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HomeMy WebLinkAbout930315.tiff RESOLUTION RE: APPROVAL OF REVISED SMALL TRACT OIL AND GAS LEASE FORM 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, the County Attorney staff has presented to the Board a revised Weld County Oil and Gas Lease form for small tracts to be used for parcels under five acres, and WHEREAS, the Board deemed it advisable to approve said revised form. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the revised Weld County Oil and Gas Lease form for small tracts be, and hereby is, approved for use on parcels under five acres. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 14th day of April, A.D. , 1993. /// BOARD OF COUNTY COMMISSIONERS ATTEST: WELD COUNTY, COLORADO alt Weld County Clerk to the Boar C�ej�j ,2,-2f-r, %x! ii-�� Constance e) L Haybert, Chairman BY: L- "l l �.- c t.4'LC�J Deputy Clerk to the Boa W. H. Webster, Pro- m l A TO FORM: v eorge /Baxter ounty Attorney a e"� K//. Hall / /Barbara J. Kirkmeye 930315 LE OOa j C c : c',-i WELD COUNTY OIL AND GAS LEASE (Small Tract) THIS AGREEMENT, made and entered into this day of , 19 , by and between WELD COUNTY, COLORADO, a political subdivision of the Sate of Colorado acting by and through the Board of County Commissioners of the County of Weld, c/o Weld County Centennial Center, 915 10th Street, Greeley, CO 80631, hereinafter called Lessor, and: hereinafter called Lessee. WITNESSETH, that Lessor, for and in consideration of the sum of , cash in hand paid, the receipt of which is hereby acknowledged, and the covenants and agreements hereinafter described, has granted, demised, leased and let, and by these presents does grant, demise, lease and let exclusively unto the said Lessee, the land hereinafter described, with the exclusive right for the purpose of mining, exploring by geophysical and other methods, and operating for and producing therefrom; oil and all gas of whatsoever nature or kind, with rights of way and easement for laying pipe lines, and erection of structures thereon to produce, save and take care of said products, all that certain tract of land situated in the County of Weld, State of Colorado, described as follows, to wit: Township North, Range West, 6th P.M. Section and containing acres, more or less. 1. It is agreed that the lease shall remain in force for a term of three (3) years from this date and as long thereafter as oil or gas of whatsoever nature or kind is produced from said leased premises or on acreage pooled therewith, or drilling operations are continued as hereinafter provided. If, at the expiration of the primary term of this lease, oil or gas is not being produced on the leased premises or on acreage pooled therewith but Lessee is then engaged in drilling or re-working operations thereon, then this lease shall continued in force so long as operations are being continuously prosecuted on the leased premises or on acreage pooled therewith; and operations shall be considered to be continuously prosecuted if not more than ninety (90) days shall elapse between the completion or abandonment of one well and the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on said land or on acreage pooled therewith, the production thereof should cease from any cause after the primary term, this lease shall not terminate if Lessee commences additional drilling or re-working operations within ninety (90) days from date of cessation of production or from date of completion of dry hole. If oil or gas shall be discovered and produced as a result of such operations; at or after the expiration of the primary term of this lease, this lease shall continue in force so long as oil or gas is produced from the leased premises or on acreage pooled therewith. 2. This is a PAID-UP LEASE. In consideration of the down cash payment, Lessor agrees that Lessee shall not be obligated, except as otherwise provided herein, to commence or continue any operations during the primary term. Lessee may at any time or times during or after the primary term surrender this lease as to all or any portion of said land and as to any strata or stratum by delivering to Lessor or by filing for record a release or releases, and be relieved of all obligation thereafter accruing as to the acreage surrendered. 3. In consideration of the premises the said Lessee covenants and agree to pay Lessor one-eighth (1/8) of the proceeds received by Lessee, payable monthly, for the oil, gas and other hydrocarbons produced and saved from the leased premises. 4. Where gas from a well capable of producing gas is not sold or used, Lessee may pay or tender as royalty to Lessor One Dollar per year per net mineral acre owned by Lessor and covered by this lease, such payment or tender to be made on or before the anniversary date of this lease next ensuing after the expiration of 90 days from the date such well is shut in and thereafter on or before the anniversary date of this lease during the period such well is shut in. If such payment or tender is made, it will be considered that gas is being produced within the meaning of this lease. 5. If said Lessor owns less than the entire oil and gas fee simple estate in the above described lands, then the royalties (including any shut-in gas royalty) herein provided for shall be paid the said Lessor only in the proportion which Lessor's interest bears to the entire oil and gas mineral fee simple estate. 1 K:\ctb\ViAEas Revised 3/93 Small Tract Oil and Gas Lease Page 2 6. Lessee shall have the right to use, free of cost or royalty, gas, oil and water produced on said land for Lessee's operations thereon, except water from the wells of Lessor. 7. When requested by Lessor, Lessee shall bury Lessee's pipe lines below plow depth. 8. No well shall be drilled nearer than 200 feet to any occupied building on said premises without the written consent of Lessor. 9. Lessee shall have the right at any time to remove all of Lessee's machinery and fixtures placed on said premises, including the right to draw and remove casing. 10. The rights of Lessor and Lessee hereunder may be assigned in whole or in part. No change in ownership of Lessor's interest (by assignment or otherwise) shall be binding on Lessee until Lessee has been furnished with notice, consisting of certified copies of all recorded instruments or documents and other information necessary to establish a complete chain of record title from Lessor, and then only with respect to payment thereafter made. No other kind of notice, whether actual or constructive, shall be binding upon Lessee. No present or future division of Lessor's ownership as to difference portions or parcels of said land shall operate to enlarge the obligations or diminish the rights of Lessee, and all Lessee's operations may be conducted without regard to any such division. If all or any part of this lease is assigned, no leasehold owner shall be liable for any act or omission of any other leasehold owner. 11. Lessee, at its option, is hereby given the right and power at any time and from time to time as a recurring right, either before or after production, as to all or any part of the land described herein and as to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the mineral estate covered by this lease with other land, lease or leases in the immediate vicinity for the production or oil and gas, or separately for the production or either, when in Lessee's judgment it is necessary or advisable to do so, and irrespective of whether authority similar to this exists with respect to such other land, lease or leases. Likewise, units previously formed to include formations not producing oil or gas may be reformed to exclude such non-producing formations. The forming or reforming of any unit shall be accomplished by Lessee executing and filing of record a declaration of such unitization or reformation, which declaration shall describe the unit. Any unit may include land upon which a well has theretofore been completed or upon which operations for drilling have theretofore been commenced. Production, drilling or reworking operations or a well shut in for want of a market anywhere on a unit which includes all or a part of this lease shall be treated as if it were production, drilling or reworking operation or a well shut in for want of a market under this lease. In lieu of the royalties elsewhere herein specified, including shut-in gas royalties, Lessor shall receive on production from the unit so pooled royalties only on the portion of such production allocated to this lease; such allocation shall be that proportion of the unit production that the total number of surface acres covered by this lease and included in the unit bear to the total number of surface acres in such unit. In addition to the foregoing, lessee shall have the right to unitize, pool or combine all or any part of the above described lands as to one or more of the formations thereunder with other lands in the same general area by entering into a cooperative or unit plan of development or operation approved by any governmental authority and, from time to time, with like approval, to modify, change or terminate any such plan or agreement and, in such event, the terms, conditions and provisions of this lease shall be deemed modified to conform to the terms, conditions and provisions of such approved cooperative or unit plan of development or operation and, particularly, all drilling and development requirements of this lease, express or impled, shall be satisfied by compliance with the drilling and development requirements of such plan or agreement, and this lease shall not terminate or expire during the life or such plan or agreement. In the event that said above described lands or any part thereof shall hereafter be operated under any such cooperative or unit plan of development or operation whereby the production therefrom is allocated to different portions of the land covered by said plan, then the production allocated to any particular tract of land shall, for the purpose of computing the royalties to be paid hereunder to Lessor, be regarded as having been produced from the particular tract of land to which it is allocated and not to any other tract of land; and the royalty payments to be made hereunder to Lessor shall be based upon production only as so allocated. Lessor shall formally express Lessor's consent to any cooperative or unit plan of development or operation adopted by Lessee and approved by any governmental agency by executing the same upon request of Lessee. 12. All express or implied covenants of this lease shall be subject to all Federal and State laws, executive orders, rules or regulations, and this lease shall not be terminated, in whole or in part, nor Lessee held liable in damages, for failure to comply therewith, if compliance is prevented by, or if such failure is the result of, any such Law, order, rule or regulation. 2 R:\ctb\oilgas �;�.0 :"S Revised 3/93 Small Tract Oil and Gas Lease Page 3 13. 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. Lessee shall have the right at any time to redeem for Lessor, by payment, any mortgages, taxes or other liens on the above described lands in the event of a default of payment by Lessor, and be subrogated to the rights of the holder thereof. 14. Lessee shall indemnify Lessor against all liability and loss, and against all claims and actions, including the defense of such claims or actions, based upon or arising out of damage or injury, including death, to persons or property caused by or sustained in connection with operations on this leased land or by conditions created thereby, or based upon any violation of any statute, ordinance or regulation. 15. 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 covering 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 or 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 or default, no cancellation will be made. If such failure or default is not corrected with 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 cancelled by operation of the paragraph without further action by Lessor, or further notice to Lessee. 16. All of the provisions of this lease shall be binding upon the heirs, personal representatives, successors and assigns of Lessor and Lessee. 17. Lessee shall not conduct operations of any kind upon the surface of the lands herein described without the express written consent of Lessor. IN WITNESS WHEREOF, this instrument is executed as of the date first above written. