HomeMy WebLinkAbout540001.tiff .r
y ' ti:
+*jklatowia GAS LEASE WITH
tw '} I r atBNIi COMPANY:
C^ WARDS, The California Company has :presented this Board with
ar-04 cud Gas Lease cco entasg 2:4 acres, more or less, in Township 8N.,
Rapge.. a,,of the Sixth P.M., Lots 4, 5, 7, 8, 9, 10, 11, 12, 16, 17,
420,..22, 23, 24, 25, 26, 27 and 29 of Block 9, First Addition to the -
Tom of Pierce, Colorado, and
WHEREAS, the Board believes it to be to the best interests of
Weld County, Colorado, by signing said lease,
NOW, THEREFORE, BE IT RESOLVED, by the Board of County Commissioners
of Weld County, Colorado, that they accept said lease by signing said lease,
copy of lease hereto attached, with The California Company upon payment of
the lease fee of $200.00.
The above and tangoing resolution was, on motion duly made and
seconded, unanimously adopted.
I
7 / /: /// t
detkicin
SIIIIIII0Wilanti i II i i fss /r•i� - THE RD COUNTY COMMISSIONERS ...+�
- '`x: UN , COIARABO
DATED: , 1954.
sEPTEM�
LE51
L FDO 7 "
T "Sf OIL AND GAS LEASE
WITH THE CALIFORNIA COMPANY
2.4, more or lease, in TSN,
R66W, hots 4,5,7.8;9,10,11,)2,
16,17,20,22,23,24,25,26,27 and
29 Block 9, First Addition to
Town of Pierce, Colorado,
5 Years
';ember 22, 1954
to
September 22, 1959.
r %Jo No._ ..3?},� ,
{
, -
•
-Sign tr r: , )=V Ccnrntvsta.iTs.
r
Commercial Paid-Up
OIL, GAS AND MINERAL LEASE t .31 -1
THIS AGREEMENT, made and entered into as of the 22nd clay of Senalather , 19 511 , by and between
Board of County Commissioners of Veld County, Colorado
Greeley, Colorado
hereinafter called "Lessor" (whether one or more) and THE CALIFORNIA COMPANY, a California Corporation, hereinafter
called "Lessee," WITNESSETH:
1. Lessor, for and in consideration of the sum of Ten & sore— _ DOLLARS ($3Al0a-
in hand paid, of the royalties herein provided and of the agreements of Lessee herein contained, hereby grants, demises, leases and lets exclusively
unto Lessee the land hereinafter described, for the purpose of investigating, exploring, drilling and mining for, producing, saving, taking, owning,
transporting, storing, handling and treating oil, gas and all other minerals, whether similar or dissimilar, together with all rights, privileges and
easements useful for Lessee's operations hereunder on said land and on lands in the same field, including but not limited to the following rights:
to lay pipe lines; to build roads; and to construct tanks, pump and power stations, power and communication lines, houses for its employees, and
other structures and facilities. The said land included in this lease is situated in the County of Weld
State oc Colorado — —., _-, and is described as follows, to-wit:
TOWNSHIP 8 NORTH, RANGE 66 WEST, 6th P.M.
Lots 4% 5, 7, 8, 9, 191 L, i2, 16, 17, 29, 22,
' 23; 24i, 2$, 26, zT and 29 of Block 9,
First Additinn to the Town of Pierce.
2/16/55
Also Lots 21 and 28 of Block 9, First Addition
to the .own of Pierce, Colorado
streets and alls,
including all minerals underlying lakes, streams,roads/easements and rights-or-way-wb Qh traverse or adjoin said land; and including all lands
owned or claimed by Lessor as a part of any tract above described; and containing. 2.4 s^res of land, more or less, hereby releasing and
waiving all rights under and by virtue of the homestead exemption laws of this state. This lease shall cover all the interest in said land now
anyeppdaaymenhereafter ased on acreage,in ILessee0atnLeasesatogreater
one may act as undivided
isaid land and its. constituentif bed parcelsve, For the contain the acreose of eage above stateg
d,
whether they actually contain more or less.
2. Subject to the other provisions herein contained, this lease shall remain in force for a period of five (5) years from the date hereof, called
_�•' "primary term", and thereafter so long as oil, gas or other mineral or any one or more of them, is produced from said land hereunder, or Lessee
Xo` is engaged in drilling, mining or reworking operations on said land hereunder.
