HomeMy WebLinkAbout900722.tiff AR22233485 •
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RESOLUTION
RE: AUTHORIZATION OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY
OWNED BY WELD COUNTY, COLORADO, LOCATED IN SECTION 26,
TOWNSHIP 9 NORTH, RANGE 66 WEST OF THE 6TH P.M. , WELD COUNTY, DV GU
COLORADO o N
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WHEREAS, the Board of County Commissioners of Weld County,
Colorado, pursuant to Colorado statute and the Weld County Home P3O
Rule Charter, is vested with the authority of administering the ►c o
affairs of Weld County, Colorado, and Z N
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WHEREAS, Weld County, Colorado, is the owner of vast acres of m w
mineral lands located in Weld County, Colorado, and O �"
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WHEREAS, a portion of said mineral acres not currently leased tv
was put up for bid to lease, and z
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WHEREAS, Patrick Petroleum Corporation of Michigan, P.O. Box P
747, Jackson, Michigan 49204 , submitted the high bid to lease 40 t„
net mineral acres, more or less, described to-wit: R' ••
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Section 26: NWiSEi , Township 9 North, Range 66 n
West of the 6th P.M. , Weld County, Colorado O
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WHEREAS, Weld County desires to accept the high bid offer
submitted by Patrick Petroleum Corporation of Michigan to lease N o
the above described mineral acreage for $20. 00 per net mineral d
acre, for a total sum of $800 . 00 , together with a rental fee of n
ONE DOLLAR ($1.00) per net mineral acre, which lease is to run for OH
a period of three (3) years, commencing August 8 , 1990, and ending c
at 12: 00 noon on August 8 , 1993 , unless otherwise held, as stated o 0
in the lease agreement which is attached hereto and incorporated
herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County
Commissioners of Weld County, Colorado, that the high bid offer of
Patrick Petroleum Corporation of Michigan, P.O. Box 747, Jackson,
Michigan 49204 , be, and hereby is , accepted for a period of three
(3) years with the total sum being as above listed.
LE/X 1
900722
Page 2
RE: OIL AND GAS LEASE - PATRICK PETROLEUM CORPORATION
The above and foregoing Resolution was , on motion duly made
and seconded, adopted by the following vote on the 8th day of
August, A.D. , 1990. M to
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� BOARD O COUNTY COMMISSIONERS w n>
ATTEST: 5>t WELD NTY, CO RA� rn wU
9 T /(C//^ Xi 0
Weld Cou '_ ... tca, the Board
i(,) , ene R. Brantner, Chairman i-c
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��� d� !: t-i-ai a ge K nne y, Pro-Tem to
�eputy Clerk, he Board to -a
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APPROVED AS TO FORM: Constance L. Harbe t PI
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C.W. Kirb H N
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County Attorney r o
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900722
Parcel N 17
WELD COMM OIL AND GAS LEASH
Containing 40 acres, more or less;
Containing g0 net mineral acres, more or less:
THIS LEASE AGNOMENS, dated this Rrh day of Anguct , 19_231_, made and entered
into by end between WELD COUNTY, COLORADO, a political subdivision of the STATE OF COLORADO, acting by and
through the BOARD OF OODHTY CCIELSSIONERS OF TEE COUNTY OF WELD, for its respective interests, c/o BOARD OF
COUNTY CotIDsnotLERS, WELD COUNTS CENTENNIAL CENTER, 915 LATE STREET, GREELEY, CO $0631, hereinafter called
Lessor, and: ^] btl
PATRICK PETROLEUM CORPORATION OF MICHIGAN, a Michigan corporation o �,
P.O. Box 747 la to
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Jackson, MI 49204 w
hereinafter called Lessee: g by
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WITNESSETE '7 N
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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 $ 20.00 per mineral M
acre, fixed by Lessor as on additional consideration for the granting of this lease, and Lessee agrees to b] tn
pay an annual rental of S 40.00 , computed at the rata of $ 1.00 , per mineral acre or xi
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fraction thereof per year.
