HomeMy WebLinkAbout550003.tiff ' ''kl ' '
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OIL AND GAS .LEASE WITH '
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WHEREAS, The California Company .has presentee ',this'Board with an:
Oil and*.Gas tease covering a:piece or parcel of Land 69: feet in width, -th e center`
k_3.. line of Which tract*is described•;as follows: towit:
Beginning at .a point 294,7 feet North.of: the Southwest corner of
Section 26, township_ 8 North, Ranger 66 west of the 6th P.M., beifig.
on 'theest line of , o.Section,. thence on a 20° curve: to t
456 6. feet to a poiri > an"the South*line of said Sect on.,:2 � n( •7
feet East of the Southwest corner 'of sand Section 26. ', AI!d, Ails thy.
stri •
p or parcel of ground, 80 feet:wide, within the boundaries of the
94-.•of:Settion 26, Township 8 0Q*t of .Range b4, West of the 6t'h P.M.,
,. , p . nty, Colorado, ly1ng 40 ._,Get, eech': side``,of a nt t�, ine
f ies, ibed as follows: Beginning *t; a point {on the Sout d
Said Section 26, whence the Southwest corner .0f,- ss .d Section 26, ears
I-P" � ' ' Sout}1 89001# I st,.'.767.1' feet, afid�}ranningtthenc6 A*0—th 59P54 West, ..6
• ':•S:. feet*; ence :cti"a 4 degree curve right 15064-.':40.0t:to a .point on West
boundary of said Section: 26, Township 8 ,North'of Range 66 West of.the ,
6t "M, "'. , w%e the S hwest corner of said' Section 26, }aeaps South
-: .. :. ;a�,"2).* V 1 5 feet containing 2.84.acres, more:-or est.
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- WHEREAS, the Board believe it tq, be to the best .interest of Weld ue:ty,
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Colorado, by ':signing said lease.
. NOW,, T, RE: BE IT RESOLVED, by the B,:oard of County Commi:s400:0rs
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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 $ 35.00.
The above and foregoing 'resolution was, on motion duly mace > + ,seconded,
unanimously adopted. .
AYES
. • • _ .COUNa}.,f: COLOR .,'s .
DATED :JANUARY", 31, •1955 s 1
L ,
17G 32.-
TO SIGN OIL AND GAS L.''4.EE
ATM THE CALIFORNIA COMPANY:
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R/W
(In Part.- Section 26, T 8 N,
R 66 of 6th P.V..)
$35.
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OIL AND GAS LEASE
THIS AGREEMENT, dated the ,-7/ day of :u :�,-�° A.D. , 19555,
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by and between THE COUNTY OF WELD, STATE OF COLORADO, acting by and through
its Board of County Commissioners, 'irst Party (hereinafter sometimes called
"Lessor"), and THE CALIFORNIA COMPANY, a California corporation, Second Party
(hereinafter sometimes called"Lessee"):
WITNESSETH
,Tj.
1. Lessor, for and in consideration of ; ; ss1- cash in hand
paid, receipt of which is hereby acknowledged, of the royalties herein
provided and of the agreements of the Lessee herein contained, hereby, sub-
ject to all of the provisions, conditions and limitations hereinafter set
forth, grants, demises, leases and lets exclusively unto Lessee the land here-
inafter described for the purpose of investigating, exploring, and drilling
for, producing, saving, taking, owning, tranaporting, storing, handling and
treating oil and gas together with all rights, privileges and easements use-
ful or convenient for Lessee's operations hereunder on said land and on other
lands in the same field, including but not limited to pipe lines, tanks, power
stations and other structures and facilities. The land included in this lease
is situated in the County of Weld, State of Colorado, and is described as
follows, to-wit:
A piece or parcel of land 60 feet in width, the center
line of which tract is described as follows, to-wit:
Beginning at a point 2914.7 feet North of the Southwest
corner of Section 26, Township 8 North, Range 66 West of
the 6th P.M., being on the west line of said section,
thence on a 20 curve to the left 1456.6 feet to a point
on the south line of said Section 26, and 291 .7 feet
East of the Southwest corner of said Section 26. Also,
All that strip or parcel of ground, 80 feet wide, within
the boundaries of the SWi of Section 26, Township 8
North, of Range 66, West of the 6th P.M., in Weld County,
Colorado, lying !t0 feet, each side of a center line des—
cribed as follows: Beginning at a point on the South
boundary of Said Section 26, whence the Southwest corner
of said Section 26, bears South 89°01' West, 767.1 feet,
and running thence North 59°511' West, 50.6 feet; thence
on a 4 degree curve right 1$06.3 feet to a point on West
boundary of said Section 26, Township 8 North of Range
66 West of the 6th P.M., whence the Southwest corner of
said Section 26, bears South 00° and 21' nest 1287.5 feet,
containing 2.84 acres 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 and
so long thereafter as oil or gas is produced from said land or Lessor may
share in royalties payable on account of production of oil or gas from lands
adjacent to said tract under terms of Paragraph 5 hereof.
