HomeMy WebLinkAbout20031841.tiff RESOLUTION
RE: AUTHORIZE OIL AND GAS LEASE COVERING CERTAIN PROPERTY OWNED BY
WELD COUNTY, COLORADO - E1/2, S2, T8N, R60W
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, Frank H. Walsh, P.O. Box 30, Sterling, Colorado 80751, submitted the high
bid to lease 326.37 net mineral acres, more or less, described to-wit:
E1/2 of Section 2, Township 8 North, Range 60
West of the 6th P.M., Weld County, Colorado
WHEREAS, Weld County desires to accept the high bid offer submitted by Frank H.
Walsh to lease the above described mineral acreage for $14.00 per net mineral acre, for a total
sum of$4,569.18, 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 Frank H. Walsh be, and hereby is, accepted for
a period of three (3) years.
2003-1841
LE0154
OIL AND GAS LEASE - E1/2, S2, T8N, R60W
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 LINTY, COLOR DO
ATTEST: MO
♦ avid E. L ng, Chair
Weld County Clerk to t 'o� S
i
1861 i (� r 4'u . ! obert D. sden, Pro-Tem
BY: ��//I�. .. �:C J�"r vti � '
Deputy Clerk to th
�U ?`1Jy :i M. J. eile
AP' ' iYJ=IAST• ��RM: ' It
William H. J rke
X474/1'
�ountyAttor -y p�,�
Glenn Vaad — 1
Date of signature: 77,
r�y
2003-1841
LE0154
•
WELD COUNTY OIL AND GAS LEASE
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Containing 326.37 acres, more or less:
Containing 326.37 net mineral acres, more or less: ' I
THIS LEASE AGREEMENT,dated this qt' day of ,20 03 made and
entered into by and between WELD COUNTY, COLORADO, a pot•tical subdivision of the STATE OF
COLORADO,acting byand 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:
Frank H. Walsh , P.O. Box 30, Sterling, Co 80751
hereinafter called Lessee:
WITNESSETH
WHEREAS,said Lessee has applied to Lessor for an oil and gas lease covering the land herein described,
and has paid a filing fee in the amount of$10.00,plus a bonus consideration of$ 15.00 per mineral acre,
fixed by Lessor as an additional consideration for the granting of this lease,and Lessee agrees to pay an annual
rental of$ , computed at the rate of$ , per mineral acre or fraction thereof per
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 therefrom with the right to own all oil and gas
so produced and saved therefrom and not reserved as royalty by Lessor under the terms of this lease,together
with rights-of-way,easements and servitudes for pipelines,telephone and telegraph lines,tanks and fixtures for
producing and caring for such product, and housing and boarding employees, and any and all rights and
privileges necessary for the exploration and operation of said land for oil and gas, the following described land
situated in the County of Weld, State of Colorado, and more particularly described as follows:
DESCRIPTION OF LAND/ SECTION TOWNSHIP RANGE
E 1/2 2 8N 60W
TO HAVE AND TO HOLD said land,and all the rights and privileges granted hereunder to Lessee until the
hour of twelve o'clock noon on the R day of t 20 06 as primary term, and
so long thereafter as oil and gas, o either of them, is pro ced in paying quantities from said land or Lessee
is diligently engaged in bona fide drilling or reworking operations on said land, subject to the terms and
conditions herein. Drilling or rework' g 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 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.
111111111111IIII11111111111111111111111111Brill Hi LE0154
3087874 07/25/2003 12:26P Weld County, CO
1 of 8 R 0.00 0 0.00 Steve Moreno Clerk& Recorder 2003-1841
Oil and Gas Lease
Page 2
In consideration of the premises, the parties covenant and agree as follows:
a
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.
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C.)
2. ROYALTY - Lessee shall account for any and all substances produced on the leased land and Lessee c 1
shall pay to Lessor as royalty, in addition to the rentals provided, but except for products used on the �3
leased land, unavoidably lost or flared on the leased land,with approval of Lessor, the following: — ,
mod :
A. On oil, 12.5% of the oil produced and saved from the leased land. -N
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At the option of Lessor, and with sixty (60) days' notice to Lessee, Lessor may take its royalty oil c
in kind, in which event Lessee shall deliver such royalty oil to Lessor on the leased land,free of cost o c
or deduction, into the pipelines or storage tanks designated by Lessor, but Lessee shall not in such =in c
case be required to provide free tankage for any such oil for a longer period than one month after the _n c
same is run into tanks. With sixty(60)days'notice to Lessee, Lessor may cease taking oil royalty m v
in kind. When paid in cash, the royalty shall be calculated upon the fair market value of the oil at _6-a
the well which shall not be deemed to be less than the price actually paid to Lessee at the well by 10^ro
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.
