law OM Pled therewith.An M.n it 1m.bar molt I theMw nand of N n one 1 •m • la 4' tad. een Minnenr4Me Wilk Ike MY .,...1.n the AFWIr hi Inn h Ior to niaatle Iw nerd h W s ,.enit.non of Own eern or n "^"•'� are the note's. .An r e Mn of nt:4:fir'' .a r..anti n e.e l a 11 .a Beth IM MMNmM an tom on a Mori by Mont I M..Nlen no rare l4 in -r a_e........... •••••••••• Mn1 pool - .IF ..fie. wN thin under lleuMas ei Ins rs tam. atps...._e I a.u.i.A ere .uaas l tw nth Nluf men^I tan u•armoury• hon or Mtar 'It .,of roan urn Ml.nn all the M.eri\l neon an Inn ever .tb.M nine a per r phut of 1 Own,nto.n r 4Y d .r.,nth portion«It of t and ik nnl of of kip,paNnu m the es.uartd al. L, Inn*hall Ion ped riot at an Wm daring r after Me embark.N this Mee in r.11 pin Mt mhos.and(Ilan plated b Lome n aid Ian 4 henna.the f±4 b 1•-.she non all coins.then morn S.Inn.Law.will M.tr ell n. lino ham saloon no boa.s a well shall 1 • drilled The .heMr•1 far.4 any.lean r Mn now a an land wl.Lwl Lon'.rant. 7. 1M r4.0 ef cipher ratty Maned new\e aimed In 44 w h p.'L en M neoLMt.tend Man l shoed m shots at d eunrr the w.M also to a rail n Anon In fan.Ipso of theOrd wrn'lads Mall binding w Le toner nt.fill Mir,, Ilea ran af to ter Lent.l'.Il.MMUM y mLMI by noon,Ira: M o n. t nn.1 t o of M ln.n,naf w Ina tae ninon.non Mon Ind a 5,5*at salmon alul F w,K rill-ole se I. g.ell i yfaNhrene.lio -.f nAY Minn. Mond,sh.4 . raqulslf u hens h whole I.wart _no entitled s noon le n o MMMlda Palm. Own so u and trill fanYLl idle a near rah LMM. ,(ale all ism.nnFa Orienting Moro. •� all 1«'01, owns .osdeFF lulnar.t M by n anN u r m.1 I. The Lr.ect I Wrenn of I.f rapd.hen erYlne Mwnhes f•11 nal n ig'it lan S.d of.t'nosed relied nL r Ira In Wt sin smite ow al u U:Mee . • Leber state s e..5 Pe MnI.Y tar F 4!se rwnn llnk.n hen'in mpart.e wren •• ruled. Mein. kermN,5,4 !r. If rrnl.as.••1 Iyn anlllan err this Yeu.Lawn aNnu11 welly Lisle h mew M rno Ihnn wit IF qJ eosin Inn',spewed b slam of IoM WInoML h 41wry,soli r slam 4r aped cassia of ash In tint M,e. to Na stator ,the.M Iaslttn of NI r N Iry of s e tra.'tes a.uN Mw, 111 n M 11 develop he.cream.rained rroder .41 lea. .n Ire In dweMJns thh obligation shill la r n t i.e nein Is rill garage at well re fenf .1 l.w of Man sated Myron and omN. J rennet JI Paying nano,and tae ell re 40 n plea gar agr eMans es wand Ill.of 544 maw of the ono land tonne M - W ent ail prdri.r 1* pan. LuaWMa I. L..«M•.. w.e,aa.I earn b erfwJ M YW m oN bid ad.grno IMt Iwao J W MM run reeling fir u.. .anal a aeon W nJ land;ale n .nA in t Lore ream.It.pall M.rlo n.'en snt Ilea with the right mesa spa ale apply an _ ---• • eapp a. IMann temird ntent 1 the MI sledI s.la. Wor itham I id lid le Iss.lthe e.HMO bolo wt a look o relate. On tan.In he faller J MIrt.It Is need.4 Lamer roll be Lan Mend ' pen+nMnl.rlr.Heel any eN es ve of W.ten a.sN tenet. fall m townie t.M Lv.It shall nentMlae Se\.ling%P.W parr r inn vlinr M r.N, n am w It. SMn4 L...be p.. 1.4 fan.aal$Mr silo It 1x161.an.aat a tr.In.no e•wdf4r drill's.a pe.rhlie motif e • than f"w pommy ell gm Y.nge.w by ales nity N„w Inanity aaln taw material. by matrons et Ian • Went a Ms w end seder.Ire u tmMIMn of sawn al p luny.the'while a.fr•MN.I.'...i ell n,M te...ply ash met on Moll he pMNed.an Len soil M M IMLM la damn far t MNr..n to amply therewith: ad thin We W4 M nMLJ AIM and Mfr roman M fsnnn'y any en eon Ire.manna.griffin« Ling a'rYlwu w«Imo two worn.MI as gas Ire.W tend inn:,W W time.hole Laps loon powered shell sea M rated flak.%Leon.afMn I.thin in...m Me twfan nNltM.NMi. - _ • Of WOVEN WSEUOn,OM MNraral M neon n the data that.M.orient. Lessor shall have the rivila at his own risk and taken,* of Ilsini_gas from any_gas well �_ Le._,_.-. _ on ii id mirror stoves and inside lights in the principle dwelling located on the leased • • premises by asking-his -eemeetiovr-thereto. .—._—_ —__.___ _ Alban_ _ — • . — --____'-_ '. 34- 1711490 z "0 789 • " INDIVIDUAL ACKNOWLEDGMENT ' - STATE OF 1. I Coe*: A//�'' TM !Droning Instrument was acknowledged !don me Dia—/-sZe- dT or �.GJ}U!a•.•(.G- lodL_bs.. FI �/fr `/J Mr c+mw'Ulov M ' f.i.