HomeMy WebLinkAbout911147.tiff 1.5021:35522
V2267142
RESOLUTION
RE: AUTHORIZATION OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY OWNED BY WELD
COUNTY, COLORADO, LOCATED IN SECTION 22, TOWNSHIP 5 NORTH, RANGE 61 WEST OF
THE 6TH P.M.
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O WHEREAS, the Board of County Commissioners of Weld County, Colorado,
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o pursuant to Colorado statute and the Weld County Home Rule Charter, is vested
a with the authority of administering the affairs of Weld County, Colorado, and
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.69• W WHEREAS, Weld County, Colorado, is the owner of vast acres of mineral lands
• located in Weld County, Colorado, and
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M a WHEREAS, Parker and Parsley Development Company submitted an offer to lease
160 net mineral acres, more or less, described to-wit:
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W SE,' of Section 22, Township 5 North, Range 61
West of the 6th P.M. , Weld County, Colorado
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W WHEREAS, Weld County desires to waive the bid process and accept the offer
ri of submitted by Parker and Parsley Development Company to lease the above described
W mineral acreage for $10.00 per net mineral acre, for a total sum of $1760.00,
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a together with a rental fee of ONE DOLLAR ($1.00) per net mineral acre, which
vi 13, lease is to run for a period of three (3) years, commencing October 2, 1991, and
0• Z ending at 12:00 noon on October 2, 1994, unless otherwise held, as stated in the
Q lease agreement which is attached hereto and incorporated herein by reference.
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W NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
a County, Colorado, that the bid process on the above described parcel be, and
r- hereby is, waived.
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M k BE IT FURTHER RESOLVED by the Board that the offer of Parker and Parsley
Development Company, P.O. Box 3178, Midland, Texas 79702-3178, be, and hereby
is, accepted for a period of three (3) years with the total sum being as above
listed.
B 1315 REC 02267142 10/25/91 10: 54 $0 .00 1/010
F 0150 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
911147
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RE: OIL AND GAS LEASE - PARKER AND PARSLEY DEVELOPMENT COMPANY
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 2nd day of October, A.D. , 1991.
kitai BOARD OF COUNTY COMMISSIONERS
ATTEST: WELD COUN Y, ALORADO
Weld County'Clerk to the Board � � e,
Gord . L Chairman
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U BY: ` "�; //t
N O e ,uty Clerk to the Boar Geo a Ken.edy, Pro-Tem
AAPPROVEDi-li$ ' FORM: �4{,1_2g51l11.. U
O S onsetan�cy�es-/L. Harbert
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. County Attorney C. W. Ki�`bz
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A 1315 REC 02267142 10/25/91 10: 54 $0.00 2/010
F 0151 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
911147
WELD COUNTY OIL AND CAS LEASE
Containing 160 acres, more or less:
Containing net mineral acres, more or less:
p O THIS LEASE AGREEMENT, dated this 2nd day of October , 19 91 , made and entered into by and
el U between WELD COUNTY, CCIORADO, a political subdivision o£ the STATE OF COLORADO, acting by and through the BOARD OF
\ COUNTY COhlIISSIONERS OF THE COUNTY OF WELD, for its respective interests, c/o BOARD OF COUNTY COMMISSIONERS, WEIR COUNTY
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U CENTENNIAL CENTER, 915 10TH STREET, GREELEY, CO 80631, hereinafter called Lessor, ends
Q Parker and Parsley Development Company
o w P.O. BOX 3178
p 3 Midland, TX 79702-3178
oz hereinafter called Lessee:
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wr WHEREAS, said Lessee has applied to Lessor for an oil and gas lease covering the land herein described, and has
or,
•• w paid a filing fee in the amount of $10.00, plus a bonus consideration of $ 10.00 per mineral acre, fixed by
OH z Lessor as an additional consideration for the granting of this lease, and Lessee agrees to pay an annual rental of
CC $ 160.00 , computed at the rate of $ 1.00
Yrl , per mineral acre or fraction thereof per year, and the
Ufollowing consideration: None
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\w WHEREAS, all the requirements relative to said application have been duly c pp O E q PP y complied with and said application has
• r-9 been approved and allowed by Lessor;
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N w 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
P � drilling for, development of and production of oil
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and gas, or either of than, thereon and therefrom with the right to owes all oil and gas so produced and saved therefrom
N PC and not reserved as royalty by Lessor under the terms of this lease, together with rights-of-way, easements and
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U >i servitudes for pipelines, telephone and telegraph lines, tanks and fixtures for producing and caring for such product,
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ag 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
m particularly described as follows:
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DESCRIPTION OF LAND SECTION TOWNSHIP RANGE
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SE4 22 T5N R61W
TO HAVE AND TO HCLD said land, and all the rights and privileges granted hereunder to Lessee until the hour of
twelve o'clock noon on the 2nd day of October , 19 94 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 is 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 ■ 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.
