HomeMy WebLinkAbout940912 RESOLUTION
RE: AUTHORIZATION OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY OWNED BY WELD
COUNTY, COLORADO - SINW'„ AND SWE'„, S34N, T5N, R66W
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, the Department of Purchasing was authorized to solicit bids for
lease of a portion of said mineral acres not currently leased, and
WHEREAS, Snyder Oil Corporation, 1625 Broadway, Suite 2200, Denver,
Colorado 80202, submitted the high bid to lease 8.94 net mineral acres, more or
less, described to-wit:
A strip of land across the SINW* and SINE!
of Section 34, Township 5 North, Range 66
West of the 6th P.M. , Weld County,
Colorado, being more fully described in the
attachment to said lease, a copy of which
is attached hereto and incorporated herein
by reference, and
WHEREAS, Weld County desires to accept the high bid offer submitted by
Snyder Oil Corporation to lease the above described mineral acreage for $75.00
per net mineral acre, for a total sum of $670.50, 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 September 14, 1994, and ending at 12:00 noon on
September 14, 1997, 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 Snyder Oil Corporation be, and
hereby is, accepted for a period of three (3) years.
940912
CC : So e c • Pic_
OIL AND GAS LEASE - S;NWk & SzNEkk S34N, T5N, R66W
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 14th day of September, A.D. , 1994.
ATTEST:
�� BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
Weld County Clerk to the Board /j ( ,,,,, ,,,t
W H. Webs er, C airman
BY:�G1„,44-14
Deputy Cl r to th d� Dale . Hall, �P/yo Tem
APPROVED AS TO FORM: 11
Geoxg E. Baxter
Co my Att rney tance L. Harbert
Barbara J. Kirk yer
940912
6\v
WELD COUNT! OIL AHD GAS LEASE
ARR43667 a
Containing 8 (94 - acres, more or Less:
Containing 8, 94 nec mineral acres, more or less:
THIS LEASE AOREifa_IL, dated this `� day of `��/AJ, 199 , made and entered into by and
between WELD COUNTY, COLORADO, a political subdivision of one STATE OF COLORADO, acting by and ohro.sgh the BOARD OF
COUNTY COtri1SSI0NERS OF THE COUNT: OF W—0, for its respective interests, cfo BOARD OF COIJMI COh^flsstoH ?S, 'WELD Cow-r7
CIENTTNNIAL Cyn'ZR, 915 LOTH STRE.T, GREELEEY, CO 80631, hereinafter called Lessor, and:
Snyder Oil Cot µDration
1625 Broadway, #2200
Denver, Colorado 80202
hereinafter called Lasses:
VITHESSETd
{,'Hi7Fsq, said Lessee has applied to Lessor for an oil and gas lease covering the Land herein described, and has
paid a filing fee in the amount of 510.00, plus a bonus consideration of 5 75.00 per mineral acre, fixed by
Lessor as an additional consideration for the granting of this lease, and Lessee agrees co pay as annual rental of
5 8, 94 , computed at the rate of $ 1 00 , per mineral acre or fraction thereof per year, and tha
following coo ideraciont
•
WEallAS, 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 co 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 gat, or either of than, thereon and therefrom with the right to own all ail and gas so produced and saved therefrm
and not reserved as royalty by Lessor under the terms of this lease, together with rights-of-way, easements and
servitudes for pipeline*, telephone and telegraph Lines, tacks 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 Weld, State of Colorado, and more
particularly described as follows:
DESCRIPTION? OF LAND SECTION TOWNSHIP RANGE
See A strip of land across
Attached the SIINW1/4 & SANE' 34 5N 66W
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 Lb' _ day of , 19 97 as pr�ry term, sad sa Lang thereafter as
oil and gas, or either of them, is produced in paying quantities from said Land or Lessee is diligently engaged in bona
fide drilling or reworking operations an said land, subject co 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 ate commenced during said primary term or any extension thereof or while this Lase 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 sae, and provided further that such production L
commenced during such primary term or anti extension thereof, or while this.Lase is in force by reason of such drilling
or reworking operations or other production.
2408872 B-1461 P-368 09/29/94 03:59P PG 1 OF 9 pC00 DOC
Mary Mn Feuerstein Weld Co. , Clerk & Recorder 940912
(Revised 5/91) 1
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 EX 1SION 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 sec at the time of established production shall be paid during
the remaining life o£ this lease, annually, in advance, on or before each anniversary date hereof. There
shall be no refund of unused rental.
2. BOTALTT - Lessee shall account for any and all substances produced cn 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, Lesser may take its royalty oil
in kind, la 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 north 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 co 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 tine such oil is run into pipelines or storage
tanks.
