HomeMy WebLinkAbout840011.tiff AK1954895 RESOLUTION
RE: APPROVE REQUEST OF DISCOVERY OIL, LTD. TO WAIVE BIDDING
PROCEDURE CONCERNING AN 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
Ln 0 o affairs of Weld County, Colorado, and
•
WHEREAS, Discovery Oil, Ltd. has requested that the bidding
a procedure be waived concerning an Oil and Gas lease on the fol-
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o �
o x lowing described mineral acres:
o
Range 67 West, Township 5 North
o Section 33: Pt. NWaNW4 as described in Quit-
() claim Deed dated February 1 , 1941
-4. c4 and recorded February 7 , 1941 in
.• w Book 1074 , Page 407 Records of
'- Weld County, Colorado
u Containing . 75 Acres , more or less .
co H WHEREAS, after review, the Board of County Commissioners
N
0 CO found that Discovery Oil, Ltd. did show good cause for waiving
Ls, w the bidding procedure on said Oil and Gas lease, and
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In z WHEREAS, said lease is to be for a period of three years
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with a paid up lease of SEVENTY-SIX and 50/100 DOLLARS ($76 .50)
za copy of said lease being attached hereto and incorporated
ti 1/4O
herein by reference, and
N WHEREAS, Weld County is desirous of accepting said offer
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from Discovery Oil, Ltd. to lease the above described mineral
acres.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Com-
missioners of Weld County, Colorado that the request of Dis-
covery Oil, Ltd. 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 Dis-
covern Oil, Ltd. , 2049 Century Park East, Suite 890, Los Angeles,
California 90067 , to lease the above described mineral acres for
a period of three (3) years with a paid up lease in the amount
' 1 840011
in
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RE: WAIVE BID PROCEDURE AND ACCEPT LEASE - DISCOVERY OIL, LTD.
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O w of Seventy-Six and 50/100 Dollars ($76 . 50) be, and hereby is ,
p accepted.
•cra The above and foregoing Resolution was, on motion duly made
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0 and seconded, adopted by the following vote on the 25th day of
d a January, A.D. , 1984 .
co O
Z n 4f - BOARD OF COUNTY COMMISSIONERS
ATTEST:
i_ .
r t `j` ✓n 1 WELD COUNTY, COLORADO
N E
o cn
d
„-, ] Weld County Clerk and Recorder
CI` W and Clerk to the Board Norman Carlson, Chairman
ao G
Y e GM e �/l c 1 �P /C/(i� EXCUSED
/Deputy County Cl k Jacqueline Johnson, Pro-Tem
xrn APPROVE&$ TO FORM: LIZ �jp'
O, J
O O Gene R. Brantner
ri (NI
Gin,"(C)
CQ
County Attorney Chuck Carlson
� ,;/ ,
y n T. Marti
013084
WELD COUNTY. COLORADO OIL AND CAS LEASE
THIS AGREEMENT made this 7.8 day of January, 1984 between Weld County, Colorado, a political subdivision of
the State of Colorado, by the Board of County Commissioners, for its respective interests, C/0 Board of County Conmis-
sioners, Weld County Centennial Center, 915 10th Street, Greeley, Colorado 80631, Lessor (whether one or more), and
Discovery Oil, Ltd. Lessee, WITNESSETH:
1. lessor in consideration of Seventy—Six and 50/100 Dollars ($76 . 50 )•
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:
Range 67 West, Township 5 North
Section 33: PT. NWeI 4 as described in Quitclaim Deed dated February
1, 1941 and recorded February 7, 1941 in Book 1074, Page 407
Records of Weld County, Colorado
and containing .75 acres, more or less ( '75 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. 4N
3. The royalties to be paid by Lessee are: (a) on oil, 18% 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 date 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
O/therefrom, the market value at the well of 18% of the gas so sold or used, provided that on gas sold at the
.wells the royalty shall be one-eighth of the amount realized from such sale; on sulfur the royalty shall be fifty
cents (504) 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
O 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 $100.00 per well, and, if
o U such payment or tender is made, this lease shall continue in effect for a further period of one year. In like manner
and upon like payments or tenders annually, made on or before each anniversary of the shut-in date of such well, this
M O lease shall continue in effect for successive periods of twelve (12) months each.
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4. If operations for drilling are not commenced on said land as hereinafter provided, on or before one year frail
Il• this date, the lease shall then terminate as to both parties, unless on or before such anniversary date Lessee shall
0ral nay or tender to Lessor, and shall continue as the depository for all rentals payable hereunder regardless of changes
in ownership of said land or the rentals either by conveyance or by the death or incapacity of Lessor, the sum of
o (24 Paul up Dollar(s) ($ ) per net mineral acre, (herein called rental), which shall
u) W 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
ofor successive periods of twelve (12) months each during the primary term. The payment or tender of rental herein
U referred to may be made in currency, or check at the option of the Lessee; and the depositing of such currency, or
W check in any post office, properly addressed to the Lessor, on or before the rental paying date, shall be deemed Pay-
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ment as herein provided. The down cash payment is consideration for the lease according to its terms and shall not
.. Qs he allocated as mere rental for a period. Lessee may at any time execute and deliver to Lessor or place of record
u, 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 rentals payable hereunder shall be reduced in the proportion that the acreage covered hereby is reduced by said
cr �l release or releases.
