HomeMy WebLinkAbout850079.tiff RESOLUTION
RE: ACCEPTANCE OF REVISED OIL AND GAS LEASE BETWEEN R.A.
RESOURCES, INC. , CITY OF GREELEY, GREELEY-WELD COUNTY
MUNICIPAL AIRPORT AUTHORITY AND WELD COUNTY, COLORADO, AND
AUTHORIZATION FOR CHAIRMAN TO SIGN SAME
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 , on the 24th day of October, 1984 , the Board of
County Commissioners accepted a lease between R.A. Resources ,
Inc. , City of Greeley, Greeley-Weld County Municipal Airport
Authority and Weld County, Colorado, on parcels located within the
confines of the Greeley-Weld County Airport, and
WHERAS , said Oil and Gas Lease was not acceptable to the
Federal Aviation Agency, and
WHEREAS, the Board has now been presented with a revised Oil
and Gas Lease, acceptable to the Federal Aviation Agency, a copy
of said Lease being attached hereto and incorporated herein by
reference, and
WHEREAS, after review, the Board deems it advisable to accept
the revised Oil and Gas Lease submitted by R.A. Resources , Inc. ,
for the lease of certain mineral interests.
NOW, THEREFORE, BE IT RESOLVED by the Board of County
Commissioners of Weld County, Colorado, that the revised Oil and
Gas Lease submitted by R.A. Resources , Inc. , be , and hereby is
accepted.
BE IT FURTHER RESOLVED by the Board that the Chairman be, and
hereby is , authorized to sign said Lease.
7 850u79
Page 2
RE: OIL AND GAS LEASE - R.A. RESOURCES
The above and foregoing Resolution was , on motion duly made
and seconded, adopted by the following vote on the 11th day of
March, A.D. , 1985 .
BOARD OF COUNTY COMMISSIONERS
ATTEST: !, WELD COUNTY, COLORADO
Weld County Clerk and Recorder ‘ 0,--4\41\134r----
and Clerk to the Board J. cqu Z ine Joon, Chairman
� EXCUSED
BY: //d2y, Gene R. Brantner, Pro-Tem
Deputy Count erk
APPROVED AS TO FORM: C.W.
0 ::;) G r L cy.
County Attorney
ran c Y aguc
AR200a940 B 1068 REC 02008940 05/08/85 16: 16 $24 . 00 1/008
F 1378 MARY ANT 'EUERSTEIN CLERK & RECORDE" WELD CO, CO
PRODUCER'S u•FMCB Pied Up OIL AND GAS LEASE
M.1N4
PAID UP
AGREEM F,NT,made nd enl•redl oas aloe 1st dingo January 19 85by and between
le illy o Greeley , Colorado , A Home Rule Municipal Corporation ,
Greeley/Weld County Municipal Airport Authority . A Body Corporate /4 Politic ,
Weld County . Colorado roll rnment Rody P (1 Box 727 Greale CO 806.12
her naftercelled"Lessor" whether one or more)and R A Resources , Inc . , 1 101 - 29th Street " Road ,
Greeley , Colorado 80631
,hereinafter called"Lessee"`WITN(�E, SETH:
1.Lessor,for and in consideration of the sum of l e n and more DOLLARS($ 1 8 • ""-f ),
in hand paid,of the royalties herein provided,and of the agreements of Lessee herein contained,hereby grants,demises,leases and lets exclusively unto Lessee the
land hereinafter described,for the purpose of investigating,exploring and drilling for,producing,saving,taking,owning,transporting,storing,handling and treating oil
and gas,together with all rights,privileges and easements useful for Lessee's operations hereunder on said land and on lands in the same field,Including but not
limited to the following rights:to lay pipe lines;to build roads;and to construct tanks,pump and power stations,power and communications lines,and other structures
and facilities. The phrase"on and gas",as used In t Weld
ease,shall embrace all hydrocarbons,as well as other substances produced therewith. The said land included
in this lease is situated in the County of d ,Stale of Colorado ,and Is described as follows,to-wit:
Township 5 North , Range 65 West , 6th P .M .
