HomeMy WebLinkAbout921105.tiff ALL-1.3199
RESOLUTION
RE: AUTHORIZATION OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY OWNED BY WELD
COUNTY, COLORADO, LOCATED IN SECTION 12, TOWNSHIP 1 NORTH, RANGE 66 WEST
OF THE 6TH P.M. , WELD COUNTY, COLORADO
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, Transcontinent Oil Company, 621 17th Street, #1201, Denver,
Colorado 80293, submitted the high bid to lease 151 net mineral acres, more or
less, described to-wit:
The SWy except that part east of Speer Canal
Section 12, Township 1 North, Range 66 West
of the 6th P.M. , Weld County, Colorado
WHEREAS, Weld County desires to accept the high bid offer submitted by
Transcontinent Oil Company to lease the above described mineral acreage for
$37.00 per net mineral acre, for a total sum of $5,587.00 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 November 18, 1992, and ending at 12:00 noon
on November 18, 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 Transcontinent Oil Company be, and
hereby is, accepted for a period of three (3) years with the total sum being as
above listed.
B 1361 REC 02313199 12/03/92 16 : 25 $0 .00 1/011
F 0950 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
921105
OIL AND GAS LEASE - TRANSCONTINENT OIL COMPANY
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 18th day of November, A.D. , 1992.
/� D p//'�I/�// BOARD OF COUNTY COMMISSIONERS
ATTEST: " WELD COUNTY, COLORADO
Weld County Clerk to the Board
/� //// eorge Ke edy, Chairman
BY: / b� 4-4 y EXCUSED DATE OF SIGNING (AYE)
D p ty Cler)c` to the BQard-1 Constance L. Harbert, Pro-Tem
APP TO FORM:
C. W. Kir
unty Att'on ey Gordo c
W. H. Webster
B 1361 REC 02313199. 12/03/92 16 : 25 $0 .00 2/011
F 0951 MARY ANN FEUEESTEIN CLERK & RECORDER WELD CO, CO 921105
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AR232556 WELD COMFIT OIL AND CAS LEASE
Containing 151 acres, more or loess
Containing 151 net mineral acres, non or less;
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° u Tau LEASE ACREMENT, dated this 18th day of November , 19 92 . nada and entered into by and
between WEIR CODNTY, COLORADO, ■ political subdivision of the STATE 0! COIDLDD, acting by and through the BOARD OF
' • COUNTT CCIMMSSICIUM8 or TEE COUNTY Or WELD, for its respective interests, c/o BOARD Or COUNTY CONFISSIONERS, WELD COUNTY
Ca CENTENNIAL CENTER. 915 .10TH STIEEP, MILEY, CO 10631, hereinafter called Lessor, ands
o W Transcontinent 041 Crmpsny
° s 621 17th Street. #1201
o a Denver, CO 80293
64 Ca• hereinafter called Lassoes
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• ,.b WEERE6S, said Lessee has applied to Lessor for an oil and gas lease covering head ha* andhas
Ny h4 paid a filing fee in the mount of $10.00, plus a bow -� '.'Yf.3!s consideration of $ S 4Pper'min
eral ral acre, fixed by
a Lessor as an additional consideration for the granting of this lease, and Lessee agrees to pay an annual rental of
el $ 151.00 , computed at the rate of $ 1.00 , per mineral acre or fraction thereof per year, and the
following considerations
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0 C4 WHEREAS, all the requirements relative to said application have been duly complied with end said application has
been approved and allowed by Lessor;
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,--I IRERETORE, in consideration of the agreements herein, on the part of Lessee to be paid, kept and performed, Lessor
• Z 01Z does lease exclusively to Lessee for the sole and only purpose of drilling for, development of end production of oil CV 0
'� end gas, or either of them, thereon and therefrea with the right to own all oil and gas so produced end saved therefrom
and not reserved as royalty by Lessor under the terms of this lease, together with rights-of-ay, easements and
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22 ; servitudes for pipelines, telephone and telegraph lines, tanks and fixtures for producing and caring for such product,
end housing and boarding employees, and any sad all rights and privileges necessary for the exploration and operation
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r` rn of said land for oil end µs, the following described land situated in the County of Weld, State of Colorado, and more
m particularly described as follows;
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DESCRI1TIpt 0? LAND SECTION IUWNSEI1 RANGE
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SW1 except that part east 12 1 66W
of Speer Canal
TO RAVE AND TO RU.D said land, and all the rights and privileges granted hereunder to lessee until the hour of
twelve o'clock noon on the 18thday of November , 19 95 as primary tea, and so long thereafter as
oil and gas, or either of them, is produced in paying quantities from said land or Lessee is 4iliµntly enµµd in bona
fide drilling or reworking operations on said land, subject to the terms end conditions herein. Drilling or reworking
operations shall he 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 iranted by lessor; provided that such drilling or
remarking 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 then, or that such reworking is commenned 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 tea or any extension thereof, or while this lease is in force by reason of such drilling
er reworking operations or other production.
