HomeMy WebLinkAbout900730.tiff AR22237` 3
RESOLUTION
RE: AUTHORIZATION OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY
° O OWNED BY WELD COUNTY, COLORADO, LOCATED IN SECTION 12 ,
~ U TOWNSHIP 10 NORTH, RANGE 61 WEST OF THE 6TH P.M. , WELD
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O COUNTY, COLORADO
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o WHEREAS, the Board of County Commissioners of Weld County,
0 3 Colorado, pursuant to Colorado statute and the Weld County Home
o a Rule Charter, is vested with the authority of administering the
-+Q affairs of Weld County, Colorado, and
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• aWHEREAS, Weld County, Colorado, is the owner o£ vast acres of
mineral lands located in Weld County, Colorado, and
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W WHEREAS, a portion of said mineral acres not currently leased
rn C.) was put up for bid to lease, and
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COEW., WHEREAS, Antelope Production Company, P.O. Box 577 , Kimball,
o z Nebraska 69145 , submitted the high bid to lease 80 net mineral
acres, more or less, described to-wit:
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✓ w Section 12 : W}NWe , Township 10 North, Range 61
N z West of the 6th P.M. , Weld County, Colorado
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U a WHEREAS , Weld County desires to accept the high bid offer
a submitted by Antelope Production Company to lease the above
M described mineral acreage for $12. 66 per net mineral acre, for a
i total sum of $1 ,012 .80 , together with a rental fee of ONE DOLLAR
,N., o ($1 . 00) per net mineral acre, which lease is to run for a period
of three (3) years, commencing August 8 , 1990 , and ending at 12 : 00
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noon on August 8 , 1993 , 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
Antelope Production Company, P.O. Box 577 , Kimball, Nebraska
69145 , be, and hereby is , accepted for a period of three (3) years
with the total sum being as above listed.
900730
Page 2
RE: OIL AND GAS LEASE - ANTELOPE PRODUCTION COMPANY
The above and foregoing Resolution was , on motion duly made
and seconded, adopted by the following vote on the 8th day of
August, A.D. , 1990 .
/ // BOARD OF COUNTY COMMISSIONERS
ATTEST: ��,fr��� �� WELD NTY, CO ORADO
00 Weld Colin)? Clerk to, the Board /�
U _ ene R. Bran ner, Chairman
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y}c m-c �_�� �ce /c ct. a ge K nne y, Pro-Tem
as e uty Cleric to he Board ��
0 3 �� �.�-e-d- tcl® _Zc._.,
o a APPROVED AS TO FORM: onstance L. Harbert
.n.43
O l _-. C.W. Ki y
W �ri jy., 7 " 4._ � ,
m a County Attorney
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900730
Parcel #38
WELD COUNTY OIL AND GAS LEASE
Containing 80 acres, more or less;
Containing 80 net mineral acres, more or leas:
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THIS LEASE AGREEMENT dated this 8th day of August
0 U , g , 19 90 , made and entered
o into by and between WELD COUNTY, COLORADO, a political subdivision of the STATE OF COLORADO, acting by and
M O through the BOARD OF COUNTY COMMISSIONERS OF TEE COUNTY OF WELD, for its respective interests, c/o BOARD OF
U COUNTY' COMMISSIONERS, WELD COUNTY CENTENNIAL CENTER, 915 10TH STREET, GREELEY, CO 80631, hereinafter called
ALessor, and:
Ca 3 Antelone Production Company
P.O. Box 577
o t4 Kimball NR 69145
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q hereinafter called Lessee:
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0 a WITNESSETH
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ut WHEREAS, said Lessee has applied to Lessor for an oil and gas lease covering the lard herein described,
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Wand has paid a filing fee in the amount of $10.00, plus a bonus consideration of $ 12.66 per mineral
O a acre, fixed by Lessor as sr additional consideration for the granting of this lease, and Lessee agrees to
• U pay an annual rental of $ 80.00 , computed at the rate of $ 1.00 , per mineral acre or
N Z fraction thereof per year.
