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Home My WebLink About840055.tiff RESOLUTION RE: APPROVE REQUEST OF MACHII-ROSS PETROLEUM COMPANY TO WAIVE BIDDING PROCEDURE CONCERNING OIL AND GAS LEASE AND ACCEPTING OFFER TO LEASE MINERAL ACRES 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, Machii-Ross Petroleum Company has requested that the bidding procedure be waived concerning an Oil and Gas Lease on the following described mineral acres: Township 5 North, Range 67 West 6th P.M. Section 29 : Beginning at the NE Corner of SE4 running thence westwardly and along the northerly line of said SEa 30 feet, thence southerly and parallel with the easterly line of said SEa to the southerly line thereof. Thence easterly and along said southerly line 30 feet to the SE corner of said SEa of Section 29 , thence northwardly and along the easterly line of said SEa to the point of beginning. Containing 1 . 82 mineral acres, more or less . WHEREAS , after review, the Board of County Commissioners found that Machii-Ross Petroleum Company did show good cause for waiving the bidding procedure on said Oil and Gas Lease, and WHEREAS , Machii-Ross Petroleum Company is offering to lease the above described mineral acres , containing 1. 82 mineral acres , more or less , and WHEREAS , said lease is to be for a period of three years for the total sum of One Hundred Eighty-Four and No/100 Dollars ($184 .00) , together with a rental fee of One Dollar (1 . 00) per net mineral acre, with eighteen percent (18%) royalty, a copy of said lease being attached hereto and incorporated herein by reference, and WHEREAS, Weld County is desirous of accepting said offer from Machii-Ross Petroleum Company to lease the above described mineral acres. 840055 NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the request of Machii-Ross Petroleum Company to waive the bidding procedure on an Oil and Gas Lease concerning the above described mineral acres, be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the offer of Machii- Ross Petroleum Company, P.O. Box 430 , Fort Lupton, Colorado 80621 , to lease the above described mineral acres for a period of three years with the total sum being as above listed be, and hereby is , accepted. The above and foregoing Resolution was , on motion duly made and seconded, adopted by the following vote on the 24th day of October, A.D. , 1984 . ° BOARD OF COUNTY COMMISSIONERS ATTEST: + ;" -" -' ' WELD COUNTY, COLORADO Weld County Clerk and Recorder and Clerk to the Board Norman Carlson, Chairman BY: 55:2:11 ", `� c u ' ne J son, Pro-Tem Deput/Count'/clerk APPROVED AS TO FORM: ene R. B antner _ EXCUSED DATE OF SIGNING - AYE Chuck Carlson County ttor eye ,— J� J n T. Martin AR1186b60 WELD COUNTY COLORADO OIL AND CAS LEASE B 1049 REC 01988680 11/15/84 15 : 21 $0. 00 1/004 F 1420 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO THIS AGREEMENT made this 2/itiday or a CtoH?er, Iii' , between Weld County, Colorado, a political subdivision of the State nt Colorado, ty the Hoard of County Commissioners, for its respective interests, C/0 Board of County Co.'rmis- ;ioners, Weld County Centennial Center, '15 10th Street, Greeley, Colorado 80631 , Lessor (whether one nr more), and Lessee, WITNESSETH: Id-ichii—Idos Petroleum 20. 1. lessor in consideration of :HH` '1111drfcj c 1 '';it 4' t'v:oO and UU/luU Dollars (4 1u2 . UU ). 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 Geld, State of Colorado, and described as follows: B 1049 REC 01988680 11/15/84 15 : 21 $0 . 00 2/004 F 1421 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO and containing 1, 88 acres, more or less ( 1 .ci,_ net mineral acres). 2. Subject to the other provisions herein contained, this lease shall be for a term of 3 years 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. l ULO 3. The royalties to be paid by Lessee are: (a) on oil , one eighth of that produced and saved from said land, the same to be delivered at the wells, or to the credit of Lessor into the pipe line to which the wells may be connected; 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 Cate of purchase; (b) on gas, including casinghead gas or other hydrocarbon sub- stance, produced from said land and sold or used off the premises or in the manufacture of gasoline or other products therefrom, the market value at the well of ^^ cigbth of the gas so sold or used, provided that on gas sold at the 1 8 ,, wells the royalty shall he r'o igh*h of the amount realized from such sale; on sulfur the royalty shall be fifty 11.3 ; cents (50C) per long ton. Lessee shall have free use of oil , gas, coal , wood and water from said land, except water 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 shut in, this lease shall continue in effect for a period of one year from the date such well is shut in. Lessee or any assignee may thereafter, in the manner provided herein for the payment or tender of delay rentals, pay or tender to Lessor as royalty, on or before one year from the date