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HomeMy WebLinkAbout920827.tiff M23O2013 RESOLUTION RE: AUTHORIZATION OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY OWNED BY WELD COUNTY, COLORADO, LOCATED IN Si SECTION 34, TOWNSHIP 5 NORTH, RANGE 61 WEST 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, Weld County, Colorado, is the owner of vast acres of mineral lands located in Weld County, Colorado, and WHEREAS, a portion of said mineral acres not currently leased was put up for bid to lease, and WHEREAS, Lomita Operating Company, 310 East Colorado Street, Suite 200, Glendale, California 91205, submitted the high bid to lease 320 net mineral acres, more or less, described to-wit: Si Section 34, Township 5 North, Range 61 West of the 6th P.M. , Weld County, Colorado WHEREAS, Weld County desires to accept the high bid offer submitted by Lomita Operating Company to lease the above described mineral acreage for $20.00 per net mineral acre, for a total sum of $6,400.00 together with a rental fee of ONE DOLLAR ($1.00) per net mineral acre, which lease is to run for a period of three (3) years, commencing August 26, 1992, and ending at 12:00 noon on August 26, 1995, unless otherwise held, as stated 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 Lomita Operating Company, 310 East Colorado Street, Suite 200, Glendale, California 91205, be, and hereby is, accepted for a period of three (3) years with the total sum being as above listed. B 1349 REC 02302013 09/01/92 12 :36 $0 . 00 1/010 F 1465 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 920827 , /T/lai ' QUI:O0 K /9 ; 'The i°f I *'9 OIL AND GAS LEASE - LOMITA OPERATING COMPANY (S34, T5N, R61W) PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 26th day of August, A.D. , 1992. BOARD OF COUNTY COMMISSIONERS ATTEST: WELD COUNTY, COLORADO Weld County Clerk to thh Board Ge ge Kenn dy, C airman , �£� ,t.70 / 7",BY: iA_;_/97-;7 a Deputy Clerk to the Board j Constance L. Harbert, Pro-Tem APPROVED AS 0 FORM: C. W. Kir <7`— County Attorney Gor . a W. _. ebste B 1349 REC 02302013 09/01/92 12 :36 $0.00 2/010 F 1466 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 920827 Parcel No. 9 WELD COUNTY OIL AND GAS LEASE Containing 320 acres, more or less: Containing 320 met mineral acres, mot. or leas: T^_S LEASE AGREEMENT, dated this c day of 1/21,6 04‘14,11, �j�(� - , 19 , made andentered into by and between WELD COUNTY, COLORADO, a political subdivision of the STAI£ OF COLORADO, acting by and through the BOARD OF COUNTY CO2:LISSICNER5 OF TEE COUNTY OF VELA, for its respective interests, c/o BOARD OF COUNTY CCHLELSSI0NER5, WELD COUNTY CENm7NLAi. CENTER, 915 10TH STREET, GREELEY, CO $0631, hereinafter called Lessor, and: LOMITA OPERATING COMPANY, 310 E. Colorado Street, Suite 200, Glendale, CA 91205 hereinafter called lessee: VITNESSF'1H WEEREAS, said Lessee has applied to Lessor for an oil and gas lease covering the laud beret: described, and has paid a filing fee in the amount of $10.00, plus a bonus consideration o£ $ 20.00 Lessor as an additional consideration for the renting mineral acre, fixed by g 320.00 E/�ramtiag of this lease, and Lease. agrees to pay an amoral rental of computed at the rate of $1.0u , par mineral acre or fraction thereof per year, and the following consideration: VEREAS, all the requirements relative to said application have been duly complied with and said application has been approved and allowed by Lessor; TEEBXPORE, in consideration of the agreements herein, on the part of Lessee to be paid, kept and performed, lessor does lease exclusively to Lessee for the sole and only purpose of drilling for, development of and production of oil sod gas, or either of them, thereon and therefrom with the right to own 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 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 lard for oil and gas, the following described land situated in the County of Veld, State of Colorado, and more particularly described as follows: DESCRIPTION OF LANG SECTION TOWNSHIP RANGE SZ 34 5N 61W TO HAVE AND TO HOLD said land, and all the rights and privileges granted hereunder to Lessee until the hour of twelve o'clock noon on the _ day of oil and gas, or either of than, is produced in • � 19 as primary term, and so long in thereafter as paying quantities from said land or lessee is diligently engaged in boas fide drilling or reworking operations on said land, subject to the terns and conditions herein. Dril14 g 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 n-establishing the same, and provided further that such production is commenced during such primary term or any extension thereof, or while this lease is in force by reason of such drilling or reworking operations or other production. B 1349 REC 02302013 09/01/92 12 :36 $0 .00 3/010 F 1467 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO (Revised $191) 920627 LE-co. 