HomeMy WebLinkAbout881212.tiff RESOLUTION
RE: DENY REQUEST OF JOHN HOWARD, OF HOWARD AND ASSOCIATES, LTD. ,
FOR REFUND CONCERNING OIL AND GAS LEASE
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, the Board did, by Resolution, dated November 9 ,
1988 , accept the high bid of Howard and Associates, Ltd. , for the
lease of certain mineral acres located in Section 3 , Township 7
North, Range 58 West of the 6th P.M. , Weld County, Colorado
WHEREAS, said lease stated that Weld County owned 200 net
mineral acres in said section, and
WHEREAS, John Howard, of Howard and Associates, Ltd. , has
informed the Board that those parcels described in said lease
actually contain 130 .2 acres, and has requested a refund, and
WHEREAS, after consideration, the Board deems it advisable
that a new lease be offered showing the correct amount of acres,
and that there be no return of bonus payment since no portion of
the title to the interest leased, including the acreage, is
warranted.
NOW, THEREFORE, BE IT RESOLVED by the Board of County
Commissioners of Weld County, Colorado, that a new lease be
offered to John Howard, of Howard and Associates, Ltd. , showing
the correct total mineral acres for those parcels contained in the
aforementioned lease.
BE IT FURTHER RESOLVED by the Board that there be no return
of bonus payment since the total mineral acreage is not warranted.
881212
E -)s ! r�wQs1c
Page 2
RE: DENY REFUND REQUEST - HOWARD AND ASSOCIATES, LTD.
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 19th day of
December, A.D. , 1988 .
BOARD OF COUNTY COMMISSIONERS
ATTEST: 4ata 2f WF�L COUNTY, COLORADO
Weld County erk and Recorder 1^,rj
and Clerk to the Board uene N. B n ne , Chairman
C.N.� o
BY: -Tern
DeputountWy erk \ _ '\ _
APPROVED A TO FORM: a.que �'ne, • 4•n
j <�_ > G. •one acy
v U J/�/ r
County Attorney t ,4,.. , "`"'
Frank amaguchi
881212
AR2167200
RELEASE OF RIGHTS
In consideration of good and valuable consideration, receipt of which is acknowledged, the undersigned John Howard, of Howard Dil ro
and Associates , Ltd. , releases, remises , and relinquishes to Weld o
County, Colorado, its successors and assigns , all his right, NI
title, and interest in and to that oil, gas, and mineral lease
dated November 9 , 1988 , executed by Weld County, Colorado, as t
lessor, to Howard and Associates , Ltd. , as lessee, and recorded at k n
Book 1215 , Reception #02161749 , in the office of the Weld County o
Clerk and Recorder, covering the following described land in the
N
County of Weld, State of Colorado: 2 OJ
It N
[1] O
Co
See Attached List [n
z
[no
H i'
H
H O
zrn
() o
rko
Executed at \ kU (9)-P-42,144,5 , , ' C 1988 . a)
za)
0
M
tt-La
W o
Au • or; e K._/' � o
/ r
O
Notary Acknowledgment
STATE OF COLORADO ( c o i—
COUNTY OF DENVER 0 ow
The foregoing instrument was acknowledged before me
°Qy C^...�/''Flatness 4th
myday
hand and January,
officialg by sealJohn R. Howard.
�+r NOIAR�" ZyYy _ommission expires February 09 , 1992•
? mt.p \Gro
Pao Gary C. V it ins
-; c 51 17th St.
