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RESOLUTION
RE : AUTHORIZATION OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY OWNED BY WELD
COUNTY , COLORADO , LOCATED IN SECTION 23 , TOWNSHIP 7 NORTH , RANGE 63 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 , Wilbanks & Associates , Inc . , 1860 Lincoln Street , Suite 800 ,
Denver , CO 80295 , submitted the high bid to lease 160 . 00 net mineral acres , more
or less , described to -wit :
SE / 4 of Section 23 , Township 7 North , Range 63
West of the 6th P . M . , Weld County , Colorado
WHEREAS , Weld County desires to accept the high bid offer submitted by
Wilbanks & Associates , Inc . to lease the above described mineral acreage for
$ 23 . 00 per net mineral acre , for a total sum of $ 3 , 680 . 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 March 20 , 1991 , and ending at 12 : 00 noon
on March 20 , 1994 , 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 Wilbanks & Associates , Inc . , 1860
Lincoln Street , Suite 800 , Denver , CO 80295 be , and hereby is , accepted for a
period of three ( 3 ) years with the total sum being as above listed .
B 1294 REC 02245341 03 / 28 / 91 12 : 36 40 . 00 1 / 010
F 0839 NARY ANN FEUERSTEIN CLERK & RECORDER WELD CO , CO
910189
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RE : OIL AND GAS LEASE - WILBANKS & ASSOCIATES , INC .
The above and foregoing Resolution was , on motion duly made and seconded ,
adopted by tie following vote on the 20th day of March , A . D . , 1991 .
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BOARD OF COUNTY COMMISSIONERS
ATTEST ��~) . WELD COUNTY C LO ADO
Weld County C erkc o the Board
•i7"' Gordo a y airman
Uk1 �
il By : i - . ‘ jnr) a) ,. �_ ,fler
Deputy C erk to the Board eor e Kennedy , Pro - Tem
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APPROVED AS_ --TO FORM : -
,t. /9 _2
, -
JConstance L . Harbert
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County Attorney C . W . Kirby ///
,1 f y 114 1
. ir y(s, � _
zaZ
W . H . Webster
41 03 / 28 / 91 x. 2 : 36 X0 . 00 2 /' 010
B 1294 REC 022453 . ORDER WELD Co , Co
F 0840 MARY ANN FEUERSTEIN CLERK & RECORDER
910189
r
�- Parcel 425
WELD COUNTY OIL AND CAS L.EAA SE
Containing 160 acres , more or less ;
Containing 160 net mineral acres , more or less :
T� IiS LEASE AGREEMENT , dated this da`- of /} 19 %I made and entered
> _ >
{ 1 �. WELD
� � 1 � 1 f� � 1 � T TT }�f
into by and. Between WELD COUNT`. , CCLCRADO , a political sutuiv ` sion of the STATE OF COLORADO , acting y and
through the BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD , for itc respective interests , c /o BOARD OF
CCUNT`_' a"..`T'.1SSIO:tL 1S , VFID COUNT": CENTENNIAL CENTER ,, a. f ICT:i STR L1 , CREEL:7 ,, CC E0631 , hereinafter called
Lessor , and :
Wilbanks & Associates , Inc .
1860 Lincoln St . , Suite 800
Denver , CO 80295 .
hereinafter :. escee :
WITNESSET'rl
VHEREAS , said Lessee has applied to Lessor for an oil and gas lease covering the lard herein described ,
and has paid a filing fee in the amount of S10 . 00 , plus a bonus cersideration of $ 23 , 00 per mineral
acre , fixed by Lessor as ar additional consideratiGn for the granting of this lease , and Lessee agrees to
pay an annual rental. of $ 160 . 00 , computed at the rate of a 1 . 00 , per mineral acre or
fraction thereof per yc4r ..
WHEREAS , all the requirements relative to said application have been duly complied with and saia
application has been approved and allowed by Lessor ;
TEEFEFORE , in consideration of the agreements herein , on the part of Lessee to be paid , kept and
performed , Lessor does : ease exclusively to Lessee for tie 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 ar. d saved therefrom and not reserved as royalty by Lessor under the terms of
this lease , together with rights - of -wall , 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 land for oil and Qas ,
the followirg described land situated in the County of Weld , State of Colorado , and more particularly
described as follows :
DrSC77777eN n7 LAND SECTION T'OWNSFT? RA C E
SE 1/4 23 7N 63W
TO HAVE AND TC HOLD said lard , and IV the rights and privileges granted hereunder to Lessee until the
hour of twelve o ' clock noon on that:90 � ��day of tail ' , 19 li! - as primary tern , and so long
thereafter as oil and gas , or either of them. , r. s produced in paying quantities from said lane: or Lessee is
diligently engaged in bor. a fide drilling or reworking operations on said land , subject to the tens 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 aro 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
1294 REC 0224341 03 / 28 / 91 12 : 36 X0 . 00 3 / 010
F 0841 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO , CO
( Rev . 11/ 8b , 9101a9
0 1 a 9
I cm 1 / Q _
primary term or any extension thereof, or while this lease is in force by reason of such dri111rg or
reworking operations or other production.
