HomeMy WebLinkAbout820021.tiff AR1903b28
RESOLUTION
RE: AUTHORIZATION OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY
OWNED BY WELD COUNTY, COLORADO LOCATED IN THE NORTHEAST
QUARTER OF SECTION 25 , TOWNSHIP 1 NORTH, RANGE 67 WEST OF
00 THE 6TH P. M. , WELD COUNTY, COLORADO
•-rn WHEREAS, the Board of County Commissioners of Weld County,
Colorado, pursuant to Colorado statute and the Weld County Home
V 3
Rule Charter, is vested with the authority of administering the
L affairs of Weld County, Colorado, and
WHEREAS, Weld County, Colorado is the owner of vast acres
-4 of mineral lands located in Weld County, Colorado, and
WHEREAS, a portion of said mineral acres presently is not
leased, and
sz
WHEREAS , X. 0. Exploration, Inc. , 1860 Lincoln Street,
Denver, Colorado 80295, has offered to lease the following described
mineral lands, to-wit:
rf:
a z Part of the Town of Wattenberg, Colorado in the NE 1/4
of Section 25 , Township 1 North, Range 67 West of the
6th P. M. described as follows : Block 10 - Lots 1 , 2 , 3 ,
4 , 8 and 10; Block 12 - Lots 13 , 14 , 17 , 18 , 19 , 20 , 21 ,
22 , 23 , 24 , 25 and 26 ; Block 14 - Lots 5 , 6 , 9 and 10 ;
Block 15 - Lots 3 and 4 ; Block 16 - Lots 16, 17 , 18 , 19
a^ and 20 .
WHEREAS, said described mineral acres contain 3 . 4581 land
acres, which contain 3. 4581 net mineral acres, more or less, and
WHEREAS , said mineral lands shall be leased for the sum
of ONE HUNDRED AND NO/100 DOLLARS ($100 . 00) , which lease is to run
for a one (1) year term commencing August 6 , 1982 and ending
August 5, 1983 , and
WHEREAS, Weld County is desirous of accepting said offer to
lease the abovedescribed mineral acreage.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Com-
missioners of Weld County, Colorado that the offer of X. 0.
Exploration, Inc. , 1860 Lincoln Street, Denver, Colorado 80295 ,
be and hereby is, accepted for a period of one (1) year.
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 19th day of
LHR702
L C , 820021
•
PAGE 2 - X. O. EXPLORATION LEASE
_-
July, A. D. , 1982 .
.r BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
rr
JN T. RTIN, CHAIRMAN
h .c
UCK CARLS�RTEMo
��
<- _ NORMAN CARLSON
`" KIRt5Y Cc z � �J`I K. ST�RK
\\A....4 ."
ATTEST ` .-Gl"tott; )
Tr
Nc' Weld County Clerk and Recorder
a =:
and,Clerk to the Board -\
beputy County Clerk
APPPPRRO D AS TO FORM:
County Attorney
DATE PRESENTED: SEPT 13 , 1982
WELD COUNTY. COLORADO OIL AND CAS LEASE
THIS AGREEMENT made this 6 th day of August , 1982 between Weld County, Colorado, a political subdivision of
the State of Colorado. by the Board of County Commissioners, for its respective interests, C/0 Board of County Commis-
sioners, Weld County Centennial Center, 915 10th Street, Greeley, Colorado 80631, Lessor (whether one or more), and
Q Exploration, Inc . , 1$60 Lincoln Street Lessee, WITNESSETH:
050 Lincoln Tower Building, Denver, CO 8095
1. lessor in consideration of Ten and More Dollars ($10 . on & More
in hand paid, of the royalties herein provided, and of the agreement of Lessee herein contained, hereby glints,, leases
and lets exclusively unto Lessee for the purpose of investigating, exploring, prospecting, drilling and mining for and
producing oil, gas and other hydrocarbons, laying pipe lines, building tanks, power stations, telephone lines and other
structures thereon to produce, save, take care of, treat, transport and own said products, and housing its employees,
(subject to all applicable Weld County Zoning Regulations), the following tract of land with any reversionary rights
therein being situated in the County of Weld, State of Colorado, and described as follows: part of Town of
Wattenberg, Colorado in the NEa Section 25 , Township 1 North, Range 67 West, des-
scribed as : Block 10 - Lots 1 , 2 , 3 , 4 , 8 and 10; Block 12 - Lots 13 , 14 , 17 ,
18 , 19 , 20 , 21, 22 , 23, 24 , 25 and 26; Block 14 - Lots 5 , 6 , 9 and 10; Block 15 -
Lots 3 and 4; Block 16 - Lots 16 , 17 , 18 , 19 and 20
Notwithstanding anything in this lease to the contrary, the royalty for oil and
- and associated hydrocarbons will be 18. 75% and not 12 . 5%
and containing 3.4581 acres, more or less (_3. 45pinet mineral acres).