OrtO'"° 881212
it,,,,,,,,,,,,,,,`` D ver, Colorado
AR217201 WELD COUNTY OIL AND GAS LEASE
o O Containing 130.2 acres, more or less:
oo Containing 130.2 net mineral acres, more or less
O
U
• THIS LEASE AGREEMENT, dated this 19th day of December, 1988, made and entered into by and between
o 41• WELD COUNTY, COLORADO, a political subdivision of the STATE OF COLORADO, acting by and through the BOARD
o $ OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD, for its respective interests, c/o BOARD OF COUNTY
o Cti COMMISSIONERS, WELD COUNTY CENTENNIAL CENTER, 915 10TH STREET, GREELEY, CO 80631, hereinafter called
Lessor, and:
a HOWARD AND ASSOCIATES, LTD.
o 518 17th STREET, SUITE 640
u7 a DENVER, COLORADO 80202
In 'a hereinafter called Lessee:
HI
HIx
a
WITNESSETH
rna
coo
1/4Oz WHEREAS, said Lessee has applied to Lessor, for an oil and gas lease covering the land herein
O H described, and has paid a filing fee in the amount of $10.00, plus a bonus consideration of SEVEN THOUSAND
W
c and NO/100 DOLLARS ($7,000.00), fixed by Lessor as an additional consideration for the granting of this
a lease, and Lessee agrees to pay an annual rental of $131.00, computed at the rate of $1.00, per mineral
• acre or fraction thereof per year.
o W
N W
N WHEREAS, all the requirements relative to said application have been duly complied with and said
z application has been approved and allowed by Lessor;
N
O
• THEREFORE, in consideration of the agreements herein, on the part of Lessee to be paid, kept and
Wa 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
d' own all oil and gas so produced and saved therefrom and not reserved as royalty by Lessor under the terms
Nri
N H of this lease, together with rights-of-way, easements, and servitudes for pipelines, telephone and
r4 O telegraph lines, tanks and fixtures for producing and caring for such product, and housing and boarding
PO r44 employees, and any and all right 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
SEE ATTACHED LIST 3 7N 58W
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 19th day of December, 1991, as primary term, and so long thereafter as
oil and gas, or either of them, is produced 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 reworking 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
881212
primary term or any extension thereof, or while this lease is in force by reason of such drilling or
00 reworking operations or other production.
c)
0
EXPLORATION - Lessor reserves the right to conduct exploration on the leased land provided such
NO
exploration does not interfere with rights granted herein.
O
0 W 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
v> W paragraph hereof, Lessee shall during such extended period pay to lessor an annual rental at double the rate
aabove specified for the land covered hereby. The rental in effect at the time production is established
Vshall not be increased due to the term of this lease being extended by such production. Rentals set at the
atime of established producticn 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.
is
ti
H x 2. ROYALTY - Lessee shall account for any and all substances produced on the leased land and Lessee
AG
W shall pay to Lessor as royalty, in addition to the rentals provided, but except for products used on the
coU leased land, unavoidably lost or flared on the leased land, with approval of Lessor, the following:
Loz
0H (a) On oil, 129:16 of the oil produced and saved from the leased land.
-. W
0U) At the option of Lessor, and with sixty (60) days' notice to Lessee, Lessor may take its
ti royalty oil in kind, in which event Lessee shall deliver such royalty oil to Lessor on the leased land,
o r..4 free of cost or deduction, into the pipelines or storage tanks designated by Lessor, but Lessee shall
rI''' not in such case be required to provide free tankage for any such oil for a longer period than one
2 month after the same is run into tanks. With sixty (60) days' notice to Lessee, Lessor may cease
ro rq taking oil royalty in kind. When paid in cash, the royalty shall be calculated upon the fair market
0 value of the oil at the well which shall not be deemed to be less than the price actually paid to
U a Lessee at the well by the purchaser thereof; and in no event shall the royalties be based upon a market
GL' value at the well less than the posted price in the field for such oil, or in the absence of a posted
,y it) price in the field fcr such oil, upon a market value at the well less than the prevailing price
'i received by other producers in the field for oil of like grade and gravity ry g ty at the time such oil is run
.-I o into pipelines or storage tanks.
W tw
(b) On gas, including casinghead gas or other gaseous substance, 12§% 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.