Section 3 : NE''SE% , W'/kNE'/. , SE'/4NE'b , W'/:NE'/.NE'% '
See Exhibit "A" attached hereto and by this reference made a part
hereof .
including all oll end gee underlying lakes,streams,roads,easements NI right -of-way which traverse or adjoin said land;and Including all lands owned or claimed by
Lessor as a part of any tract above described;and containing I 0 U • U LI acres of land,more or less,hereby releasing and waiving
all rights under and by virtue of the homestead exemption laws of this state. This lease shall cover all the intents*in said land now owned by or hereafter vested In Lessor.
For the purpose of calculating any payments based on acreage,Lessee,at Lessee's option,may act as if said land and its constituent parcels contain the acreage above
stated,whether they actually contain more or less. Lessee may inject water,gas or other substances into any zone or stratum underlying said land and not productive of
fresh water.
2.Subject to the other provisions herein contained,this lease shall remain in force for a period of One ( 1
years from the date hereof,
called"primary term",and thereafter so long as oil or gas is produced from said land hereunder,or Lessee is engaged in drilling or reworking operations on said land
hereunder.
3.Royalties to be paid Lessee are:(a)on oil,xnA-Aili},(h44x of that produced and saved from said land,to be delivered at the wells or to the credit of Lessor Into the pipe
line to which the wells may be connected;Lessee may from time to time purchase env royalty oil,paying therefor the market value In the field where produced on the day it
is run 1��`�line or storage tanks;(b)on gas,including casingheed gas or other gaseous substance,pproduced from said land and sold or used,the market value at the
well of eird"AghtI eh)of the gas so sold or used,provided that on gas sold at the well the royalty shall be oleeeOlllf(A)of the amount realized from etch sales;(c on other
substances produced with al or gee,and covered by this lease,o$dazYgMl1K(%)of their value at the well. Where gas from a well capable of producinggasjsoef sale or
ed,
Lessee may pay or tender as royalty the sum a One Dollar($1.00)per acre per year on the acreage then held by Lessee hereunder,such payment orfender to be ined�on-.
or before the anniversary date of this lease next ensuing after the expiration of ninety days(90)alter the date such well is shut in and thereafter 9n dr before,theannivs
rniej
date of this lease during the period such well Is shut in. If such payment is made,it will be considered that gas is being produced within the mea nkr(Attila i&aes4e
tso
may use,free of royalty,al,gas,and water developed from said land by Lessee for all operations hereunder. _
4.This is a PAID-UP LEASE. In consideration of the down cash payment,Lessor agrees that Lessee shall not be obligated,except as cabinet yrW IQp d hewn,to
commence or continue any operations during the primary term. Lessee may at any time or times during or after the primary term surrender thisyass Batman!hi ahy poiipn
of said land and as to any strata or stratum by delivering to Lessor or by filing for record a release or ref ,and be relieved of all obligation itprealter accruing As1g1ke
acreage surrendered.
5.If at any time or times after the primary term or within three(3)months before expiration of the primary term,all operations and all production hereunddr shall cease for
any cause,this lease shall not terminate If Lessee shall commence or resume drilling or reworking operations or the production of oil or gas within three(3)months alter
such cessation.
6.Lessee shall pay for damages caused by Lessee's operations to growing crops,buildings,irrigaiton ditches,feed lots and fences. When required by the surface owner,
Lessee will bury pipe lines below ordinary plow depth when crossing cultivated land. No well shall be drilled within two hundred(200)feet of any residence or barn now on
said land without the consent of the surface owner. shall have the right at any time to remove all Lessee's property and fixtures,including the right to draw and
remove all casing. Lessee shall drill any well which a reasonably prudent operator would drill under the same or similar circumstances to prevent substantial drainage from
said land by wells located on adjoining land not owned by Lessor,when such drainage is not compensated by counter drainage. No default of Lean hereunder with
respect to any well or portion of said land shall Impair Lessee's rights with respect to any other well or portion of said land.