R 1315 REC 02267142 10/25/91 10:54 $0.00 3/010
F 0152 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
(Revised 5/91) 1
i C^OL1 H11147
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:
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O 1. RENTAL - If this lease is extended for an additional term as provided for in the EXTENSION paragraph hereof,
eV Lessee shall a to Lessor the sum o£ One Dollar $1.00 y y
d' p pay ( ) per acre for the land covered hereby as delayed
U rental for the term of the extension. Rentals set at the time of established production shall be paid during
athe remaining life of this lease, annually, in advance, on or before each anniversary date hereof. There
00 CO shall be no refund of unused rental.
66 W 2. ROYALTY - Lessee shall account for any and all substances produced on the leased land and lessee shall pay
C' to Lessor as royalty, in addition to the rentals provided, but except for products used on the leased land,
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U unavoidably lost or flared on the leased land, with approval of Lessor, the following:
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Ma' A. On oil, 12.55 of the oil produced and saved from the leased land.
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rA ,k At the option of Lessor, and with sixty (60) days' notice to Lessee, Lessor may take its royalty oil
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aW-1 in kind, in which event Lessee shall deliver such royalty oil to Lessor on the leased land, free of cost
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ON U or deduction, into the pipelines or storage tanks designated by Lessor, but Lessee shall not in such
CO Z case be required to provide free tankage for any such oil for a longer period than one month after the
O\ W same is run into tanks. With sixty (60) days' notice to Lessee, Lessor may cease taking oil royalty
O E in kind. When paid in cash, the royalty shall be calculated upon the fair market value of the oil at
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Wthe well which shall not be deemed to be lass than the price actually paid to Lessee at the well by the
ru „7 purchaser thereof; and in no event shall the royalties be based upon a market value at the well less
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ttl W 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
N in the field for oil of like grade and gravity at the time such oil is run into pipelines or storage
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a . B. On gas, including caainghead gas or other gaseous substance, 12.55 of the fair market value at the
en well or of the price received by Lessee at the well, whichever is greater, of all gas produced and sold
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r�l r- from the leased land or utilized off the land by Lessee. A copy of all contracts for sale of gas shall
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,-; ri be furnished to Lessor. Where gas is sold under contract that has been approved by Lessor, the fair
paw arket 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 owm a lesser interest in the oil and gas deposits of the above-described land than the entire
and undivided fee simple estate, then the royalties and rentals herein provided shall be paid to Lessor
only in the portion which its interest bears to the whole and undivided fee, but no refund of any bonus
consideration shall be made by Lessor hereunder.
B 1315 REC 02267142 10/25/91 10: 54 $0. 00 4/010
F 0153 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
(Revised 5/91) 2
21114
3. RECORDS - Lessee agrees to keep and to have in p ion complete and accurate books and records showing
the production and disposition of any and all substances produced on the leased land and to permit Lessor,
at all reasonable hours, to examine the same, or to furnish copies of same to Lessor upon request along with
purchaser's support documentation. Lessor will not be unreasonable with requests. All said books and
records shall be retained by Lasses and made available in Colorado to Lessor for a period of not less than
five years.
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O 4. MEA,SUR@SNTS - All production shall be accurately measured using standards established by the American Gas
N O Association (AGA) and/or the American Petroleum Institute (API) and all measuring devices shall be
U tamperproof as nearly as possible. Oil royalties due within the terms of this lease shall bin calculated on
1Qa actual and accurate measurements within API standards unless • different means of measurement, subject to
O W Lessor's approval, is provided.
�W 5. PAYMENTS AND REPORTS - All payments and reports due hereunder shall be made on or before the day such
G payments and reports are due. Nothing in this paragraph expiration WO pare a h shall be construed to attend the iration of the
U primary term hereof.
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f+l 011 royalty payments and supporting documents shall be submitted prior to the last day of the month following
O each month's sale of production, and gas royalty payments and supporting documents shall be submitted prior
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W to the last day of the second month following each month's sale of production.