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST: Weld County Clerk to the Board By: LESSEE: By: STATE OF COLORADO ) ss. COUNTY OF WELD The foregoing instrument was acknowledged before me this day of , 199 , by • Witness my hand and official seal. My commission expires: Notary Public 3 R:\ctb\oilgas nLV 99 re c� OFFICE OF COUNTY ATTORNEY PHONE(303)356-4000 EXT.4391 P.O. BOX 1948 GREELEY,COLORADO 80632 C� April 9, 1993 COLORADO Aeon Energy Co. 777 South Wadsworth Building 4, Suite 215 Lakewood, CO 80226 Dear Sirs : On April 14 , 1993 the Weld County Attorney' s Office will recommend to the Board of County Commissioners of Weld County, Colorado that the Board consider adopting a new "Small Tract - Paid-Up" oil and gas lease form to be used for leases of Weld County property being five acres or less in size. A copy of the proposed lease form is enclosed. Weld County currently has a policy of waiving the bidding procedures for those tracts which are five acres or less in size. Such parcels are required to have a minimum $200 royalty bonus . The proposed lease form will correspond with the small tract leasing policy. The Weld County Attorney' s Office is proposing the enclosed lease form in order to simplify the leases for these small tracts . Please be informed that the Board of County Commissioners will consider the use of the "Small Tract - Paid-Up" oil and gas lease form at its meeting at 9 a .m. on April 14, 1993 in the First Floor Meeting Room, Weld County Centennial Center Complex, 915 Tenth Street, Greeley, Colorado. Please feel free to be present at that meeting in order to voice any thoughts which you may have regarding the use of the lease form for leases being five acres or less in size. If you should have any questions regarding this letter, please feel free to call me at 356-4000, Extension 4389 . 'Very/truly yours, , .-Bruce T Bark r Assistant Weld County Attorney Enclosure 1/ pc Clerk to the Board 930'.{� mEmoRAnDum Board of County Commissioners February 16, 1993 To Date Bruce T. Barker, Assistant County Attorney COLORADO From s"b;ectRequest by Bill Crews to Change Weld County Oil & Gas Lease Attached as Exhibit "A" is a copy of Weld County's current Oil and Gas Lease for all properties . This lease seems to have served the County well and has not been altered or amended since May of 1991 . It is based upon the oil and gas lease form used by the State of Colorado. As you may recall, Bill Crews asked the Board to waive its bidding requirement for the property which he wishes to lease on behalf of H & C Colton Company. Mr. Crews asked that his request be placed on the agenda for January 18, 1993 . The total number of mineral acres at issue is 3 . 717 . Attached as Exhibit "B" is a copy of the lease form which Mr. Crews proposes the County use for the lease to H & C Colton. Exhibit "B" is almost identical to Weld County' s normal lease form, with the exception that changes have been made to the assignments paragraph (# 9 ) and the overriding royalty paragraph (# 10) has been eliminated. Attached as Exhibit "C" is a form which Mr. Crews would like to have the County use on all tracts less than 40 acres in size. I met with Mr. Crews on the afternoon of February 10, 1993 . I told him that I would be happy to listen to his arguments as to why he would like to see the changes made to the Weld County lease form. Mr. Crews firmly believes that Weld County should adopt the "paid up" lease form which is Exhibit "C" for all tracts less than 40 acres in size. He believes it provides considerable advantages in terms of being able to deal with small acreages in a much more efficient manner. After talking with Mr. Crews on February 10, I realized that his proposed changes will take hours of work to consider. I talked with Tom David, County Attorney, about the amount of time which would be involved in the change of Weld County's lease form. Tom agreed with me in my assessment that we should not change one lease form for Mr. Crews without changing the lease form across the board for all oil and gas lessees . Tom and I are both interested in spending time on the lease form to make sure it is adequate for all of Weld County' s oil and gas leasing needs; however, our department 930315 Board of County Commissioners Page 2 February 16, 1993 currently does not have the time to spend on this endeavor. Mr. Crews would like to have the form changed within three weeks . We do not believe that is possible given our current time constraints . Mr. Crews also mentions that Weld County leased property to Eddy Oil Company in September, 1989, using the "Producer' s 88-Paid Up" lease form. Attached as Exhibit "D" is a copy of that lease. I am not entirely certain how Weld County agreed to the lease and the use of that form. Mr. Crews would like the Board to believe that by using the form on that one occasion in 1989 Weld County locked itself into using the form for all properties of like size in the future. I strongly recommend that the Board refrain from using any form for Mr. Crews other than the one which we use for all lessees (Exhibit "A" ) . There will be ample time in the future for the County Attorney' s Office to review the Weld County lease form with the generous assistance of Mr. Crews and personnel from other companies in the area. BTB/gb:ctbcrews Attachments Bruce T. Barker 930315 WELD COUNTY OIL AND GAS LEASE Containing acres, more or less: Containing net mineral acres, more or less: THIS LEASE AGREEMENT, dated this day of , 19 , made and entered into by and between WELD COUNTY, COLORADO, a political subdivision of the STATE OF COLORADO, acting by and through the BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD, for its respective interests, c/o BOARD OF COUNTY COMMISSIONERS, WELD COUNTY CENTENNIAL CENTER, 915 10TH STREET, GREELEY, CO 80631, hereinafter called Lessor, and: hereinafter called Lessee: UTINESSEIN WHEREAS, 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 $10.00, plus a bonus consideration of $ per mineral acre, fixed by Lessor as an additional consideration for the granting of this lease, and Lessee agrees to pay an annual rental of $ , computed at the rate of $ , per mineral acre or fraction thereof per year, and the following consideration: WHERFA9, all the requirements relative to said application have been duly complied with and said application has been approved and allowed by Lessor; THEREFORE, in consideration of the agreements herein, on the part of Lessee to be paid, kept and performed, Lessor does lease exclusively to Lessee for the sole and only purpose of drilling for, development of and production of oil and gas, or either of them, thereon and therefrom with the right to own all oil and gas so produced and saved therefrom and not reserved as royalty by Lessor under the terms of this lease, together with rights-of-way, easements and servitudes for pipelines, telephone and telegraph 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 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 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 day of , 19 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 in writing is granted by lessor; provided that such drilling or reworking operations are commenced during said primary term or any extension thereof or while this lease is in force by reason of production of oil and gas or either of them, or that such reworking is commenced within sixty days upon cessation of production for the purpose of re-establishing the same, and provided further that such production is commenced during such primary term or any extension thereof, or while this lease is in force by reason of sucA'drilling • or reworking operations or other production. EXHIBIT "A" (Revised 5/91) 1 930 315 ( EXPLORATION - Lessor reserves the right to conduct exploration on the leased land provided such exploration does not interfere with rights granted herein. In consideration of the premises, the parties covenant and agree as follows: 1. RENTAL - If this lease is extended for an additional term as provided for in the EXTENSION paragraph hereof, Lessee shall pay to lessor the sum of One Dollar ($1.00) per acre for the land covered hereby as delayed rental for the term of the extension. Rentals set at the time of established production shall be paid during the remaining life of this lease, annually, in advance, on or before each anniversary date hereof. There shall be no refund of unused rental. 2. ROYALTY - Lessee shall account for any and all substances produced on the leased land and Lessee shall pay to lessor as royalty, in addition to the rentals provided, but except for products used on the leased land, unavoidably lost or flared on the leased land, with approval of lessor, the following: A. On oil, 12.55 of the oil produced and saved from the leased land. At the option of Lessor, and with sixty (60) days' notice to Lessee, Lessor may take its royalty oil in kind, in which event Lessee shall deliver such royalty oil to Lessor on the leased land, free of cost or deduction, into the pipelines or storage tanks designated by Lessor, but Lessee shall not in such case be required to provide free tankage for any such oil for a longer period than one month after the same is run into tanks. With sixty (60) days' notice to Lessee, Lessor may cease taking oil royalty in kind. When paid in cash, the royalty shall be calculated upon the fair market value of the oil at the well which shall not be deemed to be less than the price actually paid to Lessee at the well by the purchaser thereof; and in no event shall the royalties be based upon a market value at the well less than the posted price in the field for such oil, or in the absence of a posted price in the field for such oil, upon a market value at the well less than the prevailing price received by other producers in the field for oil of like grade and gravity at the time such oil is run into pipelines or storage tanks. R. On gas, including casinghead gas or other gaseous substance, 12.55 of the fair market value at the well or of the price received by Lessee at the well, whichever is greater, of all gas produced and sold from the leased land or utilized off the land by Lessee. A copy of all contracts for sale of gas shall be furnished to Lessor. Where gas is sold under contract that has been approved by Lessor, the fair market value of such gas for determining the royalties payable hereunder shall be the price at which such gas is sold under such contract. No approval by Lessor of the terms of any such agreement shall operate to make Lessor a party thereto or obligate it thereunder in any way. At the option of Lessor, and with sixty (60) days' notice to Lessee, Lessor may take its royalty in kind. With sixty (60) days' notice to Lessee, Lessor may cease taking gas royalty in kind. C. All costs of marketing the oil and/or gas produced shall be borne by Lessee and such costs shall not directly or indirectly reduce the royalty payments to Lessor. Except that marketing costs for Lessor's in-kind royalty shall be borne by Lessor. D. If Lessor owns a lesser interest in the oil and gas deposits of the above-described land than the entire and undivided fee simple estate, then the royalties and rentals herein provided shall be paid to Lessor only in the portion which its interest bears to the whole and undivided fee, but no refund of any bonus. consideration shall be made by Lessor hereunder. (Reviaed 5/91) 2 930315 3. RECORDS - Lessee agrees to keep and to have in possession complete and accurate books and records showing the production end 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 tame to Lessor upon request along with purchaser's support documentation. Lessor will not be unreasonable with requests. All said books and records shall be retained by Lessee and made available in Colorado to Lessor for a period of not less than five years. 4. MEASUREMENTS - All production shall be accurately measured using standards established by the American Gas Association (AGA) and/or the American Petroleum Institute (API) and all measuring devices shall be tamperproof as nearly as possible. Oil royalties due within the terms of this lease shall be calculated on actual and accurate measurements within API standards unless a different means of measurement, subject to Lessor's approval, is provided. 5. PAYMENTS AND REPORTS - All payments and reports due hereunder shall be made on or before the day such payments and reports are due. Nothing in this paragraph shall be construed to extend the expiration of the primary term hereof. Oil royalty payments and supporting documents shall be submitted prior to the last day of the month following each month's sale of production, and gas royalty payments and supporting documents shall be submitted prior to the last day of the second month following each month's sale of production. All payments shall be made by cash, check, certified check, or money order. Payment having restrictions, qualifications, or encumbrances of any kind whatsoever shall not be accepted by Lessor. A penalty for a late payment shall be charged as set forth in the PENALTIES paragraph herein. 6. PENALTIES - A penalty shall be imposed for, but not limited to late payments, improper payments, operational deficiencies, violation of any covenant of this lease, or false statements made to Lessor. Penalties shall be determined by Lessor unless otherwise provided for by law and may be in the form of, but not limited to, interest, fees, fines, and/or lease cancellation. A penalty schedule shall be prepared by Lessor and shall become effective immediately after public notice. Said schedule may be changed from time to time after public notice. 