7.The rights of Lessor and Lessee hereunder may be assigned in whole or In part. No change in ownership of Lessor's Interest(by assignment or otherwise)shall be
binding on Lessee until Lessee has been furnished with notice,consisting of certified copies of all recorded instruments or documents and other information necessary to
establish a complete chain of record titre from Lessor,and then only with respect to payments thereafter made. No other kind of notice,whether actual or constructive,
shall be binding on Lessee,and Lessee may continue to make payments precisely as if no change had occurred. No present or future division of Lessor's ownership as to
different portions or parcels of sand land shall operate to enlarge the obligations or diminish the rights of Lessee,and Lessee's operations may Iniconduc7 without regard
to any such division. If all or any part of the Lessee's Interest hereunder shall be assigned,no leasehold owner shall be liable for any act or°Mission aPse/other leasehold
owner.
r , wl
8.Whenever,as a result of any cause beyond Lessee's control(such as fire,flood,windstorm or other Act of God;law,order or regulation of if if g6Vrtn i.otasgency;or
inability to secure men,material or transportation)Lessee is prevented from complying with any obligation of this lease,Lessee shalenot be treble or daAnagas or forfeiture
of this lease and Lessee's obligations shall be suspended so long as such cause persists If by any such cause,all operations and all pror Lµion hereninderre prevented
after the expiration of the primary term,Lessee may at any lime or times and at Lessee's election pay Lessor as royalty(In addition to in/:Wellies based on actual
production)a sum equal to One Dollar($1.00)per acre on the acreage then held by Lessee hereunder,whereupon it shall be considered for all purposes gtlhiilase that oil
or gas is being produced hereunder for a period of three months from the date such payment Is made.
9.Lessee may at any time or times unitize this lease and the lands covered hereby,in whole or in part,or as to any stratum or strata,with other lands and leases In the same
field,so as to constitute a unit or units,whenever,in Lessee's judgement,required to promote or encourage the conservation of natural resources by facilitating an orderly
or uniform well spacing pattern;a cycling, pressuremaintenance,re-pressuring or secondary recovery program;or any cooperative or unit plan of development or
operation epprovep,by the Secretary of the Interior of the United States. The size of any such unit may be increased by Including acreage believed to be productive,end
decreased by.excluding acreage believed to be unproductive,or the owners of which fall or refuse to join the unit,but any increase or decrease In Lessor's royalties
resulting from any sgeb change in any such unit,shall not be retroactive. Any such unit may be established,enlarged,or diminished,and,in the absence of production
therefrom,°ley he abolished anddissolved,by filing for record an Instrument declaring,a copy of which shall be delivered to Lessor. Drilling or reworking operations upon
or production of oll or gaifrom any part of such unit shall be treated and considered,for all purposes of this lease,as such operations upon or such production from this
lease. Lessee shaitallocaltto the pennon of this lease included in any such unite fractional part of all production from any part of such unit,on one of the following bases:
(a)the ratio between the participating acreage in this lease included in such unit and the total of all participating acreage included In such unit;or(b)the ratio between the
quantity of recoverable production underlying the portion of this lease included in such unit and the total of all recoverable production underlying such unit;or(a)any other
basis approved by Slate orfederal authorities having jurisdiction thereof. Upon production from any part of such unit Lessor herein shall be entitled to the royalties In this
lease provided,on the fractional pilot the unit production so allocated to that portion of this lease Included In such unit,and no more.
10.Lessor warrants and lgreealo defend the title to said land. The royalties herein above provided are determined with respect to the entire mineral estate in oil and gas
and n Lessor owns a lesser interest,the royalties to be paid Lessor shall be reduced proportionately. Lessee slits option may purchase or discharge In whole or in part any
lax,mortgage or other lien upon said land,or may redeem the same from any purchaser et any tax sale or adjudication,and may reimburse itself from any royalties accruing
hereunder and shall be abrogated to such lien with the right to enforce same.
13 tc d xa .,d9., u , Uo/6.. _ _ .s
F 1379 MARY ' "'N FEUERSTEIN CLERK 6 h,,C0W ..at Man CO, CO
11.This lease shall be binding upon all who saute It,whether or not may are named In the granting clause...,reof and whether or not all parties named In the granting
clause execute this lease. All the provisions of this lease shall Inure to the benefit of and be binding upon the heirs,executors,administrators,successors and assigns of
Lessor and Lessee.
