HomeMy WebLinkAbout921164.tiff Ag23 .1. 730i2
RESOLUTION
RE : APPROVE REQUEST OF SOCO WATTENBERG CORPORATION TO WAIVE BIDDING PROCEDURE
CONCERNING OIL AND GAS LEASE AND ACCEPT OFFER TO LEASE MINERAL ACRES
WHEREAS , the Board of County Commissioners of Weld County , Colorado ,
pursuant to Colorado statute and the Weld County Home Rule Charter , is vested
with the authority of administering the affairs of Weld County , Colorado , and
WHEREAS , SOCO Wattenberg Corporation , 3939 SOCO Parkway , Evans , Colorado
80620 , has requested that the bidding procedure be waived concerning an Oil and
Gas Lease on the following described mineral acres :
A 30 foot wide strip of land on the south line of the
NW4 , Section 32 , Township 2 North , Range 66 West of the
6th P . M . , Weld County , Colorado
WHEREAS , after review , the Board found that SOCO Wattenberg Coroporation
did show good cause for waiving the bidding procedure on said Oil and Gas Lease ,
and
WHEREAS , SOCO Wattenberg Corporation is offering to lease the above
described mineral acres , containing 1 . 818 mineral acres , more or less , and
WHEREAS , the Board finds that the lease offer from SOCO Wattenberg
Corporation in the amount of TWO HUNDRED AND NO / 100 DOLLARS ( $ 200 . 00 ) , is
acceptable , with the further terms and conditions being as stated in said Oil and
Gas Lease , a copy being attached hereto and incorporated herein by reference .
NOW , THEREFORE , BE IT RESOLVED by the Board of County Commissioners of Weld
County , Colorado , that the request of SOCO Wattenberg Corporation , 3939 SOCO
Parkway , Evans , Colorado 80620 , to waive the bidding procedure on an Oil and Gas
Lease concerning the above described mineral acres , be , and hereby is , approved .
BE IT FURTHER RESOLVED by the Board that the offer of SOCO Wattenberg
Corporation , as hereinabove stated , be , and hereby is , accepted .
1 1524 $ 0 . 00 1 / 011
1366 REC 01317806 01 / 1 1 / 93 :
F 16 CO CO
FEUERSTEIN CLERK & RECORDER WELD
�� 2 MARY ANN
921164
ffi- 0/ 7 LuzspAc0
O
WAIVE BID PROCEDURE - SOCO WATTENBERG CORPORATION
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 14th day of December, A.D. , 1992.
4 el 1 : •? BOARD OF COUNTY COMMISSIONERS
ATTEST: °41it , WELD COUNTY, COLORADO
'2
Weld County Clerk to the Board
Geo e'Kenn y, airman
BY: Ca24-.e /-
Deputy C1 k to the Board onstance LL. Uarbert, Pro-Tem
APPROVED AS TG/FORM: 5
C. W. K'r y
r 7 / i
County Attorney G c n
W. H. We ster
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F 1633 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
921164
WELD COUNTY OIL AND GAS LEASE
Containing 1.818 acres, more or less:
Containing 1.818 net mineral acres, more or less:
THIS LEASE AGREEMENT, dated this 14th day cf December 1992 , made and entered into by and
between WELD COUNTY, COLORADO, a political subdivision of the STATE OF COLORADO, acting by and through the BOARD OF
COUNTY COMMISSIONERS OF THE COUNTY OF WELD, for its respective interests, c/o BOARD OF COUNTY C014IISSIONERS, WELD COUNTY
CENTENNIAL CENTER, 915 10TH STREET, GREELEY, CO 80631, hereinafter called Lessor, and:
SOLL) Wattenbertr Corporation
hereinafter called lessees
WITNESSETH
WHEREAS, said L 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 $ 110.00 per mineral acre, fixed by
Lessor as an additional consideration for the granting of this lease, and Lessee agrees to pay an annual rental of
$ 2.00 , computed at the rate of $ 1.00 , per mineral acre or fraction thereof par year, and the
following considerations
WHEREAS, all the requirements relative to said application have been duly complied with and said application has
been approved and allowed by Lessor;
THEREFORE, 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
and 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 limas, tanks and fixtures for producing and caring for such product,
and housing and boarding employees, and any and all rights and privileges necessary for the exploration and operation
of said land for oil and gas, the following described land situated in the County of Wald, State of Colorado, and more
particularly described as follows:
DESCRIPTION OF LAND SECTION TOWNSHIP RANGE
T2N-R66W, Sec. 32: A 30 foot wide 32 2N
sstrip of_lIFld on the South line 66W
ff NW
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 14thky of December , 19 95 as primary term, and so long thereafter as
oil and gas, or either of them, is produced in paying quantities from said land or L is diligently engaged in bona
fide drilling or reworking operations on said land, subject to the terms and conditions herein. Drilling or reworking
operations shall be deemed to be diligently performed if there is no delay or cessation thereof for a greater period
than sixty consecutive days unless an extension in writing is granted by lessor; provided that such drilling or
reworking operations are commenced during said primary term or any extension thereof or while this lease is in force
by reason of production of oil and gas or either of them, or that such reworking is commenced within sixty days upon
cessation of production for the purpose of re-establishing the same, and provided further that such production is
commenced during such primary term or any extension thereof, or while this lease is in force by reason of such drilling
or reworking operations or other production.