such well is shut in, the sum of $100.00 per well , and, if such payment or tender is made, this lease shall continue in effect for a further period of one year. In like manner and upon like payments or tenders annually, made on or before each anniversary of the shut-in date of such well, this lease shall continue in effect for successive periods of twelve (12) months each. 4. If operations for drilling are not commenced on said land as hereinafter provided, on or before one year from this date, the lease snail then terminate es to both parties, unless on or before such anniversary date Lessee shall nay or !ender to Lessor, and snail continue as the depository for all rentals payable hereunder regardless of changes in ownership of said land or the rentals either by conveyance or by the death or incapacity of Lessor, the sum of 'One Dollar(s) ($ 1.00) per net mineral acre. (herein called rental), which snail cover the privilege of deferring commencement of operations for drilling for a period of twelve (12) months. In like manner and upon like payments or tenders annually the commencement of operations for drilling may be further deferred for successive periods of twelve (12) months each during the primary ,term. The payment or tender of rental herein referred to may be made in currency, or check at the option of the Lessee; and the depositing of such currency, or check in any post office, properly addressed to the Lessor, on or before the rental paying date, shall be deemed pay- ment as herein provided. The down cash payment is consideration for the lease according to its terms and shall not he allocated as mere rental for a period. Lessee may at any time execute and deliver to Lessor or place of record a release er 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 rentals payable hereunder shall be reduced in the proportion that the acreage covered hereby is reduced by said release or releases. 5. Should any well drilled on the above described land during the primary term before production is obtained be a dry hole, or should production be obtained during the primary term and thereafter cease, then and in either event, • if operations for drilling an additional well are not commenced or operations for reworking an old well are not pur- sued on said land on or before the first rental paying date next succeeding the cessation of production or drilling or reworking on said well or wells, then this lease shall terminate unless Lessee, on or before said date, shall re- sume the payment of rentals. Upon resumption of the payment of rental , Section 4 governing the payment of rentals, shall continue in force just as though there had been no interruption in the rental payments. If during the last year of the primary term and prior to the discovery of oil, gas, or other hydrocarbons on said land Lessee should drill a dry hole thereon, or if after discovery 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 or operations are necessary in order to keep the lease in force during the remainder of the 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 lease neverthelessshall shall continue in force as long as such drilling or reworking operations continue, or if, 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 ntcTDL,'5 MEMORANDUM ALL. BLACKOUTS, ADDITIONS. AND CHANCES WERE PRiuLNT AT THE TIME THE INSTRU- MENTS WERE RECORDED, Township 5 :.ort?�, .,anre )i . est Jth section 29: ;e7inni.qr; at the corner of 3_.:., runninc thence l:estwardl_ anc: alortc. the norther1 line of said -ti 30 feet, t :ence southerly and parallel with the easterly line of said Si to the southerly line thereof. Thence easterly and alorrf said southerly line 30 feet to t'le 3i corner of of Section 29, thence northwardly and along line of said to the point of .. ecnirninr. • B 1049 REC 01988680 11/15/84 15: 21 $0 . 00 3/004 F 1422 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO one or more instances shall not exhaust the rights of the Lessee hereunder to pool this lease or portions thereof into other units, Lessee shall execute in writing and place of record an instrument or instruments identifying and describ- ing the pooled acreage. The entire acreage so pooled into a unit shall be treated for all purposes, except the payment of royalties, as if it were included in this lease, and drilling or reworking operations thereon or production of oil or gas therefrom, or the completion thereon of a well as a shut-in gas well, shall be :insiilered for all purposes, except the payment of royalties, as if such operations were on or such production wefeifrom -r sy b completion were on the land covered by this lease, whether or not the well or wells be located on th remises covered by this lease. In lieu of the royalties elsewhere herein specified, Lessor shall receive from a uni .o fr ned, only such portion of the royalty stipulated herein as the amount of his acreage placed in the unit or his royalty interest therein bears to the total icreage so pooled in