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: 1. REh:AL - If this lease is extended for an additional term as provided for in the EXTENSION paragraph hereof, Lessee shall pay to Lessor the sum of One Dollar (81.00) per acre for the land covered hereby as delayed rental for the term of the extension. Rentals set at the time of established production shall be paid during the remaining life of this lease, annually, in advance, on or before each anniversary date hereof. There shall be no refund of unused rental. 2. ROYALTY - Lessee shall account for any and all substances produced on the leased land and Lessee shall pay to Lessor as royalty, in addition to the rentals provided, but except for products used on the leased land, unavoidably lost or flared on the leased land, with approval of Lessor, the following: A. On oil, 12.52 of the oil produced sod saved from the leased land. ., At the option of Lessor, and with sixty (60) days' notice to Lessee, Lessor may take its 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 not in such case be required to provide free tankage for any such oil for a longer period than one month alter the same is run into tanks. With sixty (60) days' notice to Lessee, Lessor may cease 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 Lessee at the well by the purchaser thereof; and in no event shall the royalties be based upon a market value at the well less than the posted price in the field for such oil, or in the absence of a posted price in the field for such oil, upon a market value at the well less than the prevailing price received by other producers in the field for oil of like grade and gravity at the time such oil is run into pipelines or storage tanks. B. On gas, including cesimghead gas or other gaseous substance, 12.52 of the fair market value at the well or of the price received by Lessee at the well, whichever is greater, of all gas produced and sold from the leased land or utilized off the land by Lessee. A copy of all contracts for sale of gas shall be furnished to Lessor. Where gas is sold under contract that has been approved by Lessor, the fair market value of such gas for deter—trio; the royalties payable hereunder shall be the price at which such gas is sold under such contract. No approval by Lessor of the terms of any such agreement shall operate to make Lessor a party thereto or obligate it thereunder in any way. At the option of Lessor, and with sixty (60) days' notice to Lessee, Lessor may take its royalty in kind. With sixty (60) days' notice to Lessee, Lessor may cease taking gas royalty in kind. C. All costs of marketing the oil and/or gas produced shall be borne by Lessee and such costs shall not directly or indirectly reduce the royalty payments to Lessor. Except that marketing costs for Lessor's in-kind royalty shall be borne by Lessor. D. If Lessor owns a lesser interest in the oil sad 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 sad undivided fee, but no refund of any bonus consideration shall be made by Lessor hereunder. B 1349 REC 02302013 09/01/92 12 :36 $0 .00 4/010 F 1468 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO (Revised 5/91) 2 3x^327 3. RECORDS - Lessee agrees to keep and to have in p ion comolete 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 be retained by Lessee and made available in Colorado to Lessor for a period of not less than five years. 4. MEASUREMENTS - All production 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 Lessor's approval, is provided. S. PAIl:Et7'IS AND REPORTS - All payments and reports due hereunder shall be made on or before the day such payments and reports are due. Nothing in this paragraph shall be construed to extend the expiration of the primary term hereof. Oil royalty payments and supporting documents shall be submitted prior to the last day of the month following each month's sale of production, and gas royalty payments and supporting documents shall be submitted prior to the last day of the second month following each month's sale of production. All payments shall be made by cash, check, certified check, or money order. Payment having restrictions, qualifications, or encumbrances of any kind whatsoever shall not be accepted by Lessor. A penalty for a late payment shall be charged as set forth in the PENALTIES paragraph herein. 