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F 1634 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
(Revised 5/91) 1 3
^';.e .�
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. RENTAL - 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 ($1.00) 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, 12.5% of the oil produced and 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 after 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 easinghead gas or other gaseous substance, 12.5% of the fair market value at the
well or of the price received by Lessee at the well, whichever is greater, of all gas produced and sold
from the leased land or utilized off the land by Lessee. A copy of all contracts for sale of gas shall
be furnished to Lessor. Where gas is sold under contract that has been approved by Lessor, the fair
market value of such gas for determining the royalties payable hereunder shall be the price at which
such gas is sold under such contract. No approval by Lessor of the terms of any such agreement shall
operate to make Lessor a party thereto or obligate it thereunder in any way. At the option of Lessor,
and with sixty (60) days' notice to Lessee, Lessor may take its royalty in kind. With sixty (60) days'
notice to Lessee, Lessor may cease taking gas royalty in kind.
C. All costs of marketing the oil and/or gas produced shall be borne by Lessee and such costs shall not
directly or indirectly reduce the royalty payments to Lessor. Except that marketing costs for Lessor's
in-kind royalty shall be borne by Lessor.
D. If Lessor owns a lesser interest in the oil and gas deposits of the above-described land than the entire
and undivided fee simple estate, then the royalties and rentals herein provided shall be paid to Lessor
only in the portion which its interest bears to the whole and undivided fee, but no refund of any bonus
consideration shall be made by Lessor hereunder.
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(Revised 5/91) 2
3. RECORDS - Lessee agrees to keep and to have in p ion complete and accurate books and records showing
the production and disposition of any and all substances produced on the leased land and to permit Lessor,
at all reasonable hours, to examine the same, or to furnish copies of same to Lessor upon request along with
purchaser's support documentation. Lessor will not be unreasonable with requests. All said books and
records shall 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 (ACA) 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.
5. PAYMENTS 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 form of, but not limited to,
interest, fees, fines, and/or lease cancellation. A penalty schedule shall be prepared by Lessor and shall
become effective immediately after public notice. Said schedule may be changed from time 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 Weld, and to laws, rules and regulations governing oil and gas
operations in Colorado. Violations shall result in penalties as provided for by law or as set forth in the
aforementioned schedule or shall, at the option of Lessor, result in default as provided hereinafter.
8. SURRENDER - Lessee may at any time, by paying to Lessor all amounts then due as provided herein, surrender
this lease insofar as the same covers all or any portion of the land herein leased and be relieved from
further obligations or liability hereunder with respect to the land so surrendered; provided that no partial
surrender or cancellation of this lease shall be for less than contiguous tracts of approximately forty (40)
acres or Governmental lot corresponding to a quarter-quarter section; provided further that this surrender
clause and the option herein reserved to Lessee shall cease and become absolutely inoperative immediately
and concurrently with the institution of any suit in any court of law by Lessee, Lessor or any assignee of
either to enforce this lease, or any of its terms expressed or implied. In no case shall any surrender be
effective until Lessee shall have made full provision for conservation of the leased products and protection
of the surface rights of the leased land.