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5. Should any well drilled on the above described land during the primary term before production is obtained be
oH a dry hole, or should production be obtained during the primary term and thereafter cease, then and in either event,
W if operations for drilling an additional well are not commenced or operations for reworking an old well are not our-
" F' sued on said land on or before the first rental paying date next succeeding the cessation of production or drilling
o • 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,
u� D shall continue in force just as though there ha'd been no interruption in the rental payments. If during the last year
Q' W of the primary term and prior to the discovery of oil, gas, or other hydrocarbons on said land Lessee should drill a
c 1X dry hole thereon, or if after discovery of oil, gas or other hydrocarbons before or during the last year of the
'n z primary term the production thereof should cease during the last year of said term from any cause, no rental payment
CA Z or operations are necessary in order to keep the lease in force during the remainder of the primary term. If, at the
r" expiration of the primary term, Lessee is conducting operations for drilling a new well or reworking an old well, this
• lease neverthelessshall continue in force as long as such drilling or reworking operations continue, or if, after the
U p: 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-
z duction is restored or additional production is discovered as a result of any such drilling or reworking operations,
m co conducted without cessation of more than sixty (60) days, this lease shall continue as long thereafter as oil, gas,
a other hydrocarbons or other mineral is produced and as long as additional drilling or reworking operations are had
0 0 without cessation of such drilling or reworking operations for more than sixty (60) consecutive days.
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w 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
one or more instances shall not exhaust the rights of the Lessee hereunder to pool this lease or portions thereof into
other units, Lessee shall execute in writing and place of record an instrument or instruments identifying and describ-
ing the pooled acreage. The entire acreage so pooled into a unit shall be treated for all purposes, except the payment
of royalties, as if it were included in this lease, and drilling or reworking operations thereon or production of oil
or gas therefrom, or the completion thereon of a well as a shut-in gas well, shall be considered for all purposes,
except the payment of royalties, as if such operations were on or such production were from or such completion were
on the land covered by 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
the royalty stipulated herein as the amount of his acreage placed in the unit or his royalty interest therein bears
In 0 to the total acreage so pooled in the particular unit involved. Should any unit as originally created hereunder con-
o U 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
' 0 enlarged unit shall in no event exceed the acreage content hereinabove specified. In the event an existing unit is
U so enlarged, Lessee shall execute and place of record a supplemental declaration of unitization identifying and
Ca 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
o W declaration of unitization shall not become effective until the first day of the calendar month next following the
o 3 filing thereof. In the absence of production Lessee may terminate any unitized area by filing of record notice of
o a termination.
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a7. 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
u 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
a' a modified to conform to the terms, conditions, and provisions of such approved cooperative or unit plan of development
rn 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
a 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
d,
co U 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-
-I Z located and not to any other tract of land and the royalty payments to be made hereunder to Lessor shall be based
H upon production only as so allocated. Lessor shall formally express Lessor's consent to any cooperative or unit
N E plan of development or operation adopted by Lessee and approved by any governmental agency by executing the same
o cn upon request of Lessee.
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8. Lessee shall have the right at any time without Lessor's consent to surrender all or any portion of the
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a W leased premises and be relieved of all obligation as to the acreage surrendered. Lessee shall have the right at
oo p-4 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
• gon said land without Lessor's consent. The Lessee agrees to promptly pay to the owner thereof any damages to crops,
0 or improvements, caused by or resulting from any operations of Lessee. All disturbed portions of surface land are
U a to be returned to original condition within time designated by Lessor.
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a 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,
O1 °1 rentals, or royalties, however accomplished, shall operate to enlarge the obligations or diminish the rights of Lessee.
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00 No change in the ownership of the land or any interest therein, shall be binding on Lessee until Lessee shall be
(N 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
• a' portion of said land, the rentals payable hereunder shall be apportionable among the several leasehold owners ratably
according to the surface area of each, and default in rental payment by one shall not affect the rights of other lease-
hold owners hereunder. In case Lessee assigns this lease, in whole or in part, Lessee shall be relieved of all obli-
gations with respect to the assigned portion or portions arising subsequent to the date of assignment.