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WHEREAS, all the requirements relative to said application have been duly complied with and said z tffj
application has been approved and allowed by Lessor; (Iva
THEREFORE, in consideration of the agreements herein, on the part of Lessee to be paid, kept and ��t90
performed, Lessor does lease exclusively to Lessee for the sole and only purpose o£ drilling for, x
development of and production of oil and gem, or either of them, thereon and therefrom with the right to own via
all oil and gem so produced and sad therefrom and not reserved as royalty by Lessor tinder the terms of mi to
this lease, together with rights-of-way, easements and servitudes for pipelines, telephone and telegraph A
lines, tanks and fixtures for producing and caring for such product, and housing and boarding employees, and O0
any and all rights and privileges necessary for the exploration and operation of said land for oil and gem, 0
the following described land situated in the Canty of Weld, State of Colorado, and more particularly o
described as follows:
So
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DESCRIPTION OF LAND SECTION TOWNSHIP RANCE t-'
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NW'ySE'y 26 9N 66W O\
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TO HAVE AND TO BOLD said land, and all the rights and privileges granted hereunder to Lessee until the O2 c
boar of twelve o'clock noon on the 8th day of August , 1993 as primary tern, and so long
thereafter as oil and gem, or either of them, is produced Tn 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 each 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
900 722
(Rev. 11/66)
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primary ten or any extension thereof, or while Mix lease is in force by reason o£ 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 praises, the parties covenant and agree as follows:
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1. RENTAL - If this lease is extended for an additional term as provided for in the EXTENSION w N
paragraph hereof, Lessee shall during such extended period pay to lessor an annual rental at double the rate w J
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above specified for the land covered hereby. The rental in affeet at the time production is established
shall not be lacreased due to the term of this lease being extended by each production. Rentals sat at the E
tins of established production shall be paid during the remaining life of this lease, anomaly, in advance, ,� n
on or before each anniversary date hereof. Thera shall be no refund of unwed rental. o
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2. BMA= - Lessee shall account for any and all substances produced on the leased land and Lessee z w
shall pay to Lessor as royalty, in addition to the rentals provided, but except for products used on the g
lased land, unavoidably lost or flared on the leased land, with approval of Lessor, the following: C to
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(a) On oil, 1.21.1 of the oil produced and saved from the leased land. tn tn w
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At the option of Lessor, and with sixty (60) days' notice to Lessee, Lessor nay take its Z I:4'
royalty oil in kind, in which went Lessee shall deliver such royalty oil to Lessor on the leased land, n
free of cost or deduction, into the pipelines or storage tanks designated by Lessor, but Lessee shall tri o
not in such cast be required to provide free tankage for any such oil for a longer period than one
month after the sane is run into tanks. With sixty (60) days' notice to Lessee, Lessor may case x N
taking oil royalty in kind. When paid in cash, the royalty shall be calculated upon the fair market e, ..
value of the oil at the well which shall not be deemed to be less than the price actually paid to .b
Lessee at the well by the purchaser thereof; and in no event shall the royalties be based upon a market n
value ac the well less than the posted price in the field for such oil, or in the absence of a posted O
price in the field for such oil, upon a market value at the well less than the prevailing price 6
received by other producers in the field for oil of like grade and gravity et the time such oil is run 4,
into pipelines or storage tanks.
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(b) On gas, including caaingbead gas or other gaseous substance, 1241 of the fair market O
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 utilised off the land by Lessee. A copy of all contracts for 8O a
sale of gas shall be furnished to Lessor. Where gas is sold under contract that has been approved by - c
Lessor, the fair market value of such gas for determining the royalties payable hereunder shall be the n �,
price at which such gas is sold under such contract. No approval by Lessor of the tens of any such O o
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 case taking gas royalty in kind.
(c) All costs of marketing the oil and/or gee produced shall be bone 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 ba 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 stall be
paid to Lessor only in the portion which its interest bars to the whole and undivided fee, but no
refund of any bonus consideration shall be made by Lessor hereunder.