12 . Notwithstanding contrary provisions contained herein all landowners
royalty shall be based upon twenty-one percent (21 % ) .
13 . Notwithstanding contrary provisions contained herein the Greeley/Weld
County Municipal Airport shall receive all lease bonus payments ,
royalty payments and payments of any kind which may benefit the
Lessor under the terms of this lease .
IN WITNESS WHEREOF,this Instrument is executed as of the date first above written.
LESSOR SION HERE
City of Greeley , Colorado A Home Weld County , Colorado A Government
Rule Municipal l� �✓a Corporation Body
B y : ✓�� Ca " B y :& S
__
Greeley/Weld County Municipal Airport
B�tho✓� A Body Corporate & Politic
Soc.Sec.No.
or Tax I.D.No.
STATE OF aozndo
COUNTY OF 'e/ / es. ACKNOWLEDGMENT FOR INDIVIDUAL
Before me,the undersigh. , N ary Pub ' within nd Icy a tours y and slate,on this" day of g
peso fd"aPlad"ft
tikype slly kpow etidenlical person_who executed the within and foregoing instrument and acknowledged to me that /�C_/
poet!, �ii.a,A,trQJbe free and voluntary act and deed for the uses and purposes therein set forth.
1 ITNEE5 WtgrRECO,G have hereunto set my hand and official seal the day and year lest e written. _
�"a..P.Ue8nL expiry( •//L-/7 Y'6 ,
'Fl�•........••• el• - //.. to blic
/ Address
STATE OF ellf4t4c,/f 40
COUNTY OF 41 /Let 1.ss. ACKNOWLEDGMENT FOR INDIVIDUAL
Before me,the undersigned,a Notary Public.within and for said county and state, on this day of g/ L ,19�,
personal appearedr atm ., �Llt41k , (11t•A'A./Mt c-r... 6 jQ
amt' Ce rYI?f.C6 L� J
to me personally khpwn.ie.,,,he identical persoo�who executed the within and foregoing Instrument and acknowledged to me that
executed thetefpe..F C ri.ypf- free and voluntary act and deed for the uses and purposes therein set forth.
IN WITPIEfZ'yWgtrO.J pase'tiereunlo set my hand and official seal the day and year st above written.
My comiirs�JA ce 11. 1 /.7LP --Kt'
• ,jQy sts 1 B2L�4''o1 Lrrov�
i w �V'ri^ t',-r /S /C fL /,r��'�•ci�t Notary Public
.• �s/U �` , ec Address
STATE 0\e,....4•'Is hi/34t, y ;'
COUNTY OF�,"/t1 r ei ��y ss. ACKNOWLEDGMENT FOR CORPORATION
On this �� day of c/1(,C/ / .A.D., 19 Q.SJ,before me,the un4(4 p)gned,a Notary Public
In and for the county and state aforesaid,personally appeared /'//e /G.j7.t i e` %�' .,. /y�
to me personally known to be the identical pe n who signed the name of the maker thereof to the h_ within and foregoing In.strtg5MlaHte-.. �/e ....rata'
EXIMia-nt and acknowledged to me that lb executed the same as Ac: free Rri h ara.aot ae iii d as the
free and voluntary act and deed of said corporation,for the uses and purposes therein set forth. �t(( '„�,
Given under my hand and seal the day and year last above written. f j , .. ,1,.
ndy �'TTpp�1 y,�,�` tr+vJtr C
My commission expires �'��li Iy /`/A f!' '� 0
'/ /'yf. Z N� ry# II
N. ,c O S\`. dress
1/4V•..w e..,..r.`,
B 1068 REC_02008940 05/08/85 16; 16 $24. 00 3/008
F 1380 MA ANN FEUERSTEIN CLERK & R1 RDER WELD CO, CO
EXHIBIT "A"
Attached to and by this reference made a part of that
certain oil and gas lease dated January 1 , 1985 by and between
Weld County, Colorado, A Government Body, The City of Greeley,
Colorado, A Home Rule Municipal Corporation, and Greeley/Weld
County Municipal Airport Authority, A Body Corporate and Politic
as Lessors, and R A Resources, Inc., as Lessee:
Notwithstanding anything to the contrary herein contained, or
contained in said lease, the following additional provisions are
made a part of this lease:
A. The Lessee shall comply with all lawful regulations of
the Colorado State Oil and Gas Conservation Commission, and in
addition thereto shall
1 ) Upon abandonment promptly remove any surface
equipment used in connection with abandoned well.