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CA U All payments shall be made by cash, check, certified check, or money order. Payment having restrictions,
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W Z qualifications, or encumbrances of any kind whatsoever shall not be accepted by Lessor. ♦penalty for a late
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\ W payment shall be charged as set forth in the PENALTIES paragraph herein.
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W 6. PENALTIES - A penalty shall be imposed for, but not limited to late payments, improper payments, operational
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cV ,7 deficiencies, violation of any covenant of this lease, or false statements made to Lessor. Penalties shall
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mi (y be determined by Lessor unless otherwise provided for by law and may be in the form of, but not limited to,
N interest, fees, fines, and/or lease cancellation. A
1p Z penalty schedule shall be prepared by Lessor and shall
Nbecome effective immediately after public notice. Said schedule may be changed from time to time after
O public notice.
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P4 g L. 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
rA r lands and minerals owned by the County of Weld, and to laws, rules and regulations governing oil and gas
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ri r4 operations in Colorado. Violations shall result in penalties as provided for by law or as set forth in the
PO W 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.
B 1315 REC 02267142 10/25/91 10:54 $0 .00 5/010
F 0154 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
(Revised 5/91) 3 y
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
O O assignment charge in an amount to be determined b Lessor. Prior to written a y,—I U iBnme B y approval b Lessor of
CD assignment of this lease, lessee (assignor) shall not be relieved of its obligations under the terms
10 O and conditions herein. An assignment shall not extend the term of this lease.
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sQ-1 B. If any assignment of a portion of the land covered hereby shall be approved, a new lease shall be issued
gto the assignee covering the assigned land, containing the same terms and conditions as this lease, and
OM limited as to term as this lease is limited, and the assignor shall be released and discharged from all
iR ill further obligations and liabilities as to that portion so assigned.
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C) C. Lessee shall notify lessor of all assignments of undivided g
U y ig percentage or other interests. Said
,d, a interests will not be recognized or approved by Lessor, and the effect of any such assignments will be
M strictly and only between the parties thereto, and outside the terms of this lease: and no dispute
O between parties to any such assignment shall operate to relieve Lessee from performance of any terms
pC, or conditions hereof or to postpone the time therefor. Lessor shall at all times be entitled to look
„y fW-1 solely to Lessee or his assignee show on its books as being the sole owner hereof, and for the sending
01 U of all notices required by this lease and for the performance of all terms and conditions hereof.
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\ W D. Although not binding on Lessor, all instruments of every kind and nature whatsoever affecting this lease
rA• y should be filed with the Lessor.
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N 10. OVERRIDING ROYALTY - Any and all reservations or assignments or overriding royalties shall be subject to
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ul is. approval by Lessor. The total of said overriding royalties shall not exceed five percent (5%), including
uJ 'Z. any overriding royalty previously provided for unless production exceeds a monthly average of fifteen (15)
N wg barrels per day or nines thousand cubic feet of per y ( ). p p N sy' P y ninety gas r day 90 IR;F(D In the avant production drops to
O this amount or less, any overriding royalties which exceed five percent (5S) may be suspended. Lessor's
W04 approval of a reservation or assignment of an overriding royalty shall not bind Lessor for payment of said
gg overriding royalty and shall not relieve Lessee of any of its obligations for payment of royalties to Lessor
in CO as provided by ROYALTY paragraphs herein.
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11. OFFSET WELIS - Lessee agrees to protect the leased land from drainage by offset wells located on adjoining
CO Lr4 lands not owed by Lessor, when such drainage 1s 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 o£ 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 eosmensurate with the economic
development of the field in which the leased land lies.
B 1315 REC 02267142 10/25/91 10: 54 $0 .00 6/010
F 0155 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
(Revised 5/91) 4
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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 leases+ stratum or strata, in the same field so as to constitute a spacing
unit to facilitate an orderly or uniform well-spacing pattern or to comply with any order, rule, or
regulation of the State or Federal regulatory or conservation agency having jurisdiction. Such pooling shall
O O be accomplished or terminated by filing of record • declaration of pooling, or declaration of termination
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O of pooling, and by mailing or tendering • copy to Lessor, or to the depository bank. Drilling or reworking
✓ O operations upon or production from any part of such spacing unit shall be considered for all purposes of this
U lease as operations or productions from this lease. Lessee shall allocate to this lease the proportionate
G1 share of production which the acreage in this lease included in any such spacing unit bears to the total
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O W acreage in said spacing unit.