(nit2y) • c .I:i -• Nona Iii ' l .' _ 'O V/ 1 i a 1. t. INDIYIDC AL ACKNOWLEDGMENT 1 iIt 1 1 tl ^ STATE OF } , . County or day of r: ; M T foregoing instrument no aclmowkd{ed I afore me Nh 1g__by e L• J My Comw3nlon mayhem .1f--- Non Fob& t 9 II I• cLI • F I • O e to gr If M 2LLHZ r t ��`� .! m0 o v • gr'•1 2. O 2 il g E el = ? • � + 9• d z h' • v `t' 1, . l`- f • _• ' .. ,, i II Vt IAt 1 Ll (\ 1� _ _ - '1 I' d.l, • AR24293219 COI-M0445 REC DOC 2429389 8-1482 P-1061 03/08/95 04:26P PO 1 OF 6 30.00 Weld County CO clerk & Recorder OIL AND GAS LEASE THIS LEASE made effective on the 20th day of July, 1993, between UNION PACIFIC RESOURCES COMPANY, a Delaware corporation, authorized to do business in the State of Colorado, whose RESOURCES,INC..,dwhose address is 1999 Broadway,Suite 3600,Denvx 7, Fort Worth, Texas er,CO 80202,Lessor, Lessee. WITNESSETH : (1) Subject to the exceptions and reservations set forth in: (a) Quitclaim Deed(s), as applicable, dated as of April 1, 1971, from Union Pacific Railroad Company to Union Pacific Land Resources Corporation, filed for record April 14, 1971,and appearing in Book 644, at Reception No. 1565709, in the office of the County Clerk and Register of Deeds of Weld County, Colorado, and (b) Mineral Deed dated September 3, 1986, from Union Pacific Land Resources Corporation to Lessor, for a good and valuable consideration,receipt of which is hereby acknowledged,and in consideration of the royalties herein provided and of the agreement of Lessee herein contained,grants,leases and lets unto Lessee for the purposes of investigating,exploring,prospecting,drilling and mining for and producing oil and gas (including, without limitation, nitrogen, carbon dioxide, hydrogen-sulphide, and other natural gases and products associated therewith)and associated liquid hydrocarbons, and, subject to the provisions of Sections 14, 15, and 16 hereof, laying pipelines, building tanks,power stations, telephone lines and other structures thereon to produce, save, take care of, treat, refine, process, store,transport,own, sell and dispose of said oil, gas and associated liquid hydrocarbons, the following described land in Weld County, Colorado to-wit: One hundred percent (100%)of Lessor's right, title and interest in and to the oil and gas in and under: Township 3 North. Range 67 West Section 21: W/2 (UPRR Row) Limited from the surface of the earth to the stratigraphic equivalent of the total depth drilled in the initial test well, located in the N/2NW/4 Section 30, Township 4 North, Range 66 West, Weld County,Colorado. Lessor reserves all other rights, horizons, strata, and formations, including,but not limited to, the right to the concurrent use of the surface and the right to drill through the leased interval. For shut-in royalty payment purposes,the land included in this lease shall be deemed to contain 17.14 acres, whether it actually comprises more or less. (2) This is a paid-up lease and there shall be no requirement for Lessee to pay delay rentals. (3) Subject to the other provisions herein contained, this lease shall be for a primary term which expires at twelve o'clock (12:00) noon, Mountain Time, on January 16, 1996, which term shall hereinafter be referred to as"'the primary term", and as long thereafter as oil,-gas, or associated liquid hydrocarbons or any of them are produced from said land in paying quantities hereunder, or drilling or reworking operations are conducted thereon under the terms hereof. - 1 - Co-1296-rO 2429389 B-1482 P-1061 03/08/95 04:26P PG 2 OF 6 (4) Subject to the right of election reserved to Lessor below to take its share of production in kind, the royalties to be paid by Lessee are: (a)on oil and on liquid petroleum products recovered at the well, twenty-five percent (25%)of the market value at the well of 8/8ths of such production,but in no event less than twenty-five percent (25%)of the amount realized from such sale; and(b) on gas produced from said lands, the market value at the well of twenty-five percent(25%)of the gas sold or used off the premises or the market value of the gas at the tailgate of the plant to which the gas is delivered,plus the market value of the products recovered when such gas is processed; provided that on gas sold at the well by Lessee the royalty shall be twenty-five percent'(25%)of the amount , realized from such sale. I Pfcee shall have free use of oil and gas front said land for operations on the lease premises, and the royalty on oil and gas shall be computed after deducting any production so used. The royalties payable under this lease shall be free and clear of costs,expenses, or deductions for exploration,drilling,development,and production,including but not limited to,costs of dehydration, storage, compression, separation by mechanical means and stabilization of the hydrocarbons. If Lessee treats and/or processes its gas in a natural gas plant (either on or off the lease premises), whether in Lessee's plant or in the plant of and under contract with a third party,Lessee shall treat and/or process or cause Lessor's gas to be treated and/or processed;in the event of any such treating and/or processing,Lessee