7. LAW - The terms and conditions of this lease shall be performed and exercised subject to all laws, rules, regulations, orders, local ordinances or resolutions applicable to and binding upon the administration of lands and minerals owned by the County of Weld, and to laws, rules and regulations governing oil and gas operations in Colorado. Violations shall result in penalties as provided for by law or as set forth in the aforementioned schedule or shall, at the option of Lessor, result in default as provided hereinafter. 8. SURRENDER - Lessee may at any time, by paying to Lessor all amounts then due as provided herein, surrender this lease insofar as the same covers all or any portion of the land herein leased and be relieved from further obligations or liability hereunder with respect to the land so surrendered; provided that no partial surrender or cancellation of this lease shall be for less than contiguous tracts of approximately forty (40) acres or Governmental lot corresponding to a quarter-quarter section; provided further that this surrender clause and the option herein reserved to Lessee shall cease and become absolutely inoperative immediately and concurrently with the institution of any suit in any court of law by Lessee, Lessor or any assignee of either to enforce this lease, or any of its terms expressed or implied. In no case shall any surrender be effective until Lessee shall have made full provision for conservation of the leased products and protection of the surface rights of the leased land. (Revised 5/91) 3 930315 9. ASSIGNMENTS - A. Lessee, with prior written consent of Lessor, shall have the right to assign the entire leasehold interest of said Lessee in all or part of the land covered hereby, but not less, however, than contiguous tracts of approximately forty (40) acres or Governmental lot corresponding to a quarter- quarter section for any partial assignment, and for approval of such assignment Lessor shall make an assignment charge in an amount to be determined by Lessor. Prior to written approval by Lessor of assignment of this lease, Lessee (assignor) shall not be relieved of its obligations under the terms and conditions herein. An assignment shall not extend the term 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 term as this lease is limited, and the assignor shall be released and discharged from all further obligations and liabilities as to that portion so assigned. C. Lessee shall notify Lessor of all assignments of undivided percentage or other interests. Said interests will not be recognized or approved by Lessor, and the effect of any such assignments will be strictly and only between the parties thereto, and outside the terms of this lease: and no dispute between parties to any such assignment shall operate to relieve Lessee from performance of any terms or conditions hereof or to postpone the time therefor. Lessor shall at all times be entitled to look solely to Lessee or his assignee shown on its books as being the sole owner hereof, and for the sending of all notices required by this lease and for the performance of all terms and conditions hereof. D. Although not binding on Lessor, all instruments of every kind and nature whatsoever affecting this lease should be filed with the Lessor. 10. OVERRIDING ROYALTY - Any and all reservations or assignments or overriding royalties shall be subject to approval by Lessor. The total of said overriding royalties shall not exceed five percent (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 of gas per day (90 MCF/D). In the event 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 bind Lessor for payment of said overriding royalty and shall not relieve Lessee of any of its obligations for payment of royalties to Lessor as provided by ROYALTY paragraphs herein. 11. OFFSET WELLS - Lessee agrees to protect the leased land from drainage by offset 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 land. Lessor's decision as to the existence of such drainage shall be final, and Lessee shall comply with Lessor's order thereon or surrender this lease as to any such undeveloped acreage as designated by Lessor. 12. DEVELOPMENT - Upon discovery of oil and gas or either of them on the leased land, Lessee shall proceed with reasonable diligence to develop said land at a rate and to an extent commensurate with the economic development of the field in which the leased land lies. (Revised 5/91) 4 930315 13. POOLING CLAUSE - Lessee may at any time or times pool any part or all of said land or lease or any stratum or strata with other lands and 1 , stratum or strata, in the same field so as to constitute a spacing unit to facilitate an orderly or uniform well-spacing pattern or to comply with any order, rule, or regulation of the State or Federal regulatory or conservation agency having jurisdiction. Such pooling shall be accomplished or terminated by filing of record a declaration of pooling, or declaration of termination of pooling, and by mailing or tendering a copy to Lessor, or to the depository bank. Drilling or reworking operations upon or production from any part of such spacing unit shall be considered for all purposes of this lease as operations or productions from this lease. Lessee shall allocate to this lease the proportionate share of production which the acreage in this lease included in any such spacing unit bears to the total acreage in said spacing unit. 14. UNITIZATION - CQRfiNITIZATlON - In the event Lessor permits the land herein leased to be included within a communitization or unitization agreement, the terms of this lease may be deemed to be modified to conform to such agreement. When only a portion of the land under this lease is committed by an agreement, Lessor may segregate the land and issue a separate lease for each portion not committed thereunder; the term of such separate lease shall be limited as to the original term of this lease. The terms of the lease on that portion remaining in the unit shall be deemed to be modified to conform to such agreement. Nonproducing leases shall terminate on the first anniversary date of the lease following the termination date of the unit or part thereof modifying the lease, but in no event prior to the end of the primary term of the lease or the extension term of the lease. 15. PRODUCTION - Lessee shall, subject to applicable laws, regulations and orders, operate and produce all wells upon the leased land so long as the same are capable of producing in paying quantities, and shall operate the same so as to produce at a rate commensurate with the rate of production of wells on adjoining lands within the same field and within the limits of good engineering practice, except for such times as there exist neither market nor storage therefor, and except for such limitations on or suspensions of production as may be approved in writing by Lessor. Lessee shall be responsible for adequate site security on all producing properties. I6. SHUT-IN WELLS - If Lessee shall complete a well on the leased land productive of gas and Lessee is unable to produce such gas due to a lack of suitable market therefor, Lessor may grant Lessee suspension of his obligations to produce hereunder until a suitable market for such gas can be found, and during any such suspension period, it shall be deemed that gas is being produced hereunder in paying quantities. Except, however, that beginning on the anniversary date next, of the year of an extension of the lease by reason of a shut-in well, Lessee shall pay to Lessor a shut-in royalty equal to $2.00 per acre of the lease per annum in addition to the annual rental. The minimum amount of such shut-in royalty payment shall be $240. Each year's shut-in royalty shall be forfeited to Lessor except for the shut-in royalty paid for the year during which the well begins production. The maximum extension of the lease, due to the existence of a shut-in well, shall be five years beyond the extension term as described in the EXTENSION paragraph herein. The granting of any further extensions shall be at the sole option of Lessor. 17. OPERATIONS - No exploration, drilling or production operation, including permanent installations, shall be within 200 feet of any existing building or other improvement, including water 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; (Revised 5/91) 5 930315 and also a copy of all drill stem test results, core records and analyses, record of perforations and initial production tests, if any. If any of the information required by this paragraph is contained in reports required to be filed with the Oil and Gas Conservation Commission of Colorado, the requirements of this paragraph for such information may be satisfied by such filing with said Commission, except for copies of the reports as are required by the following paragraph, and provided that all such information is immediately available to Lessor. Any proprietary information so submitted shall not be subject to public inspection under Colorado law. Lessee shall bury pipelines below plow depth. Lessee shall set and cement sufficient surface casing to protect the fresh water wells of the area. 18. 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 for all damages to the surface of the land, livestock, growing crops, water wells, reservoirs, or improvements caused by Lessee's operations on said land. No operations shall be commenced on the land hereinabove described unless and until Lessee shall have filed a good and sufficient bond with Lessor, in an amount to be fixed by Lessor, to secure the payment for such damages as may be caused by Lessee's operations on said land and to assure compliance with all the terms and provisions of this lease, the laws of the State of Colorado, and the rules and regulations thereto appertaining. A bond may be held in effect for the life of production of any well. 20. SETTLEMENT - Lessee shall not remove any machinery, equipment or fixtures placed on said land, other than drilling equipment, nor draw the casing from any well unless and until all payments and obligations currently due Lessor under the terms of this lease shall have been paid or satisfied. Any machinery, equipment or fixtures left on this land for a period of more than six (6) months after the expiration hereof, shall automatically become the property of Lessor. 21. OTHER DISCOVERY - Should Lessee discover any valuable products other than oil and gas, on or within the leased land, Lessee shall within seven (7) days report such discovery to lessor, in which event Lessee and Lessor may negotiate a provision for production of such discovery. 22. WATER - This lease does not grant permission, express or implied, to Lessee for water exploration, drilling, or establishing water wells without the written permission of the surface owner. If Lessor is the surface owner, said permission shall not be unreasonably withheld. If Lessee desires to establish or adjudicate any water right for beneficial use on the leased land, any such adjudication or application shall be in the name of Lessor if Lessor is the surface owner. The same shall apply to any nontributary water rights established on the leased land which may be put to beneficial use off said land. 23. DEFAULT - Upon failure or default of Lessee to comply with any of the terms and provisions hereof including but not limited to the failure to comply with laws, rules and regulations governing Colorado oil and gas operations, Lessor is hereby authorized upon notice and hearing, 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 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 or default, no cancellation will be made. If such (Revised 5/91) 6 930315 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. No lease term will be extended for more than six (6) months from the original expiration date. B. That the Lessee shall pay to the Lessor the sum of one-third of the original bonus, with a minimum bonus of Ten Dollars ($10.00) per acre. C. The Lessee must pay to the Lessor the sum of One Dollar ($1.00) per acre leased as delayed rental for the term of the extension. D. That the royalty will remain the same. 25. HOLD HARMLESS - Lessee shall indemnify Lessor against all liability and loss, and against all claims and actions, including the defense of such claims or actions, based upon or arising out of damage or injury, including death, to persons or property caused by or sustained in connection with operations on this leased land or by conditions created thereby, or based upon any violation of any statute, ordinance, or regulation. 26. CONDEMNATION - If the leased land shall be taken in any condemnation proceeding, this lease shall automatically terminate as of the date of taking. The award for such condemnation shall be paid to Lessor, except for any specific award(s) paid to Lessee for severed oil and gas reserves, in which event of such specific award(s) shall be paid to Lessor in lieu of royalty lost by virtue of the condemnation. Improvements shall be removed by 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 whatsoever. 