EXPLORATION - Lessor reserves the right to conduct exploration on the leased land provided such
exploration does not interfere with rights granted herein.
In consideration of the premises, the parties covenant and agree as fellows:
1. RENTAL - If this lease is extended for an additional term as provided for in the EXTENSION
paragraph hereof, Lessee shall daring such extended period pay to lessor an annual rental at double the rate
above specified for the land covered hereby. The rental in effect at the time production is established
shall not be increased due to the term of this lease being extended by such production. Rentals set at the
time of established production shall be paid during the, remainirg life of this lease, arr.ually, in advance.
on or before each antiverse; date hereof. Mere sh.,'1 be no re P.cL ci unnse yenta'.
2. ROYAL= - Lessee stall account for any an6 a'.l substances produced on the leased land and Lessee
shall pay to Lessor as royalty, in adCitior to the rentals prevIded, but except for products used en the
leased land, unavoidably lost or flared on the leased land, with approval of Lesser, the following:
(a) On oil, 1"<}x of the oil produced and saved from the leased land.
At the option of Lessor, and with sixty (60) days' nctice to Lessee, Lessor may take its
royalty oil in kind, in which evert Lessee shall deliver such royalty cil 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 fcr 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 ir no evert 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 fcr 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 casinghead gas or other gaseous substance, 12k% 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 tc 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 hind.
With sixty (60) days' notice to Lessee, Lessor may cease taking gas royalty in kind.
(c) All costs of marketing the oil and/cr gas produced shall be borne by Lessee and such costs
shall not directly or indirectly reduce the royalty payments to Lessor. Except that marketing costa
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.
B 1294 REC 02245341 03/28/91 12; 36 00. 00 4/010
F 0842 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
(Rev. 11/86)
3. RECORDS - Lessee agrees to keep and to have in possession complete and accurate books and records
showing the production and disposition o£ any and all substances produced on the leased lana and tc 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. MEAStiREITNTS - All prcuuction shall be acc_rately measured using standards est:.blished by the
American Gas Association (AGA) andior the American Petroleum Institute (API) and all measuring devices shall
be tamperproof as nearly as possible. Oil royalties cue within the terms of this lease shall be calculated
on actual and accurate measurements within AP: standards unless a different meats of measurement, subject to
Lessor's approval, is provided.
5. EAYME`"TS F RFIGRTS - All par^.repts .-.ri reports eus ereu❑dcC stall be made cc cr be`_ure the day
such payments anu reports are due. Nothing in this paragraph shall be construes to extend tke expiration of
the primary tern.: hereof.
011 royalty payrents and supporting dccuments shall be submitted prior to the last day cf 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. Payments having
restrictions, qualifications, or encumbrances of any kind whatsoever shall not be accepted by Lessor. P.
penalty for a late payment shall be charges 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, fires, 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, regulaticr.s, orders, local ordinances or resolutions applicable to and binding upon the
administration of lands and minerals awned 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 ana 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.
B 1294 REC 02245341 03/28/91 12: 36 , 0. 00 5/010
F 0843 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
(Rev. 11/86)
q � � � 29
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 rot 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 appreval of such assignment Lessor shall
make an assignment charge in an amount to to determined by Lessor. Prior to written aprrcval by Lessor
of assignment of this lease, Lessee (assignor) stall not to relieved cf its obligations under the terms
and conditions herein. Am assignment shall not extend the term of this lease.
(b) Ii 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
disetarged from all further el ligations and liab('ities as to drat portion sc assigned.
(c) Lessee shall notify Lessor ci all assignments of undivided percertage or other interests.
Said interests will not to recognizes cr 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 lease: and no
dispute between parties to any such assignment shall operate to relieve Lessee from performance of any
terns or conditions hereof or to postpone the time therefor. Lesser shall at all times be entitled to
look solely to Lessee or his assignee shown en its backs as being the sole owner hereof, and fcr the
sending of all notices required by this lease and for the performance of all terns and conditions
hereof.
(d) Although not bin Ling on Lesser, all instruments of every kind and nature whatsoever affecting
this lease should be filed with the Lessor.
10. OVERRIDING ROY= - 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 (5%),
including any overriding royalty previously provided for unless production exceeds a monthly average of
fifteen (15) barrels per day or ninety thousand cubic feet o£ gas per day (90 MCF/D). In the evert that
production drops to this amount or less, any overriding royalties which exceed five percent (5%; may be
suspended. Lessor's approval of a reservation or assignment of an overriding royalty shall not bird 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 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 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 lard.
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.
13. POOLING CLAUSE - Lessee may at any time or times pcul any part or all of said land and lease or
any stratum or strata with other lands and leases, stratum or strata, in the same field so as to constitute
a spacing unit to facilitate an orderly or uniform well-spacing pattern or to comply with any order, rule,
or regulation of the State or Federal regulatory or conservation agency having jurisdiction. Such pooling
B 1294 REC 02245341 03/28/91 12: 36 y0. 00 6/010
(Rev. 11/86) F 0844 DIARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
shall be accomplished or terminated by filing of record a declaration of peeling, 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. UNIT=ICN - CO?MUNITIZATION - Ir. the evens Lessor permits the land herein leased CO be included
within a communitization or unitization agreement, the terms of this lease may be deemed to be modified to
conform tc such agreement. When crly a portion cf the lard order this ;case is cetaritted by an sbteement,
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.