B. On gas, including casing head gas or other gaseous substance, 12.5% of the fair market value
at the well or of the price received by Lessee at the well, whichever is greater, of all gas produced
and sold from the leased land or utilized off the land by Lessee. A copy of all contracts for sale of
gas shall be furnished to Lessor. Where gas is sold under contract that has been approved by
Lessor,the fair market value of such gas for determining the royalties payable hereunder shall be the
price at which such gas is sold under such contract. No approval by Lessor of the terms of any such
agreement shall operate to make Lessor a party thereto or obligate it thereunder in any way. At the
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.
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
Lessor's in-kind royalty shall be borne by Lessor.
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
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. —
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5. PAYMENTS AND REPORTS -All payments and reports due hereunder shall be made on or before = g
the day such payments and reports are due. Nothing in this paragraph shall be construed to extend c rc
the expiration of the primary term hereof. V Y
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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 ; 2
be submitted prior to the last day of the second month following each month's sale of production. d o`
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All payments shall be made by cash, check, certified check, or money order. Payment having 0_ g
restrictions,qualifications,or encumbrances of any kind whatsoever shall not be accepted by Lessor. o N y
A penalty for a late payment shall be charged as set forth in the PENALTIES paragraph herein. r
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6. PENALTIES -A penalty shall be imposed for, but not limited to late payments, improper payments, _o 0
operational deficiencies,violation of any covenant of this lease,or false statements made to Lessor. —19
Penalties shall be determined by Lessor unless otherwise provided for by law and may be in the form _N o
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 cc
be changed from time to time after public notice. —'c
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7. LAW -The terms and conditions of this lease shall be performed and exercised subject to all laws, =
rules, regulations, orders, local ordinances or resolutions applicable to and 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.
8. SURRENDER-Lessee may at any time,by paying to Lessor all amounts then due as provided herein,
surrender this lease insofar as the same covers all or any portion of the land herein leased and be
relieved from further obligations or liability hereunderwith respect to the land so surrendered;provided
that no partial surrender or cancellation of this lease shall be for less than contiguous tracts of
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 -
A. Lessee,with prior written consent of Lessor, shall have the right to assign the entire leasehold
interest of said Lessee in all or part of the land covered hereby, but not less, however, than
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 Lessor
shall make an assignment charge in an amount to be determined by Lessor. Prior to written
approval by Lessor of assignment of this lease, Lessee (assignor) shall not be relieved of its
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.
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Oil and Gas Lease
Page 4
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C. Lessee shall notify Lessor of all assignments of undivided percentage or other interests. Said
a
interests will not be recognized or approved by Lessor, and the effect of any such assignments `a
will be strictly and only between the parties thereto, and outside the terms of this lease: and no =o a
dispute between parties to any such assignment shall operate to relieve Lessee from performance "y
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 — c
hereof, and for the sending of all notices required by this lease and for the performance of all _v a
terms and conditions hereof. —3
D. Although not binding on Lessor,all instruments of every kind and nature whatsoever affecting this = `.
lease should be filed with the Lessor. 'N
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10. OVERRIDING ROYALTY -Any and all reservations or assignments or overriding royalties shall be =0,2
subject to approval by Lessor. The total of said overriding royalties shall not exceed five percent(5%), —g c
including any overriding royalty previously provided for unless production exceeds a monthly average mom N€
of fifteen (15) barrels per day or ninety thousand cubic feet of gas per day(90 MCF/D). In the event =n C
production drops to this amount or less,any overriding royalties which exceed five percent(5%)may =--
be suspended. Lessor's approval of a reservation or assignment of an overriding royalty shall not bind —..x
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. —59,
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 results in drainage from the
leased land,unless Lessee demonstrates to Lessor's satisfaction,by engineering,geological,or other
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. 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.
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 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 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
a portion not committed thereunder, the term of such separate lease shall be limited as to the original
m 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.
