HomeMy WebLinkAbout20052643.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(d)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—NE 1/4,/4, S21, T5N, R61 W
Dear Commissioners:
Enclosed are copies of the following:
1. WELD COUNTY OIL AND GAS LEASE covering NE 'A Section 21,
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,
2004.
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 18'h Street Lane, Greeley, CO 80634.
2005-2643
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, /� p
�✓ . ��iG
Thomas B. Croke, III Laura L. Croke
cc: El Camino Resources, Inc. /Raymund A. Tonella
David G. Ebner, Esq.
11111111111111111111111 IIII 111111 11111III11111IIIIlilt
3306973 07/27/2005 04:10P Weld County, CO
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. 3096558 (Weld County)
Description: Township 5 North, Range 61 West, 6th P.M., Weld County, Colorado
Section 21: NE/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.
11111 11111 11111 ELM I I I 111111111111 III 11111 1111 1111
3306973 07/27/2005 04:10P Weld County, CC
2 nf 2 R 11.00 0 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 ' /inns. A C�al .. .
Raymo . Tonella, President Thomas B. Croke, III
( Laura L. Croke
Raymond A. onella, individually
L ura 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:4—/(o •OFD
Notary Publ
WENDY SUE HANS, , I
NOTARY PUBLIC
STATE OF COLORADO ) STATE OF COLOR,
)ss. MY COMMISSION EXPIRES 4/16/2006'
COUNTY OF WELD )
This instrument was acknowledged before me on July. t,2005, by Thomas B. Croke, III,and
Laura L. Croke. \\\\\\, uiin/i// //
em.ER R /��i
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My commis-sandeipires: Q I., '?" 5.002‘,43... S ''••......•.• o \�.. Notary Public
RESOLUTION
RE: AUTHORIZE OIL AND GAS LEASE COVERING CERTAIN PROPERTY OWNED BY
WELD COUNTY, COLORADO- NE1/4, S21, 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:
NE1/4 of Section 21,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., Go Raymund A. Tonella to lease the above described mineral acreage for
$10.00 per net mineral acre, fora 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., Go Raymund A.
Tonella be, and hereby is, accepted for a period of three (3) years.
2003-1839
LE0215
ee: Chin/,4/0 , 04
OIL AND GAS LEASE-NE1/4, S21, T5N, R61W
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.
BOARD OF COUNTY COMMISSIONERS
WEL UNTY, CQLO DO
ATTEST: jaj
` yid E. L ng, Chai
Weld County Clerk to t B.-
1861
�. Ro ert asden, Pro-Tem
BY:
Deputy Clerk to the : liq`1\ du
2" M. J. Geile ))
O D AS ORM: i ,Y/t
William H. Jerk
ounty Attorne l�
Glen" n�d
Date of signature: ..L2y
2003-1839
LE0215
WELD COUNTY OIL AND GAS LEASE
bbT
Containing 160.0 acres,more or less:
Containing 16_ 0.O_.net mineral acres,more or less:
THIS LEASE AGREEMENTW ELdthis,_
day of ,20S1_,madeand
entered into by and between WELD COUNTY. COLORADO, a pout I subdivision of the STATE OF
COLORADO,acting by and through the BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD,
for its respective
CO r2 interests,
hereinaftercelled Lessor,BOARD OF
Y COMMISSIONERS, 915 10TH
STREET,P.O.BOX 758,
GREELEY,
S
reinafter called Lessee: W ITNESSETH
WHEREAS,said Lessee has applied to Lessor for an oil and gas lease covering land herein described,
and has paid a filing fee In the amount of$10.00,plus a bonus consideration of$ per mineral acre,
fixed by Lessor as an additional consideration for the granting of this lease,and Lessee agrees to pay an annual
p- ,per mineral acre or fraction thereof per
rental of$ (1_1."1_.) ____,computed at the rate of$�-
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 Lthere under terms right to own all f this lease, nd gas
so produced and saved therefrom and not reserved liotelephonelbyssor and e the the t rm soanks eate,te together
with rights-of-way,easements and servitudes for pipetelegraph
and any and all d rights e and
or
producing and caring for such product, and housing and boarding employe privileges necessary for the exploration and operation of said land for oil and gas,the fdescribed land
ollowing
situated in the County of Weld,State of Colorado,and more particularly described as follows:
DESCRIPTION OF IANQ_ SECTION TOWNSHIP RANGE
NE 1/4 21 5N 61W
TO HAVE AND TO HOLD said all
rights and privileges granted hereunder
nderto Lessee
te
rm,l the
ane
hour of twelve o'clock noon on thei uan,2es from said land ry toro Lessee
so long thereafter as oil and gas,or either of them,is prod ued in payingqu land, subject to the terms and
Is diligently engaged in bona fide drilling or reworking operations subject
the is no ad
conditions herein. Drilling or reworking operations shall be deemed to be diligently perform
or cessation thereof for a greater period than sixty consecutive days unless an extension in writing is granted
by lessor,provided that such drilling or reworking operations are commenced during said primary term or any
extension thereof or while this lease is in force by reason 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.