2 ) Upon abandonment, restore the surface, as near as
practicable, to its original appearance, and
re-establishing vegetation, as near as practicable,
to the same condition as existed just prior to the
drilling of the well.
B. To the maximum extent possible, no oil and gas produced
shall be permitted to escape the confines of the well , the well
head, or transmission lines into the surrounding environment.
C. At no time shall fluids of any kind or type be run into,
stored, or collected in unlined earthen pits. During the period
of drilling, completion, operation, repair, or maintenance of any
well , the operator shall provide watertight pits lined with an
impervious material to contain drilling mud, water, or other
types of liquid or solid waste. Solid and liquid waste shall be
regularly removed from the premises and disposed of in accordance
with law and shall not be permitted to spill outside of the
working area.
D. The premises shall be kept in a clean and sanitary
manner, relatively free from rubbish.
E. In the event of production, the wellhead and all
production equipment located thereon shall be enclosed on all
sides by a chain-link fence at least six (6) feet in height and,
in addition, have not less than three (3) strands of barbed wire
sloping outward at approximately a forty-five (45) degree angle
for eighteen (18 ) inches from the top of the fence. There shall
be no aperture below such fence greater than four ( 4 ) inches.
F. The operator and producer shall make a good faith effort
to control the escape of noxious fumes and in no event shall they
be allowed to become a nuisance to abutting properties.
G. The operator shall post a sign of sufficient size
warning of safety hazards to the public.
H. Subsequent to the commencement of drilling operations,
no operator shall sell , transfer, assign, or convey the drilling
site , equipment , or operations without notifying the
administrative official of such action. Any new operator shall
be bound by the provisions of this lease in the same manner to
the same extent that the original operator was required to
comply.
I. All aparatus located above ground shall be painted in
muted tones to conform with the surrounding area , unless
otherwise required by the FAA.
B 1068 -''EC 02008940 05/08/85 16• ' 6 $24.00 4/008
F 1381 sARY ANN FEUERSTEIN CLERK dECORDER WELD CO, CO
Page 2 of 6
J. After completion of any well under the terms of this
lease, the maximum permissible sound pressure level at the north
boundary of the leased premises shall not exceed 80 db(A) as
defined by 25-12-101 (2 ) , ( 3 ) , CRS, 1973.
K. Lessee shall not conduct any operations on the leased
premises within three hundred ( 300 ) feet of any structure or
dwelling without the express consent of Lessor.
L. This is deemed to be a fully paid up lease and no delay
rental payments shall become due hereunder.
M. When necessary to flare gas , such shall be done into the
reserve pit.
N. Lessee agrees that in the event it should sell , assign
or dispose of all its working interest in this lease, it shall
first advise the Lessor of the name, address, telephone number of
the manager of the assignee and that it will in connection with
any such transaction require that such assignee supply the Lessor
with the evidence of adequate insurance.
O. In the event it is discovered that Lessor owns less than
the entirefee simple estate described herein said Lessor shall
not be obligated to refund any part of the bonus money paid as
consideration for this lease.
P. It is understood by the parties hereto that the leased
premises is located on or near the Greeley/Weld County Airport.
Lessee agrees to comply with all applicable local, county, state
and federal regulations. These include but are not limited to
height limitations upon equipment and colors required for
operation fixtures such as tank batteries. The parties agree
that all of the City of Greeley ordinances relating to oil and
gas drilling shall be applicable to the leased premises.
I. General Commitments
Without the prior written consent of Lessor, Lessee shall
not :
(a ) Conduct any operation or erect any structure or
place any equipment including pumping equipment and storage
facilities which will interfere with the operation of airport
operations.
(b) Conduct any operations including laying pipelines
unless serving well situate on the acreage leased hereunder.