28. ARCHAEOLOGY - Lessee shall not destroy, disturb, mar, collect, remove or alter any prehistoric or historic resources of any kind on Weld County lands as provided by law. These resources include, but are not limited to, all artifacts of stone, wood or metal, pictographs, structures, and bones. A discovery of anything of prehistoric or historic nature shall be reported to Lessor or the State of Colorado Archaeologist immediately. 29. DEFINITIONS - A. "Gas" as used herein shall mean all gases (combustible and noncombustible), including but not limited to all gaseous hydrocarbons, gaseous compounds, carbon dioxide, and helium. B. "Oil and gas" as used herein shall include all substances produced as by-products therewith, including But not limited to sulfur. (Revised 5/91) 7 930315 C. "Paying quantities" as used herein shall mean and refer to quantities of oil and gas or of either of them sufficient to pay for the current cost of producing same. 30. HEIRS AND ASSIGNS - The benefits and obligations of this lease shall inure to and be binding upon the heirs, legal representatives, successors or assigns of Lessee; but no sublease or assignment hereof, or of any interest herein, shall be binding upon Lessor until the same has been approved by Lessor as explained in the ASSIGNMENTS' paragraph provided. 31. WARRANTY OF TITLE - Lessor does not warrant title to the leased premises, but it shall, upon request, allow Lessee access to such abstracts and other title papers as it has in its files. There shall be no obligation on Lessor's part to purchase new or supplemental or other title papers nor to do any curative work in connection with title to the subject lands. All abstracts of title, whether new or supplementary, obtained by Lessee and covering the subject lands shall become the property of and be delivered to Lessor after Lessee has completed its title examination and curative work, subject, however, to the right of Lessee to use such abstracts upon request at any time during the term of the lease. IN WITNESS WHEREOF, Lessor has hereunto signed and caused its name to be signed by the BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD, with the seal of the office affixed, and Lessee has signed this agreement, the day and year first above written. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST: Weld County Clerk to the Board By: Deputy Clerk to the Board LESSEE: STATE OF COLORADO ) ) ss COUNTY OF WELD The foregoing instrument was acknowledged before me this day of , 19 by Witness my band and official seal. My Commission Expires: Notary Public (Revised 3/91) a 930315 VELD CORM OIL AND GAS LEASE Containing 3. 717 acres, more or less: Containing 3. 717 net mineral acres, more or lases THIS LEASE AGREEMENT, dated this 18th day January 93 of , 19 , made and entered into by and between WELD COUNTY, COLORADO, • political subdivision of the STATE OF COLORADO, acting by and through the BOARD OF COUNTY COlt11SSIONERS OF THE COUNTY OF WELD, for its respective interests, c/o BOARD OF COUNTY 001111ISSIONERS, WELD COUNTY CENTENNIAL CENTER, 915 10TH STREET, GREELEY, CO 80631, hereinafter called Lessor, and, H & C Colton Company 621 17th Street, Suite 2600 Denver, CO 80293 hereinafter called Lassoes VITNESSETB WHEREAS, said Lessee has applied to Lessor for an oil and gas lease covering the Land herein described, and has paid a filing fa in the amount of $10.00, plus • bonus consideration of $ 200.00 1S etxiC4tiesaXitbii, fixed by Lessor as an additional consideration for the granting of this lease, and lessee agrees to pay an annual rental of 8 0 , computed at the rate of $ 0 , per mineral acre or fraction thereof per year, and the following consideration, WHEREAS, all the requirements relative to said application have been duly complied with and said application has been approved and allowed by Lessor; THEREFORE, in consideration of the agreements herein, on the part of Lessee to be paid, kept and performed, Lessor does lease exclusively to Lessee for the sole and only purpose of drilling for, development of and production of oil and gas, or either of them, thereon and therefrom with the right to own all oil and gas so produced and saved therefrom and not reserved as royalty by Lessor under the terms of this lease, together with rights-of-way, easements and servitudes for pipelines, telephone and telegraph 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 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 ATTACHED EXHIBIT A FOR DESCRIPTION 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 18t1-4y of January , 19 96 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 in writing is granted by lessor; provided that such drilling or reworking operations are commenced during said primary term or any extension thereof or while this lease is in force by reason of production of oil and gas or either of them, or that such reworking is commenced within sixty days upon cessation of production for the purpose of re-establishing the same, and provided further that such production is commenced during such primary term or any extension thereof, or while this lease is in force by reason of such drilling or reworking operations or other production. (Revised 5/91) 1 EXHIBIT "B" Saudis • 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 - u this lease is extended for an additional term as provided for in the EXTENSION paragraph hereof, lessee shall pay to lessor the sun of One Dollar ($1.00) per acre for the land covered hereby as delayed rental for the term of the extension. Rentals set at the time of established production shall be paid during the remaining life of this lease, annually, in advance, on or before ach anniversary date hereof. There shall be no refund of unused rental. 2. ROYALTY - lessee shall account for any and all substances produced on the leased land and Lessee shall pay to Lessor as royalty, in addition to the rentals provided, but except for products used on the leased land, unavoidably lost or flared on the leased land, with approval of Lessor, the following: A. On oil, 12.5f of the oil produced and saved from the leased land. At the option of Lessor, and with sixty (60) days' notice to Lessee, Lessor may take its royalty oil in kind, in which event Lessee shall deliver such royalty oil to Lessor on the leased Land, free of cost or deduction, into the pipelines or storage tanks designated by Lessor, but Lessee shall not in such case be required to provide free tankage for any such oil for a longer period than one month after the sea is run into tanks. With sixty (60) days' notice to Lessee, Lessor may cease taking oil royalty in kind. When paid in cash, the royalty shall be calculated upon the fair market value of the oil at the well which shall not be deemed to be less than the price actually paid to Lessee at the well by the purchaser thereof; and in no event shall the royalties be based upon a market value at the well less than the posted price in the field for such oil, or in the absence of a posted price in the field for such oil, upon a market value at the well less than the prevailing price received by other producers in the field for oil of like grade and gravity at the time such oil is run into pipelines or storage tanks. B. On gas, including casiughead gas or other gaseous substance, 12.51 of the fair market value at the well or of the price received by Lessee at the well, whichever is greater, of all gas produced and sold from the leased land or utilized off the land by Lessee. A copy of all contracts for sale of gas shall be furnished to Lessor. Where gas is sold under contract that has been approved by Lessor, the fair market value of such gas for determining the royalties payable hereunder shall be the price at which such gas is sold under such contract. No approval by Lessor of the terms of any such agreement shall operate to make Lessor a party thereto or obligate it thereunder in any way. At the option of lessor. and with sixty (60) days' notice to Lessee, Lessor may tale its royalty in kind. With sixty (60) days' notice to Lessee, Lessor may cease taking gas royalty in kind. C. All costs of marketing the oil and/or gas produced shall be borne by Lessee and such coats shell not directly or indirectly reduce the royalty payments to Lessor. Except Chet marketing costs for lessor's in-kind royalty shell 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. (Revised 5/91) 2 930315 • 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 canine 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. MEASUREMETS - All production shall be accurately measured using standards established by the American Ces Association (AGA) and/or the American Petroleum Institute (API) and all measuring devices shall be tamperproof as nearly as possible. Oil royalties due within the terms of this lease shall be calculated on actual and accurate measurements within API standards alas a different means of measurement, subject to Lessor's approval, is provided. S. PAYMENTS MD REPORTS - All payments and reports due hereunder shall be made on or before the day such Payments and reports are due. Nothing in this paragraph shall be construed to extend the expiration of the primary term hereof. Oil royalty payments and supporting documents shell be submitted prior to the last day of the month following each month's sale of production, and gas royalty payments and supporting documents shall be submitted prior to the last day of the second month following each month's sale of production. All payments shall be made by cash, check, certified check, or money order. Payment having restrictions, qualifications, or encumbrances of any kind whatsoever shall not be accepted by Lessor. A penalty for a late payment shall be charged as set forth in the PENALTIES paragraph herein. 6. PENALTIES - A penalty shall be imposed for, but not limited to late payments, iapropsr payments, operational deficiencies, violation of any covenant of this lease, or felse statements made to Lessor. Penalties shall be determined by Lessor unless otherwise provided for by law and may be in the form of, but not limited to, interest, fees, fines, and/or lease cancellation. A penalty schedule shall be prepared by Lessor and shall become effective immediately after public notice. Said schedule may be changed from time to time after public notice. 7. LAW - The terms and conditions of this lease shall be performed and exercised subject to all laws, rules, regulations, orders, local ordinances or resolutions applicable to and binding upon the administration of lands and minerals owned by the County of Weld, and to laws, rules and regulations governing oil and gas operations in Colorado. Violations shall result in penalties as provided for by law or as set forth in the aforementioned schedule or shall, at the option of Lessor, result in default as provided hereinafter. 8. SURRENDER - Lessee may at any time, by paying to Lessor all amounts then due as provided herein, surrender this lease insofar as the same covers all or any portion of the land herein leased and be relieved free 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 lass than contiguous tracts of approximately forty (40) acres or Governmental lot corresponding to a quarter-quarter section; provided further that this surrender clause and the option herein reserved to Lessee shall cease and become absolutely inoperative immediately and concurrently with the institution of any suit in any court of law by Lessee, Lessor or any assignee of either to enforce this lease, or any of its terms expressed or implied. In no case shall any surrender be effective until Lessee shall have made full provision for conservation of the leased products and protection of the surface rights of the leased land. (Revised 5/91) 3 930315 9. ASSIGNMENTS - /all A. Le..ea /all or part of IttlXP*SCPCNX$CCOccxQsaeKKX01X 5CAMCCf shall have the right to assign the ',mkt), leasehold interest of said Lessee in ■11 or part of the land covered hereby, 1w--M•--1ee contiguous tracts of approximately forty (40) acres or Govarsental lot co to a quarter- quarter section for any partial assignment, and for a uch assignment Lessor shall make an assignment charge in am amount to ned by Lessor. Prior to written approval by Lessor of assignment of th , saes (assignor) shall not be relieved of its obligations under the terms S. to the assignee covering the assigned land, containing the tam t ons as this lease, and limited as to term as this le , an the assignor shall be released and discharged from all C. Lessee shall rd A9Cr CoQr9tpp,7gfXa11 assignments of undivided percentage or other interests. interests will not be recognised or approved by Lessor, and the effect of any such • ants will be strictly and only between the parties thereto, and outside the this lean and no dispute between parties to any such assignment shall o relieve Lessee from performance of any terms or conditions hereof or to post time therefor. Lessor shall at all times be entitled to look solely to Lease assignee shown on its books as being the sole owner hereof, and for the sending D. Although not binding on Lessor, all instruments of every kind and nature whatsoever affecting this lease should be filed with the Lessor. 