(Rev. 11/86) 881212
3. RECORDS - Lessee agrees to keep and to have in possession complete and accurate books and records
o O showing the production and disposition of any and all substances produced on the leased land and to permit
o Lessor, at all reasonable hours, to examine the same, or to furnish copies of same to Lessor upon request
aloe with urchaser's support documentation. Lessor will not be unreasonable with requests. All said
M o g p
U books and records shall be retained by Lessee and made available in Colorado to Lessor for a period of not
Q less than five years.
o
o 4. MEASUREMENTS - All production shall be accurately measured using standards established by the
o P4 American Gas Association (AGA) and/or the American Petroleum Institute (API) and all measuring devices shall
in-64
be tamperproof as nearly as possible. Oil royalties due within the terms of this lease shall be calculated
0 on actual and accurate measurements within API standards unless a different means of measurement, subject to
U Lessor's approval, is provided.
1/40
LO 5. PAYMENTS & REPORTS - All payments and reports due hereunder shall be made on or before the day
� such payments and reports are due. Nothing in this paragraph shall be construed to extend the expiration of
athe primary tern hereof.
co
co () Oil royalty payments and supporting documents shall be submitted prior to the last day of the
1/40 z month following each month's sale of production, and gas royalty payments and supporting documents shall be
Wsubmitted prior to the last day of the second month following each month's sale of production.
H
o a All payments shall be made by cash, check, certified check or money order. Payments having
14 restrictions, qualifications, or encumbrances of any kind whatsoever shall not be accepted by Lessor. A
o W penalty for a late payment shall be charges as set forth in the PENALTIES paragraph herein.
N G.
z 6. PENALTIES - A penalty shall be imposed for, but not limited to late payments, improper payments,
N ,r4 operational deficiencies, violation of any covenant of this lease, or false statements made to Lessor.
o Penalties shall be determined by Lessor unless otherwise provided for by law and may be in the form of, but
Zre, not limited to, interest, fees, fines, and/or lease cancellation. A penalty schedule shall be prepared y
Lessor and shall become effective immediately after public notice. Said schedule may be changed from time
to time after public notice.
N .--'
N 7. LAW - The terms and conditions of this lease shall be performed and exercised subject to all laws,
� o
m G. 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 hereunder with 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.
(Rev. 11/86) 881212
9. ASSIGNMENTS -
o0
(a) Lessee, with prior written consent of Lessor, shall have the right to assign the entire
O leasehold interest of said Lessee in all or part of the land covered hereby, but not less, however,
•ws O than contiguous tracts of approximately forty (40) acres or Governmental lot corresponding to a
U quarter-quarter section for any partial assignment, and for approval of such assignment Lessor shall
Ca make an assignment charge in an amount to be determined by Lessor. Prior to written approval by Lessor
o W of assignment of this lease, Lessee (assignor) shall not be relieved of its obligations under the terms
o $
and conditions herein. An assignment shall not extend the term of this lease.
ox
yr W
(b) If any assignment of a portion of the land covered hereby shall be approved, a new lease
0 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
1.0 Cd discharged from all further obligations and liabilities as to that portion so assigned.
Ln
w
(c) Lessee shall notify Lessor of all assignments of undivided percentage or other interests.
P4 Said interests will not be recognized or approved by Lessor, and the effect of any such assignments
al a will be strictly and only between the parties thereto, and outside the terms of this lease: and no
m dispute between parties to any such assignment shall operate to relieve Lessee from performance of any
1/4OZ terms or conditions hereof or to postpone the time therefor. Lessor shall at all times be entitled to
�j look solely to Lessee or his assignee shown on its books as being the sole owner hereof, and for the
sending of all notices required by this lease and for the performance of all terms and conditions
Cd
a hereof.
N 0
N (d) Although not binding on Lessor, all instruments of every kind and nature whatsoever affecting
this lease should be filed with the Lessor.
z
ro 10. OVERRIDING ROYALTY - Any and all reservations or assignments or overriding royalties shall be
0
� subject to approval by Lessor. The total of said overriding royalties shall not exceed five percent (5%),
U
sc including any overriding royalty previously provided for unless production exceeds a monthly average of
A; fifteen (15) barrels per day or ninety thousand cubic feet of gas per day (90 MCF/D). In the event that
N N production drops to this amount or less, any overriding royalties which exceed five percent (5%) may be
ro .i suspended. Lessor's approval of a reservation or assignment of an overriding royalty shall not bind Lessor
'~ o for payment of said overriding royalty and shall not relieve Lessee of any of its obligations for payment of
Cl G+ royalties to Lessor as provided by ROYALTY paragraphs herein.
