HomeMy WebLinkAbout20052606.tiff Thomas B. Croke,III
Laura L. Croke
3932 West 18th Street Lane
Greeley, CO 80634
Telephone (970)330-2660
Cell Phone (970) 396-8347
Fax(970)330-2657
E-Mail TCroke(a)aol.com
July 27, 2005
Board of County Commissioners
Weld County, Colorado
915 10th Street
P.O. Box 758
Greeley, CO 80632
Re: Assignment of OIL AND GAS LEASE-SE 1/4,/4, S15, T5N, R61W
Dear Commissioners:
Enclosed are copies of the following:
1. WELD COUNTY OIL AND GAS LEASE covering SE 'A Section 15,
T5N-R61 W, dated July 9, 2003, between Weld County, Colorado as
Lessor and El Camino Resources/Raymund A. Tonella as Lessee.
2. RESOLUTION adopted by the BOARD OF COUNTY
COMMISSIONERS, WELD COUNTY, COLORADO, dated July, 9,
2000
3. ASSIGNMENT dated July 27, 2005,between El Camino Resources/
Raymund A. Tonella as Assignor, and Thomas B. Croke, III, and Laura L.
Croke, JTWROS, as Assignees, for the oil and gas lease set forth in 1.
above.
Article 9. ASSIGNMENTS—requires the approval of the Lessor, Weld County,
Colorado, of any Assignment(s)by Lessee, El Camino Resources/Raymund A. Tonella.
Per Article 9. A., please provide Lessee with written approval of Lessee's Assignment of
Lessee's entire leasehold interest in the subject lease to Thomas B. Croke, III, and Laura
L. Croke, JTWROS, whose address is 3932 West 18th Street Lane, Greeley, CO 80634.
49tJ
Per Article 10., please provide Lessee with written approval of Lessee's Assignment of a
Two and One Half Percent (2 1/2%) OVERRIDING ROYALTY in the subject lease to El
Camino Resources, Inc., a Colorado corporation, whose address is 20153 Cottontail
Road, Morrison, CO 80465.
Your prompt attention to this request would be greatly appreciated.
Sincerely, 4 et
Thomas B. Croke, III I aura L. Croke
cc: El Camino Resources, Inc. /Raymund A. Tonella
David G. Ebner, Esq.
► eld CounW, CO
►II%Ira IN111111141 itIII IN 3 U
3306972 07127/2005
1 of 2 R 11.00 D 0.00 Steve Moreno Clerk& Recorder
ASSIGNMENT
THIS ASSIGNMENT ("Assignment") is dated July 27, 2005, and is made from El
Camino Resources, Inc., a Colorado corporation, and Raymond A. Tonella, a natural person,
whose collective address is 20153 Cottontail Road, Morrison, Colorado 80465 (collectively, "El
Camino"), as assignors,to Thomas B. Croke, III, and/or Laura L. Croke, husband and wife,
JTWROS, whose address is 3932 West 18th Street Lane, Greeley, Colorado 80634 ("Crokes"),
as assignees.
For $100 and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, El Camino hereby sells, assigns, transfers, grants,bargains and
conveys all of its right, title and interest in and to the following lease to Crokes:
Lessor: Weld County, Colorado
Lessee: El Camino Resources/Raymond A. Tonella
Date: July 9, 2003
Recorded: Reception No. 3096556 (Weld County)
Description: Township 5 North, Range 61 West, 6th P.M., Weld County, Colorado
Section 15: SE/4
RESERVING, however, to El Camino Resources, Inc. (and not to Raymond A. Tonella) a
two and one half percent (2 1/2 %) of 8/8ths overriding royalty interest (subject to proportionate
reduction based both on the percentage leasehold interest being assigned and on the percentage of the
fee oil and gas estate covered by the lease) on all oil, gas and other leased substances produced,
saved and sold under the terms of the lease. This reserved overriding royalty interest shall be free of
all costs of drilling,completing,equipping and operating,but shall bear its proportionate share of all
post-wellhead costs(including,without limitation,separation,treatment,gathering and compressing
costs), as well as all severance, production and other taxes of every type and nature applicable
thereto.
This Assignment is made subject to the following terms and conditions:
1. Crokes shall furnish to El Camino all material information concerning each well drilled
on lands covered by the lease consistent with common industry practice, including, without
limitation, well logs, drill stem tests, production tests and daily drilling reports delivered by mail,
together with copies of all material documents filed with and received from governmental agencies.