10. approval by Lessor. The total of said overriding royalties shall not exceed five pert , including any overriding royalty previously provided for unless production exceeds y average of fifteen (15) barrels per day or ninety thousand cubic feet of gee per Cy/D). In the event production drops to this amount or lea, any overriding royal ' c exceed five percent (5%) may be suspended. Lessor's approval of • reservation o nt of an overriding royalty shall not bind Lessor for payment of said overriding ro nd shall not relieve Lessee of any of its obligations for payment of royalties to Lessor 11. OFFSET YELLS - 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 land. Lessor's decision as to the existence of such drainage shall be final, and Lessee shall comply with Lessor's order thereon or surrender this lease as to any such undeveloped acreage as designated by Lessor. 12. DEVELOPMENT - Upon discovery of oil and gas or either of them on the leased land, Lessee shall proceed with reasonable diligence to develop said land at ■ rate and to an extent commensurate with the economic development of the field in which the leased land lies. (Revised 5/91) 4 930315 • 13. POOLING CLAUSE - Lessee may at any time or times pool any part or all of said land or lease or any stratum or strata with other lands and 1 , stratum or strata, in the same field so as to constitute • spacing unit to facilitate an orderly or uniform well-spacing pattern or to comply with any order, rule, or regulation of the State or Federal regulatory or conservation agency having jurisdiction. Such pooling shall be accomplished or terminated by filing of record a declaration of pooling, or declaration of termination of pooling, and by mailing or tendering a copy to Lessor, or to the depository bank. Drilling or reworking operations upon or production from any part of such spacing unit shall be considered for all purposes of this lease as operations or productions from this lease. Lessee shall allocate to this lease the proportionate share of production which the acreage in this lease included in any such spacing unit bears to the total acreage in said spacing unit. 14. UNITIZATION - CQtUNITIZITION - In the event Lessor permits the land herein leased to be included within • comunitisation or unitization agreement, the terms of this lease may be deemed to be modified to conform to such agreement. When only • portion of the land under this lease is committed by an agreement, Lessor may segregate the land and issue • separate lease for each portion not committed thereunder; the term of such separate lease shall be limited as to the original term of this lease. The terms of the lease on that portion remaining in the unit shall be deemed to be modified to conform to such agreement. Nonproducing 1 hall terminate on the first anniversary date of the lease following the termination date of the unit or part thereof modifying the lease, but it no event prior to the end of the primary term of the lease or the extension term of the lease. 13. PRODUCTION - Lessee shall, subject to applicable laws, regulations and orders, operate and produce all wells upon the lased land so long as the same are capable of producing in paying quantities, and shall operate the same so as to produce at • rate comensurate with the rate of production of wells on adjoining lands within the same field and within the limits of good engineering practice, except for such times as there exist neither market nor storage therefor, and except for such limitations on or suspensions of production as may be approved in writing by Lessor. L hall be responsible for adequate site security on all producing properties. 16. SHUT-IN WELLS - If Lessee shall complete a well on the leased land productive of gas and Lessee is unable to produce such gas due to a lack of suitable market therefor, Lessor may grant lessee suspension of his obligations to produce hereunder until • 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 • abut-in well, Lessee shall pay to Lessor a shut-in royalty equal to $2.00 per acre of the lease per in addition to the annual rental. The minimum amount of such shut-in ro y y alt payment shall be gikOc each�� ch 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. Ile maximum extension of the lease, due to the existence of a shut-in well, shall be five years beyond the extension term as described in the EXTENSION paragraph herein. The granting of any further extensions shall be at the sole option of Lessor. 17. OPERATIONS - No exploration, drilling or production operation, including permanent installations, shall be within 200 feet of any existing building or other improvement, including water 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 eet, and the total depth of each well drilled. Le , within thirty (30) days after the completion or abandonment of any well drilled hereunder, shall file in the office of Lessor • 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; (Revised 5/91) y 930315 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 Cu Conservation Comiesion of Colorado, the requirements of this paragraph for such information may be satisfied by such filing with said Commission, except for copies of the reports as are required by the following paragraph, and provided that all such information is immediately available to Lessor. Any proprietary information so submitted shall not be subject to public inspection under Colorado law. Lessee shall bury pipelines below plow depth. Lessee shall set and cement sufficient surface cuing to protect the fresh water wells of the area. 18. IIOTIFICATION - 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. Lease shall notify Lessor before commencing to plug and abandon any well by copy of Lessee's request for approval or sundry notice of intent to plug and abandon. 19. BONDS - Lessee shall be liable for all damages to the surface of the land, livestock, growing crops, water wells, reservoirs, or improvements caused by Lessee's operations on said land. No operations shall be commenced on the land hereinabove described unless and until Lessee shall have filed a good and sufficient bond with Lessor, in an amount to be fixed by Lessor, to secure the payment for such damages as may be caused by Lessee's operations on said land and to assure compliance with all the terms and provisions of this lease, the laws of the State of Colorado, and the rules and regulations thereto appertaining. A bond may be held in effect for the life of production of any well. 20. SETTLEMENT - Lessee shall not remove any machinery, equipment or fixtures placed on aid land, other than drilling equipment, nor draw the casing from any well unless and until all payments and obligations currently due Lessor under the terms of this lease shall have been paid or satisfied. Any machinery, equipment or fixtures left on this Land for • period of more than six (6) months after the expiration hereof, shall automatically become the property of Lessor. 21. OTHER DISCOVERY - Should Lessee discover any valuable products other than oil and gas, on or within the leased land, Lessee shall within seven (7) days report such discovery to Lessor, in which event Levu sod Lessor may negotiate a provision for production of such discovery. 21. WATER - This lease does not grant permission, express or implied, to Lessee for water exploration, drilling, or establishing water wells without the written permission of the surface owner. If Lessor is the surface owner, said permission shall not be unreasonably withheld. If Lessee desires to establish or adjudicate any water right for beneficial use on the leased land, any such adjudication or application shall be in the name of Lessor if Lessor is the surface owner. The same shall apply to any nontributary recur rights established on the leased Land which may be put to beneficial use off said land.. 23. DEFAULT - Upon failure or default of Lessee to comply with any of the terms and provisions hereof including but not limited to the failure to comply with laws, rules and regulations governing Colorado oil and gas operations, Lessor is hereby authorised upon notice and hearing, as hereinafter provided, to cancel this lean as to all of the leased land so claimed or p d by lessee hereunder. In the event of any such default or failure, Lessor shall, before making any such cancellation, send to Lease by certified mail, to the post office address of said lessee as shown by the records of Lessor, • 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 or default, no cancellation will be made. If such (Revised 5/91) 6 930315 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 lass... 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 tsra hereof, Las•• may make written application to Lssor for an extension of this lease. The granting of such extension shall be at the sole option of Lessor, according to the following conditional A. No lass• term will be extended for more than six (6) months from the original expiration date. B. That the Lessee shall pay to the Lessor the sum of one-third of the original bonus, with a minimum bonus of Ten Dollars ($10.00) per acre. C. The Lessee must pay to the Lessor the sum of One Dollar (31.00) per acre leased as delayed rental for the term of the extension. D. That the royalty will remain the same. 25. BOLD BARNLESS - Lasses shall indemnify Lessor against all liability and loss, and against all claims and actions, including the defense of such claims or actions, based upon or arising out of damage or injury, including death, to persons or property caused by or sustained in connection with operations on this leased land or by conditions created thereby, or based upon any violation of any statute, ordinance, or regulation. 26. CONDEMNATION - If the leased land shall be taken in may condemnation proceeding, this Inge shall automatically terminate as of the date of taking. The award for such condemnation shall be paid to Lessor, except for any specific award(s) paid to Lases for severed oil and gas reserves, in which event 12.5% of such specific awards) shall be paid to Lessor in lieu of royalty lost by virtue of the condemnation. Improvements shall be removed by Lea•• per terms in the SrfTLEKENT 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 mad, by Lessor to avoid errors in all procedures including but not limited to auction listings and lease preparation. Lessor shall not be liable for any inconvenience or loss caused by errors which may occur. Lessee shall notify Lessor immediately upon discovery of any errors or discrepancy whatsoever. 28. ARCRAEOLOGT - Leaes shall not destroy, disturb, mar, collect, remove or alter any prehistoric or historic resources of arty kind on Weld County lands as provided by law. These reaourcse include, but are not limited to, all artifacts of atone, wood or metal, pictographs, structures, and bones. A discovery of anything of prehistoric or historic nature shall be reported to Lessor or the State of Colorado Archaeologist immediately. 29. DEFINITIONS - A. "Gas' as used herein shall mean all gases (combustible and noncombustible), including but not limited to all gaseous hydrocarbons, gaseous compounds, carbon dioxide, and helium. B. "Oil and gas" as used herein shall include all substances produced as by-products therewith, including But not limited to sulfur. (Revised 5/91) 7 930315 • C. "Paying quantities" as used herein shall mean and refer to quantities of oil and gas or of either of them sufficient to pay for the current cost of producing same. 30. HEIRS AND ASSIGNS - The benefits and obligations of this lease shall inure to and be binding upon the hairs, legal representatives, successors or assigns of Lessee; but no sublease or assignment hereof, or of any interest herein, shall be binding upon Lessor until the same has been approved by Lessor as explained in the ASSIGNMENTS' paragraph provided. 