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m H WhMREAS, all the requirements relative to said application have been duly complied with and said
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application has been approved and allowed by Lessor;
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cr% THEREFORE, in consideration of the agreements herein, on the part of Lessee to be paid, kept and
N performed, Lessor does lease exclusively to Lessee for the sole and only purpose of drilling for,
N development of and production of oil and gas, or either of them, thereon and therefrom with the right to own
N all oil and gas so produced and saved therefrom and not reserved as royalty by Lessor under the terms of
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U >+ this lease, together with rights-of-way, easements and servitudes for pipelines, telephone and telegraph
W lines, tanks and fixtures for producing and caring for such product, and housing and boarding employees, and
a X any end all rights and privileges necessary for the exploration and operation of said land for oil and gas,
r1 n the following described land situated in the County of Weld, State of Colorado, and more particularly
Na described as follows:
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CM W DESCRIPTION OF LAND SECTION TOWNSHIP RANCE
w'§NW3L 12 ION 6141
TO HAVE AND TO HOLD said land, and all the rights and privileges granted hereunder to Lessee until the
hour of twelve o'clock noon on the 8th day of August , le 93 as primary term, and so long
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 on said land, subject to the terms and
conditions herein. Drilling or reworking operations shall be deemed to be diligently performed if there is
no delay or cessation thereof for a greater period than sixty consecutive days unless an extension Sr
writing is granted by Lessor; provided that such drilling or reworking operations are commenced during said
primary term or any extension thereof or while this lease is in force by reason of production of oil and gas
or either of them, or that such reworking is commenced within sixty days upon cessation of production for
the purpose of re-establishing the same, and provided further that such production is commenced during such
Ji�90 900730
(Rev. 11(86;
LEO I (.,(a
primary term or any extension thereof, or while this lease is in force by reason of such drilling, 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 follows:
1. RENTAL - If this lease is extended for an additional term as provided for in the EXTENSION
o O paragraph hereof, L hall during such extended period pay to lessor an annual rental at double the rate
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o above specified for the land covered hereby. The rental in effect at the time production is established
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shall not be increased due to the term of this lease being extended by such production. Rentals set at the
U time of established production shall be paid during the remaining life of this lease, annually, in advance,
Q on or before each anniversary date hereof. There shall be no refund of unused rental.
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0 3 2. ROYALTY - Lessee stall account for any and all substances produced on the leased land and Lessee
o a shall pay to Lessor as royalty, in addition to the rentals provided, but except for products used on the
n W leased land, unavoidably lost or flared on the leased lard, with approval of Lessor, the following:
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U (a) On oil, 123{a of the oil 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 may take its
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� x royalty oil in kind, in which evert Lessee shall deliver such royalty oil to Lessor on the leased land,
r:4 free of cost or deduction, into the pipelines or storage tanks designated by Lessor, but Lessee shall
W not in such case be required to provide free tankage for any such oil for a longer period than one
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rn U month after the same is run into tanks. With sixty (60) days' notice to Lessee, Lessor may cease
r- Z 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
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co E Lessee at the well by the purchaser thereof; and in no event shall the royalties be based upon a market
o a value at the well less than the posted price in the field for such oil, or in the absence of a posted
W price in the field far such oil, upon a market value at the well less than the prevailing price
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001 W received by other producers in the field for oil of like grade and gravity at the time such oil is rur
MFv into pipelines or storage tanks.
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N FCC (b) On gas, including caainghead gas or other gaseous substance, 12k% of the fair market
o value at the well or of the price received by Lessee at the well, whichever is greater, of all gas
O % produced and sold from the leased land or utilized off the land by Lessee. A copy of all contracts for
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(x sale of gas shall be furnished to Lessor. Where gas is sold under contract that has been approved by
,y co 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
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.i o agreement shall operate to make Lessor a party thereto or obligate it thereunder in any way. At the
W Ga option o£ Lessor, and with sixty (60) days' uotice to Lessee, Lessor may take its royalty in land.