2. El Camino warrants title to the lease from and against the claims of all persons claiming
by,through, or under El Camino,but not otherwise.
3. This Assignment binds and inures to the benefit of El Camino and Crokes,together with
their respective successors and assigns.
•
_ 111111111111111111111111 1111 111111 11111 III 11111 111111II
3306972 07/27/2005 04:10P Weld County, CO
2 of 2 R 11.00 D 0.00 Steve Moreno Clerk& Recorder
IN WITNESS WHEREOF, the parties have executed this Assignment.
ASSIGNORS: ASSIGNEES:
EL CAMINO RESOURCES, INC. Thomas B. Croke, III
By: Anne. /d• .i sr2
Raymond A. T ella, President Thomas B. Croke, III
Laura L. Croke
Raymond A. Tone/ a, individually
Qom'£ /cote_--
aura L. Croke
STATE OF COLORADO )
) ss.
COUNTY OF )
This instrument was acknowledged before me on July , 2005, by Raymond A. Tonella,
individually and as President of El Camino Resources, Inc.,a Colorado corporation.
My commission expires: 24 o75--
Notary Public
WENDY SUE HANSON
STATE OF COLORADO ) NOTARY PUBLIC
STATE OF COLORADO
ss.
COUNTY OF WELD ) MY COMMISSION EXPIRES 4118/2006
This instrument was acknowledged before me on July/ ,h2005,by Thomas B. Croke, III, and
Laura L. Croke. \\\\\\0\c.fiLERni�� //////
ats_
•
My comntissioAexpire L2b '3GB
.• z pJ� •C6\` J Jn. Lti• .fin
"' `Ok
�� Notary Public
s lI11 ane��o\`\\\
RESOLUTION
RE: AUTHORIZE OIL AND GAS LEASE COVERING CERTAIN PROPERTY OWNED BY
WELD COUNTY, COLORADO -SE1/4, S15, T5N, R61W
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, Weld County, Colorado, is the owner of vast acres of mineral lands located
in Weld County, Colorado, and
WHEREAS, the Department of Purchasing was authorized to solicit bids for lease of a
portion of said mineral acres not currently leased, and
WHEREAS, El Camino Resources, Inc., do Raymund A. Tonella, 20153 Cottontail
Road, Morrison, Colorado 80465, submitted the high bid to lease 160.0 net mineral acres, more
or less, described to-wit:
SE1/4 of Section 15, Township 5 North, Range 61
West of the 6th P.M., Weld County, Colorado
WHEREAS,Weld County desires to accept the high bid offer submitted by El Camino
Resources, Inc., do Raymund A. Tonella to lease the above described mineral acreage for
$10.00 per net mineral acre, for a total sum of$1,600.00,together with an annual rental fee of
ONE DOLLAR ($1.00) per net mineral acre, which lease is to run for a period of three (3) years,
commencing July 9, 2003, and ending at 12:00 noon on July 8, 2006, unless otherwise held, as
stated in the lease agreement which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County, Colorado, that the high bid offer of El Camino Resources, Inc., do Raymund A.
Tonella be, and hereby is, accepted for a period of three (3) years.
2003-1838
LE00S1
(O CL CT7„,,.,n
OIL AND GAS LEASE-SE1/4, S15, T5N, R61 W
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 9th day of July, A.D., 2003.
BO OF COUNTY COMMISSIONERS
WE OUNTY, COLORADO
ATTEST: failI y. La
vid E. L ng, C air
Weld County Clerk to11.61
• 7..r.o, I�`
.BY:
R •4 ,� R bent D. sden, Pro-Tern
Deputy Clerk to the ` ! N`S
. J. eile
AP V AS TO •
kite
William H. Je e
m eiy Attome i— �/J�
Glenn V
Date of signature: /20
2003-1838
LE0081
•
WELD COUNTY OIL AND GAS LEASE
666_
Containing 16� acres, more or less:
Containing 16� net mineral acres,more or less:
..yy day of ,20O3 ,made and
THIS LEASE AGREEMENT,dated this N`^ Y
entered into by and between WELD COUNTY, COLORADO, a po cal subdivision of the STATE OF
COLORADO,acting by and through the BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD,
for its respective interests,do BOARD OF COUNTY COMMISSIONERS, 915 10TH STREET,P.O.BOX 758,
GREELEY,CO 80632,hereinafter called Lessor,and:
tea- areltut cGt saike aS 0.3 / 12 .-'ItY.I4u1.