the particular unit involved. Should ar.y unit as originally created hereunder con- tain less than the maximum number of acres hereinabove specified, then Lessee may at any time thereafter, whether before or after production is obtained on the unit, enlarge such unit by adding additional acreage thereto, but the enlarged unit shall in no event exceed the acreage content hereinabove specified. In the event an existing unit is so enlarged, Lessee shall execute and place of record a supplemental declaration of unitization identifying and describing the land added to the existing unit; provided, that if such supplemental declaration of unitization is not filed until after production is obtained on the unit as originally created, then and in such event the supplemental declaration of unitization shall not become effective until the first day of the calendar month next following the filing thereof. In the absence of production Lessee may terminate any unitized area by filing of record notice of termination. 7. Lessee also shall have the right to unitize, pool, or combine all or any part of the above described lands with other lands in the same general area by entering into a cooperative or unit plan of development or operation approved by any governmental authority and, from time to time, with like approval , to modify, change or terminate any such plan or agreement and, in such event, the terms, conditions, and provisions of this lease shall be deemed modified to conform to the terms, conditions, and provisions of such approved cooperative or unit plan of development or operation and, particularly, all drilling and development requirements of this lease, express or implied, shall be satisfied by compliance with the drilling and development requirements of such plan or agreement, and this lease shall not terminate or expire during the life of such plan or agreement. In the event that said above described lands or any part thereof, shall hereafter be operated under any such cooperative or unit plan of development or operation whereby the production therefrom Is allocated to different portions of the land covered by said plan, then the production allocated to any particular tract of land shall , for the purpose of computing the royalties to be -paid hereunder to Lessor, he regarded as having been produced from the particular tract of land to which it is al- located and not to any other tract of land and the royalty payments to be made hereunder to Lessor shall be based upon production only as so allocated. Lessor shall formally express Lessor's consent to any cooperative or unit plan of development or operation adopted by Lessee and approved by any governmental agency by executing the same upon request of Lessee. 8. Lessee shall have the right at any time without Lessor's consent to surrender all or any portion of the leased premises and be relieved of all obligation as to the acreage surrendered. Lessee snail have the right at any time during or after the expiration of this lease to remove all property and fixtures placed by Lessee on said land, including the right to draw and remove all casing. When required by Lessor, Lessee will bury all pipe lines below ordinary plow depth, and no well shall be drilled within two hundred (200) feet of any residence or barn now on said land without Lessor's consent. The Lessee agrees to promptly pay to the owner thereof any damages to crops, or improvements, caused by or resulting from any operations of Lessee. All disturbed portions of surface land are to be returned to original condition within time designated by Lessor. 9. The rights of either party hereunder may be assigned, in whole or in part, and the provisions hereof shall extend to the heirs, successors and assigns of the parties hereto, but no change or division in ownership of the land, rentals, or royalties, however accomplished, shall operate to enlarge the obligations or diminish the rights of Lessee. No change in the ownership of the land or any interest therein, shall be binding on Lessee until Lessee shall be furnished with a certified copy of all recorded instruments, all court proceedings and all other necessary evidence of any transfer, inheritance, or sale of said rights. In event of the assignment of this lease as to a segregated portion of said land, the rentals payable hereunder shall be apportionable among the several leasehold owners ratably according to the surface area of each, and default in rental payment by one shall not affect the rights of other lease- hold owners hereunder. In case Lessee assigns this lease, in whole or in part, Lessee shall be relieved of all obli- gations with respect to the assigned portion or portions arising subsequent to the date of assignment. • 10. All express or implied covenants of this lease shall be subject to all Federal and State Laws, Executive Orders, Rules or Regulations, and this lease shall not be terminated, in whole or in part, nor Lessee held liable in damages, for failure to