With sixty (60) days' notice to Lessee, Lessor may cease taking gas royalty in kind.
(c) All costs of marketing the oil and/or gas produced shall be borne by Lessee and such costs
shall not directly or indirectly reduce the royalty payments to Lessor. Except that marketing costs
for Lessor's in-kind royalty shall be borne by Lessor.
(d) If Lessor owns a lesser interest in the oil and gas deposits of the above-described land than
the entire and undivided fee simple estate, then the royalties and rentals herein provided stall 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.
(Rev. 11/86) (y!.0-7 30
3. RECORDS - Lessee agrees to keep and to have in possession complete and accurate books and records
showing the production and disposition of any and all substances produced on the leased land and to permit
Lessor, at all reasonable hours, to examine the same, or to furnish copies of same to Lessor upon request
along with purchaser's support documentation. Lessor will not be unreasonable with requests. All raid
books and records shall be retained by Lessee and made available in Colorado to Lessor for a period of not
less than five years.
4. MEASUREMENTS - All production shall be accurately measured using standards established by the
American Gas Association (AGA) and/or the American Petroleum Institute (API) and all measuring devices shall
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r+ C) be tamperproof as nearly as possible. Oil royalties due within the terms of this lease shall be calculated
•0 on actual and accurate measurements within API standards unless a different means of measurement, subject to
in O Lessor's approval, is provided.
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O 5. PAYMENTS & REPORTS - All payments and reports due hereunder shall be made on or before the day
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00 such payments and reports are due. Nothing in this paragraph shall be construed to extend the expiration of
the primary term hereof.
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a011 royalty payments and supporting documents shall be submitted prior to the last day of the
O month following each month's sale of production, and gas royalty payments and supporting documents shall be
Wsubmitted prior to the last day of the second month following each month's sale of production.
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.. w All payments shall be made by cash, check, certified check or money order. Payments having
`n restrictions, qualifications, or encumbrances of any kind whatsoever shall not be accepted by Lessor. A
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W penalty for a late payment shall be charges as set forth in the PENALTIES paragraph herein.
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• U 6. PENALTIES - A penalty shall be imposed for, but not limited to late payments, improper payments,
N z operational deficiencies, violation of any covenant of this lease, or false statements made to Lessor.
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\ W Penalties shall be determined by Lessor unless otherwise provided for by law and may be In the form of, but
0o H o cal not limited to, interest, fees, fines, and/or lease cancellation. A penalty schedule shall be prepared by
n'+ Lessor and shall become effective immediately after public notice. Said schedule may be changed from time
en 5 to time after public notice.
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N 7. LAW - The terms and conditions of this lease shall be performed and exercised subject to all laws,
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ni z rules, regulaticrs, orders, local ordinances or resolutions applicable to and binding upon the
N administration o£ lands and minerals arced by the County of Weld, and to laws, rules and regulations
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>+ governing oil and gas operations in Colorado. Violations shall result in penalties as provided for by law
W 4 or as set forth in the aforementioned schedule or shall, at the option of Lessor, result in default as
g' provided hereinafter.
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n� a' 8. SURRENDER - Lessee may at any time, by paying to Lessor all amounts then due as provided hereir,
surrender this lease insofar as the same covers all or any portion of the land herein leased and be relieved
al G+ from further obligations or liability hereunder with respect to the land so surrendered; provided that r.o
partial surrender or cancellation of this lease shall be for less than contiguous tracts of approximately
forty (40) acres or Governmental_ lot corresponding to a quarter-quarter section; provided further that this
surrender clause and the option herein reserved to Lessee shall cease and become absolutely inoperative
immediately and concurrently with the institution of any suit in any court of law by Lessee, Lessor or any
aseignee 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.