2s3 ► talt - ED , , t-t2etSOL\Icn .c04lola
hereinafter called Lessee: WITNESSETH
WHEREAS,said Lessee has applied to Lessor for an oil and gas lease covering the land herein described.
plus a bonus consideration of$ lO.(50 per mineral acre,
and has paida filing fee indi the amount era ionf for an annual
fixed by Lessor as an additional computed at the rate the granting of this lease, minLesseerale9rfractition thereof per
rental of$ l.tQ) . at the of$ 11 .W ° P
year,and the following consideration:
WHEREAS, all the requirements relative to said application have been duly complied with and said
application has been approved and allowed by Lessor,
THEREFORE, in consideration of the agreements herein, on the part of Lessee to be paid, kept and
performed,Lessor does lease exclusively to Lessee for the sole and only purpose of drilling for,development
of and production of oil and gas,or either of them,thereon and e �e�erightt of thesis lease,all together
and gas
so produced and saved therefrom and not reserved as royalty by lines,tanks s fixtures for
with rights-of-way,easements and servitudes for pipelines,telephone and telegraph
producing and caring for such product, end housingg and�boarding,oil employees,s,tand eany and following described rights
land
privileges necessary for the exploration and opera
situated in the County of Weld,State of Colorado,and more particularly described as follows:
DESCRIPTION OF LAND SECTION TOWNSHIP RANGE
SE 1/4 15 514 61W
TO HAVE AND TO HOLD said land,and all the rig is and privileges granted hereunder to Lessee until the
t day of 20 06 as primary term,and
hourlong twelve o'clock noon on the$_ quantities from said land or Lessee
is long thereafter a oil and afi or either of them,is on sidland, subject tote terms and
is diligently engaged in bona floe drilling or reworking operations
conditions herein. Drilling or reworking operations shall be deemed to be diligently performed if there is no delay
or cessation thereof for a greater period than sixty consecutive days unless an extension in writing is gr anam
by lessor;provided that such drilling or reworking operations are commenced during said primary extension thereof or while this lease is in force by mason of production of oil and gas or either of them,or that
such reworking is commenced within sixty days upon cessation of production for the purpose of re-establishing
the same,and provided further that such production is commenced during such primary term or any extension
thereof, or while this lease is in force by reason of such drilling or reworking operations or other production.
EXPLORATION - Lessor reserves the right to conduct exploration on the leased land provided such
exploration does not interfere with rights granted herein. 2003-1838
I IIIIII VIII III'VIII"III 'Hill III"(III I'll) (III (III LE0081
3098566 08/18/2003 12:09P Weld County, CO
1 of 8 R 0.00 D 0.00 Steve Moreno Clerk& Recorder
Oil and Gas Lease
Page 2
in consideration of the premises,the parties covenant and agree as follows:
1. RENTAL-If this lease is extended for an additional term as provided for in the EXTENSION paragraph
hereof,Lessee shall pay to Lessor the sum of One Dollar($1.00)per acre for the land covered hereby as
delayed rental for the term of the extension. Rentals set at the time of established production shall be
paid during the remaining life of this lease, annually, in advance, on or before each anniversary date
hereof. There shall be no refund of unused rental.
2. ROYALTY-Lessee shall account for any and all substances produced on the leased land and Lessee
shall pay to Lessor as royalty, in addition to the rentals provided, but except for products used on the
leased land, unavoidably lost or flared on the leased land,with approval of Lessor,the following:
A. On oil, 12.5% of the oil produced and saved from the leased land.
At the option of Lessor, and with sixty(60)days'notice to Lessee, Lessor may take its royalty oil
in kind,in which event Lessee shall deliver such royalty oil to Lessor on the leased land,free of cost
or deduction,into the pipelines or storage tanks designated by Lessor,but Lessee shall not in such
case be required to provide free tankage for any such oil for a longer period than one month after the
same is run into tanks. With sixty(60)days'notice to Lessee, Lessor may cease taking oil royalty
in kind. When paid in cash, the royalty shall be calculated upon the fair market value of the oil at
the well which shall not be deemed to be less than the price actually paid to Lessee at the well by
the purchaser thereof;and in no event shall the royalties be based upon a market value at the well
less than the posted price In the field for such oil,or In the absence of a posted price In the field for
such oil, upon a market value at the well less than the prevailing price received by other producers =
in the field for oil of like grade and gravity at the time such oil is run into pipelines or storage tanks. — R
B. On gas, including casing head gas or other gaseous substance, 12.5% of the fair market value c
at the well or of the price received by Lessee at the well,whichever is greater, of all gas produced En=meg
and sold from the leased land or utilized off the land by Lessee. A copy of all contracts for sale of =m csa
gas shall be furnished to Lessor. Where gas is sold under contract that has been approved by �8 e
Lessor,the fair market value of such gas for determining the royalties payable hereunder shall be the —II >ti
price at which such gas is sold under such contract. No approval by Lessor of the terms of any such `3 3
agreement shall operate to make Lessor a party thereto or obligate it thereunder in any way. At the ma
option of Lessor, and with sixty (60) days' notice to Lessee, Lessor may take its royalty in kind. $
With sixty(60)days'notice to Lessee, Lessor may cease taking gas royalty in kind.
rrrrob
C. All costs of marketing the oil and/or gas produced shall be borne by Lessee and such costs shall = c
not directly or indirectly reduce the royalty payments to Lessor. Except that marketing costs for Ea
Lessor's in-kind royalty shall be borne by Lessor. r=._$
sego
D. If Lessor owns a lesser interest in the oil and gas deposits of the above-described land than the =
entire and undivided fee simple estate,then the royalties and rentals herein provided shall be paid e
to Lessor only in the portion which its interest bears to the whole and undivided fee, but no refund mew S
of any bonus consideration shall be made by Lessor hereunder. — a
3. RECORDS-Lessee agrees to keep and to have in possession complete and accurate books and records
showing the production and disposition of any and all substances produced on the leased land and to
permit Lessor,at all reasonable hours,to examine the same,or to furnish copies of same to Lessor upon
request along with purchasers support documentation. Lessor will not be unreasonable with requests.
All said books and records shall be retained by Lessee and made available in Colorado to Lessor for a
period of not less than five years.
4. MEASUREMENTS -All production shall be accurately measured using standards established by the
American Gas Association(AGA)and/or the American Petroleum Institute(API)and all measuring
Oil and Gas Lease
Page 3
devices shall be tamper proof as needy as possible. Oil royalties due within the terms of this lease
shall be calculated on actual and accurate measurements within API standards unless a different
means of measurement, subject to Lessor's approval, due hereunder shall be made on or5. PAYMENTScAND REPORTS-All r payments are due. Nothings his paragraph shall be construed to extend
the day such payments and reports
hereof.
the expiration of the primary
Oil royalty payments and supporting documents shall be submitted prior to the last day of the month
following each month's sale of production,and gas royalty payments and supporting documents shall
be submitted prior to the last day of the second month following each month's sale of production.
All payments shall be made by cash, check, certified check, or money order. Payment having
of kind whatsoever shall not be A penalty
qualifications,late payment shall be charged as sset forth in the PENALTIES paragraphaccepted
herein
A penalty for a lap paym
6. PENALTIES-A penalty shall be imposed for, but not limited to late payments,improper payments,
operational deficiencies,violation of any covenant of this lease,or false statements made to Lessor.
Penalties shall be determined by Lessor unless otherwise provided for by law and may be in the form
of, but not limited to, interest, fees, fines, and/or lease cancellation. penalty schedule
shall
ll be
prepared by Lessor and shall become effective immediately after public
may
be changed from time to time after public notice.