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 and 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
881212
(Rev. 11/86)
shall he 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
00
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
u1 0 the proportionate share of production which the acreage in this lease included in any such spacing unit
U bears to the total acreage in said spacing unit.
A
o W 14. UNITIZATION - CONNUNITIZATION - 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
• a conform to such agreement. When only a portion of the land under this lease is committed by an agreement,
colt
G Lessor may segregate the land and issue a separate lease for each portion not committed thereunder; the term
of such separate lease shall be limited as to the original term of this lease. The terms of the lease on
U that portion remaining in the unit shall be deemed to be modified to conform to such agreement.
tipC4 Nonproducing leases shall terminate on the first anniversary date of the lease following the termination
L;; La date of the unit or part thereof modifying the lease, but in no event prior to the end of the primary term
of the lease or the extension term of the lease.
W.a 15. PRODUCTION - Lessee shall, subject to applicable laws, regulations and orders, operate and produce
rn
ao O all wells upon the leased land so long as the same are capable of producing in paying quantities, and shall
ip z operate the same so as to produce at a rate commensurate with the rate of production of wells on adjoining
OH lands within the same field and within the limits of good engineering practice, except for such times as
O W
H F there exist neither market nor storage therefor, and except for such limitations on or suspensions of
om
a production as may be approved in writing by Lessor. Lessee shall be responsible for adequate site security
• on all producing properties.
el D
OP)
r 16. SHUT-IN WELLS - If Lessee shall complete a well on the leased land productive of gas and Lessee is
• Z unable to produce such gas due to a lack of suitable market therefor, Lessor may grant Lessee suspension of
r-tz
ry mC his obligations to produce hereunder until a suitable market for such gas can be found, and during any such
suspension period, it shall be deemed thatgas is being produced hereunder in paying quantities. Exce t
W a P P y 8 P ,
however, that beginning on the anniversary date next, of the year of an extension of the lease by reason of
A+ a shut-in well, Lessee shall pay to Lessor a shut-in royalty equal to $2 per acre of the lease per annum in
,.� co addition to the annual rental. The minimum amount of such shut-in royalty payment shall be $240. Each
H year's shut-in royalty shall to forfeited to Lessor except for the shut-in royalty paid for the year during
.ti 0 which the well begins production. The maximum extension of the lease, due to the existence of a shut-in
4q i, well, shall be five years beyond the extension term as described in the EXTENSION paragraph herein. The
granting of any further extensions shall be at the sole option of Lessor.
17. OPERATIONS - No exploration, drilling or production operation, including permanent installations,
shall 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 Cas 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.
(Rev. 11/86)
881212
Lessee shall bury pipelines below plow depth. Lessee shall set and cement sufficient surface
casing to protect the fresh water wells of the area.
00
O
O 18. NOTIFICATION - Lessee shall notify Lessor and the surface lessee or surface owner of the location
O 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
Ca notice of intent to plug and abandon.
oW
o $
19. BONDS - Lessee shall be liable for all damages to the surface of the land, livestock, growing
• Wcrops, 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
a
0 sufficient bond with Lessor, in an amount to be fixed by Lessor, to secure the payment for such damages as
Wmay be caused by Lessee's operations on said land and to assure compliance with all the terms and provisions
1/40 4L of this lease, the laws of the State of Colorado, and the rules and regulations thereto appertaining. A
.▪. .a bond may be held in effect for the life of production of any well.