comply therewith, if compliance is prevented by, or if such failure is the result of, any such Law, Order, Rule or Regulation, or if prevented by an act of God, of the public enemy, labor disputes, inability to obtain material, failure of transportation, or other cause beyond the control of Lessee. If during the term of this lease, oil or gas or other hydrocarbons is discovered upon the leased premises, but Lessee is prevented from producing the same by reason of any of the causes set out in this Section, this lease shall nevertheless be considered as producing and shall continue in full force and effect until Lessee is permitted to cro- duce the oil , gas and other hydrocarbons, and as long thereafter as such production continues in paying quantities or drilling or reworking operations are continued as elsewhere herein provided. 11. Lessor does not warrant title to said real estate or to the mineral interests in said real estate, however, it is agreed that if Lessor owns less than 100% of the minerals, then, and in that event, the royalties and rentals to be paid Lessor shall be reduced proportionately. 12. Not withstanding in a provision of this lease to the contrary, no operations shall be conducted on the above described land without the written consent of the Lessor. 13. Upon the termination of this lease in whole or in part by election or by failure to make payments as afore- said, Lessee or its assigns shall within thirty (30) days release by written instrument the land or portion thereof which said lease terminates, and said notice shall also be sent to Lessor giving the book and page number of said lease. It is expressly understood that this lease is subject to and controlled by any law of the 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. B 1049 REC 01988680 11/15/84 15 : 21 $0. 00 4/004 F 1423 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 15. This agreement shall be binding on each of the above named parties who sign the same, regardless of whether it is signed by any of the other parties. IN WITNESS WHEREOF, this instrument is executed on the date first above written. BOARD OF COUNTY COMMISSIONERS ELD COUNTY, COLORADO • ATTEST: ` r- -r Z Weld County Clerb. a Rec ride and Clerk to the d del 1r , '"-a � LESSEE: _,aCill l—_cosy r'etruieum fee., STATE OF'AD RAM".11)(I11 COUNTY OF W -- • 1' L\ The "frrregoing itIstrihiefft was acknowledged before me this 1-;:t.i day of 0V 1HLC 1964,1 by C`tc Hanes M. ljawson My commission expires: 4/8/87 Witness my hand and official seal. 1.. ( t ,..`<.. llbtdry Public i Machii-Ross Nov 7 i984 Petroleum Co. Mailing Address: CRE P.O.Box 430, Fort Lupton, Colorado 80621 ' ovember ; c4 Fq 4. • eld County Commissioners P.U. ':3ox 758 7reeley, Colorado 80532 Gentlemen: Attached, in duplicate, please find an uil and Gas Lease covering a 1. 82 acre tract in ,:veld County which you approved on uctober 24th. Xlso enclosed is our check in the amount of . 182 .00 in payment for the same. Please return one executed copy to: Manes N. Dawson 5�1 17th Street - Suite 800 Denver, Colorado 80293 Yours very truly, 7Jn &4#,7." ' Manes E. Dawson inci: Oil and Gas Lease Check $182. 00 HY.D/bh 12600 Weld County Road 14 1/2. Fort Lupton, Colorado 80621 303-893-0583 .._ _. 4 1404::::::;I or: ---, .. ........ ,. . 0CT 2 2 1984 Machii-Ross Petroleum Co. v ONEEL€Y. Cow, Mailing Address: P.O. Box 430, Fort Lupton, Colorado 80621 Uctober 18, 1984 County Commissioners, 'Weld County P.O. iox 758 Greeley, Colorado 80532 Gentlemen: Machii-';oss Petroleum Co. requests an uil and Gas .pease covering a small small parcel of land in 'Meld County, described uy Metes and . ounds but also described as follows: Township 5 North, "2ange 37 West Section 29: East 30 feet of the SEI- as recorded in Nook 112, Page 214 of the records of Weld connnty, Colorado M.achii-joss Petroleum Co. , either Dy purchase or :by faruuu, owns all interest in adjoining leases and requests that the bidding procedure be waived and a lease granted. uur offer to lease is 4100.00 per acre bonus, 18 percent royalty and a three year term. Your favorable consideration of our request will be appreciated. Please advise me as to when the Commission will hear this request. Hanes N. Dawson 621 17th Street - Suite 800 Denver, Colorado 80293 Phone 298-1121 yours ver ly, A... , J, 7=1. Dawson _iNN D/bh 12600 Weld County Road 14 1/2. Fort Lupton, Colorado 80621 303-893-0583 WELD COUNTY COLORADO OIL AND CAS LEASE THIS AGREEMENT made this24thiay of October, 19 8,4betwe respective interests,en Weld County, ,nColoradBoardo. political subdivision Commis- sioners,theState nt Colorado, by the Board of County Commissioners, for Weld County Centennial Center, 915 10th Street, Greeley, Colorado 80631, Lessor (whether one nr more), and Lessee, WITNESSETH: Nachii—ROSS petroleum Co. 1, lessor in consideration of One hundred eighty two and00/100 Dollars hereby 20 ), in hand paid, of the royalties herein provided, and of the agreement of Lessee herein contained, grants, es and cin tol ilandsothershydrocarbons. laying pipeose of vlines,tbuildingloring,tanks, power stations, rlines9andfor other producing gas save, take care of, treat,- transport and own said products, and housing its employees, structures thereon ll ltoi produce,l (subject [n all applicable Weld County Zoning Regulations). the following tract of land with any reversionary rights therein beino situated in the County of Weld. State of Colorado, and described as follows: Township 5 North, !range 6 / 'Jest 'oth 1=.h. Section 29: ;eginning at the L'E Corner of Si2.