HomeMy WebLinkAbout871492.tiff RESOLUTION
RE: APPROVE REQUEST OF TRANSCONTINENT OIL COMPANY TO WAIVE
BIDDING PROCEDURE CONCERNING OIL AND GAS LEASE AND ACCEPT
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, Transcontinent Oil Company has requested that the
bidding procedure be waived concerning an Oil and Gas Lease on the
following described mineral acres:
The south 40 feet of the SSE of Section 30 ,
Township 6 North, Range 64 West of the 6th
P.M. , Weld County, Colorado
WHEREAS, after review, the Board found that Transcontinent
Oil Company did show good cause for waiving the bidding procedure
on said Oil and Gas Lease, and
WHEREAS, Transcontinent Oil Company is offering to lease the
above described mineral acres , containing 2 .4 mineral acres , more
or less, and
WHEREAS, the Board finds that the lease offer from
Transcontinent Oil Company in the amount of TWO HUNDRED AND NO/100
DOLLARS ($200 .00) , is acceptable, with the further terms and
conditions being as stated in said Oil and Gas Lease, a copy being
attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County
Commissioners of Weld County, Colorado, that the request of
Transcontinent Oil Company, 621 17th Street, Suite 1201 , Denver,
Colorado 80293 , to waive the bidding procedure on an Oil and Gas
Lease concerning the 2 . 4 mineral acres , be , and hereby is,
approved.
BE IT FURTHER RESOLVED by the Board that the offer of
Transcontinent Oil Company, as hereinabove stated, be , and hereby
is, accepted.
871492
Page 2
RE: WAIVE BID PROCEDURE - TRANSCONTINENT OIL COMPANY
The above and foregoing Resolution was , on motion duly made
and seconded, adopted by the following vote on the 16th day of
November, A.D. , 1987 .
% BOARD OF COUNTY COMMISSIONERS
ATTEST: WELD COU Y, LORA
Weld County lerk and Recorder
and Clerk to the Board Gord acy h rman
\: t7)-1/C-e / C. Kirb , Pro em
eputy County erk
APPROVED TO FORM: ene R. Bran er
Cam— _ ' a•que ��� a Jo s
U z ,
County Attorney ,, c
Frank amaguchi
871492
AR21c-'3791S
co 0
oo
0
WELD COUNTY OIL AND GAS LEASE
+ O
U
Q Containing 2.4 acres, more or less;
W Containing 2.4 net mineral acres, more or less:
o
0 3
16th November
o
A-53 THIS LEASE AGREEMENT, dated this }et- day of -Detembe�' , 1987 , made and entered
a into by and between WELD COUNTY, COLORADO, a political subdivision of the STATE OF COLORADO, acting by and
0 through the BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD, for its respective interests, c/o BOARD OF
W COUNTY COMMISSIONERS, WELD COUNTY CENTENNIAL CENTER, 915 10TH STREET, CREELEY, CO 80631, hereinafter called
MW Lessor, and:
•• �+ Trans continent Oil Company
621 17th St. , Ste. 1201
a Denver, CO 80293
r-• U hereinafter called Lessee:
• z
W WITNESSETH
cv
ri
W WHEREAS, said Lessee has applied to Lessor for an oil and gas lease covering the land herein described,
and has paid a filing fee in the amount of $10.00, plus a bonus consideration of $ 200.00 PX,CAMM
Kret
rn W
• W 3OMI fixed by Lessor as an additional consideration for the granting of this lease, and Lessee agrees to
• z pay an annual rental of $ 2.40 , computed at the rate of $ 1 .00 -, per mineral acre or
fraction thereof per year.
V IX
WHEREAS, all the requirements relative to said application have been duly complied with and said
W ?£i application has been approved and allowed by Lessor;
Oj 1O THEREFORE, in consideration of the agreements herein, on the part of Lessee to be paid, kept and
✓ u
m performed, Lessor does lease exclusively to Lessee for the sole and only purpose of drilling or,
o
development of and production of oil and gas, or either of them, thereon and therefrom with the right to own
C1 �" - all oil and gas so produced and saved therefrom and not reserved as royalty by Lessor under the terms of
this lease, together with rights-of-way, easements and servitudes for pipelines, telephone and telegraph
4 lines, tanks and fixtures for producing and caring for such product, and housing and boarding employees, and
any and all rights and privileges necessary for the exploration and operation of said land for oil and gas,
the following described land situated in the County of Weld, State of Colorado, and more particularly
described as follows:
DESCRIPTION OF LAND SECTION TOWNSHIP RANGE
The South 4o feet of the SzSE4 30 6 North 64 West /� z
TO HAVE AND TO HOLD said land, a4+all the rights and rivileges granted hereunder to Lessee until the
hour of twelve o'clock noon on the day of ��ee1� , 19 90 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
87149 e)
ttd
(Rev. 11/86)
primary term or any extension thereof, or while this lease is in force by reason of such drilling or
reworking operations or other production.
EXPLORATION - Lessor reserves the right to conduct exploration on the leased land provided such
exploration does not interfere with rights granted herein.
In consideration of the premises, the parties covenant and agree as follows:
co 0 1. RENTAL - If this lease is extended for an additional term as provided for in the EXTENSION
U paragraph hereof, Lessee shall during such extended period pay to lessor an annual rental at double the rate
above specified for the land covered hereby. The rental in effect at the time production is established
NO
U shall not be increased due to the term of this lease being extended by such production. Rentals set at the
o time of established production shall be paid during the remaining life of this lease, annually, in advance,
o W on or before each anniversary date hereof. There shall be no refund of unused rental.
0 �
CD a 2. ROYALTY - Lessee stall account for any and all substances produced on the leased land and Lessee
h la• shall pay to Lessor as royalty, in addition to the rentals provided, but except for products used on the
fz4 leased land, unavoidably lost or flared on the leased land, with approval of Lessor, the following:
0
U
a (a) On oil, 121/2% of the oil produced and saved from the leased land.