Nonprulr.cint '_e^sec aha11 tent rate on the first aoi l, ersar- dJte ct the le a_c tollowirj the ter m'_n:Jior
date of tte unit or part thereof modifying [Le 'ease, but in no event prior to the erd of the primary tern
of the lease or the extension term of the lease.
15. PRODUCTION - Lessee shall, subject to applicable laws, regulations and orders, operate and ;reduce
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 engireerlrg 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. SRUT-II; WELLS - If Lessee shall complete a well on the leased land productive of gas and Lessee is
tenable to rroduce such gas due to a lack of suitable market therefor, Lessor caw 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 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 cf any existing building or other improvement, including water well or reservoir,
without the written permission of the owner cf said improvements. Lessee shall keep a correct log of each
well drilled hereunder, shoving by name or descrirtion 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 Idien such logs, or either of
them, are run; 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 fling 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.
B 1294 REC 02245341 03/28/91 12: 36 “0. 00 7/010
F 0845 MARY ANN FEUERSTEIN CLERK 6 RECORDER WELD CO, CO
(Rev. 11/86) q i i 29
Lessee shall bury pipelines below plow depth. Lessee shall set and cement sufficient surface
casing to protect the fresh water wells o£ the area.
18. NOTIFICATION - 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 coamencing 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 sate 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 Cc:orado, ant el.e rules aid regulations thereau eppertainir.g. A
bond may be held in effect for the life of production of any well.
20. SETTLEIEN1T - Lessee stall not remove any machinery, equipment or fixtures place'_ on said lard,
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 DISCOVER? - Should Lessee discover any valuable products other than oil and gas, on or
within the leased land, Lessee shall within seven (i) days report such discovery to Lessor, in which event
Lessee and Lessor may negotiate a prevision 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. _f Lessor is the
surface owner, saia 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 cot limited to the failure to comply with laws, rules and regulations governing Colorado oil
and gas operations, Lessor is hereby authorized upon notice and hearing, as hereinafter provided, to cancel
this lease as to all of the leased land so claimed or possessed by Lessee 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, Lessee shall correct such failure cr default, no cancellation will be made. If
such failure or default is not corrected within thirty (30) days after the mailing of such notice, ar.d if
Lessee does not request a hearing on such notice within thirty (30) days, this lease will terminate and be
cancelled by operation of this paragraph without further action by Lessor, or further notice to Lessee.
24. 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 commenced during the primary term
hereof, Lessee may make written application to Lessor for an extension of this lease for a term equal to the
primary term as to all of the mineral acres covered hereby (excluding any mineral acres theretofore
surrendered as in the SURRENDER Paragraph provided, or assigned as in the ASSIGNMENTS Paragraph provided).
The granting of such extension shall be at the sole option of Lessor at double the rental for the primary
term hereof.
B 1294 REC 02245341 03/28/91 12: 36 X0.00 8/010
F 0846 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
(Rev. 11/86)
25. BOLD 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 cr property caused by or sustained in connection with operations on this
leased land or by corditions 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 dace of taking. She award for such condemnation shall be paid to Lessor,
except for any specific awards) paid to Lessee for severed oil and gas reserves, in which event
yr<XXXXXXXX o£ 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 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 whatever.
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 o£ prehistoric or histcric 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.
(c) "Paying euattities" as used herein shall mean and refer to quantities of oil and gas or of
either of them sufficient tc 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 e£ Lessee; but no sublease or asslgnnent hereof, or
o£ any interest herein, shall be binding upon Lessor until the same has been approved ty Lessor as explained
in the ASSIGNMFETS' 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.
B 1294 REC 02245341 03/28/91 12: 36 “0. 00 9/010
F 0847 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
(Rev. 11/86) q l Di gq
IN WITNESS WHEREOF, lessor has hereunto signed and caused its name to be signed by the BOARD OF COUNTY
COMMISSIONERS OF THE COMITY OF WELD, with the seal of the office affixed, and Lessee has signed this
agreement, the day and year first above written.
BOARD OF COWIE COMMISSIONERS
WELD COUNTY, CO RADO
Weld Ccut*114 k nrd mar`o-der
eme Cleble te,pie Board
�•rY � / � p /J 2 1 �jq
By: `���• - V �
LESSEE: WI7LLBAANNKKS & ASSCCIAT , L^IC.
BY: / ` 't'
Thomas E. Clark, Vice-President
STATE OF COLORADO )
) SS.
COUNTY OF WELD ) /��The foregoing instrument vas acknowledged before me this �/ day of 7, `��- ,
19 v by �a �. eice-LK_
cr
Witness," hand snchoelptial seal.
/
My Comareshon E.2i ts: . .J' -q
C1C `. alr \G.
rope Notary Public
B 1294 REC 02245341 03/28/91 12: 36 X0. 00 10/010
F 0848 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
(Rec. 11/86)
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