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F 1636 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
(Revised 5/91) 3 .r:/1 .
9. ASSIGNMENTS -
A. Lessee, with prior written consent of Lessor, shall have the right to assign the entire leasehold
interest of said Lessee in all or part of the land covered hereby, but not less, however, than
contiguous tracts of approximately forty (40) acres or Governmental lot corresponding to a quarter-
quarter section for any partial assignment, and for approval of such assignment Lessor shall make an
assignment charge in an amount to be determined by Lessor. Prior to written approval by Lessor of
assignment of this lease, Lessee (assignor) shall not he relieved of its obligations under the terms
and conditions herein. An assignment shall not extend the term of this lease.
R. 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 recognized or approved by Lessor, and the effect of any such assignments will be
strictly and only between the parties thereto, and outside the terms of this leases 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 required by this lease and for the performance of all terms and conditions hereof.
D. Although not binding on lessor, all instruments 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 shall not exceed five percent (5S), including
any overriding royalty previously provided for unless production exceeds a monthly average of fifteen (15)
barrels par day or ninety thousand cubic feet of gas per day (90 MCF/D). In the event production drops to
this amount or less, any overriding royalties which exceed five percent (5i) 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 WELLS - Lessee agrees to protect the leased land from drainage by offset walls located on adjoining
lands not owned by lessor, when such drainage is not compensated for by counter-drainage. It shall be
presumed that the production of oil and gas from offset wells results in drainage from the leased land,
unless Lessee demonstrates to Lessor's satisfaction, by engineering, geological, or other data, that
production from such offset well does not result in such drainage, or that the drilling of a well or wells
on the leased land would not accomplish the purposes of protecting the deposits under the leased land.
Lessor's decision as to the existence of such drainage shall be final, and Lessee shall comply with Lessor's
order thereon or surrender this lease as to any such undeveloped acreage as designated by Lessor.
12. DEVELOPMENT - Upon discovery of oil and gas or either of them on the leased land, lessee shall proceed with
reasonable diligence to develop said land at a rate and to an extent commensurate with the economic
development of the field in which the leased land lies.
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ul:A s�
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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 all purposes of this
lease as operations or productions from this lease. Lessee shall allocate to this lease the proportionate
share of production which the acreage in this lease included in any such spacing unit bears to the total
acreage in said spacing unit.
14. UNITIZATION - CO MUNITIZATION - In the event Lessor permits the land herein leased to be included within a
communitization or unitization agreement, the terms of this lease may be deemed to be modified to 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 thereunder; the term of such
separate lease shall be limited as to the original term of this lease. The terms of the lease on that
portion remaining in the unit shall be deemed to be modified to conform to such agreement. Nonproducing
leases shall terminate on the first anniversary date of the lease following the termination date of the unit
or part thereof modifying the lease, but in no event prior to the end of the primary term of the lease or
the extension term of the lease.
15. PRODUCTION - Lessee shall, subject to applicable laws, regulations and orders, operate and produce all wells
upon the leased land so long as the same are capable of producing in paying quantities, and shall operate
the same so as to produce at a rate commensurate with the rate of production of wells on adjoining lands
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. SHUT-IN WELLS - 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 annum
in addition to the annual rental. The minimum 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 wall or reservoir, without
the written permission of the owner of said improvements. Lessee shall keep a correct log of each well
drilled hereunder, showing by name or description the formations passed through, the depth at which each
formation was reached, the number of feet of each size casing set in each well, where set, and the total
depth of each well drilled. Lessee, within thirty (30) days after the completion or abandonment of any well
drilled hereunder, shall file in the office of Lessor a complete and correct log of such well, together with
a copy of the electric log and the radioactivity log of the well when such logs, or either of them,
are run;
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F 1638 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
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. 1tTIFICATION - Lessee shall notify Lessor and the surface lessee or surface owner of the location of each
drill site at least two weeks prior to commencing drilling operations thereon. Lessee shall notify Lessor
before commencing to plug and abandon any well by copy of Lessee's request for approval or sundry notice of
intent to plug and abandon.