B 1361 REC 02313199 ] 2/03/92 16 : 25 $0 .00 3/011
F 0952 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
(Revised 5/91) 1
92.1105
EXPLORATION - Lessor reserves the right to conduct exploration on the leased land provided such exploration does
.mot interfere with rights panted herein.
In consideration of the praises, the parties covenant and agree as follows,
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1. DENTAL - If this lease is extended for an additional tea as provided for in the 12172ISION paragraph hereof,
c4 O Lessee shall pay to Lessor the sun of One Dollar ($1.00) per acre for the land covered hereby as delayed
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Cl rental for the are of the extension. Rentals set at the time of established production shall be paid during
the rrain.ing life of this lease, annually, in advance, on or before each anniversary date hereof. There
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O 3 shall be no refund of unused rental.
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tR W 2. MALTY - Lessee shall account for any and all substances produced on the leased land and Lessee shall pay
to Lesser as royalty, in addition to the rentals provided, but except for products used on the leased land,
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Wunavoidably lost or flared on the leased ]and, with approval of Lassos, the followings
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.... ,.a A. On oil, 12.52 of the ail produced and saved from the leased land.
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At the option of Lessor, and with sixty (60) days' notice to Lessee, lessor say take its royalty oil
en is kind, in which event Lessee shall deliver such royalty oil to Lessor on the leased lend, free of Cost
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or deduction, into the pipelines or storage tanks designated by Lessor, but Lessee shall not in such
,.i H case be required to provide free sankap for any such oil for a longer period than one month after the
saes is rim into tanks. With sixty (60) days' notice to Lessee, Lessor say cease takteg oil royalty
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4 in kind. When paid is cash, the royalty shall be calculated upon the fair sestet 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
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,I1 W purchaser thereof' and in no event shall the royalties be based upon a market vales at the well less
,may than the posted price in the field for such oil, or in the absence of a posted price in the field for
Neel 2 such oil, upon a market value at the well less than the prevailing price received by other producers
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in the field for oil of like grade end gravity at the time such oil is run into pipelines or storey
tanks.
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D. On gas, including easin{haad gas or other gaseous substance. 12.52 of the fair market value at the
Co well or of the price received by Lessee at the well, whichever is greater, of all gee produced and sold
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4` from the leased land or utilised off the land by Lessee. A copy of all contracts for sale of gas shall
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be furnished to Lessor. Where gas is sold under contract that has been approved by Lessor, the fair
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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 terse of any such agreemant shall
operate to lulu Lessor a party thereto or obligate it thereunder in any way. At the option of Lessor,
and with sixty (60) days' notice to Le Lessor my tale its royalty is kind. With sixty (60) days'
notice to Lessee, Lessor say 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 in in the oil and gas deposits of the above-described land than the entire
end 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.
7361 ?EC 02313799 12/03/92 16 : 25 $0 .00 4/011
F 0953 MARY ANN FFDERSTEIN CLERK & RECORDER WELD CO, CO
(Revised 5/91) 2 921105
S. IEMIDS - Lessee agrees to keep and to have in pa ion complete and accurate bode 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 axasime 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
ao O records shall be retained by Lessee and made available in Colorado to Lessor for a period of not lass than
o 0 five years.