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(Row. 11/S6)
3. RECORDS - Lessee agrees to keep and to have in possession complete and accurate books and records
shoring 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 be retained by Lessee and made available in Colorado to Lessor for a period of not
less than five years.
4. 1RASURnaarrs - All production shall be accurately measured using standards established by the
American Ces Association (ACA) and/or the American Petroleum Institute (API) and all measuring devices shall '*j to
be tamperproof as nearly as possible. 011 royalties due within the terms of this lease shall be calculated o
an actual and accurate measurements within API standards unless a different swans of measurement, subject to w 1.11
Lessor's approval, is provided, w
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S. nammrs 6 REPORTS - All payments and reports due hereunder shall be made on or before the day M
such payments and reports are due. Nothing in this paragraph shall be construed to extend the expiration of K C1
the primary term hereof. p
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7. N
011 royalty payments and supporting documents shall be submitted prior to the last day of the Z to
month following each month's sale of production, and gas royalty payments and supporting documents shall be gj e-g
submitted prior to the last day of the second month foliating each month's sale of production. C 1 un
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All payments shall be made by cash, check, certified check or money order. Payments having y m
restrictions, qualifications, or encumbrances of any Lind whatsoever shall not be accepted by Lessor. A
penalty for a late payment shall be charges as set forth in the PENALTIES paragraph herein, z
6. PENALTIES - A penalty shall be n 0 P ty imposed for, but not limited to late payments, improper payments, h o
operational deficiencies, violation of any covenant of this lease, or false statements made to Lessor. Z
Penalties shall be determined by Lessor unless otherwise provided for by law and may be in the form of, but pc
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not limited to, interest, fees, fines, and/or lease cancellation. A penalty schedule shall be prepared by R' ••
Lessor and shall become effective immediately after public notice. Said schedule may be changed from time Z �
to time after public notice. t+j
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7. LAW - The terms and conditions of this lease shall be performed and exercised subject to all laws, G
rules, regulations, orders, local ordinances or resolutions applicable to and binding upon the K7 v
administration of lands and minerals awned z o
by the County of Weld, and to lava, toles and regulations � o governing oil and gas operations in Colorado. Violations shall result in penalties as provided for by law o
or as set forth in the aforementioned schedule or shall, at the option of Lesser, result in default as r
provided hereinafter. t7
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8. SURRENDER - Lessee nay at any time, by prying to Lessor all amounts then due as provided herein, \o
surrender this lease insofar as the same covers all or any portion of the lend herein leased and be relieved n '-'
from further obligations or liability hereunder with rem O o
pest to the land so surrendered; provided that no
partial surrender or cancellation of this lease shell 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 lasses shall have made full provision for conservation of the leased products
and protection of the surface rights of the leased land.
(Rev. 11/86) Sd'„0722
.
9. ASSIQ!< IS -
(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 (60) acres or Governmental lot corresponding to a
quarter-quarter section for any partial assignment, and for approval of each assignment Lessor shall
make am assignment charts in am amount to be detaxmined by Lessor. Prior to written approval by Lessor
of assignment of this lease, Less (assignor) shall not he relieved of its obligations under the tents
end conditions herein. An assignment shall not ascend to tern of this lease.
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(b) If any assignment of a portion of the land covered hereby shall be approved, a new lease
shall be issued to the assignee covering the assigned land, containing the same terms and conditions ss w N
this lease, and limited as to term as this lease is limited, and the assignor shall be released and +�
discharged from all furtber obliga n tio mad liabilities as to that portion so assigned. ;:t; wq
(c) Lessee shall notify Lessor of all assignments of undivided percentage or other interests. A
Said interests will not be recognised or approved by Lessor, and the effect of any such assignments o
will be strictly and only between the parties thereto, and outside the terms of this lease: and no N
dispute between parties to any such assignment shall operate to relieve Lessee from performance of any Z N
tam or conditions hereof or to postpone the time therefor. Lessor shell at all times be entitled to hi
loot solely to Lessee or his assignee shown on its books as being the sole owner hereof, and for the C g;
sending of all notices required by this lase and for the performance of all tares and conditions Ig
hereof. CA o
040
(d) Although not binding on Lessor, all instruments of every kind and nature whatsoever affecting 2 J
this lease should be Bled with the Lessor.