6. . PENALTIES - A penalty shall be imposed for, but not limited to late payments, improper payments, operational deficiencies, violation of any covenant of this lease, or false statements made to Lessor. Penalties shall be determined by Lessor unless otherwise provided for by law and may be in the fors of, but not limited to, interest, fees, fines, and/or lease cancellation. A penalty schedule shall be prepared by Lessor and shall become effective itnsediately after public notice. Said schedule may be changed from time to time after public notice. 7. LAW - The terms and conditions of this lease shall be performed and exercised subject to all laws, rules, regulations, orders, local ordinances or resolutions applicable to and binding upon the administration of lands and minerals owned by the County of Veld, and to laws, rules and regulations governing oil sad gas operations in Colorado. Violations shall result in penalties as provided for by law or as set forth in the aforementioned schedule or shall, at the option of Lessor, result it default as provided hereinafter. R. SURRENDER - Lessee may at any time, by paying to Lessor all amounts then due as provided herein, surrender this lease insofar as the same covers all or any portion of the land herein leased and be relieved from further obligations or liability hereunder with respect to the land so surrendered; provided that ho partial surrender or cancellation of this lease shall be for less than contiguous tracts of approximately forty (40) acres or Governmental lot corresponding to a quarter-quarter section; provided further that this'surrender clause and the option herein reserved to Lessee shall cease and become absolutely inoperative immediately and concurrently with the institution of say suit in any court of law by losses, Lessor or any assignee of either to enforce this lease, or any of ins terms expressed or implied. In an 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. B 1349 REC 02302013 09/01/92 12 :36 $0 .00 5/010 F 1469 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO (Revised 5/91) 3 9. ASSIGOCNFS - 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 as 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 and conditions herein. An assignment shall not extend the term of this lease. D. 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 as 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. C. Lessee shall notify Lessor of all assignments of undivided percentage or other interests. Said interests will not be recognised or approved by Lessor, sod the effect of any such assignments will be strictly and only between the parties thereto, and outside the terms of this lease: and no dispute between parties to any such assignment shall operate to relieve Lessee from performance of any 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 sending of all notices rewired by this lease and for the performance of all terms and conditions hereof. D. Although not binding on Lessor, all instroments of every kind and nature whatsoever affecting this lease should be filed with the Lessor. 10. OVERRIDING ROYALTY - Any and all reservations or assignments or overriding royalties shall be subject to approval by Lessor. The total of said overriding royalties shat' not exceed five percent (52), including any overriding royalty previously provided for unless production exceeds a monthly average of fifteen (15) barrels per day or ninety thousand cubic feet of gas par day (90 YCF/D). In the event production drops to this amount or less, any overriding royalties which exceed five percent (52) may be suspended. Lessor's approval of a reservation or assignment of an overriding royalty shall not bind Lessor for payment of said overriding royalty and shall not relieve Lessee of any of its obligations for payment of royalties to Lessor as provided by ROYALTY paragraphs herein. 11. OFFSET YELLS - Lessee agrees to protect the leased land from drainage by offset wells located on adjoining lands not owned by Lessor, when such drainage is not compensated for by counter-drainage. It shall be presumed that the production of oil and gas from offset wells results to drainage from the leased land, unless Lessee demonstrates to Lessor's satisfaction. by engineering, geological, or other data, that production from such offset well does not result in such drainage, or that the drilling of a well or wells on the leased land would not accomplish the purposes of protecting the deposits under the leased land. Lessor's decision as to the existence of such drainage shall be final, and Lessee shall comply with Lessor's order thereon or surrender this lease as to any such undeveloped acreage as designated by Lessor. 