shall be entitled to deduct from the value of the products recovered by the treating and/or processing of the gas, or if Lessor is taking its production in kind to charge Lessor for, the actual cost incurred by Lessee for such treating and/or processing, which costs shall include gathering or transportation costs required to transport the gas to the plant. If Lessor elects, Lessee shall deliver to Lessor in kind its royalty share of oil and other liquid hydrocarbons saved at the well, into storage tanks on the lease premises, products recovered in a processing plant, into storage tanks or onto storage sites at the plant, and gas, at the tailgate of the plant, if processed, or at the well if the gas is sold at the well. In the event of such election with respect to oil and products, Lessor shall give to Lessee not less than sixty (60) days notice of its election and shall take said royalty share in kind for a period of not less than six(6)months following the termination of said sixty (60) day period. Any deliveries of production are to be made from Lessee's facilities at times and amounts which equitably adjust deliveries between the parties. With respect to gas, Lessee shall give Lessor notice if it intends to enter into a gas contract on its share of the gas, and Lessor shall have a period of thirty(30)days from receipt of a copy of the gas sales agreement which Lessee is willing to execute to notify Lessee in writing that Lessor elects to take in kind and separately dispose of its share of such gas. If there is a gas well on the lease premises or on acreage pooled therewith capable of producing in paying quantities, but from which gas is not being sold, and in the absence of oil or other production from said premises sufficient to maintain this lease in full force and effect,this lease shall be extended for a period of ninety(90) days from the date such well is or was shut-in, whereupon the lease shall terminate unless Lessee shall pay to Lessor as royalty, a sum equal to One Dollar ($1.00)per-acre covered by the lease,which payment shall be made to Lessor at P.O. Box 7, Fort Worth, Texas 76101-0007, ATTN: Land Manager, on or before the ninetieth (90th)day from and after the date on which such well is or was shut-in,and annually thereafter a similar payment on or before the anniversary date on which such well was shut-in. If such payment, or payments, are timely made, it shall be considered that gas is being produced in paying quantities from the lease premises under all the terms and provisions of this lease(but only for so long as the well continues to be capable of producing in paying quantities). If any portion of the lease premises is included in a pooled unit,the amount of the shut-in royalty applicable to the Lessor's interest therein shall be reduced in the proportion that the amount of Lessor's net mineral acres included in any such pooled unit upon which such gas well is situated bears to the total acreage contained in such pooled unit. Lessee shall be obligated to use diligence to market gas capable of being produced in paying quantities from a shut-in well, but shall be under no obligation to market same under terms, conditions or circumstances which are unreasonable. (5) Lessee may at any time execute and place of record a release or releases covering any portion or portions of the above described lease premises, furnishing a copy thereof to Lessor, and thereby surrender this lease as to such portion or portions and be relieved of all obligations as to the acreage -2 - surrendered. 2429389 8-1482 P-1061 03/08/95 04:26P PO 3 OF 6 (6) If Lessee is drilling a new well or reworking an old well at the expiration of the primary term, this lease shall continue in force as long as such drilling or reworking operations are diligently prosecuted, and if such drilling or reworking operations result in production of oil or gas or associated liquid hydrocarbons in paying quantities, then for so long thereafter as such production continues or this lease is otherwise maintained in full force and effect under the provisions hereof. If production on this lease ceases after the expiration of the primary term, this lease shall continue in force if drilling or reworking operations are commenced within sixty(60)days after such cessation of production; if production is restored or new production is discovered as a result of any such drilling or reworking operations,conducted without cessation of more than ninety(90)days,this lease shall continue so long thereafter as production in paying quantities,or additional drilling or reworking operations are had without