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BOOK`J 2 RECEPTION 1873611 DATE 417 TIME.JP %rt
MARY ANN FEUERSTEIN, Clerk and Recorder, Vick,' County, Coloradq,
RESOLUTION
RE : AUTHORIZATION OF OIL AND GAS LEASE COVERING CERTAIN
PROPERTY OWNED BY WELD COUNTY, COLORADO LOCATED IN THE
EAST HALF OF THE SOUTHEAST QUARTER AND THE NORTHEAST
QUARTER OF SECTION 30 , TOWNSHIP 8 NORTH, RANGE 59 WEST
OF THE 6TH P.M. , WELD COUNTY, COLORADO
WHEREAS , the Board of County Commissioners of Weld County,
O
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, a portion of said mineral acres presently is
not leased, and
WHEREAS, Hrubetz Oil Company, 8235 Douglas , Suite 707 ,
Dallas, Texas 75225, has offered to lease the following described
mineral lands, to-wit:
The East Half of the Southeast Quarter and the
Northeast Quarter of Section 30, Township 8
North, Range 59 West of the 6th P.M. , Weld
County, Colorado.
WHEREAS , said described mineral acres contain 240 land
acres which contain 230 net mineral acres , more or less , and
WHEREAS , said mineral lands shall be leased for the bonus
sum of Eleven Thousand Seven Hundred Ninety-seven and 50/100
Dollars ($11,797. 50) with the annual rental of ONE DOLLAR
($1. 00) per acre, which lease is to run for a period of three
(3) years, commencing October 28, 1981, and ending October 27 ,
1984 , and
WHEREAS, Weld County is desirous of accepting said offer
to lease the abovedescribed mineral acreage.
NOW, THEREFORE , BE IT RESOLVED by the Board of County
Commissioners of Weld County, Colorado that the offer of
Hrubetz Oil Company, 8235 Douglas, Suite 707 , Dallas, Texas
75225, be, and hereby is , accepted for a period of three (3)
years.
The above and foregoing Resolution was, on motion duly
made and seconded, adopted by the following vote on the 28th
day of October, A.D. , 1981.
I % eli `t„3 810004
BOOK 952 RECEPTI0N._..1873611
Page 2
RE : HRUBETZ OIL COMPANY
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ABSENT
Chuck Carlson, Chairman
ABSENT
Norman Carlson, Pro-Tem
C. W. Kirby
hh T. Martin
' "(sue,22Z).� , ,Le?%yiw
e K. Stei mark
71
ATTEST: r i law n«•w« vw r o/
Weld 'nfi'
erk and Recorder
{ d 'C. r ,�it&o the Board
tirri
-1- eouty County Clerk
AP$R h ED' AS TO FORM:
County Attorney
DATE PRESENTED: November 2 , 1981
glA�Kx Js�/✓ l-_� !. ., - P ' tidi t'Y E.J 1 C-rr.-
3 ,
MARY AN' 'E'JEFS-E!N, Clerk cod ( c s:3r V' uny Co(orade
WELD COUNTY. COLORADO Olt AND Ch ,, LEASE `j-
THIS AGREEMENT made this ':— day of 19 between Weld County, Colorado, a political subdivision of
m i' si priers, for its respective interests, C/0 Board of County Commis-
the State of Colorado. by the Board of County Comioners, weld County Centennial Center. 915 10th Si'-'c,et_ Greeley, Colorado P5€31, Lessor (whether one or more), and
Irubetz Oil Company, 8235 Douglas,Suite- /J Lessee, w, r; SSETH:
Dallas, Texas 752 and 50/100
1. Lessor in consideration of Eleven Thou ''-\ =r� Hun f r '''�'nntvy-seveh Dollars (S 11 ,797.)50 )•
in hand paid, of the royalties herein provided, and.-oz_ talent c nerlin contained; hereby grants, eases
g, er i prospecting, drilling and mining for and
and cin exclusively unto re Lessee for the purpose of Ir."" `- rui1diu power stations, telephone lines and other
producing oil, gas and other hydrocarbons, aryl of f:>de- .v,rt m:,, id products, and housing its employees,
structures llthereon ltoi produce,ll save, take cInge of,egu ire 101'- of land with any reversionary rights
o (subject to all applicable Weld County Zoning Regul-tti.