N `a - At the option of Lessor, and with sixty (60) days' notice to Lessee, Lessor may take its
H x royalty oil in kind, in which event Lessee shall deliver such royalty oil to Lessor on the leased land,
• free of cost or deduction, into the pipelines or storage tanks designated by Lessor, but Lessee shall
co
co U not in such case be required to provide free tankage for any such oil for a longer period than one
month after the same is run into tanks. With sixty (60) days' notice to Lessee, Lessor may cease
r` z
o H taking oil royalty in kind. When paid in cash, the royalty shall be calculated upon the fair market
value of the oil at the well which shall not be deemed to be less than the price actually paid to
NH
Lessee at the well by the purchaser thereof; and in no event shall the royalties be based upon a market
a
W value at the well less than the posted price in the field for such oil, or in the absence of a posted
cn W price in the field for such oil, upon a market value at the well less than the prevailing price
N G. received by other producers in the field for oil of like grade and gravity at the time such oil is run
ni z into pipelines or storage tanks.
z
N a
O (b) On gas, including casinghead gas or other gaseous substance, 121/2% of the fair market
U a value at the well or of the price received by Lessee at the well, whichever is greater, of all gas
Wa produced and sold from the leased land or utilized off the land by Lessee. A copy of all contracts for
rn �
sale of gas shall be furnished to Lessor. Where gas is sold under contract that has been approved by
r` Ln Lessor, the fair market value of such gas for determining the royalties payable hereunder shall be the
Ho m 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) 871492
3. RECORDS - Lessee agrees to keen and to have in possession complete and accurate books and records
showing the production and disposition of any and all substances produced on the leased land and to permit
Lessor, at all reasonable hours, to examine the same, or to furnish copies of same to Lessor upon request
along with purchaser's support documentation. Lessor will not be unreasonable with requests. All said
books and records shall he retained by Lessee and made available in Colorado to Lessor for a period of not
less than five years.
4. MEASUREMENTS - All proouction shall be accurately measured using standards established by the
American Gas Association (AGA) and/or the American Petroleum Institute (API) and all measuring devices shall
be tamperproof as nearly as possible. Oil royalties due within the terms of this lease shall be calculated
on actual and accurate measurements within API standards unless a different means of measurement, subject to
o0 Lessor's approval, is provided.
on 0 5. PAYMENTS & REPORTS - All payments and reports due hereunder shall be made on or before the day
U such payments and reports are due. Nothing in this paragraph shall be construed to extend the expiration of
Q the primary tern hereof.
oW
o Oil royalty payments and supporting documents shall be submitted prior to the last day of the
o P4 month following each month's sale of production, and gas royalty payments and supporting documents shall be
n-41
submitted prior to the last day of the second month following each month's sale of production.
0
WAll payments shall be made by cash, check, certified check or money order. Payments having
N A» restrictions, qualifications, cr encumbrances of any kind whatsoever shall not to accepted ty Lessor. A
en penalty for a late payment shall be charges as set forth in the PENALTIES paragraph herein.
.. w
~ a 6. PENALTIES - Apenalty shall be imposed for, but not limited to late payments, improper a ents
P P Ym . payments,
,
W operational deficiencies, violation of any covenant of this lease, or false statements made to Lessor.
r--
co U Penalties shall be determined by Lessor unless otherwise provided for by law and may be in the form of, but
rz
not limited to, interest, fees, fines, and/or lease cancellation. A penalty schedule shall be prepared by
Lessor and shall become effective immediately after public notice. Said schedule may be changed from time
N E to time after public notice.
.-ICfl
a
• 7. LAW - The terms and conditions of this lease shall be performed and exercised subject to all laws,
cn D
rn W rules, regulations, orders, local ordinances or resolutions applicable to and binding upon the
✓ G'' administration of lands and minerals owned by the County of Weld, and to laws, rules and regulations
rn
NZ governing oil and gas operations in Colorado. Violations shall result in penalties as provided for by law
N 4 or as set forth in the aforementioned schedule or shall, at the option of Lessor, result in default as
?+ provided hereinafter.
U fx
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
on co
r ut from further obligations or liability hereunder with respect to the land so surrendered; provided that no
opartial surrender or cancellation of this lease shall be for less than contiguous tracts of approximately
CO 44 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) - 871492
9. ASSIGNMENTS -
(a) Lessee, with prior written consent of Lessor, shall have the right to assign the entire
leasehold interest of said Lessee in all or part of the land covered hereby, but not less, however,
than contiguous tracts of approximately forty (40) acres or Governmental lot corresponding to a
quarter-quarter section for any partial assignment, and for approval of such assignment Lessor shall
make an assignment charge in an amount to be determined by Lessor. Prior to written approval by Lessor
of assignment of this lease, Lessee (assignor) shall not be relieved of its obligations under the terms
o O and conditions herein. An assignment shall not extend the term of this lease.
o
(b) If any assignment of a portion of the land covered hereby shall be approved, a new lease
O shall be issued to the assignee covering the assigned land, containing the same terms and conditions as
U
this lease, and limited as to term as this lease is limited, and the assignor shall be released and
discharged from all further obligations and liabilities as to that portion so assigned.
o W
03
(c) Lessee shall notify Lessor of all assignments of undivided percentage or other interests.
o a
a.W Said interests will not be recognized or approved by Lessor, and the effect of any such assignments
awill be strictly and only between the parties thereto, and outside the terms of this lease: and no
O dispute between parties to any such assignment shall operate to relieve Lessee from performance of any
W terms or conditions hereof or to postpone the time therefor. Lessor shall at all times be entitled to
look solely to Lessee or his assignee shown on its books as being the sole owner hereof, and for the
•• W+ sending of all notices required by this lease and for the performance of all terms and conditions
Lri
� x
hereof.
C4
r` a (d) Although not binding on Lessor, all instruments of every kind and nature whatsoever affecting
0o U this lease should be filed with the Lessor.
NZ
O H
W 10. OVERRIDING ROYALTY - Any and all reservations or assignments or overriding royalties shall be
tiy subject to approval by Lessor. The total of said overriding royalties shall not exceed five percent (5%),
including any overriding royalty previously provided for unless production exceeds a monthly average of
� D fifteen (15) barrels per day or ninety thousand cubic feet of gas per day (90 MCF/D). In the event that
rn W
N. G. production drops to this amount or less, any overriding royalties which exceed five percent (5%) may be
co 2 suspended. Lessor's approval of a reservation or assignment of an overriding royalty shall not bind Lessor
Z for payment of said overriding royalty and shall not relieve Lessee of any of its obligations for payment of
oroyalties to Lessor as provided by ROYALTY paragraphs herein.