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M V 4. MEASUREMENTS - all production shall be accurately measured using standards established by the American Gas
La Association (AGA) and/or the American htroleua Institute (API) and all measuring devices shall be
o W tamperproof as nearly as possible. Oil royalties due within the terse of this lease shall be calculated on
O 3 actual and accurate measurements within API standards unless a different means of measurement, subject to
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o Clow' Lessor's approval, La provided.
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O S. PAI,DOMS AND RETORTS - all payments and reports due hereunder shall be made on or before the day such
rU payments and reports are due. Nothing in this paragraph shall be construed to extend the aspiration of the
C4 primary tea hereof.
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2 Oil royalty payments and supporting documents shall be submitted prior to the last day of the month following
each mouth's sale of production, and gas royalty payments and supporting
pp ing documents shall be submitted prior
men , to the last day of the second month following each south's sale of production.
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ri W All payments shall be made by cash, check, certified check, or money order. Payment having restrictions,
N qualifications, or encumbrances of any kind whatsoever shall not he accepted by Lessor. A penalty for a late
C. CA payment shall be charged as set forth in the PRRALTIPS paragraph herein.
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ul W A. 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
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M 2 be deterain d by Lessor unless otherwise provided for by lame and may be in the foe of, but not liaised to,
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4 interest, fees, fines, and/or lease cancellation. A penalty schedule shall be prepared by Lessor and shall
>4 become effective immediately after public notice. Said schedule may be changed from time to time after
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£ public notice.
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o N 7. LAW - The seas 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
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lands and minerals owned by the County of Veld, and to laws, roles 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.
S. SURRENDER - Lessee may at any time, by paying to Lessor all amounts then due u 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 end the option herein reserved to Lessee shall cease and become absolutely inoperative iaeediately
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 teas 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.
F. 7367 FEC 02313199 72/03/92 16 : 25 $0 .00 5/011
0954 MARY ANN FEUERSTEIN CLERE & RECORDER WELD CO, CO
(leviaed 5/91) 3
921105
9. ASSIGNS= -
A. Lessee, with prior written consent of lessor, shall have the right to assign the entire leasehold
interest of said lessee in all or pert of the land covered hereby, but not less, however, than
O O activate tractsof approximately forty (40) acres or Covesnmeaul lot corresponding to • geartes-
O U quarter section for any partial assignment, and for approval of such ass
ignment Lessor shall sake an
O assignment charge in an amount to be determined by lessor. Prior to written approval by lessor of
U assignment of this lease, Lessee (assignor) *ball not be relieved of its obligations mender the terns
and conditions herein. An assignment shall not extend the ten 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
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w to the assignee covering the assigned land, containing the sow and
terms and conditions as this lease, d
qx limited as to term as this lease is limited, and the assignor shall be released and discharged frog all
U further obligations and liabilities as to that portion so assigned.
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to CC C. Lessee shall notify Lessor of all assignments of undivided percentage or other interests. Said
•• w interests will not be recognised or approved by Lessor, and the effect of any such assignments will be
,ti x strictly and only between the parties thereto, and outside the tens of this leases and no dispute
between parties
to any such assignment shall operate to relieve Lessee from performance of any tens
Vor 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
--i H of all notices required by this lease and for the performance of all teas and conditions hereof.
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D. Although not binding on Lessor, all instruments of every kind end nature whatsoever affecting this lease
should be filed with the lessor.
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.-+ 10. INERAIDIDC l0TAL1T - Any and all reservations or assignments or overriding royalties shall be subject to
c.i z approval by Lessor. The total of said overriding royalties shall not exceed five percent (52), including
pany overriding royalty previously provided for unless production exceeds a aonthly average of fifteen (15)
U a barrels per day or ninety thousand cubic feet of gas per day (90 MCl/D). In the event production drops to
la this amount or less, any overriding royalties which exceed five percent (52) may be suspended. Lessor's
O M approval of a reservation or assignment of an overriding royalty shall not bind Lessor for payment of said
t` m overriding royalty and shell not relieve Lessee of any of its obligations for payment of royalties to Lessor
,mr o as provided by ROYALTY paragraphs herein.