LE0215
11111111111111111HIlitIII1111111111111111111111111111 200 LE021
3096667 08/1812003 12:09P Weld County, CO
1 of 8 R 0.00 0 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(51.00)per acre for the land covered hereby as
delayed rental for the temp 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. Qa
B. On gas, including casing head gas or other gaseous substance, 12.5% of the fair market value =g
at the well or of the price received by Lessee at the well,whichever Is greater,of all gas produced mama 2
and sold from the leased land or utilized off the land by Lessee. A copy of all contracts for sale of as e
gas shall be furnished to Lessor. Where gas is sold under contract that has been approved by wan
Lessor,the fair market value of such gas for determining the royalties payable hereunder shall be the ra
price at which such gas is sold under such contract. No approval by Lessor of the terms of any such r
agreement shall operate to make Lessor a party thereto or obligate it thereunder in any way. At the =r
option of Lessor, and with sixty (60) days' notice to Lessee, Lessor may take its royalty in kind. 8
With sixty(60)days'notice to Lessee, Lessor may cease taking gas royalty in kind. tio
MAINIalt
C. All costs of marketing the oil and/or gas produced shall be borne by Lessee and such costs shall
not directly or indirectly reduce the royalty payments to Lessor. Except that marketing costs for Rio
Lessor's in-kind royalty shall be borne by Lessor. Ea s
mum m
D. If Lessor owns a lesser interest in the oil and gas deposits of the above-described land than the = e
entire and undivided fee simple estate,then the royalties and rentals herein provided shall be paid a 45'*'
to Lessor only in the portion which its interest bears to the whole and undivided fee,but no refund
of any bonus consideration shall be made by Lessor hereunder.
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 purchaser's 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 nearly 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,is provided. —
m `e
5. PAYMENTS AND REPORTS-All payments and reports due hereunder shall be made on or before
the day such payments and reports are due. Nothing in this paragraph shall be construed to extend 0 b
the expiration of the primary term hereof. mial
m g t
in documents shall be submitted prior to the last day of the month s a
O31 wingy parents and sale of prt g n documents shall =a g
following each month's of production,and gas royalty payments and supporting
be submitted prior to the last day of the second month following each month's sale of production. 3 E
All payments shall be made by cash, check. certified check, or money order. Payment having am
restrictions,qualifications,or encumbrances of any kind whatsoever shall not be accepted by Lessor.
A penalty for a late payment shall be charged as set forth in the PENALTIES paragraph herein. rime8
8. 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. ^8
Penalties shall be determined by Lessor unless otherwise provided for by law and may be in the form = e
of, but not limited to, interest, fees, fines, and/or lease cancellation. A penalty schedule shall be
prepared by Lessor and shall become effective immediately after public notice. Said schedule may r.m
be changed from time to time after public notice. wwwq 'Jr of this lease 7. LAW-The terms and
rules, regulations,orders,to conditions
l ordinances shall
orresolutions a exercised
pplicabletoand to
.binding upon the
administration of lands and minerals owned by the County of Weld,and to laws,rules and regulations
governing 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
provided hereinafter.
i to Lessor all amounts then due as provided herein,
8. SURRENDER lease Lessee may ast any sameime,by paying of the land herein leased and be
surrender this insofar as the covers all or arty portion provided
relieved from further obligations or liability hereunder with respect to the land so sutrendered;pus tracts of
that no partial surrender or cancellation of this lease shall be for less than contiguous
approximately forty (40) acres or Governmental lot corresponding to a quarter-quarter section;
provided further that this surrender clause and the option herein reserved to Lessee shall cease and
become absolutely Inoperative immediately and concurrently with the institution of any suit in any court
of law by Lessee,Lessor or any assignee of either to enforce this lease,or any of its terms expressed
or implied. In no case shall any surrender be effective until Lessee shall have made full provision for
conservation of the leased products and protection of the surface rights of the leased land.