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10. 09ESSIDIDG IOTAL=! - Any and all reservations or assipmonts or overriding Di o
subject to approval by Lessor. The total of said overriding royalties shell not emceed five per shall ), bus
including any overriding royalty prodausly provided for unless percent e o go
fifteen (15) barrels production exceeds a monthly average of a, ..
per day or ninety thousand cubic feet of gas per day (90 MCP/D). In the event that o
production drops to this amount or less, any overriding royalties shish exesed five percent (5%) may be tq to
suspended. Lessor's approval of a reservation or assignment of an overriding royalty shall oot bind Lessor 0
for payment of said overriding royalty and shall not relieve Lessee of any of its obligations for payment of 6
royalties to Lessor es provided by ROYALTY paragraphs herein. tat'
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11. 01,1302 VMS - Lessee agrees to protect the leased land from drainage by offset wells located on E o
adjoining lands not owned by Lessor, when such drainage 1
is not compensated for by counter-drainage. It M+ o
shall be presumed that the production of oil and gas from offset walls results in drainage from the leased C
land, unless Lessee demonstrates to Lessee's satisfaction, by engineering, prelatical, or other data, that n
production from such offset well does not result in such drainer., 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. el o
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Lessor's decision as to the mistress of such dreine shall be final, and Lessee shall comply with Lessor's O o
order thereon or surrender this lease as to any inch undeveloped acreage as designated by Lessor.
12. DLY1QOPlGIN= - Upon discovery of oil and gas or either of the 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. POOLIMG CLAUSE - Lessee may at any tine or times pool any part or all of said land and lease or
any strata or strata with other lags 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 amply with any order, rule,
or regulation of the Sun or Federal regulatory or conservation agency having jurisdiction. Such pooling
(‘. 0722
Cleo. 11/86)
shalt be accomplished or terminated by filing of record a declaration of pooling, or declaration of
termination of pooling, and by ailing or tendering a copy to Lessor, or to the depository bank. Drilling
or reworking operations upon or production from any part of each spacing unit shall be considered for all
purposes of this lease as operations or productions from this lease. Lasso; 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 - commoNIT anoN - In the event Lessor permits the land herein leased to be included
within a caaunitisation or unitization agreement, the terms of this lease may be deemed to be modified to
by
conform to such agreement. When only a portion of the land under this lease is committed an cement, by
by ag
reement,
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Lessor Rey segregate the land and issue a separate less for each portion not committed thereunder; the tern w n~i of such separate lease shall be limited as to the original tern of this lease. The terms of the lease on it w
that portion remaining in the unit shall be domed to be modified to conform to such agreement.
Nomproducing I shall terminate on the first aniiversary date of the lease following the termination �7
date of the unit or part thereof modifying the lease, but in no event prior to the end of the primary term n
of the lease or the extension term of the lease. o
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12. PRODUCTION - Lessee shall, subject to applicable laws, regulations and orders, operate and produce z rt.