cessation of such production, drilling or reworking operations for more than ninety (90)consecutive days. (7) At the expiration of the primary term, this lease shall terminate as wall lands which are not located in a governmental section in which there is a well on the lease premises or on lands pooled or unitized therewith,producing oil or gas in paying quantities,or a shut-in gas well,and in any such producing governmental section or sections,this lease shall terminate as to those depths lying below the stratigraphic equivalent of the deepest producing horizon in each section of land. If Lessee is engaged in actual drilling or reworking operations on the lease premises or lands pooled or unitized therewith, at the expiration of the primary term, this provision shall be suspended for so long as Lessee continues such drilling or reworking operations on the lease premises or lands pooled or unitized therewith, with no cessation of more than ninety (90) consecutive days.between the completion or abandonment of such drilling or reworking operations on one (1) well, and the commencement of actual drilling or reworking operations on the next well; provided, further, that irrespective of any such continuous drilling or reworking operations,the termination of this lease as to non-producing lands and depths shall not be suspended for more than five (5) years from the expiration of the primary term hereof. If the lease premises is included in a Federal Unit then for the purposes of this provision the references to lands unitized with the lease premises shall include only those lands which are included in an approved participating area. (8) Lessee, at its option,is hereby given the right and power to pool or combine the lands 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 I esrOP's judgment it is necessary or advisable to do so in order to properly develop and operate said premises. Any such pooling to be into a well unit or units not exceeding forty (40) acres, plus an acreage tolerance of ten percent (10%), for oil, and not exceeding one hundred sixty(160)acres, plus an acreage tolerance of ten percent(10%),for gas,except that larger units may be created to conform to any spacing or well unit pattern that may be ordered by state governmental authorities having jurisdiction. Lessee.may pool or combine acreage covered by this lease, or any portion thereof, as above provided, as to oil or gas in any one or more strata, and oil units need not conform as to area with gas units. The pooling in one(1)or more instances shall not exhaust the right of the I esve 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 describing the pooled acreage. In order to be effective,Lessee shall furnish to Lessor a copy of the document pooling the 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 and reworking operations thereon,and production of oil and gas therefrom,or the completion thereon of a well as a shut-in gas well,shall be considered for all purposes, except the payment of royalties,as if such operations were on, or such production were from, or such completion were on the land covered by this lease, whether or not the well or wells be located on the premises covered by this lease. In lieu of the royalties elsewhere herein provided,Lessor shall receive from a unit so formed, only such portion of the royalty stipulated herein as the amount of its net mineral acres placed in the unit bears to the total acreage so pooled in the particular unit involved. Should any unit as originally created hereunder contain less than the maximum number of acres hereinabove specified,then Lessee may at any time thereafter, whether before or after production is obtained on the unit,enlarge such unit by adding additional acreage thereto,but the enlarged unit shall in no event exceed the acreage content hereinabove specified. In the event an existing unit is so enlarged,Lessee shall execute and place of record a supplemental declaration of pooling identifying and describing the land added to the existing unit; provided, that if such supplemental declaration of pooling is not filed until after production is obtained on the unit as originally created, then and in such event the supplemental -3 - 2429389 B-1482 P-1061 03/08/95 04:26P PG 4 OF 6 declaration of pooling shall not become effective until the first day of the calendar month next following the filing thereof and the furnishing to Lessor of a copy of such supplemental declaration. In the absence of production Lessee may terminate the unitized area by filing of record a notice of termination. (9) Insofar as Lessor may grant such right, Lessee