3. This is a paid-up lease. In consideration of the cash down
payment receipted for in paragraph numbered 1 hereof Lessor agrees that Lessee
shall not be obligated at any time while this lease is in force, whether dur-
ing the primary term or thereafter, nor for any reason, to drill or conduct
drilling, development or production operations on the lands covered hereby.
It is further agreed that Lessee shall not have the right, without the written
consent of the Lessor first had and obtained, to drill on said above described
land or to conduct actual drilling, development or producing operations there-
on or to place any structures thereon, above the surface of the ground provided,
however, that Lessee shall have the right without obtaining such consent to
lay, repair, replace, operate and remove pipe lines for the transportation of
oil, gas, water and other substances, and to install, maintain and operate
pager lines in, under, over, and across said land provided that same can be
and is done in such manner as not to interfere with the proper use of said land
by Lessor for County purposes including the removal or road building material.
I . In the event oil or gas be actually produced from the lands
covered by this lease and saved or marketed, then royalty on such production
shall be paid as follows, subject to the other provisions of this agreement:
On oil, 1/8 of that produced and saved or marketed and
not used for operating purposes from the leased land,
to be delivered at the wells or to the credit of the
Lessor into the pipe line to which the wells may be
connected, or, at Lessee's election, the market value
thereof prevailing the day the oil is run into the pipe
line or in storage tanks.
On gas, including casinghead gas or other gaseous sub-
stance, produced from said land and sold or used, the
market value at the well of 1/8 of the gas so sold or
used, provided that on gas sold at the well the royalty
shall be 1/8 of the amount realized from such sales.
5. In the event oil or gas shall not be produced from the tract of
land covered by this lease, but shall be produced from any other part of the
SW* of Section 26, Township 8 North, Range 66 West, 6th P.A . Weld County,
Colorado, by the Lessee, and in the absence o" any cooperative or unit plan
of development or operations providing for the pooling or consolidation of
acreage entered into by Lessor as to said lands and providing for some dif-
ferent method of royalty payrrent, then Lessee shall, subject to the other
provisions of this agreement, pay Lessor as a royalty:
On oil, 2.84/160 of 1/8 of that produced and saved
or marketed and not used for operating purposes
from the SWi of said Section 26, to be delivered
at the wells or to the credit of the Lessor into
the pipe line to which the wells may be connected,
or at Lessee's election, the market value thereof
prevailing the day the oil is run into the pipe
line or in storage tanks.
On gas, including casinghead gas or other gaseous sub-
stance, produced from the SW4 of said Section 26, and
sold or used, the market value at the well of 2.81/160
of 1/8 of the gas so sold or used, provided that on gas
sold at the well the royalty shall be 2.84/160 of 1/8 of
the amount realized from such sales.
6. No royalty shall be payable hereunder on any oil or gas produced
from the lands covered hereby, or from any part of the SWi of said Section 26,
which is used by Lessee in its operations on any part of the SW` of said
Section 26.
7. If the Lessor ohms less interest in the land covered hereby and
in the oil, gas and other mineral rights therein than the entire and undivided
fee simple estate therein, then the royalties hereinabove provided for shall
be paid the Lessor only in the proportion which the Lessor's interest bears
to the whole and undivided fee.