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11. OFFSET 9LLIS - Lessee agrees to protect the leased land from drainage by offset yells 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 utisfantinn, 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 shell 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 then on the leased land, Lessen shall proceed with
reasonable diligence to develop said land at a nu and to an extent commensurate with the economic
development of the field in which the leased land lies.
B 1361 REC 02313399 12/03/92 16 :25 $0 . 00 6/011
F 0955 NARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
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(faviad 5/91) a
:i,:11O5
sad also a copy of all drill stem teat results, core records and analyses, record of perforations and initial
production tests, if any. If sny of the intonation required by this paragraph is contained in reports
required to be filed with the Oil and Gas Conservation Caission of Colorado, the requirements of this
paragraph for such information may be satisfied by such filing with said Coaiseion, except for copies of
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the reports as are required by the following paragraph, and provided that all such intonation is ineediately
0o U available to Lessor. Any proprietary information so submitted shall not be subject to public inspection
- under Colorado law.
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C4 Lessee shall bury pipelines below plow depth. Lessee shall set and cement sufficient surface casing to
O C j protect the fresh muter wells of the area.
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CD Z U. NOTIFICATION - Lessee shall notify lessor and the surface 1 or surface owner of the location of each
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C drill site at least two weeks prior to caencing drilling operations thereon. Lessee shall notify Lessor
O before @cementing to plug and abandon say well by copy of Lessee's request for approval or sundry notice of
W intent to plug and abandon.
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•• .e 19. BONDS - Lessee shall be liable for all damages to the surface of the land, livestock, growing crops, water
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wells, reservoirs, or improvements caused by Lessee's operations on said land. No operations shall be
tri commenced on the lead hereinabove described unless and until Lessee shall have filed a
W good and sufficient
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Ol U 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,
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ri H the laws of the State of Colorado, and the rules and regulations thereto appertaining. A bond may be held
N in effect for the life of production of any well.
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a20. SETTLEMENT - Lessee shall not ment remove any aechinery, equip or fixtures placed on said land, other than
N W drilling equipment, nor draw the casing from any well unless and until all payments and obligations currently
own
,-w due Lessor under the terms of this lease shall have been paid or satisfied. Any machinery, equipment or
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M• Z fixtures left on this land for a period of more than six (6) months after the expiration hereof, shall
O atatically become the property of Lessor.
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W 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 losses and
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No) Lessor may negotiate a provision for production of such discovery.
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22. ViTEE - This lease does not grant permission, express or implied, to Lessee for rater exploration, drilling,
or establishing utter wells without the written permission of the surface owner. If Lessor is the surface
• owner, maid permission shall not be onressorsbly withheld. If Lessee desires to establish or adjudicate any
enter right for beneficial use on the leased land, any such adjudication or application shall be in the neme
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
bat not United 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 w claimed or possessed 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 froe the date of
mailing said notice, Lessee shall correct such failure or default, so cancellation will be made. If such
(Revised 3191) _ 6 921105
t: 1361 FEC 02313799 12/03/92 ] 6 : 25 $0 .00 8/011
F 0957 NARY ANN FFERCTEIN CLERK & RECORDER WELD CO, CO
13. MUM CLAUSE - Lessee say at any time or times pool any part or all of said land or lease or any stratus
or strata with other lands and leases, stratus or strata, in the same field so as to constitute a spacing
unit to facilitate an orderly or unifom 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 shell
be accomplished or terminated by filing of record a declaration of pooling, or declaration of termination
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CD U of pooling, and by sailing or tendering a copy to Lessor, or to the depository bank. Drilling or reworking
O operations upon or production from any part of such spacing unit shall be considered for all purposes of this
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10 0 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.
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14. an 2 ua7ION - O 2SINITILSIUl1 - In the event Lessor ?snits the land herein leased to be included within a
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u4 W eommitiastfon or unitization agreement, the tams of this lease may be deemedto be modified to conform
to such agreement. When only a portion of the lead under this lease is committed by an agreement, Lessor
O U may segregate the land and issue a separate lease for each portion not committed citted thereunder( the term of such
separate lease shall be limited as to the original ten of this lease. The tern of the lease on that
VD c a portion remaining in the unit shall be deemed to be modified to conform to such agreement. Nonproducing
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v) leases shall terminate on the first anniversary date of the lease following the termination dew of the unit
or part thereof modifying the lease, but in no event prior to the end of the primer) tam of the lease or
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the extension term of the lease.
