HomeMy WebLinkAbout540003.tiff r .N-
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y - I 60LUTION TO SIGN OIL •
,-,AND GAS LEASE WITH THE
CALIFORNIA_ COMPANY: •
WHEREAS, Tim California Company has presented this Board with
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an Oil & Gas Lease severing a portiioon of Sec on 26, Township 8 North,
entai:.sue. C/ #r /... v:..� =
Range 66 Westland various lots in the Cave-Priddy Addition in the Town •
of' Pierce, Colorado, and '
WHEREAS, the Board believes it to be to the best interests of
.. Wd County Co3brado by aitiii*ig:of'e lfld lease;
NOW, THEREFORE, Bt IT- RESOLVEDthe Board of County Commissioners
s by
a. 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 $ 870.00.
The above and foregoing resolution was, on motion duly made and
seconded, unanimously adopted.
THE BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO.
DATED: FEBRUARY 19, 1954. •
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540003
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Tr'4JNShIF 8 NORTH, RANGE 66 ` ;1ST, 6th. P.Y. .
i;CTICN 26: Part of the Northwest qu-'rter described is follows; Begini.ng 367.1
feet North of the Northeast corner of the C.ve-Priddy Addition to
The Town of Pierce, thence North 117.7 feet, thence ,•lest 330 feet,
thence uth 117.7 feet, thence Last 330 feet to thepoint of be-
gining; ,Also begining 30 feet South of the Soutwest corner of the
'Cave-Pr ddy Addition to the Town of Pierce along the Union Pacific
Railroad right of ..*ay, thence Last 12$ feet, thence South 1![0 feet,
thence list 85 feet, thence Northwesterly i.5 feet to the point cf
begining Also begining 170 feet South and 370 feet debt of the
Southeast corner of the Cave-Priddy Addition to the Town of Pierce,
thence South 117 feet, thence .vest 160 feet, thj.nce Northwesterly
along the Union Pacific r'ght of �*ay '.25 feet, thence :oast 1.7n feet
, . to the Point of beginin ;Also,
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`Lots 1,2,3,4 13,h and 15 'of Block #1. and 'lots 5',6,7,8,9,IC,13,lh,
\• 15 16;1' and 20 of Block #2i in The Town of -Pierce;. Also,
Los 6,718,9110,11,12,13,11a7.0.9129. an 21 in Block #3,, -nd I,ots/
8- C�'1Y'1 '1 '2 ``2`s; 21T"32 '3` .18,3 'and140'in B1ock 2' and Lo s ,
, , , , , , 1 , �' � 1P;11r
21t if, P33 .nd 39 in o k . nd (Lots 41
12;1?i 151'6 ;1 19,2b,2 ?`,2'3 "and • n _Bl'ck and 'Lot; 111'Y
f # �a 2!r in Bkock # . and,i.o's 11 nd
�C V` oar!-4�q 1$,'16,1'`T,�,7�,15,2C � nd
• WI, °Al. -.ti .. ! Block #7, and t-9 in Block n the Cave-Priddy' Addition to The
Town of 1 .erce.
The above &::scribed lands cover 9.13 mates more or- less.
Commercial Paid-Up
OIL, GAS AND MINERAL LEASE
THIS AGREEMENT, made and entered into as of the__ -j, tha day of February ___..__, 19 at , by and between
BoarA of' County Coma sod Doers of Weld Colin*, ColaxZda.
G,.00 n11 Co]arddo.- —
hereinafter called "Lessor" (whether one or more) and THE CALIFORNIA COMPANY, a California Corporation, hereinafter
called "Lessee," WITNESSETH:
1. Lessor, for and in consideration of the sum 0f__._g a_'more DOLLARS ($_ivy.QQt' '_" ),
in hand paid, of the royalties herein provided and of the agreements of Lessee herein contained, hereby grants, demises, leases and lets exclusivelyunto 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 'yield
State of_— —_.Colorado , and is described as follows, to-wit;
(See attached exhibit "A")
including all minerals underlying lakes, streams, roads, easements and rights-of-way whichlss t or adjoin said land; and including all lands
owned or claimed by Lessor as a part of any tract above described; and containing 9.I3 acres of land, more or less, hereby releasing and
waiving all rights under and by virtue of the homestead exemption laws of this state. This ase shall cover all the interest in said land now
owned by or hereafter vested in Lessor, even thought greater than the undivided interest (if any) described above. For the purpose ofcalculating
any payments based on acreage, Lessee, at Lessee's option, may act as if said land and its constituent parcels contain the acreage above stated,
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
rimary 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
c gaged in drilling, mining or reworking operations on said land hereunder.
