HomeMy WebLinkAbout830015.tiff AR1933K88
RESOLUTION
RE: APPROVE OIL AND GAS LEASE FOR BELLWETHER EXPLORATION COMPANY
WHEREAS, the Board of County Commissioners of Weld County,
Colorado, pursuant to Colorado statute and the Weld County Home
N
Rule Charter, is vested with the authority of administering the CD
affairs of Weld County, Colorado, and M
WHEREAS, on the 20th day of June, 1983 , the Board of County r '
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Commissioners of Weld County, Colorado did waive the bidding pro-
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cedure for Bellwether Exploration Company on the Wz NWb NW4of Sec-
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tion 26 , Township 6 North, Range 66 West of the 6th P.M. , Weld - ti
County, Colorado, said parcel containing 0 . 57 mineral acres, and z �a
WHEREAS, Bellwether Exploration Company has submitted a
lease agreement for the Board' s review and approval concerning x w
the above mentioned parcel, and
WHEREAS , said lease is for a period of one year, beginning
y
the 11th day of July, 1983 , through the 10th day of July, 1984 , o
with the further terms being as stated in the lease agreement,
a copy of which is attached hereto and incorporated herein by -^
reference, and
WHEREAS , after review, the Board deems it appropriate to
approve said Oil and Gas Lease for Bellwether Exploration
Company.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Com-
missioners of Weld County, Colorado that the Oil and Gas Lease
for a period of one year as above stated, concerning the here-
inabove described parcel containing 0 . 57 mineral acres be, and
hereby is, approved.
DQ7O 830015
Page 2
RE: OIL AND GAS LEASE - BELLWETHER EXPLORATION COMPANY
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The above and foregoing Resolution was, on motion duly made LFIJ
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and seconded, adopted by the following vote on the 11th day of 7.!
July, A.D. , 1983.
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li BOARD OF COUNTY COMMISSIONERS T m
ATTEST: / r L(n� v� f WELD COUNTY, COLORADO m:
Weld County Clerk and Recorder Clerk ..��XX// �. _ T
and to the Board Ch ck Carlsdn,Chairman z
y- EXCUSED 7C .D
putt' County Clerk John T. Martin, Pro-Tem
73
��jj�� �}� T:
APPl ( sp P,, AS TO FORM: 1�/ nn.L+..t-�
Gene R. Brantner
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61j1.,,
Norman Carlson
J que ne J son
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DAY FILE: July 13 , 1983
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WELD COUNTY. COLORADO OIL AND CAS LEASE
THIS AGREEMENT made thisl lthday of July , 1984 between Weld County, Colorado, a political subdivision of
the h State eofdColorado, bythe Board of County Commissioners, for its respective interests, C/0 Board of County Commis-
one'sv2ilriCo mCentennial liOIIerCO15 10th Street, Greeley, Colorado 80631, Lessor (whether one or more), and
peiiP Company Lessee, WITNESSETH:
1. Lessor in consideration of Seventy-five and no/100 Dollars ($ 75 . 00 ).
in hand paid, of the royalties herein provided, and of the agreement of Lessee herein contained, hereby grants, leases
and lets exclusively unto Lessee for the purpose of investigating, exploring, prospecting, drilling and mining for and
producing oil, gas and other hydrocarbons, laying pipe lines, building tanks, power stations, telephone lines and other
structures thereon to produce, save, take care of, treat, transport and own said products, and housing its employees,
(subject to all applicable Weld County Zoning Regulations), the following tract of land with any reversionary rights
therein being situated in the County of Weld, State of Colorado, and described as follows:
See Exhibit "A" attached hereto and made a
part hereof.
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and containing — 0 . 57 acres, more or less ( 0 . 57 net mineral acres).