12. DEVI:LOME2iT - 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 cc®enaurats with the economic development of the field in which the leased land lies. B 1349 REC 02302013 09/01/92 12 :36 $0 .00 6/010 F 1470 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO (Revised 5/91) 4 13. POOLING CLAUSE - Lessee may at any time or times pool any part or all of said land or lease or any stratum or strata with other lands and 1 , stratum or strata, in the same field so as to constitute a spacing unit to facilitate an orderly or uniform well-spacing pattern or to comply with any order, rule, or regulation of the State or Federal regulatory or conservation agency having jurisdiction. Such pooling 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 ell purposes of this lease as operations or productions from this Lase. 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 - CCtMUNITIZATION - In the event Lessor permits the land herein leased to be included within a c®unitization or unitization agreement, the terms of this lease may be deemed to be modified to conform to such agreement. When only a portion of the land under this lease is committed by an agreement, Lessor may segregate the land and issue a separate lease for each portion not committed tlereunder; the term of such separate lease shall be limited as to the original term of this lease. The terms of the Lase on that portion remaining in the unit shall be deemed to be modified to conform to such agreement. 'Nonproducing Lases shall terminate on the first anniversary data of the lease following the termination date of the unit or pan thereof modifying the lease, but in no event prior to the end of the primary term of the lease or the extension term of the lease. lf. PRODUCTION - Lessee shall, subject to applicable laws, regulations and orders, operate and produce all wells upon the leased land so long as the sane are capable of producing in paying quantities, and shall operate the same so as to produce at a rata commensurate with the rate of production of wells on adjoining lends within the same field and within the limits of good engineering practice, except for such times as there exist neither market nor storage therefor, and except for such limitations on or suspensions of production .. as may be approved in writing by Lessor. Lessee shall be responsible for adequate site security on all producing properties. 16. SUV:-IN WEtS - If Lessee shall complete a well on the leased land productive of gas and Lessee is unable to produce such gas due to a lack of suitable market therefor, Lessor may grant Lessee suspension of his obligations to produce hereunder until a suitable market for such gas can be found, and during any such suspension period, it shall be deemed that gas is being produced hereunder in paying quantities. Except, however, that beginning on the anniversary date next, of the year of an extension of the lease by reason of a shut-in well, Lessee shall pay to Lessor a shut-in royalty equal to $2.00 per acre of the lease per ataum in addition to the annual rental. The y.imum amount of such shut-in royalty payment shall be $240. Each year's shut-in royalty shall be forfeited to lessor except for the shut-in royalty paid for the year during 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 granting of any further extensions shall be at the sole option of Lessor. 17. OPERATIONS - No exploration, drilling or production operation. including permanent installations, shall be within 200 feet of any existing building or other improvement, including water well or reservoir, without the written permission of the owner of said improvements. Lessee shall keep a correct log of each well drilled hereunder. showing by name or description the formations passed through, the depth at which each formation was reached, the member of feet of each size casing set in each well, where set, and the total depth of each well drilled. lessee. within thirty (30) days after the completion or abandonment of any well drilled hereunder, shall file in the office of Lessor a template 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; (Revised 5/91) s B 1349 REC 02302013 09/01/92 12 :36 $0 .00 7/010 F 1471 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO f°TjQ,70z2, 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. 