all wells upon the leased land so long as the same are capable of producing in paying quantities, and shall '1 4
operate the same so as to produce at a rate commensurate with the rate of production of wells on adjoining a U1
Leads within the same field and within the limits of good engineering practice, except for such times as t�
there exist neither market nor storage therefor, end except for such limitations on or suspensions of H oro
production as may be approved in writing by Lessor. Lessee shall be responsible for adequate site security to
on all producing properties. N F,
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Id. SBUT-IN WELLS - If Lessee shall complete a well on the leased land productive of gas and Lessee is tA+ p
unable to produce such gas due to a lack of suitable market therefor, Lessor may grant Leases suspension of t;y1
his obligations to produce hereunder until a suitable market for such gas can be found, and during any such x r�
suspension period, it shall be deemed that gas is being produced hereunder in paying quantities. Except, al
'
however, that beginning on the anniversary date next, of the year of an extension of the lease by reason of by
a shut-in well, Lessee shall pay to Lessor a shut-in royalty equal to $2 per acre of the lease per annum in n e
addition to the annual rental. She minimun amount of such shut-in royalty payment shall be $240. Each O
year's shut-in royalty shall be forfeited to Lessor except for the shut-in royalty paid for the year during 'u
which the well begins production. The maximum extension of the lease, due to the existence of a abut-in
well, shall be five years beyond the extension term as described in the EXTENSION paragraph herein. The •
granting of any farther extensions shall be at the sole option of Lessor. E o
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17. OPERATIONS - No exploration, drilling or production operation, including permanent installations, b
stall be within 200 feet of any existing building or other improvement, including water well or reservoir, g v
without the written permission of the owner of said improvements. Lessee stall keep a correct log of each �
well drilled hereunder, showing by name or description the formations passed through, the depth at which n o
each formation was reached, the number of feet of escb size cuing set in each well, where set, and the O o
total depth of each well drilled. Lessee, within thirty (JO) days after the completion or abandonment of
any well drilled hereunder, stall 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 • copy of all drill stem test results, corn 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 Das 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 ars 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) 0
Lessee shall bury pipelines below plow depth. Lessee shall set and cement sufficient surface
using to protect the fresh eater wells of the area.
2E. NOTIFICATION - Lessee shall notify Lessor and the surface leeeee or surface owner of the location
of each drill site at least two weeks prior to commenting 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.
19. BONDS - lessee shall be liable for all damages to the surface of the land, livestock, growing by tz
crops, eater wells, reservoirs, or improvements caused by Lessee's operations on said land. No operations o r
shall be commenced on the land hereinabove described unless and until Lessee shall have filed a good and to t_oj
sufficient bond with Lessor, in an amount to be fixed by Lessor, to secure the payment for such damages es N w
say be caused by Lessee's operations on said land and to assure cospliance with all the terms and provisions
of this lease, the laws of the State of Colorado, and the rules and regulations thereto appertaining. A
nril
bond may bet held in effect for the life of production of any well, k c
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20. SETTLEMENT - L hall not remove any machinery, equipment or fixtures placed on said land, 2• N
other than drilling equipment, nor draw the casing from any well unless and until all payments and w
obligations currently due Lesser under the terse of this lee shall have been paid or satisfied. Any M
machinery, equipaent or fixtures left on this land for a period of sore than six (6) months after the C
expiration hereof, shall automatically became the property of Lessor. CI)
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21. OTHER DISCOVERY - Should lessee discover any valuable products other than oil and gas, on or H N
within the leased land, Lessee shall within seven (7) days report such discovery to Lessor, in which event 2 C
Lessee and Lessor say negotiate a provision for production of such discovery. n ‘43
✓ o
22. WATER - This lease does not grant permission, express or implied, to Lessee for water exploration, tpi
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drilling, or establishing ester wells without the written permission of the surface owner. If lessor is the I"
surface owner, said permission shall not be unreasonably withheld. If Lessee desires to establish or o+ c
adjudicate any water right for beneficial use on the leased land, any such adjudication or application shall pi �p
be in the name of Lessor if Lessor is the surface owner. The same shall apply to any nontributary water n
rights established on the leased land which may be put to beneficial use off said land. O0
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23. DEPAELT - Upon failure or default of Lessee to comply with any of the terms and provisions hereof :11 c
including but not limited to the failure to comply with laws, rules and regulations governing Colorado oil • o
and gas operations, Lessor is hereby authorized upon notice and hearing, as hereinafter provided, to cancel [d o
this lease as to all of the leased land so claimed or possessed by Lessee hereunder. In the event of any t6.
such default or failure, Lessor shall, before making any such cancellation, send to Lessee by certified n
mail, to the post office address of said lessee as shown by the records of lessor, a notice of intention to p op
cancel for such failure or default, specifying the sane, stating that if within thirty (30) days from the ` c
date of mailing said notice, Lessee shall correct such failure or default, no cancellation will be made. If ()c
much failure or default is not corrected within thirty (30) days after the mailing of such notice, and if
hisses 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. IXMISION - If Lessee fails to sake 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 mey 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.