10. All express or implied covenants of this lease shall be subject to all Federal and State Laws, Executive
Orders, Rules or Regulations, and this lease shall not be terminated, in whole or in part, nor Lessee held liable in
damages, for failure to comply therewith, if compliance is prevented by, or if such failure is the result of, any
such Law, Order, Rule or Regulation, or if prevented by an act of God, of the public enemy, labor disputes, inability
to obtain material, failure of transportation, or other cause beyond the control of Lessee.
If during the term of this lease, oil or gas or other hydrocarbons is discovered upon the leased premises, but
Lessee is prevented from producing the same by reason of any of the causes set out in this Section, this lease shall
nevertheless be considered as producing and shall continue in full force and effect until Lessee is permitted to pro-
duce the oil, gas and other hydrocarbons, and as long thereafter as such production continues in paying quantities
or drilling or reworking operations are continued as elsewhere herein provided.
11. Lessor does not warrant title to said real estate or to the mineral interests in said real estate, however,
it is agreed that if Lessor owns less than 100% of the minerals, then, and in that event, the royalties and rentals to
be paid Lessor shall be reduced proportionately.
12. Not withstanding in a provision of this lease to the contrary, no operations shall be conducted on the above
described land without the written consent of the Lessor.
13. Upon the termination of this lease in whole or in part by election or by failure to make payments as afore-
said, Lessee or its assigns shall within thirty (30) days release by written instrument the land or portion thereof
which said lease terminates, and said notice shall also be sent to Lessor giving the book and page number of said
lease. It is expressly understood that this lease is subject to and controlled by any law of the 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 COMMISSIONERS
WELD COUNTY, COLORADO
•
�a._r... W. 'tlu►�... _ -u'
ATTEST: � '��, WVVV�� �Wow.s:✓N
Weld County Cler'A and Recorder
and Clerk to the Board
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n
0 LESSEE:
) a fig 0. Disc very Oil, Ltd.
I-� N: �(2_ ,'
;9,�'E ,oti, Attest: , 1 By �/ pC . ✓J
Lrl o • ti Assistant Secretary Vice President
o U STATE OF•CM.ORADal.
O - Al ) SS.
^ :OUNTY OF WELD ')
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The foregoing instrument was acknowledged before me this day of 19 , by
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o fk My commission expires: Witness my hand and official seal.
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v. a Notary Public
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o H STATE OF CALIFORNIA
N E- SS.
° U) COUNTY OF LOS ANGELES
14
o w On this 18th day of January , in the year 1984 ,
w before me a notary public, personally appeared Robert L. Beckstrom
rn z personally known to me (or proved to me on the basis of satisfactory
rl a' evidence) to be the person who executed the within instrument as
Vice President on behalf of the corporation therein named and acknow-
w ledged to me that the corporation executed it. a
oA 0
f CD a 1-O---B Ak
ri N Notary Public
OFFICIAL SEAL
m w CAROL L. STODDARD -
ss.
NOTARY PUB I iRFORNIA
11' INS, ES OUNTY
'•'_N My Commission Expires Juno 7, 1984%
�.:�rt'<'r,2,�.r'cc.2�'r.;✓.-�y.�%c�=r.'e'.ce'2.c�"e
DISCOVERY OIL , LTD .
2049 Century Park East • Suite 890 • Los Angeles. California 90067
(21 3] 277-7692 • Telex 181167
ROBERT L.aECKSTRCM
VICE PRESIDENT LAND
January 19, 1984
Ms. Jeannie Sears
Weld County Commissioner
Greeley, Colorado 80632
Re: Oil & Gas Lease
NW/4 NW/4 Section 33 , T5N, R67W
Weld County, Colorado
Dear Ms. Sears:
Per our telephone conversation, enclosed are 2 copies
of the proposed oil and gas lease executed on behalf of
Discovery Oil, Ltd. Please note we have added a reference
to the Deed in the description portion of the lease and
have changed the royalty from 1/8 to 18% .
We also enclose our check in the amount of $76 . 50
representing the bonus of $75 and $1. 50 ($ . 75 per year)
for the second and third years rental. If the lease appears
in order, please have it executed by the Lessor and return
one copy to this office.
Very truly yours,
9
1 L'
RLB:cs
Encl.
DISCOVERY OIL , LTD .
2049 Century Park East • Suite 990 • Los Angeles. Californja 90067 �.
(213) 277-7692 • Telex 181187 �r
JACK �' )OBIN
ROBERT L.BECKSTROM
VICE PRESIOENT-LAND
January 13, 1984
Clerk To The Board
Weld County Commissioners
Post Office Box 758
Greeley, Colorado 80632
Attn: Jeanie Sears Re: Oil & Gas Lease
Section 33 , T5N, R67W
Weld Co. , Colorado
Gentlemen:
Please refer to my letter of December 19 , 1983 re-
questing an oil and gas lease on certain mineral rights
apparently owned by Weld County in the subject section,
and our telephone conversation of January 13, 1983 .