9. ASSIGNMENTS- e the right to assign the entire A: Lessee,wth prior written hold
interest of said Lessee in all rsorrpart of the land t of Lessor, Ncovveed hereby, but not less, however,
contiguous tracts of approximately forty (40) acres or Governmental lot corresponding to a
quarter-quarter section for any partial assignment,and for approval of such assignment
tont men
shall make an assignment charge in an amount to be determined by
approval e
ts
obligations under the terms and conditions An assignment shall ssee (assignor)shall not extend thee e d of i
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 sametermbandall releaseddan s
as this lease,and limited as to term as this lease is limited,and the assignor
discharged from all further obligations and liabilities as to that portion so assigned.
•
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
NUM g
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
c2ce terms and conditions hereof.
rmb- D. Although not binding on Lessor,all instruments of every kind and nature whatsoever affecting this
=o lease should be filed with the Lessor.
9 shall be
w 10. OVERRIDING ROYALTY-My and all reservations or assignments or overriding royalties
subject to approval by Lessor. The total of said overriding royalties shall not exceed five percent(5%),
m e
including any overriding royalty previously provided for unless production exceeds a monthly average
IR m of fifteen(15)barrels per day or ninety thousand cubic feet of gas per day(90 MCFID). In the event
= s production drops to this amount or less,any overriding royalties which exceed five percent(5%)may
=n o be suspended. Lessor's approval of a reservation or assignment of an overriding royalty shall not bind
a Lessor for payment of said overriding royalty and shall not relieve Lessee of any of its obligations for
g payment of royalties to lessor as provided by ROYALTY paragraphs herein.
age
a c 11. OFFSET WELLS-Lessee agrees to protect the leased land from drainage by offset wells located on
^m adjoining lands not owned by Lessor,when such drainage Is not compensated for by counter-drainage.
o It shall be presumed that the production of oil and gas from offset wells results in inaggeff o
m the
imilimilmos
s leased land,unless Lessee demonstrates to Lessors satisfaction,by engineering,geological,
data,that production from such offset well does not result In such
drainage,ge the deposits l under drilling the
of
a well
or wells on the leased and would not accomplish the purposes of protecting
leased land. Lessor's 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.
e shall
12 DEVELOPMENT-Upon discovery of oil and gas or either of them on the leased land,proceed with reasonable diligence to develop said and at rate and 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 pert 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 orderlyy 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 as operations or productions from this lease. Lessee shall
allocate to this lease the proportionate share of production which the acreage in this lease included
in any such spacing unit bears to the total acreage in said spacing unit.
14. UNITIZATION - COMMUNITIZATION - In the event Lessor permits the and 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
portion not committed thereunder;the term of such separate lease shall be limited as to the original
o� term of this lease. The terms of the lease on that portion remaining in the unit shall be deemed to be
w 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
o no event prior to the end of the primary term of the lease or the extension term of the lease.
cc
W
J
U
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 the rate of production of wells la
practice,except fa
on adjoining lands within the same field and within the limits of good engineering
ngmeeri ng ations on or a
such times as of pro exist o neither market nor st in writing by Lessor. Lesseee therefor, and except or such shall be responsible for c
suspensions production as may be approved 6"e
r_C
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 ars.I o
is unable to produce such gas due to a lack of suitable market therefor, Lessor may grant Lessee ? I
. suspension of his obligations to produce hereunder until a suitable market for such gas can be found, -3
and during any such suspension period,it shall be deemed that gas is being produced hereunder in
paying quantities. Except,however, that beginning on the anniversary date next,of the year of an —rL
ll
extension of the lease by reason of a shut-in well,Lessee shall pay to Lessor a shut-in royalty equal =8
to 82.00 per acre of the lease per annum in addition to the annual
rental.