31. WARRANTY OF TITLE - Lessor does not warrant title to the leased premises, but it shall, upon request, allow Lessee access to such abstracts and other title papers as it has in its files. There shall be no obligation on Lessor's part to purchase new or supplemental or other title papers nor to do any curative work in connection with title to the subject lands. All abstracts of title, whether new or supplementary, obtained by Lessee and covering the subject lands shall become the property of and be delivered to lessor after Lessee has completed its title examination and curative work, subject, however, to the right of Lessee to use such abstracts upon request at any time during the term of the lease. IN WITNESS WHEREOF. Lessor has hereunto signed and caused its name to be signed by the BOARD OF COUNTY C@ff1SSICNERS OF TEE COUNTY OF WED, with chit seal of the office affixed, and Lessee has signed this agreement, the day and year first above written. BOARD OF COUNTY COttiSSI0NERS WELD COUNTY, COLORADO ATTEST: Weld County Clerk to that Board Dy; Deputy Clerk to that Board LESSEE, H & C Colton Company by: William G. Crews, Agent STATE OF COLORADO ) ) as COUNT OF WELD The foregoing instrument was acknowledged before me this 14th day of January 1993 by William C. Crews as Agent for H & C Colton Company, a general partnership, on behalf Witness my band and official seal. of said partnership. My Commission Expires: Notary Public (Revised 5/91) 8 Anna C Exhibit A Oil and Gas Lease dated Janaury 18, 1993 Weld County/H & C Colton Company The lands covered by this lease are situated in the County of Weld, State of Colorado, and are described as follows, to wit: Township 5 North, Range 66 West, 6th P.M. Section 34: A strip of land, 100 feet in width, running across the Nl/2SWY of said Section 34, being the same strip, insofar as it crosses said N' SWYo, described in that certain Deed from County recorded in Book 1135 at Page 126. Notwithstanding the specificity of the above description or descriptions in prior deeds, this lease shall cover all lands owned by Lessor in said NVZSW'. The above tract contains 3.317 acres, more or less. 930315 PRODUCERS 88-PAID UP WELD COUNTY OIL AND GAS LEASE Rev. 1/93 THIS AGREEMENT,made and entered into this day of , 19 by and between WELD COUNTY,COLORADO,a political subdivision of the Sate of Colorado acting by and through the Board of County Commissioners of the County of Weld, c/o Weld County Centennial Center, 915 10th Street, Greeley, CO 80631, hereinafter called Lessor, and: hereinafter called Lessee. WITNESSETH, that Lessor, for and in consideration of the sum of Two Hundred Dollars ($200),cash in hand paid,the receipt of which is hereby acknowledged, and the covenants and agreements hereinafter described, has granted, demised,leased and let, and by these presents does grant,demise, lease and let exclusively unto the said Lessee, the land hereinafter described, with the exclusive right for the purpose of mining, exploring by geophysical and other methods, and operating for and producing therefrom; oil and all gas of whatsoever nature or kind,with rights of way and easement for laying pipe lines,and erection of structures thereon to produce, save and take care of said products, all that certain tract of land situated in the County of Weld, State of Colorado, described as follows, to wit: and containing acres, more or less. 1. It is agreed that the lease shall remain in force for a term of three (3)years from this date and as long thereafter as oil or gas of whatsoever nature or kind is produced from said leased premises or on acreage pooled therewith, or drilling operations are continued as hereinafter provided. If, at the expiration of the primary term of this lease, oil or gas is not being produced on the leased premises or on acreage pooled therewith but Lessee is then engaged in drilling or re-working operations thereon, then this lease shall continued in force so long as operations are being continuously prosecuted on the leased premises or on acreage pooled therewith; and operations shall be considered to be continuously prosecuted if not more than ninety(90)days shall elapse between the completion or abandonment of one well and the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on said land or on acreage pooled therewith, the production thereof should cease from any cause after the primary term, this lease shall not terminate if Lessee commences additional drilling or re-working operations within ninety(90) days from date of cessation of production or from date of completion of dry hole. If oil or gas shall be discovered and produced as a result of such operations; at or after the expiration of the primary term of this lease,this lease shall continue in force so long as oil or gas is produced from the leased premises or on acreage pooled therewith. 2. This is a PAID-UP LEASE. In consideration of the down cash payment,Lessor agrees that Lessee shall not be obligated,except as otherwise provided herein,to commence or continue any operations during the primary term. Lessee may at any time or times during or after the primary term surrender this lease as to all or any portion of said land and as to any strata or stratum by delivering to Lessor or by filing for record a release or releases,and be relieved of all obligation thereafter accruing as to the acreage surrendered. 3. In consideration of the premises the said Lessee covenants and agrees: 1st. To deliver to the credit of Lessor,free of cost,in the pipe line to which Lessee may connect wells on said land, the equal one-eighth(1/8) part of all oil produced and saved from the leased premises. Lessee may from time to time purchase any royalty oil, paying therefor the market value in the field where produced on the day it is run to the pipe line or sold from storage tanks of Lessee. EXHIBIT "C" 1 .J~bat s 2nd. To pay Lessor one-eighth(1/8) of the proceeds received by Lessee each year,payable quarterly, for the gas from each well where gas only is found,while the same is being used off the premises, and if used in the manufacture of gasoline a royalty of one-eighth(1/8),payable monthly at the prevailing market rate for gas, but in no case shall such market rate be deemed more than Lessee actually receives from the sale of such gas. 3rd. To pay Lessor for gas produced from any oil well and used off the premises or in the manufacture of gasoline or any other product a royalty of one-eighth(1/8) of the proceeds received by Lessee from the sale of such gas. 4. Where gas from a well capable of producing gas is not sold or used,Lessee may pay or tender as royalty to Lessor One Dollar per year per net mineral acre owned by Lessor and covered by this lease, such payment or tender to me made on or before the anniversary date of this lease next ensuing after the expiration of 90 days from the date such well is shut in and thereafter on or before the anniversary date of this lease during the period such well is shut in. If such payment or tender is made, it will be considered that gas is being produced within the meaning of this lease. 5. If said Lessor owns a less interest in the above described land than the entire and undivided fee simple estate therein,then the royalties(including any shut-in gas royalty)herein provided for shall be paid the said Lessor only in the proportion which Lessor's interest bears to the whole and undivided fee. 6. Lessee shall have the right to use, free of cost, gas,oil and water produced on said land for Lessee's operations thereon, except water from the wells of Lessor. 7. When requested by Lessor, Lessee shall bury Lessee's pipe lines below plow depth. 8. No well shall be drilled nearer than 200 feet to any house or barn now on said premises without written consent of Lessor. 9. Lessee shall pay for damages caused by Lessee;s operations to growing crops on said land. 10. Lessee shall have the right at any time to remove all machinery and fixture placed on said premises, including the right to draw and remove casing. 11. The rights of Lessor and Lessee hereunder may be assigned in whole or in part. No change in ownership of Lessor's interest (by assignment or otherwise) shall be binding on Lessee until Lessee has been furnished with notice,consisting of certified copies of all recorded instruments or documents and other information necessary to establish a complete chain of record title from Lessor, and then only with respect to payment thereafter made. No other kind of notice, whether actual or constructive, shall be binding upon Lessee. No present or future division of Lessor's ownership as to difference portions or parcels of said land shall operate to enlarge the obligations or diminish the rights of Lessee, and all Lessee's operations may be conducted without regard to any such division. If all or any part of this lease is assigned,no leasehold owner shall be liable for any act or omission or any other leasehold owner. 12. Lessee, at its option, is hereby given the right and power at any time and from time to time as a recurring right, either before or after production, as to all or any part of the land described herein and as to any one or more of the formations hereunder,to pool or unitize the leasehold estate and the mineral estate covered by this lease with other land, lease or leases in the immediate vicinity for the production or oil and gas, or separately for the production or either, when in Lessee;s judgment it is necessary or advisable to do so, and irrespective of whether authority similar to this exists with respect to such other land, lease or leases. Likewise, units previously formed to include formations not producing oil or gas may be reformed to exclude such non- producing formations. The forming or reforming of any unit shall be accomplished by Lessee executing and filing of record a declaration of such unitization or reformation,which declaration shall describe the unit. Any unit may include land upon which a well has theretofore been completed or upon which operations for drilling have theretofore been commenced. Production,drilling or reworking operations or a well shut in for want of a market anywhere on a unit which includes all or a part of this lease shall be treated as if it were production, drilling or reworking operation or a well shut in for want of a market under this lease. In lieu of the royalties elsewhere herein specified,including shut-in gas royalties,Lessor shall receive on production from the unit so pooled royalties only on the portion of such production allocated to this lease; such allocation shall be that proportion of the unit 2 930315 production that the total number of surface acres covered by this lease and included in the unit bear to the total number of surface acres in such unit. In addition to the foregoing,lessee shall have the right to unitize,pool or combine all or any part of the above described lands as to one or more of the formations thereunder with other lands in the same general area by entering into a cooperative or unit plan of development or operation approved by any governmental authority and,from time to time,with like approval,to modify,change or terminate any such plan or agreement and,in such event,the terms,conditions and provisions of this lease shall be deemed modified to conform to the terms,conditions and provisions of such approved cooperative or unit plan of development or operation and, particularly, all drilling and development requirements of this lease, express or impled, shall be satisfied by compliance with the drilling and development requirements of such plan or agreement, and this lease shall not terminate or expire during the life or such plan or agreement. In the event that said above described lands or any part thereof shall hereafter be operated under any such cooperative or unit plan of development or operation whereby the production therefrom is allocated to different portions of the land covered by said plan,then the production allocated to any particular tract of land shall,for the purpose of computing the royalties to be paid hereunder to Lessor,be regarded as having been produced from the particular tract of land to which it is allocated an not to any other tract of land; and the royalty payments to be made hereunder to Lessor shall be based upon production only as so allocated. Lessor shall formally express Lessor's consent to any cooperative or unit plan of development or operation adopted by Lessee and approved by any governmental agency by executing the same upon request of Lessee. 13. All express or implied covenants of this lease shall be subject to all Federal and State laws, executive orders, rules or regulations, and this lease shall not be terminated, in whole or in part, nor Lessee held liable in damages,for failure to comply therewith,if compliance is prevented by,or if such failure is the result of, any such law, order, rule or regulation. 14. 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. Lessee shall have the right at any time to redeem for Lessor, by payment, any mortgages,taxes or other liens on the above described lands in the event of a default of payment by Lessor, and be subrogated to the rights of the holder thereof. 15. All of the provisions of this lease shall be binding upon the heirs,personal representatives, successors and assigns of Lessor and Lessee. 16. Lessee shall not conduct operations of any kind upon the surface of the lands herein described without the express written consent of Lessor. IN WITNESS WHEREOF, this instrument is executed as of the date first above written. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST: Weld County Clerk and Recorder and Clerk to the Board by: 3 930315 LESSEE: STATE OF COLORADO ) ss. COUNTY OF WELD ) The foregoing instrument was acknowledged before me this day of , 19 , by Witness my hand and official seal. My commission expires: Notary Public 4 930315 �i �..c�, u A ps c SI 'l S0)Y h'APn . ;°1t{"Slftant , dl ,$( wry i' • F if'(G 41 ic • v1 Wm; . D j aV 1�ttri,1j t.:. . ).. I #)� I AR2191.6V7 •' t4 ,,i ( r1 pe r I : a `)h s Pj4•. ' liODU(7P,µS Iw.pniD Ur WELD COUNTY OIL AND OAS LEASE (pbp*SI4 ta.. ..I Itev.5.n,N,.2 Jt It a I hits" �t(` ss: OM warmly) ap 1' .114+11 ) rd 1 aa r1.2,;•••••'45�,o„.t A, a j 11115 AGRU'AII:HT,made and entered Icon this nth day of September,In19,by and bonen1Vfa.D COUNTY,COLORADO, .1,..,„' �K'.4....41/17:41,,rt slit;/r}'Txt kr,911�sf'w n O a pJitiral n y Centennial d the saw of 3 lOt?.dn a<ung M moil theta SO the RrvW of County lessor,and of EDDY County of Weld,c/ e. w n.g' 4 ..41.. ) O a NldJ Ciutioy Centennial Center.VIS SM. Slraet,Gnelsy,CO IhMJI,hereinafter called Twee,and EDDY OIL COMPANY,a rs arlw 1:1 'l *141114 ( ll h l•, - C,lound i cog.ntem,1412 S..laming.Aurora CO WN112,hue n dlr called lessee. 1�f.F r� li fP w' s , .a O SS ::43.'il:t1:4:,P S j p { :JNf INI_¢q:111,that Screws,In and in nm.Wdrahrn of the turn of'IWs I Its deed Dollars(3200),cash in hind pa d,the receiptM{ f1� ^'•iA,t�'ytwiplr' Q by which n Mnly acknn.IN{J nJ I e ntnnletu and agreements here nafter described,has granted,demise,e lensed and let,andy-t/ ({ yantyjk pp `Is �� t .) ly thew pews nu dsa gent sl I se and let exclusively unto tie said Inset,the land here nafter described,with the=elusive �4 I t+Y )i gt ,R� a1'1; y55'; O 11 right hr the purpne of mi F apt nng ly geoplpsical and other methods,and orn(ng for and pnducing therefrom;oil and allr 4Ly i5yA'11t66h r T�f�')(,+ 0'-' ea,d whnvw.er nature or hnd,w th rght of way and a cement f u lay ng pipe I nu,and erection of structures thenvm lu produce. 4 1 1(13 b LI j(,( O K use and lake cart al u4 pn)unh all dui mcron tenet of land tiW.ed m the G+uvy of Weld.Sale of ColonJo.dcunMJ a �Y,z IZ ;�A11 k P 12.4N L4J fNh..+.to wit: 'lays tfi'CiT {` f IY. .1 yt ilrd{iF t Tv+mhp 1 NnnA,Rance A7\Vat nth It M. i i N . :dy��nx.ppt{lI Santo 2d A rectangular puwi of lnd In the SC lea feet wide and 127 feet Ion{,marked at the cornen with concrete fy` �a t„ a )C fie R` Nit Noels,being the site of old Ton Si.Vra n',as shown on the plat of the Town of Tort Si.Wain(now',scaled) ,'Pis j'f per' ray '{ a tt�C1rlJyjt in and Ming on a parcel of land shown on said plat MNerN on the North by Itnub Jnut Avenue.on the Fast r7�A+ tif�:w('V K r 'stilt a i,R •• u Ccnn Place.on the South by Sarpsy Avenue,and on the West by Aiswva 9mrl including all incmJ streets and {{�S'IJ b F} sr !flr ,l Y. s*)n• - alls)t 1.1.1'14""I'20 i f Ct. ,tar. .h,„4",44,1 1 1)1 a' Z ,(4 4.AIII:ripi 0 s.: and containing 0 VC sex;more or lass. C I,y1 f''7+ 177f r) a 't(`Z4 h `) 1. It b agreed that the lase shalt remain In force for a tern of three(3)yean from this date and as long thereafter as nil lGl Tti Y t•1•f11' (M j )S ,S el sZi n gas a whalsrw+er nature or kind is produced front mid traced premises or on acreage pooled therewith.or drilling operations arc *,11;:•30,.a. ,:1101 sai�sr dal rev tp '''O11.'•'-'1,y. _.a continued as hereinafter provided If,a the expiration of the primary tern of;ha lease,oil or gas is not living prduced on 0w k t•3 s 1 f I1 ₹dpe4 . t i ai s F waled premises or iw arnagn paled therewith but lessee a then engage in Jon the or re .orlon{operations thereon.led this wale ii4 rya Ii." 1111 "tioi fills* s1E { O UI set II continued in forte an long as opera cos are bong continuously prswecutth on the lensed remora or on acreage poled therewith; 'lg. }'i r(IM )r o,..4„,.rittA eZ y and sarntime l cool be m and a be continuously pnwn5 for of not more than ninety(90)days If elapse between the completion Igs'''''''41'1'11). �ja 1 1 r tltl r. 'Fiat? s'f r e D or alondonmem d one well and the beginning of operations the drilling of a subsequent well, If alter J scenery or nil or gas on ''4 a 1 F IV ♦ .t4a 7h);,a _.W said land a on acreage pooled therewith,the pmduetion thereof should cease from any e=we after the primary Icon,this lease shall gr r F.. do}� . 1 1118 0 'nipi m1 tunlsoo tr if taste mmme's-a Jocual drilling or reworking operations within ninety(90) days from dale of ccUalion of • g{4s +dsljq{ 4d ttJJiv{otyn ly.. m z production or born dated completion of dry hole. If oil or{u shall be discovered e and predated as a mull of such operations; e )hJ 4+ s4 Nn ,1,e0YvF�'n '7; N sc or after the expiration of the primary term o f this lease,this lease shall continue In force so long as oil or gas is produced from the M g ` 'I,'ix H• r,... p N teased premises or on acreage pain l therewith.'i } Vu�{;4. ilr)d+11. a ',I. �G�fVY"„,,..,;644,N,V Nfi C` ,L �^dY/ 2 lTu b•PAID VI' It, h once con of the down of calla payment,lesser many ernsMal I vow shall not he obligated. t sal% a11 ptSire-,ja{�yy{{ 3 V. 4' A. gc;, ureic as otherwise panicN herein.to commence or continue any l or anyns during the primary term. lessee may at any lime or f ,, k• y+. l}a" 1 y.r?f ?P �) fir co r tinses during or slier tbe primary term surrender Thu pease as to alp or any portion d said land and a to any as or stratum ge s) ltn? -ape', p�x. to . .., Y p N delivering to Lessor or by filing for record a release or relea+o,and M relieved of all obligation thereafter accruing as to the acreage �., Je9epTyj( y{ } ,n N m surrendered. / L�1A it a T,.. y g ,, 14 11 'I 1.'I ' m W 1 In cauidenlan of the premises the said Lessee covenants and agrees: a 14;11' )pt la. To deliver to the credit of Lessor,free of eat.In the pipe line to which lace may connection wells on said land, t Y p 4 1JLLr1.yan the equal oneeighth(1R)parr of all oil produced and used from the leased premises. a' Ta It Ij bs �`�a: L It y1 Yr per uarter ,for the a from / s' ''a pa I F had, on pay foud et e s me8i of the toedproceeds off here em se Lan each year,payable quarterly, { I ,; 's1p.'tl M'r�soy'':"M' each eciwbea WDoryl whileltrottame a eadef( rs but In,arcof used in themarket te of gasolinea r than f.Kf �Er rvld£o tr N :� of nnc<i{0h(IM}payable monthly a the prevailing market rate for gas,but In no case shall each makcl ale M deemed more than yf. l's,)rikgt/rsa ry" a.1 �y t"I"'' tan actually receive from the sale of such pt. nT • •4Y yet f\rr e a t �I,ga/,Rsyl asteu Jrel. To pay Lass:fn gas produced from any oil well and used off the remise car In the manufacture of asoline tar !t yim p 6 .0.1•1•;,"`3' ,....4•0‘.0: 1;goo 20: 9•ttliw(I s' ..' any=her pduet a royalty of onecigloh(lag of the proceeds received by tare from the sale of such gm. ) }, K,'�ti\ (s,, s lsror tender aroyally to laor One p g rh.� l )O�a:. all kl, „ ,s d. Where gas from a well awned of producing covered v not sold or used, such payment nl e •�YYY``` 'A la , e. •1 d i^I4t��{ Dena per year per net mineral acre owned Lessor and by this days f such pa such or tender to me made o oo before Fall '.' pc ai iS�hYP the anniversary date of this lase ca=t ensuing after Ih<explrnlmn of 90 from the dale well l shut In And thereafter on or �t.,ti.R{J, i I K,q�kl6 rl Id 4 ari eta$, before 1M anniversary date of this lease during the period such well la shut in. If such payment or tender Is made.It will be considered ,�1 ^si v'o 1 f ,.r w F R't a "s t'� (IMtt'{d"r<.yitI' that gas 4 being pduml wotltin the meaning of Mu lease. s( 4,,d4tl p it y ) r.4fr� sF'h 74 s �fi{I 4"' ,l }weer./r el V4 4:e, l Ir • '1' II," h n;'h`bjtn js :ii • ak a 5" ,nkle ., n..VP:'':' ( a{ ice,I 4 N J 4 Lbr@yk 7A( r,;;.1..1,:...::,/,1 1y�'l'T� TI Idl'ij s,� Jy 1 F{f ) •1 }t t j Y set a aj: . } u a ',•r _' 1 y ,,:: t �I tp�1 to ajh, yy.. ',..: : t ),Wy bytrka y16' ,ti o, 6)z ` t t '1 pet t ) 1 al fP drel .44- ! . d a• ggiCoC$h dlC�t ) R 51 as e r�t' igcar7 aY')�ffr d1 ' � EXHIBIT "D" .}I 1"u + Ii"iFH }f1 '.;'•a ' .:::'"41.:•.!'/';'ljs • _t j �I i '' tP M E 1. M i14,,�, ,1;,7 �ka a t fibg7ti 0. , ',•el' 7.a.�� . • gay la yi ' < t ,. M 5, If said Lear oars a leas Interest In the above described land'ban the entire and undivided fee simple prate therein, ''''': ;.'4'.::',,,E..•-el,':,..,,!.,,,,. then the olyaltin(including any shout's gas royalty)hen in provided for shall It paid the said Lessor only in the proportion which r• F 14 ) ; l a+srr i Inirmi Aso to the whole and undivided fee. t r '.147/;....L4(-1 f r1 t 1J+ lit 0 O 6. Lessee shall have the right In use,free of cost.ors,oil and water produced on said land for Laser's operations thereon, u Ytf cl1t{n�'t+�)�`" e ` 1 r o J o ««p wake from the walla d 1 var J )i[} -:s S. 4 nil }r11_• t ;l i k ry O y. N'Mn requested Ivy lessor,lane shall bury lessee's pipe lines below plow depth. J I nt11:1by pi dw V t poem ��r{,�d Y + h �; a 0. Nn wdlstillMdnlhd darer than 200 fceIbony house or ham now amid premises written consent oflater. asltfl :lg., 0 i] ${led t•wig `' t P 1 a 0 2 S. Levee shall pay for damages causal by lassoes open lions to[owing crops on sa J IanJ NE40?nn bs4(' p lF y a O S' 4 + �tfrp '. y y In, lone stair'have the right al any lime m renuwa apt mnchiwry and fwure p1aeN on sail prom ser,Including the right ')�,:?' q u 4g-g"h 3 tt r t + y in drew and remove+tins, aN% f}err�n O i� 'y p I I. The rights of Lessor and Lessee hereunder may be assigned in whole or In pan. No change In ownenhrp of Lessor s t"p 4 ¶�. yg t. ,:•-,,,, i} interest thy assignment or otherwise)stall Inc binding on truce until Lessee has been funhhd with notice,consisting of certified L J u, a i sin Kr Ji g,,Spa er e c of nmNN attainments or sfirvmems and ether information necessary In pahl'sA a complete chain of record title from ss U 1 it ..a I�.and then only wilh rest ct to payment thereafter made. No other kind of nonce,whether actual or mmtruclivr, shall he X473} F' e jy 441;.'1,! �,a o Y banding 01.w I caste. No present or lamer division of I xwri mvnenhp an to difference potions or parcels of said land shall s t ^ operate b.enlarge the obligations diminish finish the rights,1 Ieewe,and all Lewes s operations may he conducted with,uI regard to any �rv�xe.rL (,f 'r$. s `�� CC al such Jinsson If all or any pan of this kale is assigned,nu leasehold owner shall be hable for any an or omission or any oilier #1"' y rd}'YI 1,t .4.1.:',-4.t... :4 A ss leasehold wines w e 1's y,;v y : co J s n {, r s l n Z 12 Laste at its options,4 hereby given the right and paver at any t me and from time to lime recumng right,c they ;1 ttt-i i1`` `h, ri H before or after production.as to all or any pin of the Lind docnbd herein snit as to any one or more of the formations hereunder, yi a� d+/1'. AS t i1 R ' m Ei to prep m unitize the kaschoid estate and the mineral estate covered by this lease with other land,least or '+w in the Immediate pt F: o to vicinity for the production or al anti gas,or separately Ix the production or either,when in Lanes Judgment it 4 necessary or assfiaaar 4•.0 r 1 M K advisable to da so,and irrmpeethe of whether authority similar to this mina with racket to such other land,lease or leases. Likewise. 'R tom, n'1, + -It'..,' I tall', f` units previously Ircmd In include formations not pniducing Ml or gin may be reformed to exclude such non producing formations • Yiq, '%y ; his+ :,,...t..,,.. ' [J lbw livening or reforming of any unit shall be acnnplihd by Lessee executing and fling of record a declaration of such unitization •'� 1a9 m' b. ti fin`} ha or reformation.which delantiw shall diacritic the unit Any unit may Include land upon which a well has therelolore been completed e. t ell ,lua TE1(,.Y 'l,L. o.Z p which operations for dolling have theretofore Inter,commenced. Production,drilling or reworking operations or a well shut sr'Y" Tr- ,.,,, , aJ ',if ti Z in for want of a mattes anywhere on a unit which includes all or a pan of rho lent shall be treated i(it were pnalurllon,drilling �y 1. _i tl g G or rewottani operation or a well shut in for want of a market under this Rase In lieu of the royalties elsewhere herein specified. ; �1Nri l T,7F Ll �yv ' o N including shut-m gas royalties, tear shall receive on production from the unit so poled royalties only on the pinion of loch ;_�lg{!y y Y. U G pductim JMatal m this lease such alkcat' shall he that pmponlon of the ran I production that the tool number of surface acre :14447,4 Yy� �u,� (', i a1 covered by this lease and+ncldd in the unit scar I d t lap umber of surface atria such un t In addition pis the foregoing. a?dj • ? v y, tV x kss a shall have the right m waive.pail or combine lr' ray pan of the ainwe Janlwd 4 nds as to one nr more of the formations .e. { 0-1,4; PI CO thereunder with other lama in the same general area by entering into a cooperative or unit plan of development'r operation approved tt{h YSI ere [ .n vas by any governmental authority and from time to 1 +h like approval to moldy,change or terminate any such plan or agreement t', fn.: ! n i ry and and,in such event,the terns,conditions and provisions of this au shall to deemed and fd in conform its the terns conditions and 4i sa} 1 Yr5 4 k ti ti D I., p provisions of such f approval m aortas en'ins or unit Ihn of Je+alapmentmp nr a with tit and rig and dcve JI JJlling and eats of such -0 ilh`'�i her ys,ti Li! m 4r planAqu ormmu N this kate, leaseor imol le shall be satisfied by compliance with the drilling and development raparements of such y ,,* Pe v',{•1,,44;ci plan or agreement,and this lease shall not terminate or expire during the life or such plan or agnment. In the mem that said shove �4 + t ny t s }p dprnbd lands or any pan thereof shall thereafter be operated under any such cooperative or unit plan of development or operation n ; ti.y ti whereby the production therefmal is allocated;to different portions of the land covered by said plan,then the production allocated r wta• t to any particular text N land stale for the purpose N computing the royalties to be paid hereuder to toter,be reprdd u having "lknv r4 '#-'4444 been produced hereunder from lbw psnicular tract of land to which It is allocated an not to any other tram of land;anti the royally payments �, F. } ,��}�y4��! f 4 s to be math on:e to leap stall be based upon do only as es a and leaser shall formally express by consent .a., T'^' " 1 , I +I K to any coopenhhe or unll plan of J velop eat or operation adopted by Lessee and approved by any governmental agency executinga� C/ere+ :lit tv , the wove upon:equal d loser. ;15 ' f{' (. e y 11 All mesas or Implied covenants of this lease shall be subject to all Federal and Slate lawn,aeruitve onion.rules or 'fl'I. t:11404(011.41, e5 regulations.and this lose shall not be enninatal, In whole or In pan,nor Lessee held liable in damages, for failure to comply1. c v, 4:+ w sib } therewith,if compliance 4 prevented by,or if such failure is the result of,any such law,order,role or regulation. vf. J�L ynjuw p fu 4 p 1 ' Is, Lessor does not warrant title to the leased premium, but II shall,upon requed,allow Lessee access to such abstracts FNy to N�" 1 T .