Discovery Oil, Ltd. holds an oil and gas lease from
Paul Nelson, et ux which covers the NW/4 NW/4 of Section
33 and other lands. We request the County of Weld exe-
cute an oil and gas lease on its approved form covering
the . 75± acre strip for a term of 3 years, 1/8 landowner ' s
royalty for a consideration of $100 per acre and $1 per
acre per year deferred drilling rental.
Since our offices are in California and we have no
local office in Colorado we would appreciate handling
this matter by mail unless it is absolutely necessary
that a representative of this company be present at the
Commissioners meeting.
Very truly yours,
RLB:cs
i
r .�.
DISCOVERY OIL , LTD .
2049 Century Park East • Suite B90 • Los Angeles. California 90067
(2131277 7692 • Telex 18187 t.
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q t�
ROBERT L.BECKSTROM { . I
viDE rResioE, LAND December 19 , 1983
Clerk To The Board
Weld County Commissioners
Post Office Box 758
Greeley, Colorado 80632
Re: Section 33 , T5N, R67W
Weld County, Colorado
Gentlemen:
This Company holds Oil and Gas leases covering the
N/2 of Section 33 , T5N, R67W and other lands in the im-
mediate area.
Enclosed is a copy of a Quitclaim Deed dated Febru-
ary 1, 1941 recorded in Book 1074 page 407 records of Weld
County, which covers a 30 ft. by 1090 ft. strip of the west
side of the NW/4 NW/4 of Section 33 which in the opinion
of our examining attorney vests fee title in this . 75±
acres in Weld County.
We are planning to drill a test well on the NW/4 of
Section 33 in the near future and respectfully request an
Oil and Gas Lease from Weld County on this 30 ft. strip.
Please advise if the County will waive any required com-
pletion bid and enter into a negotiated lease on a form
satisfactory to Weld County.
Very truly yours ,
46_1/4, �. /4X/Ju-Vz.45 ,,
RLB:cs
Encl .
.L- -- 074 PAff407 .41-43-Recorded reg� a� odod•—H.
4, 365163 ib[ns SPf)MF.s Rader. -�.-
Receptionwe
•UIT CLAIM DEED
0111.13 laPPD. Made this y'iret day of February
in the year of our Lord one thousand nine hundred and forty-are
between Robert Nelson
of the County of Weld
and the State of Colorado, of the
find part, and WELD COUNT!, COLORADO, a musk—municipal corporation
Y
.yr he State of Colorado, of the
of the f '#
Of the first part, for and in consideration of
second part; One
Dollar and That the said and valuableconsiderations
the sum of One Dollar other good Dollar,
less than One Ntmdred the re-
ceipt band paid by the said party of the second part, it,.
to the hard party of the best dart has remised, released, sold, conveyed and
QUIT whereof b hereby by e and acknowledged,
presents doe release, sell, convey and QUIT CLAIM
CLAIMED,pat and the these ,ty 'fan(
J �°"'an assigns forever,all the right,title,interest.
unto the said part y whichof said � i of the first part has in and to the following described
<' l and demand lyingthe being ei party r:
Y real estate situate, lying and is the County of WELD and State of Colorado, to-wit: rn `
A strip of land 50 feet in width along the Nest aide of the Northwest Quarter
—, of the Northwest Quartet ( k) of Section Thirty—three (55), Township
4.
Sixty—seven (87)Nest of the eth P.N.; beginning
� ' five (oint 53 feet) North of Sous y-e _ said
at a,gip` thence South along Nest line of of said Section for west corner adistance ofiapproxla+ately
., :; 1090 feet; thence East DO feet; thence North and parallel to said section
11
line for a distance of approximately 1090 feet; thence Nest 50 feet to the
point of beginning.
s
1 4,', -
r ;Y. To Have and To Hold the name, together with all and singular the appurtenances and priv-
and aD the estate, right, title, In-
' t uses
thereunto whatsoever,
, ht an said p thereunto efir taiai part, to the only
trrest and claim whatsoever, of the party of the first either in law
forever.
"4° use,benefit and behead of the said party of the second part,its `As
proper IN WITNESS WHEREOF,The said pafl of the first part has hereunto set his hand
and seal the day and yeas first above written. Ji�� _ ��Seal)
6 .p
Signed in the Presence of ( � `
�. --(Seal)
Y
' ems'' rs.
,:.. • t h, The foregoing Instrmrrmt was-acknowledged before me ,.
.; ht Y - ` , '• . •L• ih>� /K Of ,A.D. 1941 ,
v 4 € li r r tble
°yr3 •.. ,(�, _' k `fit ,-"e: ,
a) •rte Y ` +_ s�, '' ' �y�.� . a04
4 '? ,4 kr �, fare.
t
r g ,t "t'e : ,1 Hirai"Sid tad Omeld Sad.
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