"• 2: 2. Subject to the other provisions herein contained, this lease shall be for a term of 1 years from this date
(called "primary term") and as long thereafter as oil , gas or other hydrocarbons, is produced from said land hereunder,
or drilling or reworking operations are conducted thereon.
` 3. The royalties to be paid by Lessee are: (a) on nil , one-eighth of that produced and saved from said land, the
same to be delivered at the wells, or to the credit of Lessor into the pipe line to which the wells may be connected;
CC Lessee may from time to time purchase any royalty oil in its possession, paying the market price therefor prevailing
for the field where produced on the date of purchase; (b) on gas, including casinghead gas or other hydrocarbon sub-
Cc stance, produced from said land and sold or used off the premises or in the manufacture of gasoline or other products
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,_: therefrom, the market value at the well of one-eighth of [he gas so sold or used, provided that on gas sold at t e
≥; wells the royalty shall be one-eighth of the amount realized from such sale; on sulfur the royalty shall be fifty
y cents (50e) per long ton. Lessee shall have free use of oil , gas, coal , wood and water from said land, except water
from Lessor's wells, for all operations hereunder, and the royalty on oil and gas shall be computed after deducting
.c any so used. If a well capable of producing gas in paying quantities is completed on the above described land and is
shut in, this lease shall continue in effect for a period of one year from the date such well is shut in. Lessee or
`—` any assignee may thereafter, in the manner provided herein for the payment or tender of delay rentals, pay or tender
to Lessor as royalty, on or before one year from the date such well is shut in, the sum of $100.00 per well , and, if
such payment or tender is made, this lease shall continue in effect for a further period of one year. In like manner
0 and upon like payments or tenders annually, made on or before each anniversary of the shut-in date of such well, this
crz lease shall continue in effect for successive periods of twelve (12) months each.
4. If operations for drilling are not commenced on said land as hereinafter provided, on or before one year from
Vthis date, the lease shall then terminate as to both parties, unless on or before such anniversary date Lessee shall
nay or tender to Lessor, and shall •continue as the depository for all rentals payable hereunder regardless of changes
Lij in ownership of said land or the rentals either by conveyance or by the death or incapacity of Lessor, the sum of
— Three and 46/100 Dollar(s) ($ 1 . 00) per net mineral acre, (herein called rental), which shall
cover the privilege of deferring commencement of operations for drilling for a period of twelve (12) months. In like
manner and upon like payments or tenders annually the commencement of operations for drilling may be further deferred
Z for successive periods of twelve (12) months each during the primary term. The payment or tender of rental herein
, referred to may be made in currency, or check at the option of the Lessee; and the depositing of such currency, or
check in any post office, properly addressed to the Lessor, on or before the rental paying date, shall be deemed pay-
.—
ment as herein provided. The down cash payment is consideration for the lease according to its terms and shall not
F he allocated as mere rental for a period. Lessee may at any time execute and deliver to Lessor or place of record
a release or releases covering any portion or portions of the above described premises and thereby surrender this
lease as to such portion or portions and be relieved of all obligations as to the acreage surrendered, and thereafter
`- " the rentals payable hereunder shall be reduced in the proportion that the acreage covered hereby is reduced by said
...- 1
:.,, release or releases.