(Rev, 11/86)
9. ASSIGNMENTS -
(a) Lessee, with prior written consent of Lessor, shall have the right to assign the entire
leasehold interest of said Lessee in all or part of the land covered hereby, but not less, however,
than contiguous tracts of approximately forty (40) acres or Governmental lot corresponding to a
quarter-quarter section for any partial assignment, and for approval of such assignment Lessor shall
make an assignment charge in an amount to be determined by Lessor. Prior to written approval by Lessor
of assignment o£ this lease, Lessee (assignor) shall not be relieved of its obligations under the terms
and conditions herein. An assignment shall not extend the term of this lease.
c> 0 (b) If any assignment of a portion of the land covered hereby shall be approved, a new lease
^� U shall be issued to the assignee covering the assigned land, containing the same terms and conditions as
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this lease, and limited as to term as this lease is limited, and the assignor shall be released and
OU discharged from all further obligations and liabilities as to that portion so assigned.
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�l (c) Lessee shall notify Lessor of all assignments o£ undivided percentage or other interests.
CD W Said interests will not be recognized or approved by Lessor, and the effect of any such assignments
03
Ord will be strictly and only between the parties thereto, and outside the terms of this lease: and no
h W dispute between parties to any such assignment shall operate to relieve Lessee from performance of any
aterms or conditions hereof or to postpone the time therefor. Lessor shall at ell times be entitled to
O look solely to Lessee or his assignee shown on its books as being the sole owner hereof, and for the
W sending of all notices required by this lease and for the performance of all terms and conditions
00 hereof.
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ti P4 (d) Although not binding on Lessor, all instruments of every kind and nature whatsoever affecting
G4 this lease should be filed with the Lessor.
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� 10. OVERRIDING ROYALTY - Any and all reservations or assignments or overriding royalties stall be
„r-,, H subject to approval by Lessor. The total of said overriding royalties shall not exceed five percent (5k),
r4 including any overriding royalty previously provided for unless production exceeds a monthly average of
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o u) fifteen (15) barrels per day or ninety thousand cubic feet of gas per day (90 mum). In the event that
Wproduction drops to this amount or lest, any overriding royalties which exceed five percent (5k) may be
M D suspended. Lessor's approval of a reservation or assignment of an overriding royalty shall not bind Lessor
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r` h., for payment of said overriding royalty and shall not relieve Lessee of any of its obligations for payment of
M z royalties to Lessor as provided by ROYALTY paragraphs herein.
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o 11. OFFSET HELLS - Lessee agrees to protect the leased land from drainage by offset wells located on
O dd adjoining lands not owned by Lessor, when suet drainage is not compensated for by counter-drainage. It
Wx 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
en o r-- production from such offset well does not result in such drainage, or that the drilling of a well or wells
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N 'd' on the leased land would not accomplish the purposes of protecting the deposits under the leased lard.
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Lessor's decision as to the existence of such drainage shell be final, and Lessee shall comply with Lessor's
re Ga 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 or, 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 pool 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
(Rev. 11/84)
Pegr31—)
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.
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O 14. UNITIZATION - COMNUK IZATION - It the event Lessor permits the land herein leased to be included
N O within a eommunitizatioc or unitization agreement, the terms of this lease may be deemed to be modified to
U conform to such agreement. When only a portion of the land under this lease is committed by an agreement,
Ca Lessor may segregate the land and fesue a separate lease for each portion not committed thereunder; the term
o CO 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 shell be deemed to be modified to conform to such agreement.
O a Nonproducing leases shall terminate on the first anniversary date of the lease following the termination
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aqi date of the unit or pare thereof modifying the lease, but in no event prior to the end u£ the primary term
0 of the lease or the extension term of the lease.
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co a 15. PRODUCTION - Lessee shall, subject to applicable laws, regulations and orders, operate and produce
,a all wells upon the leased land so long as the same are capable of producing ir paying quantities, and shall
Lel operate the same so as to produce at a rate commensurate with the rate of production of wells on adjoining
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W lands within the same field and within the limits of good engineerlrg practice, except for such times as
o a there exist neither market nor storage therefor, and except for such limitations on or suspensions of
CP. U production as may be approved In writing by Lessor. Lessee shall be responsible for adequate site security
N Z on all producing properties.