+ and other fink papers w It has In its film. lessee shall have the right at any time to redeem foe Lessor,by payment,any coo`gages. eft fV .,,,. 1. ' -1.12.2441 lase or ether liens on the above described lands In the event of a default of payment by Lessor,and he subro aped to she ri hts of in �y the Wider thereof. '°xTr` -.4". ': fie 1�41.?43wa�N�.J�! 1 sa a aI s `lrt V.�' i 6 2 Ii i ffti-Viw 4ti N`re r y{ '‘f.'Vitt . • , 7 `4L ^ryd.f4 � 5 to o�F{ ff ttt ��y"l. r g + I fdfga.4h 44 yt'1Jtp.Al ieY`#' t .1'f: + d LT'rrAylllr'a 1 t t</axd s< •I Yfles y .11/:, 1 i' h r ' ' . '' -'�+ a1 ::::.:1)i,..b R tfi .., ,y may. 4 f, 930 y r 4 ter F��II' tryth ry x EEC; i 1. n `d',1 ) I. IS. All sd the prrnvIons of this knee shall he binding ultra the heirs,personal mprcunbti,a.no-carom and assigns of Lcwr #c `` I it"t,�i( ' and I* . r)' W 1 fJ IA mace shall not minded operations of any kind upon the surface of the lands herein dutribed without the corn r� °'' written consent of Iasuu. s I Y• r ta} .^0 IN WRNESS WI IERI.01 this instrument is accul l as of the dale first Mauve written. s p ,+', � .,1 BOARD OF COUMIY COMMISSIONERS 't;;;; r R1 �, ��II WELD COUNTY,COLORADO _'' a tYi'a�1 1r;47•1 V r4:,.. fry a,i 11.'. i s H ATI751: J >,,, 2 S .b hr n i-a' m C A Ii} aF a 'i{ t ° 1 t-i O WCki OpMO411 S Nxdc 4,1 t - 2 , t c8Isk' ➢) and ClerlWth /I r 11 (} y \ 4 e :p•)1,"''t L ~^y LCSsl.li. E G ompany �fir� a d• qq By William G. Crews, Agent r,3 r 41".•i},.$1 .L'e\ rM 1#. C F 8.13 ry1r 5.1 s7 ,_ is k t n ' W S7A7L'OF COIARMO) +,_" t S `' .y ) u. Pfib • 4 Z COUNTY OF WELD ) t us '�'` ti, OI 4 /el eA Say of Se tember, 1989,by William 0,Crews as Arent for t, Itu! '. 0 71m fora'mpan.a Co sal vas ackmtWaltN behalf me thb r Y P #' sj �• Fikry Oil Company.a Qtbadt corporation,on htRilf of and tttrrytrattrtn. ���///"""��� i:21: `b yf 0 3r. r �rir� -fIIYt' Pr' .4y land and oak's'sal. ,fy a al \U SO sa /�..Qry P%bJ 1 , S,f Jf7 1�. c. n ', to tAmmawt Noury PYNic , IL 9''p C w0. ha'u Greeley, Co 8063r 1.1 CI 1.a: { • ..x. ,e'CF 0O O r k ilc/ ,. 1. 1:;,:.414# it, ' . r .A. IlJaa „,,'.hl aiS ,kri l 4.-, * a if 3 t . 11:41••A. 1" � 1 t ' tt/ aY4• �§` )'tnwa r �.r ' . v el" t rt� 1. ik St - ) r14 ll ,tyn r tl , i p yy 1 ...o 4 itF,. r t � r e •), $i.a 1 fyR Iv '' t • 3, t , rt fl i�i� �` ft Y )) y � tl Jia ca n:4: \ , • t B .W t 41- akt_ w , ae 93 ,_ 41 t1. a .wsA' s• 11 leastirf ,•14;< ` Greeley Leasehold ea` . , 0 • DTM00606 DLWIth 041889.2 , ... Aeon Energy Co. 777 South Wadsworth Building 4 , Suite 215 Lakewood, CO 80226 Aexco 1660 Lincoln Street, Ste. 2812 Denver, CO 80264 Allan Exploration Company ATTN: Jim Woods 1660 Lincoln Street, Suite 2812 Denver, CO 80264 Amicus Energy Company Attn: John Redeker 1275 Sherman Street, Suite 101 Denver, CO 80203 Amoco Production Company Attn: S . Division Land Man Amoco Building Denver, CO 80202 Nolan Ashburn 5935 W. Mansfield Avenue, #255 Denver, CO 80235 Baker Oil Corp. 25 Sherman Street Denver, CO 80203 W.P. Bakken, Geologist 210 Denver Club Building Denver, CO 80202 Mark Bassham P.O. Box 17305 Boulder, CO 80308-7305 Bass Interprises Attn: Cindy McNeil 1099 18th Street, Ste. 1600 Denver, CO 80202 Bellwether Exploration Company 3455 F. Steet, Unit #3 Greeley, CO 80631 Beren Corporation Attn: Ken Appis P.O. Box 5850 Denver, CO 80217 930315 Carl M. Bomholt Petroleum Landman 1625 Broadway, Suite 2120 Denver, CO 80202 Bristol Production, Inc. 801 8th Street, Suite 230 Greeley, CO 80631 Maurice W. Brown 614 So. Greeley Hwy. Cheyenne, WY 82001 BWAB, Inc . 1801 California Street, Suite 1000 Denver, CO 80202 Caddis Resources, Inc. Attn: J. E . Bragg, Jr. 1645 Court Place, Suite 335 Denver, CO 80202 Robert Campbell P.O. Box 597 Bismarck, ND 58502 Colorado Land Services 5411 Gunbarrel Circle Longmont, CO 80501 Colton Company 1625 Broadway #2120 Denver, CO 80202 Contex Energy Company Richard L. Swan, Agent 1645 Court Place, Suite 212 Denver, CO 80202 Monty Cranston, Inc. 28 Burlington Avenue Billings, MT 59101-6027 Scott Cranston P.O. Box 233 Billings, Montana 59103 William G. Crews 1223 28th Avenue, Suite 2 Greeley, CO 80631 930315 Edward J. Cronin 1660 Lincoln Street, Suite 1412 Denver, CO 80264Dean L. Cummins 1223 28th Avenue, Suite 1 Greeley, CO 80631 Dean L. Cummins 1223 28th Avenue, Suite 1 Greeley, CO 80631 Ray A. Davis 8470 County Line Rd. #24 Ft. Lupton, CO 80621 Arch Deuel P.O. Box 1606 Casper, WY 82602 DiNardo & Markham P.O. Box 1018 Denver, CO 80155 Diversified Operating Corporation ATTN: Dave Abbey 1600 Stout Street, Suite 1900 Denver, CO 80202 Peter B. Doty 6067 S. Lima Way Englewood, CO 80111 Double Eagle Petroleum & Mining Attn: Richard B. Laudon P .O. Box 766 Casper, WY 82602 Douglas Petroleum, Inc. P.O. Box 21395 Billings , Montana 59104 Elk Exploration ATTN: Colleen Nealy 3807 Carson Evans, CO 80620 John P. Elliott, Jr. 1050 17th Street Denver, CO 80265 Earl Elmora • P.O. Box 10763 Edgemont Br. Golden, CO 80401 930315 Energy Minerals Corp. 999 Eighteenth Street Denver, CO 80202-2431 Fairway Energy Corporation 6803 E. 47th Ave. Dr. #F Denver, CO 80216 Farmoil, Inc . & Thompson 100 Racquette Drive Ft . Collins, CO 80524-2757 Craig Farr P.O. Box 5012 Greeley, CO 80632 Francis Energy P.O. Box 2331 Greeley, CO 80632 Frizell Oil Company 1911 Garfield Avenue Loveland, CO 80537 Fuel Resources Development Co. ATTN: W.E . Miller, Vice President 1250 14th Street Denver, CO 80202 Front Range Oil & Gas Mike Crewson 1019 8th Street, Suite 300 Golden, CO 80401 Gerrity Oil and Gas Corp. 3200 Cherry Creek South Drive Suite 200 Denver, CO 80209 Grynberg Petroleum 5000 S . Quebec, Suite 500 Denver, CO 80237 Robert J. Gutru 307 Farmers & Bankers Bldg. Wichita, KS 67202 Lew Hagenlock Petroleum Landman 4969 W. 8th Street Greeley, CO 80634 930315 Duane L. Haley, C.P.L. First Interstate Tower South 621 17th Street, Suite 915 Denver, CO 80293 Cassandra Herbert 95 Emerson, #201 Denver, CO 80218 Jeff Highlander 10625 Sierra Oscura, N.E. Albuquerque, NM 87111 High Plains Energy Co. ATTN: Jim Winter 1600 Broadway, Suite 1565 Denver, CO 80202 Jerry Hill 1580 Lincoln, Suite 680 Denver, CO 80203 Mark Hodge P.O. Box 200 Casper, WY 82602 Hrubetz Oil Company 5949 Sherry Lane, #800 Dallas, TX 75225-6520 John Isaacs 636 Church Street, Suite 724 Evanston, Illinois 60201 Gary Jerman 1645 Court Place, Suite 300 Denver, CO 80202 Thomas C. Johnson P.O. Box 795 Bridgeport, NB 69336 Ellis N. Jones P.O. Box 1705 Sterling, CO 80751 Kauffman & Weinberger, Inc. ATTN: Paul G. Gagnon 1675 Broadway, Suite 1970 Denver, CO 80202-4619 Kilroy Company of Texas, Inc. 1021 Main Street, Suite 1900 Houston, TX 77002-6677 930315 Kona Oil & Gas Co. 3275 S. Steele St. Denver, CO 80210-6955 Kootenai Exploration ATTN: Stuart Hoefle P.O. Box 611 Billings, MT 59103 Lang & Martin 550 Petroleum Bldg. Denver, CO 80202 Joseph A. Larkin Certified Professional Landman 6924 South Buffalo Littleton, CO 80120 Edward L. Lederman 2534 Ash Street Denver, CO 80207 Laurence L. Lilley Consulting Landman 6095 W. Exposition Avenue Lakewood, CO 80226 Macy & Mershon Oil Co. 1600 Broadway, Suite 1040 Denver, CO 80202 J.E . Massey P.O. Box 368 Brighton, CO 80601 Masterson & Company The M Building 21 Curtis Street Worcester, MA 01603 McAdams, Roux & Associates, Inc. 1255 17th Avenue, Suite 2000 Denver, CO 80202 William McDermott 518 17th Street Denver, CO 80202 J. Michael McGhee 410 17th Street, Suite 1100 Denver, CO 80202 930315 Kevin E. Merrigan Independent Petroleum Landman P.O. Box 1428 Marblehead, MA 01945-5428 MGF Suite 900, Colombine Place 216 16th Street Mall Denver, CO 80202-5123 Mile Hi Oil & Gas, Inc . 3190 S . Wadsworth Blvd. P.O. Box 27296 Denver, CO 80227 Mizely Exploration Company 3600 Yoesmite, Suite 1040 Denver, CO 80237 Morgan Oil Co. c/o Carol Schuster 1250 South Monroe Street Denver, CO 80210 Lew Nagenlock 4969 W. 8th Street Greeley, CO 80634 Nessalk Energy, Inc . 1615 California Street, Suite 702 Denver, CO 80202 Nolburn Energy Co. 1675 Larimer Street, Suite 820 Denver, CO 80202 North American Resources P.O. Box 7007 Billings, Montana 59103-7007 Oilmarc Attn: Larry Lilley 410 17th Street, Suite 1810 Denver, CO 80202 Onyx Petroleum, Inc. 441 E .E . Butler Pkway SE Gainesville, GA 30505 Oxy NGL, Inc. P.O. Box 300 Tulsa, OK 74102 900315 Michael R. Padbury 4760 Stanford Denver, CO 80236-3304 Pancanadian Petroleum Co. ATTN: David W. Siple 600 17th Street, Suite 1800 Denver, CO 80202 Pandmanian Consulate 5000 S. Quebec #500 Denver, CO 80237 Parker & Parsley Petroleum Co. ATTN: John Sabby Suite 800 Empire Plaza P .O. Box 3178 Midland, TX 79702 Rex Paullus P.O. Box 27119 Lakewood, CO 80227-0119 Pendleton Land & Exploration 8085 S . Chester Street, Suite #114 Englewood, CO 80112 Walter Peters Box 81 Carpenter, WY 82054 PetroGulf Energy Company Denver Club Bldg. , Suite 1140 518 17th Street Denver, CO 80202 Petroleum Energy Corporation Attn: Lew Hagenlock 1625 Broadway, Suite 1480 Denver, CO 80202 Petroleum Land Services ATTN: John N. Merkert 518 17th Street, Ste. 460 Denver, CO 80202 Ernest C. Porter 5623 E. South Moor Cr. Englewood, CO 80111 Thomas C. Poulson P.O. Box 200162 Denver, CO 80220 930315 Charles R. Ray 2980 Heather Road Golden, CO 80401 Juanita Reeves 6696 W. Glasgow Ave. Littleton, CO 80123 Rio Grande Exploration Co. 1030 N. Cedar Colorado Springs, CO 80903 Rodco Systems, Inc . 10961 W. 68th Place Arvada, CO 80004 Rodeo Oil Company Attn: H.R. Spear P.O. Box 206 Perkinsten, MS 39573 Sandlin Oil Corp. 2300 Security Life Bldg. 1616 Glenarm Place Denver, CO 80202 Dan L. Schwartz 1600 Preston Trail Ft. Collins, CO 80525 Seguro Oil & Gas , Inc. 1660 Lincoln, Suite 3100 Denver, CO 80264 Sentry Mineral Corp. 2300 16th Street Greeley, CO 80631 Pat Shaw 216 16 Street, #1250 Denver, CO 80202-5126 Bill Siebert 9306 West Iowa Avenue Lakewood, CO 80226 Skaer Enterprises Attn: Tom Poulson P.O. Box 22418 Denver, CO 80220 Carl F. Smith 11532 West 31st Place Lakewood, CO 80215 930315 Snyder Oil Company 1801 California, Suite 3500 Denver, CO 80202 Snyder Oil Corp. ATTN: Steve Van Hook 1625 Broadway, Suite 2200 Denver, CO 80202 Snyder Oil Corp. ATTN: Terry Savage 777 Main St. , Suite 2500 Ft. Worth, TX 76102 H.L. Spearman 40 Inverness Drive East, Suite 80 Englewood, CO 80112 S . S . & D.A. Smith 7 South Dearborn Street, Ste 808 Chicago, IL 60603 Strooch Rogers & Dymond P .O. Box 2875 Casper, WY 82602 William A. Stubbs 725 Colorado Bldg. 1615 California Street Denver, CO 80202 Sunset Hill Oil Co. , Inc. Attn: Dean L. Cummins 1675 Broadway, #1970 Denver, CO 80207-4619 Transcontinent Oil Co. Attn: Brian Haley First Interstate Tower South 621 Seventeenth Street Denver, CO 80293 Transworld Resources Corporation 5000 Quebec #500 Denver, CO 80237 Tucker and Vaught Bank Western Building 718 17th Street, Suite 1330 Denver, CO 80202 ATTN: William Tucker 930315 Unioil 3817 Carson Avenue Evans, CO 80620 Union Pacific Resources Co. ATTN: Chuck Trafler P.O. Box 1257 Englewood, CO 80150 William Urban, Jr. 4500 S . Lafayette Englewood, CO 80110 W.G. Van Bebber P.O. Box 17782 Denver, CO 80217-0782 Viking Resources Corp. 1675 Broadway #2750 Denver, CO 80202 Frank Walsh P.O. Box 30 Sterling, CO 80751 Weeks Energy Minerals Corporation 1000 Security Life Building 999 18th Street, #3100 Denver, CO 80202 Wilbanks & Associates Attn: J. Clifford Van Brewer Thomas Wilbanks 1860 Lincoln Street Denver, CO 80295 H. L. Willitt 250 Denver Club Building 151 17th Street Denver, CO 80202 Wolf Energy Company ATTN: Jo Hull 1675 Broadway, Suite 1600 Denver, CO 80202 William Yurth Independent Oil Consultant 6115 W. Mansfield, #240 Denver, CO 80235 Cynthia A. E. Zeren 1223 28th Avenue, Suite 2 Greeley, CO 80631 930.315 Zimmerman Resources Company 621 Seventeenth Street, Suite 711 Denver, CO 80293 930315 Hello