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W14. UNITIZATION - CONNUNITIZAITON - In the event Lessor permits the land herein leased to be included within a
acommunitisation or unitization agreement, the terms of this lease may be deemed to be modified to conform
O to such agreement. When only ■ portion of the land under this lease is committed by an agreement, Lessor
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a may segregate the land and issue a separate lease for each portion not committed thereunder; the term of such
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(+1 separate lease shall be limited as to the original term of this lease. The terms of the lease on that
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`'b portion remaining in the unit shall be deemed to be modified to conform to such agreement. Nonproducing
HI V 1 hall terminate on the first anniversary date of the lease following the termination date of the unit
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e-i a or part thereof modifying the lease, but in no event prior to the end of the primary term of the lease or
p� U the extension term of the lease.
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O H 15. PRODUCTION - Lessee shall subject to applicable laws, regulations and orders,\ [� + operate and produce all wells
O F upon the leased land so long as the same are capable of producing in paying quantities, and shall operate
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C4 the same so as to produce at a rate commensurate with the rate of production of wells on adjoining lands
N .Wti- within the same field and within the limits of good engineering practice, except for such times as there
NW exist neither market nor storage therefor, and except for such limitations on or suspensions of production
N as may be approved in writing by Lessor. L hall be responsible for adequate site security on all
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N producing properties.
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U W 16. SHUT-IN WELLS - If Lessee shall complete a well on the leased land productive of gas and Lessee is unable
Wa g to produce such gas due to a lack of suitable market therefor, Lessor may grant Lessee suspension of his
Cr obligations to produce hereunder until • suitable market for such gas can be found, and during any such
,-i r- suspension period, it shall be deemed that gas is being produced hereunder in paying quantities. Except,
MN however, that be inni r9 , y
r-x N g ng on the anniversary date next of the year of an extension of the lease b reason of
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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, dna 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 91114"
B 1315 REC 02267142 10/25/91 10:54 $0. 00 7/010
F 0156 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
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.
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CD Lessee shall bury pipelines below plow depth. Lessee shall set and cement sufficient surface casing to
O O protect the fresh water wells of the area.
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O 18. NOTIFICATICN - Lessee shall notify Lessor and the surface lessee or surface owner of the location of each
00 W drill site at least two weeks prior to commencing drilling operations thereon. Lessee shall notify Lessor
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OC4before commencing to plug and abandon any well by copy of Lessee's request for approval or sundry notice of
te- W Intent to plug and abandon.
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U19. 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
w'1 commenced on the land hereinabove described unless and until Lessee shall have filed a good and sufficient
an
O bond with Lessor, in an amount to be fixed by Lessor, to secure the payment for such damages as may be caused
H a by Lessee's operations on said land and to assure compliance with all the terms and provisions of this lease,
W the laws of the State of Colorado, and the rules and regulations thereto appertains y,-1 r•7 appertaining. A bond may be held
01 U in effect for the life of production of any well.
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20. SETTLEMENT - Lessee shall not remove any machinery, equipment or fixtures placed on said land, other than
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ry N 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
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N W fixtures left on this land for a period of more than six (6) months after the expiration hereof, shall
U1 fro automatically become the property of Lessor.
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o� a 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
U P4 Lessor may negotiate a provision for production of such discovery.
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M O 22. PATER - This lease doss not grant permission, express or implied, to Lessee for water exploration, drilling,
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MN 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
CO G. 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 nentributary 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 authorised upon notice and hearing, as hereinafter provided, to cancel this
lease as to all of the leased land so claimed or po d 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 CIAO ,e:.+.�
R 1315 REC 02267142 10/25/91 10:54 $0 .00 S/0+10
F 0157 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO. co
failure or default is not corrected within thirty (30) days after the wiling 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 eke 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
maks 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 conditional
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O A. No lease term will be extended for mor• than six (6) months from the original expiration date.
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U B. That the Lessee shall pay to tbr. Lessor the sum of ona-third of the original bonus, with a minimum bonus
aof Ten Dollars ($10.00) per acre.
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O C. The Lessee must • to the Lessor the sum of One Dollar 31.00 pay ( ) per acre Lased as delayed natal for
O a" the term of the extension.
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V D. That the royalty will remain the same.