H X
W 20. SETTLEMENT - Lessee shall not remove any machinery, equipment or fixtures placed on said land,
ce el other than drilling equipment, nor draw the casing from any well unless and until all payments and
coo obligations currently due Lessor under the terms of this lease shall have been paid or satisfied. Any
2 machinery, equipment or fixtures left on this land for a period of more than six (6) months after the
O H
�W expiration hereof, shall automatically become the property of Lessor.
.-I E
� a21. 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 event
O W Lessee and Lessor may negotiate a provision for production of such discovery.
N W
r-
1/40Z
22. WATER - This lease does not grant permission, express or implied, to Lessee for water exploration,
N drilling, or establishing water wells without the written permission of the surface owner. If Lessor is the
U P4 surface owner, said permission shall not be unreasonably withheld. If Lessee desires to establish
or
Wx adjudicate any water right for beneficial use on the leased land, any such adjudication or application shall
be in the name of Lessor if Lessor is the surface owner. The same shall apply to any nontributary water
al rights established on the leased land which may be put to beneficial use off said land.
.--I
N H
H 23. DEFAULT - Upon failure or default of Lessee to comply with any of the terms and provisions hereof
including but not limited to the failure to comply with laws, rules and regulations governing Colorado 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 event of any
such default or failure, Lessor shall, before making any such cancellaticn, send to Lessee 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) days from the
date of mailing said notice, Lessee shall correct such failure cr default, no cancellation will be made. If
such failure or default is not corrected within thirty (30) days after the mailing of such notice, and if
Lessee does not request a hearing on such notice within thirty (30) days, this lease will terminate and be
cancelled 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 for a term equal to the
primary term as to all of the mineral acres covered hereby (excluding any mineral acres theretofore
surrendered as in the SURRENDER Paragraph provided, or assigned as in the ASSIGNMENTS Paragraph provided).
The granting of such extension shall be at the sole option of Lessor at double the rental for the primary
term hereof.
881212
(Rev. 11/86)
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
00 injury, including death, to persons cr property caused by or sustained in connection with operations on this
U leased land or by conditions created thereby, or based upon any violation of any statute, ordinance, or
regulation.
N O
U
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,
3 except for any specific award(s) paid to Lessee for severed oil and gas reserves, in which event
• of such specific award(s) shall be paid to Lessor in lieu of royalty lost by virtue of the
c4
condemnation, Improvements shall he removed by Lessee per terms in the SETTLEMENT Paragraph herein. If
PQ4 only a portion of the leased land is taken by condemnation, Lessor may, at its option, terminate this lease
o or terminate only that portion of the lease so taken.
U
W
% 27. ERRORS - Every effort is made by Lessor to avoid errors in all procedures including but not
ut
.. ,t limited to auction listings and lease preparation. Lessor shall not be liable for any inconvenience or loss
,y Xcaused by errors which may occur. Lessee shall notify Lessor immediately upon discovery of any errors or
Wdiscrepancy whatever.
� a
O U 28. ARCHAEOLOGY - Lessee shall not destroy, disturb, mar, collect, remove or alter any prehistoric or
1/4O
O N historic resources of any kind on Weld County lands as provided by law. These resources include but are not
OH
41 limited to all artifacts of stone, wood or metal, pictographs, structures, and bones. A discovery of
oEl anything of prehistoric or historic nature shall be reported to Lessor or the State of Colorado
FL Archaeologist immediately.
C929. DEFINITIONS -
12.4
,-i 2 (a) "Gas" as used herein shall mean all gases (combustible and noncombustible), including but not
N limited to allgaseous h drocarbons compounds,
hydrocarbons, gaseous c ounds carbon dioxide, and helium.
>1
U GY.
ag (b) "Oil and gas" as used herein shall include all substances produced as by-products therewith,
including but not limited to sulfur.
,-1 o
N
N ,-4 (c) "Paying quantities" as used herein shall mean and refer to quantities of oil and gas or of
-1 o either of them sufficient to pay for the current cost of producing same.
0.1 G.
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 assign-ent..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.