v.:
2. Subject to the other provisions herein contained, this lease shall be for a term of on eyears from this date
(called "primary term") and as long thereafter as oil, gas or other hydrocarbons, is produced from said land hereunder,
or drilling or reworking operations are conducted thereon. ,one-sixth (1/6th)
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O 3 3. The royalties to be paid by Lessee are: (a) on oil,/dXX-'(ilglcittXof that produced and saved from said land, the
,r same to be delivered at the wells, or to the credit of Lessor into the pipe line to which the wells may be connected;
. ,. Lu Lessee may from time to time purchase any royalty oil in its possession, paying the market price therefor prevailing
., for the field where produced on the date of purchase; (b) on gas, including 1yi casinghead gas or other hydrocarbon sub-
s, stance, produced from said land and sold orb,Ic4 otfi�i,wr ilib�iyi the manufacture of gasoline or other products
- therefrom, the market value at the well��yfftem w I gfa o sold or used, provided that on gas sold at the- �
w wells the royalty shall be &4ece9VPItli 4f the amount realized roof such sale; on sulfur the royalty shall be fifty �
r- re cents (50e) per long ton. Lessee shall have free use of oil, .gas, .coal, wood and water from said land, except water
cr from Lessor's wells, for all operations hereunder, and the royalty on oil and gas shall be computed after deducting
any so used. If a well capable of producing gas in paying quantities is completed on the above described land and is
1 Y shut in, this lease shall continue in effect for a period of one'year from the date such well is shut in. Lessee or
re any assignee may thereafter, in the manner provided herein for the payment or tender of delay r=-tals, pay or tender
Li to Lessor as royalty, on or before one year from the date such well is shut in, the sum of $100.00 per well, and, if
m —',., such payment or tender is made, this lease shall continue in effect for a further period of one year. In like manner
and upon like payments or tenders annually, made on or before each anniversary of the shut-in date of such well, this
a z lease shall continue in effect for successive periods of twelve (12) months each.
, 4. if operations for drilling are not eoarxneed on said land as hereinafter provided, on or before one year from
o a this date,-the lease shad-1 then terminate as to both parties, uvless en--er ba'^r^ .t.rh anai"art••y data I hall
°' may or tender to Lessor, and shall continue as the depository for all rentals payable hereunder regardless of changes
in ownership of said land or the rental: either by conveyance or by the death or incapacity of Lessor, the sum of
w Dolls.(-) ($ ) no. ,.t ...i,.uel acre, (h...ci„ culled ,cutal), ahi.h shall
st eovor the privilege of deferring cocncncement of operations for drilling for a period of twelve (12) months. In like
r" manner and upon like payments or tenders annually the comencement of operations for drilling may be further defined
z Cu, acc.easi.e pe,ivda of twelve (12) month. much dining the primary term. The payment or tender of rental herein
referred to may be made in currency, or check at the option of the Lessees and the depositing of such currency, or
v check in any post office, properly addressed to the Lessor, on or before the rental paying date, shall be deemed pay
rent as herein provided. The dcun cash payment is consideration for the lease according to its terns and shall not
he allocated as more rental for a perted. 1 Lessee may at any time execute and deliver to Lessor or place of record
:' r a release or releases covering any portion or portions of the above described premises and thereby surrender this
lease as to such portion or portions and be relieved of all obligations as to the acreage surrendered, (and—thereafter
{ the .entals payable heresnde, shall be reduced in the proportion that the acreage covered hereby is reduced by ttid
v ri release e rel diet
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". 5. Should any well drilled on the above described land during thc primary term before production is obtai ud be
a dry hole, or should production be obtained during the primary term and-t`---„n�a,te,—ee- -^-se,--then-and—In-either event.
if ope.ntiora fa, drilling an additional well are not commenced or operations for reworking an old well are not pure
— Sued on said land on or before the first tental paying date next succeeding thc cessation of production or drilling
G. reworking on said well or wolls,'then this lease shall terminate unless Lessee, on or before said date, shall re
sumr the portent of rentals. Upon ;csumetion of the payment of rental,- Section 4 governing the payment of rentals,
shall continuo in force just as though there had been no interruption in the rental payments. If during the last year
of the r.two,; t..." a.,J r•iu, tv t yhw diacu..c Vt 44, swot v, ut e,. hydrvemr'bvnr sin acid lw.d L humid shill e
•d.y hole thereon, or if after discovn y of oil, gas or other hydrocarbons before or during the last year of the
primary term the production thereof should cease during the last year of said term from any cause, no rental payment
pr operations are necessary in order to keep the lease in force during the remainder of thc primary term. if, at the
"expiration of the primary term, Lessee is conducting operations for drilling a new well or reworking an old well, this
loose neverthelessshall continue in force as long as such drilling or reworking operations ccntiaue, cniif, after the
expiration of the primary term, production on this lease shall cease, this lease nevertheless shall continue in force
if drilling or reworking operations are commenced within sixty (60) days after such cessation of production; if pro-
duction is restored or additional production is discovered as a result of any such drilling or reworking operations,
conducted without cessation of more than sixty (60) days, this lease shall continue as long thereafter as oil, gas.
other hydrocarbons or other mineral is produced and as long as additional drilling or reworking operations are had
without cessation of such drilling or reworking operations for more than sixty (60) consecutive days.