U f:4
Wx 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
• Cri shall be presumed that the production of oil and gas from offset wells results in drainage from the leased
1"-- N
ti el 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
W IL' 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 sane 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
(Rev. 11/86) 871492
shall be accomplished or terminated by filing of record a declaration of pooling, or declaration of
termination of pooling, and by mailing or tendering a copy to Lessor, or to the depository bank. Drilling
or reworking operations upon or production from any part of such spacing unit shall be considered for all
purposes of this lease as operations or productions from this lease. Lessee shall allocate to this lease
the proportionate share of production which the acreage in this lease included in any such spacing unit
bears to the total acreage in said spacing unit.
14. UNITIZATION - COMMUNITTZATION - 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
o OV conform to such agreement. When only a portion of the land under this lease is committed by an agreement,
o - Lessor may segregate the land and issue a separate lease for each portion not committed thereunder; the term
N O of such separate lease shall be limited as to the original term of this lease. The terms of the lease on
G that portion remaining in the unit shell be deemed to be modified to conform to such agreement.
Ca• Nonproducing leases shall terminate on the first anniversary date of the lease following the termination
41date of the unit or part thereof modifying the lease, but in no event prior to the end of the primary term
0
of the lease or the extension term of the lease.
tog
hW
q 15. PRODUCTION - Lessee shall, subject to applicable laws, regulations and orders, operate and produce
x
o all wells upon the leased land so long as the same are capable of producing in paying quantities, and shall
• operate the same so as to produce at a rate commensurate with the rate of production of wells on adjoining
N !s: lands within the same field and within the limits of good engineering practice, except for such times as
: ,,d there exist neither market nor storage therefor, and except for such limitations on or suspensions of
ut production as may be approved in writing by Lessor. Lessee shall be responsible for adequate site security
a on all producing properties.
� a
00 CJ 16. SHUT-IN WELLS - If Lessee shall complete a well on the leased land productive of gas and Lessee is
r Z unable to produce such gas due to a lack of suitable market therefor, Lessor may grant Lessee suspension of
Whis obligations to produce hereunder until a suitable market for such gas can be found, and during any such
N H suspension period, it shall be deemed that gas is being produced hereunder in paying quantities. Except,
W
fx however, that beginning on the anniversary date next, of the year of an extension of the lease by reason of
rq 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
al W addition to the annual rental. The minimum amount of such shut-in royalty payment shall be $240. Each
W
en en year's shut-in royalty shall be forfeited to Lessor except for the shut-in royalty paid for the year during
NZ which the well begins production. The maximum extension of the lease, due to the existence of a shut-in
< well, shall be five years beyond the extension term as described in the EXTENSION paragraph herein. The
a granting of any further extensions shall be at the sole option of Lessor.
U
a17. OPERATIONS - No exploration, drilling or production operation, including permanent installations,
CA 0 shall be within 200 feet of any existing building or other improvement, including water well or reservoir,
rri en en without the written permission of the owner of said improvements. Lessee shall keep a correct log of each
—1 o well drilled hereunder, showing by name or description the formations passed through, the depth at which
Lq G. each formation was reached, the number of feet of each size casing set in each well, where set, ana the
total depth of each well drilled. Lessee, within thirty (30) days after the completion or abandonment of
any well drilled hereunder, shall file in the office of Lessor a complete and correct log of such well,
together with a copy of the electric log and the radioactivity log of the well when such logs, or either of
them, are run; and also a copy of all drill stem test results, core records and analyses, record of
perforations and initial production tests, if any. If any of the information required by this paragraph is
contained in reports required to be filed with the Oil and Gas Conservation Commission of Colorado, the
requirements of this paragraph for such information may be satisfied by such filing with said Commission,
except for copies of the reports as are required by the following paragraph, and provided that all such
information is immediately available to Lessor. Any proprietary information so submitted shall not be
subject to public inspection under Colorado law.
(Rev. 11/86) - 871.492
Lessee shall bury pipelines below plow depth. Lessee shall set and cement sufficient surface
casing to protect the fresh water wells of the area.
18. NOTIFICATION - Lessee shall notify Lessor and the surface lessee or surface owner of the location
of each drill site at least two weeks prior to commencing drilling operations thereon. Lessee shall notify
Lessor before commencing to plug and abandon any well by copy of Lessee's request for approval or sundry
notice of intent to plug and abandon.
m O
o V
o 19. BONDS - Lessee shall be liable for all damages to the surface of the land, livestock, growing
Ocrops, 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
q sufficient bond with Lessor, in an amount to be fixed by Lessor, to secure the payment for such damages as
o W may be caused by Lessee's operations on said land and to assure compliance with all the terms and provisions
0 3 of this lease, the laws of the State of Colorado, and the rules and regulations thereto appertaining. A
o c4 bond may be held in effect for the life of production of any well.
4-41
Q
• 20. SETTLEI1ENT - Lessee shall not remove any machinery, equipment or fixtures placed on said land,
OV other than drilling equipment, nor draw the casing from any well unless and until all payments and
N W'• obligations currently due Lessor under the terms of this lease shall have been paid or satisfied. Any
machinery, equipment or fixtures left on this land for a period of more than six (6) months after the
in expiration hereof, shall automatically become the property of Lessor.
r+ P4
• 21. OTHER DISCOVERY - Should Lessee discover any valuable products other than oil and gas, on or
co V within the leased land, Lessee shall within seven (7) days report such discovery to Lessor, in which event
Lessee and Lessor may negotiate a provision for production of such discovery.
• H
\ W
N E 22. WATER - This lease does not grant permission, express or implied, to Lessee for water exploration,
• drilling, or establishing water wells without the written permission of the surface owner. If Lessor is the
B1 surface owner, said permission shall not be unreasonably withheld. If Lessee desires to establish or
rn W adjudicate any water right for beneficial use on the leased land, any such adjudication or application shall
✓ G. be in the name of Lessor if Lessor is the surface owner. The same shall apply to any nontributary water
2 rights established on the leased land which may be put to beneficial use off said land.
ri z
N a
23. DEFAULT - Upon failure or default of Lessee to comply with any of the terms and provisions hereof
• a• including but not limited to the failure to comply with laws, rules and regulations governing Colorado oil
aR£C and gas operations, Lessor is hereby authorized upon notice and hearing, as hereinafter provided, to cancel
this lease as to all of the leased lane so claimed or possessed by Lessee hereunder. In the event of any
• LO such default or failure, Lessor shall, before making any such cancellation, send to Lessee by certified
M
O 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 or 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.