(Rev. 11/86) 881212
a
r—: U
O
co 0 IN WITNESS WHEREOF, lessor has hereunto signed and caused its name to be signed by the HOARD OF COUNTY
U COMMISSIONERS OF THE COUNTY OF WELD, with the seal of the otfice affixed, and Lessee has signed this
Ca agreement, the day and year first above written.
a
0W
O• BOARD OF COUNTY COMMISSIONERS
O R: WELD , COLORADO
v} W ��e
a At/ or 0
o
t;; ,,b ATTEST: ‘471Vy
HWeld County Clerk Recorder and Clerk o `sy:
41 LEs / � / ( .-
i 0.1 Ii67
riz _ LSD .
N 4 / of 4 S Ili-mot 1
O >i STATE OF COLORADO ) ///
Na;
a COUNTY OF WELD ) _J,f,
N N r- e foregoing instrument was acknowledged before me this r/ day of �teg/1; ,
N -
N O 19 by
CON
Witness my hand and official seal. yy
jr-
�l /
My Commission Expires: 4 9 fl(�
. J
: r: .. t ' S.
_ tary Pub c GARY Inn toss
Q�QIt/��� a ` n t
„0, 2 1200 HU[
%' /- Co C :am ` DENVER, (rliL J�i/i�' 0 e,Ut't,3
d'
9i..........'"O -
F crco
(Rev. 11/86) 881212
,Jr.T IC: 3 , TO;•::;SHIP 7 , RACE
0ri gi; al Town cf Raymor
: mck 7 Lots 3, 4 , 5 , 6 •
:. 5ck 8 . Lots 5 and 6
L,.k. 9 . : Lots 1 5 •.
ck 10 Lots 3 and 4
•
. . H i;.o,0es Addition to the Town of Rayner
Block 1 Lots 4 - 9 , 14 , 15 , 18
Block 2 Lot 5
Block 5 All
Block 6 Ell
Block 7 Wz
Block 9 [I and SE'
Block 10 All
oH
H n�
Beginning 60' North of northeast corner of Lot 12 Block 1, North 37' , Ni
H
southwesterly along Railway street 120.3' , East 114 .4' to beginning
z �
Baldwin and Whittiers Addition to the Town of Rayner
Block 1 Lots 3 - 6 z h)
Block 2 Lots 15 - 18 z on
. Block 3 Lots 1 - 12 , 16 - 18 o
Block 4 All tt
OO
Block 5 Lots 1 - 3, 5
Block 6 Lots 1 , 2 , 4 - 6 , 10 , 13 - 18 cn o
Block 7 Lots 7, 9 , 10 , 14 - 18
H CD
Block 10 Lots 10 - 14 , 18 , 19 z °`
Block 11 Lots 3 - 6 , 12 - 23
Block 12 Lots 231/2, 3, 5Ski, 6
Block 13 Lots 1 - 5
Pec!khams Addition to the Town of Rayner
Block 1 Lots 7 - 12
Block 4 Lots 7 - 12
Block 5 Lots 7 - 12 • 0t„
Block 8 Lots 7 , 8, 10 , 11 x
Block 9 Lots 6 - 9 •
zthi o
Block 12 Lots 7, 8S', 10 , 1131/2
Block 13 Lots 6 - 12
Block 14 Lots 1 - 19 obi
Block 15 Lots 1 - 12 .
Clock 16 Lots 7 - 12 no
Block 17 Lots 1 - 12
Block 13 Lots 1 - 3 , 7 - 12
Block 19 Lots 1 - 12
Block 20 Lots 13 and 11
Block 21 Lots 7 - 12
Block 23 Lot 1
._' ock 2 . L: s 2 - 1?
Block 2 Lots 1 a!n:
Block 26 Lots 1 - 1'
lock 27 Lois 1, 2 , 7 - '_2
.. , oc'r, 23 Lots 3 - 12 881212
ock Lots
2_ a 1 ana
E3 Township 7 Section
f•.'. 1 that part NW _ South of Railroad ri ._ht-of-,, y
North ..of Rail road ri ght-of-w_.