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. SETI'LEISNF - 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 terms of this lease shall have been paid or satisfied. Any machinery, equipment or
fixtures left on this land for a period of more than six (6) months after the 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 Lessee 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 owner. The same shall apply to any nontributary water rights established
on the leased land which may be put to beneficial 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 hearing, as hereinafter provided, to cancel this
lease as to all of the leased land so claimed or p d 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, a notice of intention to cancel
for such failure or default, specifying the same, stating that if within thirty (30) days from the date of
mailing said notice, L ball correct such failure or default, no cancellation will be made. If such
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failure or default is not corrected within thirty (30) days after the mailing of such notice, and if Lessee
does not request a bearing on such notice within thirty (30) days, this lease will terminate and be canceled
by operation of this paragraph without further action by Lessor, or further notice to Lessee.
24. EXTENSION - If Lessee fails to make discovery of oil and gas, or either of them, in paying quantities during
the primary term hereof, or during drilling operations ccumenced during the primary term hereof, Lessee may
make 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. HOLD HARMLESS - Lessee shall indemnify Lessor against all liability and loss, and against all claims and
actions, including the defense of such claims or actions, based upon or arising out of damage or 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. 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
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 L per terms in the SETTLEMENT 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
auction listings and lease preparation. Lessor shall not be liable for any inconvenience or loss caused by
errors which 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 artifacts of stone, wood or metal, pictographs, structures, and bones. A discovery of anything of
prehistoric or historic nature shall be reported to Lessor or the State of Colorado Archaeologist
immediately.
29. DEFINITIONS -
A. "Gas" as used herein shall mean all gases (combustible and noncombustible), including but not limited
to all gaseous hydrocarbons, gaseous compounds, carbon dioxide, and helium.
B. "Oil and gas" as used herein shall include all substances produced as by-products therewith, including
But not limited to sulfur. r^/: 1.11
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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.
30. HEIRS AND ASSIGNS - The benefits and obligations of this lease shall inure to and be binding upon the heirs,
legal representatives, successors or assigns of Lessee; but no sublease or assignment hereof, or of any
interest herein, shall be binding upon Lessor until the same has been approved by Lessor as explained in the
ASSIGNMENTS' paragraph provided.
31. WARRANTY OF TITLE - Lessor does not warrant title to the leased premises, but it shall, upon request, allow
Lessee access to such abstracts and other title papers as it has in its files. There shall be no obligation
on Lessor's part to purchase new or supplemental or other title papers nor to do any curative work in
connection with title to the subject lands. All abstracts of title, whether new or supplementary, obtained
by Lessee and covering the subject lands shall become the property of and be delivered to Lessor after Lessee
has completed its title examination and curative work, subject, however, to the right of Lessee to use such
abstracts upon request at any time during the term of the lease.
IN WITNESS WHEREOF, Lessor has hereunto signed and caused its name to be signed by the BOARD OF COUNTY
COMMISSIONERS OF THE COUNTY OF WELD, with the seal of the office affixed, and Lessee has signed this agreement, the
day and year first above written.
BOARD OF COUNTY COIMISSIONERS
WELD C , COLORADO
ATTEST: /477140 /&/'(il%(.�ZC/ ale.„,.....,....-._„,„„„„*
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Weld County Clerk to the Board
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Deputy Clerk to the Board 666"'
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LESSEE:
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STATE OF COLORADO ) ®/" �"T opt% "Cr
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COUNTY OF WEIR )
TK f�oregoyyg instrument
was acknowledged before me this A-7 day of kit , 19 le)
'by J-}/'C0.l IN-', m,celif co<CO IL ) >
Witness my hand and official seal.
My Commission Expires: - , .2.. ..:Z
CA
Notary Public �! \
B 1366 REC 02317806 01/11/93 15 :24 $0 . 00 10/011
F 1641 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
(Revised 5/91) 8 1.3, ..-1:-.131
/ 3 +q
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.
30. HEIRS MD ASSIGNS - The benefits and obligations of this lease shall inure to and be binding upon the heirs,
legal representatives, successors or assigns of Lessee; but no sublease or assignment hereof, or of any
interest herein, shall be binding upon Lessor until the same has been approved by Lessor as explained in the
ASSIGNMENTS' paragraph provided.