The be minimum
d to um to Lessor
o
such shut-in royalty payment shall be$240. Each year's shut-in royalty ctifn Th maximum = a
except for the shut-in royalty paid for the year during which the well begins produon.s beyond the extension
extension of the lease,due to the existence of a shut-in well,shall n of further extensions shall a g
term as described in the EXTENSION paragraph a c.c
be at the sole option of Lessor. . eo
17. OPERATIONS-No exploration,drilingorproduconoperatin,including permanent installations,shall e
be within 200 feet of any existing building or other improvement, including water well or reservoir,
in
hall keep a ct log of —the written permission of the owner said or description the formations mprovements. Lessee passed throug�h,rethe depth
each well drilled hereunder,showing e by
at which each formation was reached,the number of feet of each size casing��loe gnwplet o where
set, and the total depth of each well drilled. Lessee, within thirty(30) Y
abandonment of any well drilled hereunder,shall file in the office of Lessor a complete and correct log
of such well,together with a copy of the electric log aand the stem test results, coref records well when
such logs,
gs,
or either f them, are run; and also a copy If any of the information required by this
record f perforations and t reprquired tests, if any
paragraph is contained in reports required to be filed with the Oil and Gas Conservation Commission
of Colorado,the requirements of this paragraph for such Information may be satisfied by such filing
with said Commission,except for copies of the reports as are required by the following paragraph, so iately submitted shaded that lll such not bernformation is subject to public inspection under Colorado law.ilable to Lessor. nY proprietary
Lessee shall bury pipelines below plow depth. Lessee shall set and cement sufficient surface casing
to protect the fresh water wells of the area.
ocation
18. NOTIFICATION-Lessee shall notify UMW
commencing andthesurface drilling
patio operationsthereon.ow of Lessee the
notify
of each r drill site at least►i weeks pangcopy of Lessee's request for approval or
Lessor before commencing to plug and abandon any well by
sundry notice of intent to plug and abandon.
19. BONDS-Lessee shall be liable for all damages to the surface of the land,livestock,growing crops,
water wells,reservoirs,or improvements caused by Lessee's operations on said land. No operations
shall be commenced on the land hereinabove described unless and until Lessee shall have filed a
good and sufficient bond with Lessor,in an amount to be fixed by Lessor,to secure the payment such damages as may be caused by Lessee's operations on said land and to assure compliance
do, and the with
s of lease, the of the te of rall the egulations thereto apppertaining. A bond may be laws in ffecttforr the fife ofproduc on of any well.
20. SETTLEMENT-Leessee shall not remove r draw heny cassing frnery,rom any well unlentess and until all payments res placed on said nd
other than diem
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 Lap
event Lessee and Lessor may negotiate a provision for production of such discovery. r
aIC
22. WATER-This lease does not grant permission,express or implied,to Lessee for water exploration, a co m
drilling,or establishing water wells without the written permission of the surface owner. If Lessor is the _ d
surface owner,said permission shall not be unreasonably withheld. If Lessee desires to establish or — e 8
adjudicate any water right for beneficial use on the leased land,any such adjudication or application V €
shall be in the name of Lessor if Lessor Is the surface owner. The same shall apply to any non- Be a
tributary water rights established on the leased land which may be put to beneficial use off said land. 3 2
mom g
23. DEFAULT-Upon failure or default of Lessee to comply with any of the terms and provisions hereof =&N
Including but not limited to the failure to comply with laws,rules and regulations governing Colorado _r,
oil and gas operations,Lessor is hereby authorized upon notice and hearing,es hereinafter provided, a
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 mall,to the post office address of said lessee as shown by the records of Lessor,a notice --r-9—i
of intention to cancel for such failure or default,specifying the same, stating that if within thirty(30) a'g c
days from the date of mailing said notice,Lessee shall correct such failure or default,no cancellation = a
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 hewing on such notice within thirty(30)days,this lease will re n n
terminate and be canceled by operation of this paragraph without further action by Lessor,or further
notice to Lessee.
24. EXTENSION-If Lessee fails to make discovery of oil and gas,or either of them,In paying quantities
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
of such extension shall be at the sole option of Lessor,according to the following conditions:
A. No lease term will be extended for more than six(6)months from the original expiration date.
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.