shall have the right at any time during the term of this lease or within six (6) months after the expiration of this lease to remove all property and fixtures placed by Lessee on the lease premises, including the right to draw and remove all casing. (10) The rights of either party hereunder may be assigned in whole or in part, and the provisions hereof shall extend to the successors and assigns of the parties hereto, but no change or division in ownership of the land,shut-in payments,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 or any purchaser of production hereunder, 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. Except as otherwise set forth in paragraph 17 below,Lessee shall be relieved of all obligations with respect to the assigned portion or portions arising subsequent to the date of assignment; provided, however, that the assignment of this lease in whole or in part, shall not be valid as to Lessor until Lessor shall have been furnished a true and correct certified copy of such Assignment. (11) 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 terminate, in whole or in part, nor Inset held liable in damages, for failure to comply therewith, if compliance is prevented by, or if failure is the result of any law,order,rule or regulation or inaction,or if prevented by an act of God, of the public enemy, or labor strikes. (12) Lessee at its option may discharge any tax, mortgage, or other lien upon said land, either in whole or in part,and in the event lessee does so,it shall be subrogated to any lawful and enforceable rights of the prior creditor with the right to enforce same and apply shut-in payments and royalties accruing hereunder towards satisfying same. Except as provided in the immediately preceding sentence, Lessee shall not acquire or attempt to acquire,directly or indirectly,from any person other than Lessor, any rights or interests in the oil and gas estate in the leased lands, or take any action inconsistent with or adverse to the ownership and quiet enjoyment by Lessor of its oil and gas estate in the leased lands. If Lessor owns an interest in said land less than the entire fee simple estate, or if this lease covers less than Lessor's entire interest in said lands, then the shut-in payments and royalties to be paid Lessor shall be reduced proportionately. (13) The rights granted under this lease are granted without warranty and without covenants of title, including, without limitation,covenants to give possession or for quiet enjoyment. (14) Lessee recognizes that among the exceptions and reservations set forth in the deeds referred to in Section 1 of this Oil and Gas JPacP are the rights of Lessor's predecessors in interest to use such portions of the lease premises as may not be required for the proper conduct of oil and gas operations, for all purposes not inconsistent with such operations, and without liability for compensation or damages. Lessee shall so conduct its operations so as not to interfere unreasonably with such reserved use; provided, nevertheless, that such other use of the lease premises shall not unreasonably interfere with the operations of the Lessee. (15) Without the prior written consent of the owner thereof, Lessee shall not make any entry upon or under any portion of any railroad right-of-way or station grounds for any of the purposes of this lease, and shall not drill any well or maintain any structures within two hundred feet (200') (by surface or subsurface measurement) of: (a) any railroad tracks or buildings on such right-of-way, or station grounds, or(b)any buildings upon the lease premises. (16) Unless the requirement is waived in writing by Lessor at its discretion, no entry shall be made for drilling operations and no facility shall be installed upon any of the leased lands in which I'-cor owns the mineral rights only,until a written agreement with the surface owner has been secured by Lessor in a form satisfactory to it. Lessee shall request Lessor to obtain such agreement or to waive the requirement therefor at least thirty(30)days prior to the date Lessee intends to commence such operations. Payments out of or measured by production which the Lessor elects to pay to the surface -4- 2429389 B-1482 P-1061 03/08/95 04:26P PG 5 OF 6 owners shall be paid by Lessor out or its royalty. Lessee shall pay for all damages to surface owners' lands, buildings, and growing crops caused by construction, operations, or maintenance of facilities, shall bury all pipelines below plow depth where they cross cultivated lands,shall construct gates where nrrncary for crossing fenced lands and keep the