-a running thence westwardly and along the northerly line of said SE4 30 feet, thence southerly and parallel with the easterly line of said SEd4 to the southerly line thereof . Thence easterly and along said southerly line 30 feet to the SE corner of said SE4i of Section 29, thence northwardly and along the easterly line of said SE'-ii to the point of beginning. folat seal led "primary term") and as long inerea,Ler as oil , gas or other hydrocarbons, is produced tram said Tana nereunder, or drilling nr reworking operations are conducted thereon. 18A F 3, The royalties to be paid by Lessee are: (a) on oil , ere e'7 t'-of that produced and saved from said land, the same to be delivered at the wells, or to the credit of Lessor into the pipe line to tto which chtthei wells semayobepconnected; Lessee may from time to time purchase any royalty oil in its possession,sn paying yingi theemd gas or other hydrocarbon sub- stance,the field where produced on the date of purchase; (b) on gas, 9 produced from said land and sold or used off the premises or in the manufacture dof gaso of linegor othe other s products 80 therefrom, the market value at the well of ire e'g"t" of the gas so sold or used, p wells the royalty shall be — eighth of the amount realized from such uchls wo od and water from said land, on sulfur the royalty shall ebeeffifty tyterl cents (504) per long ton. Lessee shall have free use of oil , g from Lessor's wells, for all operations hereunder, and the royalty on oil and gas shall be computed after deducting_an ties is shutso n, this well continue in of effectfor a as n period,of oneyear from o theeted on date suchewellye describedis shut land Lesseedors any assignee may thereafter, in the manner provided herein for the payment or tender of delay rentals, pay or tender to Lessor as royalty, on or before one year from the date such well is shut in, the sum of $100.00 per well , and, if ffec for a andh upaymet or tender is made, tis leasepon like payments or tendersh annually,s made on or beforehall cotiue ine each tanniversary hof the er i shut-in od of n date ee of such r. In l well,ia this lease shall continue in effect for successive periods of twelve (12) months each. 4. If operations for drilling are not commenced on said land as hereinafter provided, on or before one year from this date, the lease shall then terminate as to both parties, unless on or before such anniversary date Lessee shall ntals nay or to said s land s or the ll rentals n either as the by depository oneyanc orrrby thel edeath or y payable nncapacity of r Lessor,rless of the sum of one Dollar(s) ($ 1.00) per net mineral acre. (herein called rental), which shall cover the privilege of deferring commencement of operations for drilling for a period of twelve (12) months. In like manner and upon like payments or tenders annually the commencement of operations for drilling may be further deferred for successive periods of twelve (12) months each during the primary term. The payment or tender of rental here or in referred to may be made in currency, or check at the option of the Lessee; and the depositing of such shall currency, pay- check in any post office, properly addressed to the Lessor, on or before the rental paying date,ed.he allocated as mererental for ng to its ms all he down a period. Lessee may at any time execute and deliver cash payment i to Lessor or r place d of h records a release or releases covering any portion or portions of the above described premises and thereby surrender this s the n rentals payablerherreunderroshalls be reduced be l In thede proportf all ion that the m acr the reage covered hereby e d isereduced, and tbyr said release or releases. 