therein being situated in the County of Weld, State of
IC -.s follows:
Township 8 North, Range 59 West of the
Section 30: E}aSE , NEq
and containing 240 acres, more or less (21 '
2. Subject to the other provisions herein contain ""' a term of 3 years from this date
(called "primary term") and as long thereafter as utl, is produced from said land hereunder,
"" or drilling or reworking operations are conducted there
___ 3. The royalties to be paid by Lessee are: (a) on -,duced and saved from said land, the
same to be delivered at the wells, or to the credit of owhich the wells may be connected;
Lessee may from time to time purchase any royalty oil I' - , .. market price therefor prevailing
for the field where produced on the date of purchase; (', -ead gas or other hydrocarbon sub-
stance, produced from said land and sold or used off th :are of gasoline or other products
therefrom, the market value at the well of one-eighth c- 'tided that on gas sold at the
wells the royalty shall be one-eighth of the amount rea , 'f.::r the royalty shall be fifty
cents (50t) per long ton. Lessee shall have free use o ...Ter from said land, except water
from Lessor's wells, for all operations hereunder, and ail be computed after deducting
any so used. If a well capable of producing gas in pay -- the above described land and is
shut in, this lease shall continue in effect for a perir ich well is shut in. Lessee or
any assignee may thereafter, in the manner provided hers. . of delay rentals, pay or tender
to Lessor as royalty, on or before one year from the da :m of $100.00 per well, and, if
such payment or tender, is made, this lease shall contin, :ad of one year. In like manner
and upon like payments or tenders annually, made on or t shut-in date of such well, this
lease shall continue in effect for successive periods o'
4. If operations for drilling are not commenced o, ?aided, on or before one year fror
this date, the lease shall then terminate as to both pa - • 'i anniversary date Lessee shall
nay or tender to Lessor, and shall continue as the depoa hereunder regardless of changes
in ownership of said land or the rentals either by cony, .ncity of Lessor, the sum of
Two hundred thirty and no/latilllar(s) ($1.0C =in called rental), which shall
cover the privilege of d₹ferring commencement of operat of twelve (12) months. In like
manner and upon like payments or tenders annually the c: grilling may be further deferred
for successive periods of twelve (12) months each durin, tt or tender of rental herein
referred to may be made in currency, or check at the op. :rifting of such currency, or
check in any post office, properly addressed to the Les aping date, shall be deemed pay-
ment as herein provided. The down cash payment is cons -mg to its terms and shall not
he allocated as mere rental for a period. lessee may a- .. to Lessor or place of record
a release or releases covering any portion or-portions ; - and thereby surrender this
lease as to such portion or portions and be relieved of - --ge surrendered, and thereafter
the rentals payable hereunder shall be reduced in the p . td hereby is reduced by said
release or releases.
5. Should any well drilled on the above described •
afore production is obtained be
a dry hole, or should production be obtained during the • -se, then and in either event,
if operations for drilling an additional well are not c -.--king an old well are not pur-
sued on said land on or before the first rental paying . ' • 'on of production or drilling
or reworking on said well or wells, then this lease she • ' -r before said date, shall re-
sume the payment of rentals. Upon resumption .of the p - -rning the payment of rentals,
shall continue in force just as though there had been n ' ' _ ,moots. If during the last year
of the primary term and prior to the discovery of oil, ' .did land Lessee should drill a
dry hole thereon, or if after discovery of oil, gas or ., . 'lug the last year of the
primary term the production thereof should cease durinc • .. any cause, no rental payment
or operations are necessary in order to keep the lease " the primary term. If, at the
expiration of the primary term, Lessee is ronducting op or reworking an old well, this
lease neverthelessshall continue in force as long as su continue, or if, after the
expiration of the primary term, production on this leas ess shall continue in force
if drilling or reworking operations are commenced with t.- on of production; if pro-
duction is restored or additional production is discove . . or reworking operations.
conducted without cessation of more than sixty (60) day. • thereafter as oil, gas.
other hydrocarbons or other mineral is produced and as " ' king operations are had
without cessation of such drilling or reworking operate tive days.
6. Lessee,at its option, is hereby given',the righ and covered by this lease,
or any portion thereof, as to oil and gas.or eitherof leases when in Lessee's
judgment it is necessary or advisable to do so in order i premises, such pooling to
be into a well unit or units not exceeding forty (40) a: _n per cent (10%) of forty
(40) acres, for oil, and not exceeding six-hundred and • ,lerance of ten per cent
(l0%) of six hundred and forty (640) acres, for gas, ex: i to conform to any sparing
or well unit pattern that may be prescribed by governme Lessee may pool or com-
bine acreage covered by this lease, or any portion then - gas in any one or more
and units so formed need not conform in size or .ch the lease is pooled .r
strata, . las units. The non" in
combined as to any other stratum or strata, and oil unY
B :952 RECEPTION 1873612
3 -A.
one or more instances shall not exhaust the rights of the Lessee hereunder to pool this lease or portions thereof into
other units, Lessee shall execute in writing and place of record an instrument or instruments identifying and describ-
ing the pooled acreage. The entire acreage so pooled into a unit shall be treated for all purposes, except the payment
of royalties, as if it were included in this lease, and drilling or reworking operations thereon or production of oil
or gas therefrom, or the completion thereon of a well as a shut-in gas well , shall be considered for all purposes,
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 thts 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
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
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
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
operation whereby the production therefrom is allocated to different portions of the land covered by said plan, then
the production allocated to any particular tract of land shall, for the purpose of computing the royalties to be
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
plan of development or operation adopted by Lessee and approved by any governmental agency by executing the same
upon request of Lessee.