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 lessen or surface owner of the location of each drill site at least two weeks prior to comencing 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 crops, 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 sufficient bond with Lessor, in an amount to be fixed by Lessor, to secure the payment for such damages as may be caused by Lessee's operations on said land and to assure compliance with all the terms and provisions of this lease, the laws of the State of Colorado, and the rules and regulations thereto appertaining. A bond may be held in effect for the life of production of any well. 20. SET^. 1fENT - Lessee shall not remove any machinery, equipment or fixtures placed on said land, other than . drilling equipment, nor draw the casing from any well unless and until all payments and obligations currently due Lessor under the teas 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 expiration hereof, shall automatically become the property of Lessor. 21. OTHER DISCOVERY - Should Lessee discover any valuable products other than oil and gas, on or within the leased land, Lessee shall within seven (7) days report such discovery to Lessor, in which event Lessee and Lessor may negotiate a provision for production of such discovery. 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 surface owner, said permission shall not be unreasonably withheld. If Lssee desires to establish or adjudicate any water right for beneficial use on the leased land, any such adjudication or application shall be in the name of Lessor if lessor is the surface owaar. The acme shall apply to any nont--ibutary water rights established on the leased land which may be put to benefitial use off said land. 23. DEFAULT - Upon failure or default of Lessee to comply with any of the terms and provisions hereof including but not limited to the failure to comply with laws, rules and regulations governing Colorado oil and gas operations. Lessor is hereby authorised upon notice and bearing, as hereinafter provided, to cancel this lease as to all of the leased land so claimed or po by 1 hereunder. In the event of any such default or failure, Lessor shall, before making any such cancellation, send to Lessee by certified mail, to the post office address of said lessee as shown by the records of Lessor, • 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 (Revised 5/91) 6 B 1349 REC 02302013 09/01/92 12 :36 $0 .00 8/010 F 1472 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 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 canceled r' No, 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 tax hereof, or during drilling operations commenced during the primary term hereof, Lessee may asks written application to Lessor for an extension of this lease. The granting of such extension shall be at the sole option of lessor, according to the following conditions: A. No lease term will be extended for more than six (6) months from the original expiration date. B. That the Lessee shall pay to the Lessor the sum of one-third of the original bonus, with a minimum bonus of Ten Dollars ($10.00) per acre. C. The Lessee must pay to the Lessor the sum of One Dollar ($1.00) per acre leased as delayed rental for the term of the extension. D. That the royalty will remain the same. 25. BOLD BAB!'S_,SS - Lessen shall indemnify Lessor against all liability and loss, and against all claims and actions, including the defense of such claims or actions, based upon or arising out of damage or injury, including death, to persons or property caused by or sustained in connection with operations on this leased lath 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 say condemnation proceeding, this lease shall automatically terminate as o₹ the date of taking. The award for such condemnation shall be paid to Lessor, except for any specific award(s) paid to Lessee for severed oil and gas reserves, in which event XXXX.CCXXX of such specific award(s) shall be paid to Lessor in lieu of royalty lost by virtue of the condemnation. Improvements shall be removed by Lessee per terms in the S!1t.t'D-'',T paragraph herein. If only a portion of the leased land is taken by condemnation, Lessor may, at its option, terminate this lease or terminate only that portion of the lease so taken. 27. ERRORS - Every effort is made by Lessor to avoid errors in all procedures including but not limited to sucti,9n listings and lease preparation. Lessor shall not be liable for any inconvenience or loss caused by errors wfi}ch may occur. Lessee shall notify Lessor immediately upon discovery of any errors or discrepancy whatsoever..