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H 2 15. PRODUCTION - Lessee shall, subject to applicable laws, regulations an orders, operate and produce all wile
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upon the leased land so long as the sine are capable of producing in paying quantities, and shall operate
No ril the same so as to produce at a rata commensurate with the rate of production of ells on adjoining lands
06 within the same field and within the limits of good engineering practice, except for such times as there
• P exist neither sarket nor storage therefor, and except for each lisitations on or suspensions of production
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in W u may be approved in writing by Lessor. Lessee shall be responsible for adequate site security on all
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16. SHUT-Ill WILLS - If Lessee shall complete a well on the leased land productive of gas and Lessee is suable
U C6 to produce such gas due tog lack of suitable market therefor, Lessor say grant Lessee suspension of his
Ode obligations to produce hereunder until • suitable market for such gas can be found, and during any such
o in suspension period, it shall be deemed that gas is being produced hereunder in paying quantities. Except.
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el rn however, that beginning on the anniversary date next, of the year of an extension of the lease by reason of
rI o a shot-in ell, Lessee shall pay to Lessor a shut-in royalty equal to $2.00 per acre of the lease per annum
- fA Gas in addition to the annual rental. The Siam 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 annum extension of the lease, due to the existence of a shut-in
yell, shall be five years beyond the extension tem as described in the MESSICK paragraph herein. The
granting of any farther extensions shall be at the sole option of lessor.
17. OPERATIONS - No exploration, drilling or production operation, including permanent installations, shell 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 yell
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 sin casing set in each well, where set, and the total
depth of each well drilled. Lessee, within thirty (30) days after the completion or abandoneent of any well
drilled hereunder, shall file in the office of Lessor a complete and correct log of such ell, together with
a copy of the electric log and the radioactivity log of the well when such logs, or either of that, are run;
(Revised 5/91) 5 921.1.1)5
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F 0956 NARY ANN FEUERSTE:7N CLERK & RECORDER WELD CO, CO
failure or default is not corrected within thirty (30) days after the selling of such notice, and if Lessee
does not request a bearing on such notice within thirty (30) days. this lasso will terminate and be canceled
by operation of this paragraph without further action by Lessor, or further notice to lasses.
CO O 24. EXTENSION - If Lases failsto make discovery of oil and gas, or either of them, in paying quantities during
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CD the primary tars hereof, or during drilling operations commenced during the primary tea hereof. Lases nay
N• O make written application to LASSO! for an extension of this lease. The granting of such extension shall be
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U at the sole option of Lessor, according to the following conditions:
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O W A. No lease sea will be extended for more than six (6) months from the original expiration date.
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CD▪ iZ D. That the Lessee la mu
shall pay to the Lessor the sum of one-third of the original bonus, with a minim bonus
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of Ten Dollars ($10.00) per acre.
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lU C. The Lessee must pay to the Lessor the sum of One Dollar ($1.00) per acre leased as delayed rental for
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cr the term of the extension.
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• x D. That the royalty will r_nit the sass.
M U 25. BDiD HARMLESS - lasses 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,
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r13 including death, to persons or property caused by or sustained in connection with operations on this leased
N La land or by conditions created thereby, or based upon say violation of any statute, ordinance, or regulation.
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�o D 26. CONDEMNATION - If the leased land shall be taken in any condemnation proceeding, this lease shall
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in h, automatically terminate as of the date of taking. The award for such condemnation shall be paid to Lessor,
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except for any specific awards) paid to Lessee for severed oil and gas reserves, in which event
NXXXXXXXXXX of such specific award(s) shall be paid to LIMOS in lion of royalty lost by virtue of the
O condemnation. Improvements shall be removed by Lessee per terns in the simmer paragraph herein. If only
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� a portion of the leased land is taken by condemnation, Lessor may, at its opeion, terminate this lease or
py Z terminate only that portion of the lease so taken.