3. Royalties ofLessorto beinto paid the by p Lessee are:line to w (a) on oil, one-eighth (bfi) of that ssee e may and r time
from said e rc land, to y royalty o at the wells e-
for theemarket value in the eld iwhere produced theon wells the day it is run to the be pipepipe line or storag ntanks;i time
on gese as, including ccasingheadggas there-
for other gaseous substance, produced from said land and sold or used the market value at the well of one-eighth (1) of the gas so sold or used, pro-
vided that on gas sold at the well the royalty shall be one-eighth (1) of the amount realized from such sale; (c) on sulphur, one dollar ($1.OO) per
long ton mined and marketed; (d) on all other minerals mined and marketed, one-eighth (b4) of their value at the well or mine. If Lessee shall
ataLessee's lectver gas ioun,pay Lessor land
royaltyland
the sum of OneDollh ar per said
acre land, tLessee
e eacreage the at n held by times
Lese e herund or er; whereter the upon it term
all be
considered for alrpurposes of this lease that gas is being produced hereunder from said land for a period of one year;such year to commence on the
anniversary of this lease next preceeding such payment Any such payment may be made in the same manner as provided elsewhere in this lease
for the payment of money hereunder; but shall not be in lieu of any royalty based on actual production. Lessee may use, free of royalty, oil, gas,
coal and water developed from said land by Lessee, for all operations hereunder.
4. This is a PAID-UP LEASE. and Lessee shall not be obligated during the primary term, to make any further payments, or to commence or
continue any operational hereunder, in order to maintain this lease in force. Any money payable hereunder may be paid in cash or by check, mailed
or delivered to Lessor or to Lessor's credit ^ err^^rt ..
which Bank, by a power irrevocable, Is hereby made Lessor's Agent to receive and disburse such payments, and which
shall continue as depository regardless of changes in ownership of Lessor's interest hereunder. Lessee may at any time or times surrender this
lease as to all or any portion of said land by mailing or tendering to Lessor or to the depository bank or by filing for record a release or releases,
and be relieved of all obligation thereafter accruing as to the acreage surrendered.
5. If at any time or times after the primary term or within three (3) months before expiration of the primary term, all operations and all
production hereunder shall cease for any cause. this lease shall not terminate if Lessee shall commence or resume drilling, mining or reworking
operations or the production of any mineral or the payment provided in paragraph 3 or paragraph 8 hereof within three (3) months after such
cessation.
a Lessee shall pay for damages caused by Lessee's operations to growing craps, buildings, irrigation ditches, feed lots and fences. When
required by the surface owner, Lessee will bury pipe lines below ordinary plow depth when crossing cultivated land. No well shall be drilled within
two hundred (200) feet of any residence or barn now on said land without the consent of the surface owner. Lessee shall have the right at any time
to remove all Lessee's property and fixtures, including the right to draw and remove all casing. Lessee shall drill any well which a reasonably
prudent operator would drill under the same or similar circumstances to prevent substantial drainage from said land by wells located on adjoining
land not owned by Lessor,when such drainage is not compensated by counter drainage. No default of Lessee hereunder with respect to any well,
mine or portion of said land shall impair Lessee's rights with respect to any other well, mine orportion of said land. Lessee may inject water, gas
or other substances into any zone or stratum underlying said land and not productive of fresh water.
•
7. The rights of Lessor and Lessee hereunder may be assigned in whole or in part. No change in ownership of Lessor's interest(by assign-
ment or otherwise) shall notice, recordedbe binding on Lessee until Lessee has been furnished with consisting of certified copies of all instruments
in
formation documents and other necessary to establish a complete chain of record title from Lessor,and then only with respect to payments there-
after made. No other kind of notice, whether actual or constructive, shall be binding on Lessee, and Lessee may continue to make payments pre-
cisely as if no change had occurred. No present or future division of Lessor's ownership as to different portions of parcels of said land shall operate
to enlarge the obligations or diminish the rights of Lessee, and Lessee's operations may be conducted without regard to any such division. If all or
any part of the Lessee's interest hereunder shall be assigned, no leasehold owner shall be liable for any act or omission of any other leasehold
owner.
8. Whenever, as a result of any cause beyond Lessee's control (such as tire, flood. windstorm or other Act of God• law, order or regulation
of any governmental agency; or inability to secure men,material or transportation) Lessee is prevented from complying with any obligation of this
lease, Lessee shall not be liable for damages or forfeiture of this lease and Lessee's obligations shall be suspended so long as such cause persists.