5. Should any well drilled on the above described land during the primary term before production is obtained be
Y' is a dry hole, or should production be obtained during the primary term and thereafter cease, then and in either event,
if operations for drilling an additional well are not commenced or operations for reworking an old well are not pur-
sued on said land on or before the first rental paying date next succeeding the cessation of production or drilling
or reworking on said well or wells, then this lease shall terminate unless Lessee, on or before said date, shall re-
sume the payment of rentals. Upon resumption of the payment of rental, Section 4 governing the payment of rentals,
shall continue in force just as though there had been no interruption in the rental payments. If during the last year
of the primary term and prior to the discovery of oil, gas, or other hydrocarbons on said land Lessee should drill a
dry hole thereon, or if after discovery of oil, gas or other hydrocarbons before or during the last year of the
primary term the production thereof should cease during the last year of said term from any cause, no rental payment
or operations are necessary in order to keep the lease in force during the remainder of the primary term, if, at the
expiration of the primary term, Lessee is conducting operations for drilling a new well or reworking an old well, this
lease neverthelessshall continue in force as long as such drilling or reworking operations continue, or 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 sixty (60) days after such cessation of production; if pro-
duction is restored or additional production is discovered as a result of any such drilling or reworking operations,
conducted without cessation of more than sixty (60) days, this lease shall continue as long thereafter as oil, gas,
other hydrocarbons or other mineral is produced and as long as additional drilling or reworking operations are had
without cessation of such drilling or reworking operations for more than sixty (60) consecutive days.
6. Lessee,at its option, is hereby given the right and power to pool or combine the land covered by this lease,
or any portion thereof, as to oil and gas, or either of them, with any other land lease or leases when in Lessee's
judgment it is necessary or advisable to do so in order to properly develop and operate said premises, such pooling to
be into a well unit or units not exceeding forty (40) acres, plus an acreage tolerance of ten per cent (10%) of forty
(40) acres, for oil, and not exceeding six hundred and forty (640) acres, plus an acreage tolerance of ten per cent
(10%) of six hundred and forty (640) acres, for gas, except that larger units may be created to conform to any spacing
or well unit pattern that may be prescribed by governmental authorities having jurisdiction. Lessee may pool or com-
bine acreage covered by this lease, or any portion thereof, as above provided, as to oil or gas in any one or more
strata, 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 nooling in
II
'v one or more instances shall not exhaust the rights of the Lessee hereunder to pool this lease or portions thereof into
a other units, Lessee shall execute in writing and place of record an instrument or instruments identifying and describ-
0 ing the pooled acreage. The entire acreage so pooled into a unit shall be treated for all purposes, except the payment
of royalties, as if it were included in this lease, and drilling or reworking operations thereon or production of oil
-= or gas therefrom, or the completion thereon of a well as a shut-in gas well, shall be considered for all purposes,
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 specified, Lessor shall receive from a unit so formed, only such portion of
the royalty stipulated herein as the amount of his acreage placed in the unit or his royalty interest therein bears
to the total acreage so pooled in the particular unit involved. Should any unit as originally created hereunder con-
tain less than the maximum number of acres hereinabove specified, then Lessee may at any time thereafter, whether
before or after production is obtained on the unit, enlarge such unit by adding additional acreage thereto, but the
`, l enlarged unit shall in no event exceed the acreage content hereinabove specified. In the event an existing unit is
in so enlarged, Lessee shall execute and place of record a supplemental declaration of unitization identifying and
d: describing the land added to the existing unit; provided, that if such supplemental declaration of unitization is not
filed until after production is obtained on the unit as originally created, then and in such event the supplemental
• declaration of unitization shall not become effective until the first day of the calendar month next following the
filing thereof. In the absence of production Lessee may terminate any unitized area by filing of record notice of
termination.
7. Lessee also shall have the right to unitize, pool, or combine all or any part of the above described lands
1- 7
with other lands in the same general area by entering into a cooperative or unit plan of development or operation
'. _ approved by any governmental authority and, from time to time, with like approval, to modify, change or terminate
any such plan or agreement and, in such event, the terms, conditions, and provisions of this lease shall be deemed
modified to conform to the terms, conditions, and provisions of such approved cooperative or unit plan of development
or operation and, particularly, all drilling and development requirements of this lease, express or implied, shall
be satisfied by compliance with the drilling and development requirements of such plan or agreement, and this lease
shall not terminate or expire during the life of such plan or agreement. In the event that said above described
lands or any part thereof, shall hereafter be operated under any such cooperative or unit plan of development or
Z operation whereby the production therefrom is allocated to different portions of the land covered by said plan, then
• Z the production allocated to any particular tract of land shall, for the purpose of computing the royalties to be
- paid hereunder to Lessor, be regarded as having been produced from the particular tract of land to which it is al-
located and not to any other tract of land and the royalty payments to be made hereunder to Lessor shall be based
• upon production only as so allocated. Lessor shall formally express Lessor's consent to any cooperative or unit
C plan of development or operation adopted by Lessee and approved by any governmental agency by executing the same
-- — upon request of Lessee.