gates in repair and closed, and shall indemnify Lessor with respect to such obligations. (17) Lessee agrees to hold Lessor harmless from and to indemnify it and any surface owner against any and all claims, demands, actions and causes of action for injury to or loss or destruction of property, and for injury to or death of any person, arising out of or in connection with operations hereunder. Lessee shall not permit any lien or other encumbrance to be filed or to remain against the lease premises as a result of operations hereunder, and Lessee agrees to hold Lessor harmless from and to indemnify it against any and all claims,demands, actions and causes of action which may result from the filing of any such liens or encumbrances. Irrespective of whether Lessor has consented to an assignment,farmout or other arrangement whereby Lessee consents to drilling or other operations on the lease premises by a third party, Lessee shall indemnify and hold Lessor harmless from and against any and all claims, demands, actions and causes of action or liens arising out of such operations. (18) Lessee understands and acknowledges that the lands covered by this Lease between Lessor and Lessee may be subject to a Gas Purchase Agreement covering gas which could be priced and governed by the good faith negotiation procedures of FERC Orders 451,45IA and 451B(18 C.F.R. 270.201). Lessor and Lessee agree that any rights pertaining to the nomination of a price for old gas or rights to invoke the good faith negotiation procedures under these FERC Orders are retained by Lessor and do not pass with this transaction. Lessee assigns to Lessor any rights under Orders 451, 451A and 451E now or hereafter earned or obtained by this transaction or the Gas Purchase Agreement, and does hereby specifically waive any tight to either request the gas purchaser to nominate a price for old gas under such Gas Purchase Agreement or in any other respect invoke or cause to be invoked the good faith negotiation procedures with respect thereto. It is further understood and agreed that Lessee has no authority or agency to exercise or implement any rights which Lessor may have pursuant to FERC Orders 451,451A and 451B. J PC'Pe further agrees that any breach of this provision could irreparably harm Lessor and cause damages which would be difficult if not impossible to ascertain and,that Lessor shall be entitled,in addition to any other rights or remedies it may have, to seek specific performance of this provision or to enjoin action by Lessee that is inconsistent with this provision. This provision shall remain in full force and effect until the earlier of (i) the date the parties hereto execute an agreement with the purchaser under the Gas Purchase Agreement whereby the parties'respective rights,if any,under Orders 451,451A and 451B are segregated and preserved, or the oil and gas lease or oil,natural gas and leases covering certain interests in the lease acreage granted by Lessor to Lessee hereunder are removed and separated from the existing Gas Purchase Agreement without waiver of Lessor's rights under Orders 451,45IA and 451B; or(ii)FERC issues a final unappealable order or clarifying statement to the effect that either party's rights under Orders 451, 45IA and 451B are not affected by the transactions contemplated hereby or the separate action of the parties with respect to such transaction and the Gas Purchase Agreement which applies. This lease is subject to all the terms and provisions of the Letter Agreement dated March 3, 1994. All the provisions of this lease shall inure to the benefit of and be binding upon the parties hereto, their successors and assigns. -5 - 2429389 8-1482 P-1061 03/08/95 04:26P PG 6 OF 6 IN WITNESS WHEREOF, this instrument is executed on the date of the respective acknowledg- ments hereinbelow, but shall be effective from the date first hereinabove written. UNION PACIFIC RESOURCES COMPANY 6114414-' C� sy: Attorney-In-Fact Attest: HS RESOURCES,INC. By: Janet W. Pasqua Secretary I . Attorney-in-Fact (Title) STATE OFW' ) ss. COUNTY OP �!� 4 The foregoing instrument was acknowledged before me by 8' (19 ,as Attorney in Fact for Union Pacific Resources Company, this 11ti-li day of , 1995. "FTWITNESS my hand and official seal. s Notary Public STATE OF rip Oman ) ss. COUNTY OF DENVER The foregoing instrument was acknowledged before me by Janpt W. Pavane as Attorney-in-Fact for HS Resources, Inc. this &777 day of .��niaazry 1995. .°' .. Cpl•.\ S my hand and official seal. o (3.1 •-2 �� c fi m Notary Public �1�to�iestmn Expires: 8/27/97 1999 Broadway, #3600 '°�•.,. Denver, CO 80202 • -6- Hello