7. LAW -The terms and conditions of this lease shall be performed andxercised subject sed binding ro upon all laws,
rules, regulations, orders, local ordinances or resolutions and applicablet to laws,d rules and regulations the as—
governing `
administration of lands and minerals owned by the County
oil and gas operations In Colorado. Violations shall result in penalties as provided for by
law or as set forth in the aforementioned schedule or shall,at the option of Lessor,result in default as Ea la
an ccprovided hereinafter. as" °
8. SURRENDER-Lessee may at any time,by paying to Lessor all amounts then due as provided herein, ter;
surrender this lease insofar as the same covers all or any portion of the land herein leased and be — a
relieved from further obligations or liability hereunder with respect to the land so surrendered;provided m C
that no partial surrender or cancellation of this lease shall be � less
than
iguoustracts
section;f 3
cal
approximately forty (40) acres or Governmental lot correspond 9 aquarter-quarter
provided further that this surrender clause and the option herein reserved to Lessee shall cease and C a.
become absolutely inoperative immediately and concurrently with the Institution of any suit in any court =NS'w
of law by Lessee,Lessor or any assignee of either to enforce this lease,or any of its terms expressed _ o
or implied. In no case shall any surrender
protection of the surface rights of the leased land.ve until Lessee shall have made full provision for mar
conservation of the leased products
PTO
-e
9. ASSIGNMENTS- C
A. Lessee,with prior written consent of Lessor,shall have the right to assign the entire leasehold han = m
interest of said Lessee in all or part of the land covered hereby, but not less, how per, to a a
contiguous tracts of approximately forty (40) acres or Governmental lot corresponding _ Cr)
quarter-quarter section for any partial assignment,and for approval of such assignment Lessor
shall make an assignment charge in an amount to be determined by Leshall ssor.Prior
to n be relieved of its
approval by Lessor of assignment of this lease, Lessee (assignor)
obligations under the terms and conditions herein. An assignment shall not extend the term of
this lease.
B. If any assignment of a portion of the land covered hereby shall be approved,a new lease shall
be issued to the assignee covering the assigned land,containing the same terms and conditions
as this lease,and limited as to term as this lease is limited,and the assignor shall be released and
discharged from all further obligations and liabilities as to that portion so assigned.
1
•
•
Oil and Gas Lease
Page 4
C. Lessee shall notify Lessor of all assignments of undivided percentage or other interests. Said
interests will not be recognized or approved by Lessor,and the effect of any such assignments
will be strictly and only between the parties thereto,and outside the terms of this lease: and no
dispute between parties to any such assignment shall operate to relieve Lessee from performance
of any terms or conditions hereof or to postpone the time therefor. Lessor shall at all times be
entitled to look solely to Lessee or his assignee shown on its books as being the sole owner
hereof, and for the sending of all notices required by this lease and for the performance of all
terms and conditions hereof.
D. Although not binding on Lessor,all instruments of every kind and nature whatsoever affecting this
lease should be filed with the Lessor.
10. OVERRIDING ROYALTY-Any and all reservations or assignmentsnor overriding l e royfive alties
subject to approval by Lessor. The total of said overriding royalties
Including any overriding royalty previously provided for unless production exceeds a monthly average
of fifteen(15)barrels per day or ninety thousand cubic feet of gas per day(90 MCF/D). In the event
production drops to this amount or less,any overriding royalties which exceed five percent(5%)may
be suspended. Lessors approval of a reservation or assignment of an overriding royalty shall not bind
Lessor for payment of said overriding royalty and shall not relieve Lessee of any of its obligations for
payment of royalties to lessor as provided by ROYALTY paragraphs herein.
11. OFFSET WELLS-Lessee agrees to protect the leased land from drainage by offset wells located on
adjoining lands not owned by Lessor,when such drainage Is not compensated for by counter-drainage.
It shall be presumed that the production of oil and gas from offset wells r engineering,in drainage frrom
the
leasedland,unless Lessee demonstrates to Lessors satisfaction,by ng g•geological, t
her
data,that production from such offset well does not result in such drainage,or that the drilling of a well
or wells on the leased land would not accomplish the purposes of protecting the deposits under the
leased land. Lessors decision as to the existence of such drainage shall be final,and Lessee shall
comply with Lessor's order thereon or surrender this lease as to any such undeveloped acreage as
designated by Lessor.
12. DEVELOPMENT-Upon discovery of oil and gas or either of them on the leased land,Lessee shall
proceed with reasonable diligence to develop said land at a rate and to an extent commensurate with
the economic development of the field in which the leased land lies.
13. POOLING CLAUSE-Lessee may at any time or times pool any part or all of said land or lease or any
stratum or strata with other lands and leases,stratum or strata,in the same field so as to constitute a
spacing unit to facilitate an orderly or uniform well-spacing pattern or to comply with any order,rule,
or regulation of the State or Federal regulatory or conservation agency having jurisdiction. Such
pooling shall be accomplished or terminated by filing of record a declaration of pooling,or declaration
of termination of pooling, and by mailing or tendering a copy to Lessor, or to the depository bank.