(c) Locate any structure or equipment on the premises
other than those normally utilized in the exploration and
production of oil, gas, or other hydrocarbons. Specifically, no
mining shall occur , no employee houses may be located
permanently, and no refinery operations may be conducted. It is
specifically agreed that Lessor makes no warranty of title and
Lessor shall have no obligation to defend any title to the
described premises.
(d) Notwithstanding contrary provisions contained in the
oil and gas lease, all Landowners Royalty shall be based upon
21%.
(e ) Notwithstanding anything to the contrary herein
contained, drilling operations on or production from a pooled
unit or units established under the rules and regulations of the
Colorado Oil and Gas Conservation Commission shall maintain this
lease in force pursuant to paragraph two (2 ) above, only as to
lands included in such unit or units. As to the remainder of
B 1068 REC 02008940 05/08/85 lu . 16 $24 . 00 5/006
F 1382 MARY NN FEUERSTEIN CLERK & RECC \ER WELD CO, CO
Page 3 of 6
land described in this oil and gas lease which are not included
in the above mentioned unit or units, this lease shall terminate
two ( 2 ) years after the expiration of the primary term of this
lease.
II. Surface Use
Lessee agrees and promises :
(a ) To restore the surface of the land to as near the
original condition as reasonably possible. Included within this
obligation, Lessee shall restore the surface of any abandon well
sites and any roads to a level condition.
(b ) To pay for any and all damages caused by its
operations on said land, including any and all damages to persons
and any and all damages to property including tangible and
intangible real and personal property. Lessee shall hold Lessor
harmless from and against any and all damages to persons or
property that are caused by Lessee' s operation on said land.
(c) To fence all producing wells with a protective fence
at least six feet high and to keep the gate to the enclosed area
locked.
(d) Prior to entering upon the leased premises for
drilling purposes, Lessee shall notify Lessor, or Lessor's agent,
of Lessee's intention to drill or to conduct other operations,
and in the event of a drilling operation, to advise Lessor of the
proposed drill site and the proposed route to be used to the
drill site location, however, no operations shall be conducted
until and unless Lessee obtains Lessor's consent for such site
and route. Lessee shall also obtain the consent of Lessor as to
the location of pipelines and tank batteries .
(e) Prior to actual commencement of drilling operations
for each well on the leased premises, Lessee shall pay to Lessor
the sum of $2,500.00 as minimum payment for damages for drilling
and completing of the specific well. Additional surface damages
with respect to crop damage and damage on land removed from
agricultural production as well as damage to airport facilities
will be negotiated upon completion of drilling operations.
After the well is completed, Lessor and Lessee shall agree upon
the amount of additional damages, if any, other than those stated
above.
It is specifically understood that the amount stated herein shall
not cover any damage from operations after completion of a well.
(f ) It is understood by the parties hereto that the
subject lands are located on or near the Greeley/Weld County
Airport. Lessee agrees to comply with all applicable local ,
county, state and federal regulations.
III . Limitation on Shut-in Gas Clause
(a ) The shut-in gas clause of the Lease shall not extend
the term of the Lease for more than two years beyond the primary
term. This paragraph is independent of any other paragraph
hereof and no payment under the minimum royalty clause nor
provisions hereof regarding holding lease by production for
producing sands or space drilling units shall obviate the
provisions hereof.
B 1068 EEC 02008940 05/08/85 16 : 16 x,/008
F 1383 MA' ANN FEUERSTEIN CLERK & RF RDER WELD CO, CO
Page 4 of 6
(b) If Lessee shall discover gas or oil hereunder on
said land or on land unitized with said land, Lessee shall, after
the primary term of this lease, pay Lessor as shut-in royalty the
sum of One Thousand Five Hundred ($1 ,500 ) dollars per well per
year after production of gas or oil or both has been shut-in for
a cumulative period of 180. days during any year, commencing from
the anniversary date of this lease, in which such well is being
produced, whereupon it shall be considered for all purposes of
this lease that gas , oil , or both are being produced hereunder
from said land for a period of one year, such year to commence
upon the payment of the above described shut-in royalty payment.