871492
(Rev. 11/86)
25. HOLD HAR1ILESS - Lessee shall indemnify Lessor against all liability and loss, and against all
claims ant actions, including the defense of such claims or actions, based upon or arising out of damage or
injury, including death, to persons or property caused by or sustained in connection with operations on this
leased land or by conditions created thereby, or based upon any violation of any statute, ordinance, or
regulation.
26. CONDEMNATION - If the leased land shall be taken in any condemnation proceeding, this lease shall
automatically terminate is of the date of taking. The award for such condemnation shall be paid to Lessor,
o▪ U except for any specific award(s) paid to Lessee for severed oil and gas reserves, in which event
O
of such specific award(s) shall be paid to Lessor in lieu of royalty lost by virtue of, the
r` O condemnation. Improvements shall be removed by Lessee per terms in the SETTLEMENT Paragraph herein. If
U
only a portion of the leased land is taken by condemnation, Lessor may, at its option, terminate this lease
aor terminate only that portion of the lease so taken.
OW
3
• 27. ERRORS - Every effort is made by Lessor to avoid errors in all procedures including but not
oW limited to auction listings and lease preparation. Lessor shall not be liable for any inconvenience or loss
acaused by errors which may occur. Lessee shall notify Lessor immediately upon discovery of any errors or
O discrepancy whatever.
U
W
� a 28. ARCHAEOLOGY - Lessee shall not destroy, disturb, mar, collect, remove or alter any prehistoric or
•• Le historic resources of any kind on Weld County lands as provided by law. These resources include but are not
111
x
limited to all artifacts of stone, wood or metal, pictographs, structures, and bones. A discovery of
anything of prehistoric or historic nature shall be reported to Lessor or the State of Colorado
W
r` a Archaeologist immediately.
co U
r- z 29. DEFINITIONS -
O N
�W
NH (a) "Gas" as used herein shall mean all gases (combustible and noncombustible), including but not
limited to all gaseous hydrocarbons, gaseous compounds, carbon dioxide, and helium.
W
ti
rn W
r` Ga (b) "Oil and gas" as used herein shall include all substances produced as by-products therewith,
M - including but not limited to sulfur.
NZ
� z
N a
(c) "Paying quantities" as used herein shall mean and refer to quantities of oil and gas or of
V a either of them sufficient tc pay for the current cost of producing same.
a
30: HEIRS AND ASSIGNS - The benefits and obligations of this lease shall inure to and be binding upon
rn N the heirs, legal representatives, successors or assigns of Lessee; but no sublease or assignment hereof, or
M of any interest herein, shall be binding upon Lessor until the same has been approved by Lessor as explained
' o in the ASSIGNMENTS' paragraph provided.
Cl k+
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.
87149'9
(Rev. 11/86)
IN WITNESS WHEREOF, lessor has hereunto signed and caused its name to be signed by the BOARD OF COUNTY
COMMISSIONERS OF THE COUNTY OF WELD, with the seal of the office affixed, and Lessee has signed this
co O agreement, the day and year first above written.
oV
BOARD OF COUNTY COMMISSIONERS
co O WELD COUNTY,o
��,,'•"
o a ATTEST: S41:://1"
hW J
O Weld County CI Vh4 Recoiaer°
• and Clerk tsi a 4ngrd J
N Ri - Cyr y 3cLiet#41.4L-'(:?7\“\\alr:Nr."---
�M ti
4. 0
rxi
mU
LESSEE:
r- z
O H
W `
N Brian Haley - thorized Agent
Transcontinent Oil Company
p STATE OF COLORADO )
r w ) SS.
rn COUNTY OF WELD
✓• Z
N Th „�rrur rqr
9qument was acknowledged before me this 1st day of DecemberU C4
>' 189 `y.�YY..--Irian,. - Authorized Agent of Trans continent Oil Company
a Z Wit 14 tild arrid ofd vial seal.
rn M N. LID
.-i rn My CtosffifssieutylkOsr 5-19-89
o
ww qle- ofcCC'
/' ill:.4
Notary Public Dawn D. Marx
621 17th St. , Ste. 1201
a rm Denver, CO 80293
n cx
871192-
(Rev. 11/86)
(c c�.w2ico,2ti12E/2t ��lL !O
��z nz/zaIu,9
FIRST INTERSTATE TOWER SOUTH DENVER, COLORADO 80293
-,-- TELEPHONE 13031298-8108
621 SEVENTEENTH STREET
December 1, 1987
Weld County Board of Commissioners
915 10th St.
Greeley, CO 80631
Attention: Tommie
Re: Oil and Gas Lease
Dear Tommie;
Enclosed find two copies of your lease executed as you requested and my
check for the $200.00 bonus amount as agreed.
Please let me know how things are progressing, and if there is anything
further I can do for you. Thank you!
Sincerely;
�Bria aley
071492
Pita nco;2fCi2Elzt CAI (O112PC112t1JJ
•
t.
FIRST INTERSTATE TOWER SOUTH DENVER. COLORADO 80293
•?T TELEPHONE 1303) 298-8108
621 SEVENTEENTH STREET
November 9, 1987
Weld County Board of Commissioners
PO Box 758
Greeley, CO 80632
Attention: Board meeting Nov. 16, 1987
Re: Oil and Gas Lease covering
a 2.4 acre tract of road
T.6N. ,R.64W.
Sec. 30: A 40' wide strip along
the south side of the S1/28B1
Weld County, Colorado
Gentlemen;
We are interested in obtaining an Oil and Gas Lease from Weld County covering
a tract conveyed to the county for use as a road over captioned lands.
As this represents a tract of only 2.4 acres in size, we would respectfully like
to request that the bid procedure be waived, and that this lease be granted to
us on the standard terms of 3 year term, 1/8 royalty, and $200.00 minimum payment
of bonus and rentals.
Thank you for your consideration, and we will remain in contact for your decision.
Sincerely;
Bri Haley
8714S2
COGSWELL AND WEHRLE
ATTORNEYS AND COUNSELORS AT LAW
A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS
ONE UNITED BANK CENTER TELEPHONE: 303 661.2130
1700 LINCOLN STREET, SUITE 3500 TELECOPIER: 303 832-2150
DENVER, COLORADO 80203
November 2, 1987
Southmark Acquisitions, Inc.