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r` 27. ERRORS - Every effort is made by Lessor to avoid errors in all procedures including but not limited to
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▪ O suction listings and lease preparation. Lessor shall not be liable for any inconvenience or loss caused by
ixl k• errors which may occur. Lessee shall notify Lessor immediately upon discovery of any errors or discrepancy
whatsoever.
2$. ARCHAEOLOGY - Lessee shall not destroy, disturb, mar, collets, remove or alter any prehistoric or historic
resources of en kind on Vold County lands as provided by law. These resources include, but are not liaised
to, all artifacts of stove, wood or metal, pictographs, structures, end 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 mesa all gases (combustible and noncombustible), including but not limited
to all gaseous hydrocarbons, gaseous compounds, carbon dioxide, and helium.
D. "Oil and gas" as used herein shall include all substances produced as by-products therewith, including
But not limited to sulfur.
921195
(Revised 5/91) 7
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i36] REC 02313199 12/03/92 16 : `25
F 0956 MARY ANN EEi'E'R87'EIN CIERY & RECORDER WELD CO, CO
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,
W legal representatives, successors or assigns of Lessee; but no sublease or assignment hereof, or of any
Cs U U
O interest herein, shall be binding upon lessor until the same has been approved by Lessor as explained is the
W 0 ASSIGNMENTS' paragraph provided.
U
L1 31. WARRANTY OF TITLE - Lessor does not warrant title to the leased premises, but it shall, upon request, allow
O W Lessee access to such abstracts and other title papers as it has in its files. There shall be no obligation
CD
on Lessor's part to purchase new or supplemental or other title papers nor to do any curative work in
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• W connection with title to the subject lands. All abstracts of title, whether new or supplementary, obtained
Pd by Lessee and covering the subject lands shall become the property of and be delivered to Lessor after Lessee
O has completed its title examination and curative work, subject, however, to the right of Lessee to use such
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abstracts upon request at any time during the term of the lease.
VD C4
•
�• (21
IN WITNESS WHEREOF, Lessor has hereunto signed and caused its name to be signed by the BOARD OF COUNTY
ut
COMMISSIONERS OF THE COUNTY OF WELD, with the seal of the office affixed, and Lessee has signed this agreement, the
• D!i
W day and year first above written.
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Z BOARD OF COUNTY COIMISSIONERS
H WELD C COLORADO
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Lc) W QL'2 Weld County ri.to the Board
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O Deputy Clerk to the Ward �f n , -i•�
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STATE OF CRLOHADQp
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nstrumeat vas acknowledged before me this IQ � day of
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Witneis wy%ant ind, f4icia1 seal.My COmmiasiOnExp res: ,.Q' — Q— 9 c7/
Notary Public
F. 1361 RFC 02313199 12/03/92 16: 25 $0 . 00 10/011
F 0959 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
921105
(Revised 5/91) 8
FROM : THOMAS A RUTLEDGE, J LANEt'1AN PHONE N3. : 352 0629 P01
- -- �. 4966 West 8th Street
THOMAS A. RUTLEDGE Greeley, Colorado 80634
Petroleum Landman (303) 352-0629
August 22, 1992
Board of County Commissioners
P.O. Box 758
Greeley, CO 80632
Attu: Lee Morrison
Re: Request for Offer to Loan., T1N-R66W, 6th P.H., Section 12: Part of the SSP: lying Weat of
the West lino of the Speer Canal., Canty of Weld, State of Colorado.
Dear Mr. Men-risen and the Board of County Cannissiooers,
On behalf of D. Scott Stapp, my associate, I request that the captioned tract of Weld County
mineral rights be offered in next Oil and Gas Lome auction on August 26, 1992, this coming
Wednesday.
The record shown that Weld County signed a Division Order co this ground in the mid 1980's and
the lease was subsequently released by Amoco Production Canpany following the plugging of the
hole.
Please call me at the telephone nnmlor above if you have any questions regarding this matter.
Sincerely,
Thames A. Rutledge
Leasing Agent for
D. Scott Stapp
TAR
enc
$0 .00 11/011
B 1361 FEC 02313199 12/03/92 16 : 25
F 0960 MARY ANN FEUEFSTEIN CLERK & RECORDER WELD CO, Co
921105
AUG 22 ' S2 14 : 58 352 0929 PAGE . 00l
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