5. Should any well drilled on the above described land during the primary term before production is obtained be m and r ceas , in r ifd perationsrforodriillinguaniaddi i tionalwellne darennot urig hcommenced ore primary r operations efor ereworkingtann old dwell care enot vpur- sued on said land on or before the first rental paying date next succeeding the cessation of production or drilling , or reworking on said well or wells, then this lease 'shall terminate unless Lessee, on or before said date, shall re- sume the payment of rentals. Upon resumption of the payment of rental, Section 4 governing the payment of rentals, shall continue in force just as though there had been no inteas, erruuptionhin the nrtherrentrental payments. Ifsdur during ngothe last lyear of the primary term and prior to the discovery l ogas oil, or other hydrocarbons before or during the last year of the pry arye ermrthe, rr ucf ioner eieofvsho dd cel, g primary term the production thereof should cease during the last year of said term from any cause, no rental payment or operations are necessary in order to keep the lease in force during the remainder of the primary term. If, at the lexpirtion of the primay term,eases neverthelessshallr continueL insforce asnlongi as such a drilling or r reworking illing a n operations continue, or ifew well or reworkin an , this esee is after the ss ifpdrilling or the reworking primary operations prare oduction commenced this within sixty (60)cease, daysthis after lease such v cessation of shall production; if force pro- duction is restored or additional production is discovered a result thofl any nynsuche as longorerework reworking soperations, conducted without cessation of more than sixty (60) days, this lease 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 to be d into a i well unit s orrunitse not exceedable ing forty (40)(40)er to acres, plus ly an acreaglope tolend rranceeofaid ten p per tses, such cent (10%)pofl forty (40) acres, for oil, and not exceeding six hundred and forty that( 0))aacres, plus an man acreage tto tolerance ncefofm ten en any spacing or(10%)well of six hundred and forty be r acres,d for gas, bineacreage pattern byet thisyleasei,eorranydportionethereof, authorities jurisdiction. mayol or more strata, and units so formed need not conformoil units need not conform as to area i size area with the unit units into tw gas units. which the tlease eh is pooled ppooled or combined as to any other stratum or strata, and one or more instances shall not exhaust the rights of the Lessee hereunder to pool this lease or portions thereof into ether. units, Lessee shall execute in writing and place of record an instrument or instruments identifying and describ- ing the pooled acreage. The entire acreage so pooled into a unit shall be treated for all purposes, except the payment of royalties, as if it were included in this lease, and drilling or reworking operations thereon or production of oil or gas therefrom, or the completion thereon of a well as a shut-In gas well, shall be :'nsi&erect for all purposes, except the payment of royalties, as if such operations were on or such production wee7from,.r sL-h completion were on the land covered by this lease, whether or not the well or wells be located on th Irpmises covered by this lease. In lieu of the royalties elsewhere herein specified, Lessor shall receive from a uni-. so fri led, only such portion of the royalty stipulated herein as the amount of his acreage placed in the unit or his royalty interest therein bears to the total acreage so pooled in the particular unit involved. Should ai.y unit as originally created hereunder con- tain less than the maximum number of acres hereinabove specified, then Lessee may at any time thereafter, whether before or after production is obtained on the unit, enlarge such unit by adding additional acreage thereto, but the enlarged unit shall in no event exceed the acreage content hereinabove specified. of Inn thezevent h event aneexisting unit is so enlarged, Lessee shall execute and place of record a supplemental declaration describing the land added to the existing unit; provided, that if such supplemental declaration of unitization is not filed until after production is obtained on the unit as originally created, then and in such event the supplemental declaration of unitization shall not become effective until the first day of the calendar month next following the filing thereof. In the absence of production Lessee may terminate any unitized area by filing of record notice of termination. 7. Lessee also shall have the right to unitize, pool, or combine all or any part of the above described lands with other lands in the same general area by entering into a cooperative or unit plan of development or operation approved by any governmental authority and, from time to time,withs like kedapproval, provisions d modify, lchangehorle or terminated nate any such plan or agreement and, in such event, the terms, modified to conform to the terms, conditions, and provisions of such approved cooperative or unit opnp implied, plan fdevelopmentshall express or operation and, particularly, all drilling and development requirements of this lease, pruni be satisfied by compliance with the drilling and development requirements of such plan or agreement, and this lease shall not terminate or expire during the life of such plan or agreement. In the event that said above described lands or any part thereof, shall hereafter be operated under any such cooperative or unit plan of development or operation whereby the production therefrom is allocated to different portions of the land covered by said plan, then the production allocated to any particular tract of land shall, for the purpose of computing the royalties to be paid hereunder to Lessor, be regarded as having been produced from the particular tract of land to which it is al- located and not to any other tract of land and the royalty payments to be made hereunder to Lessor shall be based upon production only as so allocated. Lessor shall formally express Lessor's consent to any cooperative or unit plan of development or operation adopted by Lessee and approved by any governmental agency by executing the same upon request of Lessee. 