31. WARRANTY OF TITLE - Lessor does not warrant title to the leased premises, but it shall, upon request, allow
Lessee access to such abstracts and other title papers as it has in its files. There shall be no obligation
on Lessor's part to purchase new or supplemental or other title papers nor to do any curative work in
connection with title to the subject lands. All abstracts of title, whether new or supplementary, obtained
by Lessee and covering the subject lands shall become the property of and be delivered to Lessor after Lessee
has completed its title examination and curative work, subject, however, to the right of lessee to use such
abstracts upon request at any time during the term of the lease.
IN WITNESS WHEREOF, Lessor has hereunto signed and caused its name to be signed by the BOARD OF COUNTY
COMMISSIONERS OF THE COUNTY OF WELD, with the seal of the office affixed, and Lessee has signed this agreement, the
day and year first above written.
BOARD OF COUNTY COMMISSIONERS
// WELD COUNTY, COLORADO
ATTEST: 071I1:U/1 /V-1///,/,
l inr �!
Weld County Clerk to the Board / '�C- �c/'���f.��� pet C7C A.eputy Clerk to the Board /� �`�AY,LESSEE:
e r. -ice -
STATE OF COLORADO ) ®,o t.2_.a_
COUNTY OF WELD ) /C! A!� . ,,,9 (L
The foregoing instrument was acknowledged before me this 777 day of
by .URA) Rio -IAleOcr 1k-) .
Witness my hand and official seal.
My Commission Expires: _ klyCCfr.:7,s3fl E pl.'GSJa:day i ,iJ95
9, .a?
Notary Public/
B 1366 REC 02317806 01/11/93 15 : 24 $0 .00 11/011
F 1642 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
(Revised 5/91) 8
3::x__.151
t‘telp tr, 44,4143' OFFICE OF COUNTY ATTORNEY
PHONE(303)3564000 EXT.4391
P.O. BOX 1948
GREELEY,COLORADO 80632
C.
COLORADO January 8 , 1993
Christina Hunt
33894-A Upper Bear Creek Road
Evergreen, CO 80439
RE: Sight Draft for Oil and Gas Lease for Property in Section 32 ,
Township 2 North, Range 66 West of the 6th P.M. , Weld County,
Colorado
Dear Ms . Hunt:
On or about December 14, 1992 , you submitted a Sight Draft to the
Board of County Commissioners of the County of Weld in the sum of
$200 . 00 to act as a bonus payment for an Oil and Gas Lease for
property located in Section 32 , Township 2 North, Range 66 West of
the 6th P.M. , Weld County, Colorado. This bonus payment was on
behalf of the Snyder Oil Corporation. The Board of County
Commissioners then signed the Oil and Gas Lease on December 14 ,
1992 . A copy of the Lease, the Resolution authorizing the Lease,
and the Sight Draft are enclosed.
Please be advised that the Sight Draft has been rejected for
payment . Therefore, the sum of $200 . 00 is paid in certified funds
to the Board of County Commissioners no later than February 1,
1993 . If the $200 . 00 has not bee paid by that date, the Board will
seek appropriate damages for the breach of the Lease and/or
consider the Lease to be rescinded on the basis of your
misrepresentation.
If you should have any questions regarding this letter, please feel
free to call me at 356-4000, extension 4389 .
Yours truly,
Bruce T. Barker
Assistant Weld County Attorney
BTB/db
Enclosures
pc : Claud Hanes
Carol Harding
32:::134
1,iELD COuuH'TY
SUM
re? L c ( 0 C: 21 Snyder Oil Corporation
lr
3939 SOCO Parkway
CLE,C Evans,Colorado 80620
TO (rir 77,, '
(303)330-2200
' '�December 8 , 1992 (303)442-6025
Board of County Commissioners of the County of WELD
915 10th Street , Greeley, Colorado 80631
RE : Oil and Gas Lease
Township 2 North, Range 66 West, 6th P .M.