Drilling or reworking operations upon or production from any part of such spacing unit shall be
considered for all purposes of this lease saoperations
ra diction rhichtitthnes from this lease.acr age in this lease shall
allocate to this lease the proportionate production
in any such spacing unit bears to the total acreage in said spacing unit.
14. UNITIZATION - COMMUNITIZATION - In the event Lessor permits the land herein leased to be
included within a communitization or unitization agreement,the terms of this lease may be deemed
to be modified to conform to such agreement. When only a portion of the land under this lease is
committed by an agreement, Lessor may segregate the land and issue a separate lease for each
o portion not committed thereunder,the term of such separate lease shall be limited as to the original
term of this lease. The terms of the lease on that portion remaining in the unit shall be deemed to be
= modified to conform to such agreement. Non-producing leases shall terminate on the first anniversary
date of the lease following the termination date of the unit or part thereof modifying the lease,but in nsion term cc no event prior to the end of the primary t rm of the lease or the the lease.
I 111111111111111111'1 III 1111111
I�II'I III 111111111111
3096556 08118/2003 12:09P Weld County, CO
4 of 8 R 0.00 D 0.00 Steve Moreno Clerk& Recorder
Oil and Gas Lease
Page 5
15. PRODUCTION-Lessee shall,subject to applicable laws,regulations and orders,operate and produce
all wells upon the leased land so long as the same are capable of producing in paying quantities,and
shall operate the same so as to produce at a rate commensurate with theof producttioen of welxcept ls
on adjoining lands within the same field and within the limits of good engineering practice,
such times as there exist neither market nor it en ttheref by r,Lessor. Lesseefor
rs suchbe limitations
responsible for
suspensions of production as may be approved
adequate site security on all producing properties.
16. SHUT-IN WELLS-If Lessee shall complete a well on the leased land productive of gas and Lessee
is unable to produce such gas due to a lack of suitable market therefor, Lessor may grant Lessee
a during
f his obligations to
period,hereunder shhal deemed that gas is being produced hereunde found,
and any such suspension date next,of the year of an
paying quantities. Except,however, that beginning on the anniversary�m a shut-in royalty equal
to$2.00n of the lease reason annumnin ddition to the annll uay to all rental. The minimum amount of
such ch.s0per acre tofy the mlease per year's shut-in royalty shah be forfeited to Lessor
t shut-in r shut-in
i payment shallfor b a Each production. The maximum
except for the shut-In royalty paid the year during which the well begins prod d the extension
extension of the lease,due to the existence of a shut-in welll,h ll be fig of any obits dextensionshe shall
term as described in the EXTENSION paragraph
be at the sole option of Lessor.
17. OPERATIONS-No exploration,drilling or production operation,including permanent installations.shall
be within 200 feet of any existing building or other improvement, Including water well or rese log
rvoir,
without the written permission of the owner of said improvements. Lessee shall keep a correct
depof
each well drilled hereunder,showing by name or description the formations passed through,
at which each formation was reached,the number of feet of each size casing set In each I the l,where
re
set, and the total depth of each well drilled. Lessee,within thirty(30)days complete and completion tioo or
of sad well,together gf any whh drilled e ellectricllogdand the radios office tivity log sor of the well when such logs,
orsuch r of,hemerwith a copy records and analyses, �
or eird of them, ore run;and also a copy of all drill stem test of the,information required by this ma
core —
record paragraphisperforations and iport prqu touction tests, if any. If any be filed w'i h the Oil and Gas Conservation Comm ion
f Co is thecontained in repentsrofs required re h for such information may be satisfied by such filing c
with saidCommirson,except of this
sof paragraph and • �C3c
said Commission,except for copies of the reports as are required by the following paragraph,
information so aim
provided that all such information Is immediately available
�ndae f to Lessor.Colorado
proprietary _Q r3
submitted shall not be subject to public inspection �9 S
Lessee shall bury pipelines below plow depth. Lessee shall set and cement sufficient surface casing �S E
to protect the fresh water wells of the area.
s.