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25. HOLD HARMLESS - Lessee shall indemnify Lessor against all liability and loss, and against all claims and
O run 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 Lased
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fW-1 land or by conditions created thereby, or based upon any violation of any statute, ordinance, or regulation.
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co 26. CONDEMNATION - If the leased land shall be taken in an condemnation co ,7, y proceeding, this lease shall
C> automatically terminate as of the date of taking. The award for such condemnation shall be paid to Lessor,
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O E except for any specific award(*) paid to Lessee for severed oil and gas reserves, in which event
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(Y. of such specific award(s) shall be paid to Lessor in lieu of royalty lost by virtue of the
W condemnation. Improvements shall be removed by Lessee per terms in the SETTLEMENT paragraph herein. If only
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to W • 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.
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Nz
N Ft4 27. ERRORS - Every O ry effort is made by Lessor to avoid errors in all procedures including but not limited to
U W auction listings and lease preparation. Lessor shall not be liable for any inconvenience or loss caused by
W errors which may occur. Lessee shall notify Lessor immediately upon discovery of any errors or discrepancy
eG
whatsoever.
M N
NCO
fel
N
rq N 28. ARCHAEOLOGY - Lessee shall not destroy, disturb, mar, collect, remove or alter any prehistoric or historic
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W W resources o£ any kind on Weld County lands as provided by law. Mass 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. 9
VIII..'nq.1.47
(Revised 591) 7
B 1315 REC 02267142 10/25/91 10: 54 $0. 00 9/010
F 0158 MARY ANN FEUERSTEIN CLERK & RECnRnRl7 wFr.n rn nn
C. "Paying quantities" as used herein shall mean and refer to quantities of oil and gas or of either of
them sufficient to pay for the current cost of producing same.
30. WEIRS AND ASSIGNS - The benefits and obligations of this lease shall inure to and be binding upon the heirs,
legal representatives, successors or assigns of Lessee; but no sublease or assignment hereof, or of any
interest herein, shall be binding upon Lessor until the same has been approved by Lessor as explained in the
ASSIGNMENTS' paragraph provided.
O O
N V 31. WARRANTY OF TITLE - Lessor does not warrant title to the leased premises, but it shall, upon request, allow
O
\ Lessee access to such abstracts and other title papers as it has in its files. There shall be no obligation
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".y U on Lessor's part to purchase new or supplemental or other title papers nor to do any curative work in
(a connection with title to the subject lands. All abstracts of title, whether new or supplementary, obtained
�^ by Lessee and covering the subject landa shall become the property of and be delivered to Lessor after Lessee
O w
O S has completed its title examination and curative work, subject, however, to the right of Lessee to use such
O CC abstracts upon request at any time during the term of the lease.
eM W
QIN WITNESS WHEREOF, Lessor has hereunto signed and caused its name to be signed by the BOARD OF COUNTY
U Cati SSIONERS OF THE COUNTY OF WELD, with the seal of the office affixed, and Lessee has signed this agreement, the
L
cr Qom. day and year first above written.
M
.. to
ri Y, BOARD OF COUNTY COMMISSIONERS
C4 WELD COUNTY, COLO 0
co U ATTEST:
Z41
VVV 111///
O E Weld County Cli;$^to the,Board
---�
N (rT Deputy Clerk to the Board /p
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Pl
O V
W CC
LESSEE Parker d Parsl eve lopment Company
a
M N B
oro nn ac D. Larremo e, Vice-Pres>_dent
• STATE OF TEXAS )
DOG ) as
murk of mIDLANp
The foregoing instrument was acknowledged before me this 24th day of September , 19 91
M Jack D. Larremore
Witness my hand and official seal.
My Commission Expires:
Notgi,-/
lic
5 , JpTLE CRAMER }j
i At_,i Notary FubiiC,State 01 Texas
• rE. ic' MY Comm.Exp.9.28.82 t
.91114/7"
(Revised 5/91) a
B 1315 P.EC 02267142 10/25/91 10:54 $0 .00 10/010
F 0159 MARY ANN FEUERSTF,IN CLERK & RECORDER WELD CO. CO
B L. JARRETT
C.Pl
EXPERIENCED LRNDMRN 12466 W. 71ST PLRCF
LERSING -TITLES October 24, 1991 ARVADA COLO 80004
CONSULTING (303) 423-7057
Mr. Bruce Barker ni?