B. On gas, including casinghead 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 -. No approval by Lessor of the terns of any such agreement shall
operate to make Lessor a party thereto or obligate it thereunder la any way. At the option of Lessor,
- _ - and with sixty (60) days' notite to Lessee, Lessor nay take its royalty in kind. With sixty (60) days'
notice to L , Lasser 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 casts 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.
•
2408872 B--1461 P-368 09/29/94 03:59P PG 2 OF 9
(Revised 5/91) 2 940912
3. RECORDS - Lessee agrees to keep and to have in possession complete and accurate books and records shoving
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 alongwith
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. Ys—A.SURw—= - All production shall be accurately measured using standards established by is Amer'-can Gas
Association (AGA) and/or the American Petroleum Institute (API) and all measuring devices shall be
tamperproof as nearly as passible. Oil royalties due within the terns 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. PAIY'�t'7TS AND REPORTS - All pay--ants and reports due hereunder shall be made on or before the day such
payments and reports are due. Nothing in this paragraph shall he 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 lace
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 for 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 tine 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 end 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 inplied. In me 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.
2408872 8-1461 P-368 09/29/94 03:59P PG 3 OF 9
(Revised 5/91) 3 940912
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 tot less, however, than
contiguous tracts of approximately forty (40) acres or Gcveromental Lot corresponding to a quarter-
quarter section for any partial assigment, and for approval of such assignment Lessor shall make as
assigment charge in an amount to be determined by Lessor. Prior to written approval by Lessor of
assignment of this lease, Lessee (assignor) shall not be relieved of its obligations under the terra
and conditions herein. An assignment shall not extend the tern of this lease.
B. If any assignment of a portion of the land covered hereby shall be approved, a new lease shall be issued
' to the assignee covering the assigned land, containing the same terms and conditions as this lease, and
limited as to tern 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 terns of this lease: and no disputa
between parties to any such assignment shall operate to relieve Lessee from performance of any terns
or conditions hereof or to postpone the tine therefor. Lessor shall at all tines be entitled to look
solely to Lessee or his assignee shown en its hooks as being the sole owner hereof, and for the sending
of all notices rewired by this lease and for the performance of all terms and conditions hereof.
D. Although not binding on Lessor, all instruments of every kind and nature whatsoever effecting 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 (51), including
any overriding royalty previously provided for unless production exceeds a monthly average of fifteen (15)
barrels per day or ninety thousand cubic feet of gas per day (90 MCl/D). In the event production drops to
this amount or less, any overriding royalties which exceed five percent (51) ray be suspended. Lessor's
approval of a reservation or assignment of an overriding royalty shall tot bind Lessor for payment of said
overriding royalty and shall not relieve Lessee of any of its obligations for payment of royalties to lasso:
as provided by ROYALTY paragraphs herein.
11. Ca= WELL'S - 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
an 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 - Opera 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.
•
2408872 B-1461 P-368 09/29/94 03:59P PG 4 OF 9
(Revised 5/91) 4
; � ; 940912
13. POOLING CLAUSE - Lessee may at any tine or tomes pool any part or all of said land or lease or any stratum
or strata with other lands and leases, stray= or strata, in the same field so as to constitute a spacing
unit to facilitate an orderly or uniform well-spacing pattern or to coolly 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 - CC tfflITT-ZAT10N - In the event Lessor permits the land herein leased to be included within a
comunitization 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 ter= of this lease. The teams of the lease on that
portion remaining is the unit shall be deemed to be modified to conform to such agreement. Nonproducing
leases shall terminate on the first anniversary data 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 tern 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 name 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 om or suspensions of production
as may be approved it writing by Lessor. Lessee shall be responsible for adequate site security on all
producing properties.
16. SCUT-IN `wF:.LS - 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 data next, of the year of an extension of the lease by reason of
a shut-in well. Lessee shall pay to Lasser s shut-in royalty equal to $2.00 per acre of the lease per annum
in addition to the annual rental. The =in:—., 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 maxis-•^ 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 EMISSION paragraph herein. The
granting of any further extensions shall be at the sole option of Lessor.
17. OPs..AATIONS - No exploration, drilling or production operation, including permanent installations, shall be
within 200 feet of any existing building or other improvement, including water well or reservoir, without
the written permission of the owner of said improvements. Lessee shall keep a correct log of each well
drilled hereunder, showing by name or description the formations passed through, the depth at which each
formation was reached, the 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;
2408872 B-1461 F-368 09/29/94 03:59P PG 5 OF 9
-0(Revised 5/91) .- ' 940912
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 retorts as are required by the following paragraph, sad provided that all such information is immediately
available to Lessor. Any proprietary information so submitted shall not be subject to public inspection
under Colorado law.
Lessee shall bury pipelines below plow depth. Lessee shall set and cement sufficient surface casing to
protect the fresh water wells of the area.