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CO E 16. SflITt-II7 BELLS - If Lessee shall complete a well on the leased land productive of gas and Lessee is
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a unable to produce such gas due to a lack of suitable market therefor, Lessor may grant Lessee suspension of
cn a his obligations to produce hereunder until a suitable market for such gas can be found, and during any such
at W suspension period, it shall be deemed that gas is being produced hereunder In paying quantities. Except,
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M however, that beginning on the anniversary date next, of the year of an extension of the lease by reason of
N Z e shut-in well, Lessee stall pay to Lessor a abut-in royalty equal to $2 per acre of the lease per annum in
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C addition to the annual rental. The minimum emcunt of such shut-in royalty payment shall be 5240. Each
>4 year's shut-in royalty shall be forfeited to Lessor except for the shut-in royalty paid for the year during
C) which the well begins production. The maximum extension of the lease, due to the existence of a shut-in
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a well, shall be flue 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.
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H O 17. OPERATIONS - No exploration, drilling or production operation, including permanent installations,
O.l G. 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 ahall 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. L , 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; 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 011 and Gas Conservation Commission of Colorado, the
requirements of this paragraph for such information may be satisfied by such filing with said Commission,
except for copies of the reports as are required by the following paragraph, and provided that all such
information is immediately available to Lessor. Any proprietary information so submitted shall not be
subject to public inspection under Colorado law.
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(Rev. 11/86)
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.
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o U 19. BONDS - Lessee shall be liable for all damages to the surface of the lend, livestock, growing
crops, water wells, reservoirs, or improvements caused by Lessee's operations on said land. No operations
00 shall be commenced on the land hereinabove described unless and until Lessee shall have filed a good and
Cl sufficient bond with Lessor, in an amount to he fixed by Lessor, to secure the payment for such damages as
,.a may be caused by L 's operations on said land and to assure compliance with all the terms and provisions
044
of this lease, the lave of the State of Colorado, and the rules and regulations thereto appertaining. A
o Gr bond may be held in effect for the life of production of any well.
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0 FtE 20. SETTLENT - Lessee shall not remove any machinery, equipment or fixtures placed on said land,
U other than drilling equipment, nor draw the casing from any well unless and until all payments and
al obligations currently due Lessor under the terms of this lease shall have been paid or satisfied. Any
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,y machinery, equipment or fixtures left on this land for a period of more than six (6) months after the
•• 'm expiration hereof, shall automatically become the property o£ Lessor.
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21. OTHER DISCOVERY - Should Lessee discover any valuable gas,
W y products other than oil and as on or
rn U within the leased land, Lessee shall within seven (7) days report such discovery to Lessor, in which event
r2 Lessee and Lessor may negotiate a provision for production of such discovery.
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• W 22. WATER - This lease does not grant permission, express or implied, to Lessee for water exploration,
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o cA drilling, or establishing water wells without the written permission of the surface owner. If Lessor is the
Wsurface owner, said permission shall not be unreasonably withheld. If Lessee desires to establish or
rn D adjudicate any water right for beneficial use on the leased land, any such adjudication or application shall
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N W be in the name of Lessor if Lessor is the surface owner. The same shall apply to any nontributary water
cMv Z rights established on the leased land which may be put to beneficial use off said land.
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0 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 U � mP , gc governing Colorado oil
W and gas operations, Lessor is hereby authorized upon notice and hearing, as hereinafter provided, to cancel
a this lease as to all of the leased land so claimed or possessed by Lessee hereunder. In the event of any
el r N such default or failure, Lessor shall, before making any such cancellation, send to Lessee by certified
N 'v' mail, to the post office address of said lessee as shown by the records of Lessor, a notice of intention to
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cancel for such failure or default, specifying the same, stating that if within thirty (30) days from the
G' date of mailing said notice, Lessee shall correct such failure er default, no cancellation will be made. If
such 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 to
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 tern 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 o£ Lessor at double the rental for the primary
term hereof. }�
One:aa.�y 7
..