In the event any third person shall dispute the title of. the Lessor
herein and to the oil, gas and other mineral rights in said tract, or question
the right of the Lessor to execute this lease, then and in either of such
events Lessee shall have the right to withhold all royalty payments payable
upon production as herein provided without interest obligation, until such
dispute or question and the ownership of the oil and gas rights in and under
said land and said royalty shall be finally determined, and payment of said
royalty on such production shall thereupon be made to the person or persons
so determined to be entitled thereto.
8. All payments or tenders of royalty hereunder, when payable in
money, may be made by check or draft of Lessee or any assignee thereof to
the County of Veld, State of Colorado, mailed or delivered to said County of
Weld at such address as the said County of Weld shall from time to time notify
Lessee in writing. Said royalties shall be payable on or before the 20th day
of each calendar month on the previous month's production.
9. The lands covered hereby may be unitized, pooled or combined
as to all or any part thereof with other lands in the same general area by
Lessor's entering into a co-operative or unit plan of development or operation
providing for the pooling or consolidation of acreage. In the event that
the lands covered hereby, 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 cover-
ed 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 and the royalty pay-
ments to be made hereunder to Lessor shall be based upon production only as
so allocated. Lessor may by such agreement with the consent of Lessee change
any or all of the trovisions of this lease including the term hereof in order
to conform this lease to the terms and provisions of such agreement and to
facilitate the efficient and economic production of oil and gas under such
agreement.
10. This lease is executed without warranty expressed or implied,
however, it is the intention of the parties hereto that this lease shall cover
not only the interest which Lessor now owns in said land, but any interest
which it may hereafter acquire therein. Lessor agrees that the Lessee, at
its option, may pay and dishcarge any taxes, mortgage or other liens existing,
levied or assessed on or against the land covered hereby, and, in the event
it exercises such option, it shall be subrogated to the rights of any holder
or holders thereof and may reimburse itself by applying to the discharge of
any such mortgage, tax or other lien any royalties accruing hereunder.
11. Th;s lease contains the entire agreement between the Lessor and
the Lessee, and no Implied covenants shall he read into this lease.
12. Lessee nay at any time surrender this lease by delivering to
the Lessor, or by filing for record a release hereof, erd there upon Tessee.
shall be released and relieved of all obligation thereafter accruing hereunder.
13. 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
cr otherwise) shall he binding on Lessee until Lessee has been furnished with
notice, consisting of certified copies of all recorded instruments ar docu—
ments and other information necessary to establish a complete chain of record
title from Lessor, and then only with respect to payments thereafter made.
No other kind of notice, whether actual or constructive, shall be binding on
Lessee, and Lessee may continue to make payments precisely as if no change had
occurred. No present or future division of Lessor's ownership as to different
portions or parcels of said land shall operate to enlarge the obligations or
diminish the rights of Lessee, and Lessee's operations may be conducted with
out 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 owners.
lli. This lease and all its provisions shall be binding upon and
inure to the benefit of the parties hereto and their respective successors
and assigns.
FXFfTJTEP IN TRIPLICATE as of the day and year first hereinabove
written.
ATTEST: BOARD OF COUNTY COIaMISSIONFRS OF
��' ELD CO , COLORADO
ITS CLERK r
By,' � ,� .rL
iDe � co ty c /G ,
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FIRST PARTY AND LESSOR
THE CALIFORNIA COMPANY
By
Its
BY
Its
SECOND PARTY AND LESSEE
STATE OF COLORADO)
SS.
COUNTY OF WELD )
The foregoing instrument was acknowledged before me this day
of , 1955, by , Chairman, and
, Clerk of the Board of County Commissioners of
Weld County, Colorado.
WITNESS MY hand and official seal,
My commission expires
Notary Public
STATE 0: LOUISIANA)
SS.
PARISH OF ORLEANS )
On this day of , 1955, before me appeared
and , to me n,Trsonally known, who being
by me duly sworn did say that they are the and
respectively of THE CALIF'OI3NIA COMPANY, a California
corporation, and that the seal affixed to said instrument is the corporate
seal of said corporation and that said instrument Was signed and sealed in
behalf of said corporation by authority of its Board of Directors, and said
appearers acknowledged said instrument to be the free act and deed of said
corporation.
IN WITNESS WHEREOF I have hereunto set my official hand and seal
on the date hereinabove written,
Notary Public in and for Orleans
Parish, Louisiana
ry coirdnission expires at deaths
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