18. NOTIFICATION - Lessee shall notify Lessor and the surface 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 far 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 wish 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 terns and provisions of this lease,
the laws of the State of C-'---do, and the rules and regulations thereto appertaining. A bond may be held
in effect for the life of production of any well.
20. SZt'LntENT - 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 terns 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. Ol.?R DISC= - Should Lessee discover any valuable products other than oil and gas, on or within the
leased lard, Lessee shall w,-"- seven (7) days report such discovery to Lessor, in which event Lessee and
Lessor may negotiate a provision for production of such discovery.
22. tzATLR - 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 mot he 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 mace
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 Ccloradd oil and gas
operations, Lessor is hereby authorized upon notice and bearing, as hereinafter provided, to cancel this
lease as to all of the leased land so 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 poet 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 sue, stating that if within thirty (30) days from the data of
mailing said notice, Lessee shall correct such failure or default, no cancellation will be made. If such
(Braised 5191) 2408872 B-1461 P-368 09/29/94 03:59P PG 6 OF 9 940912
' I
failure or default is not corrected within thirty (30) days after the mailing of such notice, and if Lessee
does not request a hearing on such notice within thirty (30) days, this lease will terminate and be canceled
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. The granting of such extension shall be
at the sole option of Lessor, according to the following conditions:
A. 90 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 oca-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 Ore Dollar ($1.00) per acre leased as delayed rental for
the tea of the extension.
D. That the royalty will remain the same. -
25. EOLD EARN-125S - Lessee shall indemnify Lessor against all liability and loss, and against all claims and
actions, including the defense of such cloths 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. CONDalliATION - If the leased land shall be taker. 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 avard(s) paid to Lessee for severed oil and gas reserves, in which event
XXXXXXXXX of such specific avard(s) shall be paid co Lessor in lieu of royalty lost by virtue of the
condemnation. Im-provecents shall be removed by Lessee per terns in the S.171 1T 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.
yg_ ARfi4FOLCGZ - Lessee shall not destroy, disturb, car, 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, good or metal, pictographs, strictures, 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.
(Revised 5/91) 2408872 &-1461 P-368 09/29/94 03:59P PG 7 OF 9
940912
[ •
' t • 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.
is ase shall ure to be 30. HEIRS AND ASSIGNS 'The benefits successors n or obligations
assigns of Lessee;a lnbut no sublease or aassignme tbinding
hereof, or of any
legal representatives,
interest herein, shall be binding upon Lessor until the acme has been approved by Lessor as explained in the
ASSIGNHENTS' 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
e, whether w or ed
byconnection ndch le the subject he subject
andds lands.
hall All abstracts
thetpr pertylof and be deal vered to Lessor es after Lessee
by Lessee and covering j however, to-the right of Lessee to use such
has completed its title examination and curative mark, subject,
durin the term of the lease.
abstracts upon request at any time g
IN WITNESS WHEREOF, Lessor has hereunto signed and caused its name to be signed by the BOARD OF COUNTY
COL4i15SI0NSRS OF TBE 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 COMLISSIONERS
WELD COUNTY, COLORADO
1 [�/�f(� i /
A'R'EST:I�7Zr�NuwL:. c'E ,( I� �. �i ' ii
�."'�_
Weld Cou y Clerk to tha Boi % ,ti
ti lI
', j ,wig . r..a Bp Oepucy Clerk to5the Bo r "+
7 a?J /9 91
t/1.��/1•_
< _
.
,-_,../. / .fi
LESSEE: nyde• 0• Corporation
BY.�ames . aro
STATE OF COLORADO )
) se
COUNTY of WF1D •) 13th day of September '' 1994
The. foregoing instrument was acknowledged before me this
by James C. Kato
Witless ray hand and official seal.
Hy Co - sa Len Expires: R` — --/
Notary P`:hiie 0!.7 'id
2408872 B-1461 P-368 09/29/94 03:59P PG 8 OF 9
/o '946912
S2NW4 S2NE4 S34 T5N R66W
A strip of land 100' in width through, upon, over and across the Si of the
NWI and the Sz of the NEl of Section 34, Township 5 North, Range 66 West of the
6th P.M. , the same being 50' in width on each side of the center line of the
track of the railroad of the Denver, Laramie and Northwestern Railway, as the
same is now surveyed and located over and across the above described land which
said center line is described as follows:
Beginning at a point on the South line of the said Si of the NWI, 1, 039'
more or less West of the SE corner thereof; thence North 75°46' East 3, 895' more
or less to a point on the East line of said Si of the NEi , 954' feet more or less
North of the SE corner thereof, said strip of land containing 8. 94 acres more or
less .
14 2408872 B-1461 P-368 09/29/94 03:59P PG 9 OF 9
940912
Hello