P.O. Box 3549
Midland, Texas 79702
Attn: Ms. Brenda Hughes
DRILLING TITLE OPINION
Blehm No. 1 Well
Weld County, Colorado
Gentlemen:
LANDS COVERED BY OPINION •
Township 6 North, Range 64 West, 6th P.M.
Weld County, Colorado
Section 30: SfSE*
Containing 80.00 acres, more or less
TITLE DATA EXAMINED
1 . Tract index for the captioned lands maintained by Transamerica
Title Insurance Company, Greeley, Colorado, from inception of title to
October 14, 1987 at 7:00 a.m.
2. Records of the Weld County, Colorado Clerk and Recorder, Greeley,
Colorado, insofar as the same pertain to the captioned lands, from inception
of title to October 14, 1987 at 7:00 a.m.
3. Delay rental receipts for Lease A for 1982 through 1985.
OWNERSHIP
For convenient reference, we have segregated the subject lands into the
following tracts:
TRACT 1 : A 40-foot wide strip of land off the entire south side of the
SUSE+ of Section 30, containing 2.4 acres, more or less.
871492
COGSWELL AND WEHRLE
•
Southmark Acquisitions, Inc.
November 2, 1987 •
Page 2
TRACT 2: All of the SISE* except Tract 1 described above, containing
77.6 acres, more or less.
Each interest tabulated below is an undivided interest and has been
proportionately reduced where appropriate.
Based upon the title data examined, and subject to the exceptions,
comments, and requirements set forth herein, we find title to the captioned
lands and the leases tabulated herein as of October 14, 1987 at 7:00 a.m. to
be owned and encumbered as follows:
TRACT 1 SURFACE
Owner - Interest
Weld County All
TRACT 2 SURFACE
Owner aG Interest
Harold R. Uhrich Co. - 1/2
Emma Uhrich Co. - 1/2
TRACT 1 MINERALS
• Owner Interest Lease
Weld County All Unleased
TRACT 2 MINERALS
Owner Interest Lease
Harold R. Uhrich Co. 1/4 A
Emma Uhrich Co. 1/4 A
Ross J. Wabeke,
Bankruptcy Trustee for
the Estate of Theador
Blehm, debtor,
Case No. 82-B-04904-M 1/4 B
871499
COGSWELL AND WEHRLE
Southmark Acquisitions, Inc.
November 2, 1987
Page 3
Janice Fisher 1/8 C
L. June Lehan 1/8 C
TRACT 1 OVERRIDING ROYALTY
None.
TRACT 2 OVERRIDING ROYALTY
None.
TRACT 1 OIL AND GAS LEASEHOLD
Owner % of WI Net % Lease
Weld County 100.00000% 100.00000% WI Unleased
TRACT 2 OIL AND GAS LEASEHOLD
Owner % of WI Net % Lease
Energy Minerals Corporation 100.00000% 87.50000% WI A-C
Harold R. Uhrich Co. 3.12500% R A
Emma Uhrich Co. 3. 12500% R A
Ross J. Wabeke,
Bankruptcy Trustee for
the Estate of Theador
Blehm, debtor, -
Case No. 82-B-04904-M 3.12500% R B
Janice Fisher 1 .56250% R C
L. June Lehan 1 .56250% R C
TOTAL 100.00000% 100.00000%
871492
COGSWELL AND WEHRL
Southmark Acquisitions, Inc.
November 2, 1987 •
Page 4
PRORATED OIL AND GAS LEASEHOLD FOR THE S*SE* OF SECTION 30, T. 6
N. , R. 64 W. , 6TH P.M.
Owner % of WI Net % Lease
Weld County 3.00000% 3.00000% WI Unleased
Energy Minerals Corporation 97.00000% 84.87500% WI A-C
Harold R. Uhrich Co. 3.03125% R A
Emma Uhrich Co. 3.03125% R A
Ross J. Wabeke,
Bankruptcy Trustee for
the Estate of Theador
Blehm, debtor,
Case No. 82-B-04904-M 3.03125% R B
Janice Fisher 1 .51562% R C •
L. June Lehan 1 .51563% R C
TOTAL 100.00000% 100.00000%
ENCUMBRANCES
Taxes: Colorado real property taxes assessed against the subject lands .
for 1986 and all prior years have been paid.
Easements:
Easement No. 1 :
Dated: November 26, 1887. -
Recorded: February 8, 1888 in book 69 at page 625.
_ From: Rachel H. Foote.
To: John B. Cooke.
Traversing: T. 6 N. , R. 64 W. , 6th P.M.
Section 30: WISE*
871492
COGSWELL AND WEHRL
Southmark Acquisitions, Inc.
November 2, 1987
Page 5
Purpose: Right-of-way for an irrigation ditch.
Now Owned By: - John B. Cooke
Easement No. 2:
Dated: May 9, 1983.
Recorded: October 17, 1983 in book 1010 at
reception No. 1943760.
From: North Side Lateral, a Colorado
corporation.
To: Colorado Gathering & Processing
Corporation.
Traversing: The subject Section 30.
Purpose: Right to construct and maintain a gas line
over, under and across the grantor's
rights-of-way.
Now Owned By: Colorado Gathering & Processing
Corporation.
Mortgages:
Mortgage No. 1 :
Dated: December 13, 1982.
Recorded: December 17, 1982 in book 984 at
reception No. 1911776.
From: Harold R. Uhrich Co. and Emma Uhrich
Co.
To: The public trustee for the benefit of
IntraWest Bank of Greeley, N.A.
Amount: $434,650.00.
871492
COGSWELL AND WEHRL
Southmark Acquisitions, Inc.
November 2, 1987
Page 6 -
Maturity: On demand.
Lands: T. 6 N. , R. 64 W. , 6th P.M.
Section 30: SE*
Now Owned By: IntraWest Bank of Greeley, N.A.
Mortgage No. 2:
Dated: January 7, 1986.
Recorded: February 4, 1986 in book 1101 at
reception No. 2041609.
From: Harold R. Uhrich Co. and Emma Uhrich
Co.
To: The public trustee for the benefit of
IntraWest Bank of Greeley, N.A.