If by any such cause, all operations and all production hereunder are prevented after the expiration of the primary term, Lessee may at any time or
times and at Lessee's election pay Lessor as royalty (in addition to any royalties based on actual production) twenty-five cents per acre on the
acreage then held by Lessee hereunder,whereupon it shall be considered for all purposes of this lease that oil gas or other mineral is being pro-
duced hereunder, for a period of three months from the date such payment is made. Any such payment may be made in the same manner as pro-
vided elsewhere in this lease for money payable hereunder.
9. Lessee may at any time or times, pool and consolidate this lease, in whole or in part, Or as to any Stratum or strata, with adjacent lands
and leases, so as to constitute a unit or units not substantially exceeding the size required for the moat efficient and economical location and
spacing of wells in the field or pool, but not to exceed 45 acres if oil is produced or 880 acres if gas only is produced, or the size (if any) approved
by State or Federal authorities, by delivering to Lessor or to the depository bank or by filing for record an instrument so declaring. Drilling,
mining, or reworking operations upon, or production of any mineral from any part of any such unit shall be treated, for all purposes hereunder
as such operations upon or such production from this lease,and shall satisfy any obligation expressed or implied for the drilling or precluding of
wells hereunder. Upon production from any part of any such unit, Lessor shall be entitled to royalties calculated as follows: there shall be allo-
cated to the portion of this lease included in such unit a fractional part of such production, in the ratio that the number of'acres of this lease
included in such unit bears to the total number of acres of all lands and lemma included in such unit; and Lessor shall be entitled to the royalties
in this lease provided on such fractional part of such production, and no more. Provided, that if State or Federal authorities shall prescribe a
different method of allocation, themethod so prescribed shall prevail.'.
10. 1 , ul l 1.y l l YY II Y 1 P l i y i a I, IIII I i I lY n s ll l A" I YY risk!I!� I Y 'Will I P u N i 11 III I . II Y 1 Il
-' "1hd royao.:les shall
belr duce rpvoic ec are tely.Th4 f 1 .Li 1 respect Abe epuarhase.nel'Bd discharge, .ueesor owns a,weer I,mor';ae`
s e paid Lessor shall be reduced proportionately. Lessee at its option may purchase or in whole or in part any tax, mortgage
or other lien upon mid land, or may redeem the same from any purchaser at any tax_ sale or ajudication, and may reimburse itself from any
royalties accruing henituider and shall be subrogated to.such lien with the right to enforce same.
11. This'lease shall be binding upon all'who execute it, whether or not they are named in the granting clause hereof and whether or not all
parties named in the granting clause execute this lease. All the provisions of this lease shall inure to the benefit of and be binding upon the heirs,
executors, administrators; successors and assigns of Lessor and Lessee,12. Upon the termination, of this lease in 'whole or in part by sleatiaa or by failure
to make payments as aforesaid, Vass or his assigns shall within 30 days release by written
instrument the land or portion thereof as which said lease terminates. It is exprsss1'
understood that this lease is subject to and controlled by any her of the State of Colorado
nzMwtlefee h t 81 faellinal WNW Couaty Castissionsra
WITNESS WHEREOF, this instrument is executed as of the date first above written.
LESSOR SIGN HERE
Board of County Commissioners of !Old County,
Colorado.
By ././1 , /„A t %'l/ii e// L f
s
Attests :Q' t \
Deputy toundy ,lark v_
ACKNOWLEDGMENTS
STATE OF Coldrado
COUrrrY of Wades'
The foregoing instrument was acknowledged before me this_ 22nd day of September . 1954
Geo. L. Andersen, Adolph Winter, Carl J. Magnuson
by
Witness my hand and official seal.
My commission expires
tiorr+mIssion expes February 5, 1956
�- No Public.
STATE OF
es.
COUNTY OF
The foregoing instrument was acknowledged before me this day of _ 195
by
Witness my hand and official seal.
My commission expires
Notary Public.
NO.
STATE OF'
1.as.
COUNTY OF
This instrument was filed for record on the day of , 19 at o'clock,
M., and duly recorded in Bonk , Page _,of the records of this office.
County Clerk—Register of Deeds
By
Deputy
Return tn _. . ._.
Hello