1
..t 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
any time during or after the expiration of this lease to remove all property and fixtures placed by Lessee on said
• land, including the right to draw and remove all casing. When required by Lessor, Lessee will bury all pipe lines
below ordinary plow depth, and no well shall be drilled within two hundred (200) feet of any residence or barn now
on said land without Lessor's consent. The Lessee agrees to promptly pay to the owner thereof any damages to crops,
or improvements, caused by or resulting from any operations of Lessee. All disturbed portions of surface land are
to be returned to original condition within time designated by Lessor.
9. The rights of either party hereunder may be assigned, in whole or in part, and the provisions hereof shall
extend to the heirs, successors and assigns of the parties hereto, but no change or division in ownership of the land,
rentals, or royalties, however accomplished, shall operate to enlarge the obligations or diminish the rights of Lessee.
No change in the ownership of the land or any interest therein, shall be binding on Lessee until Lessee shall be
furnished with a certified copy of all recorded instruments, all court proceedings and all other necessary evidence
of any transfer, inheritance, or sale of said rights. In event of the assignment of this lease as to a segregated
portion of said land, the rentals payable hereunder shall he apportionable among the several leasehold owners ratably
according to the surface area of each, and default in rental payment by one shall not affect the rights of other lease-
hold owners hereunder. -In case Lessee assigns this lease, in whole or in part, Lessee shall be relieved of all obli-
gations with respect to the assigned portion or portions arising subsequent to the date of assignment.
10. All express or implied covenants of this lease shall be subject to all federal and State Laws, Executive
Orders, Rules or Regulations, and this lease shall not be terminated, in whole or in part, nor Lessee held liable in
damages, for failure to comply therewith, if compliance is prevented by, or if such failure is the result of, any
such Law, Order, Rule or Regulation, or if prevented by an act of God, of the public enemy, labor disputes, inability
to obtain material, failure of transportation, or other cause beyond the control of Lessee.
If during the term of this lease, oil or gas or other hydrocarbons is discovered upon the leased premises, but
Lessee is prevented from producing the same by reason of any of the causes set out in this Section, this lease shall
nevertheless be considered as producing and shall continue in full force and effect until Lessee is permitted to pro-
duce the oil, gas and other hydrocarbons, and as long thereafter as such production continues in paying quantities
or drilling or reworking operations are continued as elsewhere herein provided.
11. Lessor does not warrant title to said real estate or to the mineral interests in said real estate, however,
it is agreed that if Lessor owns less than 100% of the minerals, then, and in that event, the royalties and rentals to
be paid Lessor shall be reduced proportionately.
12. Not withstanding in a provision of this lease to the contrary, no operations shall be conducted on the above
described land without the written consent of the Lessor.
13, Upon the termination of this lease in whole or in part by election or by failure to make payments as afore-
said, Lessee or its assigns shall within thirty (30) days release by written instrument the land or portion thereof
which said lease terminates, and said notice shall also be sent to Lessor giving the book and page number of said
lease. It is expressly understood that this lease is subject to and controlled by any law of the State of Colorado
now in effect restricting or limiting the powers of counties or boards of county commissioners, and any provision
herein in conflict therewith shall be inoperative and void.
14. All of the provisions of this lease shall inure to the benefit of and he binding upon the parties hereto,
their heirs, administrators, successors and assigns.
^
15. Notwithstanding anything in this lease to the contray, the royalty for oil
and gas and associated hydrocarbons will be 18.75% and not 12.5%. 9/12
don 16, 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. z a:
IN WITNESS WHEREOF, this instrument is executed on the date first above written.
BOARD OF COUNTY COMMISSIONERS —
WF,LB)COU TY, COLO DO
ATTEST: S ' ,�
Weld County Clerk a d Recorder N-, ,/� . . ' ;� —
and rk to the Board/,y
tit Ji
�__. _
5SEE:X 0 E {P TION, INC.
. ^-- ,t Max H. Ern t, III z .^
' ,, ,r-'; President T °
STATE OF COLORADO,' '....44 0 S
. /
COUNTY OF WELD +. 1
The foregoing instrument was acknowledged before me this 6th August .. "
9 9 9 day of q 1$2, by _
` 4: `• _sQRiss A-vxptres> �Q.tch AS, 1%4, Witness my hand and fficial seal,
••. ri. '•......... •ric`r�.�' Notary Publi
F• OF COtiO.