Weld County Board of 1 --
County Commissioners { 0CT 2 - 1931
P. O. Box 1948
Greeley, CO 80632 C7
WELD COUNTY
Re: Oil & Gas Lease ATTORNEY'S OFFICE
Lessor: Weld Co. Commissioners
Lessee: Parker & Parsley Development Co .
T. 5 N. , R. 61 W.
Section 22; SE4
Weld Co. , Colorado
Dear Bruce:
Confirming our telephone conversation today, please arrange
to have the referenced lease which was recently executed by
the County Commissioners and recorded , corrected to indicate
the date and expiration date of the lease. It appears those
items were overlooked in processing the lease. Mr. Bradford
of Parker & Parsley ' s Midland Office advises that the lease
that they received was a photo copy, so possibly the
original is still in County Commissioner' s Office.
After re-recording the corrected lease, please forward the
original to Parker & Parsley and a copy to me at the
following addresses .
Mr. Howard Bradford B. L. Jarrett , CPL
Parker & Parsley Development Co. 12466 W. 71st Place
P. O. Box 3178 Arvada , CO 80004
Midland, TX 79701
Your assistance and co-operation on this matter is
appreciated.
V/`.?y Tru Y urs,
ti
B. L. Jarr t, CPL
cc: H. Bradford
BLJ/bj
49/.114-^v
Vv .
OFFICE OF COUNTY ATTORNEY
V� PHONE(303)356.4000 EXT. 4391
I� „vol P.O. BOX 1948
GREELEY, COLORADO 80632
C.
COLORADO
September 11, 1991
Parker and Parsley Development Company
Post Office Box 3178
Midland, Texas 79702-3178
RE : Leases For Secondary Recovery For Southeast Quarter, Section
22 , T5N,R61W
Dear Sirs :
Enclosed please find the original oil and gas lease for the
secondary recovery for the Southeast Quarter of Section 22 ,
Township 5 North, Range 61 West of the 6th P.M. , Weld County,
Colorado . This lease was negotiated by Bob Jarrett of the Amicus
Energy Company. Also enclosed is the copy of the letter from
Amicus Energy Company by Bob Jarrett which explains the request.
The lease will be for a period of three years, commencing on the
day which the Board of County Commissioners considers it on the
Board' s agenda. Thus , the Board will fill in the blanks on the
last full paragraph on page 1 on that date.
Please note that the consideration for the lease is $1600 . 00 for
bonus consideration, with an annual rental of $160 . 00 .
Please sign the enclosed lease and send the same along with a check
in the sum of $1760 . 00 to the Board of County Commissioners at:
P.O. Box 758, Greeley, CO, 80632 . We will then see that the lease
is put on the Board ' s agenda.
If you have any questions regarding this lease, please feel free to
call me at ( 303) 356-4000, extension 4391 .
sincerely, ,--------
----Bruce T. Barker
Assistant Weld County Attorney
enc : lease
LSOOgl
C.._1 . .
) -.
r,_ r /
PARKER & PARSLEY `
September 20, 1991
Weld County, Colorado
c/o Board of County Commissioners
P. O. Box 758
Greeley, CO 80632
Re: 564. 009 - Riverside Prospect
Weld County, Colorado
Gentlemen:
Pursuant to the letter dated September 11, 1991, from the
office of the County Attorney for Weld County, Colorado, please
find enclosed herewith the original Weld County Oil and Gas Lease
covering the SE/4 of Section 22 , T-5-N, R-61-W, Weld County,
Colorado, which has been executed on behalf of Parker & Parsley
Development Company. Also enclosed is our check in the amount of
$1, 760. 00, representing the bonus consideration of $10. 00 per acre
and the advance rental of $160. 00.
The enclosed lease shall be for a term of three (3) years with
a 1/8th royalty. Please note that on page 1 of the Oil and Gas
Lease, last paragraph, the year 1991 has been inserted. This
should be corrected to reflect the day, month and year 1994.
Please complete the blanks on this lease and have same
executed on behalf of Weld County and return this original lease
to the undersigned for recordation. A recorded copy of the lease
will be furnished to the Beard of County Commissioners when
available.
Very truly yours,
IPAR `R '& PARSLEY DEVELOPMENT COMPANY
wa d P. Br dford
HPB:jc Land Manage
Enclosure Trades & Acquisitions
cc: Mr. Bruce T. Barker
Assistant Weld County Attorney
Office of County Attorney
P. O. Box 1948
Greeley, CO 80632
.91.11.4.-
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