However, in no event will the payment of a shut-in royalty extend
the term of the lease more than two ( 2 ) consecutive years from
the date of completion of the well , and in the event gas or oil
is not sold therefrom at the expiration of said two ( 2 ) years,
the Lease shall be conclusively deemed to be canceled and
terminated.
IV. Pooling for Gas
After the Colorado Oil and Gas Conservation Commission
has executed a spacing order of any of the premises leased
hereunder for gas production, Lessee may pool a portion or all of
the leased premises with other lands in the spaced area. Such
pooling shall be limited to the sand or formation affected by the
Colorado Oil and Gas Conservation Commission.
V. ' Information shall be available to Lessor
Lessor shall have access to the drilling well location at
all times and to all records pertaining thereto. Lessor shall
have rights to obtain any and all information pertaining to the
wells including the right to inspect and make copies of any
records relating to the drilling, completion, deepening, plugging
or recompleting of any wells.
VI . Addendum shall Control
The provisions of the Addendum shall supersede the
printed lease form and typed portions thereon and shall control
in the event of conflict therewith.
VII . Tank Batteries
Lessee agrees to locate tank batteries in central
locations with the specific approval of Lessor in meeting the
aviation needs and business judgment of the airport, taking into
account Lessee's judgment in maintaining maximum production,
distance of flow lines and potential freeze-up problem due to
weather conditions. Low profile tanks shall be used at all
batteries.
VIII . Insurance
Lessee shall secure before commencing operations and
shall maintain during operations of each well drilled on the
leased premises the following insurance:
(a) Comprehensive General Liability and Property Damage
Insurance in the amount of $1,000 ,000 combined
single limit;
(b) Statutory Workmens Compensation and Occupational
Disease Disability Insurance;
(c) Employer ' s Liability Insurance in the amount of
$100 , 000 each occurance;
(d) Comprehensive Automobile Liability Insurance
in the amount of $1 , 000 , 000, combined single
limit.
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F 1384 MARY .NN FEUERSTEIN CLERK & RECOhOER WELD CO, CO
Page 5 of 6
IX. Indemnity
Lessee shall hold Lessor harmless for all damage or
injury to any person and/or to any property owned by any person
other than Lessor to the extent that such damage or injury
results from Lessee's operations upon the leased premises.
X. Notices
Any notice, request, demand, statement or payment
provided for in this lease shall be in writing and deemed to be
delivered when given to Lessor's representative and Lessee's
representative as set out below:
Lessor ' s Representative:
•
Lessee' s Representative:
R A Resources, Inc.
P.O. Box 2475
1101 - 29th Street Road
Greeley, CO 80631
Attention: Keith E. Abbott
XI. Federal Aviation Regulation (FAR) Part 77 Imaginary
Surfaces Protection, and Prohibition of Hazardous
Activity
(a) Lessee is prohibited from the erection of structures
or growth of natural objects that would constitute
an obstruction to air navigation as determined under
Subpart C of FAR Part 77 , Objects Affecting
Navigable Airspace; and
(b) Lessee is prohibited from any activity on the land
that would interfere with or be a hazard to the
flight of aircraft over the land or to and from the
airport or interfere with air navigation and
communication facilities serving the airport.
XII. Right of Flight and to Make Noise
"There is hereby reserved to the Lessor, its successors
and assigns, for the use and benefit of the public, a right of
flight and for the passage of aircraft in the airspace above the
surface of the premises herein leased. This public right of
flight shall include the right to cause in said airspace any
noise inherent in the operation of any aircraft used for
navigation or flight through the said airspace or landing at,
taking off from or operation on the Greeley-Weld County Airport."
XIII. Subordination Clause
This lease shall be subordinate to the provisions of any
existing or future agreement between Lessor and the United
States, relative to the operation or maintenance of the airport,
the execution of which has been or may be required as a condition
precedent to the expenditure of Federal funds for the development
of the airport.
B 1068 REC 02008940 05/08/85 16: 16 $24 . 00 8/008
F 1385 MAR kNN FEUERSTEIN CLERK & RE( :DER WELD CO, CO
Page 6 of 6
Signed for identification purposes:
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Greeley/Wel Co my Municipal
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The City %O Gr ey, Colorado
A Home Rule Municipal
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Home Rule Municipal
Government Body
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