- 28. ARCHAEOLOGY -- lessee shall not destroy, disturb, mar, collect, remove or alter any prehistoric or historic resources of any kind on Weld County lands as provided by law. These resources include, but are not limited to, all art:ifacts of stone, wood or metal, pictographs, structures, and bones. A discovery of anything of prahtirturin or historic nature shall be reported to Lessor or the State o₹ Colorado Archaeologist immediately. 29. DEFINITIONS - A. 'Cass as used herein shall mean all gases (combustible and noncombustible), including but not limited to all gaseous hydrocarbons, gaseous compounds, carbon dioxide, and helium. B. 'Oil and gas' as used herein shall include all substances produced as by-products therewith, including But not limited to sulfur. (Revised 5/91) 7 B 1349 REC 02302013 09/01/92 12: 36 $0 .00 10/010 F 1474 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO env, C. "Paying quantities" as used herein shall ran and refer to quantities of oil and gas or of either of , them sufficient to pay for the current cost of producing same. I'MI W 30. BEIBS AND ASSIGNS - The benefits and obligations of this lease shall inure to and be binding upon the heirs, r,, H legal representatives, successors or assigns of Lessee; but no sublease or assignment hereof, or of any 'p W ---.1 .n.. interest herein, shall be binding upon Lessor until the stile has been approved by Lessor as explained in the W 1/40 ASSIGHHENTS' paragraph provided. t9 • n 31. HdRRANIT OF TITLE - Lessor does not warrant title to the leased premises, but it shall, upon request, all W ow 0 Lessee access to such abstracts and other title papers as it has in its files. There shall be no obligation .b Z,, N) on Lessor's part to purchase new or supplemental or other title papers nor to do any curative work in Z O Ni connection with title to the subject lands. All abstracts of title, whether new or supplementary, obtained It 0 by Lessee and covering the subject leads shall become the property of and be delivered to Lessor after Lessee N W has completed its title examination anti curative work, subject, however, to the right of Lessee to use such ttl MI abstracts upon request at any tin during the term of the lease. r.n CD H Co • t9 \ ;FITNESS WHEREOF. Lessor has hereunto- signed and caused its name to be signed H O IN ga by tba BOARD OF COUhi4 H 0 CO)Y.ISSIONERS OF THE COUNT! OF WELD, with the seal of the office affixed, and Lessee has signed this agreement, the n Ni day and year first above written. C Ni t9 'a7 BOARD OF COUNT! COMSISSIONERS 7C r N WELD COUNTY, COLORADO a' •• G)Si_-Dr 1W Ch A •t ;.,rr t.. sY _ tii ,0,4,,a4e4;„ o Weld County Clerk to the Board a-72 �._.." �ti/.i..e„---- tai/ • • T'Ci4 -c-c_-.� �// `� [xi O ^ Deputy Clerk to the Board 23//Cif._ , rrl O O ro 0 n r LESSEE: LOMITA OPE TING CQTfI4IY Clifford E. Clement sum or COLORADO ) Secretary a Vice President of $atidb ALL-PURPOSE ACKNOWLEDGMENT IL NO 209 State of California li CAPACITY CLAIMED BY SIGNER County of Los Angeles 1 o INDIVIDUAL(S) ix CORPORATE Secretary a On August 17, 1992, before me, Maudie Mueller, Notary Public OFFICER(S) V.P. of Lands DATE NAME,TITLE OF OFFICER-E.G.,'JANE DOE,NOTARY PUBLIC' TITLE(S) personally appeared Clifford E. Clement o PARTNER(S) ersonall eared o ATTORNEY-IN-FACT NAME(S)OF SIGNER(S) o TRUSTEE(S) I2 personally known to me-OR - 0 proved to me on the basis of satisfactory evidence ❑ SUBSCRIBING WITNESS to be the person(s) whose name(s) is/are _ subscribed to the within instrument and ac- ❑ GUARDIAN/CONSERVATOR MAUUIE MUELLER : knowledged to me that he/she/they executed O OTHER: ti ... the same in his/her/their authorized ��i{� COMM. }It 949434 (� Ir ,� NOTARY PUBLIC-CALIFORNIA N capacity(ies), and that by his/her/their 2 jn- LOS ANGELES COUNTY signature(s) on the instrument the person(s), ]]l� My Comm. Expires Jan_6. 19961 T" . T . . . . . _ _ _ ,� or the entity upon behalf of which the person(s) SIGNER IS REPRESENTING: acted, executed the instrument. NAME OF PERSON(S)OR ENTI VIES) Lomita Operating Company Witness my hand and official seal. 3r ®L.'27 - /G rnr).91ca-tsiGNATuRcirFtQC1-A2-2--4?ejl- ' IP .•T,J n...,,.n f..... Edward J. Cronin 1660 Lincoln Street r--4 303/860-0606 Suite 1412 `` 303/237-5895 Denver, CO 80264 July 10, 1991 It.' JUL 1 2 GRELLtt.GOLD. Clerk to the Board Board of County Commissioners Weld County P.U. Box 758 Greeley, CU 60632 To Whom It Nay Concern: I wish to nominate the following County mineral lands for Oil and Gas leasing at the next Weld County Uil and Gas lease sale: Township 5 North, Range 61 West, 6th P.M. Section 21: NEa Section 28: E%2 Section 34: SZ Please place these lands on the list for your next sale, and keep me posted as to when said sale is to be held. Thank you very much. Sincerely, Edward J. Cronin EJC/dbl Hello