t �U 3. Royalties to be paid by Lessee are: (a) on oil, one-eighth (66) of that produced and saved from said land, to be delivered at the wells or
the credit of Lessor into the pipe line to which the wells may be connected; Lessee may from time to time purchase any royalty oil,paying there-
Ff r the market value in the field where produced on the day it is run to the pipe line or storage tanks; (b) on gas, including casinghead gas or
ro er 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 OA) of the amount realized from such sale; (c) on sulphur, one dollar ($1.00) per
long ton mined and marketed; (d) on all other minerals mined and marketed, one-eighth (44) of their value at the well or mine. If Lessee shall
discover ;as hereunder on said land or on land unitized with any of said land, Lessee may at any time or times during or after the primary term and
.at Lessees election, pay Lessor as royalty the sum of One Dollar per acre on the acreage then held by Lessee henmder; whereupon it shall be
considered for all purposes 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 operations hereunder, in order to maintain this lease in force. Any money payable ereunder may be paid in cash or by cheek, mailed
or delivered to Lessor or to Lessor's credit le 'Ionk .
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.
& Lessee shall pay for damages caused by Lessee's operations to growing crops, 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 or portion 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 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 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
owne-.
8. Whenever, as a result of any cause beyond Lessee's control (such as fire, 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 auonit or units not substantially exceeding the size required for the most efficient and economical location and
spacing
Stateci or of
Federal authorities,ieldles,pool. but net to exceed 45 acres if oil is produced or 660 acres if gas only is produced, or the size (if any) approved
byy 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 producing of
wells hereunder. Upon production from any Part of any such unit, Lessor shall be entitled to royalties calculated as follows: there shall be alto-
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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 leases 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, the method so prescribed shall prevail.
10. described in Pera-
graph I he�eaf. The royalties hereinabove provided are determined with respect to the entire mineral estate, and If Lessor owns a lesser interest,the
royalties to,be paid Lessor shall be reduced proportionately. Lessee at its option may purchase or discharge in whole or in part any tax, mortgage
or other lien upon said land, or may redeem the same from any'purchaser at any tax sale or ajudication, and may reimburse itself from any
royalties accruing hereunder 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 prolrisionS of this lease shall inure to the benefit of and be binding upon the heirs,
executors, administrators, successors and assigns of Lessor and Lessee.
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IN WITNESS WHEREOF, this instrument is executed as of the date first above written,
LESSOR SIGN HERE
Board , f! County. Commissioners of
Meld County, Colorado.
Attest .- .�»',� sx lam' '7/I �' _ �_//; • u
ITS COUNTY C .P.K r ,Bfl 017 COUNTY COMti3,`_�.
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DEPUTY COUNTY CLE?'.Kjl
ACKNOWLEDGMENTS
STATE OF COLO i-?_`;m
}Bs.
COUNTY OF i-:'ET.r1
The foregoing instrument was acknowledged before me this-_ 1 th day of FEBRUARY , 195
by Geo. L. Andersen, Adolph Winter, Carl J. Marc-
Witness my hand and official seal.
My commission expires
.ui U'iTY C('(lr.1TY CL"'i?K
STATE OF
..esrn,rn,r }SS.
Upon the termination of this lease in whole or in part by election or
by failure to make payments as aforesaid, lessee or his assigns shall
within 30 days release by written instrument the land or portion
thereof as which said lease terminates. It is expressly understood
that this lease is subject to and controlled by any law of the State
of Colorado now in effect restricting or limiting the powers of
Counties or Boards of County Commissioners and provision herein in
conflict therewith shall be inoperative and void.
This instrument was filed for record on the day of , 19 at o'clock,
M., and duly recorded in Book , Page of the records of this office.
County Clerk—Register of Deeds
Pit
Deputy
Return to_�
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Greelnv, Cola.
Pe trpary ,R1 1gK4
RICFIVWD from Tha emlifnrnln rnmpnn.y the
sum of Eight Hundred Seventy and No/100 dpllars
B caatiers check #3714% on Ths Gr eley Rat'l Bank, Greeley, Colo.
( e Wr+y+W6,I.Juu 9E 870_00 in full payment o t e u con-
sideration under that certain Oil and Gas Lease from the
undersigned, dated FYMn,nry 1R, 1954. , 19_, covering
9.13 acres, more or less, in T8N,B66W and Town of
Pierce, Colo.
urin County,
Colorado described in said lease.
Boa d of ,y Commissioners of
T1 P BY ..-"s1 „,ssi' ��/.7
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Atte sts rxr �.� " G ,- 7 C�
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Its. COUNTY CLERK /jLZ�i��i»�it,%4-ue-t,-
DEPU �,/ / //�
DEPUTY COUNTY CL5R ' \_ �7v 6 �6�J�1,l;t.^� E.'L1,
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Cashiers check # 37€51 on the Greeley National Bank was for $ 920.00
$ 50.00 refunded to Mr. Bruce in Cash
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