°outh 30 acres NEa•NW, except beginning 599 ' South of northeast corner •
of NW'•;, West 400' , South 112 ' , East 400 ' , North 112 ' to beginning
WISEI.INW4
f N NE NW except 3 acres on East end •
Part NE'ii.N',•1 beginning at point 392 .4 ' West of northeast corner, South Oa
328.7 ' , East 392.4' , North 328. 7' , West 392.4 ' to beginning
01—
•
F N
(.ON
W F+
Rance 58 Township 7 Section 3 NE al n
k
Part SzNE1/4 beginning 799 .2 ' East and 327' North of center of Section 3, z N
East 390' , North 55 ' , West 390 ' , South ES ' to beginning z
- v
"*J N
That part NE; beginning at center of Section 3, East 799 . 2 ' , North at c o
right angles to publ ic. highway southwesterly along highway to North and
South centerline of Sec to beginning y o
H
H
Beginning 799 .2' East and 495 ' North of center of Section 3, East 390' , z
North 55 ' , West 390' , South 55 ' to beginning r co
E• beginning 550 ' North and 1 i 9 ' of x
That part P, =; , _8. East center of Section
3 , North 115 ' , southwesterly parallel to the CE1Q railroad right-of-way a ••
115 .9 ' , westerly 37' , South 110' , East 150 ' to beginning av rn
Beginning 799 .2' East and 440' North of center of Section 3, East 390' , azi
North 55 ' , West 390 ' , South 55 ' to beginning Ll �„
SV o• Eo
N 0
•
C
OW
0
Ow
31212
T0; ., .i!1P 7N RA:; :
Origir::1 Town cf Rayrcr
Hock 7 Lots 3, 4 , 5 , 6
ck 8 Lots 5 and 6 •
:cck. .9 . : Lots 1 - 5'.
ock 10 Lots 3 and 4 _ .
•
Addition to the Town of Raymer
Block 1 Lots 4 - 9 , 14 , 15 , 18
Block 2 Lot 5
Block 5 All
Block 6 Ez
Block 7 W1/2
Block 9 W1 and SE'
Block 10 All - -
Beginning 60' North of northeast corner of Lot 12 Block 1 , North 37' ,
southwesterly along Railway street 120.3' , East 114 .4' to beginning
Baldwin and Whittiers Addition to the Town of Rayner
Block 1 Lots 3 - 6
Block 2 Lots 15 - 18
Block 3 Lots 1 - 12 , 16 - 18
Block 4 All
Block 5 Lots 1 - 3, 5
Block 6 Lots 1 , 2 , 4 - 6 , 10 , 13 - 18
Block 7 Lots 7, 9 , 10 , 14 - 18
Block 10 Lots 10 - 14 , 18 , 19
Block 11 Lots 3 - 6 , 12 - 23
Block 12 Lots 251/2, 3, 551/2, 6
Block 13 Lots 1 - 5
Pec!khans Addition to the Town of Raymer -
Block 1 Lots 7 - 12
Block 4 Lots 7 - 12
Block 5 Lots 7 - 12
Block 8 Lots 7 , 8, 10, 11 •
Block 9 Lots 6 - 9
Block 12 Lots 7, 851/2, 10, 115?
Block 13 Lots 6 - 12
Block 11 Lots 1 - 19
Block 15 Lots 1 - 12
Block 16 Lots 7 - 12
Block 17 Lots 1 - 12
Block 13 Lots 1 - 3 , 7 - 12
Block 19 Lots 1 - 12
Block 20 Lots 13 and 11
Block 21 Lots 7 - 12
Eloc!< 23 Lot 1
E . cc : 2`. Lots 1 an 2
clock 23 Loy . 1 - i:_
=lock 27 Lots 1 , 2 , 7 - 12 881212
E'I ock 23 Lots 3 - 1?.