Amount: $550,000.00.
Maturity: On demand.
Lands: T. 6 N. , R. 64 W. , 6th P.M.
Section 30: SE*, except a 40-foot strip
of land off the entire south side of the
SEA and Union Pacific Railroad tract in
the NSE4.
Now Owned By: IntraWest Bank of Greeley, N.A.
Expired Leases:
Expired Lease No. 1 :
Dated: March 18, 1953.
Recorded: August 8, 1953 in book 1364 at page 93.
Lessor: Theador Blehm and Rennelta Blehm.
Lessee: Mel C. Bedinger.
871492
COGSWELL AND WEHRL_
Southmark Acquisitions, Inc.
•
November 2, 1987
Page 7
Primary Term: Ten years.
Lands: T. 6 N. , R. 64 W. , 6th P.M.
Section 29: The south 130 acres of the
SW*
Section 30: SE*
Now Owned By: United States Smelting Refining and
Mining Company.
Expired Lease No. 2:
Dated: April 21 , 1981 .
Recorded: April 23, 1981 in book 934 at reception
No. 1855855.
Lessor: Harold R. Uhrich and Emma Uhrich.
Lessee: Basin Oil Company, Inc.
Primary Term: Five years.
Lands: T. 6 N. , R. 64 W. , 6th P.M.
Section 8: SE*
Section 17: N#Ni
Section 29: SW*
Section 30: SEA
Now Owned By: Basin Oil Company, Inc.
NOTE: A release of Expired Lease No. 2 appears of record in book 960
at reception No. 182064. However, the release is not properly executed. See
Requirement No. 4 below.
•
Liens:
State of Colorado Lien:
Dated: February 9, 1983.
Recorded: February 22, 1983 in book 989 at
reception No. 1918132.
Lienor: State of Colorado, Department of Labor
and Employment.
8714974
COGSWELL AND WEHRLE
Southmark Acquisitions, Inc.
November 2, 1987
Page 8
Lienee: Theador Blehm, individually and d/b/a
Blehm Enterprises.
Amount: $4,949.48.
Judgment Lien:
Dated: December 14, 1983.
Recorded: March 4, 1986.
Lienor: CDS Electric Co.
Lienee: Theador Blehm, Sandra Lee Blehm and
Blehm Land & Cattle Co.
Amount: $154,944.76, per judgment entered in 82-
CV-281 , District Court, Weld County.
•
Federal Tax Lien No. 1 :
Dated: Undated.
Recorded: April 23, 1985 in book 1066 at reception
No. 2006797.
Lienor: United States.
Lienee: Theador Blehm and Sandra Lee Blehm,
d/b/a Mad Russian.
Amount: $27,245.15.
Federal Tax Lien No. 2:
Dated: Undated.
Recorded: April 23, 1985 in book 1066 at reception
No. 2006798.
Lienor: United States.
Lienee: Theador Blehm and Sandra Lee Blehm,
d/b/a Mad Russian.
Amount: $1 ,112. 12.
871492
COGSWELL AND WEHRL.
Southmark Acquisitions, Inc.
November 2, 1987
Page 9
EXCEPTIONS
Data Examined: This opinion is subject to and conditioned upon the
accuracy and completeness of the title data examined.
No Opinion: We can express no opinion as to the following: railroad
and/or other rights-of-way or claims not reflected by the data examined, the
existence of which may be determined by a physical inspection of the lands;
possessory rights and discrepancies of survey or location which might be
reflected by a resurvey or by a physical inspection of the lands; zoning or
other land use controls; pending litigation not reflected by a recorded notice
of lis pendens; matters of fact not disclosed of record which vary from
statutorily permitted presumptions of fact or statutorily created prima facie
evidence of facts; matters within the scope of exceptions to abstract
coverage; liens relating to federal, state and local taxation; and mechanic's
liens, judgment liens or other statutory liens not reflected by the data
examined.
Right to Rely: This opinion is rendered only for the reliance of the
addressee and no other person may rely upon it without our express written
consent. We accept no responsibility or liability regarding this opinion to
anyone other than the addressee in the absence of our express written
consent.
COMMENTS
Comment No. 1 . The oil and gas leases covering the subject lands,
referred to herein as the subject leases, are tabulated on Exhibits A through
C attached hereto.
Comment No. 2. Certificates of merger and amendment of articles of
incorporation, recorded February 6, 1984 at reception No. 1955363, indicate
that Weeks Energy Minerals Corporation was merged into Energy Minerals
Corporation, the surviving corporation.
Comment No. 3. Leases B and C are paid-up leases and no delay
rentals are payable thereon.
Comment No. 4. Tract 1 comprises 3% and Tract 2 comprises 97% of the
drillsite spacing unit comprised of the SSE* of the subject Section 30.
871492
COGSWELL AND WEHRL
Southmark Acquisitions, Inc.
November 2, 1987
Page 10 - -
Comment No. 5. All or portions of the subject lands are included within
the Northern Colorado Water Conservancy District, the West Greeley Soil
Conservation District, the Galeton Fire Protection District, and the North
Weld County Water District, and may be subject to lien rights associated with
inclusion within those districts.
REQUIREMENTS
Requirement No. 1 : Rachel H. Foote owned the subject lands at one
time. No conveyance from Rachel H. Foote appears in the county records; a
warranty deed dated June 1, 1903, recorded in book 211 at page 393 from
2 William Foote "sole devisee under the last will and testament of Rachel H. / �
• Foote, deceased", conveys the subject lands to David Bell, predecessor in �G
interest to your lessors. No probate proceedings for Rachel H. Foote appear
in the Weld County courts.
While it is preferable to obtain a decree of final settlement or
distribution entered in estate proceedings for Rachel H. Foote, we note that
the subject deed has been of record for more than 83 years, and we find '
nothing in the title data examined indicating any claim adverse to William
Foote and his successors in interest. Under these circumstances, but
depending upon the results of your investigation with respect to possession of
the subject lands, you may wish to rely, on a business risk basis, upon
Colo. Rev. Stat. (1973) §38-35-107 which provides that recitals contained in
deeds which have been of record for a period of 20 years shall be prima facie
evidence of the facts recited therein.