L-
��^ter
X O EXP ION , tz
Jul
9 7982
July 6, 1982 alatit
RE: Unleased Mineral Interest
Wattenberg Townsite
Board of County Commissioners
Weld County
Greeley, Colorado 80632
Gentlemen:
For several years X 0 Exploration, Inc. and its associates
have been producing an oil and gas well in the NE4 of Section 25 ,
Township 1 North, Range 67 West, Weld County, Colorado. This
well is known as the #1 Perry Gas Unit. The well is producing
both condensate and natural gas.
We have recently completed the #3 Perry located in the NWQ
of Section 25 , Township 1 North, Range 67 West, and while con-
ducting title curative work covering the minerals under the #3
Perry it was learned that Weld County owns 3 .4581 acres covering
various town lots.
Some of these town lots were leased to our company by the
surface owners and other town lots have not been leased at all.
We are requesting that the County grant us an oil and gas lease
covering the lots shown on the attached Oil and Gas Lease. Upon
receipt of the executed lease we will issue a check to the County
for the monies held in suspense for the unleased tracts and begin
payment immediately of the royalties due covering the leases that
we have taken from the wrong mineral owners.
As soon as we receive the executed lease we will notify the
crude oil purchaser and Panhandle Eastern Pipe Line Company who
is purchasing the gas. Checks should be issued to you sometime
in the month of August.
•
ii
MI'
1050 Lincoln Tower Building • 1860 Lincoln Street • Denver, Colorado 80295 • Phone: 303 861-0871
Board of County Commissioners
July 6 , 1982
Page 2
If you have any questions concerning these unleased minerals
or the royalties due you, please do not hesitate to contact us.
Yours truly,
X 0 EXPLO INC.TI\ CL '
Max H. Ernest, III
President
MHE/dlg
Enclosures
2 : 18 p.m.
8/31/82
Tom:
X 0 Exploration called about the
oil and gas lease (royalty being
changed) .
If you' ll have a sentence typed
on the lease, have it initialed,
and send it back to X 0 Explora-
tion, they' ll have it recorded.
The sentence should read as
follows: (type under legal descrip-
tion)
"Notwithstanding anything in this
lease to the contrary, the royalty
for oil and gas and associated
hydrocarbons will be 18. 75% and
not 12.5%. "
82 II
GREELEY. Cpl
X 0 EXP Llib
ION, Itil Pme;,10: _16
BI i .L. l
AUG 1198Z 6
August 6, 1982
aamgt C°- '
RE: Unleased Mineral
Interest
Wattenberg Townsite
Board of County Commissioners
Weld County Centennial Center
915 - 10th Street
Greeley, Colorado 80631
Gentlemen:
This has reference to our letter of July 6, 1982 and your
Commissioners' meeting of July 14 , 1982, in which we proposed
leasing 3 .46 mineral acres owned by Weld County in various
townsite lots in the Town of Wattenberg, Colorado.
One of our representatives attended your Commissioners'
meeting and was presented with your form of Oil and Gas Lease
which we have completed and are returning herewith for your
execution.
We are also enclosing our check in the amount of $100 .00
as bonus consideration for leasing these town lot tracts to
us. As soon as the lease has been executed and returned to
us, we will contact Panhandle Eastern Pipe Line Company and
the crude oil purchasers and obtain the monies due you that
are held in suspense for the #1 and #1 Perry Wells.
Yours truly,
X 0 EXPLORATION, INC.-----4 ((HI,V
Max . Er est, III
_FAI_ President
!.` MHE/dlg
Enclosures
:l,
..fl
M.'1
71!
1050 Lincoln Tower Building • 1860 Lincoln Street • Denver, Colorado 80295 • Phone: 303 861-0871
/
mEmORAnDU
WIiDc. To THE BOARD Date Sept 9, 1982
COLORADO From Clerk to the Board's Office
Subject: Gas and Oil Lease Wattenberg site
I compared the legal description on our mineral card and prior county leases on
this property and found that our records reflect that we do not own all of
what X. O. Exploration has shown on the attached lease. I called this matter
to the County Attorney, Mr. David, attention and his reply was as follows:
"X. O. Exploration has done much research and if they believe we own more
than we think we own, that's not a problem leade it as is, Weld County does
not warrant title."
Jeannie Sears, Deputy
•
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