Section 3,9i A strip of land on the South line of the NW≤
Containing 1 . 818 Gross and Net Acres , more Jr less
Weld County, Colorado
Gentlemen:
Please find enclosed one original Oil and Gas Lease form
covering the above described acreage , prepared for your notarized
signature( s ) along with a draft in the amount of $200 . 00 as a bonus
payment . Also , a separate check in the amount of $10 . 00 is
included to cover process and handling costs . Snyder Oil
Corporation requests the bid process be waived regarding this 1 . 818
acre tract .
Please return the original with your signature(s ) notarized to
the undersigned . If you have any questions , please feel free to
call the undersigned o at ( 800 ) -8x24-Q1426oands insert
mupager
ch erp#760-8502
or ( 303 ) -670-1059 . Your prompt very
Thank you .
Very truly,
Christina Hunt
33894-A Upper Bear Creek Road
Evergreen, Colorado 80439
921164
Y , t yN� ,:ice j' ti v).C.:4 .3. W, t ,-7-4--,,,,,,,t '4t';l. , :e
Iti ‘,...,;--77.--s-;;.,
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ppI�STINA HUNT STROMBkRG 2851 0,
► � 4r- BILL STROMBERG - , `'
�' 3 `• BEV RG EEN BEAR
80439}� f / -j
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S '. DCAICAC.5
,,, CMS FEDERAL CREDIT UNION 3070
COLORADO SCHOOL OF MINES ///
1020-19TH STREET 18081 t]3-3d1] Ci/ / /
GOLDEN.COLORADO 80401 ( f(.yt,Jam(
47.
y9yt�CH/OIPECT DEPOSIT TRN x0]0]6559 f •
2:414.4..24emint '17
er I: 307087399i: 60 70 266900'0o 28511
a
FMB° No. 102376
DATE December 14, 1992
- - TEN (10) —Days After Sight and Subject to Approval of Title and Management Approval.
This draft is void if not presented for collection before January 1 , 1993
G PAY TO THE ORDER OF Board of County Camlissioners of the County of WELD
H c 915 10th Street , Greeley, CO 80631
__ c- _ TWO HUNDRED AND 00/100 *************** *********t***.%********** DOLLARS X200 .00
V� St, O (VALUE RECEIVED) (WI OUT EX HANGE)
a2240
U PAYABLE BANK ONE,TEXAS. NA.
!„ L .. THROUGH Al IN:DOMESTIC COLLECTIONS �i
p P.O.BOX 910 BY: ,i 15t-rna Ihuit ,(A.'.
OG FORT WORN,TEXAS 76101-0910
zn
Z 3 DESCRIBE PAYMENT: Bonus Payment for Oil & Gas Lease T2N-R86W, Sec. 32: a strip of land on the
south line of the NWa - .
(1.818 gross and net acres)
AFE NO: 4300-1192-0500
PROSPECT:APPel Heirs #32-30 , Weld County, CO TAX LD. NO:
r ; "1 r "--4
oC
SJCCO
S
T"' { `, �G i �� L Snyder Oil Corporation
_ 3939 SOLO Parkway
r,; Evans,Colorado 80620
a - r ) 3000
December 8 , 1992 (303)3 -22
25
Board of County Commissioners of the County of WELD
915 10th Street, Greeley, Colorado 80631
RE: Oil and Gas Lease
Township 2 North, Range 66 West, 6th P.M.
Section 3'� A strip of land on the South line of the NWa
Containing 1 . 818 Gross and Net Acres, more or less
Weld County, Colorado
Gentlemen:
Please find enclosed one original Oil and Gas Lease form
covering the above described acreage, prepared for your notarized
signature( s) along with a draft in the amount of $200 . 00 as a bonus
payment . Also, a separate check in the amount of $10 . 00 is
included to cover process and handling costs . Snyder Oil
Corporation requests the bid process be waived regarding this 1 .818
acre tract.
Please return the original with your signature( s) notarized to
the undersigned. If you have any questions , please feel free to
call the undersigned at (800 ) -824-1426 and insert pager #760-8502
or ( 303 ) -670-1059 . Your prompt attention is very much appreciated.
Thank you.
Very � �
truly,
t 41-
Christina Hunt
33894-A Upper Bear Creek Road
Evergreen, Colorado 80439
921164
I c/)/ 22
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