(Rev. 11/E6)
•
25. HOLD HARMLESS - Lessee shall indemnify Lessor against all liability and loss, and against all
claims and actions, including the defense of such claims or actions, based upon or arising out of damage or
injury, including death, to persons or property caused by or sustained in connection with operations on this
leased land or by conditions created thereby, or based upon any violation of any statute, ordinance, or
eD U regulation.
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y p this lease shall
rn O 26. CONDEMNATION - If the leased land shall be taken in an condemnation proceeding,
U automatically terminate as of the date of taking. She award for such condemnation shall be paid to Lessor,
.A7 except for any specific award(s) paid to Lessee for severed oil and gas reserves, in which event
o W XXXXXXXXXX of such specific award(s) shall be paid to Lessor in lieu of royalty lost by virtue of the
0 3 condemnation. Improvements shall be removed by Lessee per terms in the SETTLEMENT paragraph herein. If
o a only a portion of the leased land is taken by condemnation, Lessor may, at its option, terminate this lease
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or terminate only that portion of the lease so taken.
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U 27. ERRORS - Every effort is made by Lessor to avoid errors 1n all procedures including but no
o A!i limited to auction listings and lease preparation. Lessor shall not be liable for any inconvenience or loss
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.. w caused by errors which may occur. Lessee shall notify Lessor immediately upon discovery of any errors
or
� discrepancy whatever.
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W 28. ARCHAEOLOGY - Lessee shall not destroy, disturb, mar, collect, remove or altar any prehistoric or
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� U historic-saswrees of*any kind"on Wald County 1'pede as provided bq lar. These reewrces include but are no
r` z limited to all artifacts of atone, rood or metal, pictographs, structures, and bones. A discovery of
s• j anything of prehistoric or historic nature shall be reported to Lessor or the State of Colorado
m E' Archaeologist immediately.
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Tr) 29. DEFINITIONS -
en DI
MG+ (a) "Gas" as used herein shall mean all gases (combustible and noncombustible), including but no
N 2 limited to all gaseous hydrocarbons, gaseous compounds, carbon dioxide, and helium.
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o >+ (b) "Oil and gas" as used herein shall include all substances produced as by-products therewith,
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a including but not limited to sulfur.
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M (c) "paying quantities" as used herein shall mean and refer to quantities of oil and gas or o
IN N N either of them sufficient to pay for the current cost of producing same.
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14 w 30, HEIRS AND ASSIGNS - The benefits and obligations of this lease shall inure to and be binding upon
the heirs, legal representatives, successors or assigns of Lessees but no sublease or assignment hereof, or
of any interest herein, shall be binding upon Lessor until the same has been approved by Lessor as explained
in the ASSIGNMENTS' paragraph provided.
31. WARRANTY OF TITLE - Lessor does not warrant title to the leased premises, but it shall, upon
request, allow Lessee access to such abstracts and other title papers as it has in its files. There shall
be no obligation on Lessor's part to purchase new or supplemental or other title papers nor to do any
curative work in connection with title to the subject lands. All abstracts of title, whether new or
supplementary, obtained by L 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.
(Rev. 11/86)
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IN WITNESS WHEREOF, lessor has hereunto signed and caused its name to be signed by the HOARD OF COUNTY
COMMISSIONERS OF THE COUNTY OF WELD, with the seal of the office affixed, and Lessee has signed this
r. agreement, the day and year first above written.
HOARD UNIT COMMISSIONERS
COLORADO
ATTEST: Lly/�G
Weld County Clerk
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By: 404
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0 3 LESSEE: ANTELOPE ODUCTION COMPANY
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2 by: Peed Gilmore, Partner
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W STATE OF COLORADO )
to a ) SS.
.. w COUNTY OF WELD )
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a The fpregoiRE$ instrument was acknowledged before me this 7th day of August
•
o 4• 19 90 py Reed"Qilmore as Partner of Antelope Production Company, a general partnersnip,
°IU on beha,lf••aP•sai&cpartnership.
• Z Witness-'uy kind and•.offieial seal.
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C° A My Commis:Aim E3tp�rei: 40/6/92
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(Rev. 11/86)
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