6. Lessee,at its option, is hereby given the right and power to pool or combine the land covered by this lease,
or any portion thereof, as to oil and gas, or either of them, with any other land lease or leases when in Lessee's
judgment it is necessary or advisable to do so in order to properly develop and operate said premises, such pooling to
be into a well unit or units not exceeding forty (40) acres, plus an acreage tolerance of ten per cent (10%) of forty
(40) acres, for oil, and not exceeding six hundred and forty (640) acres, plus an acreage tolerance of ten per cent
(10%) of six hundred and forty (640) acres, for gas, except that larger units may be created to conform to any spacing
or well unit pattern that may be prescribed by governmental authorities having jurisdiction. Lessee may pool or com-
bine acreage covered by this lease, or any portion thereof, as above provided, as to oil or gas in any one or more
'strata, and units so formed need not conform in size or area with the unit or units into which the lease is pooled or
combined as to any other stratum or strata, and oil units need not conform as to area with gas units. The pooling in
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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-
,o c ing the pooled acreage. The entire acreage so pooled into a unit shall be treated for all purposes, except the payment
.i 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,
C: o except the payment of royalties, as if such operations were on or such production were from or such completion were
on the land covered by this lease, whether or not the well or wells be located on the premises covered by this lease.
In lieu of the royalties elsewhere herein specified, Lessor shall receive from a unit so formed, only such portion of
C the royalty stipulated herein as the amount of his acreage placed in the unit or his royalty interest therein bears
LLto the total acreage so pooled in the particular unit involved. Should any unit as originally created hereunder con-
o 3 taro 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
LL enlarged unit shall in no event exceed the acreage content hereinabove specified. In the event an existing unit is
LL' so enlarged, Lessee shall execute and place of record a supplemental declaration of unitization identifying and
cc describing the land added to the existing unit; provided, that if such supplemental declaration of unitization is not
is filed until after production is obtained on the unit as originally created, then and in such event the supplemental
o declaration of unitization shall not become effective until the first day of the calendar month next following the
,t !r filing thereof. In the absence of production Lessee may terminate any unitized area by filing of record notice of
.' termination.
rn 03 •� 7. Lessee also shall have the right to unitize, pool, or combine all or any part of the above described lands
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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
zi 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
N.. Li shall not terminate or expire during the life of such plan or agreement. In the event that said above described
l t— 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
c0 W paid hereunder to Lessor, be regarded as having been produced from the particular tract of land to which it is al-
PI 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
x z plan of development or operation adopted by Lessee and approved by any governmental agency by executing the same
z 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
Uj c any time during or after the expiration of this lease to remove all property and fixtures placed by Lessee on said
cc r 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,
0 k; 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.
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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 aegrcgated
portion of said land, the rentals payable hereunder shall be apportionable among the several leasehold miners ratably
rcordln0 to the surface area of each, and default in rental payment by one shall not affect the rights of other lease-
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.
i1. 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—rents s to
be paid Lessor shall be reduced proportionately.
12. Not withstanding in a provision of this lease to the contrary, no operations shall be conducted on the above
described land without the written consent of the Lessor.
13. Upon the termination of this lease in whole or in part by election or by failure to make payments as afore-
said, Lessee or its assigns shall within thirty (30) days release by written instrument the land or portion thereof
which said lease terminates, and said notice shall also be sent to Lessor giving the book and page number of said
lease. It is expressly understood that this lease is subject to and controlled by any law of the State of Colorado
now in effect restricting or limiting the powers of counties or boards of county commissioners, and any provision
herein in conflict therewith shall be inoperative and void.
14. All of the provisions of this lease shall inure to the benefit of and be binding upon the parties hereto,
their heirs, administrators, successors and assigns.
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 CCOOMMMIISSSIONERS
WELD NT COL
ATTEST:
Weld Count Clerk and Recorde •-��=--`..n.' ,'f��•�
and C1er to the Board .fY� —`
. EXPL ,,
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LESSEE: BELLWETHER EXPLORATION
fA, .z COMPA ,
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STATE OF COLORADO )) SS Suite 300 , 1630 Welton St . ,
COUNTY OF WELD ) .Denver , Colorado 80202
The foregoing instrument was acknowledged before me this day of 19 6
. Y
My commission expires: Witness my hand and official seal.
N,
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Notary Public
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; 17 STATE OF COLORADO, )
) SS.