8. Lessee shall have the right at any time without Lessor's consent to surrender all or any portion of the leased premises and be relieved of all obligation as to the acreage surrendered. Lessee shall have the right at any time during or after the expiration of this lease to remove all property and fixtures placed by Lessee on said land, including the right to draw and remove all casing. When required by Lessor, Lessee will bury all pipe lines below ordinary plow depth, and no well shall be drilled within two hundred (200) feet of any residence or barn now on said land without Lessor's consent. The Lessee agrees to promptly pay to the owner thereof any damages to crops, or improvements, caused by or resulting from any operations of Lessee. All disturbed portions of surface land are _to be returned to original condition within time designated by Lessor. l 9. The rights of either party hereunder may be assigned, in whole or in napart, andviheoprovisions onsshereof of shalland, extend to the heirs, successors and assigns of the parties hereto, 9 rentals, or royalties, however accomplished, shall operate to enlarge the obligations or diminish the rights of Lessee. No change in the ownership of the land or any interest therein, shall be binding on Lessee until Lessee shall be furnished with a certified copy of all recorded instruments, all court proceedings and all other necessary evidence of any transfer, inheritance, or sale of said rights. In event of the assignment of this lease as to a segregated portion of said land, the rentals payable hereunder shall be apportionable among the several leasehold owners ratably according to the surface area of each, and default in rental payment by one shall not affect t the rights of rrightsd of therlease- hold owners hereunder. In case Lessee assigns this lease, in whole or in part, Lenote obli- gations with respect to the assigned portion or portions arising subsequent to the date of assignment. 10. All express or implied covenants of this lease shall be subject to all Federal and State Laws, Executive • Orders, Rules or Regulations, and this lease shall not be terminated, in whole or in part, nor Lessee held liable in damages, for failure to comply therewith, if compliance is prevented by, or if such failure is the result of, any such Law, Order, Rule or Regulation, or if prevented by an act of God, of the public enemy, labor disputes, inability to obtain material, failure of transportation, or other cause beyond the control of Lessee. If during the term of this lease, oil or gas or other hydrocarbons is discovered upon the leased premises, but Lessee is prevented from producing the same by reason of any of the causes set out in this Section, this lease shall nevertheless be considered as producing and shall continue in full force and effect until Lessee is permitted to pro- duce the oil. gas and other hydrocarbons. and as long thereafter as such production continues in paying quantities or drilling or reworking operations are continued as elsewhere' herein provided. 11. Lessor does not warrant title to said real estate or to the mineral interests in said real estate, however, it is agreed that if Lessor owns less than 100% of the minerals, then, and in that event, the royalties and rentals to be paid Lessor shall be reduced proportionately. 12. Not withstanding in a provision of this lease to the contrary, no operations shall be conducted on the above described land without the written consent of the Lessor. 13. Upon the termination of this lease in whole or in part by election or by failure to make payments as afore- said, Lessee or its assigns shall within thirty (30) days release by written instrument the land or portion thereof which said lease terminates, and said notice shall also be sent to Lessor giving the book and page number of said lease. It is expressly understood that this lease is subject to and controlled by any law of the en and of Colorado now in effect restricting or limiting the powers of counties or boards of county commissioners, 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 COMMISSIONERS ELD , COLORADO ATTEST"""/� aivinA3-4 Weld County Clerk and Recorder and Clerk to the Board By: LESSEE: i acixii-i oss Petroleum i2o. 7aliM)1/7/ /14(1:1SA.. STATE OF COLORADO ) SS. COUNTY OF WELD ) The foregoing instrument was acknowledged before me this day of 19 , by My commission expires: Witness my hand and official seal. Notary Public E Hello