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 be apportionable among the several leasehold owners ratably
according to the surface area of each, and default in rental payment by one shall not affect the rights of other lease-
hold owners hereunder. -In case Lessee assigns this lease, in whole or in part, Lessee shall be relieved of all obli-
gations with respect to the assigned portion or portions arising subsequent to the date of assignment.
10. All express or implied covenants of this lease shall be subject to all Federal and State Laws, Executive
Orders, Rules or Regulations, and this lease shall not be terminated, in whole or in part, nor Lessee held liable in
damages, for failure to comply therewith, if compliance is prevented by, or if such failure is the result of, any
such Law, Order, Rule or Regulation, or if prevented by an act of God, of the public enemy, labor disputes, inability
to obtain material, failure of transportation, or other cause beyond the control of Lessee.
If during the term of this lease, oil or gas or other hydrocarbons is discovered upon the leased premises, but
Lessee is prevented from producing the same by reason of any of the causes set out in this Section, this lease shall
nevertheless be considered as producing and shall continue in full force and effect until Lessee is permitted to pro-
duce the oil, gas and other hydrocarbons, and as long thereafter as such production continues in paying quantities
or drilling or reworking operations are continued as elsewhere herein provided.
11. Lessor does not warrant title to said real estate or to the mineral interests in said real estate, however,
it is agreed that if Lessor owns less than 100% of the minerals, then, and in that event, the royalties and rentals to
be paid Lessor shall be reduced proportionately.
12. Not withstanding in a provision of this lease to the contrary, no operations shall be conducted on the above
described land without the written consent of the Lessor.
13, Upon the termination of this lease in whole or in part by election or by failure to make payments as afore-
said, Lessee or its assigns shall within thirty (30) days release by written instrument the land or portion thereof
which said lease terminates, and said notice shall also be sent to Lessor giving the book and page number of said
lease. It is expressly understood that this lease is subject to and controlled by any law of the
and any
of Coloradoorado
now in effect restricting or limiting the powers of counties or boards of county commissioners, 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.
BOOK 9.5-'2 RECEPTION 18t3612
3 - 3
15. This agreement shall be binding on each of the above named parties who sign the same, regardless of whether
it is signed by any of the other parties.
IN WITNESS WHEREOF, this instrument is executed on the date first above written.
BOARD OF COUNTY COMMISSIONERS
� ° L • WELD,COUNTY 5COLORAOfY
k- -
ABSENT -
� � ABSENT
r
ATTEST `139 Y{L.:.L- �1�,iv
Weld County Clerk aai Recorder ' \ ,{ �j/
and Clerk to the Board 'tee 1� / s.. 7�� '�
By:,
ATTEST`.::...ge S4aGt
HRUCOMlNY
_!!�l/ fi
Socre y Senior Vient
5-64 OF'`COLORADO
55.
COUNTY 'OF,,Nab '
The foregoing instrument was acknowledged before me this day of 19 , by
My commission expires: Witness my hand and official seal.
Notary Public
STATE OF TEXAS
COUNTY OF DALLAS
ON THIS 8 day of October, 1981 , before me appeared
Robert E. Slingerland, to me personally known, who being by me duly
sworn, did say that he is the Senior Vice President of HRUBETZ OIL
COMPANY and that said instrument was signed in behalf of said
corporation by authority of its Board of Directors and the said
officer acknowledged said instrument to be the free act and deed of
said corporation.
2r
� r ' Notary Pub c 4:::;C:2(1
HRUBETZ OIL COMPANY
DENVER REGION
DENVER NATIONAL BANK PLAZA
1125-17TH STREET, SUITE NO. 2460
DENVER, COLORADO 80202
303/623-6485
August 12, 1981
Weld County
Board of County Commissioners
P. 0. Box 758
Greeley, Colorado 80632
Re: Township 8 North-Range 59 West
Section 30: ELSE*-a, NE*
Containing 240 Acres
Weld County, Colorado
Gentlemen:
A recent check of the county records indicated that the referenced
land is not currently under lease for Oil and Gas. We have specific
plans in this area and respectfully request that the referenced land be
made available for leasing.
We understand that the Commissioners generally hold an oral auction
and grant leases to the high bidders. We request that the referenced
land be included in your next sale list. Due to our uncertainty as to
' when the next sale will be held, we would like to explore the possibility
of negotiating a lease on all or part of the referenced lands with the
Commissioners if such a procedure is permissible.
Thank you for your consideration.
Si rely,
y stner
Regio al Land Manager
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