18. NOTIFICATION ATION-Lessee shall notify Lessor omencedrilling 1ooperation or s therewr.Lesse t shall notify ��g
of so bdrill site ot least mmencing to ks copy of Lessee's request for approval or _te
Lessor before commencing to plug and abandon any well by =
sundry notice of intent to plug and abandon.
• in crops, =_.?:„8
19. BONDS-Lessee shall be liable for all damages to the surface of the land,livestock,grow g
water wells,reservoirs,or improvements caused by Lessee's operations on said land. No operations go
shall be commenced on the land hereinabove described unless and until Lessee shall have filed a =�°C
good and sufficient bond with Lessor,in an amount to be fixed by Lessor,to secure the payment —
for 'S
such damages as may be caused by Lessee's operations on said land and to assure compliance with =1
all the terms and provisions of this lease, the laws of the State of Colorado, and the rules and
regulations thereto appertaining. A bond may be held in effect for the life of production of any well.
20. SETTLEMENT-Lessee shall not remove any machinery,equipment or fixtures placed on said land.
other than drilling equipment, nor draw the casing from any well unless and until all payments and
obligations currently due Lessor under the terms of this lease shall have been paid or satisfied. Any
-Oil and Gas Lease -
Page 6
machinery,equipment or fixtures left on this land for a period of more than six(6)months after the
expiration hereof,shall automatically become the property of Lessor.
21, OTHER DISCOVERY-Should Lessee discover any valuable products other than oil and gas,on or
within the leased land, Lessee shall within seven(7)days report such discovery to Lessor,in which
event Lessee and Lessor may negotiate a provision for production of such discovery.
22. WATER-This lease does not grant permission,express or implied,to Lessee for water exploration,
drilling,or establishing water wells without the written permission of the surface owner. If Lessor is the
surface owner,said permission shall not be unreasonably withheld. If Lessee desires to establish or
adjudicate any water right for beneficial use on the leased land,any such adjudication or application
shall be in the name of Lessor if Lessor is the surface owner. The same shall apply to any non-
tributary water rights established on the leased land which may be put to beneficial use off said land.
23. DEFAULT-Upon failure or default of Lessee to comply with any of the terms and provisions hereof
including but not limited to the failure to comply with laws,rules and regulations governing Colorado
oil and gas operations,Lessor is hereby authorized upon notice and hearing,as hereinafter provided,
to cancel this lease as to all of the leased land so claimed or possessed by lessee hereunder. In the
event of any such default or failure,Lessor shall,before making any such cancellation,send to Lessee
by certified mail,to the post office address of said lessee as shown by the records of Lessor,a notice
of intention to cancel for such failure or default, specifying the same, stating that if within thirty(30)
days from the date of mailing said notice,Lessee shall correct such failure or default,no cancellation
will be made. If such failure or default is not corrected within thirty(30)days after the mailing of such
notice,and if Lessee does not request a healing on such notice within thirty(30)days,this lease will
, terminate and be canceled by operation of this paragraph without further action by Lessor,or further
notice to Lessee. •
✓a▪ ja s 24. EXTENSION-If Lessee fads to make discovery of oil and gas,or either of them,in paying quantities
MOM
y. during the primary term hereof, or during drilling operations commenced during the primary term
== hereof, Lessee may make written application to Lessor for an extension of this lease. The granting
a c3 o of such extension shall be at the sole option of Lessor,according to the following conditions:
`3 g A. No lease term will be extended for more than six(6)months from the original expiration date.
Sgt B. That the Lessee shall pay to the Lessor the sum of one-third of the original bonus,with a minimum
bonus of Ten Dollars($10.00)per acre.
-'
8
C. The Lessee must pay to the Lessor the sum of One Dollar($1.00)per acre leased as delayed
d0 rental for the term of the extension.
imm e 8 D. That the royalty will remain the same.
m c
m
25. HOLD HARMLESS-Lessee shall indemnify Lessor against all liability and loss,and against all claims
ea — and actions,including the defense of such claims or actions,based upon or arising out of damage or
-mm injury,including death,to persons or property caused by or sustained in connection with operations
on this leased land or by conditions created thereby, or based upon any violation of any statute,
ordinance,or regulation.