COUNTY OF DENVER, )
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On this / 51-41 day of July, A. D. , 1983, before me personally appeared
e ,09e..4 51-41
, to me ers,onally known , who , being by me
ly gworn, did say that he is the s,q/e.c.) of Bellwether
Exploration Company, and that the seal affixed to said instrument
M �'. is the corporate seal of said corporation and that said instrument
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was signed and sealed in behalf of said corporation by authority of
a z its Board of Directors , and said 9c-m,r.e % '.zC-�e
`. - acknowledged said instrument to b the free act and deed of said
1
0E.1 corporation.
Witness my hand and seal this .S" day of July, 1983.
c/at_A_Ln., 71)&'!)liO i 1
z Notary Public .
.r " My commission expires : i1tCl 5-1-f1
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LL
c in
-- - EXHIBIT "A" attached to and made a part of Weld County , Colorado Oil
u and Gas Lease , dated July 11 , 1983 , in favor of
Bellwether Exploration Company as Lessee .
ow
ow
' DESCRIPTION:
cix
La
,-,'C A triangular tract or parcel of land in the Northeast corner of the
West Half of the Northwest Quarter of the Northwest Quarter (W/2
NW/4 NW/4) of Section Twenty-six (26) , Township Six (6) North., Range
- " Sixty-six (66) West of the Sixth Principal Meridian, Weld County ,
Colorado , and being more particularly described as follows , to-wit :
o Y Beginning at a point on the South line of the County road on the North
of said W/2 NW/4 NW/4 , thirty (30) feet more or less South of and 426
Lil
r,-) ..1 feet more or less , east of the Northwest corner of said Section 26 ,
en O said point being 50 feet Southwesterly of when measured at right
z angles to the center line of the Denver , Laramie 8 Northwestern
Railroad, as the same is now located, surveyed and staked out over
o , and across the W/2 NW/4 NW/4 ; thence South 47° 21 ' East , SO feet
from and parallel to said center line 320 feet more or less to a
oz. point on the East line of said W/2 NW/4 NW/4 ; thence North on said
East line 212 feet more or less to the South line of said County
M
road; thence East on said South line 235 feet more or less , to
o z the point of beginning .
o
-
wc SIGNED FOR IDENTIFICATION:
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— et' WELD COUNTY, COLORADO ,
eq.
n BY BOARD OF OUNTY COMMISSIONERS .
a-c
LW R E ORATION COMPANY,
By :
- "V
1Is\ I
O m 4) .-I i 1 toU b 4) (�� ti
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o a 11 rl —1 0
1 $ ri O N e N ❑
3
WO ry
>f N w �S @ WMO s
4
a. ai 030 IN
S m" W rl � z \� Ls
5 i .
N ¢ wz % omel ° g .12 $ i ' nu — a
W855 W gE a ^_
u c - air i p 1' in i s ! i ❑ (1--N I �\
u. 2a Woo a a s. )81 _ ) N JUi
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M 6 E,— 11m . I0 H F ❑❑
LL
NO ge) Q 71:1 4
W 3 N N g •
4C N 't N o` m L O
LL u f8 fortn'9611,July 1982 ere, -/r0/C -7//- / RETURN RECEIPT
W too G>// ,
__
D. L. PERCELL
Suite 201 —3615 S.Tamarac Street
Denver, Colorado 80237
Telephone 303-773-8171 —303-773-8173
PETROLEUM LAND SERVICE OLL &.GAS PROPtf� S
July 5, 1983.
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J s••" 81983 �\I
i\L-----7-
ti\
1.� � - y', GOLO.
BOARD OF COUNTY COMMISSIONERS, u"t "
Weld County Centennial Center,
915 Tenth Street,
Greeley, Colorado 80631.
RE: OIL AND GAS LEASE,
BELLWETHER EXPLORATION COMPANY,
0.57 acres lying within
W/2 NW/4 NW/4 Section 26-6N-66W,
Weld County, Colorado.
Dear Sirs:
As per your instructions I have prepared and return herewith the following
to-wit:
1. Original and one copy of formal Weld County, Colorado Oil and Gas Lease
covering the captioned acreage;
2. Personal check in the amount of $75.00 representing bonus consideration
for the execution and granting of subject Oil and Gas Lease.
You will please note that I have deleted all reference to payment of delay
rentals insofar as said lease is for a primary term of one (1) year only and
therefore no rentals are due or payable. It is our intention to pool this
leasehold immediately with the remainder of our acreage in the W/2 NW/4 of
said Section 26, and our producing well thereon, therefore the one year term
is sufficient.
Please advise when this lease will be considered for approval and execution
and if you feel the undersigned need be present at such Commissioners' meeting.
Thanking you for your kind consideration and cooperation, I am,
Yours very truly,
D. L. Percell,--------)
enc. (3) .
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