REQUIREMENT:
(a) You should determine whether the estate of Rachel H. Foote has
been probated in the State of Colorado. If it has been probated, you
should obtain and submit for our examination certified copies of the
probate proceeding adequate to evidence the acquisition of jurisdiction,
payment of estate taxes, and distribution of property. Subsequent to
our examination, you should record the appropriate final decree of
distribution in Weld County, Colorado. If no probate has been
conducted in the State of Colorado, you should determine whether the
estate in question has been probated in another state. Depending upon
the results of your investigation into those facts, you should then
proceed to obtain either an adoption of foreign probate, an ancillary
probate, or a determination of heirship under Colorado probate
statutes, and should thereafter record evidence of the succession of
real title. Further curative measures will be required if the successor
in interest to Rachel H. Foote is determined to be any person other
than William Foote.
871492
COGSWELL AND WEHRL,_
Southmark Acquisitions, Inc.
November 2, 1987
Page 11
(b) As a less desirable alternative, you may elect to rely on a
business risk basis upon Colo. Rev. Stat. (1973) §38-35-107, relying
upon the recital in the above-described deed as prima facie evidence
that William Foote was the sole devisee under the will of Rachel H.
Foote.
vie;uirement No. 2. In book 14 at page 466, there appears a quitclaim
deed dated September 23, 1882, from William Foote Jr. to The Lone Tree Ditch
and Lateral Company, conveying a 26-foot wide strip of land traversing the
E+ of Section 30. We are unable to determine from the title data examined
whether the referenced tract is located in the SzSE* of Section 30. For this
reason, we have not included the subject tract in our tabulation of
ownership, although an investigation should be made to determine whether or
not the strip of land traverses the SASE+. A�, irl�
REQUIREMENT: In connection with the surface inspection called for in �0'
Requirement No. 9 below, you should investigate and determine whether , c :
the Lone Tree Ditch traverses any portion of the lands covered by this ,.J-
opinion. In the event that you determine that any portion of the • i
subject tract lies within the SASE≤, you should so advise us so that we
may revise the ownership portion of this opinion accordingly, and make
any necessary title requirements with regard to the unleased status of
the subject tract.
Requirement No. 3. The interest of Weld County in Tract 1 is a
determinable fee interest, which interest reverts to the tabulated owners of
Tract 2, and their successors in interest, upon cessation of the use of said
lands for road purposes. For the purposes of our tabulation of ownership, _
we have assumed that said lands continue to be used for road purposes, and -1. t
�
thus, title remains vested in Weld County. The interest of Weld County in #( c.
Tract 1 is unleased of record. li
REQUIREMENT: In connection with the surface inspection called for in
Requirement No. 9 below, you should investigate and determine whether
Tract 1 continues to be used for road purposes. If use of said lands
for road purposes has ceased, this requirement may be considered
satisfied. If the contrary fact appears, you should obtain and record
an oil and gas lease covering Tract 1 from Weld County.
Requirement No. 4. We have tabulated two expired oil and gas leases
under "Encumbrances." With regard to Expired Lease No. 2, a release dated
January 29, 1982 appears of record in book 934 at reception No. 1855855. \\o
However, the release is not properly executed as it contains no secretarial 0'
attt station or corporate seal for the lessor, Basin Oil Company, Inc.
YLea f Z J
se � / - /.,'Lta u,. -s.-4- l/4
[.L[.'6 . ^ . - .S in vl ( =hC . i. ,of !ryatc i.. or I Jr,c *ies o! .4..... ",. 0...... 1;s1:,55.4.. b,....---
871492
COGSWELL AND WEHRLE
Southmark Acquisitions, Inc.
November 2, 1987
Page 12
In the absence of production from any of the lands covered by the oil
and gas leases referred to in this requirement, it would appear all have
expired by their own terms. These facts, however, cannot be ascertained
from the materials examined.
REQUIREMENT: If possible, each of the oil and gas leases hereinabove
referred to should be properly released of record. Should you be
unable to obtain releases, then you should investigate whether
production of oil or gas has ever been obtained under the terms of the
leases from any of the lands therein described and, if not, you should
obtain and record an appropriate affidavit of non-development and
non-production duly subscribed and sworn to by a disinterested person
having knowledge of the facts.
Requirement No. 5. The validity of Lease A depends upon whether
2 delay rentals have been timely and properly paid to the date of first
production. Lease A covers additional lands as to which we have made no
title examination. Without examining title to the additional lands, it is not
possible for us to ascertain the proper amount of delay rentals required to be
paid under the terms of Lease A. Whether payment of annual delay rentals in
an amount less than that indicated in the lease, which is the case in
connection with this lease, would be sufficient or whether since execution of
the subject lease the lessor has transferred to third parties all or portions of
the lands therein described, can be determined only by making a complete
title examination as to all lands covered by Lease A.
REQUIREMENT: Until such time as a title examination is made of all
lands described in Lease A, you must satisfy yourselves that the
amount of delay rentals previously paid are sufficient.
Requirement No. 6. An affidavit of lease extension for the subject
leases dated March 14, 1984 appears of record in book 1062 at reception
• No. 2002569.
REQUIREMENT: You should satisfy yourselves that the subject leases
have been maintained to a current date by operations on or production
from the leased lands.
Re u' ement No. 7. Southmark Acquisitions, Inc. owns no interest of
record i the subject leases.
REQUIREMENT: You should record the agreement or assignment
pursuant to which you own or claim a right to earn an interest in the
subject leases.
871492
COGSWELL AND WEHRL
Southmark Acquisitions, Inc.
November 2, 1987
Page 13
R uirement No. 8. The title data examined in connection with this
opini indicates that Weld County, Colorado has adopted land use zoning
re lations which might govern or restrict your operations in connection with
t subject lands.
REQUIREMENT: You should determine the zoning regulations applicable
to the lands under search, together with verification of entitlement to
drill under such zoning regulations. Any zoning regulations in
existence should be strictly complied with.
Requirement No. 9. A title examination of the type conducted for
purposes of this title opinion does not protect against the claims of title of
persons in actual possession of all or any part of the lands under search.
\Z
REQUIREMENT: An independent investigation should be made to
ascertain what parties are in actual physical possession of all or any
portion of the subject lands and to determine by what rights they hold
such possession. The results of such investigation should be prepared
in the form of an appropriate affidavit duly subscribed and sworn to by
a person having knowledge of the facts. As an alternative, you should
satisfy yourself that no one is in actual physical possession of any of
the lands under search other than the owners of those lands and
interests as set forth hereinabove.