26. CONDEMNATION-If the leased land shall be taken in any condemnation proceeding,this lease shall
automatically terminate as of the date of taking. The award for such condemnation shall be paid to
Lessor,except for any specific award(s)paid to Lessee for severed oil and gas reserves, in which
Dm event of such specific award(s)shall be paid to Lessor in lieu of royalty lost by virtue
of the condemnation. Improvements shall be removed by Lessee per terms in the SETTLEMENT
paragraph herein. If only a portion of the leased land is taken by condemnation, Lessor may, at its
option,terminate this lease or terminate only that portion of the lease so taken.
K
U
Oil and Gas Lease
Page 7
27. ERRORS-Every effort is made by Lessor to avoid errors in all procedures including but not limited to auction shall not be liable for any caused by errorswhich may occ and lease ur. Lessee aration. Lessor
he l notify Lessor immediately upon discovery of nience or loss
y
errors or discrepancy whatsoever.
28. ARCHAEOLOGY-Lessee shall not destroy,disturb.mar,collect, remove or alter any prehistoric or
historic resources of any kind on Weld County lands as provided by law. These resources include,but
are not hingedto,p all
hiss[^actsfisttoric none, ature shall be reported or metal, to structures,
or the state of Colorado
s. A discovery
of anything of pre
Archaeologist immediately.
29. DEFINITIONS -
A. 'Gas"as used herein shall mean all gases(combustible and noncombustible),including but not
limited to all gaseous hydrocarbons,gaseous compounds'carbon dioxide,and helium.
B. "Oil and gas' as used herein shall Include all substances produced as by-produ
cts therewith.
including But not limited to sulfur.
C. 'Paying quantities'as used herein shall mean and refer to quantities of oil and gas or of rther of
them sufficient to pay for the current cost of producing same.
•
30. HEIRS AND ASSIGNS-The benefits and obligations of this lease shall inure to and be binding upon
the heirs, legal representatives, successors or assigns of Lessee; but no sublease or assignment
hereof,or of any interest herein,shall be binding upon Lessor until the same has been approved by
Lessor as explained in the ASSIGNMENTS'paragraph provided.
31. WARRANTY OF TITLE - Lessor does not warrant title to the leased premises,but it shall.upon
request,allow Lessee access to such abstracts and other title papers as It has in its files. There shall
be no obligation on Lessor's part to purchase new or supplemental or other title papers nor to do any
curative work in connection with title to the subject lands. All abstracts of title, whether new or
supplementary.obtained by Lessee and covering the subject lands shall become the property of and
be delivered to Lessor after Lessee has completed its title examination and curative work; subject,
however,to the right of Lessee to use such abstracts upon request at any time during the term of the
lease.
IN WITNESS WHEREOF, Lessor has hereunto signed and caused its name to be signed by the CHAIR,
BOARD
OF COUNTY
this COMMISSIONERS
MMISSnthe RS OF THE
E COUNTY year fxst above OF
WwrELD,
with the seal of the office affixed,and signedag y/ 14f••'�'rr� BOARD OF COUNTY COMMISSIONERS
ATTEST: ,I... ., _'L4)% WE OUNTY,COLORADO
Weld County Clerk tot
1161
i��' • Chair, oard of County Comm rs
r('! v• a . David E. Long (07/09/20
By:
Deputy Clerk to the Board LESSEE:
E 64.1-1 r-SO ReS4tnLCe.S I IOZ.
•
I11111111111IIII1111111111111111IIIIII Ming 1111 By , -tram ro�>
3096566 08/18/2003 12:09P Weld County, CO Qp {F�u, �p A. fcn.�eu /'
7 of 8 R 0.00 D 0.00 Steve Moreno Clerk&Recorder Pt st peaS
Oil and Gas Lease
�.1 Page 8
S1MTE OF COLCQAbO )
S ) ss
COUNTY OF WELD 1
The foregoing instrumentwaisacknOvIedgedbeforen this 5{h day/at y C_•
W itnesx my hand and official seal. 1,7211114- M‘. . ��
Notary Public -Me/Mt I -5/170N2 k.
'My Commission Expetes: 01(97A?ea5
I11111111111IIII1111111IIII111111110111111IIIIII
3096556 08/18/2003 12:09P Weld County, CO
8 of 8 R 0.00 D 0.00 Steve Moreno Clerk& Recorder
S
m:lctblctbfonasVolease
.. (Revised 11/2000)
J
U
Hello