ock 29 Lot: 1 ;:nd 2 B 1221 REC 02167201 01/06/89 11 :56 $0 .00 9/010
cTco 9 - - 3 F 0122 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO. CO
. .. 52. Township 7 Section _ '47.;
: l that cart N'Si-; South of Railroad ric t-o;'-;ray
•
•
_ "ilbls north of Railroad. ri gh.t-of-w:
:h 30 acres NE:iNW, except beginning EEO ' South of northeast corner
cf NW' , West 400 ' , South 112 ' , East 400 ' , North 112 ' to beginning
N SE,NW
N .NNENW< except 3 acres on East end •
Part NE1/4N'W beginning at point 392 .4 ' West of northeast corner, South
323.7 ' , East 392.4' , North 328 .7' , West 392. 4' to beginning
Rance 58 Township 7 Section 3 NE1/4
Part SNE_ beginning 799. 2 ' East and 330' North of center of Section 3,
East 390' , North 55 ' , West 390 ' , South 55 ' to beginning
o
oThat part NE1 beginning at center of Section 3, East 799. 2 ' , North at
O o right uncles to public. highway southwesterly along highway to North and
c.) South centerline of Sec to beginning
a
o rj Beginning 799 .2' East and 495 ' North of center of Section 3, East 390' ,
o a North 55 ' , West 390' , South 55 ' to beginning
• al
o• That part NE;s beginning 550 ' North and 1 ,189 ' East of center of Section
3 , North 115 ' , southwesterly parallel to the CE&Q railroad right-of-way
N a 115 .9 ' , westerly 37' , South 110 ' , East 150 ' to beginning
x Beginning 799 .2' East and 440' North of center of Section 3, East 390' ,
allorth 55 ' , West 390 ' , South 55 ' to beginning
co
o Z •
O H
•-I E
o rn
W
r1 D
o W
N [ra
N
r4z •
� z
N
a
a14
N N
N
,-I
• W
881212
howard & associates, ltd.
oil & gas
January 4, 1989 Vti C,u4Tf
Mary Reiff
Weld County Clerk to the Board I JAN 6 1989 ;
P.0.Box 758
Greeley, Colorado 80632
issizeux:.ctuA,
RE: New Raymer Leases
Dear Mrs. Reiff,
As per your request, enclosed are the signed/notarized leases that have been signed,
as well as, the releases for the Board's approval and signature(s) . There are two (2)
sets of each.
At present I am holding off on the decision on leasing the two (2) additional lots that
I requested, until I make the decision on how those lots effect my overall play and if
in fact the are worth the price of $200.00.
To be quite frank Mrs. Reiff, I can not begin to describe my total disappointment and
dismay on how the County and the County Commissioners have handled this matter in terms
of the County's error, their inflexable rules and procedures and the very nonprofessional
and nonforthright manner that was used in dealing with us in leasing these lands. In my
many dealings with the County in the past, I always felt that they were more honorable and
business-like than they showed in this present situation. I guess honor and fair business
practice has nothing to do with a business tranaction when money is concerned.
Under these circumstances I am upholding my end of the deal by resigning the leases and re-
turning them to you.
Sincerely,
NOW fAc$ C S, LTD.
7
v
;doh . o rd
Denver Club BuNding, 518-17th Street, Suite 640, D , CO 80202,Telephone 303423-7738
881212
U‘H mEmORAnDUm
Wilk. To John Howard Date December 30, 1988
COLORADO From Weld County Clerk to the Board
Documents concerning New Raymer Leases
Subject:
Enclosed find the following documents :
Resolution denying request for refund
Release of rights to 11/9/88 lease (2 copies)
Lease for 130 .2 acres in New Raymer (2 copies)
Lease covering two lots in New Raymer (2 copies)
Sign and return both copies of the release and leases. Please
fill in the acreage involved in the two-lot lease and check the
legal description, correcting if necessary. Upon receipt of the
signed copies and your check in the amount of $200 .00 , the
documents will be recorded and you will be sent a purported copy
of each. Also at that time, the Resolution waiving the bid on the
two lots will be executed.
Thank you,
881212
Hello