CA (1,..; rp
(Rev. 11/86)
25. SOLD HARMLESS - Lessee shall indemnify Lessor against all liability and loss, and against all
clams and 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 as of the date of taking. She award for such condesnatice shall be paid to Lessor,
except for any specific award(s) paid to lessee for severed oil and gas reserves, in which event o F+
y rnexxXXXX of such specific award(s) shall be paid to Lessor in lieu of royalty lost by virtue of the w N
condemnation. Improvements shall be removed by Lessee per terms in the Stamina Paragraph herein. If w w
only a portion of the leased land is taken by condemnation, Lessor coy, at its option, terminate this lease g
or tattiest@ only that portion of the lease so taken. �+
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27. ERRORS - Every effort is made by Lessor to avoid errors in all procedures including but not o
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limited to auction listings and lease preparation. Lessor shall not be liable for any inconvenience or loss m
caused by errors which may otter. Lessee shall notify Lessor immediately upon discovery of any errors or 2 w
discrepancy whatever.
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26. ARCHAEOLOGY - Lessee shall not destroy, disturb, mar, collect, remove or alter any prehistoric or t;41
historic resources of any kind on Weld County lands as provided by ion. These resources include but are not H
limited to all artifacts of stone, rood or metal, pictographs, structures, and bones. A discovery of tq
anything of prehistoric or historic nature shall be reported to Lessor or the State of Colorado 2 �
Archaeologist immediately.
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29. DEPTHITIONS -
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(a) "Gas" as used herein shall mean all gases (combustible and noncombustible), including but not e, N
limited to all gaseous hydrocarbons, gaseous compounds, carbon dioxide, and helium. py �
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(b) "Oil and gas" as used herein shall include all substances produced as by-products therewith, 0
including but not limited to sulfur, p
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(c) "Paying quantities" as used herein shall mean and refer to quantities of oil and gas or of
either of them sufficient to pay for the current cost of producing same• o• 0
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30. HEIRS AND ASSIGNS - The benefits and obligations of this lease shall inure to and be binding upon t7
the heirs, legal representatives, successors or assigns of Lessee; but no sublease or assignment hereof, or 2
of any interest herein, shall be binding upon Lessor until the same has been approved ty Lessor as explained
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in the ASSIGNMENTS' paragraph provided. O o
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.
9C0777
(Rev. 11/86)
C's
Ili CRESS WHEREOF, lessor has hereunto signed and caused its Wane to be signed by the BOARD OF COUNTY
COlMSSIONERS OF THE COUNTY OF WELD, with the seal of the office affixed, and Lasses has signed this
agreement, the day and year first above written.
BOARD F COUNTY C@lQSSIONERS
RY, COLORADO
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Wel _,
d Coun •;,� " ,E..._., J
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�ATR EILEyU� RPORATION OF MICHIGAN
7
BY I: /\ '�
F, t„e�oti.jLd1,
Charles D. Robinson
Executive Vice President .
STATE OF COLORADO )
) SS.
COUNTY OF WELD ) /
The fnal(pinCinstrunant was acknowledged before me this ?5 day of f--(..-C��a A� s
19 ....'� ` ' 1
MOMS%fitrla��)0fs}aial seal.
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is .�"0„..c.-c, : kb _ g_9V
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No r'y Public
B 1273 REC 02223785 08/17/90 15:09 X0.00 10/010
F 0344 MARY ANN FEOERSTEIN CLERK & RECORDER WELD CO, CO
9C0722
(Rev. 11/86)
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