C. The Lessee must pay to the Lessor the sum of One Dollar($1.00)per acre leased as delayed
rental for the term of the extension.
D. That the royalty will remain the same.
25. HOLD HARMLESS-Lessee shall indemnify Lessor against all liability and loss,and against all claims
and actions,including the defense of such claims or actions,based upon or arising out of damage or
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 pa
to
aLessor, except for any specific award(s) paid to Lessee for severed oil and gas reserves, in which
oo event of such specific award(s)shall be paid to Lessor in lieu of royalty lost by virtue
co
w of the condemnation. Improvements shall be removed by Lessee per terms in the SETTLEMENT
F paragraph herein. If only a portion of the leased land is taken by condemnation, Lessor may,at its
p option,terminate this lease or terminate only that portion of the lease so taken.
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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 listings and lease preparation. Lessor shall not be liable for any inconvenience or loss
caused by errors which may occur. Lessee shall notify Lessor immediately upon discovery of any
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 bylaw. These resources include,but
are not limited to,all artifacts of stone,wood or metal,pictographs,structures,and bones. A discovery
of anything of prehistoric or historic nature shall be reported to Lessor or the State of Colorado
Archaeologist immediately.
29. DEFINITIONS-
A. "Gas"as used herein shall mean all gases(combustible and noncombustible),and heuwmng but not
limited to all gaseous hydrocarbons,gaseous
B. "Oil and gas'as used herein shall include all substances produced as by-products therewith,
including But not limited to sulfur.
C. 'Paying quantities'as used herein shall mean and refer to quantifies of oil and gas or of either 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 pro t title to the eased b shall,upon
31. WARRANTY
allow Lessee access to suchsor eabstracts and not othertitle papers as it premises,
as lints 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
be delivered to Lessor after Lessee has completed Its title examination and
duringe work.
th term of
however,to the right of Lessee to use such abstracts upon request any
the
lease. •
IN WITNESS WHEREOF, Lessor has hereunto signed and caused its name to be signed by the CHAIR,
BOARD OF COUNTY COMMISSIONERS OF THE COUNTY
OF WELD,with the seal of the office affixed,and
Lessee has signed this agreement,the day and year
•
BOARD OF COUNTY COMMISSIONERS
ATTEST: Atei i�.i��� W COUNTY,COLORADO
Weld County Clerk to th •
'1'' �,
i 3• -r Y � Chair, Board of aunty Com stoners
David E. Long (07/09 03)
By: _,iii a.- �.�
Deputy Clerk to the B •
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ice •
B
111111 1111111111111111II1101111111111II 1111111011111
3098567 0811812003 12:09P Weld County, CO
7 of 8 R 0.00 D 0.00 Steve Moreno Clerk d Recorder
Oil and Gas Lease
Page 8
STATE OF COLORADO )
ss
S COUNTY OF WELD
The foregoing instrumentwas acknowled
gedbeforemethis / c day of ,u 20 03.
Witness my hand and official seal.
Notary Public CAROL A.
My Commission Expires: HARDING •
�OFCOt,_
fry Commission expire.:Jnno 0,1006
111111 11111111111111111111111111111111111111111
3096667 08/18/2003 12:09P Weld Cooly, CO
8 of 8 R 0.00 0 0.00 Steve Moreno Clerk& Recorder
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CREWS & ZEREN, LLC
Petroleum Land Consultants
P.O. Box 336337
Greeley, CO 80633
(970) 351-0733
Fax (303) 484-2110
info@crews-zeren.com
July 28, 2005 {
Lee Morrison
Asst. County Attorney AUG
Weld County f cum
•
915 10th Street, 3rd Floor
Greeley, CO 80631 err Ha $r• c�
Re: Approval of Assignments
Oil & Gas Leases
Dear Lee:
My clients, Tom and Laura Croke, have asked me to transmit the three enclosed
requests for approval of assignment of oil and gas leases by the County.
If there is an administrative procedure for such approvals, please provide the details. If
not, please arrange for the Board's approval of these assignments.
Regards,
William G. "Bill" Crews, CPL
Agent for Tom and Laura Croke
enclosures: 3
WGC/mm 3 L- l"'`'t2
C 2005-2606
o9 - 0.7- o5
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