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Oil and Gas Lease
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15. PRODUCTION-Lessee shall,subject to applicable laws,regulations and orders, operate and produce a o
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 a
on adjoining lands within the same field and within the limits of good engineering practice,except for _cs m
such times as there exist neither market nor storage therefor, and except for such limitations on or =
suspensions of production as may be approved in writing by Lessor. Lessee shall be responsible for =o
adequate site security on all producing properties. a c,
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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 m
suspension of his obligations to produce hereunder until a suitable market for such gas can be found, a NN
and during any such suspension period, it shall be deemed that gas is being produced hereunder in = w
paying quantities. Except, however, that beginning on the anniversary date next, of the year of an —r
extension of the lease by reason of a shut-in well, Lessee shall pay to Lessor a shut-in royalty equal —�,,o
to $2.00 per acre of the lease per annum in addition to the annual rental. The minimum amount of N o
—
such shut-in royalty payment shall be $240. Each year's shut-in royalty shall be forfeited to Lessor =„a
except for the shut-in royalty paid for the year during which the well begins production. The maximum c
extension of the lease,due to the existence of a shut-in well,shall be five years beyond the extension —o ec
term as described in the EXTENSION paragraph herein. The granting of any further extensions shall a n o0
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be at the sole option of Lessor. o,o
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17. OPERATIONS-No exploration,drilling or production operation, including permanent installations, shal
be within 200 feet of any existing building or other improvement, including water well or reservoir,
without the written permission of the owner of said improvements. Lessee shall keep a correct log of
each well drilled hereunder,showing by name or description the formations passed through,the depth
at which each formation was reached,the number of feet of each size casing set in each well,where
set, and the total depth of each well drilled. Lessee, within thirty (30) days after the completion or
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 and the radioactivity log of the well when such logs,
or either of them, are run; and also a copy of all drill stem test results, core records and analyses,
record of perforations and initial production tests, if any. If any of the information required by this
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,and
provided that all such information is immediately available to Lessor. Any proprietary information so
submitted shall not be subject to public inspection under Colorado law.
Lessee shall bury pipelines below plow depth. Lessee shall set and cement sufficient surface casing
to protect the fresh water wells of the area.
18. NOTIFICATION -Lessee shall notify Lessor and the surface lessee or surface owner of the location
of each drill site at least two weeks prior to commencing drilling operations thereon. Lessee shall notify
Lessor before commencing to plug and abandon any well by copy of Lessee's request for approval or
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 for
such damages as may be caused by Lessee's operations on said land and to assure compliance with
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 mi=c a
event Lessee and Lessor may negotiate a provision for production of such discovery. y
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22. WATER-This lease does not grant permission, express or implied, to Lessee for water exploration, _ o c'
drilling,or establishing water wells without the written permission of the surface owner. If Lessor is the _C' g
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 _3
shall be in the name of Lessor if Lessor is the surface owner. The same shall apply to any non- =d °.
tributary water rights established on the leased land which may be put to beneficial use off said land. =r V
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23. DEFAULT- Upon failure or default of Lessee to comply with any of the terms and provisions hereof C
including but not limited to the failure to comply with laws, rules and regulations governing Colorado =oo c
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 =N c
event of any such default or failure,Lessor shall,before making any such cancellation,send to Lessee =o a
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) =m
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 —C'"'
notice, and if Lessee does not request a hearing 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.
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 paid to
Lessor, except for any specific award(s) paid to Lessee for severed oil and gas reserves, in which
p 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
Fparagraph 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.
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Oil and Gas Lease
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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. a d
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28. ARCHAEOLOGY- Lessee shall not destroy, disturb, mar, collect, remove or alter any prehistoric or —-n to
historic resources of any kind on Weld County lands as provided by law. These resources include,but
are not limited to,all artifacts of stone,wood or metal,pictographs,structures,and bones. A discovery = o ZS
of anything of prehistoric or historic nature shall be reported to Lessor or the State of Colorado =0 S
Archaeologist immediately. - a d E.
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29. DEFINITIONS - " � �
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A. "Gas"as used herein shall mean all gases(combustible and noncombustible), including but not =r
limited to all gaseous hydrocarbons, gaseous compounds,carbon dioxide, and helium. —
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B. "Oil and gas" as used herein shall include all substances produced as by-products therewith, N c
including But not limited to sulfur. -N c
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C. "Paying quantities"as used herein shall mean and refer to quantities of oil and gas or of either of
them sufficient to pay for the current cost of producing same. --r--
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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 COMMISSIONERS OF THE COUNTY OF WELD,with the seal of the office affixed,and
Lessee has signed this agreement, the day and year first above written.
ATTEST: lid, / .,nv�% BOARD OF COUNTY COMMISSIONERS
/tyClerg t a /� ` WEL COUNTY, COLORADO
Weld County Clerk to t a:. ��b4) `
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Chair, and of County Com i Toners
/ David E. Long (07/09/ 03)
By:
Deputy Clerk to the
LESSEGeG4
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Oil and Gas Lease •
Page 8
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STATE OF COLORADO )
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The foregoing instrumentwas acknowledged before me this /3 day of Q6r� -- .20
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