Requirement No. 10. This is a division order requirement and need not
be satisfied prior to drilling.
As indicated in the tabulation of ownership, an undivided 1/4 mineral
interest in the subject lands is owned by Ross J. Wabeke, as trustee in
bankruptcy for the estate of Theador Blehm, debtor (United States
Bankruptcy Court for the District of Colorado, Case No. 82-B-04904-M) .
Several judgment and tax liens against the real property interests of
Theador Blehm in Weld County have been recorded in the county records and
are tabulated above under "Encumbrances". All of the liens were recorded
subsequent to Lease B. In the event of production, the rights of the
lienors, if any, to royalties attributable to the subject mineral interest,
following the Blehm bankruptcy, will need to be determined.
REQUIREMENT: In the event of production, the bankruptcy
proceedings for Theador Blehm will need to be examined to determine
the status thereof and the proper manner in which royalties attributable
to the subject mineral interest are payable.
Requirement No. 11 . This is a division order requirement and need not
be satisfied prior to drilling.
871.492
COGSWELL AND WEHRLE
Southmark Acquisitions, Inc.
November 2, 1987
Page 14
Janice Fisher and L. June Lehan succeeded to the undivided 1/4 mineral
interest of Rennelta Blehm in the subject lands by virtue of a personal
representative's deed of distribution dated May 13, 1987, recorded in book
1167 at reception No. 2111610. The deed indicates that Rennelta Blehm died
January 14, 1987. No evidence of the payment of federal estate taxes nor
release of the federal estate tax lien appear in the county records.
REQUIREMENT: In the event of production, you should obtain and
submit for examination a release of the federal estate lien against the
estate of Rennelta Blehm, an estate tax closing letter or evidence that
estate taxes are not payable.
Requirement No. 12. This is a division order requirement and need not
be satisfied prior to drilling.
The undivided mineral interests of Harold R. Uhrich Co. and Emma
Uhrich Co. are encumbered by Mortgage Nos. 1 and 2 which are subsequent
to Lease A.
REQUIREMENT: In the event of production, you should pay royalties
attributable to the subject mineral interests only in accordance with the
written instructions of both the mortgagors and mortgagees.
Very truly yours,
CO ELL AND WEHRLE
11
Ja N. Harris
JNH:pif
871492
COGSWELL AND WEHRLE
EXHIBIT A
TABULATION OF LEASE A
Form: Producers 88.
Dated: November 23, 1981 .
Recorded: March 2, 1982 in book 962 at reception
No. 1884446.
Lessor: Harold R. Uhrich Co. , a partnership and
Emma Uhrich Co. , a partnership, as
tenants in common.
Lessee: Energy Minerals Corporation.
Land Description: T. 6 N. , R. 64 W. , 6th P.M.
Section 8: SE&
Section 29: South 50 acres of the WSW*,
SE'aSW'a, SW*SW*
Section 30: SE*
Containing 450.00 acres, more or less.
Term: Five years and thereafter as long as "oil
and gas" is produced from said land or
lessee is engaged in drilling or reworking
operations on said land.
Royalty: 1/8th on the basis set forth in the lease.
Delay Rentals: $450.00 per annum.
Depository: First of Greeley Bank, Greeley, Colorado.
Pooling Clause: Yes.
Shut-In Gas Clause: Yes, in an amount equal to delay rentals.
Entireties Clause: No.
Special Provisions: None.
ASSIGNMENTS OF WORKING INTEREST
None.
ASSIGNMENTS OF OVERRIDING ROYALTY INTEREST
None.
871492
COGSWELL AND WEHRL
EXHIBIT B
TABULATION OF LEASE B
Form: Illegible.
Dated: December 31 , 1981 .
Recorded: January 25, 1982 in book 959 at reception
No. 1880857.
Lessor: Theador Blehm, a/k/a Theadore Blehm, a
married man dealing with his sole and
separate property.
Lessee: Energy Minerals Corporation.
Land Description: T. 6 N. , R. 64 W. , 6th P.M.
Section 29: South 50 acres of the N}SW*,
SE*SW4, SW*SW*a
Section 30: SE+
Containing 290.00 acres, more or less.
Term: Three years and as long thereafter as oil
or gas of whatsoever nature or kind is
produced from said leased premises or on
acreage pooled therewith, or drilling
operations are continued as provided in
the lease.
Royalty: 1/8th on the basis set forth in the lease.
Delay Rentals: None, this is a paid-up lease.
Depository: None, this is a paid-up lease.
Pooling Clause: Yes.
Shut-In Gas Clause: Yes, in an amount equal to $1 .00 per
year per net royalty acre retained under
the lease.
Entireties Clause: No.
Special Provisions: None.
8?i49z
COGSWELL AND WEHRL
ASSIGNMENTS OF WORKING INTEREST
None.
ASSIGNMENTS OF OVERRIDING ROYALTY INTEREST
None.
871492
COGSWELL AND WEHRLt.
EXHIBIT C
TABULATION OF LEASE C _
Form: Producers 88 PAID UP
Rev. 1-82, No. 3.
Dated: November 20, 1984.
Recorded: November 21 , 1984 in book 1050 at
reception No. 1989508.
Lessor: Rennelta Blehm, a single woman.
Lessee: Weeks Energy Minerals Corporation.
Land Description: T. 6 N. , R. 64 W. , 6th P.M.
Section 29: South 50 acres of the N₹SW*r,
SSW*
Section 30: SE+
Containing 290.00 acres, more or less.
Term: One year and as long thereafter as oil or
gas of whatsoever nature or kind is
produced from said leased premises or on
acreage pooled therewith, or drilling
operations are continued as provided in
the lease.
Royalty: 1/8th on the basis set forth in the lease.
Delay Rentals: None, this is a paid-up lease.
Depository: None, this is a paid-up lease.
Pooling Clause: Yes.
Shut-In Gas Clause: Yes, in an amount equal to $1 .00 per
year per net royalty acre retained under
the lease.
Entireties Clause: No.
Special Provisions: None.
971492
COGSWELL AND WEHRLL
ASSIGNMENTS OF WORKING INTEREST
None.
ASSIGNMENTS OF OVERRIDING ROYALTY INTEREST
None.
8711:92
Hello